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HomeMy WebLinkAbout06.25.2025@630 Regular CCWednesday, June 25, 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 June 25, 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 all-cc@ssf.net. 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 all-cc@ssf.net, 72-hours before the meeting. Page 2 City of South San Francisco Printed on 6/18/2025 2 June 25, 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 COUNCIL COMMENTS/REQUESTS PUBLIC COMMENTS Page 3 City of South San Francisco Printed on 6/18/2025 3 June 25, 2025City Council Regular Meeting Agenda 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 for the meeting of June 11, 2025. (Rosa Govea Acosta, City Clerk) 1. Motion to accept the Training Tower Maintenance Project (pf1704) improvements as complete in accordance with project documents. (Lawrence Henriquez, Senior Civil Engineer) 2. Report regarding the transfer of $13,787,957 from the Sewer Capacity Charge Fund (730) to the Sewer Enterprise Fund (710) in accordance with the 2017 Development Mitigation Fee Study and approving Budget Amendment Number 25.057 (Amanda Parker-Govea, Management Analyst I) 3. Resolution authorizing the transfer of $13,787,957 from the Sewer Capacity Charge Fund (730) to the Sewer Fund (710) and approving Budget Amendment Number 25.057 3a. Report regarding a resolution approving a consulting services agreement with Daryl D. Jones, Inc., for Telecommunications Engineering and Police Information Technology Administration Services for a three-year term in an amount not to exceed $650,000 and authorizing the City Manager to execute the consulting services agreement. (Ken Chetcuti, Police Captain) 4. Resolution approving a consulting services agreement with Daryl D. Jones, Inc. for Telecommunications Engineering and Police Information Technology Administration Services for a three-year term in an amount not to exceed $650,000 and authorizing the City Manager to execute the consulting services agreement. 4a. Page 4 City of South San Francisco Printed on 6/18/2025 4 June 25, 2025City Council Regular Meeting Agenda Report regarding a resolution approving a Sixth Amendment with JobTrain, Inc. for workforce development support services in an amount not to exceed $75,835 and a Sixth Amendment with Renaissance Entrepreneurship Center for entrepreneurship development services in an amount not to exceed $184,165. (Michael Guss, Economic Development Specialist) 5. Resolution Approving a Sixth Amendment with JobTrain, Inc. for workforce development support services and a Resolution Approving a Sixth Amendment with Renaissance Entrepreneurship Center for entrepreneurship development services 5a. Report regarding a request from Rotary Plaza, Inc. for funding to support a proposed affordable housing development, Rotary Gardens, located at 500 and 522 Linden, and adoption of a resolution committing $2,366,828 to the project. (Mike Noce, Housing Manager) 6. Resolution committing $2,366,828 in Commercial Linkage Fee Fund (Fund 823) to the Rotary Gardens affordable housing development project at 500 and 522 Linden Avenue and authorizing staff to negotiate a loan effectuating the commitment. (Mike Noce, Housing Manager) 6a. Report regarding a resolution approving Amendment No. 2 to the Professional Services Agreement with Redwood Public Law, LLP (Sharon Ranals, City Manager) 7. Resolution approving Amendment No. 2 to the Professional Services Agreement between the City of South San Francisco and Redwood Public Law, LLP 7a. PUBLIC HEARING Report regarding consideration of Genentech’s acquisition of certain public rights-of-way within the Genentech Campus, proposed rezoning of private properties to be added to the Genentech Master Plan District, associated amendments to the General Plan, Genentech Campus Master Plan, and Zoning Map and finding that the 2025 Addendum is the appropriate environmental document for the Project, per CEQA Guidelines Section 15162 (Billy Gross, Principal Planner). 8. Page 5 City of South San Francisco Printed on 6/18/2025 5 June 25, 2025City Council Regular Meeting Agenda Resolution making findings and determining that City’s conveyance of certain public rights-of-way (DNA Way, Point San Bruno Boulevard, and Cabot Road) within the Genentech Campus Master Plan boundaries, proposed rezoning of private properties to be added to the Genentech Master Plan District, and its associated amendments to the General Plan, Genentech Master Plan, and Zoning Map are fully within the scope of environmental analysis in the certified Genentech 2020 Master Plan Environmental Impact Report and the certified SSF 2040 General Plan Environmental Impact Report and that the 2025 Addendum to the prior EIRs is the appropriate environmental document for the Project. 8a. Resolution of the City Council of the City of South San Francisco vacating certain public rights-of-way commonly known as DNA Way, Cabot Road, and Point San Bruno Boulevard located entirely within the Genentech Campus 8b. Resolution approving a Purchase and Sale Agreement with Genentech, Inc. for the disposition of the vacated public streets Cabot Road, Point San Bruno Boulevard, and DNA Way located entirely within the Genentech Campus for the sum of $25,000,000 and authorizing the City Manager to execute the Purchase and Sale Agreement. 8c. Ordinance amending the South San Francisco Zoning Map to include additional properties within the Genentech Master Plan District. 8d. Resolution making findings and approving amendments to the Genentech 2020 Master Plan and associated General Plan Amendments. 8e. ADMINISTRATIVE BUSINESS Report regarding a resolution approving the South San Francisco Conference Center Authority Fiscal Year 2025 - 26 Budget. (Jim McGuire, South San Francisco Conference Center Authority Executive Director) 9. Resolution approving the South San Francisco Conference Center Authority Fiscal Year 2025-2026 Budget. 9a. Report regarding resolution authorizing fiscal year 2025-2026 Interim Funding for The South San Francisco Conference Center. (Jim McGuire, South San Francisco Conference Center Executive Director) 10. Resolution approving interim funding for Fiscal Year 2025-26 for the South San Francisco Conference Center. 10a. Page 6 City of South San Francisco Printed on 6/18/2025 6 June 25, 2025City Council Regular Meeting Agenda Report regarding the City of South San Francisco Operating Budget for Fiscal Year 2025-26 and approving the Gann Appropriation Limit. (Karen Chang, Director of Finance and Greg Henry, Financial Services Manager) 11. Resolution adopting the Fiscal Year 2025-26 Operating Budget and approving the Gann Appropriations Limit. 11a. Report regarding a resolution approving interim spending authority for the first 90 days of Fiscal Year 2025-26 (Karen Chang, Director of Finance) 12. Resolution approving interim spending authority for the first 90 days of Fiscal Year 2025-26. 12a. Report regarding a resolution approving the proposed Capital Improvement Program for fiscal year 2025-26. (Eunejune Kim, Director of Public Works/City Engineer and Matthew Ruble, Principal Engineer) 13. Resolution approving the Capital Improvement Program for Fiscal Year 2025-26, approving the appropriations request of $24.03 million, authorizing City staff to prepare plans and specifications and advertise for construction bids for the projects under this program, and approving Budget Amendment Number 25.060 authorizing the amendment to the Fiscal Year 2024-25 budget to reallocate $12.68 million from prior-year funding. 13a. Report regarding a resolution waiving all fees associated with City permits for the Oyster Point Marina - West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541) project to be funded and performed by the San Mateo County Harbor District. (Sharon Ranals, City Manager) 14. Resolution waiving all fees associated with City permits for the Oyster Point Marina - West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541) project to be funded and performed by the San Mateo County Harbor District. 14a. ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS CLOSED SESSION Page 7 City of South San Francisco Printed on 6/18/2025 7 June 25, 2025City Council Regular Meeting Agenda Conference with Labor Negotiators (Pursuant to Government Code Section 54957.6) Agency designated representatives: Sharon Ranals, City Manager, Rich Lee, Assistant City Manager, Leah Lockhart, Human Resources Director, Jesse Lad, Redwood Public Law, Christopher Boucher, Boucher Law Employee organizations: AFSCME Local 829, IAFF Local 1507, SSF Police Association, Teamsters Local 856-Confidential, Teamsters Local 856-Mid-Management, Unrepresented Groups: Executive Management, Public Safety Managers 15. ADJOURNMENT Page 8 City of South San Francisco Printed on 6/18/2025 8 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-685 Agenda Date:6/25/2025 Version:1 Item #:1. Motion to approve the Minutes for the meeting of June 11, 2025. (Rosa Govea Acosta, City Clerk) City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™9 CALL TO ORDER Mayor Flores called the meeting to order at 6:30 p.m. ROLL CALL Councilmember Coleman, present Councilmember Nicolas, present Councilmember Nagales, present Vice Mayor Addiego, present Mayor Flores, present PLEDGE OF ALLEGIANCE Former Cultural Arts Commissioner Michael DeNatale led the Pledge of Allegiance. AGENDA REVIEW City Manager Ranals shared the Joint Special Meeting of the City Council and Successor Agency has been cancelled. 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 DEI Officer Stenhouse informed the community of the following events and dates: • South San Francsico contingent in the San Mateo County Pride Parade on Saturday, June 14, 2025, at 10:00 a.m. starting at 2nd & B Street in San Mateo, CA • Observance of Juneteenth as Freedom Day, June 19, 2025, City offices will be closed. • South City Proud on Saturday, June 28, 2025, 10:00-2:00 p.m. at the Grand Ave. Breezeway located at 366 Grand Ave. South San Francisco, CA MINUTES REGULAR MEETING CITY COUNCIL CITY OF SOUTH SAN FRANCISCO WEDNESDAY, JUNE 11, 2025 6:30 p.m. Library Parks and Recreation Building Council Chambers 901 Civic Campus Way, South San Francisco, CA 10 REGULAR CITY COUNCIL MEETING JUNE 11, 2025 MINUTES PAGE 2 PRESENTATIONS 1. Proclamation recognizing Juneteenth as Freedom Day. (Eddie Flores, Mayor) Mayor Flores recognized Juneteenth as Freedom Day, read the proclamation into the record, and presented it to Equity and Public Safety Commissioner Carol Sanders. Commissioner Sanders accepted the proclamation and expressed her gratitude for the recognition of history and call to action. 2. Proclamation celebrating June as LGBTQIA+ month. (Eddie Flores, Mayor) Councilmember Coleman recognized June as LGBTQIA+ month and presented the proclamation to former Cultural Arts Commissioner Michael DeNatale. Michael DeNatale accepted the proclamation and highlighted the City of South San Francisco’s commitment to diversity. COUNCIL COMMENTS/REQUESTS Councilmember Nagales thanked the community for coming together for the Pride Flag Raising Event. He apprised the community of the events he attended to include the groundbreaking for the Westborough Middle School field and Town Hall for Supervisor Jackie Spiers, as well as provided an update on appropriations requests submitted on behalf of the City of South San Francisco. Councilmember Nicolas apprised the Council and community of events attended to include the Senior Pancake Breakfast sponsored by the South San Francisco Police Association, South San Francisco Fire Department Badge Ceremony, Pride Flag Raising, and San Mateo County Leadership Council Graduation. Additionally, she congratulated the St. Augustine Children’s Choir on their Sound of Music Concert, and thanked Dr. Aruna Chinnakotla, Assistant Physician in Chief of Kaiser Permanente, and City staff for a successful District 3 Community Outreach Event. She requested the meeting be adjourned in memory of Manuel Valle. Councilmember Coleman apprised the community of the events he attended to include the groundbreaking for the new Central Kitchen at El Camino High School and the ribbon cutting for Park Padel. He also discussed the events occurring in Southern California surrounding ICE arrests and raids. He encouraged staff to explore ways to keep the community safe and requested that additional Know Your Rights trainings be provided. Vice Mayor Addiego reported updates on behalf of the Colma Creek Advisory Committee and Bay Conservation and Development Commission. Mayor Flores reaffirmed the values of the City of South San Francisco and discussed the California Values Act, Senate Bill 54. He expressed his gratitude to the Police Department and City staff for their professionalism and integrity. He also reassured the community that their rights are respected and valued. Additionally, he expressed his commitment to representing the City of South San Francisco and taking the necessary steps to ensure the City remains informed and safe. 11 REGULAR CITY COUNCIL MEETING JUNE 11, 2025 MINUTES PAGE 3 PUBLIC COMMENTS - NON-AGENDA AND CONSENT CALENDAR ITEMS The following individuals addressed the City Council: • Cory David • Zach Kust • Felipe Donaire • Caleb Moran • Lorraine Yin • Brian Noce • Tristan Kent • Cynthia Marcopulos • Kathryn Alexander • Anthony Walters, AFSCME Local 829 CONSENT CALENDAR Management Analyst Amanada Parker duly read the Consent Calendar, after which the Council voted and engaged in discussion of specific items as follows. Item No. 8 was pulled by Vice Mayor Addiego for further discussion. 3. Motion to approve the Minutes for the meetings of May 27, 2025, and May 28, 2025. (Rosa Govea Acosta, City Clerk) 4. Report regarding Resolution No. 71-2025 adopting a proposed list of projects for fiscal year 2025-26 funded by SB1: The Road Repair and Accountability Act of 2017. (Lawrence Henriquez, Senior Civil Engineer) 5. Report regarding Resolution No. 72-2025 to approve on-call consulting service agreements with twenty (20) selected consultants for on-call architectural, engineering, and other professional services in an amount not to exceed $3,000,000 for each firm over a three- year term. (Audriana Hossfeld, Senior Civil Engineer) 6. Report regarding Resolution No. 73-2024 authorizing the acceptance of an additional $1,000 in grant funding for fiscal year 2024-25 from the Quality Improvement Grant from Quality Counts San Mateo County 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 25.059. (Angela Duldulao, Deputy Director of Parks and Recreation 7. Report regarding Resolution No. 74-2025 and Resolution No. 75-2025 authorizing the City Manager to execute Third Amendments to the Consulting Services Agreements with Frank and Grossman Landscape Contractors, Inc. and with Gothic Landscaping, beginning July 1, 2025. (Joshua Richardson, Parks Division Manager) 8. Report regarding Resolution No. 76-2025 approving the City’s Investment Policy for Fiscal Year 2025-26 (Frank Risso, City Treasurer and Karen Chang, Director of Finance) Item No. 8: City Treasurer Risso presented the report and discussed the minor changes. The Council thanked City Treasurer Risso for the information provided and work done. 12 REGULAR CITY COUNCIL MEETING JUNE 11, 2025 MINUTES PAGE 4 Motion – Councilmember Nicolas /Second – Councilmember Coleman: To approve Consent Calendar items 3-8 by roll call vote: AYES: Vice Mayor Addiego, Councilmember Nagales, Councilmember Coleman, Mayor Flores, Councilmember Nicolas; NAYS: None; ABSENT: None; ABSTAIN: None. ABSTAIN: None. PUBLIC HEARING 9. Report regarding Resolution No. 77-2025 amending Resolution 188-2023 authorizing the City of South San Francisco to submit a 5-Year Plan amendment to the State of California to receive and administer the City’s Entitlement of Permanent Local Housing Allocation (PLHA) Funds and to enter into all required agreements to receive PLHA Funds. (Elia Moreno, Management Analyst I) Public hearing opened: 7:36 p.m. Management Analyst Moreno presented the report. Vice Mayor Addiego inquired about the resources provided through the Economic Advancement Center (EAC) for housing. Management Analyst Moreno indicated the EAC is utilized as a service hub for resources which seeks to support residents through several service partners. Public hearing closed: 7:44 p.m. Motion – Councilmember Coleman /Second –Mayor Flores: To approve Resolution No. 77-2025 amending Resolution 188-2023 authorizing the City of South San Francisco to submit a 5-Year Plan amendment to the State of California to receive and administer the City’s Entitlement of Permanent Local Housing Allocation (PLHA) Funds and to enter into all required agreements to receive PLHA Funds. by roll call vote: AYES: Councilmember Nagales, Councilmember Coleman, Mayor Flores, Councilmember Nicolas; NAYS: Vice Mayor Addiego; ABSENT: None; ABSTAIN: None. ABSTAIN: None. ADMINISTRATIVE BUSINESS 10. Report regarding the City of South San Francisco Operating Budget for Fiscal Year 2025- 26. (Karen Chang, Director of Finance and Greg Henry, Financial Services Manager) Finance Director Chang introduced the item and provided an overview of the budget. Financial Services Manager Henry presented the key components of the proposed budget to include 2024- 25 year-end financial update, 2025-26 proposed budget, 5-Year projection, and recommendation. The Council engaged in questions and discussions with Department Head representatives to understand the needs and requests. The Council provided feedback and direction to staff. 11. Report Regarding Options for Revenue Enhancement. (Rich Lee, Assistant City Manager & Wing-See Fox, Urban Futures, Inc.) Assistant City Manager Lee introduced the item and welcomed Urban Futures, Inc. representatives. Managing Directors Wing-See Fox and Jim Morris presented the report and revenue enhancement measures. 13 REGULAR CITY COUNCIL MEETING JUNE 11, 2025 MINUTES PAGE 5 The Council engaged in discussions and provided feedback. 12. Report regarding the proposed Capital Improvement Program for the fiscal year 2025-26. (Eunejune Kim, Director of Public Works/City Engineer, and Matthew Ruble, Principal Engineer) Principal Engineer Ruble presented the proposed Capital Improvement Program. The Council engaged in questions and discussions as well as provided feedback. Meeting recessed at 9:43 p.m. Meeting resumed at 9:49 p.m. 13. Report regarding Resolution No. 78-2025 confirming the change in solid waste collection rates to be collected by the South San Francisco Scavenger Company effective July 1, 2025. (Karen Chang, Finance Director) Finance Director Chang introduced the item. President of South San Francisco Scavenger Company Doug Button presented the report and introduced staff members Sabrina Bortoli, Michael Formosa, and David Button. The Council suggested incorporating Scavengers newsletter and annual clean-ups into the City’s weekly newsletter. Motion – Vice Mayor Addiego /Second – Councilmember Nicolas: To approve Resolution No. 78-2025 confirming the change in solid waste collection rates to be collected by the South San Francisco Scavenger Company effective July 1, 2025, by roll call vote: AYES: Vice Mayor Addiego, Councilmember Nagales, Councilmember Coleman, Mayor Flores, Councilmember Nicolas; NAYS: None; ABSENT: None; ABSTAIN: None. ABSTAIN: None. 14. Report regarding Resolution No. 79-2025 authorizing the Chief of Police to execute a Memorandum of Understanding with San Mateo County law enforcement agencies to provide a standardized approach and method of collection and sharing information within their electronic data systems. (Anthony Pinell, Police Captain) Police Captain Pinell presented the report. The Council engaged in questions and received responses. Motion – Councilmember Nicols /Second – Councilmember Nagales: To approve Resolution No. 79-2025 authorizing the Chief of Police to execute a Memorandum of Understanding with San Mateo County law enforcement agencies to provide a standardized approach and method of collection and sharing information within their electronic data system, by roll call vote: AYES: Vice Mayor Addiego, Councilmember Nagales, Councilmember Coleman, Mayor Flores, Councilmember Nicolas; NAYS: None; ABSENT: None; ABSTAIN: None. ABSTAIN: None. 14 REGULAR CITY COUNCIL MEETING JUNE 11, 2025 MINUTES PAGE 6 ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS Mayor Flores congratulated Councilmember Nagales on his reappointment as the San Mateo County Representative to the Association of Bay Area Government (ABAG). Councilmember Nicolas requested the meeting be adjourned in memory of Nicolas Virginia. Councilmember Coleman requested the School District Liaison Meeting be scheduled. CLOSED SESSION Entered into Closed Session: 10:21 p.m. 15. Conference with Labor Negotiators (Pursuant to Government Code Section 54957.6) Agency designated representatives: Sharon Ranals, City Manager, Rich Lee, Assistant City Manager, Leah Lockhart, Human Resources Director, Jesse Lad, Redwood Public Law, Christopher Boucher, Boucher Law Employee organizations: AFSCME Local 829, IAFF Local 1507, SSF Police Association, Teamsters Local 856-Confidential, Teamsters Local 856-Mid-Management, Unrepresented Groups: Executive Management, Public Safety Managers Resumed from Closed Session: 11:24 p.m. ADJOURNMENT Being no further business, Mayor Flores adjourned the City Council meeting at 11:25 p.m. *** Adjourned in Memory of Manuel Valle and Nicolas Virginia *** Submitted by: Approved by: Jazmine Miranda Eddie Flores Assistant City Clerk Mayor Approved by the City Council: / / 15 REGULAR CITY COUNCIL MEETING JUNE 11, 2025 MINUTES PAGE 7 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 16 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:24-699 Agenda Date:6/25/2025 Version:1 Item #:2. Motion to accept the Training Tower Maintenance Project (pf1704)improvements as complete in accordance with project documents.(Lawrence Henriquez, Senior Civil Engineer) RECOMMENDATION Staff recommends that the City Council,by motion,accept the Training Tower Maintenance Project improvements as complete in accordance with the inspection reports provided by Fire Safety & Inspection Services, LLC. BACKGROUND/DISCUSSION The Fire Department’s Live Fire Training Structure (LFTS)is located at Fire Station No.61 at 480 North Canal Street (Attachment 1).The structure was built in 2006 and is a custom structure that Fire Facilities,Inc.installed.It consists of a 6-story tower,a 2-story residence,and a one-story annex (Attachment 2).The Fire Department hosts numerous training sessions throughout the year,and assurance that the LFTS’s components are in good working condition is vital to its yearly operations and functionality.For example,the LFTS contains burn room components for training exercises that need to be reliable and devoid of malfunctions when operating.Therefore,it is critical that the LFTS inner workings are kept in premium condition.The LFTS is constantly in use throughout the year and is an integral part of the Fire Department’s training regimen. On November 8,2023,City Council awarded the Training Tower Maintenance Project (“Project”)to Draeger,Inc.,Fire Facilities,Inc.,and to Burke Construction.The project replaced the Training Tower’s interior components such as the gas detection system,exterior estops,upgraded the fire props control system,replaced cover hallway detectors,gas detector cover panels,exterior exhaust fans;replaced the tower’s roof,catwalk,and provided a full electrical system upgrade.The Training Tower is heavily used throughout the year,and since it’s installment in 2006,the project’s work represented the first significant rehabilitation effort.Lastly,the Building Division inspected the work and found the project to be substantially complete in accordance with the inspection reports provided by Fire Safety & Inspection Services, LLC. FISCAL IMPACT The project was included in the City’s Fiscal Year (FY)2024-25 Capital Improvements Project budget.And there were sufficient funds to cover the total construction contract costs.The total construction costs incurred for the project in comparison to the project’s budget is summarized as follows: Contractor Actual Costs Allotted Project Budget with 20% Contingency Burke Construction, Inc. $246,535.00 $264,120.00 Draeger, Inc.$815,161.29 $916,648.00 Fire Facilities, Inc.$202,533.27 $219,460.25 Total $1,264,229.56 $1,400,228.54 City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™17 File #:24-699 Agenda Date:6/25/2025 Version:1 Item #:2. Contractor Actual Costs Allotted Project Budget with 20% Contingency Burke Construction, Inc. $246,535.00 $264,120.00 Draeger, Inc.$815,161.29 $916,648.00 Fire Facilities, Inc.$202,533.27 $219,460.25 Total $1,264,229.56 $1,400,228.54 There is no additional fiscal impact to the project budget approved on November 8, 2023, by City Council. RELATIONSHIP TO STRATEGIC PLAN Approval of this action will contribute to the City’s Strategic Plan outcome of improved Quality of Life by maintaining and improving infrastructure critical for the Fire Department’s training exercises. CONCLUSION Staff recommends acceptance of the project as complete in accordance with project documents. Attachments: 1.Vicinity Map 2.Training Tower Photo City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™18 19 20 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-621 Agenda Date:6/25/2025 Version:1 Item #:3. Report regarding the transfer of $13,787,957 from the Sewer Capacity Charge Fund (730)to the Sewer Enterprise Fund (710)in accordance with the 2017 Development Mitigation Fee Study and approving Budget Amendment Number 25.057 (Amanda Parker-Govea, Management Analyst I) RECOMMENDATION It is recommended that the City Council adopt a resolution authorizing the transfer of $13,787,957 from the Sewer Capacity Charge Fund (730)to the Sewer Enterprise Fund (710)representing the 66%buy-in share of total sewer impact fee revenue collected since FY 2017-18 in accordance with the 2017 Development Mitigation Fee Study. and approving Budget Amendment Number 25.057 BACKGROUND/DISCUSSION In 2017,the City of South San Francisco adopted the Development Mitigation Fee Study prepared by Michael Baker International,which established the fair-share costs associated with providing sewer infrastructure capacity to support new development.The study identified a total fair-share cost of $89,964,937 for the City’s sewer infrastructure.Of this total,$60,118,605 (or approximately 66%)was designated as the “buy-in” component, reflecting the value of existing assets that new development should reimburse the City for utilizing. Since the adoption of the study,the City has collected $20,890,845 in sewer capacity charges.In accordance with the cost allocation established by the 2017 study,66%of these fees,equivalent to $13,787,957,is attributable to the reimbursement of the Sewer Fund (Fund 710),which financed the existing capacity used by new developments. Fiscal Year Capacity Charges Collected66% Buy-In Share (Reimbursable to Fund 710) 2017-18 5,603,212$ 3,698,120$ 2018-19 2,947,010$ 1,945,027$ 2019-20 2,144,501$ 1,415,371$ 2020-21 1,973,513$ 1,302,518$ 2021-22 3,190,019$ 2,105,412$ 2022-23 1,194,997$ 788,698$ 2023-24 1,614,860$ 1,065,807$ 2024-25 2,222,734$ 1,467,004$ Total 20,890,846$ 13,787,957$ This proposed reimbursement aligns with the intent of the Mitigation Fee Act (Government Code §66000 et seq.)and supports the equitable distribution of infrastructure costs between existing users and new development.It also ensures that the Sewer Fund is reimbursed for its investment in capacity that benefits growth. City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™21 File #:25-621 Agenda Date:6/25/2025 Version:1 Item #:3. FISCAL IMPACT The proposed transfer of $13,787,957 from the Sewer Capacity Charge Fund to the Sewer Enterprise Fund will increase the available resources in the Sewer Enterprise Fund for future needs.This action does not create any new expenses.Instead,it ensures the accurate allocation of previously incurred capital costs to the appropriate funding source,as defined by the City’s adopted Study.The proposed action will also correct the historical funding allocation and restore the Sewer Fund balance,preserving its capacity to support ongoing operations, maintenance, and future infrastructure needs. RELATIONSHIP TO STRATEGIC PLAN This action supports Strategic Priority No.3 -Infrastructure,by ensuring proper funding allocation for essential public infrastructure and preserving the long-term sustainability of enterprise funds. CONCLUSION Staff recommends that the City Council approve the resolution and Budget Amendment Number 25.057 to facilitate the reimbursement of the Sewer Fund (710)for a proportionate share of eligible capacity-related infrastructure improvements, in accordance with the City’s development impact financing framework. City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™22 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-622 Agenda Date:6/25/2025 Version:1 Item #:3a. Resolution authorizing the transfer of $13,787,957 from the Sewer Capacity Charge Fund (730)to the Sewer Fund (710) and approving Budget Amendment Number 25.057 WHEREAS,the City of South San Francisco adopted the 2017 Development Mitigation Fee Study prepared by Michael Baker International,which established the sewer capacity charge structure based on a cost allocation methodology; and WHEREAS,the study identified that 66%of the total sewer impact fees represent a buy-in cost to reimburse the City for existing infrastructure capacity that had been created to be used by new development that would be subject to the sewer capacity charge; and WHEREAS,since Fiscal Year 2017-18,the City has collected $20,890,845 in sewer capacity charges,with $13,787,957 representing the 66% buy-in share due to the Sewer Enterprise Fund (Fund 710); and WHEREAS,the Sewer Enterprise Fund has historically funded sewer infrastructure that benefits both existing users and new development; and WHEREAS,the City desires to reimburse the Sewer Enterprise Fund from the Sewer Capacity Charge Fund (Fund 730)to ensure proper allocation of collected fees in compliance with applicable laws and the City’s adopted fee study; and WHEREAS,it is the intent of the City to ensure proper cost allocation between existing ratepayers and new development, and to use development impact fees in accordance with state law and adopted nexus studies. NOW,THEREFORE,BE IT RESOLVED,that the City Council authorizes the transfer of $13,787,957 from the Sewer Capacity Charge Fund (Fund 730)to the Sewer Enterprise Fund (Fund 710),representing the 66% buy-in share of sewer capacity charges collected since Fiscal Year 2017-18. BE IT FURTHER RESOLVED that the City Council approves Budget Amendment Number 25.057 to amend the FY 2024-25 budget and reflect the appropriate adjustments in fund balances in connection with this transfer. BE IT FURTHER RESOLVED,that the City Manager,or their designee,is hereby authorized to administratively allocate the buy-in portion,currently 66%,of all sewer capacity charge revenue to the Sewer Enterprise Fund (Fund 710)upon receipt,consistent with the cost allocation methodology set forth in the 2017 Development Mitigation Fee Study, and as may be updated in future adopted studies. BE IT FURTHER RESOLVED,that the City Manager,or their designee,is authorized to take all actions necessary to effectuate this transfer,including budget amendments,interfund transfers,and accounting adjustments, as needed, consistent with the intent of the associated Staff Report or this Resolution. ***** City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™23 File #:25-622 Agenda Date:6/25/2025 Version:1 Item #:3a. City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™24 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-603 Agenda Date:6/25/2025 Version:1 Item #:4. Report regarding a resolution approving a consulting services agreement with Daryl D.Jones,Inc.,for Telecommunications Engineering and Police Information Technology Administration Services for a three-year term in an amount not to exceed $650,000 and authorizing the City Manager to execute the consulting services agreement.(Ken Chetcuti, Police Captain) RECOMMENDATION It is recommended that the City Council adopt a resolution approving a consulting services agreement with Daryl D.Jones,Inc.,for telecommunications engineering and police information technology administration services for a three-year term in an amount not to exceed $650,000 and authorize the City Manager to execute the consulting services agreement. BACKGROUND/DISCUSSION The City of South San Francisco Police Department (SSFPD)has had a consulting services agreement with Daryl D.Jones Inc.(Consultant),for the last 30 years.Mr.Jones was a city employee between 1981 and 1994 with responsibilities like those of the current consulting services agreement.For the past 25 years,Consultant and team have worked closely with the City’s Information Technology (IT)Department,building a strong relationship and providing necessary services. The Consultant provides uniquely specialized services that are essential to the operation of the SSFPD’s communications technology needs.Consultant and team are recognized throughout the Bay Area as stand-alone experts in their field,and the services of the Consultant has been used by all law enforcement agencies in the area for many years.There are no other known companies that can provide the depth and breadth of service provided by the Consultant. SCOPE OF SERVICES Consultant will serve as the administrator and engineer for City public safety telecommunications systems and facilities,and computer technology related to law enforcement systems.Responsibilities include routine administration for the SSFPD’s computer aided dispatch,message switching systems,and police records management systems. Additionally, Consultant will do the following: ·Participate with City staff on matters related to public-safety information technology planning including computer, radio, telephone, and data communications systems. ·Develop and maintain professional relationships with the city management team. ·Serve as a principal systems administrator and engineer for all law enforcement information City of South San Francisco Printed on 6/18/2025Page 1 of 4 powered by Legistar™25 File #:25-603 Agenda Date:6/25/2025 Version:1 Item #:4. management systems and public safety telecommunications systems. ·Advise on matters related to system and network security,including compliance with Lawnet and Department of Justice requirements. ·Be available to respond to requests for technical assistance from SSFPD staff after normal business hours. ·Provide consulting and problem resolution assistance for matters related to the Law Enforcement Records Management System,Computer Aided Dispatch System,Mobile Data System,and Message- Switching System. ·Provide the IT Department with troubleshooting guidance and direction when feasible on the Records Management System,Computer Aided Dispatch System,and Mobile Data System to assist in supporting the SSFPD. ·Assist with the administration of all electronic equipment used in the public-safety communications center, including E-911 and the dispatch center facility. ·Participate in budget preparation and administration for law enforcement technology. ·Represent the SSFPD at various local,state,and regional professional seminars,conferences, presentations, etc. ·Assist in the training and duty assignments of police personnel. ·Maintain current detailed documentation and provide to the IT Department related to the Law Enforcement Records Management System,Computer Aided Dispatch System,Mobile Data System, Message-Switching System,Radio System,and Microwave System,including network drawings, circuit information, contact information, and all other relevant information to support the systems. ·Notify the IT Department and provide any new documentation on all new equipment,software,circuit installations, and other technology used in the SSFPD. ·Technical assistance and systems design for upcoming initiatives, including: Continuing Projects (2025-2028): ·Next Generation 911 (NG911): Modernization of emergency call routing using VOIP. ·ERRCS Coordination: Ensuring radio systems do not interfere with public safety frequencies. The proposed consulting services agreement with Consultant,provides for a three-year average cost of $216,667 per year.Under the agreement,Consultant will typically be on site Monday-Friday.Consultant will field calls on a regular,24x7 basis,including weekends,without additional charges.Based on a 40-hour work week, hourly rate is $104.16 per hour. Over the many years,Consultant has proven to be a highly skilled engineer who was instrumental in providing input for the police dispatch center.Consultant and team also collaborated with the IT team for the smooth transition into the new City facilities. The critical factor in the staff recommendation to retain Consultant is flexibility and around-the-clock coverage to support SSFPD.Consultant regularly responds to requests for technical assistance from SSFPD staff,as well City of South San Francisco Printed on 6/18/2025Page 2 of 4 powered by Legistar™26 File #:25-603 Agenda Date:6/25/2025 Version:1 Item #:4. to support SSFPD.Consultant regularly responds to requests for technical assistance from SSFPD staff,as well as from the Pacifica Police Department who is under contract with the City.Requests typically pertain to computer-aided dispatch,mobile data systems,and dispatch radio issues.On average,Consultant responds to six after-hours’calls per week,some at 3:00 a.m.Most are handled remotely while others take several hours to complete. It is not feasible for the IT Department to take on the services provided by Consultant due to the unique nature of those services.Even if the IT Department were able to take on some of the services,there would still be a need to contract with an outside vendor to supplement those services that are beyond the scope and ability of what the IT Department can provide.The other Bay Area agencies that contract with Consultant have also determined that it would be too expensive to provide the services rendered by Consultant,and that contracting with Consultant is the most effective way to ensure complex communications technology needs are met. As part of evaluating the current proposed agreement,SSFPD worked closely with the IT Department to determine which areas of services could potentially be picked up by IT.Staff reviewed different levels of support,work knowledge,experience,and IT staff resources.Staff determined that continuing a services agreement with Consultant would provide less risk,reduce costs,and allow IT staff more time to focus on routine desktop and mobile computer support,and on other City-related calls.Furthermore,the IT Director determined that if the City replaced Consultant,there would be a need to hire at least two new full-time employees with radio and police department experience to manage the complex dispatch and radio communication system.The City would also need to establish a contract with an outside company,for more complex radio issues. Two new employees with benefits could cost more than $350,000 per year. Staff therefore recommends that the services agreement with Consultant be authorized pursuant to the “sole source”procurement method under the South San Francisco Municipal Code (SSFMC).The “sole source” procurement method is used to describe instances where the products or services the City desires to obtain are available only from one vendor,and the City is procuring such product or service from that vendor instead of going through the open market procedure. SSFMC 4.04.080(a)permits the City to dispense with open market procedures if a commodity can only be obtained from one vendor. Staff recommends that the City Council authorize use of the “sole source”procurement method as the specialized services that Consultant provides cannot be obtained from any other vendor. FISCAL IMPACT Funding is budgeted in the SSFPD Fiscal Year’s Budgets (2025-26, 2026-27, and 2027-28). RELATIONSHIP TO STRATEGIC PLAN This item meets the City’s strategic planning goal:#3 Public Safety -Skilled police,fire,emergency medical & disaster management. CONCLUSION The staff of the South San Francisco Police and Information Technology Departments both recommend authorizing the contract for Daryl D.Jones Inc.,for three years.Consultant and team provide necessary services City of South San Francisco Printed on 6/18/2025Page 3 of 4 powered by Legistar™27 File #:25-603 Agenda Date:6/25/2025 Version:1 Item #:4. authorizing the contract for Daryl D.Jones Inc.,for three years.Consultant and team provide necessary services to keep the SSFPD at the forefront of technology.This is the most cost-effective and low-risk option for providing the citizens of South San Francisco and its contract cities with the best engineering and support. It is recommended that the City Council adopt a resolution approving a consulting services agreement with Daryl D.Jones,Inc.,for telecommunications engineering and police information technology administration services for a three-year term in an amount not to exceed $650,000 and authorizing the City Manager to execute the consulting services agreement. City of South San Francisco Printed on 6/18/2025Page 4 of 4 powered by Legistar™28 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-605 Agenda Date:6/25/2025 Version:1 Item #:4a. Resolution approving a consulting services agreement with Daryl D.Jones,Inc.for Telecommunications Engineering and Police Information Technology Administration Services for a three-year term in an amount not to exceed $650,000 and authorizing the City Manager to execute the consulting services agreement. WHEREAS,the South San Francisco Police Department (SSFPD)has had a consulting services agreement with Daryl D. Jones, Inc.(“Consultant”), for the last 30 years; and WHEREAS,Daryl D.Jones was an SSFPD employee between 1981 and 1994 with responsibilities similar to those of the current consulting services agreement,and for the past 25 years Consultant and team have worked closely with the City’s Information Technology (IT)Department,building a strong relationship,and providing needed services; and WHEREAS,the IT Department is responsible for providing support to the SSFPD office computers,network equipment,server infrastructure,office phones,and in-car computers,but the team is not versed in the specialized skills to maintain the computer-assisted dispatch system and the complex radio communications systems; and WHEREAS,the specialized skills required are augmented by Consultant and team and are recognized throughout the Bay Area as stand-alone experts in the field; and WHEREAS,Consultant has proved to be a highly skilled engineer who was instrumental in providing feedback for the new police dispatch center and collaborated with the IT team for the smooth transition into the new City facilities; and WHEREAS,Consultant provides around-the-clock coverage to support the SSFPD,regularly responds to requests for technical assistance from SSFPD employees,as well as from the Pacifica Police Department who is under contract with the City,pertaining to computer-aided dispatch,mobile data systems,and dispatch radio issues; and WHEREAS,other Bay Area agencies that contract with Consultant have also determined that it would be too expensive to provide services rendered by an outside vendor and that contracting with Consultant is the most effective way to ensure complex communications technology needs are met; and WHEREAS,Consultant will serve as administrator and engineer for City public safety telecommunications systems and facilities, and computer technology related to law enforcement systems; and WHEREAS,the City Police and IT Departments have continued projects in progress,such as,Next Generation 911 (NG911)which is the modernization of emergency call routing and ERRCS Coordination,ensuring radio systems do not interfere with public safety frequencies; and WHEREAS,keeping Consultant on contract provides less risk,reduces cost,and allows IT staff more time to City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™29 File #:25-605 Agenda Date:6/25/2025 Version:1 Item #:4a. focus on routine desktop and mobile computer support, and other City related calls; and WHEREAS,City Council desires to authorize execution of a consulting services agreement with Consultant pursuant to the “sole source”procurement method under South San Francisco Municipal Code 4.04.080(a), which permits the City to dispense with open market procedures if a commodity can only be obtained from one vendor; and WHEREAS,Consultant is the only company with the full understanding of the South San Francisco public safety network, and thus is the most qualified to continue to support the SSFPD; and WHEREAS,funding for this service is included in the SSFPD Fiscal Year’s Budget (2025-26,2026-27,2027- 28); and WHEREAS,City Council desires to approve a consulting services agreement with Consultant for telecommunication engineering and police information technology administration services for a three-year term in an amount not to exceed $650,000 and authorize the City Manager to execute the consulting services agreement. NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco approves a consulting service agreement,attached herewith and incorporated herein as Exhibit A,with Consultant for telecommunication engineering and police information technology administration services for a three-year term in an amount not to exceed $650,000. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the agreement in substantially the same form as Exhibit A on behalf of the City of South San Francisco,subject to approval as to form by the City Attorney. ***** City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-647 Agenda Date:6/25/2025 Version:1 Item #:5. ..Title Report regarding a resolution approving a Sixth Amendment with JobTrain,Inc.for workforce development support services in an amount not to exceed $75,835 and a Sixth Amendment with Renaissance Entrepreneurship Center for entrepreneurship development services in an amount not to exceed $184,165.( Michael Guss, Economic Development Specialist) RECOMMENDATION Staff recommends City Council adopt a resolution approving a Sixth Amendment with JobTrain,Inc.,not to exceed $75,835 until funds are exhausted or December 31,2025,whichever occurs sooner,and a Sixth Amendment with Renaissance Entrepreneurship Center,not to exceed $184,165 until funds are exhausted or December 31, 2025, whichever occurs sooner. BACKGROUND The City established the Economic Advancement Center (EAC)with a $2 million General Fund appropriation in 2021.The EAC was designed as a Covid-19 recovery program.The main goal of the EAC was to assist South San Francisco residents who were displaced from employment,or had their small businesses impacted, during the Covid-19 pandemic generate income quickly as Covid relief funds waned. A central reason for creating the EAC was that North San Mateo County was a resource desert prior to,during, and immediately after,the Covid-19 pandemic.Many individuals who could have benefited from Covid-19 relief programs were not able to apply because the locations that served South San Francisco were based in Redwood City, San Francisco, and Sunnyvale. The City conducted a Requests for Qualifications (RFQ)process to select a workforce development service provider and a small business/entrepreneurship counseling and development provider.As a result of the twin RFQs,JobTrain,Inc.was selected as the workforce development provider and Renaissance Entrepreneurship Center was selected as the small business development provider. Grant Funding for the EAC As the Covid-19 pandemic receded,the EAC was successful in obtaining several grants to support continued operations. In February 2022,the City received a $1.132 million grant from the United States Department of Commerce, Economic Development Administration (EDA)to support small business development and entrepreneurial development services at the EAC.The EDA grant funded the EAC’s small business programs from March 2022 through December 31,2024.All funds have been expended,the City has received the full $1.132 million from City of South San Francisco Printed on 6/18/2025Page 1 of 5 powered by Legistar™61 File #:25-647 Agenda Date:6/25/2025 Version:1 Item #:5. through December 31,2024.All funds have been expended,the City has received the full $1.132 million from EDA; the City also received a closeout letter in May 2025. In May 2023,the City received a $500,000 grant from the United States Department of Labor.This project was made possible through the work of former Member of Congress Jackie Speier,who submitted an earmark request on the City’s behalf.This grant paid for roughly half of the EAC’s workforce development programs from 2023 through May 31, 2025. In July 2023,the City received a $1 million appropriation from the Office of State Senator Josh Becker.This could support operations of the EAC,including space,workforce development services and small business development/entrepreneurial services.This earmark has funded the cost of leasing the EAC,and filled gaps in workforce development and small business funding over the past two years. In October 2024,the City received a $270,000 grant from San Mateo County Measure K funds designated by Supervisors Pine and Canepa to fund workforce development services,small business development services, and the Promotores Program.This grant requires $184,165 to be spent on Renaissance Entrepreneurship Center’s small business development programs,$75,835 on JobTrain’s workforce development services,and $10,000 on the Promotores Program. This funding remains available to spend down. The grants described above shifted the focus of the EAC from Covid-19 recovery to economic mobility services and expanded the service area of the EAC from the City of South San Francisco to include the communities of Brisbane,Colma,Daly City,Pacifica,Millbrae,and San Bruno in addition to the City of South San Francisco. Previous Renaissance & JobTrain Contract Amendments, and Clients Served Since 2021,City Council has approved four cost extension amendments to the contract with Renaissance Entrepreneurship Center and four cost extensions to the contract with JobTrain, Inc. They are as follows: Renaissance Entrepreneurship Center: Year Contracted Amount 2021 $467,000 2022 $568,128 2023 $573,327 2024 $425,000 Total $2,251,910 As a result of this investment,262 businesses received technical assistance,41 business launched,and 543 jobs were created or retained (246 created and 297 retained). Since 2021,City Council has approved four cost extension amendments to the contract with JobTrain,Inc. City of South San Francisco Printed on 6/18/2025Page 2 of 5 powered by Legistar™62 File #:25-647 Agenda Date:6/25/2025 Version:1 Item #:5. They are as follows: JobTrain, Inc. YearContracte d Amount 2021 $403,916 2022 $469,200 2023 $515,387 2024 $387,613 Total $1,776,116 As a result of this investment,357 individuals obtained employment at an average wage of $22.46 per hour (total earned varied from $15 an hour to $75 per hour);the total annual wages of JobTrain clients who obtained employment through the EAC is $16.67 million per year.This is roughly a 939%annual return on funds expended on workforce development services. Future Funding for the EAC While the EAC has been a success,and the services valuable to South San Francisco residents as well as residents of nearby communities,the City’s ability to subsidize the services offered at the EAC is coming to an end.Since 2022,services at the EAC have been significantly subsidized through federal and state grants.Since 2022,the federal government has pulled back funding across the board,and the state government went from record surpluses to significant deficits.The City now faces a significant structural deficit,as well,leaving the City in a position where it can no longer guarantee General Fund funding for the EAC. Housing Division staff identified a way to pay for the cost of the EAC facility.The Permanent Local Housing Allowance (PLHA)can pay for facility costs to host services that assist people in avoiding homelessness.The services provided at the EAC are services that assist people with avoiding homelessness,and are therefore eligible under PLHA.Staff is currently evaluating a lease extension at the current EAC facility or moving the EAC to another location. Service provider JobTrain was successful in obtaining a large grant from the State of California.Their $3 million grant will pay for job placement services (with a specific focus on individuals re-entering society after serving time in jail or prison)in San Jose,East Palo Alto,North Fair Oaks and South San Francisco.Our understanding from speaking with JobTrain staff is that the grant pays for 75%of the Career Specialists’ salaries who work at the EAC between June 1, 2025 and May 31, 2028. Renaissance and JobTrain are working together with the support of City staff to solicit funds from private foundations.Promising conversations have occurred with one prominent foundation,and asks have been made at several others. City staff is engaged in a planning process to examine the feasibility of locating a Financial Empowerment City of South San Francisco Printed on 6/18/2025Page 3 of 5 powered by Legistar™63 File #:25-647 Agenda Date:6/25/2025 Version:1 Item #:5. City staff is engaged in a planning process to examine the feasibility of locating a Financial Empowerment Center (FEC)within the EAC.FECs provide 1:1 financial counseling to individuals;this focuses on establishing a bank account,reducing debt,creating savings plan,establishing credit and increasing credit scores.Financial counseling can be provided for a myriad of reasons,including obtaining more suitable housing,buying a home,buying a car,etc.Limited services for business owners are provided by FECs;these services focus on detangling the personal and business finances of microentrepreneurs.FECs can also make referrals to service providers,such as Small Business Development Centers,when they are unable to provide the services clients are seeking.If a FEC is found to be feasible,the City would issue a RFP for services and the services would likely be located within the EAC. By allocating the $260,000 remaining in the Measure K discretionary grant provided by Supervisors Dave Pine and Dave Canepa in 2024 to cost-extensions for Renaissance Entrepreneurship Center and JobTrain,Inc.,the City will be able to provide services at the EAC through the Fall.This will allow the FEC planning process to be completed, and philanthropic fundraising to continue. DISCUSSION City Council could elect to cease EAC operations on July 1,2025 when the existing contracts expire (the lease runs through August).However,because of JobTrain’s state funding,this would likely mean that services would be moved to another community,such as San Bruno,Daly City,or Brisbane in North San Mateo County. Ceasing EAC operations on July 1,2025 would leave entrepreneurs in South San Francisco without services and would re-establish the service desert that the EAC was established to address.This would also require the City to return the $260,000 that the County awarded to the City to provide services at the EAC. In October 2024,the City Council passed Resolution 158-2024,which approved budget amendment 25.022.As a result,these funds were added to the appropriate projects in the City’s financial system.No further budget amendment is necessary;the proposed resolution merely authorizes amendments to the service provider contracts to expend grant monies already accepted and budgeted by City Council. Finally,because the Permanent Local Housing Allocation can pay for space and because the County Discretionary Grant can pay for the extensions, there is no impact to the general fund to approve this resolution. Approving this resolution would allow the City and its nonprofit partners appropriate time to transition services at the EAC and adapt the EAC model to changing conditions. FISCAL IMPACT There is no impact to the General Fund associated with adopting the resolution. CONCLUSION Short-term extensions through December 31,2025 give staff the time to complete planning processes and nonprofits time to transition to a model where the City provides the space to operate the EAC,but does not directly fund services provided at the EAC. City of South San Francisco Printed on 6/18/2025Page 4 of 5 powered by Legistar™64 File #:25-647 Agenda Date:6/25/2025 Version:1 Item #:5. Attachments: 1.Resolution 158-2024 2.Executed Grant Agreement Between County of San Mateo and City of South San Francisco City of South San Francisco Printed on 6/18/2025Page 5 of 5 powered by Legistar™65 66 67 68 69 70 71 72 73 74 75 Agreement No. __________ Board Resolution No. ________ Page 1 MEASURE K GRANT AGREEMENT BETWEEN THE COUNTY OF SAN MATEO AND CITY OF SOUTH SAN FRANCISCO This Agreement is entered into this 8th day of October 2024 by and between the County of San Mateo, a political subdivision of the state of California, hereinafter called “County,” and City of South San Francisco, hereinafter called “Grantee.” * * * WHEREAS, the Grantee has applied to the County seeking a grant for the purpose of funding the matters set forth in its Project described in Exhibit A (the “Grant”); WHEREAS, the County has approved the grant of certain funds to Grantee pursuant to the terms set forth in this Agreement; NOW, THEREFORE, it is agreed by the parties to this Agreement as follows: 1. Exhibits and Attachments The following exhibits and attachments are attached to this Agreement and incorporated into this Agreement by this reference: Exhibit A—Project Description Exhibit B—Reporting and Invoicing 2. Grant County hereby grants to Grantee a sum not to exceed Two Hundred Seventy Thousand Dollars and Zero Cents ($270,000) in consideration of and on the condition that the sum be expended for the sole purpose of carrying out the objectives of Grantee’s Project as identified in Exhibit A, and in no event shall the County’s total fiscal obligation under this Agreement exceed this amount. Grantee agrees to assume any obligation to secure and furnish any additional funds that may be necessary to carry out its Project. Funds granted under this Agreement shall not be disbursed until execution of this Agreement by County and Grantee. County shall disburse grant funds to Grantee 30 calendar days after receipt of a satisfactory invoice. Invoices should be accompanied by back up documentation (e.g., receipts for professional services rendered, salary and benefits back up, etc.) and submittal of any required summary reports outlined in Exhibits A or B. The County reserves the right to change the disbursement method during the term of this Agreement. The disbursement schedule is as follows:  Payment 1- Invoice for up to 50% of the grant ($135,000), upon submission of receipts/invoices showing expenditures and proof of performance measures, timesheets, and activity logs on items funded by the grant and listed in Exhibit A and/or B.  Payment 2- Invoice for remainder of the grant ($135,000), upon submission of receipts/invoices showing expenditures and proof of performance measures, timesheets, and activity logs on items funded by the grant and listed in Exhibit A and/or B, including photographs and use of Measure K logo as approved by the County. INVOICES: Requests for grant disbursement should be (1) on the organization’s official letterhead, (2) include date of invoice, amount requested, and Agreement number, and (3) submitted to the attention of: County Executive’s Office 500 County Center, 5th Floor Docusign Envelope ID: 44DF649E-7DA3-4B5C-AEB5-CB4A8CC99B0F 76 Agreement No. __________ Board Resolution No. ________ Page 2 Redwood City, CA 94063 CEO_AP_Inbox@smcgov.org 3. Term & Termination Subject to compliance with all terms and conditions, the term of this Agreement shall begin upon execution of this Agreement by its duly authorized representatives and continue through December 31, 2025. This Agreement will not automatically renew, nor shall it create any reliance on the possibility of future grants. County may terminate this Agreement based upon the unavailability of Federal, State, or County funds by providing written notice to Grantee within a reasonable time after County learns of said unavailability of funding. Grantee acknowledges that this Agreement may be subject to approval of the Board of Supervisors, and assumes all risk of possible non-appropriation and non-approval of funds. County may suspend and/or terminate this Agreement if Grantee fails to comply with the terms of this Agreement and may, in its sole discretion, withhold or cancel pending and future disbursements of grant funds and/or require Grantee to return some or all funds disbursed under this Agreement. 4. Relationship of Parties Notwithstanding any publicity or other references to the County required to be made in connection with the Project as set forth in Exhibit A, Grantee understands and agrees that the Project performed under this Agreement is not performed by Grantee as an independent contractor of the County or as an employee of County and that neither Grantee nor its employees acquire any of the rights, privileges, powers, or advantages of County contractors or County employees. Grantee acknowledges and agrees that it is not, and will not hold itself out as, an agent, partner, or co-venturer of the County, and that this Agreement is not intended to and does not create an agency, partnership, or joint venture between the Parties. 5. Project Administration The Parties agree that the Project as described in Exhibit A shall not be altered without a written amendment to this Agreement, signed by both the County and the Grantee. Grantee shall provide written reports to the County’s authorized representative in accordance with Exhibit B. 6. Hold Harmless Grantee shall indemnify and save harmless County and its officers, agents, employees, and servants from all claims, suits, or actions of every name, kind, and description resulting from this Agreement, the performance of any work or services performed of Grantee in furtherance of the Project under this Agreement, or payments made pursuant to this Agreement brought for, or on account of, any of the following: (A) injuries to or death of any person, including Grantee or its employees/officers/agents/volunteers; (B) damage to any property of any kind whatsoever and to whomsoever belonging; (C) any sanctions, penalties, or claims of damages resulting from Grantee’s failure to comply with any applicable federal, state, or local laws or regulations; or (D) any other loss or cost, including but not limited to that caused by the concurrent active or passive negligence of County and/or its officers, agents, employees, or servants. However, Grantee’s duty to indemnify and save harmless under this Section shall not apply to injuries or damage for which County has been found in a court of competent jurisdiction to be solely liable by reason of its own negligence or willful misconduct. Docusign Envelope ID: 44DF649E-7DA3-4B5C-AEB5-CB4A8CC99B0F 77 Agreement No. __________ Board Resolution No. ________ Page 3 The duty of Grantee to indemnify and save harmless as set forth by this Section shall include the duty to defend as set forth in Section 2778 of the California Civil Code. 7. Insurance a. General Requirements Prior to its receipt of any funds pursuant to this Grant Agreement, Grantee shall obtain all insurance required under this Section and such insurance shall be subject to the approval by County’s Risk Management, and Grantee shall use diligence to obtain such insurance and to obtain such approval. Grantee shall furnish County with certificates of insurance evidencing the required coverage, and there shall be a specific contractual liability endorsement extending Grantee’s coverage to include the contractual liability assumed by Grantee pursuant to this Agreement. These certificates shall specify or be endorsed to provide that thirty (30) days’ notice must be given, in writing, to County of any pending change in the limits of liability or of any cancellation or modification of the policy. b. Workers’ Compensation and Employer’s Liability Insurance Grantee shall have in effect during the entire term of this Agreement workers’ compensation and employer’s liability insurance providing full statutory coverage. In signing this Agreement, Grantee certifies, as required by Section 1861 of the California Labor Code, that (a) it is aware of the provisions of Section 3700 of the California Labor Code, which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of the Labor Code, and (b) it will comply with such provisions before commencing or continuing the performance of Project work for which it would receive grant funds. c. Liability Insurance Grantee shall take out and maintain during the term of this Agreement such bodily injury liability and property damage liability insurance as shall protect Grantee and all of its employees/officers/agents while performing work covered by this Agreement from any and all claims for damages for bodily injury, including accidental death, as well as any and all claims for property damage which may arise from Grantee’s operations under this Agreement, whether such operations be by Grantee, any subcontractor, anyone directly or indirectly employed by either of them, or an agent of either of them. Such insurance shall be combined single limit bodily injury and property damage for each occurrence and shall not be less than the amounts specified below: ☒ Comprehensive General Liability… $1,000,000 (Applies to all agreements) ☐ Motor Vehicle Liability Insurance… $1,000,000 (To be checked if motor vehicle used in performing services) ☐ Professional Liability………………. $1,000,000 (To be checked if Grantee is a licensed professional) County and its officers, agents, employees, and servants shall be named as additional insured on any such policies of insurance, which shall also contain a provision that (a) the insurance afforded thereby to County and its officers, agents, employees, and servants shall be primary insurance to the full limits of liability of the policy and (b) if the County or its officers, agents, employees, and servants have other insurance against the loss covered by such a policy, such other insurance shall be excess insurance only. In the event of the breach of any provision of this Section, or in the event any notice is received which indicates any required insurance coverage will be diminished or canceled, County, at its option, may, Docusign Envelope ID: 44DF649E-7DA3-4B5C-AEB5-CB4A8CC99B0F 78 Agreement No. __________ Board Resolution No. ________ Page 4 notwithstanding any other provision of this Agreement to the contrary, immediately declare a material breach of this Agreement and suspend any further payment pursuant to this Agreement. 8. Assignability and Subcontracting Grantee shall not assign this Agreement or any portion of it to a third party. Except as set forth in Exhibit A, Grantee shall not subcontract with a third party to perform the Project. Any such assignment or subcontract without County’s prior written consent shall give County the right to automatically and immediately terminate this Agreement without penalty or advance notice and the County shall have the right to a refund of all funds disbursed under this Agreement. 9. Compliance With Laws All services to be performed by Grantee in connection with the Project shall be performed in accordance with all applicable Federal, State, County, and municipal laws, ordinances, and regulations, including, but not limited to, any laws related to payment of prevailing wages pursuant to the California Labor Code. In connection with the Project, Grantee bears responsibility to obtain, at Grantee’s expense, any license, permit, or approval required from any agency. 10. Merger Clause; Amendments This Agreement, including Exhibits, constitutes the sole Agreement of the parties regarding the Grant, and correctly states the rights, duties, and obligations of each party as of this document’s date. In the event that any term, condition, provision, requirement, or specification set forth in the body of this Agreement conflicts with or is inconsistent with any term, condition, provision, requirement, or specification in any Exhibit and/or Attachment to this Agreement, the provisions of the body of the Agreement shall prevail. Any prior agreement, promises, negotiations, or representations between the parties concerning the Grant that are not expressly stated in this document are not binding. All subsequent modifications or amendments shall be in writing and signed by the parties. 11. Controlling Law; Venue The validity of this Agreement and of its terms, the rights and duties of the parties under this Agreement, the interpretation of this Agreement, the performance of this Agreement, and any other dispute of any nature arising out of this Agreement shall be governed by the laws of the State of California without regard to its choice of law or conflict of law rules. Any dispute arising out of this Agreement shall be venued either in the San Mateo County Superior Court or in the United States District Court for the Northern District of California. 12. Notices Any notice, request, demand, or other communication required or permitted under this Agreement shall be deemed to be properly given when both: (1) transmitted via email to the email address listed below; and (2) sent to the physical address listed below by either being deposited in the United States mail, postage prepaid, or deposited for overnight delivery, charges prepaid, with an established overnight courier that provides a tracking number showing confirmation of receipt. In the case of County, to: In the case of Grantee, to: County Executive’s Office Molly Ortiz, Administrative Assistant II 500 County Center, 5th Floor Redwood City, CA 94063 Email: mortiz@smcgov.org Phone: (650) 363-1810 City of South San Francisco Ernesto Lucero, Economic Development Manager PO Box 711 South San Francisco, CA 94083-0711 Email: Ernesto.Lucero@ssf.net Phone: (650) 829-6620 Docusign Envelope ID: 44DF649E-7DA3-4B5C-AEB5-CB4A8CC99B0F 79 Agreement No. __________ Board Resolution No. ________ Page 5 13. Electronic Signature Both County and Contractor wish to permit this Agreement and future documents relating to this Agreement to be digitally signed in accordance with California law and County’s Electronic Signature Administrative Memo. Any party to this Agreement may revoke such agreement to permit electronic signatures at any time in relation to all future documents by providing notice pursuant to this Agreement. Docusign Envelope ID: 44DF649E-7DA3-4B5C-AEB5-CB4A8CC99B0F 80 Agreement No. __________ Board Resolution No. ________ Page 6 * * * THIS AGREEMENT IS NOT VALID UNTIL SIGNED BY ALL PARTIES. NO FUNDS WILL BE DISTRIBUTED UNTIL THIS DOCUMENT HAS BEEN SIGNED BY THE COUNTY’S AUTHORIZED DESIGNEE. For Grantee: City of South San Francisco _____________________________ (signature) Authorized Representative Grantee _____________________________ (please print name) Authorized Representative Grantee _______________ Date _____________________________ Name of Grantee _____________________________ (signature) City Attorney _____________________________ (attestation) City Clerk For County: ______________________________ (Signature) Authorized Designee County of San Mateo ROBERTO MANCHIA ____________________________ (please print name) Authorized Designee County of San Mateo ______________ Date CHIEF FINANCIAL OFFICER ______________________________ Job Title (please print) 80125-6265 ______________________________ Budget Unit BOSD1 $250,000 and BOSD5 $20,000 ______________________________ Measure K JL Code Docusign Envelope ID: 44DF649E-7DA3-4B5C-AEB5-CB4A8CC99B0F 10/17/2024 10/19/2024 SHARON RANALS 10/23/2024 81 Agreement No. __________ Board Resolution No. ________ Page 7 Exhibit A The County and Grantee agree that the grant funds shall only be used to further the goals of the following Project, described below and in the October 8, 2024 Board transmittal and resolution, incorporated herein by reference: Grantee will use grant funds to support the North San Mateo County Economic Advancement Center (“EAC”) located in South San Francisco. The EAC brings services closer to clients, and by making it convenient to get to and from the service center, increases opportunities for residents to access critical services. The Grantee will collaborate with Renaissance Entrepreneurship Center and JobTrain Inc. to provide services at the EAC. Renaissance will provide small business and entrepreneurship training to individuals interested in establishing or expanding a business. JobTrain will provide workforce development services. The grant will also fund the City’s Promotores, who will provide intake and social services navigation services to clients. The grant funds will be used as follows: Renaissance Entrepreneurship Center $184,165 JobTrain, Inc $75,835 City of South San Francisco (Promotores) $10,000 Total $270,000 In no event shall the County’s fiscal obligation under this Agreement exceed $270,000. Docusign Envelope ID: 44DF649E-7DA3-4B5C-AEB5-CB4A8CC99B0F 82 Agreement No. __________ Board Resolution No. ________ Page 8 Exhibit B In accordance with the terms of this Grant Agreement, Grantee will provide, or cause to be provided the services for the Project detailed in Exhibit A and will report back to the County regarding various performance measures including, but not limited to, those noted below. Such reporting data shall be delivered to the County no later than December 31, 2025. In addition, Grantee agrees to provide descriptive information about the Project funded by the Measure K grant upon reasonable request of the County, including, but not limited to, the County Executive’s Office, the County Communications Officer, or the Supervisorial District Office. Performance Measure Target 52 Additional clients served by Renaissance Entrepreneurship Center Complete 8 New businesses created as a result of services provided by Renaissance Entrepreneurship Center Complete 20 Individuals Placed Into Full-Time Employment by JobTrain Complete 20 Individuals Served by the Promotores Program Complete Payment will be made within 30 days of receipt of an adequate invoice by the County Executive’s Office, Accounting Unit. County shall have the right to withhold payment if County determines the quantity and/or quality of the work performed is unacceptable. Grantee shall provide County with a written itemized invoice that allows the County to reconcile the work performed. Grantee shall provide a description of monthly expenses, evidence of work performed, or of costs incurred, including, but not limited to, performance measures, timesheets, activity logs, copies of bills, and/or packing slips. Indirect costs are not eligible for reimbursement under this Agreement. Grantee shall include a written certification that the costs were actually incurred for the Project and that the supporting documentation is true, correct and complete. All invoices shall include the agreement number, project location, dates of service and specified work completed. Pursuant to Section 2 of the Grant Agreement, County’s fiscal obligation shall not exceed $270,000. Remit invoices to: County Executive’s Office Molly Ortiz, Administrative Assistant II 500 County Center, 5th Floor Redwood City, CA 94063 Email: CEO_AP_Inbox@smcgov.org Phone: (650) 363-1810 Docusign Envelope ID: 44DF649E-7DA3-4B5C-AEB5-CB4A8CC99B0F 83 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-648 Agenda Date:6/25/2025 Version:1 Item #:5a. Resolution Approving a Sixth Amendment with JobTrain,Inc.for workforce development support services and a Resolution Approving a Sixth Amendment with Renaissance Entrepreneurship Center for entrepreneurship development services WHEREAS,since the EAC opened virtually in July 2021 and then opened the center in February 2022,the City appropriated $2 million in general funds in 2021,and attracted an additional $2.9 million in grant funds including $1.132 million from the United States Economic Development Administration,$1 million from the State of California,$500,000 from the United States Department of Labor,$470,000 from the County of San Mateo, $20,000 from the National League of Cities, as well as a small amount of private donations; and WHEREAS,on September 25,2024,City Council approved a resolution that authorized the City Manager to execute the Fifth Amendment to separate professional service contracts with JobTrain and Renaissance, expiring on June 30, 2025; and WHEREAS,on October 9,2024,the City Council approved Resolution 158-2024 to accept a $270,000 grant from the County of San Mateo to fund services at the EAC; and WHEREAS, $184,165 of the $270,000 was budgeted for Renaissance Entrepreneurship Center; and WHEREAS, $75,835 of the $270,000 was budgeted for JobTrain, Inc.; and WHEREAS, grant funds other than the County’s $270,000 have been expended; and WHEREAS,the funding and budget environment has substantially changed since the EAC was established in 2021; and WHEREAS,the City of South San Francisco is no longer in the position to be the primary funder of the EAC; and WHEREAS,nonprofit partners have sought-and are seeking-funds to continue providing services at the EAC; and WHEREAS,funds secured by nonprofits ensure that some services,though they may be different in scope,will continue to be provided at the EAC through May of 2028; and WHEREAS, space costs for the EAC can be paid for by the Permanent Local Housing Allocation grant. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby takes the following actions: 1.Finds and determines that the foregoing recitals are true and correct and incorporated herein as part of this Resolution; and 2.Authorizes the City Manager to negotiate and execute an amendment to the Professional Services Agreement with Renaissance Entrepreneurship Center in the amount of $184,165 to provide small business and entrepreneurship counseling and development services between July 1 and December 31, City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™84 File #:25-648 Agenda Date:6/25/2025 Version:1 Item #:5a. business and entrepreneurship counseling and development services between July 1 and December 31, 2025 or when funds are exhausted, whichever occurs first. 3.Authorizes the City Manager to negotiate and execute an amendment to the Professional Services Agreement with JobTrain,Inc.in the amount of $75,835 to provide workforce development services between July 1 and December 31, 2025 or when funds are exhausted, whichever occurs first. 4.Authorizes the City Manager to take any other related actions necessary to carry out the intent of this Resolution. 5.Authorizes the Finance Department to take any other related actions necessary to carry out the intent of this Resolution. City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™85 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-666 Agenda Date:6/25/2025 Version:1 Item #:6. Report regarding a request from Rotary Plaza,Inc.for funding to support a proposed affordable housing development,Rotary Gardens,located at 500 and 522 Linden,and adoption of a resolution committing $2,366,828 to the project.(Mike Noce, Housing Manager) RECOMMENDATION Staff recommends City Council receive a report regarding a request from Rotary Plaza,Inc.for a proposed affordable housing development at 500 and 522 Linden and consider adoption of a resolution conditionally committing $2,366,828 from the Commercial Linkage Fee Fund to bring the total funding support to $4,000,000,directing staff to negotiate loan agreements effectuating this commitment,and return to Council for final budgetary appropriations and loan approval. BACKGROUND In Summer 2023,the Rotary Club informed the City of a potential affordable housing project at the Liberty Bank site located at 500 and 522 Linden.The Rotary Club and its development partner,Beacon Development, have collaborated closely with the City to advance a two-phase development project,known as Rotary Gardens. The first phase includes an 80-unit senior affordable housing building,and the second phase consists of a 64- unit family building.Both buildings are part of the same entitlement process to ensure a cohesive vision and management approach.Each building is 6 stories and approximately 75 feet in height.52 parking spaces are proposed at 500 Linden Avenue, and 61 parking spaces are proposed at 522 Linden Avenue. On December 13,2023,the City committed $1,633,172 to the design and pre-entitlement preparations of Rotary Gardens.There were two sources used by the City to provide the funding.A portion,$556,789,came from the City’s allocation of the State-funded Permanent Local Housing Allocation (PLHA)fund.The majority of funding,$1,076,383,was approved from the City’s Fund 241,which holds developer in-lieu fees that must be spent down within four years of receipt when the City holds a surplus of over $1 million.Providing funding to affordable housing projects early in their predevelopment journey shows that the City is committed to the success of the project and provides early low-cost capital that the development team can leverage to secure additional funding for the project. The project is subject to a streamlined ministerial review process under State Assembly Bill AB 2011,and is eligible for concessions and waivers to the City’s development standards through State Density Bonus law. Ministerial review means that it is not subject to discretionary review,and thus may not be reviewed and approved by the Planning Commission and/or City Council,but rather must be reviewed and approved at the staff level.According to State Law,100%affordable housing development projects must meet all requirements under Government Code Sections 65912.111,65912.112,65912.113,and the labor standards under Sections 65912.130 -65912.131,in order to be eligible for ministerial approval under AB 2011.The City has determined that the Project complies with all such criteria and is eligible for AB 2011 ministerial review.Planning Division staff are in the process of issuing a ministerial approval and compliance letter with conditions of approval.Staff anticipate issuing the compliance letter in July 2025. Available Affordable Housing Funding The City has three main affordable housing funds:the Housing Trust Fund (Fund 205),the Low/Mod-IncomeCity of South San Francisco Printed on 6/18/2025Page 1 of 3 powered by Legistar™86 File #:25-666 Agenda Date:6/25/2025 Version:1 Item #:6. The City has three main affordable housing funds:the Housing Trust Fund (Fund 205),the Low/Mod-Income Housing Asset Fund also known as the Housing Successor Fund (Fund 241),and the Commercial Linkage Fee (Fund 823).The City also receives a formula entitlement grant from the State known as the Permanent Local Housing Allocation or PLHA,which has already been earmarked and is not listed below.The unencumbered balances of these funds, as of June 2025, are listed in Table 1. Table 1: Affordable Housing Funds Fund Balance Housing Trust Fund (Fund 205)$200,000 Low/Mod-Income Housing Asset Fund (Fund 241)$1,000,000 Commercial Linkage Fee Fund (Fund 823)$14,000,000 TOTAL HOUSING FUNDS $15,200,000 DISCUSSION Rotary and Beacon are preparing to apply for additional funding through a Notice of Funding Availability (NOFA)for the Affordable Housing Fund (AHF)from the San Mateo County Department of Housing in early July 2025,which is typically a competitive funding source.A strong contribution of local City funds allows the project team to better compete against other projects that might be in a similar phase of development. Affordable housing developers are often layering their financing proforma with funding from various sources, and securing local funds is an expected first step that allows the developer to leverage County and State dollars. The roughly $1.6 million in funding already committed by the City has benefited the Rotary Gardens project by allowing the project team to draw funds and accelerate the design and requirements for entitlement of the project.Rotary and Beacon have continued to act in good faith and are expected to complete entitlements in July 2025.The project’s location in downtown will support future residents with proximity to public transit and resources,such as schools,grocery stores,etc.The inclusion of family and senior housing will provide much- needed affordable units to a range of households throughout the South San Francisco community. Rotary Gardens will target households in extremely low and very low income categories,up to 60%of the Area Median Income for San Mateo County.With the addition of the City’s Municipal Code Chapter 8.100 Local Preferences and Requirements passed in March 2025,there is a clear goal to deliver priority preference to households that live or work within the City.The local preference helps mitigate the potential displacement impacts being faced by many community members and provides an opportunity for people working within the city to live near their workplaces, mitigating the negative environmental and traffic impacts of long commutes. A total City commitment of $4 million will show considerable local support for the project,which is a requested amount that Rotary and Beacon shared early on in discussions with the City to improve their competitiveness for additional funding.The City expects to receive a minimum of roughly $4.5 million into the Commercial Linkage Fee Fund (Fund 823)within Fiscal Years 25-26 and 26-27,which would more than offset the current increase in funding to the Rotary Gardens project.As stated previously,there is existing funding committed by the City.$556,789 is from the City’s Permanent Local Housing Allocation (PLHA)fund,and $1,076,383 is from the City’s Fund 241 for predevelopment.With City Council approval,the remaining commitment of $2,366,828 towards the project will be made once the following conditions have been fulfilled: 1.Local land use and entitlement approvals; 2.Documentation and award of County AHF Funding; and City of South San Francisco Printed on 6/18/2025Page 2 of 3 powered by Legistar™87 File #:25-666 Agenda Date:6/25/2025 Version:1 Item #:6. 3.City of South San Francisco’s receipt of City linkage fees. The actions associated with this staff report would commit funds,but staff would still need to negotiate loan agreements with Rotary and Beacon and return to Council for final approval and formal appropriation of the funds.The above-listed conditions align with the development timeline for the project and allow City Council to confirm the City is well-positioned to provide this support.Today’s actions are the first in a two-step process to make the City's commitment effective. FISCAL IMPACT There is no fiscal impact to the City’s General Fund associated with approving the proposed resolutions. Approval of the resolutions will serve to conditionally approve unencumbered affordable housing funds from the Commercial Linkage Fee Fund (Fund 823), not to exceed $2,366,828. CONCLUSION Staff recommends City Council receive a report regarding a request from Rotary Plaza,Inc.for a proposed affordable housing development at 500 and 522 Linden and consider adoption of a resolution conditionally committing $2,366,828 from the Commercial Linkage Fee Fund to bring the total funding support to $4,000,000,directing staff to negotiate loan agreements effectuating this commitment,and return to Council for final budgetary appropriations and loan approval. City of South San Francisco Printed on 6/18/2025Page 3 of 3 powered by Legistar™88 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-667 Agenda Date:6/25/2025 Version:1 Item #:6a. Resolution committing $2,366,828 in Commercial Linkage Fee Fund (Fund 823) to the Rotary Gardens affordable housing development project at 500 and 522 Linden Avenue and authorizing staff to negotiate a loan effectuating the commitment. (Mike Noce, Housing Manager) WHEREAS, the local Rotary Club and its development partner, Beacon Development, and referenced jointly as Rotary Plaza, Inc. have requested a total of $4.0 million in funding to support a two-phase affordable housing project at 500 and 522 Linden Avenue, known as Rotary Gardens; and WHEREAS, the first phase includes an 80-unit senior affordable housing building, and the second phase will include a 64-unit family building; and WHEREAS, Rotary and Beacon’s proposed project is a vital affordable housing project in the City’s development pipeline that will provide affordable housing to the community; and WHEREAS, on December 13, 2023 the City also committed $556,789 earmarked for the 80-unit senior affordable housing building as a recipient of a five-year State entitlement grant known as the Permanent Local Housing Allocation (PLHA), which the project utilized the first two years of funds, known as the 2019 and 2020 PLHA allocations; and WHEREAS, on December 13, 2023 the City committed $1,076,383 earmarked for the 64-unit family affordable housing building from the Low/Mod-Income Housing Asset Fund (Fund 241), which includes funds from the City’s former Redevelopment Agency and is regulated by State Senate Bill 341, and had an excess surplus of that had to be encumbered by Fiscal Year 2024-2025; and WHEREAS, the total combined funding provided to the Rotary Gardens project from Fund 241 and PLHA to date has been $1,633,173 and providing funding to affordable housing projects early in their predevelopment journey shows that the City is committed to the success of the project and provides early low-cost capital that the development team can leverage to secure additional funding for the project; and WHEREAS, the City wishes to commit $2,366,828 from the Commercial Linkage Fee Fund (Fund 823) to be used for both phases of the project and bring the total funding commitment to $4,000,000 for the Rotary Gardens project; and WHEREAS, the remaining commitment of $2,366,828 towards the project will be made once the following conditions have been fulfilled: 1.Local land use and entitlement approvals; 2.Documentation and award of County AHF Funding; and 3.City of South San Francisco’s receipt of City linkage fees. City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™89 File #:25-667 Agenda Date:6/25/2025 Version:1 Item #:6a. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council does hereby commit these funds, subject to the aforementioned conditions, to Rotary Plaza, Inc. for a project, Rotary Gardens, at 500 and 522 Linden Avenue, with $2,366,828 from the Commercial Linkage Fee Fund (Fund 823). City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™90 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-705 Agenda Date:6/25/2025 Version:1 Item #:7. Report regarding a resolution approving Amendment No.2 to the Professional Services Agreement with Redwood Public Law, LLP (Sharon Ranals, City Manager) RECOMMENDATION It is recommended that the City Council adopt a resolution approving Amendment No.2 to the Professional Services Agreement with Redwood Public Law, LLP. BACKGROUND/DISCUSSION The City Council is hereby requested to consider and approve Amendment No.2 to the Professional Services Agreement between the City of South San Francisco/South San Francisco Successor Agency (City)and Redwood Public Law,LLP.The proposed amendment modifies the amount paid by the City for the range of legal services included in the current Professional Services Agreement. Redwood Public Law,LLP has served as the City Attorney for the City since March 2024,with attorneys at the firm representing the City for nearly 30 years.The proposed contract amendment and proposed rate adjustments are shown in Amendment No.2 (attached to the associated resolution as Exhibit A),and would be effective July 1, 2025. The proposed hourly rate increases are in line with changes in inflation,City costs,and changes in compensation approved for City employees. Funds for the changes in rates have been included in the proposed FY2025-26 budget. CONCLUSION Approval of this resolution will amend the agreement with Redwood Public Law,LLP for City Attorney services, effective July 1, 2025. City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™91 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-706 Agenda Date:6/25/2025 Version:1 Item #:7a. Resolution approving Amendment No.2 to the Professional Services Agreement between the City of South San Francisco and Redwood Public Law, LLP WHEREAS,the City of South San Francisco and Redwood Public Law,LLP entered into a professional services agreement in March 2024; and WHEREAS,the parties desire to amend said agreement to modify the compensation provided to Redwood Public Law, LLP. NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco does hereby: 1.Approve Amendment No.2 to the Professional Services Agreement, as set forth in Exhibit A hereto; and 2.Authorize the City Manager to sign, on behalf of the City, Amendment No. 2. ***** City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™92 AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND REDWOOD PUBLIC LAW LLP WHEREAS, the City of South San Francisco (“City”) and Redwood Public Law, LLP (“Law Firm”) entered into a Professional Services Agreement in March 2024; and WHEREAS, effective December 12, 2024, the City and Law Firm agreed to a first amendment to said agreement to modify the compensation provided to Law Firm to add additional services related to labor negotiations; and WHEREAS, the City and Law Firm desire to amend said agreement to modify the compensation provided to Law Firm for basic and special legal services. Effective July 1, 2025, the City and Law Firm do hereby agree as follows: 1. Section 4 “Compensation - Basic Services” is hereby amended to read as follows: Beginning July 1, 2025, City shall compensate Law Firm for all Basic Services as described in Section 1 on an hourly basis at the rate of $338 per hour for Partners and “Of Counsel” attorneys and $299 per hour for Associate attorneys. Beginning July 1, 2025, in addition to Basic Services compensation, Law Firm shall also be paid for: 1) successor agency services or redevelopment legal services at the rate of $372 per hour for Partners and “Of Counsel” attorneys and $299 per hour for Associate attorneys; 2) enterprise fund matters (e.g., Sewer, Storm water and Solid Waste) at the rate of $403 per hour for Partner and “Of Counsel” attorneys, $372 per hour for Senior Associate attorneys, and $318 per hour for Junior Associate attorneys; 3) labor and employment matters at the rate of $386 per hour for Senior Partner attorneys, $380 per hour for Junior Partner attorneys, $375 per hour for Senior Of Counsel attorneys, $370 per hour for Of Counsel attorneys, $358 per hour for Senior Associate attorneys, and $342 per hour for Associate attorneys; 4) labor negotiations matters at the rate of $446 per hour of Partner and “Of Counsel” attorneys, $368 per hour for Associate attorneys, and $247 per hour for paralegals; and 5) cost recovery matters involving land use entitlements at the rate of $465 per hour for Senior Partner attorneys, $403 per hour for Junior Partner and Of Counsel attorneys, $372 per hour for Senior Associate attorneys, and $318 per hour for Junior Associate attorneys, and $191 per hour for paralegals, with the City’s costs reimbursed by the development applicant. 2. The first sentence of Section 5 “Compensation – Special Services” is hereby amended to read as follows: Beginning July 1, 2025, City shall compensate Law Firm for all Special Services as described in Section 2 hereof on an hourly basis at the rate of $473 per hour for Senior Partners, $417 per hour for Junior Partners and Of Counsel attorneys, $356 per hour for 93 Associate attorneys, and $191 per hour for paralegals, except that City shall compensate Law Firm for bond counsel services described in Section 2(g) at the standard market rates for bond counsel at bond closing. Except as expressly provided herein, all other terms and conditions of the Professional Services Agreement between the City and Law Firm shall remain in full force and effect Date: City of South San Francisco, a Municipal Corporation of the State of California and South San Francisco Successor Agency By: Sharon Ranals, City Manager Attest: City Clerk Redwood Public Law, LLP By: Sky Woodruff, Partner 94 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. Report regarding consideration of Genentech’s acquisition of certain public rights-of-way within the Genentech Campus,proposed rezoning of private properties to be added to the Genentech Master Plan District,associated amendments to the General Plan,Genentech Campus Master Plan,and Zoning Map and finding that the 2025 Addendum is the appropriate environmental document for the Project,per CEQA Guidelines Section 15162 (Billy Gross, Principal Planner). RECOMMENDATION Staff recommends that the City Council conduct a public hearing,follow the recommendation of the Planning Commission and take the following actions: 1.Adopt a resolution making findings and a determination that,based on the 2025 Addendum,the project is consistent with the adopted Genentech Master Plan Environmental Impact Report and the adopted SSF 2040 General Plan Update,Zoning Code Amendments,and Climate Action Plan Environmental Impact Report,and approval of the project would not necessitate the need for preparing a subsequent environmental document pursuant to the criteria of CEQA Guidelines Section 15162. 2.Adopt a resolution making findings and approving the street vacations of certain public rights-of-way commonly known as DNA Way,Cabot Road,and Point San Bruno Boulevard located entirely within the Genentech Campus. 3.Adopt a resolution approving the sale of DNA Way,Point San Bruno Boulevard and a portion of Cabot Road to Genentech in the sum of $25,000,000 and associated Purchase and Sale Agreement memorializing such sale and authorizing the City Manager to execute the Purchase and Sale Agreement. 4.Waive reading and introduce an Ordinance amending the South San Francisco Zoning Map to include additional properties within the Genentech Master Plan District. 5.Adopt a resolution making findings and approving a General Plan Amendment and Genentech Campus Master Plan Amendment. EXECUTIVE SUMMARY Genentech established its headquarters in South San Francisco in 1978,starting in a warehouse building at the easterly point of the East of 101 subarea amid meat packing plants,old steel mills,truck depots,and other industrial uses.Genentech quickly grew over the next two decades,expanding to 3,000 employees over a 72- acre campus by 1995,when the City adopted the first Genentech Corporate Facilities Master Plan.Significant growth continued in both the land area and number of employees as the City adopted subsequent master plans in 2007,2013,and 2020.The Genentech Campus currently includes approximately 12,000 employees within 4.5 million square feet of building area spread over 207 acres. City of South San Francisco Printed on 6/18/2025Page 1 of 13 powered by Legistar™95 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. The current 2020 Genentech Campus Master Plan (2020 Master Plan)articulates a vision for new growth and development within the campus,establishing facility-wide development standards,with a maximum floor area ratio (FAR)of 1.0 times the total area of all lots within the Master Plan,providing for a buildout potential of just over 9 million square feet.The 2020 Master Plan also includes goals and objectives related to creating a strong campus-centered environment. Subsequent to adoption of the 2020 Master Plan,Genentech has acquired additional private properties within the campus boundaries.With these private property acquisitions,all properties within the Genentech Campus boundaries (with the exception of the Wind Harp Park and the CalWater parcel)are now owned or controlled by Genentech. There are currently three public roads located within the Genentech Campus boundaries:DNA Way,Point San Bruno Boulevard,and a one-block segment of Cabot Road (between Allerton Avenue and DNA Way).Recent traffic counts completed in 2024 within the Genentech Campus indicate that DNA Way handled between 2,500- 3,500 trips per weekday.Of these trips,approximately 95 percent started or ended within the Genentech Campus,with the remaining 5 percent (about 180 trips on a typical weekday)passing through the Campus to somewhere else.Some proportion of this pass-through travel is still associated with Genentech operations,such as gRide buses,security vehicles,and deliveries.Based on this,it is assumed that approximately 97-98 percent of trips on DNA Way are Genentech-related,with the total volume of non-Genentech trips likely between 60- 120 trips per day.With the recent acquisition of the three private properties,these three public roads have essentially become internal roads for the Genentech Campus. Based on this data and Genentech’s efforts to create a stronger campus environment,Genentech has requested to acquire these three street rights-of-way for a sum of $25,000,000;if such a sale were approved by the City Council,DNA Way,Point San Bruno Blvd,and the short segment of Cabot Road would become private streets that are owned and maintained by Genentech.The sale would be used to facilitate a substantial redevelopment of Genentech’s upper campus and provide some security control over the area.While the City would vacate ownership of all roads and no longer be responsible for maintenance,there would be a license agreement between the City and Genentech to permit public access,utility access,and maintenance,as well as emergency vehicle access.Any future closures to public access would be considered as part of a future development application to the City,and depending on the subject segment,would require future appraisal and a supplemental payment to the City.The segment providing access to the Wind Harp is not eligible for future closure to public access and the license agreement for that segment would remain in place permanently. Figure 1: Roadway Segment Transaction City of South San Francisco Printed on 6/18/2025Page 2 of 13 powered by Legistar™96 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. Genentech has also submitted an entitlement application to incorporate the additional private properties and the three public rights-of-way proposed for acquisition within the Genentech Master Plan,and rezoning the private properties from Business Technology Park -Medium (BTP-M)to Genentech Master Plan District (GMP).The entitlement application also requests associated amendments to the General Plan and Genentech Master Plan. PROJECT OVERVIEW AND BACKGROUND 2020 Genentech Campus Master Plan The Genentech Campus is located within the City’s East of 101 subarea,currently comprising approximately 4.5 million square feet of building area spread over 207 acres,with approximately 12,000 employees across a wide range of business functions. The Genentech Campus is primarily regulated by the Genentech Campus Master Plan,which was most recently updated in 2020 (2020 Master Plan).The 2020 Master Plan articulates the vision for new growth and development within the campus over the next 20 or more years.Because of this long-term nature,the 2020 Master Plan establishes an overall development envelope in which Genentech can increase building density while providing flexibility in the mix of use types (office,lab/research and development,manufacturing,and amenity)to be built over time.The campus wide maximum FAR is 1.0,providing for a buildout potential of just over 9 million square feet,essentially doubling the existing building area within the campus.The 2020 Master Plan seeks to limit the amount of additional traffic generated by any additional growth by implementing City of South San Francisco Printed on 6/18/2025Page 3 of 13 powered by Legistar™97 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. Master Plan seeks to limit the amount of additional traffic generated by any additional growth by implementing an aggressive TDM goal for a 50 percent reduction in single-occupant vehicles and a Trip Cap for the campus. The 2020 Master Plan also highlights goals and objectives related to creating a strong campus-centered environment,including establishing places that prioritize people over cars and incorporating outdoor spaces for daily and/or special events.The 2020 Master Plan includes the consideration of a shared-street concept whereby DNA Way is scheduled for partial closure to general vehicle traffic during specified times of the day (such as between the morning and afternoon peak traffic hours)and opened as a pedestrian-only environment with accommodations for emergency vehicles and shuttle and bus access. Proposed 2025 Genentech Master Plan Amendments Project Incorporation of New Private Parcels within the Genentech Master Plan District Subsequent to adoption of the 2020 Master Plan,Genentech has acquired or is long-term leasing three additional private properties within the campus boundaries: 1.333 Point San Bruno Boulevard,owned by Genentech.Comprised of APN 015-250-410,consisting of approximately 0.5 acres,and APN 015-250-140,consisting of approximately 1.4 acres (previously known as the Lithotype property). 2.525 DNA Way (APN 015-250-210),owned by Genentech.Approximately 3.1 acres,previously known as the Bakery Institute.This does not include the short public easement connecting DNA Way to the Wind Harp Park site, which remains as a public access easement. 3.383-393 East Grand Avenue (APN 015-250-390),under long-term lease by Genentech,with intent to acquire. Approximately 4.7 acres, known as the Dome Construction site. With the acquisition of these three properties,all private property within the Genentech Campus boundaries other than Wind Harp Park and the CalWater parcel are now owned or controlled by Genentech. Incorporation of Roadways within the Genentech Master Plan District Traffic counts were collected in 2024 on DNA Way near Genentech’s Building 34 (located in the Upper Campus) and on Point San Bruno Blvd. This analysis found the following: ·DNA Way serves about 2,500 to 3,500 vehicles on weekdays and fewer than 600 vehicles on weekend days.These traffic volumes are much smaller than East Grand Ave.and Oyster Point Blvd.,which typically serve over 20,000 vehicles per day. ·Point San Bruno Blvd.,which is accessed from DNA Way,serves about 2,200 to 2,600 vehicles on weekdays and approximately 300 to 400 vehicles on weekend days.The majority of the weekday trips were accessing Parking Structure 2 and adjacent surface parking lots. Of the current trips on DNA Way,approximately 95 percent start or end within the Genentech Campus,and approximately 5 percent (about 180 trips on a typical weekday)pass through the Campus to somewhere else. Some proportion of this pass-through travel is still associated with Genentech operations,including gRide City of South San Francisco Printed on 6/18/2025Page 4 of 13 powered by Legistar™98 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. Some proportion of this pass-through travel is still associated with Genentech operations,including gRide buses,security vehicles,carpools,vanpools,ride-hailing services,intra-campus freight,and deliveries.It is assumed that the total volume of non-Genentech trips on DNA Way is likely between 60-120 trips per day. Based on the above data,DNA Way,Point San Bruno Boulevard,and the short segment of Cabot Road are essentially operating as internal roads within the Genentech Campus.In exchange for financial compensation to the City,Genentech is requesting acquisition of the rights-of-way and that the City vacate these streets as public roadways.The segments of existing roadways identified for acquisition and street vacation include the following: 1.Approximately 4,930 linear feet of the DNA Way right-of way from East Grand Avenue to Forbes Boulevard (approximately 6.78 acres at a 60-foot right-of-way width); 2.Approximately 720 linear feet of the Point San Bruno Boulevard right-of way from DNA Way to its cul- de-sac terminus (approximately 1.1 acres at a 66-foot right-of-way width); and, 3.Approximately 512 linear feet of the Cabot Road right-of way from Allerton to DNA Way (approximately 0.67 acres at a 57-foot right-of-way width) The purchase and sale agreement for the roadways includes a requirement that the parties enter into a maintenance and license agreement as a condition of closing.The maintenance and license agreement will preserve public access on the rights-of-way in the near term and provide for a future appraisal and supplemental payment for terminating public access to the Blue and Pink segments (illustrated in Figure 1).The maintenance and license agreement will also provide utility and emergency vehicle access,as well as outline Genentech’s ongoing maintenance obligations for the roads.Prior to Genentech closing any portion of the rights-of-way to public access,Genentech will have to show how emergency access will continue to be accommodated.In all scenarios,public access on DNA Way will remain available from East Grand Avenue to the Wind Harp Park parcel.Genentech will also acquire all street improvements and pay all maintenance costs moving forward.The City will retain ownership of storm drain and sewer infrastructure pursuant to a public utilities easement.The obligations related to conducting a future appraisal and making supplemental payments prior to terminating public access to the Blue and Pink segments as part of any future redevelopment are also memorialized in the Purchase and Sale Agreement and Amendments to the Master Plan to ensure that these obligations are incorporated into any consideration and approval of future development applications. The following amenities will remain open and accessible to the public permanently after conveyance: ·Wind Harp Park.DNA Way will remain available for public access from East Grand Avenue to the Wind Harp Park parcel. ·San Francisco Bay Trail and associated open space.The segment of the San Francisco Bay Trail along the eastern edge of the Campus’waterfront will remain available for public access.The small parking lot at the end of Forbes Boulevard near DNA Way would continue to allow vehicle access via Forbes Boulevard,while bicycle access would be maintained via Forbes Boulevard and the parallel trail through the Campus.The publicly accessible Bay Trail parking at the end of East Grand Avenue would City of South San Francisco Printed on 6/18/2025Page 5 of 13 powered by Legistar™99 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. be unaffected. Total Allowed Development Capacity within the Genentech Master Plan The combined total area of acquired properties and street rights-of-way is approximately 18.3 acres,which Genentech is requesting be added to the Genentech Master Plan and rezoned to the Genentech Master Plan District.With the addition of these properties and rights-of-way to the Campus Master Plan Area,the total Campus acreage will increase from 207 acres to approximately 225 acres. In accordance with the 2020 Master Plan,Zoning Ordinance Chapter 20.360 (Genentech Master Plan District) establishes general development principles and standards for the campus.The Genentech Master Plan District includes the following subsection related to allowed development capacity within the district: Subsection 20.360.003.J.Growth and Development Projections.Consistent with the projections analyzed in the Environmental Impact Report for Genentech Campus Master Plan Update,development within the approximately 207-acre Campus shall be limited to 9,008,000 square feet (an FAR of 1.0)and shall be further regulated by a Trip Cap equivalent to a maximum of 5,216 total drive-alone trips arriving at the Campus during the a.m.peak hour.This Trip Cap applies irrespective of the amount of net new development,the mix and types of land uses that occur within the Campus over time,or the effectiveness of TDM and other trip reduction efforts.The Trip Cap is a maximum,not-to-exceed number of potential drive- alone vehicle trips,and will be counted annually via cordon count records along the main ingress and access points to the Campus. The additional acreage could allow Genentech to increase the overall built area within the campus.However, Genentech does not propose to increase the potential buildout and development capacity of the Campus beyond the 9,008,000 square feet as approved in the 2020 Master Plan. ENTITLEMENTS APPLICATION The 2025 Genentech Master Plan Amendments project is seeking the following entitlements,all discussed in detail in the following sections: ·Approval of street vacations of DNA Way,Point San Bruno Blvd.,and Cabot Road within the Genentech Campus Master Plan boundaries,and approving the sale of the street rights-of-way to Genentech in the sum of $25,000,000, executed via a purchase and sale agreement. ·Genentech Master Plan Amendments to incorporate the new private parcels and to reflect the ability to close the roadways to public-through traffic at some point in the future in accordance with the future appraisal and supplemental payment obligations as applicable. ·General Plan Amendments to ensure internal consistency between the Genentech Master Plan and the General Plan,which include changes to the designation of DNA Way in General Plan Mobility and Access Element Figure 14 (Roadway Network Diagram)and Figure 16 (Truck Network and Restrictions Diagram). ·Zoning Map Amendments to add the three new private properties and the vacated streets to the City of South San Francisco Printed on 6/18/2025Page 6 of 13 powered by Legistar™100 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. ·Zoning Map Amendments to add the three new private properties and the vacated streets to the Genentech Master Plan District zoning. ·General Plan Conformity finding for Genentech’s acquisition of certain public rights-of-way within the Genentech Campus. ·Approval of an Addendum to the 2020 Master Plan EIR and 2040 SSF General Plan Update EIR. Purchase and Sale Agreement A Purchase and Sale Agreement (PSA)is required to effectuate the sale of the public right-of-way to Genentech. The negotiated price and terms are as follows: Price: $25,000,000 initially based on the following values: ·$20 million for the Orange Section (see Figure 1 in Executive Summary)based on 1.34 acres at $14.8 million per acre.This price per acre was based on a valuation commissioned by the City for an undeveloped acre of land suitable for life science development that Healthpeak,a local life science developer,conveyed to the City as a community benefit.That valuation identified comparable life science land sales ranging from $7.2 million per acre to $15.7 million per acre and made a final conclusion that the acre conveyed to the City was valued at $14.8 million.This transaction concluded as price negotiations on the sale of DNA Way were commencing and was therefore used to determine the value of the Orange Section - the portion Genentech intends to close and redevelop in the short term. o Genentech would be able to close that portion of the street to public vehicles as early as 2026,as part of an application to redevelop. o Accessible to Genentech employees and guests only. ·$5 million for the Green,Blue,and Pink Sections (see Figure 1 in Executive Summary)based on value as roadways.This value was based on appraisal conducted by Genentech,as well as recent roadway appraisals commissioned by the City. o The 4.29 acre Green Section remains as a street accessible to Genentech employees and the public. o The 2.16 acre Pink and 0.75 acre Blue Sections remain as streets accessible to the public until at least December 31,2030.Beyond 2030,they could be potentially redeveloped as open space and/or building(s). o If,in the future,Genentech seeks to develop any portion of the Pink and Blue Sections and close the roadways to public use,Genentech will pay an additional fee representing the Fair Market Value of the land if used for the intended use after a mutually agreed upon appraisal process.The Fair Market Value payment shall be no less than $14.8 million per acre. Reserved License:Prior to closing of the conveyance under the Purchase and Sale Agreement,City and Genentech shall execute a maintenance and license agreement which provides a license in favor of the City for ingress,egress,utility,and ancillary purposes over the Orange,Green,Blue,and Pink Sections which reserved rights shall consist of surface rights in favor of the City and the general public.Further,the maintenance and City of South San Francisco Printed on 6/18/2025Page 7 of 13 powered by Legistar™101 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. rights shall consist of surface rights in favor of the City and the general public.Further,the maintenance and license agreement shall outline Genentech’s ongoing maintenance obligations for the acquired property and provide reimbursement to the City for performing Genentech’s maintenance obligations for an initial 5-year period.City will be granted public utility easements to access any City-owned infrastructure and utilities that remain in the roadways after conveyance. Amendments to the Genentech Master Plan As discussed above,the 2020 Master Plan includes the consideration of a shared-street concept whereby DNA Way is scheduled for partial closure to general vehicle traffic during specified times of the day (such as between the morning and afternoon peak traffic hours)and opened as a pedestrian-only environment with accommodations for emergency vehicles and shuttle and bus access.Based on Genentech’s subsequent property acquisitions and proposal to acquire the public streets internal to the campus boundaries,Genentech is proposing amendments to the 2020 Master Plan to reflect these changes.The proposed amendments are located within Chapter 3:Urban Design and Chapter 4:Transportation,Circulation,and Parking,as well as figures throughout the document. The proposed amendments are detailed in Exhibit A of the Associated Amendments Resolution.The obligations related to conducting a future appraisal and making supplemental payments prior to terminating public access to the Blue and Pink segments as part of any future redevelopment are also memorialized in the Amendments to the Master Plan to ensure that these obligations are incorporated into any consideration and approval of future development applications. General Plan Amendments Genentech has applied for a General Plan Amendment to ensure consistency with the amended Genentech Master Plan, with the following minor changes to figures in the General Plan Mobility and Access Element: ·Figure 14:Roadway Network Diagram.Remove the “Existing Connector”designation for DNA Way and Point San Bruno Blvd.Remove the “Existing Neighborhood”designation for Cabot Road within the Genentech campus boundaries. ·Figure 16:Truck Network and Restrictions Diagram.Remove the “Truck Route”designation for DNA Way and Point San Bruno Blvd. With these requested amendments,the General Plan and the Genentech Master Plan will be consistent with one another. The revisions to the General Plan are detailed in Exhibit B of the Associated Amendments Resolution. Zoning Map Amendments The Zoning Map amendment proposes to rezone the three private parcels from Business Technology Park - Medium (BTP-M)to Genentech Master Plan District (GMP).The amendment would also zone the vacated streets as GMP;currently,the streets have no zoning designation because they are public rights-of-way.The revisions to the Zoning Map are detailed in Exhibit A of the Zoning Map Amendments Ordinance. City of South San Francisco Printed on 6/18/2025Page 8 of 13 powered by Legistar™102 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. General Plan Conformance In accordance with the provisions of State Planning Law (Govt.Code Section 65402),the Planning Commission at its May 15,2025 meeting determined that the sale of real property by the City and the vacation of public streets conforms with the adopted General Plan, as discussed below. The General Plan Land Use designation for the overall Genentech campus is Business Technology Park.This designation allows for campus-like environments for corporate headquarters,research and development facilities,and offices.The allowed floor area ratio for this designation ranges from 0.5 up to 1.0 with community benefits. The General Plan contains overarching goals and related policy direction relevant to the sale and vacation of the subject parcels, including: ·Land Use Element Goal LU-5:SSF remains a hub of R&D employment,operations,and innovation and is home to the largest worldwide cluster of life science uses. o Policy LU-5.5:Improve connectivity for R&D workforces.Maintain vehicular infrastructure and improve circulation to accommodate the travel demand of existing and future workplaces. o Policy LU-5.7: Collaboration with property owners. ·Land Use Subareas Element Goal SA-19:Vehicle trips are minimized through parking requirements, Transportation Demand Management, and alternative travel modes. ·Prosperous Economy Element Goal PE-1:South San Francisco remains a premier location for biotechnology and related industries. ·Mobility and Access Element Goal MOB-1:South San Francisco prioritizes safety in all aspects of transportation planning and engineering. The proposed sale of the road rights-of-way would have two main benefits:(1)Genentech would be able to execute their Master Plan vision for a coordinated and connected upper campus that is entirely pedestrian- oriented AND capitalize on parent company Roche investment in their future expansion ENVIRONMENTAL REVIEW In 2020,the City Council certified an Environmental Impact Report (EIR)for the Genentech Master Plan (Master Plan EIR),which evaluated the potential impacts of the proposed growth and additional employees identified in the 2020 Master Plan.In 2022,the City Council certified an EIR for the South San Francisco 2040 General Plan Update,Zoning Code Amendments and Climate Action Plan (2040 GP EIR),which evaluated the potential impacts and additional growth envisioned in the General Plan Update.Together,these two documents are referred to as the Prior EIRs. As part of this Project,an Addendum to the Prior EIRs was prepared to evaluate Genentech’s proposed acquisition of certain public rights-of-way within the Genentech Campus and Genentech’s proposed rezoning of properties to the Genentech Master Plan Zoning District.The primary conclusions of the Addendum are as City of South San Francisco Printed on 6/18/2025Page 9 of 13 powered by Legistar™103 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. of properties to the Genentech Master Plan Zoning District.The primary conclusions of the Addendum are as follows: ·The Project does not include any proposal for new Campus development,physical street removal,or reconstruction within the Genentech Campus.Accordingly,the Project would have no construction- related environmental impacts. ·The Project does not include any proposal for new Genentech operations.If the proposed rights-of-way acquisitions by Genentech are approved,these streets will remain open to the public in the near term but as private streets rather than public streets,and Genentech will have the right to close these streets to public through traffic as part of future redevelopment approved by the City,provided that Genentech maintains public access to the Wind Harp. ·No new development,redevelopment,or reuse of the six new properties proposed to be added to the Campus is currently proposed, and the Project would have no operations-related environmental impacts. ·Although the Project would increase the acreage of properties within the Genentech Campus,Genentech is not requesting an increase in the potential Campus buildout beyond the 9 million square feet assumed in the 2020 Master Plan (which is based on an FAR of 1.0 times the overall Campus acreage). Accordingly,the Project would have no new or potentially more severe cumulative environmental impacts than previously disclosed in the prior 2020 Genentech Campus Master Plan EIR. ·The Project does not include any proposal for immediate closure of DNA Way,Point San Bruno Boulevard,or the short segment of Cabot Road to public through travel.The Project does create the potential that Genentech may decide to close Point San Bruno Boulevard and the short segment of Cabot Road,and the portion of DNA Way east of Wind Harp (hereafter referred to as partial closure of DNA Way)to through traffic as part of future redevelopment,as indicated in the 2020 Genentech Campus Master Plan.Although no street closures are included as part of the current Project,the possibility of these street/partial street closures has been analyzed.The conclusion of this analysis is that the potential for future closure/partial closure of these streets would have no new or more severe environmental impacts than those previously disclosed in the prior Genentech Campus Master Plan EIR. Based on these conclusions,an Addendum to the Prior EIRs is the appropriate CEQA documentation necessary for the project as the project would not cause any new or substantially more significant environmental impacts. AIRPORT LAND USE COMMISSION The Genentech Campus is located approximately 1 mile north of the San Francisco Airport (SFO)and is located within the Airport Influence Area B,the “Project Referral”area.California Government Code Section 65302.3 states that a local agency General Plan,Zoning Ordinance,and/or any affected specific plan must be consistent with the applicable airport/land use criteria in the relevant adopted Airport Land Use Compatibility Plan (ALUCP).Because the 2025 Genentech Master Plan Amendments project includes amendments to the General Plan,Zoning Ordinance,and the Genentech Campus Master Plan,the proposed amendments were required to be reviewed by the Airport Land Use Committee (ALUC) for consistency with the ALUCP. The ALUC reviewed the project in June 2025.Because the project does not propose any more developmentCity of South San Francisco Printed on 6/18/2025Page 10 of 13 powered by Legistar™104 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. The ALUC reviewed the project in June 2025.Because the project does not propose any more development than proposed in the 2020 Genentech Master Plan or 2040 General Plan,the ALUC found that the project is consistent with all airport /land use compatibility policies and criteria in the ALUCP.The ALUC resolutions are attached to this staff report (Attachment 5). PLANNING COMMISSION RECOMMENDATION The Planning Commission reviewed this project at their May 15,2025 meeting.During discussion of the project, the Commissioners had the following comments and questions: ·Would the City be setting a precedent by selling public roads to a private entity?Staff pointed out that Genentech is a unique owner and entity in South San Francisco;their campus encompasses over 200 acres,and the public roads in question are completely within the Genentech campus boundary and used almost exclusively by Genentech employees and visitors.No similar conditions currently exist with the City. ·How would the vacated roads be assessed for tax purposes?Staff discussed this question with the Office of the San Mateo County Assessor to discuss this item in more detail and will provide an update at the City Council public hearing. ·How much money would the City be saving by divesting in these three public roads?According to information provided by the Public Works Department,the City would save approximately $40,000 annually in staffing costs for maintenance work completed along the vacated rights-of-way. The Planning Commission unanimously supported the project,and recommended approval to the City Council with a vote of 5-0.As part of its review,the Planning Commission also made a determination of General Plan Conformance,per State Code 65402.(Planning Commission Resolutions are included in Attachment 2 to this staff report.) FISCAL IMPACT The City will receive at least $25 million for the sale of the public roads to Genentech.In the future,this amount could increase depending on the ultimate use of the vacated rights-of-way. The proceeds from the sale of this property represent a one-time benefit to the City,as opposed to an ongoing source of revenue that could be utilized for permanent programs or operations.Staff recommend that these funds be utilized for an appropriate or critical one-time capital project or other purpose to be identified by the City Council.Staff will return at a future date with an analysis of preliminary options and seeking City Council action. CONCLUSION Staff recommends that the City Council follow the Planning Commission’s recommendations and take the City of South San Francisco Printed on 6/18/2025Page 11 of 13 powered by Legistar™105 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. following actions: 1.Adopt a resolution making findings and a determination that,based on the 2025 Addendum,the project is consistent with the adopted Genentech Master Plan Environmental Impact Report and the adopted SSF 2040 General Plan Update,Zoning Code Amendments,and Climate Action Plan Environmental Impact Report,and approval of the project would not necessitate the need for preparing a subsequent environmental document pursuant to the criteria of CEQA Guidelines Section 15162. 2.Adopt a resolution making findings and approving the street vacations of certain public rights-of-way commonly known as DNA Way,Cabot Road,and Point San Bruno Boulevard located entirely within the Genentech Campus. 3.Adopt a resolution approving the sale of DNA Way,Point San Bruno Boulevard,and a portion of Cabot Road to Genentech in the sum of $25,000,000 and associated Purchase and Sale Agreement memorializing such sale and authorizing the City Manager to execute the Purchase and Sale Agreement. 4.Waive reading and introduce an Ordinance amending the South San Francisco Zoning Map to include additional properties within the Genentech Master Plan District. 5.Adopt a resolution making findings and approving a General Plan Amendment and Genentech Campus Master Plan Amendment. Attachments: 1.Genentech Project Description 2.Planning Commission Minutes 3.Planning Commission Resolutions 4.Planning Commission Comment Letters 5.San Mateo County Airport Land Use Commission Resolutions 6.Staff Presentation Associated Files and Exhibits 1.CEQA Resolution (25-398) a.Exhibit A: 2025 Addendum b.Exhibit B: Genentech 2020 Master Plan Update EIR (via link) c.Exhibit C: SSF 2040 General Plan Update EIR (via link) 2.Vacation Resolution (25-644) a.Exhibit A - Map of Right-of-Way Proposed for Vacation i.Exhibit A-1 - Description of Vacation Area #1 ii.Exhibit A-2 - Description of Vacation Area #3 iii.Exhibit A-3 - Description of Vacation Area #4 iv.Exhibit A-4 - Description of Vacation Area #2 b.Exhibit B - Conditions Required to be Satisfied Before Right-of-Way Vacation Occurs 3.Purchase and Sale Agreement Resolution (25-399) a.Draft Purchase and Sale Agreement City of South San Francisco Printed on 6/18/2025Page 12 of 13 powered by Legistar™106 File #:25-397 Agenda Date:6/25/2025 Version:1 Item #:8. b.Draft Maintenance and Public Access License Agreement 4.Zoning Map Amendment Ordinance (25-400) a.Exhibit A: Zoning Map Amendments 5.Amendments to Master Plan and General Plan Resolution (25-401) a.Exhibit A: Genentech Campus Master Plan Amendments b.Exhibit B: General Plan Amendments City of South San Francisco Printed on 6/18/2025Page 13 of 13 powered by Legistar™107 South San Francisco Planning Application: Genentech Master Plan Update (Rezoning and General Plan Amendment) Project Description Introduction Since it was founded in 1976, Genentech has served as the biotechnology anchor of South San Francisco. With approximately 9,000 employees working in South San Francisco, Genentech is also the City's largest employer. The company's facility growth and development in South San Francisco is guided by its 2020 Genentech Campus Master Plan and associated Development Agreement. Genentech continues to meet or exceed its Master Plan obligations. Over the last decade, Genentech has invested approximately $5 billion in its South San Francisco campus in both infrastructure and capital projects and contributed significant community benefits to the City of South San Francisco through its Development Agreement obligations. The Master Plan continues to provide a useful framework for Genentech's growth, but planning would be better integrated with the addition of properties owned or used by Genentech under long-term lease. Recent and anticipated property acquisitions by Genentech necessitate rezoning at this time, as the South San Francisco Zoning Code, containing provisions for the Genentech Master Plan overlay district, anticipates the rezoning of properties that are subsequently purchased or leased by Genentech. Additionally, conforming changes to the General Plan and Master Plan are proposed in order to provide consistency between all relevant planning documents. 2025 General Plan Amendment, Master Plan Amendment and Rezoning Request The following properties are proposed to be added to the Master Plan and rezoned to the Genentech Master Plan District: ● Owned: ○ The property located at 333 Point San Bruno Boulevard, APN 015-250-410, consisting of approximately 0.5 acres and APN 015-250-140, consisting of approximately 1.4 acres. ○ The property located at 525 DNA Way, APN 015-250-210, consisting of approximately 3.1 acres. ● Future Ownership/Current Long-term Lease: ○ The property located at 383-393 East Grand Avenue, APN 015-250-390, consisting of approximately 4.7 acres. ● Street Vacation ○ The segments of existing roadways identified for street vacation, including approximately 1,238 linear feet or roadways, consisting of approximately 8.55 acres as shown in Figure 1 below. 108 This application does not include any new development or construction. The existing buildings on properties that are being rezoned into the Master Plan may be repurposed for Genentech’s use, but no redevelopment of these properties is currently proposed. Similarly, Genentech does not have any pending project applications for new development involving any of the rights-of-way of the proposed street acquisitions. Pursuant to this Project, the existing streets at DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road will remain, but as private streets primarily serving the Genentech Campus. Genentech is not currently proposing removal or closure of these streets for public travel, but approval of the requested street vacation would give Genentech the right to close these streets at Genentech’s discretion (while maintaining public access to the Wind Harp). The Genentech Master Plan requires that the following provisions be met for the addition of property to the Genentech Master Plan zoning district (page 148 of the 2020 Master Plan): ● The acreage of any new property added to the Campus shall be aggregated with the approximately 207 acres of existing Campus properties, and shall contribute to the overall Campus FAR of 1.0. ● The AM peak hour vehicle trips attributed to any existing use of property added to the Genentech Campus shall be added to the Trip Cap, but any future redevelopment that generates an increase in vehicle trips shall be subject to the Trip Cap total of this Master Plan Update (i.e., no net increase in AM peak hour vehicle trips). ● New properties added to the Genentech Campus shall be subject to the TDM goals and requirements of this Master Plan Update. ● Parking requirements that apply to any new properties added to the Genentech Campus shall conform to the parking rates of this Master Plan Update, based on the TDM rates effective at the time the property is added. Parking requirements attributable to new Campus properties may be met at off-site parking facilities within the Genentech Campus. ● All other provisions of the Genentech Master Plan zoning district shall apply to any new property added to the Campus. With the addition of these properties to the Campus Master Plan Area, the total Campus acreage will increase from 207 acres to 225.25 acres. While the addition of these properties would increase the baseline of existing development included within the Master Plan District, Genentech is not requesting an increase in the potential buildout beyond the 9 million square feet assumed in the 2020 Master Plan. As stated on page 118 of the 2020 Campus Master Plan: “...within the approximately 207-acre Campus shall be limited to 9,008,000 square feet (a FAR of 1.0), and shall be further regulated by a Trip Cap equivalent to a maximum of 5,216 total drive-alone trips arriving at the Campus during the AM peak hour”. While the proposed rezone would increase the total campus acreage to 225.25 (resulting in a corresponding 422,530 square feet of development potential at an FAR of 1.0), Genentech does not propose to increase the potential buildout and development capacity beyond the 9,008,000 square feet approved in the 2020 Master Plan. Further, the additional sites will be subject to the TDM goals for the Campus as well as comply with all parking and other provisions of the Genentech Master Plan zoning district listed above. The proposed rezoning is consistent with all applicable 109 provisions for adding parcels to the Master Plan (see above excerpt of page 148 of the Master Plan). Conforming changes will need to be made throughout the General Plan and Master Plan to reflect the new properties and baseline conditions. Proposed General Plan Amendments are outlined in Exhibit A and the proposed Master Plan Amendments are outlined in Exhibit B. Genentech's MEIR, which was updated and certified in November 2020, will not be affected by these administrative Master Plan updates. Attached to this application is a letter from the property owner of 383-393 East Grand Avenue (East Grand Avenue, LLC) authorizing the filing of this planning application. Environmental Assessment The City of South San Francisco certified the Genentech Campus Master Plan EIR (SCH #2017052064) on November 24, 2020 (Resolution 20-672). The 2020 Master Plan EIR evaluated Genentech's vision for new growth and development within the 207-acre Genentech Campus, including all environmental impacts associated with the overall buildout of approximately 9 million square feet within the Campus Master Plan Area. The proposed actions do not increase the potential buildout; rather, it adds new land area to the Master Plan area while maintaining the 9 million square foot building envelope that was approved by the City in the 2020 Campus Master Plan update. The proposed actions are consistent with the development program established in the 2020 Genentech Master Plan, which was accompanied by the 2020 Genentech Campus Master Plan EIR. Please refer to Exhibit C for a complete Environmental Analysis for the proposed action. 110 Figure 1: Street Vacation Segments and Measurements 111 Figure 2: Sites to be rezoned to Genentech Master Plan zoning 112 113 114 115 116 City of South San Francisco Resolution 7-2025 P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-395 Agenda Date:5/15/2025 Version:1 Item #:4a Resolution making findings and recommending that the City Council determine that City’s conveyance of certain public rights-of-way (DNA Way, Point San Bruno Boulevard and Cabot Road) within the Genentech Campus Master Plan boundaries, proposed rezoning of private properties to be added to the Genentech Master Plan District, and its associated amendments to the General Plan, Genentech Master Plan and Zoning Map are fully within the scope of environmental analysis in the certified Genentech 2020 Master Plan Environmental Impact Report and the certified SSF 2040 General Plan Environmental Impact Report and that the 2025 Addendum to the prior EIRs is the appropriate environmental document for the Project. WHEREAS, in 2020 the City of South San Francisco (“City”) adopted (1) Resolution No. 169-2020 certifying the Environmental Impact Report, including adoption of the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, for the Genentech 2020 Master Plan Update (State Clearinghouse No. 2017052064, (2) Resolution No. 170-2020 adopting the Genentech 2020 Master Plan Update, and (3) Ordinance No. 1614-2020 amending Chapter 20.260 of the South San Francisco Municipal Code related to the Genentech Master Plan Zoning District; and WHEREAS, the Genentech 2020 Master Plan guides the development of the Genentech campus over a period of fifteen (15) years to create a vibrant, transit supported, state of the art research, office, and manufacturing campus for the life sciences; and WHEREAS, in 2022 the City adopted (1) Resolution No. 177-2022 certifying the Environmental Impact Report, including adoption of the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, for the 2040 General Plan Update, Zoning Code Amendments and Climate Action Plan (“SSF 2040 General Plan EIR”) (State Clearinghouse No. 2021020064), (2) Resolution No. 178-2022 adopting the 2040 General Plan Update and Climate Action Plan Update, and (3) Ordinance No. 1646-2022 repealing certain sections of Title 20 of the South San Francisco Municipal Code and adopting the Zoning Ordinance Update, including a new Title 20 and Zoning Map; and WHEREAS, the 2040 General Plan Update reflects the community’s vision and looks to continue to promote the expansion of an innovation district with research and development uses in the northern portion of the East of 101 area, including the Genentech campus; and WHEREAS, Genentech, Inc. (“Owner” or “Applicant”) submitted an application requesting acquisition of certain public rights-of-way within the Genentech Campus, proposed rezoning of private properties to be added to the Genentech Master Plan District, and the associated amendments to the General Plan, Genentech Master Plan, and Zoning Map (“Project”); and WHEREAS, adoption of the Applicant’s proposal is considered a “project” for purposes of the California Environmental Quality Act, Pub. Resources Code § 21000, et seq. (“CEQA”); and WHEREAS, the Genentech 2020 Master Plan Update EIR and the SSF 2040 General Plan EIR (“Prior EIRs”) were certified in accordance with the provisions of the California Environmental Quality Act (Public Resources Code, §§ 21000, et seq., “CEQA”) and CEQA Guidelines, which analyzed the potential City of South San Francisco Printed on 5/9/2025Page 1 of 3 powered by Legistar™117 File #:25-395 Agenda Date:5/15/2025 Version:1 Item #:4a Resources Code,§§21000,et seq.,“CEQA”)and CEQA Guidelines,which analyzed the potential environmental impacts of the Project; and WHEREAS,pursuant to CEQA Guidelines Section 15164,an Addendum to the Prior EIRs was prepared for the Project (“2025 Addendum”)which evaluates whether preparation of a Subsequent EIR or Negative Declaration is required; and WHEREAS,the 2025 Addendum concludes that in accordance with Public Resources Code §21166 and CEQA Guidelines §15162,the implementation of the Project will not cause any new significant impacts,that it will not trigger any new or more severe impacts than were studied in the previously certified Prior EIRs,that no substantial changes in the project or circumstances justifying major revisions to the Prior EIRs have occurred,and that no new information of substantial importance has come to light since the Prior EIRs were certified that shows new or more severe significant impacts nor shows new,different or more feasible mitigation measures; and WHEREAS,the City Council previously adopted Mitigation Monitoring and Reporting Programs for the Prior EIRs and a Statement of Overriding Considerations for the Prior EIR’s significant and unavoidable impacts, both of which remain in full force and effect for the Project; and, WHEREAS,on May 15,2025,the Planning Commission of the City of South San Francisco held a duly noticed public hearing at which time interested parties had the opportunity to be heard,to review the Project and the 2025 Addendum, and to receive public comments; and WHEREAS,the Planning Commission reviewed all evidence presented both orally and in writing and considered in light of public comments and testimony the information in the 2025 Addendum for adequacy, completeness and compliance with CEQA and State CEQA Guidelines. NOW,THEREFORE,BE IT FOUND,DETERMINED AND RESOLVED that based on the entirety of the record before it,which includes without limitation,the California Environmental Quality Act,Public Resources Code §21000,et seq.(“CEQA”)and the CEQA Guidelines,14 California Code of Regulations §15000,et seq.; the South San Francisco 2040 General Plan;the South San Francisco Municipal Code;the Genentech 2020 Master Plan Update EIR and Statement of Overriding Considerations;the SSF 2040 General Plan EIR and Statement of Overriding Considerations;the 2025 Genentech Addendum to the Genentech 2020 Master Plan Update EIR and SSF 2040 General Plan EIR;the draft General Plan Amendments;the draft Genentech Master Plan Amendments;the draft Zoning Map amendments;all reports,minutes,and public testimony submitted as part of the Planning Commission’s duly noticed May 15,2025 meeting;and any other evidence (within the meaning of Public Resources Code §21080(e)and §21082.2),the Planning Commission of the City of South San Francisco hereby finds as follows: SECTION 1. FINDINGS A.General Findings 1.The foregoing recitals are true and correct and made a part of this Resolution. 2.The Exhibits attached to this Resolution,including the 2025 Addendum (Exhibit A),the Genentech 2020 Master Plan Update EIR (Exhibit B)and the SSF 2040 General Plan Update EIR (Exhibit C)are each incorporated by reference and made a part of this Resolution, as if set forth fully herein. City of South San Francisco Printed on 5/9/2025Page 2 of 3 powered by Legistar™118 File #:25-395 Agenda Date:5/15/2025 Version:1 Item #:4a 3.The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco,315 Maple Avenue,South San Francisco,CA 94080, and in the custody of the Chief Planner. 4.The Planning Commission,pursuant to CEQA Guidelines section 15164,has considered the 2025 Addendum prepared for the Project including the related environmental analysis,along with the previously certified Genentech 2020 Master Plan Update EIR and SSF 2040 General Plan EIR. 5.Upon consideration of the 2025 Addendum,the Planning Commission finds that,based on substantial evidence in the record,the proposed Project will not result in any of the conditions identified in CEQA Guidelines section 15162 that would require further environmental review through preparation of a subsequent or supplemental EIR. 6.The Planning Commission finds that the Project will not create any new significant impacts or substantially more severe impacts as compared to those already identified and analyzed in the Genentech 2020 Master Plan Update EIR and the SSF 2040 General Plan EIR.Further,the Planning Commission finds that there is no new information of substantial importance that demonstrates new or substantially more severe significant effects,as compared to those identified in the prior CEQA documents.In addition,there are no new,additional,or more feasible mitigation measures required to mitigate any impacts of the Project that the applicant declines to implement. 7.Accordingly,the Planning Commission,exercising its independent judgment and analysis,recommends that the City Council find that per CEQA Guidelines section 15162,the Project does not require any further CEQA review,and that the 2025 Addendum,prepared pursuant to CEQA Guidelines section 15164, is the appropriate environmental document for approval of the Project. SECTION 2. DECISION NOW,THEREFORE,BE IT FURTHER RESOLVED that the Planning Commission of the City of South San Francisco hereby makes the findings contained in this Resolution and recommends that the City Council adopt a Resolution making a determination that the 2025 Addendum is the appropriate environmental document for approval of the Project and no further environmental review is required. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its passage and adoption. ***** City of South San Francisco Printed on 5/9/2025Page 3 of 3 powered by Legistar™119 * * * * * * * City of South San Francisco Page 4 of 4 Attest:__________________________________ Adena Friedman Secretary to the Planning Commission I hereby certify that the foregoing resolution was adopted by the Planning Commission of the City of South San Francisco at a regular meeting held on the 15th day of May 2025 by the following: vote:AYES: NOES: ABSTENTIONS: ABSENT: Vice-Chair Pamukcu, Baker, Faria, Shihadeh, Evans, _ _____________________________________________________________ Chair Funes-Ozturk, Tzang ______________________________________ 120 City of South San Francisco Resolution 8-2025 P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-396 Agenda Date:5/15/2025 Version:1 Item #:4b Resolution making findings and a determination that City’s conveyance of certain public rights-of-way within the Genentech Campus is in conformance with the South San Francisco adopted General Plan in accordance with provisions of State Planning Law (Govt. Code Section 65402), and making findings and recommending that the City Council approve amendments to the Genentech 2020 Master Plan, associated General Plan Amendments and ordinance amending the Zoning Map. WHEREAS, in 2020 the City of South San Francisco (“City”) adopted (1) Resolution No. 169-2020 certifying the Environmental Impact Report, including adoption of the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, for the Genentech 2020 Master Plan Update (State Clearinghouse No. 2017052064, (2) Resolution No. 170-2020 adopting the Genentech 2020 Master Plan Update, and (3) Ordinance No. 1614-2020 amending Chapter 20.260 of the South San Francisco Municipal Code related to the Genentech Master Plan Zoning District; and WHEREAS, the Genentech 2020 Master Plan guides the development of the Genentech campus over a period of fifteen (15) years to create a vibrant, transit supported, state of the art research, office, and manufacturing campus for the life sciences; and WHEREAS, Genentech, Inc. (“Owner” or “Applicant”) has submitted an application requesting acquisition of certain public rights-of-way (DNA Way, Point San Bruno Boulevard and Cabot Road) within the Genentech Campus Master Plan boundaries, and to add the vacated streets and private properties at 333 Point San Bruno Boulevard (APNs 015-250-410 and 015-250-140), 525 DNA Way (APN 015-250-210) and 383-393 East Grand Avenue (APN 015-250-390) to the Genentech Campus Master Plan (“Project”); and WHEREAS, the Applicant has proposed amendments to the Genentech 2020 Master Plan to incorporate the new private parcels and to reflect the ability to close certain portion of the roadways to public traffic if the terms and conditions of the purchase and sale agreement and maintenance and license agreement are met; and WHEREAS, the Applicant has proposed amendments to the General Plan to ensure internal consistency between the Genentech 2020 Master Plan and the General Plan, which include changes to the designation of DNA Way; and WHEREAS, the General Plan contains several goals, policies and actions which support the sale of DNA Way, Point San Bruno Boulevard and a segment of Cabot Road, in the interest of ensuring Genentech remains a premier biotechnology campus, prioritizing safety in all aspects of transportation planning including prioritization of pedestrians, and improving circulation to accommodate the travel demand of future City of South San Francisco Printed on 5/9/2025Page 1 of 6 powered by Legistar™121 File #:25-396 Agenda Date:5/15/2025 Version:1 Item #:4b workplaces; and WHEREAS,the Applicant has also proposed amendments to the City’s Zoning Map,considered under a separate ordinance,rezoning the project site parcels from Business Technology Park -Medium (BTP-M)to Genentech Master Plan District (GMP); and WHEREAS, approval of the Applicant’s proposal is considered a “project” for purposes of the California Environmental Quality Act, Pub. Resources Code § 21000, et seq. (“CEQA”); and WHEREAS,in 2020 the City certified the Environmental Impact Report for the Genentech 2020 Master Plan Update (“Genentech 2020 Master Plan Update EIR”) (State Clearinghouse No. 2017052064); and WHEREAS,in 2022 the City certified the Environmental Impact Report for the 2040 General Plan Update, Zoning Code Amendments and Climate Action Plan (“SSF 2040 General Plan EIR”)(State Clearinghouse No. 2021020064); and WHEREAS,the Genentech 2020 Master Plan Update EIR and the SSF 2040 General Plan EIR (“Prior EIRs”) were certified in accordance with the provisions of the California Environmental Quality Act (Public Resources Code,§§21000,et seq.,“CEQA”)and CEQA Guidelines,which analyzed the potential environmental impacts of the Project; and WHEREAS,pursuant to CEQA Guidelines Section 15164,an Addendum to the Prior EIRs was prepared for the Project (“2025 Addendum”)which evaluates whether preparation of a Subsequent EIR or Negative Declaration is required; and WHEREAS,the 2025 Addendum concludes that in accordance with Public Resources Code §21166 and CEQA Guidelines §15162,the implementation of the Project will not cause any new significant impacts,that it will not trigger any new or more severe impacts than were studied in the previously certified Prior EIRs,that no substantial changes in the project or circumstances justifying major revisions to the Prior EIRs have occurred,and that no new information of substantial importance has come to light since the Prior EIRs were certified that shows new or more severe significant impacts nor shows new,different or more feasible mitigation measures; and WHEREAS,the City Council previously adopted Mitigation Monitoring and Reporting Programs for the Prior EIRs and a Statement of Overriding Considerations for the Prior EIR’s significant and unavoidable impacts, both of which remain in full force and effect for the Project; and WHEREAS,on May 15,2025,the Planning Commission of the City of South San Francisco held a duly noticed public hearing at which time interested parties had the opportunity to be heard,to review the Project and the 2025 Addendum, and to receive public comments; and WHEREAS,the Planning Commission for the City of South San Francisco reviewed and carefully considered City of South San Francisco Printed on 5/9/2025Page 2 of 6 powered by Legistar™122 File #:25-396 Agenda Date:5/15/2025 Version:1 Item #:4b WHEREAS,the Planning Commission for the City of South San Francisco reviewed and carefully considered the information in the 2025 Addendum, and by separate resolution determined that the 2025 Addendum is the appropriate environmental document for approval of the Project and no further environmental review is required. NOW,THEREFORE,BE IT FOUND,DETERMINED AND RESOLVED that based on the entirety of the record before it,which includes without limitation,the California Environmental Quality Act,Public Resources Code §21000,et seq.(“CEQA”)and the CEQA Guidelines,14 California Code of Regulations §15000,et seq.; the South San Francisco 2040 General Plan;the South San Francisco Municipal Code;the Genentech 2020 Master Plan Update EIR and Statement of Overriding Considerations;the SSF 2040 General Plan EIR and Statement of Overriding Considerations;the 2025 Genentech Addendum to the Genentech 2020 Master Plan Update EIR and SSF 2040 General Plan EIR;the draft General Plan Amendments;the draft Genentech 2020 Master Plan Amendments;the draft Zoning Map amendments;all reports,minutes,and public testimony submitted as part of the Planning Commission’s duly noticed May 15,2025 meeting;and any other evidence (within the meaning of Public Resources Code §21080(e)and §21082.2),the Planning Commission of the City of South San Francisco hereby finds as follows: SECTION 1. FINDINGS A.General Findings 1.The foregoing recitals are true and correct and made a part of this Resolution. 2.The Exhibits attached to this Resolution,including the proposed Genentech 2020 Master Plan Amendments (Exhibit A),the proposed General Plan Amendments (Exhibit B)and the Draft Zoning Map Amendment (Exhibit C)are each incorporated by reference and made a part of this Resolution,as if set forth fully herein. 3.By separate resolution on May 15,2025,pursuant to a duly noticed public hearing and based on its independent judgement and analysis,the Planning Commission recommended adoption of CEQA findings and determination that the 2025 Addendum,prepared pursuant to CEQA Guidelines section 15164, is the appropriate environmental document for approval of the Project. 4.The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco,315 Maple Avenue,South San Francisco,CA 94080, and in the custody of the Chief Planner. B.General Plan Conformance and Amendment Findings 1.Sale and vacation of the public rights-of-way of DNA Way,Point San Bruno Blvd and the segment of Cabot Road between Allerton Ave and DNA Way are consistent with and in conformity with the General Plan,as these actions promote continued redevelopment of the Genentech Campus within the East of 101 area,helping South San Francisco to remain a hub of R&D employment,operations,and innovation,continues collaboration with property owners to improve connectivity for R&D workforces, and prioritizes safety in all aspects of transportation planning and engineering. 2.The revisions to the General Plan Figures that are set forth in Exhibit A will remove road designations City of South San Francisco Printed on 5/9/2025Page 3 of 6 powered by Legistar™123 File #:25-396 Agenda Date:5/15/2025 Version:1 Item #:4b 2.The revisions to the General Plan Figures that are set forth in Exhibit A will remove road designations for DNA Way,Point San Bruno Blvd and a portion of Cabot Road because they will no longer be public roads.The changes are consistent and compatible with the rest of the General Plan,and also ensure consistency with the Genentech Master Plan. 3.As required under State law,the South San Francisco General Plan,and the South San Francisco Municipal Code,in support of the General Plan Amendments,the proposed General Plan Amendments are otherwise consistent with and in conformity with the South San Francisco General Plan,do not obstruct or impede achievement of any General Plan policies,and further a number of important General Plan Goals and Policies set forth in the Land Use,Planning Sub-Areas,Prosperous Economy and Mobility and Access Elements, including without limitation: Land Use Element LU Goal 5:South San Francisco remains a hub of R&D employment,operations,and innovation and is home to the largest worldwide cluster of life science uses. LU Policy 5.5:Improve connectivity for R&D workforces.Maintain vehicular infrastructure and improve circulation to accommodate the travel demand of existing and future workplaces. LU Policy 5.7: Collaboration with property owners. Planning Sub-Areas Element: East of 101 SA Goal 19:Vehicle trips are minimized through parking requirements,Transportation Demand Management, and alternative travel modes. Prosperous Economy Element PE Goal 1:South San Francisco remains a premier location for biotechnology and related industries. Mobility and Access Element MOB Goal 1:South San Francisco prioritizes safety in all aspects of transportation planning and engineering. C.2025 Genentech Master Plan Amendment Findings 1.The 2025 Genentech Master Plan Amendments,referenced as Exhibit A,continue to implement and be consistent with the General Plan,as proposed for amendment,because the Master Plan continues to reinforce many of the General Plan policies related to the East of 101 Sub-Area,including Goals and Policies set forth in the Land Use,Planning Sub-Areas,and Mobility and Access Elements. Furthermore,the 2025 Genentech Master Plan Amendments do not conflict with any specific plans and will remain consistent with the City’s overall vision for the East of 101 sub-area.The 2025 Genentech Master Plan Amendments will not conflict with or impede achievement of any of the goals,policies,or land use designations established in the General Plan. 2.The 2025 Genentech Master Plan Amendments will not be detrimental to the public interest,health, safety,convenience,or welfare of the City because the 2025 Genentech Master Plan Amendments do not alter any of the previously adopted development,land use,and performance standards related to City of South San Francisco Printed on 5/9/2025Page 4 of 6 powered by Legistar™124 File #:25-396 Agenda Date:5/15/2025 Version:1 Item #:4b not alter any of the previously adopted development,land use,and performance standards related to new development or alteration.More specifically,the 2025 Genentech Master Plan Amendments reflect the inclusion of new private parcels and the ability for future closure of DNA Way,Point San Bruno Blvd and a portion of Cabot Road to public through traffic. 3.The Genentech Master Plan area,as evaluated in the Genentech 2020 Master Plan EIR (State Clearinghouse No.2017052064)and confirmed in the 2025 Addendum,is physically suitable for the proposed land use designation(s)and the anticipated development since the area is well served by multi- modal transportation options,private commuter shuttle options,existing infrastructure and utilities,and other public services as identified for further investment as part of the Genentech Master Plan’s implementation. 4.The 2025 Genentech Master Plan Amendments does not make any changes to the development and design standards adopted within the 2020 Master Plan,and therefore will continue to be superior to development otherwise allowed under conventional zoning classifications since the Genentech 2020 Master Plan provides additional development and design standards to promote high density life sciences development,and concurrently,proposes enhancements to circulation,parking,utilities,and public services to accommodate anticipated growth within the employment districts. D.Zoning Map Amendment Findings 1.The proposed Zoning Map amendments are consistent with the SSF 2040 General Plan,as proposed for amendment,because the Zoning Map amendments will add new properties to the Genentech Master Plan District in accordance with allowed provisions.Further,the Zoning Map amendments do not conflict with any specific plans and will implement the city’s overall vision for redevelopment within the Genentech Campus Master Plan.None of the new or revised definitions,tables,figures and land uses will conflict with or impede achievement of any of the goals,policies,or land use designations established in the General Plan as proposed for amendment. 2.The Zoning Ordinance Update meets all the requirements as contained in Planning and Zoning Law (Government Code sections 65800-65912). 3.The proposed Zoning Map Amendments,including the proposed changes to the Genentech Master Plan District,are not detrimental to the use of land in any adjacent zone because the Zoning Map Amendments would provide for sufficient development,land use,and performance standards related to new development or alteration SECTION 2. DECISION NOW,THEREFORE,BE IT FURTHER RESOLVED that the Planning Commission of the City of South San Francisco hereby makes the findings contained in this Resolution and (1)makes a determination that the conveyance of certain public rights-of-way within the Genentech Campus is in conformance with the South San Francisco adopted General Plan in accordance with provisions of State Planning Law (Govt.Code Section 65402)and (2)recommends that the City Council adopt the Genentech 2020 Master Plan Amendments (MPM25-0001)attached as Exhibit A,the associated General Plan Amendments (GPA25-0001)attached as City of South San Francisco Printed on 5/9/2025Page 5 of 6 powered by Legistar™125 File #:25-396 Agenda Date:5/15/2025 Version:1 Item #:4b Exhibit B, and adopt an Ordinance amending the Zoning Map (RZ25-0001) attached as Exhibit C. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its passage and adoption. * **** City of South San Francisco Printed on 5/9/2025Page 6 of 6 powered by Legistar™126 * * * * * * * City of South San Francisco Page 4 of 4 Attest:__________________________________ Adena Friedman Secretary to the Planning Commission I hereby certify that the foregoing resolution was adopted by the Planning Commission of the City of South San Francisco at a regular meeting held on the 15th day of May 2025 by the following: vote:AYES: NOES: ABSTENTIONS: ABSENT: Vice-Chair Pamukcu, Baker, Faria, Shihadeh, Evans, _ _____________________________________________________________ Chair Funes-Ozturk, Tzang ______________________________________ 127 May 8, 2025 Dear Chair Faria and South San Francisco Planning Commissioners, On behalf of the San Mateo County Central Labor Council, I am writing to express our support for the proposed updated Master Plan in South San Francisco. As the San Mateo County organization of 103 affiliated unions representing over 95,000 hardworking members and their families, the San Mateo County Central Labor Council is committed to advancing policies that promote economic development, protect good union jobs, and support the long-term vitality of our communities. The update aligns with these goals by enabling strategic growth and reinvestment in South San Francisco’s life sciences sector, one of our region's most critical economic engines. We recognize that the proposed update involves the privatization of DNA Way — a public street that has long served as a thoroughfare in the east of 101 area. While we do not take any move to privatize public assets lightly, we also acknowledge this plan's unique context and importance. With careful consideration, we believe the rezoning can be accomplished to ensure continued access, public safety, and transparency while allowing for responsible and innovative development that will create high-quality union construction jobs, expand career opportunities, and increase the city’s long-term tax base. We urge the Planning Commission to proceed with the rezoning application while continuing to work closely with stakeholders to address community concerns, maintain public benefits, and ensure that South San Francisco remains a city where both businesses and working families can thrive. Thank you for your time and thoughtful consideration of this critical matter. Sincerely, Julie Lind Executive Secretary-Treasurer San Mateo County Central Labor Council Opeiu 29 AFL-CIO 174 128 The Building & Construction Trades Council of San Mateo County 1710 S. Amphlett Blvd., Suite 306 San Mateo CA, 94402 Affiliates ㅡ Heat & Frost Insulators No. 16 Boilermakers Local 549 Brick Tile & Allied Craftworkers 3 DC16 Painters & Allied Trades Local 913, 12, 718 IBEW Local 617 Elevator Constructors No. 8 Ironworkers Local 377 LiUNA Local 261, Local 67 Operating Engineers No. 3 Plasterers & Cement Masons 300 UA Plumbers & Pipefitters 467 Roofers No. 40 SMART 104 Sign & Display 510 UA Sprinkler Fitters 483 Teamsters No. 853 UA Local 355 12 MAY 2025 Chair Sarah Funes-Osturk Library, Parks & Recreation Bldg., Council Chambers 901 Civic Campus Way South San Francisco, CA RE: GENENTECH UPDATED MASTER PLAN Dear Chair Funes-Ozturk & South San Francisco Planning Commissioners, On behalf of the San Mateo County Building and Construction Trades Council, I am writing to express our support for the proposed rezoning of DNA Way. As the representative body for ten thousand skilled union construction workers across San Mateo County, our mission is to advocate for responsible development that brings high-road jobs, strengthens local economies, and builds a better future through the career pathways of apprenticeship for workers and their families. The proposed updated Master Plan presents such an opportunity — one that will allow for thoughtful growth and continued investment in South San Francisco’s thriving life sciences corridor. We understand that this update involves the sensitive issue of privatizing a public roadway. While we believe public assets must be handled with great care, we also recognize that in this case, the potential benefits — including enhanced infrastructure, improved site planning, and the creation of quality union construction jobs — merit serious consideration. With strong oversight and a clear commitment to public access, safety, and transparency, we are confident that the city can strike the right balance. Our members stand ready to build the next generation of facilities that will drive innovation and opportunity in South San Francisco while ensuring that those projects are built to the highest standards by a skilled and trained, local union workforce. We respectfully urge the Planning Commission to approve the updated Master Plan and to do so with a continued focus on equity, partnership, and long-term community benefit. Sincerely, Bart M. Pantoja Business Manager | Financial Secretary-Treasurer P: 650.358.9977 bart@sanmateobctc.org 129 2025 Genentech Road Acquisition Project June 25, 2025 City Council Presentation 130 Genentech Campus Boundary 2 131 Acquired / Controlled Parcels 3 3 525 DNA Way 383-93 E Grand Ave 333 Pt San Bruno Blvd 132 Proposed Genentech Boundary 4 133 5 Genentech Road Network 5 134 6 Genentech Campus Master Plan 6 Potential DNA Way Closure Area 135 Genentech Campus Vehicle Access / Closure 7 136 Genentech Entitlements 137 Required Entitlements •Street Vacations •Purchase and Sale Agreement •Genentech Campus Master Plan Amendments •General Plan Amendments •Zoning Map Amendments •Approval of Addendum Genentech Entitlements 9 138 Proposed Street Vacations •DNA Way (shown in orange) •Cabot Road (shown in blue) •Point San Bruno Blvd (shown in green) Street Vacations 10 139 Proposed Terms •$20M for Orange Section •$5M for Green, Blue and Pink Sections •Maintenance and License Agreement •Outlines ongoing maintenance obligations, provides for reimbursement of City for 5-year period •City granted necessary public utility easements Purchase and Sale Agreement 11 140 Genentech Campus Public Access 12 141 Proposed Amendments within: •Chapter 3: Urban Design •Chapter 4: Transportation, Circulation and Parking •Figures throughout the document Also memorializes obligations related to future appraisals and requirements prior to terminating public access. Genentech Master Plan Amendments 13 142 General Plan Amendments 14 1414 Show Figures 143 Zoning Map Amendments 15 144 Addendum to 2000 Genentech EIR & 2040 GP EIR •No new campus development •No new operations •Genentech not requesting increase in potential Campus buildout assumed in 2020 Genentech EIR Project will not cause any new or substantially more significant environmental impacts Environmental Review 16 145 Planning Commission reviewed on May 15, 2025 •Would City be setting a precedent by selling public roads to a private entity? •How would the vacated roads be assessed for tax purposes? •How much money would the City be saving by divesting in these three public roads? The Commission found that the vacation of the streets is in conformance with the SSF General Plan, and recommended approval of all entitlements by a vote of 5-0 Planning Commission Review 17 146 Planning Commission recommends that Council: 1.Move to adopt a resolution making a CEQA determination; 2.Move to adopt a resolution vacating DNA Way; 3.Move to adopt a resolution vacating Point San Bruno Blvd; 4.Move to adopt a resolution vacating Cabot Road within the Genentech Campus Master Plan boundaries; 5.Move to adopt a resolution approving the sale of DNA Way, Point San Bruno Blvd and Cabot Road to Genentech in the sum of $25M and associated Purchase and Sale Agreement; 6.Waive reading and introduce an ordinance amending the SSF Zoning Map; and 7.Move to adopt a resolution approving Planning entitlements. City Council Recommendation 18 147 2025 Genentech Road Acquisition Project THANK YOU 148 Agenda Item 8. 25-397 Report regarding consideration of Genentech's acquisition of certain public rights-of-way within the Genentech Campus, proposed rezoning of private properties to be added to the Genentech Master Plan District, associated amendments to the General Plan, Genentech Campus Master Plan, and Zoning Map and flnding that the 2025 Addendum is the appropriate environmental document for the Project, per CEQA Guidelines Section 15162 (Billy Gross, Principal Planner). Legislation Text Att 1 - Genentech Project Description Att 2 - Planning Commission Minutes Att 3a - PC CEQA Resolution Att 3b - PC Entitlements Resolution Att 4 - PC Comment Letters SB 343 -Att 5 - San Mateo County ALUC Resolution Att 6 - Staff Presentation SB 343 Item 8b - Genentech Presentation 6.25.25 40 Public Comments • Guest User about 1 month ago Oppose City Council members and staff, Other than wanting to repeat Tom Carney comments, I have my own. I oppose the all agreements and ordinances leading to the sale, licensing or sale of any SSF-owned properties, streets, roadways and right-of-ways to Genentech Corporation. I also oppose amendments to the General Plan and the GMP and GMP Zoning District. The fact that you may be violating the law in the procedures setting forth the proposed actions is just assumed. I have just returned from driving the roadways that are mentioned in the reports, maps and resolutions on the June 25 agenda. I am appalled the City Council is contemplating such an agreement – to sell OUR public land and roadways to a private corporation. A corporation for which some council members hold stock. The agreement not only accommodates Genentech pretty much owning that full acreage as outlined in the maps, it also closes or inhibits some PUBLIC ACCESS to the Bay. Please listen to the residents of your city – the ones who have invested their lives, their livelihood in SSF, the same residents whose taxes pay your salary. That is the insult...you are selling public land to private ownership without a vote of the people. Have you driven those roadways? I see the beneflt of Genentech ownership; I also understand the beneflts to SSF. THE MOST EGREGIOUS STATEMENTS OF THE BENEFITS OF THE SALE, HOWEVER, ARE IN GENENTECH'S SLIDE PRESENTATION: The street(s) vacation - “PROVIDES UNRESTRICTED FUNDS THROUGH THE TRANACTION TO ADDRESS CITY PRIORITIES” (I assume this is the $25M for which there will be no accountability) and “IMPLEMENTS THE MASTER PLAN THOURH PEDESTRIAN-FOCUSED INFILL DEVELOPMENT AND HIGH-QUALITY CAMPUS OPEN SPACES” The pedestrians are Genentech and biotech employes, it is for private use, not necessarily the public...who have paid taxes for decades. Not public open spaces, but Genentech/biotech open spaces. If for some unreasonable, unconscionable reason the city council approves this transaction for the bargain sale price of $25 million ($25 million, really?!, you have been had. Get another appraisal. You are SO underselling our city, underselling our streets (which you shouldn’t be selling to begin with) to the tune of total mismanagement of the city’s budget. Take another drive through the map's roadways (I encourage everyone to do so) and see how insane this proposal is. You're selling OUR streets and for cheap cheap cheap. • Guest User about 1 month ago Dear city council I am writing to you as a very long time resident of south San Francisco. I object to the selling of public property not following state and federal laws. The removal of access to any public roads, trails, open space, bay waters. As you are aware in district flve we are very underserved and our city as a whole is lacking in parks, open spaces and public trails. You may recall back in 2024 I spoke at a public but held privately at city hall 4.30 on a Friday with little to no notiflcation to the public. It was only one party buying?. No transparency that I could see. Also no follow up to the public of prices, location, parcel numbers to date. The guide lines below outline procedures you should follow but have not. I believe this item needs to be removed for the city council meeting tonight. In regards to short falls in city budgets. Maybe you should have public open discussions with serial tax evaders east of 101. As a city council all corporations and businesses should pay their fair share of taxes as outlined by San Mateo county and district attorneys office who is flghting the non tax payers. Once county collects the tax it comes back to south San Francisco budgets and our school district. Taxes should not be only on the residents and as a city council you should be acting in the best interests of South San Francisco residents and city. I am asking city clerk to enter my letter comments in to public record and attach to item property sales. Thank you. Tom Carney State guidelines for selling public property generally involve determining if the property is truly surplus, followed by a public process to ensure transparency and fair market value. This often includes public notice, bidding, and appraisal procedures. Here's a more detailed breakdown: 1. Determination of Surplus Property: • States and cities often have speciflc criteria for identifying property as surplus, such as being no longer needed for public purposes or being difficult to manage. • This often involves a formal review process, sometimes with public input, to assess the property's continued need for public use. 2. Public Notice and Bidding: Public Notice: Once identifled as surplus, the property must be advertised for sale, often through a newspaper of general circulation or other public channels. Public Bidding: Generally, the property is sold through a competitive bidding process, with sealed bids submitted to the relevant authority. 3. Appraisal and Fair Market Value: • Appraisal: An independent appraisal is typically required to determine the fair market value of the property. • Highest and Best Price: The sale is usually awarded to the highest and best qualifled bidder, ensuring the state receives fair market value. • Terry Jenkins about 1 month ago Oppose I believe this to be abuse of power and ignoring what the community has to say as a normal practice • Guest User about 1 month ago This is the beginning of the end for South San Francisco and its residents...selling our public land to multi-billion dollar corporation Genentech. Why? Listening again to Ms. Karen Chang's presentation, we have big problems in our city and it begins with this city council and executive city staff -- ever since Sharon Ranals became city manager, supervisors each have an "assistant", and that was never needed, the "need" for deputy city managers and city manager assistants, unbridled spending on pet projects and unmonitored credit cards, city-owned vehicles for use outside city limits, fuel costs and bridge costs, a contracted city attorney doing the elected city clerk's job checking PRRs and asking for more funding, and I haven't even talked about the condition of our neighborhoods and lack of services, but the residents who pay these salaries, pensions, and beneflts? We get ignored, name called, but thank goodness for the SSF Citizens Coalition who learned, through our efforts to Save our Beloved MSB Senior Community Building, that the problems lie with this city council and executive city staff. "Public Lands Should Remain in Public Hands" - quote, then-Mayor James Coleman November, 2023 Cynthia Marcopulos SSF Citizens Coalition Save the Municipal Services Building, Save the MSB! • Guest User about 1 month ago Oppose Dear SSF City Council, I respectfully submit a public comment regarding City Council’s June 25, 2025 Agenda Meeting, Agenda Item 8.25-397. By this email, I formally submit my opposition to this sale of our public streets to Genentech Corporation. I understand a separate and private meeting was held on Friday, May 17, 2025, between this Council, our City Manager, and City Attorney and Genetech Corporation to negotiate the terms of the sale of South San Francisco public land with no public notices and no other bids depriving SSF residents the opportunity to give input on whether this sale beneflts the public good. As all city council members and Bassam Shihadeh, Planning Commisioner, has either accepted campaign donations or has received direct income from Genentech, or a competitor biotech company, the clandestine negotiation on behalf of the City of South San Francisco creates a confiict of interest. The sale price states to have been determined in part by a separate valuation for a different parcel of land that was conveyed to SSF; and in part by Genentech themselves. Is that the typical protocol for land valuation in acquisition of public lands? I realize the sale of three streets that intersect through the Genentech campus is likely a means to defray ongoing maintenance obligations currently borne by SSF. But the legislation also states Genentech may in time close these roads to public access with little more than a future appraisal and a supplemental payment. If access to Wind Harp is further limited by those street closures, we are effectively giving them more than three roads. Genentech continues to grow their own private city within our borders. Curious this behemoth’s presence doesn’t seem to help our budget deflcits. With budgetary constraints likely to carry forward to future years, the interest to complete this transaction may seem sensible, but public-owned land sales of such magnitude should not be decided in isolation by officials with apparent confiicts of interest. I copy Ms. Acosta for submission into public record. Sincerely, L. Katherine Kala Acosta • Guest User about 1 month ago Oppose STOP beneflting at the cost of the city and residents of South San Francisco!! Invest in our communities and stop lining your pockets at our expense. To start, we need a PARK(!!) in Sunshine Gardens! We have NOTHING! We need improved infrastructure! Public spaces! Save the MSB!! Stop making us into a concrete jungle! • Guest User about 1 month ago Neutral I need more information about this transaction, why is this important and what effect will this have on the city? sailshark@yahoo.com. Joe K • Sharon Menesini about 1 month ago Oppose Do not sell off our city property to anyone! This is our city paid for by the taxes we have paid for 40 years. We are not for sale to anyone or any company! Do your jobs and stop spending outrageous amounts of money on things that are not necessary! Next we will be voting you out of office! Your salaries are the highest on the peninsula and we are the smallest population. STOP the ridiculous spending! An outside pool in this weather!!! CRAZY! • Bob Padilla about 1 month ago Oppose City counsel are criminals. Want the investigation to start. • Guest User about 1 month ago Oppose Council, our streets belong to us and we pay taxes for their upkeep. This should be addressed abd discussed at a public hearing not given as a token to Genentec. They don't seem to pay taxes we or SMateo County are owed so they should NOT BE ENTITLED to buy our streets. How dare you put a company before your constituents but that's your modus operandi. Thank you. Barbara Erhard • Cory David about 1 month ago Oppose Administrations of the past knew full well that indiscriminately selling off city properties is a "fools errand." Why? You can only sell them once and that is why SSF's government opted for long term leases which keep the properties in city inventory. Mr. Addiego is well aware of this practice but for some reason has now chosen to abandon it with the support of his colleagues. You all will, and have, made Genentech proud at the city's expense. • Guest User about 1 month ago Selling land to Genetech is not in the interest of the citizens of South San Francisco • Guest User about 1 month ago Oppose Please do not sell the land to Genetech. Roche make poisons! No matter what, council members are bought by Genetech. You cannot represent we the people of SSF! this land is NOT your council members! Get out of SSF, you lose my vote. • Guest User about 1 month ago Oppose This statement is in strong opposition to the sale of public streets to private entities without the knowledge or consent of the community. Public streets belong to the people and serve the common good, ensuring access, mobility, and public safety. Any transfer of public land into private hands should require full transparency, public notice, and meaningful community input. Decisions made behind closed doors undermine public trust and threaten the democratic process. • Guest User about 1 month ago Neutral Opposing sale of the Community land. I vote no way!!!! • Guest User about 1 month ago Oppose Oh and by the way how in the world can SSF be the highest taxed city on the peninsula? 9.88% and lets take into consideration the hike in sewer tax you guy snuck in when you had a meeting at 2pm on a Tuesday afternoon to approve it (we all know you did it then so people wouldn't attend) because we are a working class community, at least some of us. The BLT crap and measure W. You guys have pushed the envelop with the community to the brink. DO something for the residents other than steal their money. • Phil Fioresi about 1 month ago Oppose Come on guys, many of us saw the fllm of the meeting talking about the deep debt the city is in. I would say if I ran my household like that I would be homeless right now. It's s dereliction of duty. Get your acts straight of resign, SSF was a far better place years ago when we had good SSF residents running the city and not a bunch of wannabe politicians looking for a career of living off the residents. Fix it without selling off or hocking off our town. • Guest User about 1 month ago Oppose I do not support the city selling our land to line their pockets. There is absolutely No Transparency anymore • Guest User about 1 month ago Oppose I do not support our SSF planning Commission idea of selling to Genentech or any other CORPORATION OR COMPANY OUR PRIVATE STREETS OR LAND. We the SSF taxpayers are not supporting any plan to gain monies from a Corporation in this manor. It’s appalling that the SSF Council and Planning Commission think they can just override the citizens who pay high taxes, very high salaries to the appointed officials who lack supporting the very people who live in our community. • Guest User about 1 month ago Oppose I object to this entire concept! No way should our elected City Council be selling OUR city streets to Genentech! STOP IT! G. Frleta, Resident, Taxpayer and Voter since 1984 Theresa Dr. South San Francisco, CA 94080 • Guest User about 1 month ago Oppose I strongly oppose this unethical deal of selling our public land between the SSF City Council and Genentech. If you support this deal you are not protecting the interests of South City but are helping your donor take advantage of our beloved city at the expense of all of us residents. • Guest User about 1 month ago Oppose The fact that tis is being considered is troubling, why would public streets be sold? Why would it be done making attempts to keep the fact they are being sold away from the taxpayers who's money went to build the streets and keep them up? It's clear our city has people in charge who are not thinking of the duty they took an oath to uphold rather they think of themselves flrst. Our council when confronted with facts either will not address the residents or passes the buck to our totally incompetent, overpaid city manager, who by the way has no problem ignoring or confronting residents rather than actually addressing their concerns. Its also clear that our elected officials (at least a majority) are all united to defended themselves against the people who their terrible decisions affect rather than do the job they were elected to do. This includes our council, school board and city clerk, not to mention the appointed positions like city manager and the entire planning commission. It's not like the residents don't see what you are doing and if you keep doing it how will it feel when you walk down the street in your home town people will frown rather than smile when they see you, because of the decisions you have made. • Guest User about 1 month ago Oppose I believe you are in violation of the Brown Act when the "reveal" of your closed session negotiations for the sale of public properties is the actual vote on the item. You have evaded public debate and are taking unilateral action without the input of the resident owners of the properties. Apparently you see the democratic process as an inconvenience when others see it as a right. To those of you who have taken liberties with the property assets of the City of South San Francisco, for historical reference, know that SSF used to never liquidate their inventory of properties instead opting for long term leases. You wanna' know why? Because you can only sell them once! I suggest you put off your vote on the sale of the properties to your special interest masters pending public debate. • Guest User about 1 month ago Oppose We oppose selling our city land to a private company. Why is this happening? • Cynthia Marcopulos about 1 month ago Oppose Besides last year's clandestine meeting where two residents fortunately found out to stop the sale of our public streets (don't we recall councilman Coleman saying "public lands stay in public hands"?), Karen Chang revealed at the (6/11/25) council meeting your over - spending, exorbitant executive staff salaries, pet projects -- Measure W 2015 was NOT to pay salaries, and City Mgr. wants to flll 3 more executive positions? Confiict of interest owning stock in or accepting donations from Genentech? FPPC violation... Reopen the MSB and rent to non-proflts! https://www.youtube.com/watch?v=WTXuaRkpWhs • Cynthia Marcopulos about 1 month ago Oppose Besides last year's clandestine meeting where two residents fortunately found out to stop the sale of our public streets (don't we recall councilman Coleman saying "public lands stay in public hands"?), Karen Chang revealed at the (6/11/25) council meeting your over - spending, exorbitant executive staff salaries, pet projects -- Measure W 2015 was NOT to pay salaries, and City Mgr. wants to flll 3 more executive positions? Confiict of interest owning stock in or accepting donations from Genentech? FPPC violation... Reopen the MSB and rent to non-proflts! https://www.youtube.com/watch?v=WTXuaRkpWhs • Guest User about 1 month ago Oppose As a young South City resident, 27 years old to be exact, I do not support our resources being abused and taken away from HARD WORKING TAX PAYERS. It is already challenging enough to save for a home of my own and make ends meet given that I am already in my profession as a therapist. To privatize land that the CITIZENS have paid to maintain and build, this absolutely deceptive. The lack of transparency by the city officials is unacceptable. • Guest User about 1 month ago Oppose The streets and roads within South San Francisco belong to South San Francisco!!! No one else. I strongly oppose selling off our streets and roads to Genentech, a private entity. We have lived and paid taxes in South San Francisco for over 40 years. We do not approve of the way this City Counsel and our City Manager is handling their jobs. They are working for big business instead of the taxpayers that pay their salaries. This must STOP!! • Guest User about 1 month ago Oppose The thought that public land would be sold without consent of the residents is absurd. Is it because our city council has been spending money like a bunch of drunken sailors? They have made bad decision after worse decision. We are being taxed to death and with the idea of a new tax being put on the next ballot for a parcel tax? If this was a single person making these decisions I would guess they either had a drug or gambling problem. We (SSF) are in so much debt we have to sell our streets? Wake up we are all watching, we all see it, do the right thing for the people you are supposed to be representing, don't censor us listen to us. Put you political ambition second and your constituents flrst, for once, and by all means stop wasting our money, it's not there for your pet projects it's to help the community. • Guest User about 1 month ago Neutral Does SSF want to do this sort of deals with businesses, I would like to know for what reasons. I feel we the people of the city should know what happens and why. In my opinion • Val Keech about 1 month ago Oppose I oppose this. SOUTH SAN FRANCISCO CITY COUNCIL & CITY STAFF PLANNING TO SELL OUR PUBLIC LAND/PUBLIC STREETS making public streets privately-controlled streets TO $60 BILLION DOLLAR CORPORATION GENENTECH, OWNED BY ROCHE - joining them in 2009. • Guest User about 1 month ago Oppose I strongly oppose the private sale of our public streets and land to Genentech! You have no right to do such a thing! We DEMAND a PUBLIC MEETING! Peggy Deras, Resident Taxpayer and Voter 548 Theresa Drive South San Francisco, CA 94080 • Guest User about 1 month ago Oppose This should be open to the public and not a secret sale! • Guest User about 1 month ago Oppose Hands off public land! Pimps in suits- beneflting only themselves with these transactions . How do these individuals continue to be in office? Shameful. • Guest User about 1 month ago no more selling of our city lands • Guest User about 1 month ago Oppose Public land should remain public. • Guest User about 1 month ago Oppose The citizens of SSF strongly oppose the sale of public roads to Swiss giant Roche, which is the parent company of Genentech. Genentech is no longer a locally owned company and their interests do not align with the interests of SSF Citizens. DO NOT BECOME A COMPANY TOWN. • Guest User about 1 month ago Oppose PUBLIC LANDS SHOULD REMAIN IN PUBLIC HANDS!!! • Guest User about 1 month ago Oppose Isn’t it bad enough you have over done it with apartment buildings!!!Now you want to sell the streets that make up our City snd were built for the people of SSF not to the Biotechs!! Leave well enough ALONE…. • Nancy glide about 1 month ago Oppose AN UNPUBLISHED MEETING ANNOUNCING THIS TRANSACTION IS A VIOLATION OF OPEN MEETING LAWS THE BROWN ACT. By ELECTION CODE,and NULLIFIES SUCH TRANSACTIONS. KNOW THAT THIS LACK OF TRANSPARENCY CONDUCTING THE PEOPLE’S BUSINESS IN SECRET HAS CONSEQUENCES. EACH MEMBER PRESENT WILL BE ACCOUNTABLE FOR VIOLATING THE RIGHT OF THE PUBLIC TO REPRESENT THEiR OPINION AND DECISIONS. City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-398 Agenda Date:6/25/2025 Version:1 Item #:8a. Resolution making findings and determining that City’s conveyance of certain public rights-of-way (DNA Way, Point San Bruno Boulevard,and Cabot Road)within the Genentech Campus Master Plan boundaries,proposed rezoning of private properties to be added to the Genentech Master Plan District,and its associated amendments to the General Plan,Genentech Master Plan,and Zoning Map are fully within the scope of environmental analysis in the certified Genentech 2020 Master Plan Environmental Impact Report and the certified SSF 2040 General Plan Environmental Impact Report and that the 2025 Addendum to the prior EIRs is the appropriate environmental document for the Project. WHEREAS,in 2020,the City of South San Francisco (“City”)adopted (1)Resolution No.169-2020 certifying the Environmental Impact Report,including adoption of the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program,for the Genentech 2020 Master Plan Update (State Clearinghouse No.2017052064,(2)Resolution No.170-2020 adopting the Genentech 2020 Master Plan Update,and (3)Ordinance No.1614-2020 amending Chapter 20.260 of the South San Francisco Municipal Code related to the Genentech Master Plan Zoning District; and WHEREAS,the Genentech 2020 Master Plan guides the development of the Genentech campus over a period of fifteen (15)years to create a vibrant,transit supported,state of the art research,office,and manufacturing campus for the life sciences; and WHEREAS,in 2022,the City adopted (1)Resolution No.177-2022 certifying the Environmental Impact Report,including adoption of the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program,for the 2040 General Plan Update,Zoning Code Amendments,and Climate Action Plan (“SSF 2040 General Plan EIR”)(State Clearinghouse No.2021020064),(2)Resolution No.178-2022 adopting the 2040 General Plan Update and Climate Action Plan Update,and (3)Ordinance No.1646-2022 repealing certain sections of Title 20 of the South San Francisco Municipal Code and adopting the Zoning Ordinance Update, including a new Title 20 and Zoning Map; and WHEREAS,the 2040 General Plan Update reflects the community’s vision and looks to continue to promote the expansion of an innovation district with research and development uses in the northern portion of the East of 101 area, including the Genentech campus; and WHEREAS,Genentech,Inc.(“Owner”or “Applicant”)submitted an application requesting acquisition of certain public rights-of-way within the Genentech Campus,proposed rezoning of private properties to be added to the Genentech Master Plan District,and the associated amendments to the General Plan,Genentech Master Plan, and Zoning Map (“Project”); and City of South San Francisco Printed on 6/18/2025Page 1 of 4 powered by Legistar™149 File #:25-398 Agenda Date:6/25/2025 Version:1 Item #:8a. WHEREAS,adoption of the Applicant’s proposal is considered a “project”for purposes of the California Environmental Quality Act, Pub. Resources Code § 21000, et seq. (“CEQA”); and WHEREAS,the Genentech 2020 Master Plan Update EIR and the SSF 2040 General Plan EIR (“Prior EIRs”) were certified in accordance with the provisions of the California Environmental Quality Act (Public Resources Code,§§21000,et seq.,“CEQA”)and CEQA Guidelines,which analyzed the potential environmental impacts of the Project; and WHEREAS,pursuant to CEQA Guidelines Section 15164,an Addendum to the Prior EIRs was prepared for the Project (“2025 Addendum”)which evaluates whether preparation of a Subsequent EIR or Negative Declaration is required; and WHEREAS,the 2025 Addendum concludes that in accordance with Public Resources Code §21166 and CEQA Guidelines §15162,the implementation of the Project will not cause any new significant impacts,that it will not trigger any new or more severe impacts than were studied in the previously certified Prior EIRs,that no substantial changes in the project or circumstances justifying major revisions to the Prior EIRs have occurred,and that no new information of substantial importance has come to light since the Prior EIRs were certified that shows new or more severe significant impacts nor shows new,different,or more feasible mitigation measures; and WHEREAS,the City Council previously adopted Mitigation Monitoring and Reporting Programs for the Prior EIRs and a Statement of Overriding Considerations for the Prior EIR’s significant and unavoidable impacts, both of which remain in full force and effect for the Project; and WHEREAS,on May 15,2025,the Planning Commission of the City of South San Francisco held a duly noticed public hearing at which time interested parties had the opportunity to be heard,to review the Project and the 2025 Addendum,and to receive public comments prior to the Planning Commission making its recommendation on the Project; and WHEREAS,on June 25,2025,the City Council held a duly noticed public hearing at which time interested parties had the opportunity to be heard,to review the Project and the 2025 Addendum,and to receive public comments prior to the City Council making its decision on the Project; and WHEREAS,the City Council exercised its independent judgement and analysis,and considered all reports, recommendations, and testimony before making a determination on the Project. NOW,THEREFORE,BE IT FOUND,DETERMINED,AND RESOLVED that based on the entirety of the record before it,which includes without limitation,the California Environmental Quality Act,Public Resources Code §21000,et seq.(“CEQA”)and the CEQA Guidelines,14 California Code of Regulations §15000,et seq.; the South San Francisco 2040 General Plan;the South San Francisco Municipal Code;the Genentech 2020 Master Plan Update EIR and Statement of Overriding Considerations;the SSF 2040 General Plan EIR and Statement of Overriding Considerations;the 2025 Genentech Addendum to the Genentech 2020 Master Plan City of South San Francisco Printed on 6/18/2025Page 2 of 4 powered by Legistar™150 File #:25-398 Agenda Date:6/25/2025 Version:1 Item #:8a. Statement of Overriding Considerations;the 2025 Genentech Addendum to the Genentech 2020 Master Plan Update EIR and SSF 2040 General Plan EIR;the draft General Plan Amendments;the draft Genentech Master Plan Amendments;the draft Zoning Map amendments;all reports,minutes,and public testimony submitted as part of the Planning Commission’s duly noticed May 15,2025 meeting;all reports,minutes,and public testimony submitted as part of the City Council’s duly noticed June 25,2025 meeting;and any other evidence (within the meaning of Public Resources Code §21080(e)and §21082.2),the City Council of the City of South San Francisco hereby finds as follows: SECTION 1. FINDINGS A.General Findings 1.The foregoing recitals are true and correct and made a part of this Resolution. 2.The Exhibits attached to this Resolution,including the 2025 Addendum (Exhibit A),the Genentech 2020 Master Plan Update EIR (Exhibit B),and the SSF 2040 General Plan Update EIR (Exhibit C)are each incorporated by reference and made a part of this Resolution, as if set forth fully herein. 3.The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco,315 Maple Avenue,South San Francisco,CA 94080, and in the custody of the Chief Planner. 4.The City Council,pursuant to CEQA Guidelines section 15164,has considered the 2025 Addendum prepared for the Project,including the related environmental analysis,along with the previously certified Genentech 2020 Master Plan Update EIR and SSF 2040 General Plan EIR. 5.Upon consideration of the 2025 Addendum,the City Council finds that,based on substantial evidence in the record,the proposed Project will not result in any of the conditions identified in CEQA Guidelines section 15162 that would require further environmental review through preparation of a subsequent or supplemental EIR. 6.The City Council finds that the Project will not create any new significant impacts or substantially more severe impacts as compared to those already identified and analyzed in the Genentech 2020 Master Plan Update EIR and the SSF 2040 General Plan EIR.Further,the City Council finds that there is no new information of substantial importance that demonstrates new or substantially more severe significant effects,as compared to those identified in the prior CEQA documents.In addition,there are no new, additional,or more feasible mitigation measures required to mitigate any impacts of the Project that the applicant declines to implement. 7.Accordingly,the City Council,exercising its independent judgment and analysis,finds that per CEQA Guidelines section 15162,the Project does not require any further CEQA review,and that the 2025 Addendum,prepared pursuant to CEQA Guidelines section 15164,is the appropriate environmental City of South San Francisco Printed on 6/18/2025Page 3 of 4 powered by Legistar™151 File #:25-398 Agenda Date:6/25/2025 Version:1 Item #:8a. Addendum,prepared pursuant to CEQA Guidelines section 15164,is the appropriate environmental document for approval of the Project. SECTION 2. DECISION NOW,THEREFORE,BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco hereby makes the findings contained in this Resolution and adopts a Resolution making a determination that the 2025 Addendum is the appropriate environmental document for approval of the Project and no further environmental review is required. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its passage and adoption. ***** City of South San Francisco Printed on 6/18/2025Page 4 of 4 powered by Legistar™152 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 1 City of South San Francisco Addendum to the Environmental Impact Report for the South San Francisco 2040 General Plan Update, Zoning Code Amendments and Climate Action Plan and Addendum to the Environmental Impact Report for the Genentech Master Plan State Clearinghouse Numbers: SCH # 2021020064 and SCH #2017052064 Executive Summary The City of South San Francisco (SSF) has prepared this Addendum to the Environmental Impact Report for the South San Francisco 2040 General Plan Update, Zoning Code Amendments and Climate Action Plan (2040 GP EIR) and the EIR for the Genentech Master Plan (Master Plan EIR), together cited as the Prior EIRs. The purposes of this Addendum are to update the Project Description included in each of those Prior EIRs to include new details regarding Genentech’s proposed acquisition of certain public rights-of-way within the Genentech Campus (including DNA Way, Point San Bruno Boulevard and Cabot Road), the potential closure of these roads for public access, and Genentech’s proposed rezoning of six properties to be added to the Genentech Master Plan. This Addendum to the Genentech Master Plan EIR assesses the potential environmental effects associated with these actions. In preparing this EIR Addendum, the City of South San Francisco has evaluated the potential acquisition of these street rights- of-way and the public service easement on either side of the right-of-way, and the addition of these new properties in light of the analysis in these Prior EIRs. The primary conclusions of this CEQA Addendum are as follows: • The Project does not include any proposal for new Campus development, street removal or reconstruction within the Genentech Campus. Accordingly, the Project would have no construction-related environmental impacts. • The Project does not include any proposal for new Genentech operations. If the proposed rights- of-way acquisitions by Genentech are approved, these streets will remain open to the public in the near term but as private streets rather than public streets, and Genentech will have the right to close these streets to public through traffic at its own discretion, providing that Genentech maintains public access to the Wind Harp. • No new development, redevelopment or reuse of the six new properties proposed to be added to the Campus is currently proposed, and the Project would have no operations-related environmental impacts. • Although the Project would increase the acreage of properties within the Genentech Campus, Genentech is not requesting an increase in the potential Campus buildout beyond the 9 million square feet as assumed in the 2020 Master Plan (which is based on an FAR of 1.0 times the overall Campus acreage). Accordingly, the Project would have no new or potentially more severe cumulative environmental impacts than previously disclosed in the prior 2020 Genentech Campus Master Plan EIR. • The Project does not include any proposal for immediate closure of DNA Way, Point San Bruno Boulevard or the short segment of Cabot Road to public through travel. The Project does create 153 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 2 the potential that Genentech may decide to close Point San Bruno Boulevard and the short segment of Cabot Road, and the portion of DNA Way east of Wind Harp (hereafter referred to as partial closure of DNA Way) to through traffic, as indicated in the 2020 Genentech Campus Master Plan. Although no street closures are included as part of the current Project, the possibility of these street/partial street closures has been analyzed. The conclusions of this analysis is that the potential for future closure/partial closure of these streets would have no new or more severe environmental impacts than those previously disclosed in the prior Genentech Campus Master Plan EIR. Based on these conclusions, an Addendum to these Prior EIRs is the appropriate CEQA documentation necessary for the Project. This document serves as that CEQA Addendum to the SSF 2040 General Plan EIR and the Genentech Master Plan EIR. 154 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 3 Background South San Francisco 2040 General Plan Update In October of 2022 the City of South San Francisco adopted the South San Francisco 2040 General Plan Update, Zoning Code Amendments and Climate Action Plan (SSF 2040 GP). The SSF 2040 GP presents South San Francisco’s vision for the next two decades and provides, “a roadmap for the City to implement policies and actions that create a resilient community, improve the quality of life of its residents, and expand economic development opportunities.”1 Mobility and Access Element Street Typology Relevant to the proposed Project, the Mobility and Access Element of the SSF 2040 GP categorizes streets in South San Francisco into five typologies: Boulevards, Connectors, Downtown Main Streets, Industrial, and Neighborhood Streets. The SSF 2040 GP’s Roadway Network Map (see Figure 1) illustrates the City’s street network. As shown in Figure 1, DNA Way from East Grand Avenue to Forbes Boulevard is identified as an existing Connector/Collector Street, and Point San Bruno Boulevard from DNA Way to East Grand Avenue is identified as a combination of an existing and potential future Connector Road. Cabot Road, from Allerton Avenue to DNA Way is identified as an existing Local Industrial Roadway. • The Mobility and Access Element defines Connector/Collector streets as primary or secondary streets within the City that serve as corridors to major destinations. These streets are designed to provide mobility space for all travelers (vehicles, pedestrians, bicyclists and transit riders). They also provide access to major destinations and denser residential or commercial areas, and can accommodate moderate volumes of travelers. Connector streets generally have two travel lanes, sometimes with short four-lane segments or a center left turn lane. Connectors have sidewalks and provide on-street bicycle facilities and/or on-street parking. • The Mobility and Access Element defines Local Industrial streets as similar to neighborhood streets (typically two travel lanes and on-street parking, if street widths permit), but designed to serve the needs of manufacturing and goods movement businesses that need access by larger and heavier vehicles. Common vehicles often include vans, single unit trucks, and smaller semi- trucks. Industrial streets may have two vehicle lanes, and occasionally wider lane widths to accommodate larger vehicles. The Mobility and Access Element also illustrates the South San Francisco truck network, which differentiates streets that are designed to accommodate large freight trucks. These streets typically require designing for larger vehicles, including lane configurations, curb radii and pavement types. The truck network is expected to evolve over time as land uses change, but both DNA Way and Point San Bruno Boulevard are identified as existing Truck Routes. 1 City of SSF, Shape SSF 2040 General Plan, February 2022, page 8 155 Figure 1 SSF 2040 General Plan Roadway Network Map San Francisco Bay Ferry Terminal San Bru n o C reek e s Blv £101 San Francisco Source: SSF 2040 General Plan, Figure 14: Proposed Roadway Network 156 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 5 Key Issues and Opportunities The SSF 2040 GP Mobility and Access Element identifies a number of key issues, opportunities and policy positions relevant to transportation within the broader East of 101 Area, including the Genentech Campus. These include the following: • Matching Transportation Needs and Infrastructure: As South San Francisco continues to experience growth and change, its transportation needs are increasingly mismatched with the infrastructure and services constructed years ago to support “the Industrial City.” This mismatch is especially apparent in the East of 101, Lindenville and the El Camino Real sub-areas, where large auto-oriented streets are increasingly at-odds with higher density developments more oriented toward walking, biking and transit use. • Reshaping Travel Patterns: South San Francisco is uniquely positioned to capitalize on several regional transportation improvements that can help reshape travel patterns for residents and employees. These projects include planned service expansions by Caltrain, SamTrans, and San Francisco Bay Area Water Emergency Transportation Authority (WETA), along with the new Caltrain station providing a more direct connection to Downtown and the East of 101 sub-area. These changes present opportunities to reduce vehicle miles traveled and shift vehicle trips (especially longer distance commute trips) to transit. In order to realize the full potential of these projects, South San Francisco will need to prioritize walkable station areas along with first/last mile improvements that connect residents and employers with regional transit via shuttles and active transportation facilities. Such improvements are particularly critical for the East of 101 and Lindenville areas, where it is important for buses and shuttles to provide fast, direct and reliable connections separated from traffic congestion and delays. • Fast and Reliable Bus and Shuttle Operations: As the city grows, the transit network is expected to evolve over time. In particular, South San Francisco is expected to see a substantial increase in Caltrain service in the coming years as the agency implements its Business Plan service vision, while ferry, bus, and shuttle service is also expected to grow to meet the city’s changing needs. The city can support increased regional transit service via pursuing access improvements to its stations and orienting employer transportation demand management programs around these services. The city can also support fast and reliable bus and shuttle operations by implementing improvements such as transit signal priority, bulb-outs and in-lane bus stops, and bus-only lanes, particularly on its transit priority corridors. • Eliminating All Injury Collisions: South San Francisco’s ‘Vision Zero’ intends to eliminate all injury collisions on roadways. To achieve this vision, tradeoffs to prioritize safety will need to be made, such as reducing vehicle speed limits on local streets or allotting more street space to vulnerable users in the form of bikeways and sidewalks. The SSF 2040 GP Mobility and Access Element anticipates that the city will need roughly $1 billion to $1.2 billion in transportation upgrades over the next two decades to support buildout of the General Plan, modernizing South San Francisco’s transportation system, and providing people with more choices in how they travel within the city and region.2 It also presumes that the city will need to ‘right-size’ the city’s transportation infrastructure by adding new streets and trail connections while phasing out vestiges of the past, such as the city’s freight rail spurs.3 The Mobility and Access Element concludes that 2 SSF 2040 GP, Mobility Element, page 188 3 Ibid, page 178 157 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 6 by building a more multi-modal transportation network, South San Francisco can achieve a safe, multimodal, sustainable, livable and connected City. Land Use & Community Design Element The Land Use Element identifies an important Subarea of the City as the East of 101 Subarea, which covers all parts of the city that lie to the east of Highway 101. This Subarea covers over 1,600 acres, is defined by large parcels and is bordered on the east by the San Francisco Bay. The East of 101 subarea primarily contains employment-generating land uses such as office, life science and other R&D uses, logistics, food processing, manufacturing and other industrial uses. Most life science uses are located north of East Grand Avenue, with the Genentech campus being the largest corporate campus in East of 101. Key Issues and Opportunities The SSF 2040 GP Land Use & Community Design Element and the land Use Subarea Element identify a number of key issues, opportunities and policy positions relevant to land use within the broader East of 101 Area, including the Genentech Campus. These include the following: • Promote Urban Campus-Style Life Science Uses. Promote campus-style R&D uses for life science and other innovative companies • Community Gathering Spaces: Develop community-gathering spaces including plazas and pocket parks, near mobility hubs. Work with developers and property owners (including BART and Caltrain) near high-quality transit stops to provide community amenities, including privately- owned public open spaces, plazas, community gardens, recreational spaces, seating, lighting, public restrooms, water fountains, and other amenities for public use. • Reduce Reliance on Automobiles in East of 101: Evaluate implementation of “mobility hubs,” which are places where different travel networks (including walking, biking, transit, and shared mobility) meet and provide convenient connections to destinations at the Caltrain Station, South San Francisco BART Station, and the South San Francisco Ferry Terminal. • Maintain Roadway Connections: Maintain roadways within East of 101 and foster connectivity between East of 101 and the rest of South San Francisco. • Maintain High-Quality Design and Development Standards (Policy LU-5.2): Maintain high-quality design and development standards for R&D companies that support a mix of larger, higher- intensity campuses. • Require Campus Open Space (Policy LU-5.3): Require significant public and private open space and outdoor amenities. Work with development projects to provide publicly accessible, private open space as part of their site plans. • Improve Connectivity for R&D Workforces (Policy LU-5.5): Maintain vehicular infrastructure and improve circulation to accommodate the unique demands for R&D workplaces. • Collaboration with Property Owners (Policy LU-5.7): Collaborate with property owners and private developers to define collective action to achieve plan goals. The SSF 2040 GP Land Use & Community Design Element designates the Genentech Campus as “Genentech Master Plan”, a private campus with corporate headquarters, research and development facilities and offices. It also refers to the Genentech Campus Master Plan for more details. 158 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 7 SSF 2040 General Plan Program EIR Pursuant to the provisions of CEQA, the City of South San Francisco circulated a Draft EIR for the General Plan Update (the SSF 2040 GP Draft EIR) from June 24 through August 9, 2022. After the close of the public review period, the City of South San Francisco prepared a Final EIR consisting of the comments received on significant environmental issues. In September of 2022, the City prepared a Final EIR for the SSF 2040 General Plan Update, Zoning Code Amendments and Climate Action Plan. Prior to adopting the SSF 2040 General Plan, the City certified this EIR (SSF 2040 GP EIR, State Clearinghouse No. 2021020064). The SSF 2040 GP EIR is considered a Program EIR per CEQA Guidelines Sections 15168 and 15183. As such, subsequent activities pursuant to the SSF 2040 GP are subject to requirements under each of these CEQA Guidelines sections, including applicable mitigation measures identified in the SSF 2040 GP EIR to address potential cumulative environmental effects. The SSF 2040 GP EIR determined that development consistent with the SSF 2040 General Plan would primarily result in impacts that would be less than significant or reduced to a less than significant level with the implementation of General Plan policies and/or mitigation measures identified in that SSF 2040 General Plan EIR. Significant unavoidable impacts were identified in the SSF 2040 General Plan EIR for the following environmental topics: • Implementation of the SSF 2040 General Plan would conflict with or obstruct implementation of the applicable air quality plan • Implementation of the SSF 2040 General Plan would result in a cumulatively considerable net increase of criteria pollutants for which the region is nonattainment under applicable federal or State ambient air quality standards • Implementation of the SSF 2040 General Plan would conflict or be inconsistent with CEQA Guidelines Section 15064.3, subdivision (b) regarding vehicle miles traveled (VMT) Due to the potential for significant unavoidable impacts, a Statement of Overriding Considerations was adopted as part of the City’s approvals of the SSF 2040 General Plan. This prior Program EIR is incorporated by reference, and can be obtained from the City of South San Francisco Planning Division at 315 Maple Avenue, or online at: https://weblink.ssf.net/WebLink/DocView.aspx?id=501924&dbid=0&repo=SSFDocs 2020 Genentech Campus Master Plan In 2020, the City of South San Francisco adopted the 2020 Genentech Campus Master Plan (Master Plan). The Master Plan articulates a vision for new growth and development within the 207-acre Genentech Campus. It serves as a general guide for future placement and design of individual buildings and other Campus improvements, and its development program provides a basis for future project approvals. The Master Plan provides the City and Genentech with flexibility to implement the Master Plan on a project-by-project basis such that new elements of the Campus will maintain or exceed the high standards of design and construction that Genentech has already established at the Campus. The Master Plan also served as the basis for changes and amendments to the City’s Zoning Ordinance to ensure consistency and reliability between the Master Plan and the City’s Genentech Master Plan District zoning regulations. 159 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 8 A fundamental land use objective of the Genentech Campus Master Plan is to accommodate a responsible level of Campus growth and development that is consistent with the City’s land-use policies and regulations, but that secures Genentech’s ability to grow. Important provisions of the Master Plan related to Campus growth and development include the following. • The Master Plan establishes a facility-wide development standard of a maximum FAR of 1.0 times the total area of all lots within the Master Plan, providing for a buildout potential of the approximately 207-acre Campus of just over 9 million square feet, or an anticipated future construction of approximately 4.3 million square feet of net new building space. • The Master Plan recognizes that development of building space by land use type may vary over time, and permits flexibility in order to allow Genentech to respond most efficiently to its business needs, as long as the Campus-wide FAR is not exceeded. • The Master Plan recognizes several smaller neighborhood campuses (the Lower, Mid, Upper, West and South campus) as organizing elements of the overall Genentech Campus. Neighborhood campuses may emphasize a primary function or use, or may contain a more complex “campus-within-a-Campus” complete with offices, labs, amenity space and manufacturing capabilities. • The Master Plan identifies numerous Opportunity Sites where new development or redevelopment was considered most likely to occur. These Opportunity Sites generally represent surface parking lots, outmoded buildings, undeveloped infill sites and undeveloped hillside areas. • The Master Plan recognizes that DNA Way is the main public street to the Genentech Campus, but raised the possibility of closing DNA Way through the Upper Campus to create a more pedestrian-oriented place in the center of the Campus where people are prioritized over vehicles. • The Master Plan commits to an expansion of the capacity of Genentech’s currently robust TDM program, commensurate with new development. The Master Plan establishes a relationship between TDM performance and net new development. 2020 Genentech Campus Master Plan EIR The City of South San Francisco prepared and circulated a Draft EIR for the Genentech Campus Master Plan (Master Pan EIR). The public review and comment period on the Master Plan Draft EIR was from November through the end of December 2019. During that public review and comment period, the City of South San Francisco held a public hearing before the City Planning Commission on December 19, 2019. After the close of the public review period, the City of South San Francisco prepared a Final EIR consisting of the comments received on significant environmental issues. In May of 2020, the City prepared a Final EIR for the Genentech Master Plan. Prior to adopting the Genentech Master Plan in January 2020, the City certified the Master Plan EIR (State Clearinghouse No. 2017052064) and adopted CEQA findings, including adoption of a Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program. That EIR provides the environmental review necessary for approval of the proposed Genentech Campus Master Plan Update, approval of a zoning text amendment to the Genentech Master Plan zoning district, and approval of a Development Agreement between the City and Genentech. The Final EIR concluded that implementation of the Master Plan would result in the following environmental impacts that would be considered significant and unavoidable: 160 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 9 • A cumulatively considerable net increase of criteria pollutants for which the region is non- attainment • Construction -generated noise levels that may exceed noise standards • Level of service (LOS)-based traffic impacts that would conflict with applicable plans, ordinances or policies at several traffic study intersections, along freeway segments on US 101, and at freeway interchanges All other potentially significant impacts would be reduced to less than significant levels with regulatory requirements applicable to new development and mitigation measures recommended in the EIR. As was clearly indicated in the City’s CEQA Findings, the EIR for the Genentech 2020 Master Plan Update was a Program EIR as defined under CEQA Guidelines Section 15168 (the 2020 Program EIR). The 2020 Program EIR provides sufficient detail to enable the City and other responsible governmental agencies to make informed site-specific decisions on future individual development projects and other actions within the Genentech Campus. The City intends to use the streamlining and tiering provisions of CEQA to the maximum feasible extent, so that future environmental review of individual development projects within the Genentech Campus, and public improvement projects carried out in furtherance of the Campus Master Plan Update, are expeditiously undertaken without the need for repetitive and redundant environmental review. To the extent possible, the City of South San Francisco intends to rely on the 2020 Program EIR to provide environmental review for subsequent projects that are analyzed as part of that Prior EIR. When individual projects contemplated under the Master Plan Update are proposed, the City will consider whether those projects’ environmental effects were fully disclosed, analyzed and as needed, mitigated within this 2020 Program EIR. That consideration will determine whether the subsequent project is exempt from further CEQA review, whether the subsequent project warrants preparation of an Addendum to that EIR, or necessitates subsequent or supplemental environmental review.4 4 SSF, Genentech Master Plan Draft EIR, October 2019, page 1-10 161 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 10 Project Description The 2020 Genentech Master Plan continues to provide a useful framework for Genentech's growth and development, but Genentech believes that long-term planning for the Campus will be better integrated by acknowledging the addition of three new properties now owned or used by Genentech under long- term lease, as well as the proposed privatization of DNA Way, Point San Bruno Boulevard and the 1- block segment of Cabot Road between Allerton Avenue and DNA Way. In accordance with CEQA Guidelines Sections 15162 and 15164, the City of South San Francisco is amending the prior Genentech Master Plan EIR and the City’s SSF 2040 General Plan EIR through this Addendum. This Addendum addresses the activities and potential environmental effects associated with adding new properties to the Genentech Campus and its associated Master Plan, as well as the proposed privatization of the DNA Way, Point San Bruno Boulevard and Cabot Road rights-of-way, in the context of those prior EIRs. Project Site(s) Recent Property Acquisitions The South San Francisco Zoning Code contains provisions for the Genentech Master Plan that anticipate and generally require the rezoning of properties that are subsequently purchased or leased by Genentech. Accordingly, recent and anticipated near-term property acquisitions by Genentech necessitate rezoning. The following properties (see Figure 2) are proposed to be added to the Genentech Master Plan and rezoned to the Genentech Master Plan District: • The property now owned by Genentech and located at 333 Point San Bruno Boulevard (APN 015-250-410) consisting of approximately 0.5 acres, and APN 015-250-140, consisting of approximately 1.4 acres (previously known as the Lithotype property), • The property now owned by Genentech and located at 525 DNA Way (APN 015-250-210) consisting of approximately 3.1 acres (previously known as the Bakery Institute), and • The property now under long-term lease and with Genentech’s intent to acquire, located at 383- 393 East Grand Avenue (APN 015-250-390) consisting of approximately 4.7 acres (known as the Dome Construction site) These three properties total 9.7 acres, which are proposed to be added to the Genentech Master Plan and rezoned to the Genentech Master Plan District. Genentech’s recent acquisition of the property at 525 DNA Way does not include the short public easement connecting DNA Way to the Wind Harp Park site. The easement between the property at 525 DNA Way and the adjacent Genentech Parcel 19 remains as a public access easement. 162 Figure 2 Properties to be Added to the Genentech Master Plan Parcel 1 Parcel 8 Parcel 14 Parcel 16 Parcel 9 Parcel 7 Parcel 18 Parcel 17 Parcel 13 Parcel 2 Parcel 24 Parcel 23 Parcel 10 Parcel 20 Parcel 4 Parcel 15 Parcel 19 Parcel 12 Parcel 11 Parcel 22 Parcel 21 Parcel 25 Parcel 6C Parcel 6B Parcel 6A Parcel 5 Parcel 26 Parcel 26 Parcel 3 Parcel 6B Parcel 6C Parcel 6A 525 DNA Way (APN 015-250-210) 333 Point San Bruno Blvd. (APN 015-250-410 and 015-250-140 383-393 East Grand Avenue (APN 015-250-390) 163 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 12 Public Rights-of-Way At the time of preparation of the Genentech Master Plan and the SSF 2040 General Plan, those properties not owned or controlled by Genentech but within the boundaries of the Genentech Master Plan were accessed via the public streets of DNA Way, Point San Bruno Boulevard and/or the 1-block segment of Cabot Road between Allerton Avenue and DNA Way. With recent acquisitions, all properties within the Genentech Campus boundaries other than Wind Harp Park and the CalWater parcel are now owned or controlled by Genentech. DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road now only serve land uses that are internal to the Genentech Campus, except the Wind Harp property which is accessed from DNA Way. The CalWater property is primarily accessed via East Grand Avenue, but can also be accessed from DNA Way via the pedestrian access easement to the Wind Harp property. In exchange for financial compensation to the City, Genentech now seeks to acquire the rights-of-way underlying these three public streets and the public service easement on either side, and requests that the City vacate these streets as public roadways. The segments of existing roadways identified for acquisition and street vacation include the following: • Approximately 4,930 linear feet of the DNA Way right-of way from East Grand Avenue to Forbes Boulevard (approximately 6.78 acres at a 60-foot right-of-way width) • Approximately 720 linear feet of the Point San Bruno Boulevard right-of way from DNA Way to it cul-de-sac terminus (approximately 1.1 acres at a 66-foot right-of-way width), and • Approximately 512 linear feet of the Cabot Road right-of way from Allerton to DNA Way (approximately 0.67 acres at a 57-foot right-of-way width) These street rights-of-way, which total 8.55 acres (see Figure 3), are proposed to be added to the Genentech Master Plan and rezoned to the Genentech Master Plan District. Total Genentech Campus Additions (Land and Buildings) The combined total of newly acquired properties and street rights-of-way proposed to be added to the Genentech Master Plan and rezoned to the Genentech Master Plan District equals approximately 18.3 acres. With the addition of these properties and rights-of-way to the Campus Master Plan Area, the total Campus acreage will increase from 207 acres to approximately 225 acres. The addition of recent property acquisitions that contain existing buildings would increase the baseline of existing development that is included within the Master Plan District by approximately 103,800 square feet of currently built space, as shown in Table 1. 164 Figure 3 Street Rights-of-Way Proposed to be Added to the Genentech Master Plan Zoning District Parcel 1 Parcel 8 Parcel 14 Parcel 16 Parcel 9 Parcel 7 Parcel 18 Parcel 17 Parcel 13 Parcel 2 Parcel 24 Parcel 23 Parcel 10 Parcel 20 Parcel 4 Parcel 15 Parcel 19 Parcel 12 Parcel 11 Parcel 22 Parcel 21 Parcel 25 Parcel 6C Parcel 6B Parcel 6A Parcel 5 Parcel 26 Parcel 26 Parcel 3 Parcel 6B Parcel 6C Parcel 6A Cabot Road 29,370 sf 0.67 acres Point San Bruno Blvd. 48,053 sf 1.10 acres DNA Way 295,498 sf 6.78 acres 165 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 14 Table 1: Proposed Campus Master Plan Additions Acres Bldg. Square Feet 333 Point San Bruno Boulevard (former Lithotype) 1.9 38,900 525 DNA Way (former Baking Inst.) 3.1 32,500 383-393 East Grand Avenue (Dome Construction) 4.7 32,400 9.7 103,800 Rights-of-Way (total) 8.6 Total Additions to Master Plan: 18.3 103,800 Existing Campus: 207 4,800,3901 Total Campus, with Proposed Additions 225 4,904,190 Notes: 1. 2020 Baseline per Master Plan of 4,845,000 sf, plus 12,100 sf (B38 Security Building) and 79,900 (Clinical Supply Center Building), less demo of 121,200 sf (Building 84/Bayview Parcel) and demo of 15,411 sf (Building B39) = 4,800,390 Project Implications for Master Plan Buildout With the addition of these new properties, Genentech is not requesting an increase in the potential Campus buildout beyond the 9 million square feet assumed in the 2020 Master Plan. As stated on page 118 of the 2020 Campus Master Plan: “... the approximately 207-acre Campus shall be limited to 9,008,000 square feet, at an FAR of 1.0.” Although the proposed rezone of these properties would increase the total Campus by 18.3 acres (resulting in a corresponding 797,150 square feet of development potential at an FAR of 1.0), Genentech does not propose to increase the potential buildout and development capacity of the Campus beyond the 9,008,000 square feet as approved in the 2020 Master Plan. Furthermore, any future development on these additional new properties will be subject to the Master Plan’s TDM goals for the Campus, will comply with all parking and other provisions of the Genentech Master Plan zoning district, and will be further regulated by the Master Plan’s Trip Cap, which is equivalent to a maximum of 5,216 total drive-alone trips arriving at the Campus during the AM peak hour. The proposed rezoning is consistent with all applicable SSF Municipal Code provisions for adding parcels to the Master Plan. Physical Implications of Proposed Rezoning (the Project) Genentech does not have any pending project applications or pre-applications for new Campus development involving any of the three recently added properties that are proposed for rezoning. The existing buildings on these properties may be repurposed for Genentech’s use, but no redevelopment of these properties is currently proposed. Similarly, Genentech does not have any pending project applications or pre-applications for new Campus development involving any of the rights-of-way of the proposed street acquisitions. Pursuant to the Project, the existing streets at DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road will remain, but as private streets primarily serving the Genentech Campus. Genentech is not currently proposing removal, closure or partial closure of these streets for public travel, but approval of 166 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 15 the Project would give Genentech the right to close these streets to pubic through traffic at Genentech’s discretion, as long as public access to the Wind Harp is maintained. Underground public infrastructure that exists within public utility easements, many of which lie beneath or adjacent to these proposed street acquisitions, will be unaffected in the short-term. Genentech is not currently proposing any alteration or realignment of these public utility easements. In short, the proposed Project is limited to the following actions: • Amending the South San Francisco General Plan by removing three street segments (DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road) as public roads • Adding six properties to the Genentech Master Plan, and rezoning these properties to the Genentech Master Plan District • Genentech’s acquisition from the City of three current public rights-of-way underlying DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road, including the public service easement on either side of these roadways • City vacation of these street rights-of way No physical change to the Genentech Campus or to these existing streets is currently proposed as part of the Project. Cumulative Development Potential Over the longer term, it is likely that Genentech may seek to include the three newly added properties and potentially segments of DNA Way, Point San Bruno Boulevard and Cabot Road into future Campus redevelopment projects. However, no such redevelopment project is included as part of the current Project, and Genentech has not filed any project applications or pre-applications for such redevelopment projects. When any Campus redevelopment projects that involve these newly acquired properties and/or rights-of-way are proposed, such projects will be subject to the City’s approval and appropriate environmental review process at that time. As noted above, any Campus redevelopment projects that involve these newly acquired properties will be reviewed for consistency with all applicable provisions of the Genentech Campus Master Plan, including the Campus-wide maximum FAR of 1.0, applicable SSF Municipal Code zoning provisions, and the Genentech Master Plan’s Trip Cap and TDM performance requirements. Any Campus redevelopment projects that involve these newly acquired properties will also be subject to individual CEQA review when they may be proposed. Consistent with CEQA Guidelines, such subsequent CEQA review will then consider the extent to which such redevelopment projects may result in new or more severe environmental effects not previously disclosed in the prior Genentech Master Plan Program EIR. Potential for Future Roadway Closures The acquisition of public rights-of-way and City vacation of the public streets at DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road creates the potential that Genentech (as the new owner of these streets) may decide to close Point San Bruno Boulevard and the short segment of Cabot Road, and partial closure of DNA Way east of Wind Harp, to public through traffic. Although Genentech is not currently proposing any street closures at this time, approval of the Project and City vacation of 167 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 16 these streets would enable Genentech to close Point San Bruno Boulevard and the short segment of Cabot Road, and to partially close DNA Way east of Wind Harp to public through travel, at its discretion. The potential for a future street closure/partial street closure strategy is generally consistent with the planning direction provided in the Genentech Campus Master Plan for creating a more pedestrian- oriented place in the center of the Campus. The removal of non-Genentech through traffic on DNA Way through the center of the Campus could create new opportunities for implementing placemaking strategies and people-focused outdoor places as identified in the Genentech Master Plan, such as courtyards, plazas and terraces; improved pedestrian connections between buildings; and outdoor seating areas, terraced gardens and open lawn space with prominent sculpture and artwork (see Figure 4). Short-Term Traffic Implications of a Potential Future Road Closure The small segment of Cabot Road between Allerton Avenue and DNA Way is a local street that provides a connection between DNA Way and Allerton Avenue. Land uses adjacent to this segment of Cabot Road are Genentech-based childcare facilities, warehouses and small offices. Potential closure of the small segment of Cabot Road to public through traffic would not limit Genentech-based traffic from accessing these childcare facilities, warehouses and small office space, which is the primary traffic that uses this short segment of roadway. Although no traffic counts for this segment of Cabot Road have been conducted, closure of this road as a public cut-through route between Allerton Avenue and DNA Way would have little to no effect on public traffic conditions or area-wide circulation. East Grand Avenue, approximately 950 feet to the south on Allerton Avenue, will continue to provide a connection between Allerton Avenue and the portion of DNA Way to remain open to public use. The segment of Cabot Road on the opposite (west) side of Allerton Avenue is about a 1-block long cul- de-sac serving non-Genentech light industrial and R&D uses. Genentech’s potential road closure of Cabot Road east of Allerton would have no effect on public use of Cabot Road west of Allerton. The potential traffic implications of partial closure of DNA Way and closure of Point San Bruno Boulevard to public through travel has been analyzed by the transportation consultants at Fehr & Peers under current and anticipated cumulative conditions (see Appendix x).5 Based on this analysis, a potential partial closure of DNA Way would result in negligible effects on current traffic conditions and area-wide circulation. Both DNA Way and Point San Bruno Boulevard serve a low volume of mostly Genentech travel, and most of those trips would be redistributed within the Campus. While some non- Genentech pass-through vehicle trips (about 60 to 120 per day) would be diverted to adjacent streets, this effect is expected to be negligible. Access to the Bay Trail and surrounding land uses would be unaffected. These conclusions are addressed in detail below. 5 Fehr & Peers, Analysis of Potential Closure of DNA Way and Point San Bruno Boulevard, February 10, 2025 168 Figure 4 Genentech Campus Master Plan – Concept Plan for Pedestrian-Oriented Space in the Campus Core Source: SSF, Genentech Campus Master Plan, 2020 169 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 18 Existing Traffic Volumes Fehr & Peers collected traffic counts on DNA Way near Genentech’s Building 34 and on Point San Bruno Boulevard during a full week period in early 2024. These traffic counts measured traffic volumes across peak and off-peak hours, and on weekdays versus weekends. These traffic counts found that DNA Way serves about 2,500 to 3,500 vehicles per weekday, and fewer than 600 vehicles on weekend days. The significant difference in weekday versus weekend volumes illustrates DNA Way’s role in serving the Genentech Campus, which has far less people present on weekends. Overall, DNA Way functions as a minor local-serving street and serves a fraction of traffic volumes as compared to other, more major streets in the East of 101 Area such as Oyster Point Boulevard and East Grand Avenue, which typically serve over 20,000 vehicles per day (about five to eight times the traffic volumes on DNA Way). Point San Bruno Boulevard, which is accessed from DNA Way, serves about 2,200 to 2,600 vehicles per weekday, and approximately 300 to 400 vehicles on weekend days. Like DNA Way, the significant difference in weekday versus weekend volumes illustrates Point San Bruno Boulevard’s role in serving the Genentech Campus, particularly Parking Structure 2 and adjacent surface parking lots. Travel Destinations DNA Way primarily serves travel associated with the Genentech Campus. About 95 percent of current trips on DNA Way start or end within the Genentech campus along DNA Way, and only about 5 percent (or about 180 trips on a typical midweek day) pass through the Campus to somewhere else. Pass- through travel includes trips with an origin and destination beyond DNA Way. The pass-through travel is generally higher in the northbound direction compared to southbound. Some proportion of this pass- through travel is still associated with Genentech operations, including trips associated with gRide buses, security vehicles, carpools, vanpools, ride-hailing services, intra-campus freight and deliveries. For these reasons, the total volume of non-Genentech trips along DNA Way is likely between 60 and 120 trips per day. Summary of Short-Term Effects of Partial Closure of DNA Way and Point San Bruno Boulevard The summary potential effects of partial closure of DNA Way and closure of Point San Bruno Boulevard to non-Genentech, public through travel is presented below. This analysis is provided because closure/partial closure of these streets is a reasonably foreseeable outcome of Genentech’s acquisition of these rights of way. • Closure of the short segment of Cabot Road between Allerton Avenue and DNA Way to public through traffic will not affect Genentech’s access to its childcare facilities, warehouse or office space, which this segment of roadway serves. The public traffic connection between Allerton Avenue and DNA Way via East Grand Avenue (less than 1,000 feet to the south) will remain unaffected and available for public use. • Partial closure of DNA Way and closure of Point San Bruno Boulevard to through traffic would be implemented as part of the Genentech Master Plan, together with changes to buildings and parking facilities, with a consolidation of Campus parking garages on the periphery of the Campus. The overall scope of these changes is consistent with the Master Plan’s Transportation Impact Analysis. Public access on DNA Way will remain available from East Grand Avenue to the Wind Harp or to the Building 35 parking area. • Partial closure of DNA Way and closure of Point San Bruno Boulevard would result in the redistribution of certain Genentech-based through traffic within the Genentech Campus. Roadway connections to the Campus would be maintained along Forbes Boulevard, Allerton Avenue and East Grand Avenue, and these other roadway connections would facilitate auto, 170 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 19 freight and emergency vehicle access. Emergency vehicle access through the Campus would also be maintained via a network of service roads consistent with the fire code.  Partial closure of DNA Way and closure of Point San Bruno Boulevard would result in displacement of some pass-through traffic to other nearby streets like Forbes Boulevard, East Grand Avenue and Allerton Avenue. The currently estimated 60 to 120 daily pass-through vehicle trips along DNA Way would likely divert to Forbes Boulevard, Allerton Avenue and East Grand Avenue. This diversion equates to fewer than 10 vehicles per hour during peak hours, and is unlikely to be noticed among the hundreds to thousands of vehicles using these streets during peak hours.  The San Francisco Bay Trail contains roughly 350 miles of trails that circle the San Francisco Bay and serves hikers, joggers, bicyclists, skaters, and wheelchair users. The trail includes a segment that runs along the eastern edge of the Campus’ waterfront, with a small parking lot at the end of Forbes Boulevard near DNA Way. The partial closure of, or limiting access to DNA Way would not impact access to the San Francisco Bay Trail. Vehicle access to the Bay Trail would be maintained via Forbes Boulevard, and bicycle access would be maintained via Forbes Boulevard and the parallel trail through the Campus. Publicly accessible Bay Trail parking at the end of East Grand Avenue would also be unaffected. Longer-Term (Cumulative) Traffic Implications of Future Road Closure/Partial Closure Fehr & Peers has relied on the Cumulative plus Project traffic scenario from the 2020 Genentech Master Plan EIR to evaluate the potential impacts of partial closure of DNA Way and Point San Bruno Boulevard on the surrounding roadway network under cumulative (or buildout) conditions. For this analysis, it is assumed that the Genentech Master Plan EIR’s evaluation is representative of cumulative conditions, although Genentech’s trip generation and distribution will continue to develop as Campus planning efforts evolve. Genentech Cumulative Trips The cumulative scenario as presented in the Genentech Master Plan EIR forecasts the following traffic split for travel patterns to the Genentech Campus:  AM Peak Ingress: Approximately 55% of Genentech’s AM peak hour trips under Campus buildout are expected to access the Genentech campus via East Grand Avenue (with 20% of these morning trips turning left off of East Grand to access garages along DNA Way, and the remaining 35% of morning trips travel straight on East Grand to access both non-Genentech facilities and Genentech parking structures). The other 45% of Genentech’s AM peak hour trips access the Genentech Campus from the north (about 21% travel eastbound on Forbes, while the remaining 24% travel from Oyster Point, turning right onto Gull Drive and then left onto Forbes).  PM Peak Egress: Approximately 58% of Genentech’s PM peak hour trips under Campus buildout are expected to exit the Genentech Campus by funneling onto westbound East Grand Avenue at DNA Way. The other 42% of Genentech’s PM peak hour trips are expected to exit via the northern periphery of the Campus, with 23% continuing straight onto westbound Forbes and eventually turning right at Forbes/East Grand, and the remaining 19% traveling northbound on Gull to Oyster Point. Table 2 shows the Cumulative (including Genentech Campus buildout) trips along DNA Way at the southern end of the DNA Way corridor near East Grand Avenue, during the morning and evening commute peak hour. The number of trips for both Genentech and non-Genentech pass-through traffic 171 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 20 are forecast to increase proportionally with the increase in Genentech-generated trips. Pass-through traffic is determined as a percent of Genentech trips at DNA Way/East Grand Avenue because the land uses east of DNA Way/East Grand Avenue are almost exclusively owned and used by Genentech (except for the San Francisco Bay Trail along the Bay shore). Table 2: Cumulative + Project Trips along DNA Way between East Grand and Cabot Road AM Peak Hour PM Peak Hour Total Trips, Cumulative plus GNE Buildout 1,061 813 Genentech Cumulative Pass-Through Trips 24 (2%) 16 (2%) Non-Genentech Cumulative Trips 11 (1%) 41 (5%) Note: Total Trips are derived from the Genentech Master Plan EIR, and the Genentech cumulative pass-through trips and non-Genentech cumulative trips are presumed to be within plus/minus 30 percent of the volume reported here As shown, the non-Genentech pass through trips account for roughly 2% of total cumulative traffic in the AM peak hour, and 5% of total cumulative traffic in the PM peak hour on DNA Way. The partial closure of DNA Way would necessitate changes in planned access to future Genentech parking structures as was analyzed in the Genentech Master Plan EIR, and these changes would affect the anticipated distribution of future Genentech trips. Most importantly, those parking structures that the Genentech Master Plan anticipated to be developed along the south and west portion of DNA Way would instead most likely be accessed via East Grand Avenue. Approximately 75% of Genentech-based trips along DNA Way would likely shift onto East Grand Avenue to the Genentech South Campus, where access to more parking will be available. Genentech-based trips entering and exiting from the northern periphery of the Campus would not change, as the share of parking accessible from the north would remain constant. Summary of Cumulative Effects of Partial Closure of DNA Way and Closure of Point San Bruno Boulevard Based on these assumptions, a summary of the potential effects of partial closure of DNA Way and closure of Point San Bruno Boulevard and the short segment of Cabot Road under cumulative conditions is presented below. This analysis is provided because closure/partial closure of these streets is a reasonably foreseeable outcome of Genentech’s acquisition of these rights of way.  Closure of the short segment of Cabot Road between Allerton Avenue and DNA Way to public through traffic will have little effect on cumulative traffic conditions. This roadway segment serves Genentech land uses (childcare, warehouse and office space). The public traffic connection between Allerton Avenue and DNA Way via East Grand Avenue (less than 1,000 feet to the south) will remain unaffected and available for public use under cumulative conditions.  Closure of DNA Way under a cumulative scenario will have the same impact on Genentech- based trips as evaluated under existing conditions. These trips will be redirected towards the periphery of the Genentech Campus, but auto, freight and emergency access will be maintained through the Campus via other connections. There will continue to be a north-south private street connecting Forbes Boulevard and East Grand Avenue on the east side of the Campus even if portions of Point San Bruno Boulevard are closed. This connectivity will maintain the loop configuration of the internal circulation network and allow Genentech employee commute trips, 172 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 21 Genentech service trips and emergency vehicle trips to maneuver around Campus in effectively the same way that they do now. • There would be no change to Genentech-based trips on the north side of the Campus. Genentech’s vehicle travel on Oyster Point, Gull Drive and Forbes Boulevard would generally remain the same as presented in the Master Plan EIR. • Partial closure of DNA Way and closure of Point San Bruno Boulevard would add significantly more Genentech-based trips along East Grand Avenue to the Genentech South Campus, where this Genentech traffic would be redistributed to existing and future parking garages in the southerly portion of the Campus. Retaining a north-south private street between East Grand Avenue and Forbes Boulevard on the east side of the Campus will provide an alternate route to East Grand Avenue (i.e., to Oyster Point Boulevard) for Genentech employee commute trips traveling to and from parking facilities on the South Campus, consistent with travel patterns evaluated in the Genentech Master Plan. • Traffic volumes under the cumulative condition on East Grand Avenue to the west of the DNA Way intersection (including traffic attributed to Genentech Campus buildout) would remain consistent with the analysis as presented in the Genentech Master Plan EIR, even with the partial closure of DNA Way. • The cumulative non-Genentech pass-through vehicle trips expected along DNA Way in the AM and PM peak hours would divert to Forbes Boulevard, Allerton Avenue and East Grand Avenue. Under the cumulative scenario, the volume of these AM peak hour diversions remain small and unlikely to impact traffic operations along any of these alternative routes. The cumulative PM peak hour diversion of non-Genentech pass-through traffic volumes are higher, but would still only contribute an increase of about 1 percent to 2 percent of traffic along these alternative routes, and would be unlikely to cause a change in operational conditions along Forbes or Allerton beyond the forecasts presented in the Genentech Master Plan EIR under cumulative conditions. • The partial closure of DNA Way would not impact cumulative access to the San Francisco Bay Trail, as vehicle access would be maintained via Forbes Boulevard and bicycle access would be maintained via Forbes Boulevard and the parallel trail through the Campus. Publicly accessible Bay Trail parking at the end of East Grand Avenue would also remain unaffected. Increased vehicle volumes along the northerly fork of East Grand Avenue toward Parking Structure A in the South Campus may result in this northerly fork of East Grand Avenue being a less desirable bike route. However, the northerly fork of East Grand Avenue is not designated or marked as a bike route, whereas bike access to the Bay Trail is currently facilitated via existing bike sharrows marked along the southern fork of East Grand through the South Campus, which connect to the Bay Trail near the Old San Bruno Channel pedestrian bridge. Project Approvals Required South San Francisco approvals needed for the Project include the following: • General Plan Amendment to remove the portion of DNA Way east of Wind Harp, Point San Bruno Boulevard and the short segment of Cabot Road as public streets • Rezoning of DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road to the Genentech Master Plan District 173 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 22 • Rezoning of three newly acquired or Genentech-controlled properties to the Genentech Master Plan District • Transfer of ownership of the rights-of-way (including the adjacent pubic service easements) on for DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road to Genentech • Approval of a license agreement that would permit continued public access to the streets in the immediate term These requested Project approvals are described in detail below. South San Francisco 2040 General Plan Amendments Like the rest of the Genentech Campus, the three parcels that were recently acquired by Genentech already have a General Plan land use designation of Business Technology Park, and no General Plan amendment is necessary to re-designate these properties as part of the Genentech Campus. Proposed Roadway Network Diagram The Mobility and Access chapter of the SSF 2040 General Plan contains a roadway network diagram (Figure 14: Proposed Roadway Network, page 182). A modification of this General Plan diagram is required to remove DNA Way as an ‘Existing Connector (Collector)’ roadway (see Figure 5). As defined in the General Plan, “Connector (Collector) streets are primary or secondary streets within the city that serve as corridors to major destinations.” While the Genentech Campus is a major destination, DNA Way, Point San Bruno Boulevard and Cabot Road are overwhelmingly used by employees of Genentech. These Genentech employees will maintain access to the Campus via other existing streets that surround the Campus (i.e., Forbes Boulevard, Allerton Avenue and East Grand Avenue). Other Diagrams The SSF 2040 General Plan uses the same map of the base street network throughout all figures of the General Plan to provide context to the reader. This base map includes a legend that identifies DNA Way and Point San Bruno Boulevard as Connector Streets. Removal of portions of DNA Way, Point San Bruno Boulevard and Cabot Road as public streets from the base map on these other General Plan figures would not alter or change the relevant information presented of these other General Plan figures. South San Francisco Zoning Map Changes Unlike the rest of the Genentech Campus that is zoned as ‘Genentech Master Plan District’ (GMPD), the three parcels recently acquired by Genentech have a current zoning designation of ‘Business Technology Park – Medium’ (BTP-M). To better incorporate these parcels into the Genentech Master Plan, Genentech seeks to have these three properties re-zoned to ‘Genentech Master Plan District’, like all other properties (other than Wind Harp and the CalWater parcel) within the Genentech Campus (see Figure 6). As current public streets, DNA Way, Point San Bruno Boulevard and Cabot Road do not have any applicable City zoning designations. To better incorporate these parcels into the Genentech Master Plan, Genentech seeks to have these roadway rights-of-way similarly zoned as ‘Genentech Master Plan District’. 174 Figure 5 Proposed Amendments to SSF General Plan Diagram Source: SSF 2040 General Plan SHAPE SSF: 2040 GENERAL PLAN SUB-AREAS 6 98 99 EAST OF 101 The East of 101 sub-area covers all parts of the city that lie to the east of Highway 101. By far the largest sub-area geographically, it covers over 1,600 acres, is defined by large parcels, and is bordered by the San Francisco Bay. The area primarily contains employment- generating land uses and includes office, life science and other R&D uses, logistics, food processing, manufacturing, and other industrial uses. Most life science uses are located north of East Grand Avenue, with the Genentech campus being the largest corporate campus in East of 101. At the present, South San Francisco is home to over 200 biotech companies, and there is room for continued expansion of these uses, particularly on infill sites and in planned campus environments, such as Oyster Point. South of East Grand Avenue, there are warehousing, logistics, manufacturing, and other industrial land uses that provide a diversity of employment opportunities. As of 2021, no residential zoning exists in this sub-area and there are no housing units or residents, though as part of the General Plan update, there is opportunity to introduce residential uses to East of 101 to create more complete neighborhoods with options for living, working, and recreation. Vision Statement East of 101 is a well-connected innovation district with a diverse mix of uses that serves as a model of sustainability, resilience, multimodal mobility, and economic opportunity. Open Space Parks & Recreation Public General Plan Land Use Designations Business Technology Park High East of 101 Mixed Use Business and Professional Office Business Technology Park Community Commercial Mixed Industrial Mixed Industrial High Oyster Point Coastal Commercial East of 101 Transit Core Streams The General Plan advances the community vision of maintaining districts for R&D and industrial growth, while creating new neighborhoods that allow residential and supportive amenities and services. This vision allows for the growth and continued success of the life sciences as an economic engine for the city. Life science companies may intensify development north of East Grand Avenue, closer to key transportation corridors, in exchange for community benefits and district improvements. By allowing the life sciences area to grow through intensification rather than expanding its geographic area, the General Plan enables transportation, trade, and industrial uses to retain land area and continue to thrive in East of 101. These businesses, primarily to the south of East Grand Avenue, are supported by the City in efforts to adjust to emerging economic conditions and build long-term resilience to sea level rise and flooding. The General Plan creates new mixed use neighborhoods along South Airport Boulevard. Providing opportunities for living in East of 101 supports a long-term vision for an innovation district, places more housing near jobs and high-quality transit, and creates opportunity for a range of new housing for different income levels. Along South Airport Boulevard, residents will benefit from streetscape improvements and urban design that create a high-quality public realm along this currently commercial and industrial corridor. The General Plan supports the well- being of new East of 101 residents by providing convenient access to new parks and gathering spaces, neighborhood-serving retail and amenities, and public services. Caption Caption Gateway Childcare Center Oyster Point Marina New DevelopmentCurrent General Plan Land Use Designations - East of 101 SubArea SHAPE SSF: 2040 GENERAL PLAN SUB-AREAS 6 98 99 EAST OF 101 The East of 101 sub-area covers all parts of the city that lie to the east of Highway 101. By far the largest sub-area geographically, it covers over 1,600 acres, is defined by large parcels, and is bordered by the San Francisco Bay. The area primarily contains employment- generating land uses and includes office, life science and other R&D uses, logistics, food processing, manufacturing, and other industrial uses. Most life science uses are located north of East Grand Avenue, with the Genentech campus being the largest corporate campus in East of 101. At the present, South San Francisco is home to over 200 biotech companies, and there is room for continued expansion of these uses, particularly on infill sites and in planned campus environments, such as Oyster Point. South of East Grand Avenue, there are warehousing, logistics, manufacturing, and other industrial land uses that provide a diversity of employment opportunities. As of 2021, no residential zoning exists in this sub-area and there are no housing units or residents, though as part of the General Plan update, there is opportunity to introduce residential uses to East of 101 to create more complete neighborhoods with options for living, working, and recreation. Vision Statement East of 101 is a well-connected innovation district with a diverse mix of uses that serves as a model of sustainability, resilience, multimodal mobility, and economic opportunity. Open Space Parks & Recreation Public General Plan Land Use Designations Business Technology Park High East of 101 Mixed Use Business and Professional Office Business Technology Park Community Commercial Mixed Industrial Mixed Industrial High Oyster Point Coastal Commercial East of 101 Transit Core Streams The General Plan advances the community vision of maintaining districts for R&D and industrial growth, while creating new neighborhoods that allow residential and supportive amenities and services. This vision allows for the growth and continued success of the life sciences as an economic engine for the city. Life science companies may intensify development north of East Grand Avenue, closer to key transportation corridors, in exchange for community benefits and district improvements. By allowing the life sciences area to grow through intensification rather than expanding its geographic area, the General Plan enables transportation, trade, and industrial uses to retain land area and continue to thrive in East of 101. These businesses, primarily to the south of East Grand Avenue, are supported by the City in efforts to adjust to emerging economic conditions and build long-term resilience to sea level rise and flooding. The General Plan creates new mixed use neighborhoods along South Airport Boulevard. Providing opportunities for living in East of 101 supports a long-term vision for an innovation district, places more housing near jobs and high-quality transit, and creates opportunity for a range of new housing for different income levels. Along South Airport Boulevard, residents will benefit from streetscape improvements and urban design that create a high-quality public realm along this currently commercial and industrial corridor. The General Plan supports the well- being of new East of 101 residents by providing convenient access to new parks and gathering spaces, neighborhood-serving retail and amenities, and public services. Caption Caption Gateway Childcare Center Oyster Point Marina New DevelopmentProposed General Plan Land Use Amendment - East of 101 SubArea 175 Figure 6 Proposed Re-zoning to Genentech Master Plan District Source: SSF Zoning Map, accessed at: zoning.ssf.net Existing Zoning Proposed Zoning Legend: Genentech Master Plan (GMPD) Business Tech. Park - Medium (BTP-M) Mixed Indust. - High (MI-H) Public/Quasi Public (QPP) Parks & Recreation (PR) 176 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 25 Genentech Master Plan Amendments Genentech Campus Boundaries At the time of preparation of the Genentech Master Plan in 2020, the three new properties now owned or controlled by Genentech were considered out-parcels, and not included in the Master Plan. A modification of the Genentech Master Plan is required to incorporate these three properties (which total approximately 9.7 acres of land) into the Genentech Master Plan (see Figure 7: Modified Campus Boundary and Neighborhood Campuses). Chapter 3: Urban Design Page 45, Increasing Pedestrian Connectivity and Making Places for People - update the third bullet to read: • A shared-street concept may be considered, whereby DNA Way is scheduled for partial closure to general vehicle traffic during specified times of the day, and opened as a pedestrian-only environment with accommodations for emergency vehicles and shuttle and bus access. A pedestrian oriented Campus may be achieved by vacating DNA Way, Point San Bruno Boulevard and Cabot Road. With review and approval by the City, these roads may remain open, partially open, or closed, as long as proper emergency vehicle, and shuttle and bus access is provided. Page 53, Pedestrian and Bicycle Facilities - amend to read: • Additionally, Genentech intends to engage the City in a conversation about the potential for a daily closure of seek vacation and privatization of portions of DNA Way, Point San Bruno Boulevard and Cabot Road where it passes through the central portion of the Upper Campus. These road segments currently only serve the Genentech Campus and Wind Harp. The purpose of this road closure these street vacations would be to further align the design of the central Campus with the urban design objectives listed in Section 3.2 and to work with the City to make this road segment these roadway segments into a more pedestrian-oriented place where people are prioritized over vehicles. The public road closure might only occur between the morning and afternoon peak traffic hours, so that regular vehicle traffic would continue during non-peak hours (including at night) Page 63 - Placemaking at Each Neighborhood Campus at Upper Campus Core - replace the 4th bullet point as follows: • Consider partial closure of DNA Way within the Campus core area to vehicle traffic during scheduled times of the workday, better establishing this area as a pedestrian priority zone. Consider privatization of DNA Way, Point San Bruno Boulevard and Cabot Road within the Campus Core area to support and prioritize a pedestrian oriented campus. Chapter 4: Transportation, Circulation and Parking Page 89, Local Street System - amend the 3rd bullet as follows: • DNA Way is a two-way road connecting East Grand Avenue with Forbes Boulevard passing through the center of the Genentech Campus. A City approved plan will need to be implemented if the street is partially closed to through traffic. 177 Figure 7 Modified Campus Boundary and Neighborhood Campuses 2020 GENENTECH CAMPUS MASTER PLAN 16 CHAPTER 2: LAND USE Figure 2-1: Campus Boundary and Neighborhood Campuses 178 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 27 Page 95, Potential DNA Way Closure – amend as follows: • DNA Way is the main public street through the Campus and provides public circulation from East Grand Avenue to Forbes Boulevard. Genentech-related vehicles are the primary users of this road. As part of the Urban Design strategy of this Master Plan Update, Genentech is exploring the possibility of a daily closure of DNA Way to public through traffic east of Wind Harp, where it passes through the central portion of the Upper Campus. The purpose of this partial road closure would be to make this road segment, which bisects the center of the Campus, into a more pedestrian-oriented place where people are prioritized over vehicles. The public road closure might only occur between the morning and afternoon peak traffic hours (e.g., between 10:00 AM and 3:30 PM) so that public circulation would continue during non- closure hours (including at night). During the non-closure hours, DNA Way would be fully open to public traffic, and would provide non-peak commuters with convenient access to all on- Campus parking facilities. The road closure would only affect private vehicles. All public transit and Genentech transit services, including the gRide shuttle system and Genentech service vehicles, would continue to use DNA Way at all times in dedicated and clearly identified lanes. With implementation of a broader parking garage strategy, commuters and visitors to the Campus would be able to access new parking facilities around the outer edges of the Campus, and would not need to drive through the Upper Campus at all. Allerton, Forbes and East Grand Avenue would be unaffected. Within the Upper Campus (i.e., between the entrance to Building 35 and the intersection at Point San Bruno Boulevard near the B30 Quad buildings), the former DNA Way right-of-way would be designed to look and feel “different” than a traditional public street. This design treatment may include special pavers rather than asphalt, dedicated bike lanes, rolled curbs, and adjacent pedestrian amenities. These design strategies are intended to allow this former street segment to function as a designated pedestrian environment. , shared with transit and emergency vehicle use. Page 100 – amend the 2nd bullet as follows: Considering a shared-street concept whereby portions of the Campus are DNA Way is scheduled for closure to general traffic, and opened as pedestrian environments with accommodations for shuttles, service vehicles, and buses only. For people to be comfortable and safe, designs for these spaces will prioritize pedestrians (e.g., special paving to demarcate a shared pedestrian/auto-zone, and landscaped bulb-outs within the street at pedestrian pathway intersections) Other figures and maps throughout the Genentech Master Plan will need to be updated to include the additional properties, including the privatized streets, including the following. • Figure 1-2 - General Plan Land Use Diagram • Figure 1-3: SSF Zoning Designation • Table 2-1: Genentech Campus and Neighborhood Campuses (acres) • Figure 2-1: Campus Boundary and Neighborhood Campuses • Figure 2-2: Zoning Map • Figure 2-4: Master Plan Update Opportunity Sites • Figure 3-1 Illustrative Example of Campus-wide Placemaking Strategies 179 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 28 • Figure 4-2: Public Transit Services • Figure 4-4: Local Bicycle and Trail Facilities Pubic Street Vacation The City of South San Francisco’s Engineering Division has oversight of permits that affect the City's right-of-way or infrastructure, including the granting of, or vacation of city easements and rights-of-way. The Engineering Division staff will review and confirm that all requirements for a street vacation/partial street vacation are met. These requirements include: • An Easement Vacation Request form filled out and signed • Title reports of all parcels affected • Plat and legal descriptions with metes and bounds of the easements to be vacated, prepared by a California Registered Civil Engineer or a licensed Land Surveyor in the State of California • Fees and deposits for staff time and land surveyor review costs • The Office of the City Manager may be involved to negotiate a purchase-sales agreement of the vacated roadways When the Engineering staff/City Manager confirms that all requirements for street vacation are met, the Planning Commission will need to determine whether the proposed street right-of-way vacation is consistent with the City’s General Plan, pursuant to California Government Code Section 65402. This determination would be noticed as a public hearing. If the Planning Commission determines that the proposed street vacation is consistent with the City’s General Plan, the City Council would then conduct a public hearing to consider making findings that the streets are unnecessary for present or future public use, and to consider adoption of a resolution for street vacation and a purchase/sale agreement. Genentech or their title company would then record the City’s Vacation Resolution at the San Mateo County Recorder’s Office. 180 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 29 Purpose of this Addendum and CEQA Requirements The purposes of this CEQA Addendum are to; • update the Project Description provided in the SSF 2040 General Plan EIR and the Genentech Campus Master Plan EIR (together the Prior EIRs) to include the addition of six properties to the Genentech Master Plan, and the potential privatization and partial closure of DNA Way, and closure of Point San Bruno Boulevard and a short segment of Cabot Road, and • to address the potential environmental effects of those activities as described in the Project Description, in light of the analysis presented in these Prior EIRs This document has been prepared in accordance with CEQA Guidelines sections 15162 and 15164. CEQA Guidelines section 15162(a)] provides that, for a project covered by a previously certified EIR, preparation of a Subsequent EIR rather than an Addendum is required if one or more of the following conditions occur: 1. Substantial changes are proposed in the project which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; 2. Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or negative declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects; or 3. New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time of the previous EIR was certified as complete or the negative declaration was adopted, shows any of the following: a) The project will have one or more significant effects not discussed in the previous EIR or negative declaration; b) Significant effects previously examined will be substantially more severe than shown in the previous EIR or negative declaration; c) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or d) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR or negative declaration would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measures or alternative. Section 15164(b) of the CEQA Guidelines states: “An addendum to an adopted negative declaration or EIR may be prepared if only minor technical changes or additions are necessary or none of the conditions described in Section 15162 calling for the preparation of a subsequent EIR or negative declaration have occurred”. Based on the analysis presented herein, the City of South San Francisco has determined that an Addendum to the SSF 2040 General Plan EIR and the Genentech Master Plan EIR is the appropriate CEQA document to address the proposed Project. None of the conditions described in CEQA Guidelines 181 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 30 Section 15162 calling for the preparation of a Subsequent EIR would occur with implementation of the Project. This environmental analysis relies on the analyses completed in these Prior EIRs, directly referencing those Prior EIRs as appropriate. Pursuant to CEQA Guidelines section 15164(c), this Addendum is not required to be circulated for public review. A Notice of Determination will be filed with the State Clearinghouse at the State of California Office of Planning and Research upon the City’s approval of the Project. Application of Previous Environmental Review Prior CEQA Findings – SSF General Plan EIR The SSF 2040 General Plan that was approved by the City in 2022 anticipates approximately 14,312 net new housing units and approximately 42,297 net new employment opportunities in the City by year 2040. Amendments to the City Zoning Code were made concurrent with the General Plan to incorporate a number of major environmental policies, and a Climate Action Plan identifies strategies and measures to reduce GHG emissions generated by existing and future uses in the City. The General Plan EIR concluded that the SSF 2040 General Plan was largely self-mitigating in that the policies, actions and strategies in the General Plan Update, Zoning Code Amendments and Climate Action Plan recognize the importance of the natural environment, and are designed to protect the environment and environmental resources. In certain instances, mitigation measures are included in the GP EIR to reinforce and enhance the environmental protections identified in the General Plan’s policies, actions, and strategies. However, even with implementation of all available mitigation, the GP EIR concluded that the SSF 2040 General Plan Update would result in significant unavoidable impacts related to the following: • project-level and cumulative vehicle miles traveled • project-level and cumulative roadway safety • project-level conflicts with 2017 Bay Area Clean Air Plan, • and cumulative criteria air pollutants The General Plan EIR is a programmatic document, and until the City receives development applications for subsequent projects pursuant to the General Plan, the potential impacts of such projects on the environment are too speculative to have been determined. Accordingly, the SSF General Plan EIR acknowledges that future construction and development plans will be subject to subsequent, project- level CEQA analysis. The City does expect that the SSF 2040 General Plan EIR will serve as a source of information in the review of subsequent planning and development proposals, and will be utilized in conjunction the streamlining provisions provided by CEQA to provide a first-tier of environmental review for later, project-specific and/or site-specific CEQA documents. Prior CEQA Findings - Genentech Master Plan EIR The Genentech Master Plan was approved by the City of South San Francisco in 2020, and the environmental impacts attributable to future growth and development within the Genentech Campus pursuant to the Master Plan have already been evaluated pursuant to CEQA. The Genentech Master Plan EIR is intended to simplify the task of preparing subsequent project-level environmental documents for future projects proposed pursuant to the Master Plan Update. Where feasible and where an adequate level of detail is available, the Master Plan EIR also provides project-level analysis intended to minimize the need for subsequent CEQA review of individual development projects. The Master Plan EIR 182 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 31 analyzes one example of a detailed development program for the Genentech Campus that provides general density and intensity of use, building height and bulk, and location of anticipated future development, public infrastructure and transportation improvements. The Master Plan EIR is intended to be used under the streamlining and tiering provisions of CEQA to the maximum feasible extent, such that future environmental review of specific development projects within the Campus that are carried out in furtherance of the Master Plan Update are expeditiously undertaken, without the need for repetition and redundancy. When adopting the Genentech Master Plan, the City determined that implementation of the Master Plan would result in significant and unavoidable environmental effects related to the following: • criteria air pollutant emissions • construction-period noise, and • traffic impacts at local intersections, freeway ramps and freeway segments All other potentially significant environmental effects related to Implementation of the Master Plan were found to be reduced to less than significant levels through implementation of either existing regulatory requirements or additional mitigation measures as recommended in that prior EIR. The Genentech Master Plan and its EIR considered and evaluated the possibility of closing DNA Way through the Upper Campus to create a more pedestrian-oriented place in the center of the Campus where people are prioritized over vehicles. The Genentech Master Plan also sets out the requirements adding properties to the Genentech Master Plan zoning district, which include: • The acreage of any new property added to the Campus shall be aggregated with the approximately 207 acres of existing Campus properties, and shall contribute to the overall Campus FAR of 1.0. • The AM peak hour vehicle trips attributed to any existing use of property added to the Genentech Campus shall be added to the Trip Cap, but any future redevelopment that generates an increase in vehicle trips shall be subject to the Trip Cap total of this Master Plan Update (i.e., no net increase in AM peak hour vehicle trips). • New properties added to the Genentech Campus shall be subject to the TDM goals and requirements. • Parking requirements that apply to any new properties added to the Genentech Campus shall conform to the parking rates of the Master Plan, based on the TDM rates effective at the time the property is added. Parking requirements attributable to new Campus properties may be met at off-site parking facilities within the Genentech Campus. • All other provisions of the Genentech Master Plan zoning district shall apply to any new property added to the Campus. In this context, the changes to be implemented pursuant to the proposed Project (i.e., adding six new properties to the Master Plan and privatizing internal Campus roadways) have already been anticipated and addressed in the broader scope and evaluation conducted in the prior Genentech Master Plan EIR. No Need for Further Study The proposed Project does not increase the potential buildout scenario as provided in the SSF 2040 General Plan or the Genentech Master Plan. Rather, the Project adds new land area to the Genentech 183 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 32 Master Plan area, while maintaining the 9 million square-foot buildout that was approved by the City in the 2020 Campus Master Plan. The proposed Project is consistent with the development program established in the 2020 Genentech Master Plan. As demonstrated in this document, the changes that would result from the City’s approval of the proposed Project (including partial closure of DNA Way, and closure of Point San Bruno Boulevard and Cabot Road within the Genentech Campus) would not add any new potentially significant environmental impacts not already identified in the Prior EIRs, nor would it increase the severity of significant impacts previously identified in the Prior EIRs. 184 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 33 Comparative Environmental Analysis No New or More Severe Effects Related to Roadway Acquisitions and Potential Closures Near-Term Effects Genentech’s current proposal is to acquire the rights-of-way underlying three public streets (DNA Way, Point San Bruno Boulevard and a short segment of Cabot Road) that are within the boundaries of the Campus Master Plan, and requests that the City vacate these streets as public roadways. Genentech does not have any pending project applications or pre-applications for new Campus development involving any of these rights-of-way, and these streets will remain open to the public in the near term, but as private streets. Genentech is not currently proposing removal of these streets, or closure of these streets for public travel, but approval of the Project would give Genentech the rights to close these streets to public through travel at Genentech’s discretion as long as public access to the Wind Harp is maintained and Genentech complies with all mitigations pertaining to emergency vehicle access. Underground public infrastructure that exists within public utility easements, many of which lie beneath or adjacent to these proposed street acquisitions, will be unaffected in the short-term. Genentech is not currently proposing any alteration or realignment of these public utility easements. In the near term, there would be no street removal, reconstruction or redevelopment of these roadway rights-of-way, so no new or more severe construction-related impacts or operational impacts would occur. Accordingly, the Project’s proposed acquisition of the rights-of-way underlying DNA Way, Point San Bruno Boulevard and a short segment of Cabot Road, and even partial closure of DNA Way and full closure of Point San Bruno Boulevard and Cabot Road to public through traffic, will not result in any new or more severe environmental impacts other than those impacts already disclosed in the Prior EIRs. Reasonably Foreseeable Future Effects In the longer-term, it is reasonably foreseeable that if the rights-of-way underlying these three public streets were to be acquired by Genentech, Genentech may seek to close/partially close these streets (as envisioned in the Genentech Campus Master Plan) to remove public through traffic on DNA Way from the center of the Campus and to create a more pedestrian-oriented place with courtyards, plazas and terraces, and improved pedestrian connections between buildings. Accordingly, an analysis of the potential traffic implications associated with a possible partial closure of DNA Way and closure of Point San Bruno Boulevard has been conducted (Fehr & Peers, February 2024 – see Appendix A). This analysis concludes that closure/partial closure of these roadways to through traffic would be expected to result in negligible effects on traffic conditions and area-wide circulation in the short-term, and under cumulative conditions. Both DNA Way and Point San Bruno Boulevard serve a relatively low volume of through traffic, most of which is Genentech-based travel. Partial closure of DNA Way and closure of Point San Bruno would redistribute these Genentech-based trips away from the center of the Campus, and instead to parking areas at the periphery of Campus. These peripheral parking areas are served by Forbes Boulevard, Allerton Avenue and East Grand Avenue. Freight, delivery and emergency vehicle access is expected to be maintained throughout the Campus (even with these roadway closures/partial closures) via a network of new or modified, and Fire Code-complaint service routes to be installed at the time of any new development or redevelopment that would result in physical removal of these privatized roads. 185 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 34 Some non-Genentech pass-through vehicle trips would be diverted to adjacent streets such as Forbes Boulevard, East Grand Avenue and Allerton Avenue. This redistribution of pass-through traffic is of such low volume as to have a negligible effect on traffic on those alternative routes. Closure of the short segment of Cabot Road between Allerton Avenue and DNA Way to public through traffic will have little effect on public pass-through traffic conditions in the near or long-term. This roadway segment exclusively serves Genentech land uses (childcare, warehouse and office space), and the separate public traffic connection between Allerton Avenue and DNA Way via East Grand Avenue (less than 1,000 feet to the south) will remain unaffected and available for public use. The following provides a comparative analysis of potential environmental impacts that could be reasonably expected to occur with partial closure of DNA Way and closure of Point San Bruno and the short segment of Cabot Road, as compared to the impact analysis presented in the Prior EIRs. Vehicle Miles Traveled (VMT) Prior VMT Analysis (per Genentech Master Plan FEIR) The Genentech Master Plan EIR determined that buildout of the Master Plan would generate approximately 32,200 daily trips, not accounting for any application of the TDM measures. The Master Plan commits to a sliding scale of reductions in AM peak hour drive alone trips to the Campus as necessary to maintain the Master Plan’s Trip Cap. At buildout of 9 million square feet of development, the necessary TDM measures will result in approximately 22,200 total daily trips. Assuming an additional 5% reduction for internalized trips (on-Campus amenities, on-Campus shuttles, and bicycle and pedestrian amenities), the Master Plan was found to result in approximately 21,000 daily trips. Multiplying these 21,000 daily trips by an average trip length of 9.3 miles per trip (the weighted average of home-based work trips and non-home-based trips for TAZ #212) for year 2040, the Master Plan was found to generate approximately 194,900 new daily vehicle miles travelled. Dividing these daily vehicle miles travelled by 12,500 new employees (per the Master Plan’s estimate) yields an average of 15.6 VMT per employee in year 2040. This VMT rate per employee is lower than the VMT target reduction threshold of 15% below the regional average worker-based VMT for year 2040. Accordingly, the Genentech Master Plan EIR concluded that the Master Plan would not result in a significant increase in VMT. VMT Implications of Roadway Closures It is reasonably foreseeable that Genentech may seek to partially close DNA Way, and to close Point San Bruno and the short segment of Cabot Road to through traffic. As indicated below, such roadway closures would have little to no measurable effect on VMT. The Master Plan’s commitment to TDM and the Trip Cap would remain, resulting in the same approximately 22,200 total new daily trips to the Campus at buildout. On-Campus amenities, on-Campus shuttles, and bicycle and pedestrian amenities would still provide for at least a 5% reduction for internalized trips, resulting in the same approximately 21,000 new daily trips. The estimated average trip length of 9.3 miles per trip (weighted average of home-based work trips and non-home-based trips for TAZ #212) would remain approximately the same. Closure of DNA Way, Point San Bruno and potentially Cabot Road would redistribute Genentech-based trips away from the center of the Campus and instead to parking areas at the periphery of Campus served by Forbes Boulevard, Allerton Avenue and East Grand Avenue. These parking areas are no further away from their trip origin locations than the existing parking areas now accessed by DNA Way. Accordingly, even with partial closure of DNA Way and closure of Point San Bruno Boulevard and Cabot Road, buildout of the Master 186 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 35 Plan would still result in an average of 15.6 VMT per employee in year 2040, which is lower than the VMT target reduction thresholds of 15% below the regional average worker-based VMT for year 2040. • Based on these factors, a reasonably foreseeable partial closure of DNA Way, and closure of Point San Bruno Boulevard and the short segment of Cabot Road would not result in a new or more significant environmental effect pertaining to VMT than was disclosed in the Prior EIR. Air Quality Prior Analysis of Mobile Source Criteria Air Pollutants The Genentech Master Plan EIR determined that buildout of the Master Plan would generate new vehicle trips from new employees, and would increase vehicle trips by vendors and visitors. The number of estimated new daily vehicle trips generated by the Project was obtained from the same traffic impact analysis used in the Transportation chapter of that EIR, including the number of new trips, the percentage of trips for each mode of transportation, and average trip length. Emissions from each of these trip types were obtained using EMFAC2014, and based on emission rates per trip type as derived from the vehicle fleet mix in San Mateo County. Mobile source emissions of criteria pollutants attributed to buildout of the Master Plan was found to result in 7.9 tons/year of reactive organic gas (ROG), 12 tons/year of nitrogen oxides (NOx), 15 tons per year of particulate matter as PM10, and 3.5 tons per year of particulate matter as PM2.5. With the exception of NOx, none of the mobile source emissions attributed to buildout of the Master Plan was found to exceed significance thresholds. However, when combined with all other emission sources (new laboratory emissions, miscellaneous natural gas combustion, architectural coatings, consumer products and landscaping) all of these emission types (except PM2.5) were found to exceed significance thresholds. Implications of Roadway Closures on Mobile Source Criteria Air Pollutants As indicated above, reasonably foreseeable partial roadway closures of DNA Way, and closure of Point San Bruno and the short segment of Cabot Road would have little to no measurable effect on VMT. Mobile sources of criteria air pollutant emissions are primarily a function of the same VMT by trip types, multiplied by vehicle emission rates per trip type. The potential roadway closures/partial closures of DNA Way, Point San Bruno and the short segment of Cabot Road would have similar (i.e., little to no measurable) change in projected emissions of mobile sources of criteria pollutants. • Based on this comparative analysis, the Project’s potential partial closure of DNA Way, and closure of Point San Bruno and the short segment of Cabot Road would not result in a new or more significant environmental effect pertaining to criteria air pollutant emissions than was disclosed in the Prior EIRs. GHG Emissions Prior Analysis of Mobile Sources of GHG Pursuant to BAAQMD Guidelines and SSF CEQA thresholds, operational GHG emissions that comply with a Qualified GHG Reduction Strategy are deemed less than significant under CEQA. The South San Francisco Climate Action Plan that was effective in 2020 (when the prior Master Plan EIR was certified) followed both State and BAAQMD CEQA Guidelines by incorporating standard elements of a Qualified GHG Reduction Strategy, and that SSF CAP met the requirements and criteria for a Qualified GHG Reduction Strategy. Because the SSF CAP satisfied the requirements of a Qualified GHG Reduction Strategy, the CAP allowed the City to determine that future development projects that fully comply with the CAP would have a less than significant impact on GHG emissions. 187 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 36 The prior CAP’s inventory of GHG emissions included Genentech’s GHG emissions from indirect operational sources, including mobile sources. These categories of emissions were subject to reduction measures as specified in the CAP, primarily through required implementation of TDM measures. The Genentech Master Plan, inclusive of its TDM plan and Trip Cap, was found to be in full compliance with the GHG emission reduction strategies of the SSF CAP, and the Genentech Master Plan was found to have a less than significant impact on GHG emissions from mobile sources. Implications of Roadway Closures on Mobile Sources of GHG Based on Genentech’s most recent trip count data (November 2023), the Campus is generating approximately 3,660 AM peak-hour drive-alone trips.6 This is well below the trip cap of 5,216 AM peak- hour drive-alone trips, and the Campus is currently compliant with this requirement. Also according to the cordon counts conducted at the Campus in November 2023, Genentech’s current TDM performance shows a drive-alone mode share of 40%, resulting in an effective nearly 60% TDM mode share, inclusive of remote work (33%) and alternative modes such as transit, carpool, walk or bike (26%).7 With a current alternative mode split of nearly 60%, the Genentech Campus is far exceeding its currently effective TDM commitment. It may be reasonably foreseeable that Genentech may seek to partially close DNA Way, and to close Point San Bruno and the short segment of Cabot Road to through traffic. However, such a potential roadway closure/partial closure would not change Genentech’s requirements or commitments to implementation of TDM measures or the Master Plan’s trip limits of the Trip Cap. These currently effective TDM plans and the Trip Cap are in full compliance with the GHG emission reduction strategies of South San Francisco’s current Climate Action Plan as approved by the City in 2022, concurrent with the SSF 2040 GP Update. These potential roadway closures/partial closures would have no effect on Genentech’s commitment to implement its TDM plans and Trip Cap, and would have no measurable effect on Genentech’s ability to continue to meet these commitments. • Based on this comparative analysis, the Project’s potential partial closure of DNA Way and closure of Point San Bruno and the short segment of Cabot Road would not result in a new or more significant environmental effect pertaining to mobile source GHG emissions. Land Use / Public Access to Bay Trail Genentech holds two BCDC permits that require Genentech to provide, improve and use approximately 2.5 acres for public access to and along the Bay shoreline along the Lower Campus, and to make parking available to the general public on weekends and after normal business hours; and to construct, use and maintain a public access trail along approximately 2,335 feet of shoreline at the Mid and South Campus (approximately 3.8 acres), also including a bicycle and pedestrian ramp, landscaping, site furnishings and a storm drain and drop inlets. If Genentech does seek to partially close DNA Way and to close Point San Bruno and the short segment of Cabot Road to through traffic, such roadway closures/partial closures would remain consistent with these existing BCDC permits. Access to the Bay Trail and surrounding land uses would be unaffected. Vehicle access to the Bay Trail parking area Lower Campus would be maintained via Forbes Boulevard, and publicly accessible Bay Trail parking at the end of East Grand Avenue in the South Campus would be unaffected. Bicycle access would also be maintained via Forbes Boulevard and the parallel trail through the Campus. 6 Nelson Nygaard, Genentech South San Francisco Campus Mode Share and Parking Report, Fall of 2023 7 Nelson Nygaard, Genentech South San Francisco Campus Mode Share and Parking Report, Fall of 2023, Figure 4, page 8 188 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 37 • The Project’s potential partial closure of DNA Way and closure of Point San Bruno and the short segment of Cabot Road would not result in a new or more significant environmental effect pertaining to public access to the Bay Tail, and would not conflict with existing BCDC permits pertaining to the provisions of that access to the Bay Trail. Hazards/Emergency Response Genentech has no current plans to close any roadways to public access or to emergency access. However, it is reasonably foreseeable that Genentech may seek to partially close DNA Way and to close Point San Bruno and the short segment of Cabot Road to through traffic at some point in the future. The closure of these roadways to public through traffic would not affect use of these roadways for emergency access by the South San Francisco Police or Fire Department, as they would remain as emergency roadways. To the extent that Genentech may seek to remove these roadways or portions of these roadways to accommodate future development or redevelopment within the Campus, such roadway removals could potentially affect existing emergency response or evacuation plans. Per the Genentech Master Plan EIR’s Mitigation Measure 7B – Lane Closure Request, adequate emergency vehicles access must be ensured if/when roadway closures may be proposed. This mitigation measure requires Genentech to consult with the South San Francisco Police and Fire Department to identify appropriate alternative travel routes in the event of a proposed road closure (in this instance, “road closure” is interpreted as a physical change or removal of the road that would preclude its use as an emergency lane, rather than simply privatization of the road). • Implementation of Genentech Master Plan EIR Mitigation Measure 7-B will ensure that impacts related to emergency response remain less than significant, and the Project would not result in any new or more severe impacts that were previously disclosed in the Prior EIRs. Hydrology The City’s stormdrain system within the Project Area consists of a variety of disconnected drainage systems including surface street drainage and underground storm drains (including drainages and stormdrain inlets within the rights-of-way of DNA Way, Point San Bruno and the short segment of Cabot Road). These stormdrain facilities collect runoff from the Project Area, and outfall directly into the San Francisco Bay. The existing drainage system was generally designed and constructed to accommodate large-scale industrial development, with large capacity stormdrain pipes. Even if Genentech does seek to partially close DNA Way and close Point San Bruno and the short segment of Cabot Road to through traffic, the underground public infrastructure that exists within public utility easements (including existing stormdrain lines), would remain. Genentech is not currently proposing, and it is not necessarily foreseeable that roadway closure/partial closure to through traffic would necessitate any alteration or realignment of the underlying public utility easements and drainage infrastructure. Even under this reasonably foreseeable future scenario, the Project would not require or result in the relocation or reconstruction of stormdrain infrastructure. If Genentech were to make future development plans that would involve these rights-of-ways, the potential need for relocating underground storm drains would be evaluated as part of such a project, but no such project is currently proposed. • The Project will not require or result in the relocation or construction of new or expanded storm water drainage facilities, the construction or relocation of which could cause new or more significant environmental effects than those disclosed in the Prior EIRs. 189 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 38 At such time that Genentech may propose new development or redevelopment projects that involve these former public rights-of-way, those later projects will need to coordinate with the City and other utility providers, and Genentech will be responsible for maintaining continuity of the stormdrain system. No such development or redevelopment projects are currently proposed. Noise The Genentech Master Plan EIR determined that buildout of the Master Plan would increase traffic volumes that would increase local ambient traffic noise levels by greater than 3 dBA CNEL along several roadway segments, including Oyster Point Boulevard, Gull Drive and East Grand Avenue. However, the Master Plan’s increased traffic noise was not found to adversely affect any existing noise-sensitive receptors. The only noise-sensitive receptors in the vicinity include three daycare facilities on Allerton Avenue near Cabot Road (two of which are Genentech facilities). The Genentech Master Plan EIR determined that these existing noise-sensitive daycare facilities are currently exposed to peak hour traffic noise exceeding 60 dBA, but that buildout of the Genentech Campus (to 9 million square feet) would only increase traffic noise by approximately 1.8 dBA, as compared to a threshold of a 3 dBA increase. If Genentech should seek to partially close DNA Way and to close Point San Bruno and the short segment of Cabot Road to through traffic, these roadway closures/partial closures would redistribute Genentech-based trips away from the center of the Campus, with a share of those trips redistributed onto Allerton Avenue. As a rule of thumb, it takes a doubling of vehicle trips to cause a significant (i.e., more than 3 dBA) increase in traffic noise. The marginal increase of trips redistributed onto Allerton Avenue as a result of a potential partial closure of DNA Way would not double existing or projected traffic volumes on Allerton, and would not cause a significant noise impact to these noise-sensitive daycare facilities. The marginal increase of trips redistributed onto Allerton Avenue would also be unlikely to contribute to a cumulative increase of 3 dBA CNEL or more over existing conditions. Furthermore, these daycare facilities serve Genentech and nearby R&D land uses, with child drop-off and pick-up occurring during the am and pm peak traffic periods. During the mid-day when the childcare facilities are in operation, the volume of traffic and associated traffic noise along Allerton Avenue drops substantially. • The Project’s potential partial closure of DNA Way and closure of Point San Bruno and the short segment of Cabot Road would not result in a new or more significant environmental effect pertaining to traffic noise. Utilities The City’s wastewater collection system and CalWater’s water distribution system are located within public utility easements, some of which are within the rights-of-way of DNA Way, Point San Bruno and the short segment of Cabot Road. Even if Genentech does seek to partially close DNA Way and close Point San Bruno and the short segment of Cabot Road to through traffic, the underground water and wastewater infrastructure that exists within these public utility easements would remain. Genentech is not currently proposing, and it is not necessarily foreseeable, that roadway closure/partial closure to through traffic necessitates any alteration or realignment of these underlying public utility easements. The Project does not require or result in the need to relocate or reconstruct water or wastewater infrastructure. If Genentech were to make future development plans that would involve these rights-of-ways, the potential need for relocating underground utilities would be evaluated as part of such a project, but no such project is currently proposed. 190 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 39 • The Project will not require or result in the relocation or construction of new or expanded water or wastewater infrastructure, the construction or relocation of which could cause new or more significant environmental effects than those disclosed in the Prior EIRs. At such time that Genentech may propose new development or redevelopment projects that involve these former public rights-of-way, such later projects will need to coordinate with the City and other utility providers, and Genentech will be responsible for maintaining continuity of the public utility systems. No such development or redevelopment projects are currently proposed. No New or More Severe Construction-Related Effects The Project (privatization of three existing streets within the Genentech Campus - DNA Way, Point San Bruno Boulevard and a segment of Cabot Road- and removal of the SSF 2040 General Plan’s Local Street designation of these roadways) does not currently include any proposed demolition or physical removal of these streets, or any other type of reconstruction of these streets. The six properties proposed to be added to the Genentech Campus and re-zoned as Genentech Master Plan District are existing public streets or urbanized sites containing existing industrial or light industrial buildings. No redevelopment of these properties is currently proposed, and no construction activity on these sites is currently proposed as part of the Project. Accordingly, there would be no substantial change to the analyses and findings presented in the Prior EIRs for the following impact issue areas related to new construction on the Genentech Campus. Air Quality Throughout buildout of the Master Plan, construction activities would result in emissions of criteria pollutants for which the region is non-attainment, including releasing emissions of ozone precursors and particulates. However, with implementation of Basic Best Management Practices (BMPs) for all construction projects, construction emissions would be unlikely to exceed applicable thresholds. During construction activities, new development pursuant to the Master Plan could also expose sensitive receptors to substantial pollutant concentrations from construction-related emissions. Specifically, the Project’s construction emissions could cause an excess cancer risk level exceeding 10 in one million at the maximally exposed sensitive receptor. No new construction is proposed pursuant to any portions of the Project, so no increase in criteria pollutants or toxic air contaminants would occur. No redevelopment of the six properties to be added to the Genentech Campus is currently proposed, and no construction activity on these sites is currently proposed as part of the Project. Furthermore, Genentech does not seek to increase the amount of potential development within the Campus beyond that already approved, even with the increased land area attributed to the six new properties. Accordingly, the Project would not increase cumulative air quality emissions beyond that already evaluated in the Genentech Master Plan EIR. Biological Resources The existing rights-of-way and the six properties proposed to be added to the Genentech Campus and re-zoned as Genentech Master Plan District do not involve any sites identified as containing CDFW- designated Natural Communities of Special Concern, CDFW-designated Sensitive Vegetation Alliances, essential fish habitat, Waters of the U.S. or the State, or any drainage ditches. The potential for the Project to result in any construction-related impacts to biological resources can be summarized as follows: 191 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 40 • The Project would have no direct or indirect adverse effect on tidal aquatic habitat or aquatic species dependent on that habitat; • would have no direct or indirect adverse effect, directly or through habitat modification, on California Ridgway’s rail, burrowing owl, Alameda song sparrow or San Francisco common yellowthroat; • would have no direct or indirect adverse effect on harbor seals or California sea lion, or their tidal aquatic habitat within the Bay; • would not interfere with migratory bird corridors or result in increased bird strikes with buildings; • would have no adverse effects on coastal salt marsh or other sensitive habitat, or cause the spread of invasive and non-native plant species; • would not have adverse effect on any riparian habitat or other sensitive natural community; • would not adversely affect wetlands, waters of the U.S. or waters of the state; • would not interfere with the movement of any native resident or migratory fish or wildlife species, or with migratory wildlife corridors, or impede the use of native wildlife nursery sites • would not conflict with any local policies or ordinances protecting biological resources, including any tree preservation policy or ordinance; and • would not conflict with the provisions of an adopted habitat conservation plan, natural community conservation plan or other habitat conservation plan Cultural Resources There are no historic structures currently located within the Genentech Campus. None of the six properties proposed to be added to the Genentech Campus and re-zoned as Genentech Master Plan District contain known historic structures. The three street segments proposed for privatization are not historic resources. There is a high potential for unrecorded or non-located Native American resources in the Project Area, but no ground disturbance is proposed pursuant to any portions of the Project. The potential for the Project to result in any construction-related impacts to cultural resources can be summarized as follows: • The Project would not cause a substantial adverse change in the significance of any known historical resources; • would not uncover or disturb a known paleontological resource; • would not result in the discovery or disturbance of possible, currently unidentified historic- period archaeological resources; and • would not result in the discovery or disturbance of possible, currently unidentified or non- located tribal cultural resources Geology and Soils The San Francisco Bay Area (including the Genentech Campus) is in one of the most seismically active regions in the U.S. and could be subject to violent shaking under a scenario earthquake along the San Andreas Fault, and very strong shaking under a scenario earthquake along the Peninsula Segments of the San Andreas or on the San Gregorio Fault. However, no new construction is proposed pursuant to 192 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 41 any portions of the Project. Therefore, the potential for the geologic hazards to affect or to be affected by the Project can be summarized as follows: • The Project would not expose people and/or structures to potentially substantial adverse effects resulting from strong seismic groundshaking and seismic-related ground failure; • would not expose people and structures to potentially substantial adverse effects resulting from landslides; • would not involve a geologic unit or soil that is unstable or that could become unstable; and • would not result in substantial soil erosion or the loss of topsoil Hazards and Hazardous Materials The existing rights-of-way for DNA Way, Point San Bruno Boulevard and a segment of Cabot Road, and the three properties proposed to be added to the Genentech Campus and re-zoned as Genentech Master Plan District, do not involve any properties identified on the list of hazardous materials sites compiled pursuant to Government Code Section 65962.5. Two listed sites in the general vicinity are ‘Closed’ sites requiring no further remedial action. These nearby sites include the Tornberg Enterprises site at 1776 DNA Way (former LUST Cleanup Site with cleanup completed and the case closed as of 1992), and the 451 DNA Way site (former SWRCB Cleanup Program Site, with cleanup completed and the case closed in 2003).8 Given that the Project involves no construction, excavation or ground disturbance, and involves no physical removal or physical changes to the roadways to be privatized, the Project’s potential effects pertaining to hazards and hazardous materials can be summarized as follows: • The Project would not create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment; • would not expose construction workers or Genentech employees to a significant hazard through the renovation or demolition of buildings, or relocation of underground utilities that contain hazardous materials; and • would not create a significant hazard to the public or the environment due to the presence of listed hazardous materials sites Hydrology Given that the Project involves no construction, excavation or ground disturbance, the potential for the Project to result in any construction-related hydrology impacts can be summarized as follows: • The Project would not result in a violation of water quality standards or waste discharge requirements or otherwise substantially degrade water quality during construction; • would not substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river; • would not add impervious surfaces in a manner that would result in substantial erosion or siltation on- or off-site; • would not substantially increase the rate or amount of surface runoff in a manner that would result in flooding on- or off-site; and 8 SWRCB GeoTracker website, accessed at: https://geotracker.waterboards.ca.gov/map/?global_id=T10000009086 193 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 42 • would not create or contribute runoff water that would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff Land Use Given that the Project involves no construction, excavation or ground disturbance, the potential for the Project to result in construction-related land use impacts can be summarized as follows: • The Project would not physically divide an established community; • would not include any new buildings that would exceed elevations indicated as SFO “critical aeronautical surfaces”; and • would not conflict with any applicable habitat conservation plan or natural community conservation plan Noise Given that the Project involves no construction, excavation or ground disturbance, the potential for the Project to result in construction-related noise impacts can be summarized as follows: • The Project would not include any construction activities that could generate a substantial temporary increase in ambient noise levels in excess of noise standards established in SSFMC; and • Would not involve construction that might generate excessive ground-borne vibration that could adversely affect vibration-sensitive equipment and persons Population and Housing Given that the Project involves no construction, excavation or ground disturbance, the potential for the Project to result in construction-related population impacts can be summarized as follows: • Implementation of the Project would not displace any existing housing that would necessitate construction of replacement housing elsewhere. Utilities Given that the Project involves no construction, excavation or ground disturbance, the potential for the Project to result in construction-related impacts to utilities can be summarized as follows: • the Project would not require or result in the relocation or construction of new or expanded water, wastewater or storm drain conveyance facilities, the construction or relocation of which could cause significant environmental effects No New or More Severe Operational Impacts The Project is limited to privatization and potential closure/partial closure to public through traffic of three existing streets within the Genentech Campus (DNA Way, Point San Bruno Boulevard and a segment of Cabot Road), removal of the SSF 2040 General Plan’s Local Street designation of these roadways, and adding six new properties to the Genentech Campus. No new development or redevelopment involving these properties is currently proposed, and no increase in building space or employment would result as part of the Project. The privatization of three existing streets and the addition of six properties to the Genentech Master Plan would add approximately 18.3 acres to the Campus. With a development potential of a 1.0 FAR, 194 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 43 these additional properties could theoretically result in a corresponding increase of approximately 797,000 square feet of additional development within the Campus beyond that permitted pursuant to the Genentech Master Plan. However, even with the addition of these properties to the Campus, Genentech is not proposing to increase the potential buildout of the Campus beyond the 9,008,000 square feet as approved in the 2020 Master Plan and analyzed in the Prior EIRs. Accordingly, the Project would not result in any substantial change to the analyses and findings presented in the Prior EIRs for the following impact issue areas related to development and operations within the Genentech Campus. Air Quality During operations, buildout of the Genentech Master Plan would result in a cumulatively considerable net increase of criteria pollutants for which the region is non-attainment, including emissions that exceed quantitative thresholds for ozone precursors. Specifically, average daily operational emissions are projected to exceed 54 pounds per-day of reactive organic gas (ROG) and nitrogen oxides. During operational activities, the Master Plan could expose sensitive receptors to substantial health risk from operational-related emissions if operational sources of TAC emissions are not limited in location and operational parameters. No new development or redevelopment is currently proposed pursuant to the Project, and no new or more severe air quality impacts would result from the Project. GHG Emissions Given that the Project involves no development or new building space within the Campus, the potential for the Project to result in operational-related GHG impacts can be summarized as follows: • the Project would not result in any new or more severe impacts related to stationary source GHG emissions and will have no influence on Genentech’s participation in the CARB’s Cap-and- Trade program; • would not result in any new or more severe impacts related to stationary source emissions of GHG not otherwise addressed under the Cap-and-Trade program; and • would not result in any new or more severe impacts related to conflicts with an applicable plan, policy, or regulation adopted for the purposes of reducing the emissions of GHGs, and specifically the Genentech Campus Master Plans’ consistent with the City’s Climate Action Program) Hazards and Hazardous Materials Given that the Project involves no development or new building space within the Campus, the potential for the Project to result in operational impacts related to hazards and hazardous materials can be summarized as follows: • the Project would not result in any new or more severe impacts related to the routine transport, use, disposal or storage of hazardous materials; • would not result in any new or more severe impacts to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment; • would not result in any new or more severe impacts related to hazardous emissions or handling of hazardous or acutely hazardous materials, substances or waste; 195 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 44 • would not result in any new or more severe safety hazard impacts related to proximity to the Airport Land Use Plan boundaries of San Francisco International Airport; and • would not result in any new or more severe impacts related to expose of people or structures to wildland fires Hydrology Given that the Project involves no development or new building space within the Campus, the potential for the Project to result in operational impacts related to hydrology can be summarized as follows: • the Project would not result in any new or more severe impacts related to a decrease in groundwater supplies or interference with groundwater recharge; and • would not result in any new or more severe impacts related to contributions of stormwater runoff that could exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff Noise Given that the Project involves no development or new building space within the Campus, the potential for the Project to result in operational impacts related to noise can be summarized as follows: • the Project would not result in any new or more severe impacts related to permanent ambient noise levels in the vicinity; and • would not result in any new or more severe impacts related to operational ground-borne vibration; • would not result in any new or more severe impacts related to increased traffic volumes that would increase local ambient traffic noise levels; and • would not result in any new or more severe impacts related to the expose people working in the Project Area to excessive airport-related noise Land Use Given that the Project involves no development or new building space within the Campus, the potential for the Project to result in land use impacts can be summarized as follows: • the Project would not result in any new or more severe impacts related to displacement of substantial numbers of people or employment There are three properties not previously owned or leased by Genentech, but that are now owned or controlled by Genentech. The prior owners of those recently acquired or controlled properties have made independent business decisions to sell those properties to Genentech. These businesses have made private decisions to relocate these business operations or to cease operations, and the Project does not affect or displace the prior ownership or use of these properties. Population and Employment Given that the Project involves no development or new building space within the Campus, the potential for the Project to result in population or employment growth impacts can be summarized as follows: • the Project would not result in any new or more severe impacts related to a substantial increase in local South San Francisco employment, or inducing population growth beyond that contemplated in the county or the region 196 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 45 Public Services Given that the Project involves no development or new building space within the Campus, the potential for the Project to result in impacts to public services can be summarized as follows: • the Project would not result in any new or more severe impacts related to any increased demand for police services or increased demand for police facilities; • would not result in any new or more severe impacts related to any increased demand for fire protection and emergency medical services or increased demand for fire protection and emergency medical facilities; and • would not result in any new or more severe impacts related to any increased demand for recreational space or increased demand for recreational space Utilities Given that the Project involves no development or new building space within the Campus, the potential for the Project to result in impacts to public utility services can be summarized as follows: • the Project would not result in any new or more severe impacts related to increased water demands during normal, dray and multiple dry years; • would not result in any new or more severe impacts related to increased demand for wastewater treatment facilities; • would not result in any new or more severe impacts related to increased demands for solid waste disposal, and would not impair the attainment of solid waste reduction goals; • would not result in any new or more severe impacts related to incremental increased demands for gas and electrical power; and • would not result in any new or more severe impacts related to wasteful, inefficient or unnecessary consumption of energy resources, or conflict with or obstruction of a state or local plan for renewable energy or energy efficiency 197 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 46 CEQA Conclusion The proposed changes to the SSF 2040 GP and the Genentech Master Plan represented by Genentech’s proposed acquisition and potential closure/partial closure of certain public rights-of-way within the Genentech Campus (including DNA Way, Point San Bruno Boulevard and Cabot Road) and the addition of 4 new properties to the Genentech Campus would not lead to new significant impacts or significant increases in the severity of any significant impacts as previously identified in the prior SSF 2040 GP EIR or the Genentech Campus Master Plan EIR (the Project). No additional mitigation measures are required for the proposed Project. The potential impacts associated with implementation of the Project are within the scope of impacts identified in these Prior EIRs, and those Prior EIRs adequately address all impacts of the changes resulting from implementation of the Project. Based on the above, an Addendum is the appropriate CEQA document for SSF’s approval of the proposed Project, which includes: • General Plan Amendment to remove DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road as public streets, with the commitment to retain public access to Wind Harp • Rezoning of DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road to the Genentech Master Plan District • Re-zoning of six newly acquired or Genentech-controlled properties to the Genentech Master Plan District • Transfer of ownership of the rights-of-way for DNA Way, Point San Bruno Boulevard and the short segment of Cabot Road to Genentech None of the conditions described in CEQA Guidelines Section 15162 or 15163 calling for a subsequent or supplemental EIR apply. This Addendum has appropriately disclosed the potential impacts of the Project, and this Addendum will be included as part of the CEQA record for the SSF 2040 GP and the Genentech Master Plan. A Notice of Determination for this Addendum will be filed with the California State Clearinghouse within the State of California Office of Planning and Research. 198 Addendum to the SSF 2040 General Plan EIR and Genentech Master Plan EIR – General Plan, Master Plan and Zoning Amendments and Roadway Acquisitions page 47 Sources California, SWRCB GeoTracker website, accessed at: https://geotracker.waterboards.ca.gov/map/?global_id=T10000009086 Fehr & Peers, Analysis of Potential Closure of DNA Way and Point San Bruno Boulevard, February 10, 2025 Nelson Nygaard, Genentech South San Francisco Campus Mode Share and Parking Report, Fall of 2023 South San Francisco (SSF), South San Francisco 2040 General Plan Update, Zoning Code Amendments and Climate Action Plan, October 2022 --- SSF, South San Francisco 2040 General Plan Update, Zoning Code Amendments and Climate Action Plan EIR, (State Clearinghouse No. 2021020064), September 6, 2022 --- SSF, Genentech Master Plan, January 2020 --- SSF, Genentech Master Plan EIR, (State Clearinghouse No. 2017052064), October 2019 199 Exhibit B Genentech 2020 Master Plan Update EIR and Appendices Links: • Draft EIR • Final EIR • Technical Appendices 200 Exhibit C SSF 2040 General Plan Update EIR and Appendices Links: -Draft EIR -Final EIR -Appendix A – NOP and Scoping Comments -Appendix B – Air Quality, Energy and GHG Supporting Information -Appendix C – Biological Resources Supporting Information -Appendix D – Cultural Resources – Tribal Cultural Resources Supporting Information -Appendix E – Geology, Soils, and Seismicity Supporting Information -Appendix F – Hazards and Hazardous Materials Supporting Information -Appendix G – Noise Supporting Information -Appendix H – Transportation Supporting Information 201 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-644 Agenda Date:6/25/2025 Version:1 Item #:8b. Resolution of the City Council of the City of South San Francisco vacating certain public rights-of-way commonly known as DNA Way,Cabot Road,and Point San Bruno Boulevard located entirely within the Genentech Campus WHEREAS,on November 24,2020,and December 1,2020,the City Council of the City of San South San Francisco unanimously approved the Genentech Campus Master Plan Update project,which approval included, but was not limited to,adoption of the Development Agreement,certification of that certain Environmental Impact Report for the Genentech Master Plan Update (State Clearinghouse No.2017052064),approval of that certain Genentech Master Plan Update (“Master Plan”),and approval of certain amendments to the City’s Genentech Master Plan Zoning District so as to facilitate implementation of the Master Plan; and WHEREAS,to promote the Master Plan’s stated objective of establishing an integrated and walkable Campus that implements a more pedestrian-oriented shared street concept that prioritizes people over motorized vehicles,the Master Plan contemplates the potential reconfiguration of portions of public streets where the streets passes through the central portion of the Master Plan’s “Upper Campus”planning area,thereby improving pedestrian connections between indoor spaces and outdoor spaces so as to activate the Campus core while also permitting continued service vehicle and emergency access along said portions of the existing rights- of-way through the use of special pavers or other appropriate design treatments; and WHEREAS,Section 8320,et.seq.,of the California Streets and Highways Code outlines the procedures for the general vacation of street right-of-way; and WHEREAS,in order to promote the vision of the Master Plan,Genentech has requested that the City vacate DNA Way,a portion of Cabot Road between Allerton and DNA Way,and Point San Bruno Boulevard as shown on Exhibit A,and sell such vacated former public streets to Genentech to be reconfigured and redeveloped as part Genentech’s campus; and WHEREAS,in accordance with Section 65402 of the California Government Code and Section 8313 of the California Streets and Highways Code,on May 15,2025,the Planning Commission for the City considered the proposed vacation of DNA Way,a portion of Cabot Road between Allerton and DNA Way,and Point San Bruno Boulevard and found that the proposed vacation is in conformity with the adopted General Plan for the City; and WHEREAS,pursuant to Section 8320 of the California Streets and Highways Code,the City Clerk set a public hearing for City Council consideration of the vacation of DNA Way,a portion of Cabot Road between Allerton and DNA Way,and Point San Bruno Boulevard right-of-way and published notice of said hearing for two successive weeks in a newspaper of general circulation in accordance with Section 8322; and WHEREAS,pursuant to Section 8323 of the California Streets and Highways Code,two weeks before the hearing,the City posted notice of the vacation conspicuously along DNA Way,the relevant portion of Cabot Road between Allerton and DNA Way, and Point San Bruno Boulevard; and City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™202 File #:25-644 Agenda Date:6/25/2025 Version:1 Item #:8b. WHEREAS,pursuant to Section 8324 of the California Streets and Highways Code,the City Council may vacate a street right-of-way if the City Council finds that the right-of-way is unnecessary for present or prospective public use; and WHEREAS,pursuant to Section 8324 of the California Streets and Highways Code,the City Council has prepared the conditions outlined in Exhibit B,which must be satisfied before the vacation occurs and before the resolution of vacation may be recorded; and WHEREAS,Section 8355(a)of the California Streets and Highways Code authorizes the City Council to sell or exchange City property previously subject to a street,highway,or public service easement,and is no longer needed by the public, in the manner and upon the terms and conditions approved by City Council; and WHEREAS,a Purchase and Sale Agreement has been prepared,which if approved by separate resolution, would convey the vacated right-of-way to Genentech; and WHEREAS,pursuant to Government Code Section 54221(f)(1)(E)the property qualifies as “exempt surplus land” because it is a former right-of-way and is being conveyed to an owner of an adjacent property. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco finds that: 1.DNA Way,a portion of Cabot Road between Allerton and DNA Way,and Point San Bruno Boulevard located entirely within the Genentech Campus within the City of South San Francisco,San Mateo County,California,and primarily serving Genentech related travel is unnecessary for present or prospective public use. 2.As confirmed by the Planning Commission,the vacation of the right-of-way is in conformance with the City’s General Plan pursuant to Section 65402 of the Government Code. 3.The proposed vacation of the right-of-way was analyzed in the 2025 Addendum and the action is consistent with the adopted Genentech Master Plan Environmental Impact Report and the adopted SSF 2040 General Plan Update,Zoning Code Amendments,and Climate Action Plan Environmental Impact Report,and approval of the vacation would not necessitate the need for preparing a subsequent environmental document pursuant to the criteria of CEQA Guidelines Section 15162. BE IT FURTHER RESOLVED that based on the findings made and the above provisions of the Streets and Highways Code,the City Council hereby orders the vacation of DNA Way,a portion of Cabot Road between Allerton and DNA Way,and Point San Bruno Boulevard,as depicted and described on Exhibit A,Exhibit A-1, Exhibit A-2,Exhibit A-3,and Exhibit A-4 upon satisfaction of all conditions outlined in Exhibit B. BE IT FURTHER RESOLVED that the Clerk of this City Council is hereby directed to transmit a certified copy of this resolution to be recorded in the office of the County Recorder of San Mateo upon satisfaction of all conditions outlined in Exhibit B. BE IT FURTHER RESOLVED that the City Manager or City Manager’s designee is hereby authorized to take any and all further actions to effectuate the vacation and completion of the conditions outlined in Exhibit B. City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™203 Exhibit A “Map of Right-of-Way Proposed for Vacation” 204 Exhibit A-1 “Description of Vacation Area #1” 205 EXHIBIT A t:\2977-genentech\2977-220 gred lla merger & dna privatization\legals\dna vacation\area 1\2977-220 dna&pnt_sanbruno_vacation_area#1_legal_-rch-1.docx SHEET 1 OF 2 Legal Description Vacation Area #1 A Portion of DNA Way (formerly Grandview Drive) And Cabot Court Lands of Genentech, INC. City of South San Francisco All that certain real property situate in the City of South San Francisco, County of San Mateo, State of California, being a portion of DNA Way as shown on that certain map entitled “CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 3”, filed March 24, 1972, in Volume 74 of Maps at Pages 41 through 45, (said DNA Way being called Grandview Drive on said Map), and Cabot Court as shown on last said map and in part on that certain map entitled “CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 1-C”, filed September 23, 1968 in Volume 68 of Maps at Pages 20 and 21, in the Office of the San Mateo County Recorder, State of California, said real property being more particularly described as follows: BEGINNING at a point on the northerly right of way line of East Grand Avenue (100 feet wide right of way) at the southwesterly most corner of DNA Way (formerly Grandview Drive) said point being North 89°59'46" West (called West on said 74 Maps 41) 58.97 feet, more or less, from a found standard City encased monument in the center monument line of DNA Way as shown on last said map; Thence from said POINT OF BEGINNING leaving said East Grand Avenue, along the northwesterly line of DNA Way on a tangent curve concave northwest, having a radius of 30.00 feet (the center of which bears North 00°00' 14"East) through a central angle of 86° 03' 26", with a curve length of 45.06 feet to a point of reverse curve; Thence along said reverse curve (concave east), having a radius of 406.31 feet, through a central angle of 29° 23' 26", with a curve length of 208.42 feet; Thence continuing along said northwesterly line of DNA Way, North 33°20'14" East (called North 33°20'00" East on said 74 Maps 41) 183.39 feet to the beginning of a tangent curve concave southeast; Thence along last said curve, having a radius of 380.00 feet through a central angle of 21°34'06”, with a curve length of 143.05 feet; Thence leaving said northwesterly line of DNA Way, along the southwesterly right of way line of said Cabot Court on a reverse curve concave west, having a radius of 30.00 feet through a central angle of 92°00'43”, with a curve length of 48.18 feet to a point of compound curvature; Thence along said southwesterly line of Cabot Court (60 feet wide) on said compound curve concave southwest, having a radius of 312.28 feet through a central angle of 19°31'13”, with a curve length of 106.39 feet; Thence North 56° 37’ 36" West (called North 56°37' 50" West on said 68 Maps 20) 294.87 feet to the beginning of a tangent curve concave south; Thence along last said curve, having a radius of 30.00 feet through a central angle of 90°00'00”, with a curve length of 47.12 feet to a point on the southeasterly right of way line of Allerton Avenue (60 feet wide); Thence North 33°22' 24" East (called North 33°22' 10" East on said 68 Maps 20) 120.00 feet to the beginning of a broken back curve concave east; Thence leaving said Allerton Avenue along the northeasterly line of said Cabot Court on last said curve, having a radius of 30.00 feet (the center of which bears South 56°37' 36" East) through a central angle of 90°00'00”, with a curve length of 47.12 feet; Thence South 56° 37’ 36" East (called South 56°37' 50" East on said 68 Maps 20) 294.87 feet to the beginning of a tangent curve concave southwest; Thence continuing along said northeasterly line of Cabot Court (60 feet wide) on last said curve having a radius of 372.28 feet through a central angle of 22°40'56”, with a curve length of 147.38 feet to a point of reverse curve; Thence leaving said northeasterly line of Cabot Court along said reverse curve (concave north), having a radius of 30.00 feet, through a central angle of 74° 07' 04", with a curve length of 38.81 feet to a point on the northerly line of said DNA Way; 206 EXHIBIT A t:\2977-genentech\2977-220 gred lla merger & dna privatization\legals\dna vacation\area 1\2977-220 dna&pnt_sanbruno_vacation_area#1_legal_-rch-1.docx SHEET 2 OF 2 Thence along said northerly line of DNA Way, on a reverse curve concave south, having a radius of 380.00 feet, through a central angle of 18°03'58”, with a curve length of 119.82 feet to a point of reverse curvature; Thence along last said reverse curve (concave northwest), having a radius of 345.00 feet, through a central angle of 70° 06' 31", with a curve length of 422.15 feet; Thence North 19° 53’ 43" East (called North 19°53’29" East on said 74 Maps 41) 213.89 feet to the beginning of a tangent curve concave southeast; Thence continuing along said northerly line of DNA Way (60 feet wide) on last said curve having a radius of 630.00 feet through a central angle of 112°33'15”, with a curve length of 1237.60 feet; Thence South 47° 33’ 02" East (called South 47°33'16" East on said 74 Maps 41) 109.58 feet to the southwesterly corner of Parcel 2 as shown on that certain map entitled “Parcel Map 93-303” filed February 17, 1995 in Book 68 of Parcel Maps at Pages 20 and 21, Office of the San Mateo County Recorder, State of California; Thence South 47° 33’ 02" East 24.00 feet; Thence into said DNA Way South 42° 26’ 58" West 30.00 feet to a point on the centerline of DNA Way; Thence along along a tangent curve concave to the north, having a radius of 30.00 feet through a central angle of 90°00'00”, with a curve length of 47.12 feet to a point on the southerly line of said DNA Way; Thence North 47° 33’ 02" West (called North 47°33'16" West on said 74 Maps 41) 103.58 feet to the beginning of a tangent curve concave south; Thence continuing along said southerly line of said DNA Way (60 feet wide) on last said curve, having a radius of 570.00 feet through a central angle of 112°33'15”, with a curve length of 1119.73 feet; Thence South 19° 53’ 43" West (called South 19°53’29" West on said 74 Maps 41) 213.89 feet to the beginning of a tangent curve concave northwest; Thence along last said curve having a radius of 405.00 feet through a central angle of 70°06’31”, with a curve length of 495.57 feet to a point of reverse curve; Thence along last said reverse curve (concave southeast), having a radius of 320.00 feet, through a central angle of 56° 40' 00", with a curve length of 316.49 feet; Thence continuing along the southeasterly line of DNA Way, South 33°20'14" West (called South 33°20'00" West on said 74 Maps 41) 163.30 feet to the beginning of a tangent curve concave southeast; Thence along last said curve, having a radius of 340.46 feet, through a central angle of 31° 29' 15", with a curve length of 187.10 feet to a point of compound curve concave northeast; Thence along last said curve having a radius of 30.00 feet, through a central angle of 91° 50' 45", with a curve length of 48.09 feet to a point on said northerly right of way line of East Grand Avenue; Thence North 89°59'46" West (called West on said 74 Maps 41) 131.13 feet to the POINT OF BEGINNING and containing 4.4748 acres of land, more or less. A plat, entitled Exhibit “B” is attached hereto and by this reference made a part hereof. Robert C. Hutton LS 5454 Date Principal Surveyor, Wilsey Ham 207 3130 LA SELVA STREET, SUITE 100, SAN MATEO, CA 94403 PHONE 650-349-2151 WWW.WILSEYHAM.COM WILSEY HAM EXHIBIT B PLAT TO ACCOMPANY LEGAL DESCRIPTION JOB NO: 2977-220 VACATION AREA #1 PORTION OF DNA WAY T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\DWG\DNA Vacation\Vacation 1\2977-220 DNA Vacation 1 plat.dwg CITY OF SOUTH SAN FRANCISCO, SAN MATEO COUNTY, CALIFORNIA SHEET: 1 OF 5 SCALE: 1"= 400' DATE: 03/14/25 LEGEND: ADJOINERS PROPERTY LINE BOUNDARY LINE CENTER LINE SHEET KEY FOUND STANDARD CITY MONUMENT 0 1 0 200 400 BASIS OF BEARINGS: THE BEARING OF NORTH 47° 33' 02" WEST, BETWEEN TWO FOUND MONUMENTS ON THE CENTERLINE OF DNA WAY, AS SHOWN ON THAT CERTAIN MAP ENTITLED “PARCEL MAP 08-0004, FILED SEPTEMBER 26, 2008 IN BOOK 78 OF PARCEL MAPS AT PAGES 71-72, SAN MATEO COUNTY RECORDS, WAS TAKEN AS THE BASIS OF BEARINGS FOR THIS MAP. ABBREVIATIONS: ( ) ORIGINAL CALL 74 M 41 AVE AVENUE M-M MONUMENT TO MONUMENT OR OFFICIAL RECORDS PM PARCEL MAP POB POINT OF BEGINNING RD ROAD SQ SQUARE FT FEET 208 209 220 210 211 212 Plat Check Report GENENTECH DNA WAY 1 OF 6 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#1.docx Prepared by: Ty Hammond Date: March 6, 2025 Job No. 2977-220 DNA VACATION#1 Description: North:2,065,663.2890'East:6,020,188.7722' Segment# 1: Line Course: S42°26'58"W Length: 30.00' North: 2,065,641.1528'East: 6,020,168.5240' Segment# 2: Curve Length: 47.12'Radius: 30.00' Delta: 90°00'00"Tangent: 30.00' Chord: 42.43'Course: S87°26'58"W Course In: N47°33'02"W Course Out: S42°26'58"W RP North: 2,065,661.4010'East: 6,020,146.3878' End North: 2,065,639.2648'East: 6,020,126.1396' Segment# 3: Line Course: N47°33'02"W Length: 103.58' North: 2,065,709.1750'East: 6,020,049.7107' Segment# 4: Curve Length: 1,119.73'Radius: 570.00' Delta: 112°33'15"Tangent: 853.94' Chord: 948.17'Course: S76°10'21"W Course In: S42°26'58"W Course Out: N70°06'17"W RP North: 2,065,288.5873'East: 6,019,664.9953' End North: 2,065,482.5595'East: 6,019,129.0150' Segment# 5: Line Course: S19°53'43"W Length: 213.89' North: 2,065,281.4353'East: 6,019,056.2278' 213 Plat Check Report GENENTECH DNA WAY 2 OF 6 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#1.docx Segment# 6: Curve Length: 495.57'Radius: 405.00' Delta: 70°06'31"Tangent: 284.16' Chord: 465.23'Course: S54°56'58"W Course In: N70°06'17"W Course Out: S0°00'14"W RP North: 2,065,419.2576'East: 6,018,675.3998' End North: 2,065,014.2576'East: 6,018,675.3723' Segment# 7: Curve Length: 316.49'Radius: 320.00' Delta: 56°40'00"Tangent: 172.54' Chord: 303.74'Course: S61°40'14"W Course In: S0°00'14"W Course Out: N56°39'46"W RP North: 2,064,694.2576'East: 6,018,675.3506' End North: 2,064,870.1186'East: 6,018,408.0064' Segment# 8: Line Course: S33°20'14"W Length: 163.30' North: 2,064,733.6896'East: 6,018,318.2623' Segment# 9: Curve Length: 187.10'Radius: 340.46' Delta: 31°29'15"Tangent: 95.98' Chord: 184.76'Course: S17°35'37"W Course In: S56°39'46"E Course Out: N88°09'01"W RP North: 2,064,546.5844'East: 6,018,602.6998' End North: 2,064,557.5738'East: 6,018,262.4172' Segment# 10: Curve Length: 48.09'Radius: 30.00' Delta: 91°50'45"Tangent: 30.98' Chord: 43.10'Course: S44°04'23"E Course In: S88°09'01"E Course Out: S0°00'14"W RP North: 2,064,556.6055'East: 6,018,292.4016' End North: 2,064,526.6055'East: 6,018,292.3995' 214 Plat Check Report GENENTECH DNA WAY 3 OF 6 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#1.docx Segment# 11: Line Course: N89°59'46"W Length: 131.13' North: 2,064,526.6144'East: 6,018,161.2695' Segment# 12: Curve Length: 45.06'Radius: 30.00' Delta: 86°03'26"Tangent: 28.00' Chord: 40.94'Course: N46°58'31"E Course In: N0°00'14"E Course Out: S86°03'12"E RP North: 2,064,556.6144'East: 6,018,161.2716' End North: 2,064,554.5496'East: 6,018,191.2004' Segment# 13: Curve Length: 208.42'Radius: 406.31' Delta: 29°23'26"Tangent: 106.56' Chord: 206.14'Course: N18°38'31"E Course In: S86°03'12"E Course Out: N56°39'46"W RP North: 2,064,526.5841'East: 6,018,596.5469' End North: 2,064,749.8781'East: 6,018,257.0950' Segment# 14: Line Course: N33°20'14"E Length: 183.39' North: 2,064,903.0914'East: 6,018,357.8798' Segment# 15: Curve Length: 143.05'Radius: 380.00' Delta: 21°34'06"Tangent: 72.38' Chord: 142.20'Course: N44°07'17"E Course In: S56°39'46"E Course Out: N35°05'39"W RP North: 2,064,694.2565'East: 6,018,675.3510' End North: 2,065,005.1756'East: 6,018,456.8807' Segment# 16: Curve Length: 48.18'Radius: 30.00' Delta: 92°00'43"Tangent: 31.07' P.O.B. 215 Plat Check Report GENENTECH DNA WAY 4 OF 6 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#1.docx Chord: 43.16'Course: N8°53'59"E Course In: N35°05'39"W Course Out: N52°53'38"E RP North: 2,065,029.7218'East: 6,018,439.6330' End North: 2,065,047.8206'East: 6,018,463.5586' Segment# 17: Curve Length: 106.39'Radius: 312.28' Delta: 19°31'13"Tangent: 53.72' Chord: 105.88'Course: N46°51'59"W Course In: S52°53'38"W Course Out: N33°22'24"E RP North: 2,064,859.4243'East: 6,018,214.5092' End North: 2,065,120.2105'East: 6,018,386.2920' Segment# 18: Line Course: N56°37'36"W Length: 294.87' North: 2,065,282.4162'East: 6,018,140.0449' Segment# 19: Curve Length: 47.12'Radius: 30.00' Delta: 90°00'00"Tangent: 30.00' Chord: 42.43'Course: S78°22'24"W Course In: S33°22'24"W Course Out: N56°37'36"W RP North: 2,065,257.3631'East: 6,018,123.5421' End North: 2,065,273.8659'East: 6,018,098.4890' Segment# 20: Line Course: N33°22'24"E Length: 120.00' North: 2,065,374.0783'East: 6,018,164.5000' Segment# 21: Curve Length: 47.12'Radius: 30.00' Delta: 90°00'00"Tangent: 30.00' Chord: 42.43'Course: S11°37'36"E Course In: S56°37'36"E Course Out: S33°22'24"W RP North: 2,065,357.5756'East: 6,018,189.5532' End North: 2,065,332.5224'East: 6,018,173.0504' 216 Plat Check Report GENENTECH DNA WAY 5 OF 6 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#1.docx Segment# 22: Line Course: S56°37'36"E Length: 294.87' North: 2,065,170.3168'East: 6,018,419.2975' Segment# 23: Curve Length: 147.38'Radius: 372.28' Delta: 22°40'56"Tangent: 74.67' Chord: 146.42'Course: S45°17'08"E Course In: S33°22'24"W Course Out: N56°03'20"E RP North: 2,064,859.4243'East: 6,018,214.5092' End North: 2,065,067.3012'East: 6,018,523.3450' Segment# 24: Curve Length: 38.81'Radius: 30.00' Delta: 74°07'04"Tangent: 22.65' Chord: 36.16'Course: S71°00'12"E Course In: N56°03'20"E Course Out: S18°03'43"E RP North: 2,065,084.0529'East: 6,018,548.2324' End North: 2,065,055.5313'East: 6,018,557.5338' Segment# 25: Curve Length: 119.82'Radius: 380.00' Delta: 18°03'58"Tangent: 60.41' Chord: 119.32'Course: N80°58'15"E Course In: S18°03'43"E Course Out: N0°00'14"E RP North: 2,064,694.2569'East: 6,018,675.3509' End North: 2,065,074.2569'East: 6,018,675.3767' Segment# 26: Curve Length: 422.15'Radius: 345.00' Delta: 70°06'31"Tangent: 242.06' Chord: 396.30'Course: N54°56'58"E Course In: N0°00'14"E Course Out: S70°06'17"E RP North: 2,065,419.2569'East: 6,018,675.4001' End North: 2,065,301.8527'East: 6,018,999.8092' 217 Plat Check Report GENENTECH DNA WAY 6 OF 6 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#1.docx Segment# 27: Line Course: N19°53'43"E Length: 213.89' North: 2,065,502.9770'East: 6,019,072.5964' Segment# 28: Curve Length: 1,237.60'Radius: 630.00' Delta: 112°33'15"Tangent: 943.83' Chord: 1,047.98'Course: N76°10'21"E Course In: S70°06'17"E Course Out: N42°26'58"E RP North: 2,065,288.5867'East: 6,019,664.9956' End North: 2,065,753.4468'East: 6,020,090.2074' Segment# 29: Line Course: S47°33'02"E Length: 133.58' North: 2,065,663.2884'East: 6,020,188.7725' Perimeter: 6,707.70'Area: 194,924.46Sq.Ft. Error Closure: 0.0007 Course: S24°49'41"E Error North : -0.00066 East: 0.00031 Precision 1: 9,582,428.57 218 Exhibit A-2 “Description of Vacation Area #3” 219 EXHIBIT A t:\2977-genentech\2977-220 gred lla merger & dna privatization\legals\dna vacation\area 3\2977-220 dna&pnt_sanbruno_vacation_area#3_legal_-rch.docx SHEET 1 OF 2 Legal Description Vacation Area #3 DNA Way (formerly Grandview Drive) And Point San Bruno Blvd Lands of Genentech, INC. City of South San Francisco All that certain real property situate in the City of South San Francisco, County of San Mateo, State of California, being a portion of DNA Way as shown on that certain map entitled “CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 3”, recorded March 24, 1972, in Volume 74 of Maps at Pages 41 thru 45, Office of the San Mateo County Recorder, State of California (said DNA Way being called Grandview Drive on said Map), and all of Point San Bruno Boulevard (as said Boulevard is now known) being a portion of the lands described that certain Resolution No. 5181 and Resolution No. 5182 granted to and accepted by the City of South San Francisco, California said Resolutions dated October 6, 1969 and recorded in Volume 5721 of Deeds at pages 656 and 664 in the Office of the San Mateo County Recorder, State of California, the portion of Point San Bruno Boulevard herein described lies southerly of and coincident with the southwesterly end of said Point San Bruno Boulevard as shown on that certain map entitled “CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 2”, recorded October 10, 1969, in Volume 70 of Maps at Pages 12 thru 15, Office of the San Mateo County Recorder, State of California, said real property being more particularly described as follows: BEGINNING at southeast most corner of said Point San Bruno Boulevard as said southeast corner is described in said Resolution No. 5181 (Deed 5721 OR 656); Thence from said POINT OF BEGINNING along Point San Bruno Boulevard Right of Way, North 86°44' 53" West (called North 86°44’37” West in said deed Volume 5721 at page 656) 50.00 feet to the beginning of a tangent curve concave east; Thence along said curve to the right, having a radius of 65.00 feet, through a central angle of 164°32'01", with a curve length of 186.66 feet to a point of reverse curvature concave northwest; Thence along the westerly line of Point San Bruno Boulevard, on last said reverse curve to the left having a radius of 10.00 feet, through a central angle of 74°32'01", with a curve length of 13.01 feet; Thence continuing along said westerly line of Point San Bruno Boulevard (60 feet wide), North 03°15'07" East 376.12 feet (called North 03°15'23" East 376.06 feet on said 74 Maps 41) to the beginning of a tangent curve concave southwest; Thence along last said curve, having a radius of 40.00 feet, through a central angle of 52°18'35", with a curve length of 36.52 feet; Thence across said DNA Way, North 3°15' 07" East 171.10 feet to a point on the northwesterly line of said DNA Way. Thence continuing along said northwesterly line of DNA Way (formerly Point San Bruno Boulevard), North 30°27' 58" East (called North 30°28' 28" East on said deed Volume 5721 at page 656) 601.40 feet to said southwesterly end of said Point San Bruno Boulevard as shown on that certain map entitled “CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 2” (70 Maps 12); Thence across said DNA Way, South 60°33' 00" East 60.01 feet to a point on the southeasterly line of said DNA Way (formerly Point San Bruno Boulevard); Thence continuing along said southeasterly line of DNA Way, South 30°27'58" West (called South 30°28' 28" West on said deed Volume 5721 at page 656) 510.86 feet to the beginning of a tangent curve concave east; Thence southerly along last said curve having a radius of 178.00 feet, through a central angle of 27°12'51", with a curve length of 84.55 feet (called central angle 27°13'05", with a curve length of 84.56 feet in said deed Volume 5721 at page 654); Thence along the easterly line of said Point San Bruno Boulevard (60 feet wide), South 3°15' 07" West 688.78 feet (called South 03°15’23” West 688.68 feet in said deed Volume 5721 at page 664) to the to the POINT OF BEGINNING and containing 1.9864 acres of land, more or less. 220 EXHIBIT A t:\2977-genentech\2977-220 gred lla merger & dna privatization\legals\dna vacation\area 3\2977-220 dna&pnt_sanbruno_vacation_area#3_legal_-rch.docx SHEET 2 OF 2 A plat, entitled Exhibit “B” is attached hereto and by this reference made a part hereof. Robert C. Hutton LS 5454 Date Principal Surveyor, Wilsey Ham 221 3130 LA SELVA STREET, SUITE 100, SAN MATEO, CA 94403 PHONE 650-349-2151 WWW.WILSEYHAM.COM WILSEY HAM EXHIBIT B PLAT TO ACCOMPANY LEGAL DESCRIPTION JOB NO: 2977-220 VACATION AREA #3 POINT SAN BRUNO BLVD AND PORTION OF DNA WAY T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\DWG\DNA Vacation\Vacation 3\2977-220 DNA Vacation 3 plat.dwg CITY OF SOUTH SAN FRANCISCO, SAN MATEO COUNTY, CALIFORNIA SHEET: 1 OF 3 SCALE: 1" = 300' DATE: 03/14/25 LEGEND: ADJOINERS PROPERTY LINE BOUNDARY LINE CENTER LINE SHEET KEY FOUND STANDARD CITY MONUMENT 0 1 0 150 300 BASIS OF BEARINGS: THE BEARING OF NORTH 47° 33' 02" WEST, BETWEEN TWO FOUND MONUMENTS ON THE CENTERLINE OF DNA WAY, AS SHOWN ON THAT CERTAIN MAP ENTITLED “PARCEL MAP 08-0004, FILED SEPTEMBER 26, 2008 IN BOOK 78 OF PARCEL MAPS AT PAGES 71-72, SAN MATEO COUNTY RECORDS, WAS TAKEN AS THE BASIS OF BEARINGS FOR THIS MAP. ABBREVIATIONS: ( ) ORIGINAL CALL 74 M 41 FT FEET BLVD BOULEVARD M-M MONUMENT TO MONUMENT OR OFFICIAL RECORDS PM PARCEL MAP POB POINT OF BEGINNING SQ SQUARE 222 223 224 Plat Check Report GENENTECH DNA WAY 1 OF 2 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#3.docx Prepared by: Ty Hammond Date: March 14, 2025 Job No. 2977-220 DNA VACATION#3 Description: North:2,065,183.5575'East:6,018,701.5766' Segment# 1: Line Course: N86°44'53"W Length: 50.00' North: 2,065,186.3939'East: 6,018,651.6571' Segment# 2: Curve Length: 186.66'Radius: 65.00' Delta: 164°32'01"Tangent: 478.66' Chord: 128.82'Course: N4°28'52"W Course In: N3°15'07"E Course Out: N12°12'52"W RP North: 2,065,251.2892'East: 6,018,655.3444' End North: 2,065,314.8178'East: 6,018,641.5922' Segment# 3: Curve Length: 13.01'Radius: 10.00' Delta: 74°32'01"Tangent: 7.61' Chord: 12.11'Course: N40°31'08"E Course In: N12°12'52"W Course Out: S86°44'53"E RP North: 2,065,324.5914'East: 6,018,639.4765' End North: 2,065,324.0241'East: 6,018,649.4604' Segment# 4: Line Course: N3°15'07"E Length: 376.12' North: 2,065,699.5385'East: 6,018,670.7965' Segment# 5: Curve Length: 36.52'Radius: 40.00' Delta: 52°18'35"Tangent: 19.64' Chord: 35.26'Course: N22°54'10"W Course In: N86°44'53"W Course Out: N40°56'32"E 225 Plat Check Report GENENTECH DNA WAY 2 OF 2 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#3.docx RP North: 2,065,701.8075'East: 6,018,630.8609' End North: 2,065,732.0224'East: 6,018,657.0728' Segment# 6: Line Course: N3°15'07"E Length: 171.10' North: 2,065,902.8469'East: 6,018,666.7787' Segment# 7: Line Course: N30°27'58"E Length: 601.40' North: 2,066,421.2111'East: 6,018,971.7057' Segment# 8: Line Course: S60°33'00"E Length: 60.01' North: 2,066,391.7063'East: 6,019,023.9616' Segment# 9: Line Course: S30°27'58"W Length: 510.86' North: 2,065,951.3812'East: 6,018,764.9409' Segment# 10: Curve Length: 84.55'Radius: 178.00' Delta: 27°12'51"Tangent: 43.09' Chord: 83.75'Course: S16°51'33"W Course In: S59°32'02"E Course Out: N86°44'53"W RP North: 2,065,861.1301'East: 6,018,918.3643' End North: 2,065,871.2274'East: 6,018,740.6509' Segment# 11: Line Course: S3°15'07"W Length: 688.78' North: 2,065,183.5565'East: 6,018,701.5787' Perimeter: 2,779.00'Area: 86,527.64Sq.Ft. Error Closure: 0.0023 Course: S64°48'28"E Error North : -0.00099 East: 0.00210 Precision 1: 1,208,265.22 226 Exhibit A-3 “Description of Vacation Area #4” 227 EXHIBIT A t:\2977-genentech\2977-220 gred lla merger & dna privatization\legals\dna vacation\area 4\2977-220 dna&pnt_sanbruno_vacation_area#4_legal_-rch.docx SHEET 1 OF 1 Legal Description Vacation Area #4 DNA Way (formerly Point San Bruno Boulevard) Lands of Genentech, INC. City of South San Francisco All that certain real property situate in the City of South San Francisco, County of San Mateo, State of California, being a portion of DNA Way as shown on that certain map entitled “CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 2”, recorded October 10, 1969, in Volume 70 of Maps at Pages 12 thru 15, Office of the San Mateo County Recorder (said DNA Way being called Point San Bruno Boulevard on said Map), said real property being more particularly described as follows: BEGINNING at southeast most corner of said DNA Way (formerly Point San Bruno Boulevard) as said southeast corner is shown on said map (70 Maps 12); Thence from said POINT OF BEGINNING across said DNA Way (being along the southwesterly end of Point San Bruno Boulevard Right of Way as shown on said map 70 Maps 12), North 60°33' 00" West 60.01 feet; Thence along the northwesterly line of said DNA Way (60 feet wide) North 30°27'58" East 70.25 feet (called North 30°28' 28" East 70.26 feet on said map 70 Maps 12); to the beginning of a tangent curve concave southeast; Thence along said curve, having a radius of 530.00 feet, through a central angle of 23°12'07", with a curve length of 214.62 feet (called central angle 23°11'37", with a curve length of 214.55 feet on said map 70 Maps 12); Thence continuing along said northwesterly line of DNA Way (formerly Point San Bruno Boulevard), North 53°40' 05" East 240.32 feet to the beginning of a tangent curve concave west; Thence northerly along last said curve having a radius of 30.00 feet, through a central angle of 91°59'15", with a curve length of 48.15 feet (called curve length of 48.16 feet on said map 70 Maps 12) to a broken back curve on the southwesterly right of way line of Forbes Boulevard (80 feet wide); Thence along said line of Forbes Boulevard on last said curve concave southwest, having a radius of 1760.00 feet (the center of said curve bears South 51°40’50” West) , through a central angle of 3°58'30", with a curve length of 122.11 feet to a broken back curve; Thence along last said curve concave south, having a radius of 30.00 feet (the center of said curve bears South 55°39’20” West) , through a central angle of 91°59'15", with a curve length of 48.16 feet to the southeasterly line of said DNA Way (60 feet wide); Thence along the said southeasterly line of DNA Way South 53°40'05" West 240.32 feet to the beginning of a tangent curve concave southeast; Thence southwesterly along last said curve having a radius of 470.00 feet, through a central angle of 23°12'07", with a curve length of 190.33 feet (called central angle 23°11'37", with a curve length of 190.26 feet on said map 70 Maps 12); Thence South 30°27' 58" West 69.18 feet (called South 30°28’28” West 69.19 feet on said map 70 Maps 12) to the POINT OF BEGINNING and containing 33,021 square feet or 0.7581 acres of land, more or less A plat, entitled Exhibit “B” is attached hereto and by this reference made a part hereof. Robert C. Hutton LS 5454 Date Principal Surveyor, Wilsey Ham 228 3130 LA SELVA STREET, SUITE 100, SAN MATEO, CA 94403 PHONE 650-349-2151 WWW.WILSEYHAM.COM WILSEY HAM EXHIBIT B PLAT TO ACCOMPANY LEGAL DESCRIPTION JOB NO: 2977-220 VACATION AREA #4 PORTION OF DNA WAY T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\DWG\DNA Vacation\Vacation 4\2977-220 DNA Vacation 4 plat.dwg CITY OF SOUTH SAN FRANCISCO, SAN MATEO COUNTY, CALIFORNIA SHEET: 1 OF 2 SCALE: 1"= 400' DATE: 03/14/25 LEGEND: ADJOINERS PROPERTY LINE BOUNDARY LINE CENTER LINE SHEET KEY FOUND STANDARD CITY MONUMENT 0 1 0 200 400 BASIS OF BEARINGS: THE BEARING OF NORTH 47° 33' 02" WEST, BETWEEN TWO FOUND MONUMENTS ON THE CENTERLINE OF DNA WAY, AS SHOWN ON THAT CERTAIN MAP ENTITLED “PARCEL MAP 08-0004, FILED SEPTEMBER 26, 2008 IN BOOK 78 OF PARCEL MAPS AT PAGES 71-72, SAN MATEO COUNTY RECORDS, WAS TAKEN AS THE BASIS OF BEARINGS FOR THIS MAP. ABBREVIATIONS: ( ) ORIGINAL CALL 74 M 41 FT FEET BLVD BOULEVARD M-M MONUMENT TO MONUMENT OR OFFICIAL RECORDS PM PARCEL MAP POB POINT OF BEGINNING SQ SQUARE 229 230 Plat Check Report GENENTECH DNA WAY 1 OF 2 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#4.docx Prepared by: Ty Hammond Date: March 14, 2025 Job No. 2977-220 DNA VACATION#4 Description: North:2,068,830.9011'East:6,018,855.6716' Segment# 1: Line Course: N60°33'00"W Length: 60.01' North: 2,068,860.4058'East: 6,018,803.4158' Segment# 2: Line Course: N30°27'58"E Length: 70.25' North: 2,068,920.9563'East: 6,018,839.0346' Segment# 3: Curve Length: 214.62'Radius: 530.00' Delta: 23°12'07"Tangent: 108.80' Chord: 213.16'Course: N42°04'02"E Course In: S59°32'02"E Course Out: N36°19'55"W RP North: 2,068,652.2311'East: 6,019,295.8571' End North: 2,069,079.1981'East: 6,018,981.8520' Segment# 4: Line Course: N53°40'05"E Length: 240.32' North: 2,069,221.5787'East: 6,019,175.4533' Segment# 5: Curve Length: 48.16'Radius: 30.00' Delta: 91°59'15"Tangent: 31.06' Chord: 43.16'Course: N7°40'28"E Course In: N36°19'55"W Course Out: N51°40'50"E RP North: 2,069,245.7466'East: 6,019,157.6795' End North: 2,069,264.3480'East: 6,019,181.2164' Segment# 6: Curve 231 Plat Check Report GENENTECH DNA WAY 2 OF 2 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#4.docx Length: 122.11'Radius: 1,760.00' Delta: 3°58'30"Tangent: 61.08' Chord: 122.08'Course: S36°19'55"E Course In: S51°40'50"W Course Out: N55°39'20"E RP North: 2,068,173.0682'East: 6,017,800.3803' End North: 2,069,166.0016'East: 6,019,253.5435' Segment# 7: Curve Length: 48.16'Radius: 30.00' Delta: 91°59'15"Tangent: 31.06' Chord: 43.16'Course: N80°20'17"W Course In: S55°39'20"W Course Out: N36°19'55"W RP North: 2,069,149.0766'East: 6,019,228.7737' End North: 2,069,173.2445'East: 6,019,210.9998' Segment# 8: Line Course: S53°40'05"W Length: 240.32' North: 2,069,030.8640'East: 6,019,017.3985' Segment# 9: Curve Length: 190.33'Radius: 470.00' Delta: 23°12'07"Tangent: 96.49' Chord: 189.03'Course: S42°04'02"W Course In: S36°19'55"E Course Out: N59°32'02"W RP North: 2,068,652.2329'East: 6,019,295.8558' End North: 2,068,890.5363'East: 6,018,890.7491' Segment# 10: Line Course: S30°27'58"W Length: 69.18' North: 2,068,830.9081'East: 6,018,855.6728' Perimeter: 1,303.47'Area: 33,020.92Sq.Ft. Error Closure: 0.0071 Course: N9°38'45"E Error North : 0.00702 East: 0.00119 Precision 1: 183,585.92 232 Exhibit A-4 “Description of Vacation Area #2” 233 EXHIBIT A t:\2977-genentech\2977-220 gred lla merger & dna privatization\legals\dna vacation\area 2\2977-220 dna&pnt_sanbruno_vacation_area#2_legal_-rch-2.docx SHEET 1 OF 1 Legal Description Vacation Area #2 A Portion of DNA Way (formerly Grandview Drive) Lands of Genentech, INC. City of South San Francisco All that certain real property situate in the City of South San Francisco, County of San Mateo, State of California, being a portion of DNA Way as shown on that certain map entitled “CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 3”, filed March 24, 1972, in Volume 74 of Maps at Pages 41 through 45, Office of the San Mateo County Recorder, State of California (said DNA Way being called Grandview Drive on said Map), said real property being more particularly described as follows: BEGINNING at a point on the northerly line of DNA Way (formerly Grandview Drive – 60 feet wide) said point being on the southwesterly line of Lot 4, Block 1 of said map “CABOT, CABOT & FORBES INDUSTRIAL PARK UNIT NO. 3” (74 Maps 41), said point being distant South 47°33' 02" East (called South 47°33' 16" East on said 74 Maps 41) 133.58 feet and North 42°26' 58" East 30.00’ from a found standard City encased monument in the centerline of DNA Way (said monument being at the northwest terminus of the centerline course North 47°33' 16" West as shown on said 74 Maps 41); said POINT OF BEGINNING also being South 47°33' 02" East 24.00’ from the southwesterly corner of Parcel 2 as shown on that certain map entitled “PARCEL MAP 93-303”, filed February 17, 1995, in Book 68 of Parcel Maps at Pages 20 and 21, Office of the San Mateo County Recorder, State of California; Thence from said POINT OF BEGINNING along the said northerly line of DNA Way, South 47°33' 02" East (called South 47°33' 16" East on said 74 Maps 41) 311.57 feet to the beginning of a tangent curve concave north; Thence along said curve, having a radius of 345.00 feet, through a central angle of 101° 59' 00", with a curve length of 614.08 feet (called central angle 101° 58' 16", with a curve length of 614.01 feet on said 74 Maps 41); Thence continuing along said northerly line, North 30°27'58" East (called North 30°28'28" East on said 74 Maps 41) 33.42 feet; Thence across said DNA Way, South 03°15' 07" West 171.10 feet to southerly line of DNA Way to a point on the southerly line of said DNA Way being the beginning of a broken back curve concave south; Thence along last said curve, to which center bears South 40°56'32" West, having a radius of 40.00 feet through a central angle of 79°40'06”, with a curve length of 55.62 feet to a point of reverse curvature; Thence along said southerly line of DNA Way (formerly Grandview Drive – 60 feet wide), on a tangent curve to the right having a radius of 405.00 feet, through a central angle of 81°10'31", with a curve length of 573.79 feet (called central angle 81°09'51", with a curve length of 573.72 feet on said 74 Maps 41); Thence North 47°33' 02" West (called North 47°33' 16" West on said 74 Maps 41) 341.57 feet to the beginning of a broken back curve concave north; Thence into said DNA Way along last said curve, to which center bears North 40°26'58" East, having a radius of 30.00 feet through a central angle of 90°00'00”, with a curve length of 47.12 feet to a point in the centerline of said DNA WAY; Thence North 42°26' 58" East 30.00 feet to the POINT OF BEGINNING and containing 58,586 square feet of land, more or less. A plat, entitled Exhibit “B” is attached hereto and by this reference made a part hereof. Robert C. Hutton LS 5454 Date Principal Surveyor, Wilsey Ham 234 GENENTECH INC.APN: 015-092-280LANDS OFGENENTECH INC.APN: 015-240-270340 DNA WAYGENENTECH INCAPN: 015-250-340389 DNA WAYLANDS OFGENENTECH INC.APN: 015-240-280330 DNA WAYGENENTECH INC.APN: 015-250-140333 POINT SANBRUNO BLVDGENENTECH INC.APN: 015-250-450301 DNA WAYGENENTECH INC.APN: 015-250-340305 DNA WAYGENENTECH USA, INC.APN: 015-250-440325 AND 335 DNA WAYLANDS OFG-TECH FELLERSAPN: 015-240-270340 DNA WAYDNA WAY (FORMALLY GRANDVIEW DRIVE)S 3°15'07" W 688.78'N 3°15'07" E 376.12'BASIS OF BEARINGSS 47°33'02" E 445.26' M-M133.58'75 PM 79-8078 PM 71-7275 PM 83-8458 PM 50-5264 PM 84-85POB60'30'30' (DEDICATED BY 74 M 41)MONUMENT PER66 PM 79POINT SAN BRUNO BLVDDEDICATED BY 5721 OR 656,66468 PM 20-21VACATION AREA #258586 SQ FT +/-L1S 47°33'02" E 311.57'R=345.00'∆=101°59'00"L=614.08'L2L3C1R=405.00'∆=81°10'31"L=573.79'N 47°33'02" W 341.57'C2LINE TABLELINE #L1L2L3DIRECTIONN42°26'58"EN30°27'58"ES03°15'07"WLENGTH30.00'33.42'171.10'CURVE TABLECURVE#C1C2ARC LENGTH55.62'47.12'RADIUS40.00'30.00'DELTA79°40'06"90°00'00"S 40°56'32" W(R)N 42°26'58" E(R)TIE24.0' TIE (60' WIDE)3130 LA SELVA STREET, SUITE 100, SAN MATEO, CA 94403 PHONE 650-349-2151 WWW.WILSEYHAM.COMWILSEY HAM EXHIBIT BPLAT TO ACCOMPANY LEGAL DESCRIPTIONJOB NO:2977-220VACATION AREA #2PORTION OF DNA WAYT:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\DWG\DNA Vacation\Vacation 2\2977-220 DNA Vacation 2 plat.dwgCITY OF SOUTH SAN FRANCISCO, SAN MATEO COUNTY, CALIFORNIASHEET: 2 OF 2SCALE: 1" = 150'DATE: 03/04/25LEGEND:ADJOINERS PROPERTY LINEBOUNDARY LINECENTER LINEFOUND STANDARD CITY MONUMENT000000000000001075 150BASIS OF BEARINGS:THE BEARING OF NORTH 47° 33' 02" WEST, BETWEEN TWO FOUND MONUMENTS ON THE CENTERLINE OFDNA WAY, AS SHOWN ON THAT CERTAIN MAP ENTITLED “PARCEL MAP 08-0004, FILEDSEPTEMBER 26, 2008 IN BOOK 78 OF PARCEL MAPS AT PAGES 71-72, SAN MATEO COUNTY RECORDS,WAS TAKEN AS THE BASIS OF BEARINGS FOR THIS MAP.ABBREVIATIONS:( ) ORIGINAL CALL 74 M 41M-M MONUMENT TO MONUMENTOR OFFICIAL RECORDSPM PARCEL MAPPOB POINT OF BEGINNINGSQ SQUAREFT FEET1 0F 1ER235 Plat Check Report 2977-220 GENENTECH 1 OF 2 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#2.docx Prepared by: Ty Hammond Date: February 28, 2025 Job No. 2977-220 DNA VACATION#2 Description: North:2,066,082.1330'East:6,019,114.7786' Segment# 1: Line Course: S3°15'07"W Length: 171.10' North: 2,065,911.3086'East: 6,019,105.0726' Segment# 2: Curve Length: 55.62'Radius: 40.00' Delta: 79°40'06"Tangent: 33.37' Chord: 51.25'Course: N88°53'30"W Course In: S40°56'32"W Course Out: N38°43'33"W RP North: 2,065,881.0937'East: 6,019,078.8607' End North: 2,065,912.2997'East: 6,019,053.8369' Segment# 3: Curve Length: 573.79'Radius: 405.00' Delta: 81°10'31"Tangent: 346.98' Chord: 526.99'Course: N88°08'18"W Course In: N38°43'33"W Course Out: S42°26'58"W RP North: 2,066,228.2598'East: 6,018,800.4712' End North: 2,065,929.4211'East: 6,018,527.1207' Segment# 4: Line Course: N47°33'02"W Length: 341.57' North: 2,066,159.9602'East: 6,018,275.0854' Segment# 5: Curve Length: 47.12'Radius: 30.00' Delta: 90°00'00"Tangent: 30.00' 236 Plat Check Report 2977-220 GENENTECH 2 OF 2 T:\2977-GENENTECH\2977-220 gRED LLA Merger & DNA Privatization\Closure\DNA VACATION\Closure Calc Vacation#2.docx Chord: 42.43'Course: N87°26'58"E Course In: N42°26'58"E Course Out: S47°33'02"E RP North: 2,066,182.0964'East: 6,018,295.3336' End North: 2,066,161.8482'East: 6,018,317.4698' Segment# 6: Line Course: N42°26'58"E Length: 30.00' North: 2,066,183.9844'East: 6,018,337.7179' Segment# 7: Line Course: S47°33'02"E Length: 311.57' North: 2,065,973.6935'East: 6,018,567.6171' Segment# 8: Curve Length: 614.08'Radius: 345.00' Delta: 101°59'00"Tangent: 425.91' Chord: 536.17'Course: N81°27'28"E Course In: N42°26'58"E Course Out: S59°32'02"E RP North: 2,066,228.2598'East: 6,018,800.4712' End North: 2,066,053.3349'East: 6,019,097.8368' Segment# 9: Line Course: N30°27'58"E Length: 33.42' North: 2,066,082.1406'East: 6,019,114.7817' Perimeter: 2,178.28'Area: 58,586.38Sq.Ft. Error Closure: 0.0081 Course: N22°21'45"E Error North : 0.00752 East: 0.00309 Precision 1: 268,922.22 P.O.B. 237 Exhibit B “Conditions Required to be Satisfied Before Right-of-Way Vacation Occurs” 1. Genentech and City shall execute a Maintenance and License Agreement providing City, public, and emergency access to the vacated right-of-way for ingress, egress, and maintenance purposes. 2. 60 days has elapsed after the Effective Date of the Purchase and Sale Agreement, such that Genentech’s Decision Date (as defined therein) has passed and/or Genentech has provided a written waiver of its right to terminate the Purchase and Sale Agreement pursuant to Section 3.4 thereof. 3. Genentech has deposited the full Purchase Price into Escrow in accordance with the terms of the Purchase and Sale Agreement. 238 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-399 Agenda Date:6/25/2025 Version:1 Item #:8c. Resolution approving a Purchase and Sale Agreement with Genentech,Inc.for the disposition of the vacated public streets Cabot Road,Point San Bruno Boulevard,and DNA Way located entirely within the Genentech Campus for the sum of $25,000,000 and authorizing the City Manager to execute the Purchase and Sale Agreement. WHEREAS,the City is the owner of certain real property (the “Property”)located in the City of South San Francisco,California,known as Cabot Road,Point San Bruno Boulevard,and DNA as described and depicted in Exhibit A and Exhibit B to the Purchase and Sale Agreement,attached hereto and incorporated herein as Attachment 1; and WHEREAS,on November 24,2020,and December 1,2020,the City Council of the City of San South San Francisco unanimously approved the Genentech Campus Master Plan Update project,which approval included, but was not limited to,adoption of the Development Agreement,certification of that certain Environmental Impact Report for the Genentech Master Plan Update (State Clearinghouse No.2017052064),approval of that certain Genentech Master Plan Update (“Master Plan”),and approval of certain amendments to the City’s Genentech Master Plan Zoning District so as to facilitate implementation of the Master Plan; and WHEREAS,the Master Plan articulates a vision for new growth and development within the Campus that fosters intensification of development and infill development by serving as a general guide for the future placement and design of individual buildings and other Campus improvements over time.Because the Master Plan is an overall development that provides the basis for future approvals,it provides for flexibility during implementation.Rather than establishing the location,size,or design of individual buildings and improvements,the Master Plan authorizes such details to be developed in conjunction with future Campus- related land use approvals proposed by Genentech and approved by City in accordance with applicable law, including, but not limited to, the Master Plan and the City’s Municipal Code; and WHEREAS,to promote the Master Plan’s stated objective of establishing an integrated and walkable Campus that implements a more pedestrian-oriented shared street concept that prioritizes people over motorized vehicles,the Master Plan contemplates the potential reconfiguration of portions of DNA Way where it passes through the central portion of the Master Plan’s “Upper Campus”planning area,thereby improving pedestrian connections between indoor spaces and outdoor spaces so as to activate the Campus core while also permitting continued service vehicle and emergency access along said portions of the existing DNA Way right-of-way through the use of special pavers or other appropriate design treatments; and WHEREAS,to facilitate the design and future improvement of pedestrian-oriented circulation improvements in accordance with the Master Plan and applicable administrative or discretionary approval processes set forth in City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™239 File #:25-399 Agenda Date:6/25/2025 Version:1 Item #:8c. accordance with the Master Plan and applicable administrative or discretionary approval processes set forth in the City of South San Francisco Municipal Code,the Parties desire to enter into the Purchase and Sale Agreement to set forth the terms and conditions pursuant to which the City would sell to Genentech the real property that comprises DNA Way, Cabot Road, and Point San Bruno Boulevard; and WHEREAS, the Purchase and Sale Agreement includes the following deal points: ·Genentech will pay $25,000,000 for the Property and shall be responsible for the costs of maintaining the Property, ·Prior to close of escrow,Genentech and City will execute a Maintenance and Public Access License Agreement which will provide public,City,and emergency access to the Property and outline Genentech’s maintenance obligations for the Property, ·As part of a future development application,Genentech may seek closure of Vacation Area #2 (orange section)without change to the Purchase Price because the Purchase Price set forth in the Purchase and Sale Agreement includes the FMV of said portions of the Property if redeveloped as a non-roadway use, ·Genentech may seek closure of Vacation Area #3 (blue section)and Vacation Area #4 (pink section)after January 1,2031 as part of a development application to the City but such closure shall require the preparation of an appraisal and supplemental payment to the City, ·Vacation Area #1 (green section)shall remain publicly accessible in perpetuity to ensure public access to the Wind Harp. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco hereby: 1.Approves the Purchase and Sale Agreement between City and Genentech for the disposition of Cabot Road,Point San Bruno Boulevard,and DNA Way located entirely within the Genentech Campus for the sum of $25,000,000,substantially in the form attached hereto and incorporated herein as Attachment 1; and 2.Authorizes the City Manager to execute the Purchase and Sale Agreement,subject to review by the City Attorney and subject to minor revisions and clarifications of the City Attorney that do not otherwise expand the City’s obligations; and 3.Authorizes the City Manager to take any other related actions consistent with the intent of the resolution. City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™240 REAL PROPERTY PURCHASE, SALE AND MAINTENANCE AGREEMENT AND ESCROW INSTRUCTIONS by and between GENENTECH, INC., a Delaware corporation as Buyer and CITY OF SOUTH SAN FRANCISCO a California municipal corporation, as Seller _____________________, 2025 241 i TABLE OF CONTENTS 242 ii EXHIBIT LIST Exhibit Description Reference Exhibit A DEPICTION OF “DNA WAY,” “CABOT ROAD”, AND “PSB BLVD” Exhibit A-1 “Vacation Area #1” Exhibit A-2 “Vacation Area #3” Exhibit A-3 “Vacation Area #4” Exhibit A-4 “Vacation Area #2” Exhibit B PROPERTY DESCRIPTION Exhibit C INFRASTRUCTURE IMPROVEMENTS Exhibit D GRANT DEED Exhibit E MAINTENANCE AND PUBLIC ACCESS LICENSE AGREEMENT Exhibit F PUBLIC UTILITIES EASEMENT Exhibit G EXCLUDED IMPROVEMENTS 243 1 REAL PROPERTY PURCHASE, SALE AND MAINTENANCE AGREEMENT AND ESCROW INSTRUCTIONS THIS REAL PROPERTY PURCHASE, SALE AND MAINTENANCE AGREEMENT AND ESCROW INSTRUCTIONS (this “Agreement”) is entered into as of _________, 2025 (the “Effective Date”), by and between the City of South San Francisco, a California municipal corporation (“City” or “Seller”), and Genentech, Inc., a Delaware corporation (“Buyer”). RECITALS This Agreement is based on the following facts: A. WHEREAS, Buyer has a legal and/or equitable interest in certain real property located in the City of South San Francisco on the approximately 207-acre site commonly known as the Genentech Campus (the “Campus”). The Campus is more particularly described in that certain Development Agreement by and Between City of South San Francisco and Genentech, Inc. recorded in the official records of San Mateo County as Recorders Document No. [NUMBER] (“Development Agreement”). B. WHEREAS, an approximately 60-foot-wide public street commonly known as “DNA Way” is located entirely within the legal boundaries of the Campus, running in an approximately east/west direction, with its easternmost terminus located at its intersection with Forbes Boulevard and its westernmost terminus located at its intersection with East Grand Avenue, as more as generally depicted on the attached Exhibit A (“DNA Way”). Pursuant to the terms of this Agreement, he City intends to take all required legal action necessary to vacate the right- of-way underlying DNA Way pursuant to the Roadways Vacation (as hereinafter defined). C. WHEREAS, an existing, approximately [XYZ] foot wide public street commonly known as “Point San Bruno Boulevard” is located entirely within the boundaries of the Campus, running in an approximately north/south direction, with its northernmost terminus located at its intersection with the DNA Way and its southernmost terminus located at its intersection with the existing private driveway serving the Campus Site’s so-called “Building 15,” as generally depicted on the attached Exhibit A (“PSB Boulevard”). PSB Boulevard is a secondary street that provides internal Campus circulation. Pursuant to the terms of this Agreement, the City intends to take all required legal action necessary to vacate the right-of-way underlying PSB Boulevard pursuant to the Roadways Vacation (as hereinafter defined). D. WHEREAS, an approximately [___] foot wide portion of a public street between Allerton and DNA Way commonly known as “Cabot Road” is located entirely within the legal boundaries of the Campus, running in an approximately east/west direction, with its westernmost terminus located at its intersection with Allerton Avenue and its easternmost terminus located at its intersection with DNA Way, as more as generally depicted on the attached Exhibit A (“Cabot 244 2 Road,” with the portions of DNA Way, Cabot Road and PSB Boulevard subject to the Roadways Vacation (as hereinafter defined) collectively referred to herein as the “Roadways”). Pursuant to the terms of this Agreement, the City intends to take all required legal action necessary to vacate the right-of-way underlying Cabot Road pursuant to the Roadways Vacation (as hereinafter defined). E. WHEREAS, the City is the fee owner of the real property that comprises DNA Way, Cabot Road and PSB Boulevard (subject to the Roadways Vacation), as well as the existing roadway improvements situated thereupon. F. WHEREAS, on November 24, 2020 and December 1, 2020, the City Council of the City of San South San Francisco unanimously approved the Buyer’s Genentech Campus Master Plan Update project, which approval included, but was not limited to, adoption of the Development Agreement, certification of that certain Environmental Impact Report for the Genentech Master Plan Update (State Clearinghouse No. 2017052064), approval of that certain Genentech Master Plan Update (“Master Plan”), and approval of certain amendments to the City’s Genentech Master Plan Zoning District so as to facilitate implementation of the Master Plan. G. WHEREAS, the Master Plan articulates a vision for new growth and development within the Campus that fosters intensification of development and infill development by serving as a general guide for the future placement and design of individual buildings and other Campus improvements over time. Because the Master Plan is an overall development that provides the basis for future approvals, it provides for flexibility during implementation. Rather than establishing the location, size or design of individual buildings and improvements, the Master Plan authorizes such details to be developed in conjunction with future Campus-related land use approvals proposed by Buyer and approved by City in accordance with applicable law, including but not limited to the Master Plan and the City’s Municipal Code. H. WHEREAS, to promote the Master Plan’s stated objective of establishing an integrated and walkable Campus that implements a more pedestrian-oriented shared street concept that prioritizes people over motorized vehicles, the Master Plan contemplates the potential reconfiguration of portions of DNA Way where it passes through the central portion of the Master Plan’s “Upper Campus” planning area, thereby improving pedestrian connections between indoor spaces and outdoor spaces so as to activate the Campus core while also permitting continued service vehicle and emergency access along said portions of the existing DNA Way right-of-way through the use of special pavers or other appropriate design treatments. I. WHEREAS, to facilitate the design and future improvement of pedestrian-oriented circulation improvements in accordance with the Master Plan and applicable administrative or discretionary approval processes set forth in the City of South San Francisco Municipal Code, the Parties desire to enter into this Agreement to set forth the terms and conditions pursuant to 245 3 which the City would sell to Buyer the real property that comprises DNA Way, Cabot Road and PSB Boulevard. AGREEMENT In consideration of the mutual covenants and agreements contained in this Agreement, Buyer and Seller agree as follows: 1. BASIC TERMS 1.1 Property. The real property that Seller is selling and Buyer is buying is located on the Campus, in the City of South San Francisco, County of San Mateo, State of California. Such real property is presently improved with roadway improvements, including roadway paving, curbs, gutters and other improvements typical of a city street. The real property, together with all other property that is the subject of this Agreement, is defined more fully in Section 2.1 below. The Property does not include those certain improvements described in Exhibit G “Excluded Improvements.” After closing, Seller will continue to own and maintain these Excluded Improvements. Seller and Buyer will enter into a Maintenance and Public Access License Agreement, a form of which is attached as Exhibit E, pursuant to which Buyer will reimburse Seller for the ongoing costs of maintaining the Excluded Improvements. 1.2 Purchase Price. The purchase price for the property (the “Purchase Price”) is Twenty- Five Million Dollars ($25,000,000.00). Within fourteen (14) business days after executing this Agreement, Buyer shall deposit five percent (5%) of the Purchase Price into Escrow in the amount of One Million Two Hundred Fifty Thousand Dollars ($1,250,000.00) (the “Deposit”), on and subject to the terms described in Section 2.2 below. 1.3 City Costs and Fees. In addition to the Purchase Price and any other monies payable to Seller pursuant to this Agreement, Buyer shall reimburse Seller for all staff, 3rd party consultant, and attorney costs associated with preparation and execution of this Agreement and resulting conveyance, and all costs associated with processing and effectuating the Roadways Vacation. Amounts paid in reimbursement of these costs shall be nonrefundable in the event that this Agreement is terminated and/or the transaction does not Close. In addition, Buyer shall pay all standard and adopted City fees applicable to the conveyance and associated Roadways Vacation approvals/process. 1.4 Escrow. On or promptly after the date this Agreement is executed, an escrow (the “Escrow”) shall be opened with Chicago Title Company, Commercial Services with an address of 3620 Happy Valley Rd. Ste 100, Lafayette, CA 94549, Attention: Laurie Edwards, Laurie.Edwards@ctt.com Tel: 510-350-4588, (the “Escrow Holder”). This 246 4 Agreement shall constitute both an agreement between Seller and Buyer and escrow instructions for Escrow Holder. Seller and Buyer shall promptly execute and deliver to Escrow Holder any additional escrow instructions requested by Escrow Holder which are consistent with the terms of this Agreement. Any additional instructions shall not modify or amend the provisions of this Agreement unless expressly agreed in writing by Buyer and Seller. 1.5 Review Periods. Buyer shall have until the 60th day after the Effective Date (the “Decision Date”) to complete all of its inspections, investigations and reviews of the property (including title reviews, soils and environmental inspections, financial and feasibility studies, and all other inspections, investigations and reviews), all in accordance with Article 3 below. Seller shall not commence any formal action in furtherance of Buyer’s Closing Conditions in Section 4.1 until after the Decision Date or Buyer’s written waiver of its right to terminate this Agreement pursuant to Section 3.4 hereof. 1.6 Closing Date. Escrow shall close on or the date on which all Conditions to the Closing (as defined in this Agreement, as the same may have been amended, have been satisfied, or waived by Buyer and/or Seller (the “Closing Date”). As used in this Agreement, “Closing” means the recordation of the “Deed” (as defined below) in the Official Records of San Mateo County, California. 1.7 Title. The title company (the “Title Company”) shall be Chicago Title Company, Commercial Services with an address of 3620 Happy Valley Road, Suite 100, Lafayette, CA 94549, Attention: Laurie Edwards. 1.8 Seller’s Address for Notices. All notices to be provided to Seller shall be sent to the following addresses: City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Attn: City Manager Telephone: (650) 877-8500 Fax: (650) 829-6609 With a copy to: Redwood Public Law, LLP 409 13th Street, Suite 600 Oakland, CA 94612 Attn: Sky Woodruff, City Attorney Telephone: 510-877-5840 Email: sky@redwoodpubliclaw.com 247 5 1.9 Buyer’s Address for Notices. All notices to be provided to Buyer shall be sent to the following addresses: Genentech, Inc. 1 DNA Way Mailstop 258A South San Francisco, CA 94080-4990 Attn: Thomas Ruby Telephone: (650) 225-3149 Email: Ruby.Thomas@gene.com With a copy to: Holland & Knight, LLP 560 Mission Street, Suite 1900 San Francisco, California 94105 Attn: Bradley Brownlow Telephone: (415) 743-6975 Email: Bradley.Brownlow@hklaw.com 2. PURCHASE AND SALE 2.1 Agreement to Buy and Sell. Subject to all of the terms and conditions of this Agreement, Seller agrees to sell and convey to Buyer, and Buyer agrees to acquire and purchase from Seller: (i) that certain real property generally described in Section 1.1 and more particularly described on Exhibit B, together with all rights, privileges and easements appurtenant thereto, including and without limitation all minerals, oil, gas and other hydrocarbon substances thereon (the “Land”), (ii) all other structures located on the Land; (specifically, the improvements described in Section 1.1 above) (the “Structures”) and the existing parking lot and other parking facilities (collectively, the “Improvements,” and collectively with the Land, the “Real Property”), (iii) all development rights, air rights, water, water rights and water stock relating thereto, and any easements, rights-of-way, or other rights appurtenant thereto or used in conjunction therewith, (iv) all right, title and interest now or hereafter held by Seller in and to all tangible personal property (collectively, the “Personal Property”) located on or about the Land or Improvements or attached thereto or used in connection with the operation, maintenance, ownership and occupancy thereof, including without 248 6 limitation all furniture, equipment, machinery, inventories, supplies, signs, cables, fiber optic wires, and other tangible personal property of every kind and nature, except to the extent such Personal Property is part of or appurtenant to improvements that are retained by Seller and not listed in Section 1.1, (v) all right, title and interest now or hereafter held by Seller in and to all intangible property (the “Intangible Property”) in connection with the Land, the Improvements or the Personal Property, or any business or businesses now or hereafter conducted thereon or with the use thereof, all transferable licenses, permits, authorizations, approvals and certificates of occupancy issued by governmental or quasi-governmental authorities relating to the use, maintenance, occupancy and operation of the Real Property and the Personal Property, and all other intangible rights used in connection with or relating to the Land, Improvements or Personal Property or any part thereof. (vi) All of the foregoing of which shall be referred to in this Agreement as the “Property”. Without limiting the foregoing, the parties acknowledge and agree that the Property includes certain street and roadway improvements, including asphalt roadway surfaces, curbs, gutters and sidewalks, as specified and depicted on Exhibit C (“Infrastructure Improvements”). 2.2 Payment of Purchase Price. The Purchase Price (as defined in Section 1.2 above) shall be payable as follows: 2.2.1 Not later than the date stated in Section 1.2 above, Buyer shall deposit the Deposit into Escrow, by certified check or wire transfer of federal funds or in other immediately available funds. Except as otherwise stated in this Agreement, the Deposit shall be nonrefundable to Buyer after the Decision Date. The Deposit and all interest accrued thereon while in Escrow shall be applied to the Purchase Price at Closing. 2.2.2 Notwithstanding anything to the contrary stated in this Agreement, a portion of the Deposit in the amount of Fifty Thousand Dollars ($50,000.00) (the “Nonrefundable Portion”) shall be non-refundable to Buyer in the event it exercises its right to terminate this Agreement pursuant to Section 3.4 in order to provide to Seller consideration for its agreement to place the Property for sale and the opportunity cost associated with the expenditure of City resources on this transaction as opposed to expenditure on other City priorities in the event of such a termination. Accordingly, even if Buyer terminates this Agreement in a situation where Buyer is entitled to a refund of the Deposit, Buyer agrees that the Nonrefundable Portion will not be returned to Buyer, but instead will be delivered to Seller. 249 7 2.2.3 At least one (1) business day prior to the Closing Date, Buyer shall deposit into Escrow the balance of the Purchase Price, subject to adjustment by reason of any applicable prorations. The deposit required by this paragraph shall be made by cashier’s check, wire transfer of federal funds or another immediately available form. 2.3 General. If this Agreement is not terminated prior to Closing in accordance with the terms hereof, Seller shall convey fee title to the Property to Buyer by a grant deed subject only to the “Permitted Exceptions” (defined below). 2.4 Title Insurance. At the Close of Escrow, Seller shall cause the Title Company to issue and deliver to Buyer an ALTA extended coverage form policy of title insurance, with liability and limits in the amount of the Purchase Price, insuring title to the Property as vested in Buyer, subject only to the Permitted Exceptions (the “Owner’s Policy”), and such other matters as Buyer may approve in writing. Notwithstanding the foregoing, the premiums and other costs payable to the Title Company in connection with the issuance of the Owner’s Policy shall be borne exclusively by Buyer. 2.5 Condition of Title at Closing. Upon the Closing, Seller shall covey to Buyer good, marketable and insurable fee simple title to the Property by a duly executed and acknowledged Deed, subject only to the Permitted Exceptions. 2.6 Independent Consideration. A portion of the Deposit equal to One Hundred and No/100 Dollars ($100.00) (the “Independent Consideration”), which amount has been bargained for and agreed upon as consideration for Seller’s execution and delivery of this Agreement, shall be delivered to Seller in the event Buyer terminates this Agreement on or before the Decision Date. The parties agree that the Independent Consideration represents a bargained-for agreement representing the executory nature of this Agreement. 2.7 Reserved Rights to Roadways. The conveyance of the Property to Buyer shall be made subject to a public access license (the “Reserved License”) for ingress, egress, utility and other ancillary purposes in favor of the City and members of the general public to use the surface areas of the Roadways, as indicated on Exhibit A, and as may be more particularly described pursuant to the Roadways Vacation. The Reserved License shall be memorialized in Maintenance and Public Access License Agreement (the “Maintenance and License Agreement”) between Seller and Buyer. The Maintenance and License Agreement shall provide, inter alia, for the initial retention of access and other public rights over certain portions of the Property as indicated on Exhibit A. If Buyer desires to terminate the Maintenance and License Agreement and the associated public access granted therein in the future, then Buyer shall seek approvals from the City pursuant to Section 7. 250 8 2.8 Termination of Existing and Conveyance of New Easements. As of Closing, existing easements in favor of Seller that encumber the portions of the Property subject to the Roadways Vacation shall be terminated, extinguished and released, and replaced with similar easements pursuant to the form of Public Utilities Easement attached hereto as Exhibit G identifying all necessary and required public utility easements in favor of the Seller and/or in favor of other beneficial interest holders. Such easements shall encumber Buyer’s interests in the Roadways, subject, however, to Buyer’s right as owner of the burdened estate thereunder to maintain, repair, and reasonably relocate the portions of the Infrastructure Improvements that are subject thereto, and to establish reasonable operating procedures and access rules with respect thereto. 3. FEASIBILITY REVIEW PERIOD 3.1 Deliveries by Seller. 3.1.1 Contemporaneous with the Opening of Escrow, Escrow Holder shall deliver to Buyer a copy of a current preliminary title report issued by the Title Company showing the condition of title to the Property, accompanied by copies of all documents referred to in the report (collectively, the “PTR”). 3.1.2 In order to facilitate Buyer’s review and evaluation of the Property, Seller shall provide or make available to Buyer copies of all other non-privileged, actually known and reasonably available documents and materials that materially relate to the Property and are in Seller’s possession. Seller shall deliver the foregoing items within a reasonable period of time following receipt of Buyer’s written request therefor, it being understood and agreed that Buyer’s review pursuant to Section 3.3 may not be reasonably completed prior to the Decision Date if Seller’s delivery of the items described herein is delayed. In the event that a non- privileged, actually known item is reasonably available and not provided within fourteen (14) business days of Buyer’s request for such item, then the Decision Date shall be extended an additional day for each day of delay after the fourteen- day period to afford Buyer a reasonable opportunity for review and approval. 3.2 Buyer’s Review of Title. 3.2.1 Buyer shall have fifteen (15) business days following the Opening of Escrow within which to deliver to Seller written notice of Buyer’s disapproval or conditional approval of title as shown on the PTR (the “Disapproved Exceptions”). Buyer’s failure to provide the notice on or before such date shall constitute Buyer’s approval of the condition of title as shown on the PTR. 3.2.2 If Buyer timely notifies Seller of its Disapproved Exceptions by the date referenced in Section 3.2.1, Seller shall notify Buyer in writing on or before the 251 9 thirtieth (30th) day after the Opening of Escrow that: (a) Seller has removed the Disapproved Exceptions from title (or met Buyer’s conditions for approval of a title exception); or (b) Seller is covenanting to do so as of or before Closing; or (c) Seller will not remove (or meet the conditions of approval of) specified Disapproved Exceptions. Failure to address Disapproved Exceptions in any notice, or failure to give such a notice, shall constitute Seller’s statement that it will not remove or otherwise address the Disapproved Exceptions. If Seller covenants to remove any Disapproved Exceptions, such removal shall be a condition precedent to Closing and Buyer’s obligations under this Agreement, and failure to effect such removal shall be a breach by Seller of this Agreement. 3.2.3 If Seller does not remove or covenant to remove (or meet or covenant to meet the conditions of approval of) any Disapproved Exceptions, Buyer shall have the right to terminate this Agreement on or before the Decision Date or to waive its objection to the Disapproved Exceptions in question and proceed to Closing as Buyer’s sole and exclusive remedy. Buyer’s failure to provide written notice of termination on or before the Decision Date shall constitute Buyer’s waiver of its disapproval of the Disapproved Exceptions. In the case of Buyer’s waiver (or deemed waiver) of Disapproved Exceptions, Seller shall have no obligation to remove or otherwise address the Disapproved Exceptions from title and such waived Disapproved Exceptions shall be deemed approved. If Buyer elects to terminate this Agreement, the provisions of Section 3.4 shall apply. 3.2.4 In this Agreement, the term “Permitted Exceptions” means: (a) installments of general and special real property taxes and assessments not then delinquent, (b) any encumbrance arising from the acts or omissions of Buyer, (c) public utility easements and emergency access easements acceptable to Buyer in its sole and absolute discretion, and (d) any other exception expressly approved by Buyer in writing. 3.3 Buyer’s Review of the Property and Agreements 3.3.1 Review of Agreements. Buyer shall have until the Decision Date to review the documents and other materials delivered pursuant to Section 3.1. If on the basis of the review, or otherwise for any reason or no reason, Buyer determines in its sole and subjective discretion that the Property is not suitable for Buyer’s intended use, then on or before the Decision Date, Buyer may terminate this Agreement in accordance with Section 3.4 below. Buyer’s failure to provide a written termination notice on or before the Decision Date shall constitute Buyer’s approval of each document and such other materials described in Section 3.1 (whether or not it was actually reviewed by Buyer). 252 10 3.3.2 Inspection of the Property (a) Nonexclusive License. Seller hereby grants to Buyer and its agents, employees, representatives or contractors (collectively, the “Buyer’s Agents”) a nonexclusive license to enter onto the Property solely for the purpose of conducting Buyer’s inspection of the Property to determine if the Property is suitable for Buyer’s purposes (the “Inspection”). Any Inspection work shall be at the sole cost and expense of Buyer. The license created under this paragraph shall expire on the Closing Date (or on the date this Agreement is terminated, if earlier than the Closing Date). (b) Physical Testing. Notwithstanding the foregoing, without first obtaining Seller’s prior written consent, Buyer shall only conduct a visual inspection, with no right to conduct any physical testing, boring, sampling or removal of any portion of the Property (collectively, “Physical Testing”). If Buyer wishes to conduct any Physical Testing of the Property, Buyer shall submit a work plan to Seller for Seller’s prior written approval, which Seller may modify, limit or disapprove in its sole and absolute discretion. If Seller approves a work plan, all Physical Testing shall comply strictly with the work plan that has been approved by Seller, and if Seller does not approve a work plan, Buyer shall not conduct any Physical Testing of the Property. If Buyer intends to conduct any Physical Testing, Buyer shall, prior to commencing any such Physical Testing, provide Seller with sufficient evidence to show that Buyer and Buyer’s Agents who are to enter upon the Property are adequately covered by policies of insurance insuring Buyer and Seller against any and all liability arising out of Buyer’s or Buyer’s Agents’ entry upon and Inspection of the Property, including without limitation any loss or damage to the Property, with coverage in the amount not less than $1,000,000 per occurrence. (c) Indemnification. To the fullest extent permitted by law, Buyer agrees to hold harmless, defend and indemnify and hereby releases Seller and its respective successors and assigns (the “Seller’s Parties”) and the Property from and against any and all claims, demands, causes of actions, losses, liabilities, liens, encumbrances, costs or expenses (including reasonable attorneys’ fees and litigation costs) arising out of, connected with or incidental to any injuries to persons (including death) or property (real or personal) by reason of Buyer or Buyer’s Agents entry on and inspection of the Property and any Physical Testing work or activities conducted on the Property by Buyer or Buyer’s Agents. (d) Condition of Property. In no event shall Buyer or Buyer’s Agents have the right to place any materials or equipment on the Property (including signs 253 11 or other advertising material) until after the Closing has occurred. Buyer shall, at its sole cost and expense, clean up and repair the Property, in whatever manner necessary, after Buyer’s or Buyer’s Agents’ entry so that the Property shall be returned to the same condition that existed prior to Buyer’s or Buyer’s Agents’ entry. (e) Natural Hazards Disclosures. Buyer and Seller acknowledge that Seller may be required to disclose if Seller’s Property lies within the following natural hazard areas or zones: (i) a special flood hazard area designated by the Federal Emergency Management Agency (California Civil Code Section 1103(c)(1)); (ii) an area of potential flooding (California Government Code Section 8589.4); (iii) a very high fire hazard severity zone (California Government Code Section 51178 et seq.); (iv) a wild land area that may contain substantial forest fire risks and hazards (Public Resources Code Section 4135; (v) earthquake fault zone (Public Resources Code Section 2622); or (vi) a seismic hazard zone (Public Resources Code Section 2696) (sometimes all of the preceding are herein collectively called the “Natural Hazard Matters”). Buyer and Seller hereby instruct the Escrow Holder, or an affiliate thereof (who, in such capacity, is called the “Natural Hazard Expert”), at Buyer’s expense, to examine the maps and other information specifically made available to the public by government agencies for the purposes of enabling Seller to fulfill its disclosure obligations, if and to the extent such obligations exist, with respect to the natural hazards referred to in California Civil Code Section 1103 et seq. and to report the result of its examination to Buyer and Seller in writing (the “Natural Hazard Disclosure Statement”). Buyer agrees to provide Seller with a written acknowledgment of its receipt of the Natural Hazard Disclosure Statement. Notwithstanding the foregoing, Buyer’s receipt of the Natural Hazard Disclosure Statement shall not be deemed to modify or otherwise affect any other express representation, warranty or covenant of Seller set forth in this Agreement, and shall not constitute a waiver of any of Buyer’s rights arising out of a breach by Seller of the express representations, warranties and covenants of Seller expressly set forth in this Agreement. (f) Termination of this Agreement. On or before the Decision Date, Buyer shall have the right to prepare or cause the preparation of, obtain, review and approve, among other things, such studies, reports, investigations and analyses of the Property, including such soils, geological, engineering and environmental tests and reports and other inspections of the Property as Buyer shall deem necessary in order to determine whether the Property is suitable for Buyer’s intended use, and to review and investigate all applicable zoning requirements, federal, state and 254 12 local laws, ordinances, rules, regulations, permits, licenses, approvals and orders. If, on the basis of the review and the Inspection described in this Section, or for any other reason or no reason, Buyer determines in its sole and subjective discretion that the Property is not suitable for Buyer’s intended use, then on or before the Decision Date, Buyer may terminate this Agreement in accordance with Section 3.4. Buyer’s failure to provide such notice on or before the Decision Date shall constitute Buyer’s approval of the items described in this paragraph and of the condition of the Property. 3.4 Buyer’s Termination. 3.4.1 If Buyer elects to terminate this Agreement in accordance with Sections 3.2 or 3.3, then, on or before the Decision Date, Buyer shall give Seller and Escrow Holder written notice that Buyer elects to terminate this Agreement. Buyer’s failure to provide the notice by the specified deadline shall constitute Buyer’s waiver of Buyer’s right to terminate this Agreement for reasons for which that deadline applied and a waiver of any condition to Closing relating to such deadline, but not as to the reasons for which a later deadline applies. In the event Buyer elects to terminate this Agreement pursuant to this Section, the Escrow Holder shall return to the depositor thereof any funds and interest thereon accrued while in Escrow and materials previously placed in Escrow and remaining in Escrow; Seller shall return to Buyer any of the Deposit and interest earned thereon while in Escrow to the extent that the sums were released to Seller (minus the Nonrefundable Portion); Buyer shall deliver to Seller a duly executed and acknowledged quitclaim deed as described in Section 8.11 below; Buyer shall pay all title and escrow charges; and neither party shall thereafter have any further rights or obligations under this Agreement unless expressly provided otherwise in this Agreement. 3.4.2 The Nonrefundable Portion of the Deposit shall be released to Seller in consideration of Seller’s agreement to allow Buyer to have the right to terminate this Agreement and obtain a refund of the Deposit as stated in Section 3.4 above. The parties agree that without such right to terminate, Buyer would not have entered into this Agreement, and without such payment, Seller would not have agreed to take the Property off the market during the period prior to the Decision Date. 3.5 Seller’s Termination. If Seller elects to terminate this Agreement as a result of a material breach of Buyer’s obligations hereunder, then, within fifteen(15) business days after the date that Seller discovers the material breach, Seller shall give Buyer and Escrow Holder written notice that Seller elects to terminate this Agreement. Seller’s failure to provide the notice by the specified deadline shall constitute Seller’s waiver of Seller’s right to terminate this Agreement for reasons for which that deadline applied. In the 255 13 event Seller elects to terminate this Agreement pursuant to this Section, subject to Section 6.6, the Escrow Holder shall return to the depositor thereof any funds and interest thereon accrued while in Escrow and materials previously placed in Escrow and remaining in Escrow; subject to Section 6.6, Seller shall return to Buyer any of the Deposit and interest earned thereon while in Escrow to the extent that the sums were released to Seller (minus the Independent Consideration and the Non-Refundable Portion); Buyer shall deliver to Seller a duly executed and acknowledged quitclaim deed as described in Section 8.11 below; Buyer shall pay all title and escrow charges; and neither party shall thereafter have any further rights or obligations under this Agreement unless expressly provided otherwise in this Agreement. 4. CONDITIONS TO CLOSING 4.1 Buyer’s Conditions. In addition to the conditions provided elsewhere in this Agreement, the Closing and Buyer’s obligation to perform under this Agreement are conditioned upon the fulfillment of each and all of the following, any of which Buyer may waive in writing in whole or in part: 4.1.1 Roadways Vacation. Seller shall have taken all legally required steps to finally vacate all of DNA Way, a portion of Cabot Road between Allerton and DNA Way and all of PSB Boulevard in accordance with applicable law, including but not limited to the Public Streets, Highways, and Service Easements Vacation Law, California Streets and Highways Code § 8300 et seq. (the “Roadways Vacation”), and all statutes of limitations to legally challenge the Roadways Vacation shall have expired without any such challenge being filed (or if challenged, all such challenges having been finally resolved in favor of City by a court of competent jurisdiction). Seller shall not commence any formal action in furtherance of this Condition until after the Decision Date or Buyer’s written waiver of its right to terminate this Agreement pursuant to Section 3.4 hereof. 4.1.2 Due Performance. Due performance by Seller of all of its obligations under this Agreement and the truthfulness of each representation and warranty by Seller contained in Article 5 or any other part of this Agreement at the time the same is made and as of the Closing. 4.1.3 Delivery of Documents. Due performance by Seller of all of its obligations under this Agreement and the truthfulness of each representation and warranty by Seller contained in Article 5 or any other part of this Agreement at the time the same is made and as of the Closing. 4.1.4 Owner’s Policy. The unconditional and irrevocable commitment and ability of the Title Company to issue the Owner’s Policy to Buyer in form and substance satisfactory to Buyer, dated as of the date and time of the recording of the Deed 256 14 (as hereinafter defined). The Owner’s Policy shall be issued with such reinsurance agreements and direct access agreements and such endorsements as Buyer shall require. 4.1.5 Moratoriums. That no moratorium, statute, regulation, ordinance, or federal, state, county or local legislation, or order, judgment, ruling or decree of any governmental agency or of any court is enacted, adopted, issued, entered or pending which would materially and adversely prevent Buyer’s intended use of the Property. 4.1.6 Condemnation. That no condemnation or eminent domain action shall have been commenced to acquire the Property or any portion thereof. 4.1.7 Possession. That the Property shall be delivered to Buyer at Closing free and clear of any occupants or rights of possession. 4.1.8 Other Conditions. That all other conditions to Buyer’s obligation to proceed to Closing that are expressly set forth in this Agreement shall have been satisfied or waived in writing in the manner provided in this Agreement 4.2 Seller’s Conditions. In addition to the conditions provided elsewhere in this Agreement, the Closing and Seller’s obligation to perform under this Agreement are conditioned upon the fulfillment of each and all of the following, any of which Seller may waive in writing in whole or in part: 4.2.1 Due Performance. Due performance by Buyer of all of its obligations under this Agreement, including its payment of all sums due and timely reimbursement of Seller’s costs, and the truthfulness in all material respects of each representation and warranty by Buyer contained in Article 5 or any other part of this Agreement at the time the same is made and as of the Closing. 4.2.2 Delivery of Documents and Funds. Delivery by Buyer on or before Closing of all of the documents, funds, and other materials described in Section 6.1 below. 4.2.3 Other Conditions. That all other conditions to Seller’s obligation to proceed to Closing that are expressly set forth in this Agreement shall have been satisfied or waived in writing in the manner provided in this Agreement. 5. ADDITIONAL AGREEMENTS OF THE PARTIES 5.1 Representations and Warranties Buyer’s Representations and Warranties. Buyer represents, warrants and covenants to and agrees with Seller as follows: 257 15 (a) Buyer’s Investigation; “As Is” Purchase. Except as otherwise expressly provided in this Agreement: (i) There are no representations or warranties of any kind whatsoever, express or implied, made by Seller in connection with this Agreement, the purchase of the Property by Buyer, the physical condition of the Property, the financial performance of the Property, the status of zoning or other planning designations for the Property, or whether the Property is appropriate for Buyer’s intended use; (ii) On or before the Decision Date, Buyer will have (or will have chosen not to have) fully investigated the Property and all matters pertaining thereto; (iii) Buyer is not relying on any statement or representation of Seller, its agents or its representatives nor on any information supplied by Seller, its agents or its representatives, except as expressly provided in this Agreement; (iv) Buyer, in entering into this Agreement and in completing its purchase of the Property, is relying entirely on its own investigation of the Property based on its extensive experience in and knowledge of real property in and around the Campus; (v) On or before the Decision Date, Buyer will be aware (or will have chosen not to be aware) of all title matters; zoning and planning regulations; other governmental requirements; site and physical conditions; status of entitlements or the ability to obtain entitlements for Buyer’s intended use; potential costs and procedures for operating the Property; potential costs and procedures for developing the Property and constructing Buyer’s intended improvements thereon; the past and potential future financial performance of the Property; Hazardous Materials or environmental condition of the Property; soils conditions; status of permits or licenses for the Property; termites or other pests; condition of contracts relating to the Property; the suitability of the Property for Buyer’s intended use; other matters affecting the use and condition of the Property; and any other contingency or other matter whatsoever; and (vi) Buyer shall purchase the Property in its “as is” condition as of the date of Closing. Any and all representations and/or warranties that may be made by Seller in connection with this Agreement or the purchase of the Property shall terminate on the Closing Date and shall not survive Closing. 258 16 (b) Authority. Buyer has the power and authority to own the Property and to consummate the transactions contemplated by this Agreement. This Agreement and all instruments, documents and agreements to be executed by Buyer in connection with this Agreement are or when delivered shall be duly authorized, executed and delivered by Buyer and are valid, binding and enforceable obligations of Buyer. Each individual executing this Agreement on behalf of Buyer represents and warrants to Seller that he or she is duly authorized to do so. (c) Consents. Buyer is not required to obtain any consents or approvals to consummate the transactions contemplated in this Agreement, or shall have obtained such approvals prior to the effectiveness or necessity thereof. 5.2 Seller’s Representations and Warranties. (a) Authority. Seller has the power and authority to own the Property and to consummate the transactions contemplated by this Agreement. This Agreement and all instruments, documents and agreements to be executed by Seller in connection with this Agreement are or when delivered shall be duly authorized, executed and delivered by Seller and are valid, binding and enforceable obligations of Seller. Each individual executing this Agreement on behalf of Seller represents and warrants to Buyer that he or she is duly authorized to do so. (b) Consents. Except for the requisite approval by the City Council of this transaction,. Seller is not required to obtain any other consents or approvals to consummate the transactions contemplated in this Agreement, or shall have obtained such approvals prior to the effectiveness or necessity thereof. 5.3 Reaffirmation. The representations and warranties of Buyer and Seller in Sections 5.1 and 5.2 are true and correct as of the date of this Agreement and shall be true and correct as of the Closing. The Closing shall constitute Buyer’s and Seller’s reaffirmation of those representations and warranties as of the Closing. Seller shall be entitled to rely upon Buyer’s representations and warranties in Section 5.1, notwithstanding any inspection or investigation of the Property that was made or could have been made by Buyer. 5.4 Hazardous Material Release and Waiver 5.4.1 Release and Waiver. If this transaction closes and Buyer acquires title to the Property, Buyer, on behalf of itself and its successors, assigns and successors in interest, hereby releases Seller’s Parties from, and waives any right to pursue the Seller’s Parties for, any and all “Claims” (as defined below) (including, but not 259 17 limited to, Claims arising under any “Environmental Law” as defined below), arising out of, related in any way to, or resulting from or in connection with, in whole or in part, the actual or suspected presence, use, generation, storage, disposal, release or transport of “Hazardous Materials” (defined below) in, on, under, above, about, to, through or from the Property. 5.4.2 Waiver of California Civil Code Section 1542. In connection with the release and waiver specified in Section 5.4.1, and in connection with any other release in this Agreement, Buyer, on behalf of itself, its successors, assigns and successors-in- interest, waives the benefit of California Civil Code Section 1542, which provides as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” Effective upon the Close of Escrow, by initialing below, Buyer expressly waives the benefits of Section 1542 of the California Civil Code with respect to the foregoing releases: Buyer’s initials: __________ 5.4.3 Definitions. (a) “Claims” means any and all claims, losses, costs, damages, injuries, penalties, enforcement actions, fines, taxes, remedial actions, removal and disposal costs, investigation and remediation costs and expenses (including, without limit, reasonable attorneys’ fees, litigation, arbitration and administrative proceeding costs, expert and consultant fees and laboratory costs), sums paid in settlement of claims, demands, obligations, liabilities, indebtedness, breaches of contract, breaches of duty or of any relationship, acts, omissions, misfeasances, malfeasance, cause or causes of action, debts, sums of money, accounts, compensations, contracts, controversies, promises, losses and expenses, of every type, kind, nature, description or character, and irrespective of how, why, or by reason of what facts, whether now existing, existing prior to the date of this Agreement or arising after the date of this Agreement, or which could, might, or may be claimed to exist, of whatever kind or name, whether known or unknown, suspected or unsuspected, liquidated or unliquidated, each as though fully set forth at length in this Agreement. (b) “Hazardous Material” means (i) petroleum or any petroleum product or fraction thereof, (ii) asbestos, (iii) any substance, product, waste or other material of 260 18 any nature whatsoever which is or becomes regulated or listed by any local, state or federal governmental authority, entity or agency or pursuant to any “Environmental Law” (as defined below), including, without limitation, any substance defined as “hazardous substances,” “hazardous materials,” or “toxic materials” by any Environmental Law, and (iv) any substance, product, waste or other material otherwise defined in this paragraph as a Hazardous Material which may give rise to any liability under any Environmental Law or under any statutory or common law theory based on negligence, trespass, intentional tort, nuisance or strict liability or under any reported decisions of a state or federal court. (c) “Environmental Law” means any federal, state or local law, regulation, guideline, code, ordinance, rule, resolution, order or decree regulating the use, generation, handling, storage, treatment, transport, decontamination, clean-up, removal, encapsulation, enclosure, abatement or disposal of any Hazardous Material, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Sections 9601, et seq., the Toxic Substance Control Act, 15 U.S.C. Sections 2601 et seq., the Clean Water Act, 33 U.S.C. Sections 1251 et seq., the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. Sections 136 et seq., the California Hazardous Waste Control Act, Health and Safety Code Sections 25100, et seq., the California Hazardous Substance Account Act, Health and Safety Code Sections 25330, et seq., the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Sections 25249.5, et seq., California Health and Safety Code Sections 25280, et seq. (Underground Storage of Hazardous Substances), the California Hazardous Waste Management Act, Health and Safety Code Sections 25170.1, et seq., California Health and Safety Code Sections 25501 et seq. (Hazardous Materials Release Response Plans and Inventory), the California Porter-Cologne Water Quality Control Act, Water Code Sections 13000 et seq., California Health and Safety Code Section 26316, and any other federal, state or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Material, as now or at any time hereafter in effect, all as amended or hereafter amended. 5.4.4 No Limitation to Liability. The provisions of this Section 5.4 shall not be limited in any way by any other terms of this Agreement, including, but not limited to, Section 6.6 of this Agreement (Liquidated Damages). 5.5 Condemnation. If, prior to Closing, any portion of the Property is condemned or becomes the subject of any pending or threatened condemnation action, Seller shall 261 19 promptly notify Buyer thereof, and Buyer may elect in its sole and absolute discretion to terminate this Agreement. 5.6 Indemnity. To the fullest extent permitted by law, Buyer shall hold harmless, indemnify and defend the Seller’s Parties from and against (a) any and all Claims (other than matters caused by the negligent acts or negligent omissions of the Seller’s Parties) in any way related to the Property and occurring after the Closing, or in any way related to or arising from any act, conduct, omission, contract or commitment of Buyer and/or Buyer’s Agents, including Buyer’s obligations pursuant to Section 5.7 below; (b) any loss or damage to Seller resulting from any inaccuracy in or breach of any representation or warranty of Buyer or resulting from any breach or default by Buyer under this Agreement; and (c) all costs and expenses, including reasonable attorneys’ fees, related to any actions, suits or judgments incident to any of the foregoing. 5.7 Buyer Maintenance and Operations Obligations. 5.7.1 Maintenance of Infrastructure Improvements. From and following the Closing Date, Buyer shall, at its sole cost and expense, maintain, repair and replace the existing Infrastructure Improvements and the portions of the Property described in the Roadways Vacation in compliance with this Agreement and the Master Plan (collectively, the “Maintenance Obligations”), pursuant to the provisions of the Maintenance and License Agreement between Buyer and the City, which Maintenance and License Agreement shall provide for Buyer’s performance of maintenance activities with respect to the Roadways. 5.7.2 Inspections and Report. Buyer shall conduct maintenance inspection of the Infrastructure Improvements at least once a year and shall retain proof of such inspection and make such inspection report available to City within thirty (30) days upon request. 5.7.3 Maintenance Personnel. To accomplish the Maintenance Obligations, Buyer shall either staff or contract with and hire licensed and qualified personnel to perform the Maintenance Obligations, including but not limited to the provision of labor, equipment, materials, support facilities, and any and all other items necessary to comply with the requirements of this Section 5.7. 5.8 Sales Tax Point of Sale Designation. 5.8.1 Construction. Pursuant to the authority granted by the California Department of Tax and Fee Administration (CDTFA) allowing construction contractors with contracts valued at $5 million or more to obtain a sub-permit enabling contractors to designate the jurisdiction of the jobsite as the point of sale for sales tax allocation, Buyer shall require its contractors hired to complete future projects on the vacated portions of the Roadways to obtain such a sub-permit and allocate 262 20 sales tax directly to the City ensuring that the City will collect a larger share of local sales/use tax for projects developed on the Roadways than it would otherwise receive without this designation. 5.8.2 Other Sales Taxes. Buyer and Seller agree in good faith to discuss and explore additional opportunities to designate Seller as the applicable jurisdiction for future sales tax allocations related to Buyer’s operations within the City. 6. CLOSING 6.1 Deposits Into Escrow 6.1.1 Seller’s Deposits. At least one (1) business day prior to the Closing Date, Seller shall deposit into Escrow: (a) A grant deed conveying the Property to Buyer (the “Deed”), subject to the Permitted Exceptions, substantially in the form attached hereto as Exhibit D. (b) An affidavit or qualifying statement which satisfies the requirements of Section 1445 of the Internal Revenue Code of 1986, as amended, and the related regulations (the “Non-Foreign Affidavit”). (c) A Withholding Exemption Certificate, Form 593-C, or in the event that Seller is a non-California resident, a certificate issued by the California Franchise Tax Board, pursuant to the Revenue and Taxation Code Sections 18805 and 26131, stating either the amount of withholding required from Seller’s proceeds or that Seller is exempt from the withholding requirement (the “Withholding Certificate”). (d) An executed original counterpart of the Maintenance and License Agreement, substantially in the form of Exhibit E. (e) An executed original counterpart of the Public Utility Easements, substantially in the form of Exhibit F, identifying all necessary and required public utility easements in favor of the Seller, to be recorded immediately after Close. (f) An executed original of the Resolution of Vacation adopted in accordance with the procedures outlined in Streets and Highways code section 8320, et seq., to be recorded immediately before Close. 6.1.2 Buyer’s Deposits. At least one (1) business day prior to the Closing Date, Buyer shall deposit into Escrow: (a) An executed original counterpart of the Maintenance and License Agreement, substantially in the form of Exhibit E. 263 21 (b) An executed original counterpart of the Public Utility Easements, substantially in the form of Exhibit F, identifying all necessary and required public utility easements in favor of the Seller, to be recorded immediately after Close. (c) The balance of the funds necessary to pay the Purchase Price. 6.1.3 Other Deposits. Seller and Buyer shall each deposit such other instruments and funds as are reasonably required by Escrow Holder or otherwise required to close Escrow and consummate the sale of the Property in accordance with the terms of this Agreement. 6.2 Prorations. The following prorations shall be made as of 12:01 a.m. on the day the Closing occurs on the basis of a 365-day year. At least five (5) business days prior to the Closing Date, Escrow Holder shall deliver to Seller and Buyer a tentative proration schedule setting forth a preliminary determination all utility charges and other items of expense (if any) shall be prorated as of the Closing on the basis of schedules prepared by Seller for that purpose with post-closing adjustments made between Seller and Buyer by cash payment upon demand to the party entitled thereto. 6.3 Payment of Closing Costs. Closing Costs Borne by Buyer. Buyer will pay all Escrow fees (including the costs of preparing documents and instruments) and recording fees incident to and related to the transaction contemplated hereby. Buyer will also pay title insurance costs, title report costs, any , documentary transfer tax, any and all sales and use taxes required in connection with the transfer of the Property to Buyer, and any sums necessary to obtain and record any reconveyance required, and the Escrow Holder’s fee and any additional charges customarily charged to buyers in accordance with common escrow practices in northern California. 6.4 Closing Escrow. 6.4.1 Escrow Holder shall hold the Closing on the Closing Date if: (i) it has received in a timely manner all the funds and materials required to be delivered into Escrow by Buyer and Seller; and (ii) it has received assurances satisfactory to it that, effective as of the Closing, the Title Company will issue the Owner’s Policy to Buyer. 6.4.2 To Close the Escrow, Escrow Holder shall: (a) Cause the Deed to be recorded and then mailed to Buyer, and deliver the Owner’s Policy, Non-Foreign Affidavit and Withholding Certificate to Buyer; and 264 22 (b) Deliver to Seller the Purchase Price by wire transfer of federal funds, funds in the amount of the Purchase Price, less the amount of the Deposit to the extent released to Seller and plus or less any net debit or credit to Seller by reason of the prorations provided for in this Agreement. (c) Cause the Public Utility Easements to be recorded and then copies mailed to Seller. 6.4.3 Pursuant to Section 6045 of the Internal Revenue Code, Escrow Holder shall be designated the closing agent hereunder and shall be solely responsible for complying with the tax reform act of 1986 with regard to reporting all settlement information to the Internal Revenue Service. 6.5 Failure to Close; Cancellation. If the Escrow Holder is not in a position to Close the Escrow on the Closing Date, then, except as provided in Section 6.6, Escrow Holder shall return to the depositor thereof any funds or other materials previously placed in Escrow. No such return shall relieve either party of liability for any failure to comply with the terms of this Agreement. 6.6 LIQUIDATED DAMAGES THE PARTIES HAVE DETERMINED THAT IF BUYER BREACHES THIS AGREEMENT AND FAILS TO PURCHASE THE PROPERTY AS CONTEMPLATED HEREIN, THE DAMAGE TO SELLER WILL BE EXTREMELY DIFFICULT AND IMPRACTICABLE TO ASCERTAIN, SUCH DAMAGE INCLUDING COSTS OF NEGOTIATING AND DRAFTING THIS AGREEMENT, COSTS OF COOPERATING IN SATISFYING CONDITIONS TO CLOSING, COSTS OF SEEKING ANOTHER BUYER UPON BUYER’S DEFAULT, OPPORTUNITY COSTS IN KEEPING THE PROPERTY OUT OF THE MARKETPLACE, AND OTHER COSTS INCURRED IN CONNECTION HEREWITH. IN ADDITION, BUYER WISHES TO LIMIT ITS LIABILITY IN EVENT OF ITS BREACH OF THIS AGREEMENT AND FAILURE TO PURCHASE THE PROPERTY AS CONTEMPLATED IN THIS AGREEMENT, AND SELLER HAS AGREED TO SUCH A LIMITATION. THE PARTIES THUS AGREE THAT SHOULD THIS AGREEMENT FAIL TO CLOSE DUE TO BUYER’S BREACH OF THIS AGREEMENT OR ITS WRONGFUL REFUSAL OR FAILURE TO PURCHASE THE PROPERTY CONTEMPLATED IN THIS AGREEMENT, THE SOLE AND EXCLUSIVE REMEDY OF SELLER SHALL BE TO RETAIN THE DEPOSIT FROM BUYER; ALL OTHER CLAIMS FOR DAMAGES OR CAUSES OF ACTION ARE HEREBY EXPRESSLY WAIVED BY SELLER. SAID AMOUNT WILL BE THE FULL, AGREED AND LIQUIDATED DAMAGES FOR THE BREACH OF THIS AGREEMENT BY BUYER. THE PAYMENT OF SUCH AMOUNT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO 265 23 CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. THE SELLER HEREBY WAIVES THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 3389. IN NO EVENT SHALL EITHER PARTY BE ENTITLED TO LOST PROFITS OR CONSEQUENTIAL DAMAGES AS A RESULT OF THE OTHER PARTY’S BREACH OF THIS AGREEMENT. Initials of Buyer: _________________________ Initials of Seller: _________________________ 6.7 Possession. Possession of the Property shall be delivered to Buyer upon Closing. 6.8 Seller’s Default. If Seller defaults under its obligations under this Agreement or breaches its representations or warranties hereunder, the Deposit shall immediately be returned to Buyer, Seller shall pay all Escrow cancellation and title charges, and Buyer shall have all other rights and remedies available at law or equity, including without limitation, the remedy of specific performance. 7. FUTURE USE, APPRAISAL, SUPPLEMENTAL PAYMENT, AND REQUIRED APPROVALS 7.1 Future Use. In the future, Buyer may submit an application to the City for approval of development permits or modifications to the Master Plan, if required, to change the use of the Roadways (or portions thereof) and provide for reconfiguration and/or redevelopment of the Property for an alternative use. As part of any application for such development permits or modifications to the Master Plan that impact Vacation Areas #1, Vacation Area #3 or Vacation Area #4 (as such terms are defined below), Buyer shall under the circumstances set forth below submit an appraisal prepared pursuant to Section 7.2 of the fair market value (FMV) of the Property if developed as proposed in Buyer’s application. 7.1.1 The Parties understand and agree that the portions of the Roadways depicted in green, pink and blue on Exhibit A and described, respectively, on Exhibit A-1 (“Vacation Area #1), Exhibit A-2 (Vacation Area #3) and Exhibit A-3 (Vacation Area #4) shall remain as publicly-accessible Roadways subject to the Maintenance and License Agreement and shall not be eligible for change in use except as set forth herein. Any application to change the use or configuration (other than minor modifications to location or configuration of the Roadways that do not result in a change to the total acreage of the Roadways provided for public access) of Vacation Area #1, Vacation Area #3 or Vacation Area #4 shall be subject to City Council approval and shall necessitate (a) an amendment to this Agreement acceptable to the parties hereto and approved by the City Council, and (b) the payment of a supplemental amount pursuant to Section 7.3 266 24 acceptable to the parties hereto and approved by the City Council based upon the FMV of such Vacation Areas, as determined by an appraisal pursuant to Section 7.2. For the avoidance of doubt, the portions of the Maintenance and License Agreement applicable to Vacation Area #1, Vacation Area #3 and Vacation Area #4 of the Roadways may not be terminated without a written amendment to this Agreement executed by both Parties and approved by the City Council. Notwithstanding the foregoing, Vacation Area #1 shall remain publicly-accessible in perpetuity to ensure access to the Wind Harp and Buyer does not intend to seek any change in use for Vacation Area #1 pursuant to this section. Further, Buyer shall not seek a change in use for Vacation Area #3 or Vacation Area #4 pursuant to this Section 7 until January 1, 2031 or later. 7.1.2 The Parties agree that notwithstanding the foregoing, the portion of the Roadways depicted in orange on Exhibit A and described on Exhibit A-4 (Vacation Area #2) may be subject to a proposed change in use and/or termination of the applicable portions of the Maintenance and License Agreement, subject to applicable City approvals, without change to the Purchase Price because the Purchase Price set forth herein represents the FMV of said portions of the Roadways if redeveloped as an alternative use. In light of the foregoing, the Parties agree that if Buyer submits an application to update/modify the Master Plan to redevelop Vacation Area #2, Buyer shall not be required to prepare and submit an appraisal pursuant to Section 7.2 as part of such an application, and no change to the Purchase Price shall be made. 7.2 Appraisal. The appraisal contemplated in Section 7.1 shall be an independent third party appraisal prepared by a valuation expert selected by the Parties in accordance with this Section. The appraiser shall have the requisite experience and skills necessary to prepare the appraisal and shall be selected by mutual agreement of both Parties. If the Parties cannot agree on an appraiser, then each Party shall propose an appraiser and the two shall select a third appraiser to perform the valuation. The appraisal shall be prepared using appraisal instructions jointly agreed to by the Seller and Buyer. The appraisal shall be based on the FMV of Vacation Area #1, Vacation Area #3 or Vacation Area #4, as the case may be, for the primary use proposed by Buyer in its proposed modifications to the Master Plan (“Modified Use Appraisal”). Both Parties assume that the primary use will be Office/R&D. 7.3 Amount and Timing of Supplemental Payment. If Buyer’s proposed modifications to the Master Plan are approved by the City, then Buyer shall make a an additional payment of consideration hereunder (the “Supplemental Payment”) to the Seller in an amount that is equal to the FMV of Vacation Area #1, Vacation Area #3 or Vacation Area #4, as the case may be, as identified in the Modified Use Appraisal, Under no circumstances shall the per square foot cost included in the Supplemental Payment be less than the per square foot cost utilized in the Purchase Price. The Supplemental Payment shall be 267 25 paid upon termination of the Reserved License for the applicable Roadway as contemplated in Section 7.4. 7.4 Required City Approvals and Termination of Public Access. As part of any proposed modifications to the Master Plan that result in the need to terminate or amend the Maintenance and License Agreement as to portion(s) of the Roadways proposed for alternative use, following City approval thereof, compliance with all provisions of this Section 7, and the passage of any applicable appeal or challenge periods without any such appeal or challenge (or the favorable satisfaction of any such appeal or challenge), the Maintenance and License Agreement shall terminate or be amended as to those portion(s) of the Roadways and said portion(s) will no longer be publicly accessible space. Buyer shall install prominent signage at several locations along the Roadways a minimum of ninety (90) days in advance of any closure to the public. 8. GENERAL PROVISIONS 8.1 Entire Agreement. This Agreement contains the entire integrated agreement between the parties respecting the subject matter of this Agreement and supersedes all prior understandings and agreements, whether oral or in writing, between the parties respecting the subject matter of this Agreement. There are no representations, agreements, arrangements or understandings, oral or in writing, between or among the parties to this Agreement relating to the subject matter of this Agreement that are not fully expressed in this Agreement. The terms of this Agreement are intended by the parties as a final expression of their agreement with respect to those terms and they may not be contradicted by evidence of any prior agreement or of any contemporaneous agreement. The parties further intend that this Agreement constitute the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial proceeding involving this Agreement. 8.2 Choice of Law; Jurisdiction; Venue. This Agreement shall be governed by the laws of the State of California. The parties to this Agreement irrevocably agree to the jurisdiction of the Superior Court of the State of California situated in the County in which the Property is located, or of the United States District Court situated in such County, and the parties agree that venue in such County is the correct and appropriate venue, for any action or other proceeding involving the rights, obligations and remedies of the parties under this Agreement. 8.3 Severability. If any term, covenant, condition or provision of this Agreement, or its application to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions or provisions of this Agreement, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. 268 26 8.4 Waiver of Covenants, Conditions or Remedies. The waiver by one party of the performance of any covenant, condition or promise under this Agreement shall not invalidate this Agreement nor shall it be considered a waiver by it of any other covenant, condition or promise under this Agreement. The waiver by either or both parties of the time for performing any act under this Agreement shall not constitute a waiver of the time for performing any other act or an identical act required to be performed at a later time. The exercise of any remedy provided in this Agreement shall not be a waiver of any consistent remedy provided by law, and the provision in this Agreement for any remedy shall not exclude other consistent remedies unless they are expressly excluded. 8.5 Exhibits. All exhibits to which reference is made in this Agreement are deemed incorporated in this Agreement, whether or not actually attached. 8.6 Amendments. This Agreement may be amended at any time by the written agreement of Buyer and Seller. All amendments, changes, revisions and discharges of this Agreement, in whole or in part, and from time to time, shall be binding upon the parties despite any lack of legal consideration, so long as the same shall be in writing and executed by the parties hereto. 8.7 Relationship of Parties. The parties agree that their relationship is that of seller and buyer, and that nothing contained herein shall constitute either party the agent or legal representative of the other for any purpose whatsoever, nor shall this Agreement be deemed to create any form of business organization between the parties hereto, nor is either party granted any right or authority to assume or create any obligation or responsibility on behalf of the other party, nor shall either party be in any way liable for any debt of the other. 8.8 No Third Party Benefit. This Agreement is intended to benefit only the parties hereto and no other person or entity has or shall acquire any rights hereunder. 8.9 Time of the Essence. Time shall be of the essence as to all dates and times of performance, whether contained herein or contained in any escrow instructions to be executed pursuant to this Agreement, and all escrow instructions shall contain a provision to this effect. 8.10 Further Acts. Each party agrees to perform any further acts and to execute, acknowledge and deliver any documents which may be reasonably necessary to carry out the provisions of this Agreement. 8.11 Recordation; Actions to Clear Title. Buyer shall not record this Agreement, any memorandum of this Agreement, any assignment of this Agreement or any other document which would cause a cloud on the title to the Property. If Buyer fails to 269 27 complete its purchase of the Property for any reason, or if this Agreement shall terminate for any reason, then Buyer shall, at no cost to Seller, promptly execute, acknowledge and deliver to Seller, all within three (3) days after written request from Seller, a quitclaim deed, in recordable form, in favor of Seller and any other documents requested by Seller to remove the cloud on title to the Property that may exist as the result of the existence of this Agreement or any escrow relating to this Agreement. 8.12 Assignment. Buyer shall not assign its rights or delegate its obligations hereunder without the prior written consent of Seller in each instance, which consent Seller may withhold in Seller’s sole and absolute discretion. If Buyer assigns its rights or delegates its obligations hereunder in violation of this Section, Seller shall have the right to terminate this Agreement pursuant to Section 3.4 above. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties to this Agreement, including without limitation any successors to Buyer’s ownership of the Campus, the Property or any portion(s) thereof. 8.13 Attorneys’ Fees. In the event of any litigation involving the parties to this Agreement to enforce any provision of this Agreement, to enforce any remedy available upon default under this Agreement, or seeking a declaration of the rights of either party under this Agreement, the prevailing party shall be entitled to recover from the other such attorneys’ fees and costs as may be reasonably incurred, including the costs of reasonable investigation, preparation and professional or expert consultation incurred by reason of such litigation. All other attorneys’ fees and costs relating to this Agreement and the transactions contemplated hereby shall be borne by the party incurring the same. 8.14 Brokers. Buyer and Seller each represent and warrant to the other that (a) they have not dealt with any brokers or finders in connection with the purchase and sale of the Property, and (b) insofar as such party knows, no broker or other person is entitled to any commission or finder’s fee in connection with the purchase and sale of the Property. Seller and Buyer each agree to indemnify and hold harmless the other against any loss, liability, damage, cost, claim or expense incurred by reason of any brokerage fee, commission or finder’s fee which is payable or alleged to be payable to any broker or finder because of any agreement, act, omission or statement of the indemnifying party. 8.15 Manner of Giving Notice. All notices and demands which either party is required or desires to give to the other shall be given in writing by personal delivery, express courier service or by email followed by next day delivery of a hard copy to the address set forth in Sections 1.8 and 1.9 above for the respective party, provided that if any party gives notice of a change of name, address or email address notices to that party shall thereafter be given as demanded in that notice. All notices and demands so given shall be effective upon receipt by the party to whom notice or a demand is being given. 270 28 8.16 Survival. The provisions of Sections 3.3.2 (Inspection of Property), 5.1 and 5.2 (Representations and Warranties), 5.3 (Reaffirmation), 5.4 (Hazardous Material Indemnification and Waiver), 5.5 (Condemnation), 5.6 (Indemnity), 6.2 (Prorations), 6.3 (Payment of Closing Costs), 6.6 (Liquidated Damages), 6.7 (Possession) and Article 8 (General Provisions) shall survive the Closing and the consummation of the transactions contemplated by this Agreement or the termination of this Agreement for any reason without the conveyance of the Property to Buyer. The provisions of Section 5.7 (Buyer Maintenance Obligations) shall survive Closing and consummation of the transactions contemplated by this Agreement. [Signatures appear on the following page] 271 Grant Deed Page 29 IN WITNESS WHEREOF, the parties have cause their duly authorized representatives to execute this Agreement as of the Effective Date. BUYER: _______________________________, a ______________________________ SELLER: _______________________________, a ______________________________ By: ____________________________ Name: _________________________ Title: ___________________________ By: ____________________________ Name: _________________________ Title: ___________________________ 272 Grant Deed Page 30 EXHIBIT A “DEPICTION OF DNA WAY, CABOT ROAD, AND PSB BLVD” 273 Grant Deed Page 31 274 Grant Deed Page 32 EXHIBIT A-2 “DESCRIPTION AND DEPICTION OF VACATION AREA #3” 275 Grant Deed Page 33 EXHIBIT A-3 “DESCRIPTION AND DEPICTION OF VACATION AREA #4” 276 Grant Deed Page 34 EXHIBIT A-4 “DESCRIPTION AND DEPICTION OF VACATION AREA #2” 277 Grant Deed Page 35 EXHIBIT B “PROPERTY DESCRIPTION” 278 Grant Deed Page 36 EXHIBIT C “INFRASTRUCTURE IMPROVEMENTS” 1. Asphalt, Curbs, Sidewalks, & Gutter 2. Traffic Signals Located at DNA Way at Point San Bruno Blvd and 310 DNA Way 3. Rectangular Rapid Flashing Beacons (RRFB) 4. Streetlights 5. Signs and Traffic Markings 279 Grant Deed Page 37 EXHIBIT D “GRANT DEED” (SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE) GRANT DEED The City of South San Francisco DNA Way, Portion of Cabot Road, Point San Bruno Boulevard For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City of South San Francisco, a California municipal corporation (“Grantor”), hereby grants and conveys to Genentech, Inc. a Delaware limited liability company (the “Grantee ”), the real property located in the City of South San Francisco of DNA Way, portion of Cabot Road, and Point San Bruno Boulevard (the “Property”), more particularly depicted and described in Exhibit A attached hereto and incorporated in this grant deed (“Grant Deed ”) by this reference. 1. The Property is conveyed subject to that certain Purchase, Sale, and Maintenance Agreement and Joint Escrow Instructions entered into by and between the Grantor and Grantee dated as of ______ day of ______ 2025 (“PSA”). 2. This Grant Deed may be executed in counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument. SIGNATURES ON FOLLOWING PAGES Recording Requested by and when Recorded, return to: City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Attention: City Manager EXEMPT FROM RECORDING FEES PER CALIFORNIA GOVERNMENT CODE §§6103, 27383 280 Grant Deed Page 38 IN WITNESS WHEREOF, Grantor and Grantee have executed this Grant Deed as of this ______ day of _________2025. GRANTOR: CITY CITY OF SOUTH SAN FRANCISCO, a municipal corporation By: _______________________________ Sharon Ranals, City Manager ATTEST: By: _________________________________ Rosa Acosta, City Clerk APPROVED AS TO FORM: By: _________________________________ Sky Woodruff, City Attorney SIGNATURES MUST BE NOTARIZED 281 Grant Deed Page 39 GRANTEE GENENTECH, INC. a Delaware limited liability company By: __________________________ Name: Title: SIGNATURES MUST BE NOTARIZED 282 STATE OF CALIFORNIA ) ) COUNTY OF SAN MATEO ) On , 20__, before me, ______________________, (here insert name and title of the officer), personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature _______________________________ (Seal) 283 STATE OF CALIFORNIA ) ) COUNTY OF SAN MATEO ) On , 20__, before me, ______________________, (here insert name and title of the officer), personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature _______________________________ (Seal) 284 Exhibit A to Grant Deed LEGAL DESCRIPTION & DIAGRAM 285 EXHIBIT E “MAINTENANCE AND PUBLIC ACCESS LICENSE AGREEMENT” 286 EXHIBIT F “PUBLIC UTILITIES EASEMENT” 287 EXHIBIT G “EXCLUDED IMPROVEMENTS” The Property does not include any and all City-owned sewer and storm drain infrastructure located within the boundaries of the Roadways being conveyed. 288 MAINTENANCE AND PUBLIC ACCESS LICENSE AGREEMENT Genentech Campus Master Plan THIS MAINTENANCE AND PUBLIC ACCESS LICENSE AGREEMENT (“AGREEMENT”) is made and entered into as of _____________, 20__ (hereinafter, “EFFECTIVE DATE”), by and between the CITY OF SOUTH SAN FRANCISCO, a municipal corporation ("CITY”), and GENENTECH, INC., a Delaware corporation, and its successors in interest, assigns and transferees ( “GENENTECH,” with CITY and GENENTECH collectively referred to herein as the “PARTIES”), with reference to the following facts: RECITALS A. WHEREAS, GENENTECH has a legal and/or equitable interest in certain real property located in the CITY on the approximately 207-acre site commonly known as the “GENENTECH Campus” (the “Campus”). The Campus is more particularly described in Exhibit A of that certain Development Agreement by and between City of South San Francisco and Genentech, Inc., bearing the Effective Date of December 31, 2020, adopted by the City Council of the City of South San Francisco (the “CITY COUNCIL”) in Ordinance No. 1615-2020, and recorded on ________, 202__ in the Official Records of San Mateo County as Recorders Document No. ________ (“DEVELOPMENT AGREEMENT”). B. WHEREAS, on November 24, 2020 and December 1, 2020, the CITY COUNCIL unanimously approved GENENTECH’s Campus Master Plan Update project (the “PROJECT”), which approval included, but was not limited to, adoption of the DEVELOPMENT AGREEMENT, certification of that certain Environmental Impact Report for the GENENTECH Master Plan Update, State Clearinghouse No. 2017052064 (“Project EIR”), approval of that certain GENENTECH Master Plan Update (“MASTER PLAN”), and approval of certain amendments to the CITY’s Genentech Master Plan Zoning District so as to facilitate implementation of the MASTER PLAN. C. WHEREAS, the MASTER PLAN articulates a vision for new growth and development within the Campus that fosters intensification of development and infill development by serving as a general guide for the future placement and design of individual buildings and other Campus improvements over time. Because the MASTER PLAN is an overall development framework that provides the basis for future approvals, it provides for flexibility during implementation. Rather than establishing the location, size or design of individual buildings and improvements, it permits such details to be developed over the course of the MASTER PLAN’s planning horizon. D. WHEREAS, to promote the MASTER PLAN’s stated objective of establishing an integrated and walkable Campus that implements a more pedestrian-oriented, shared street concept that prioritizes people over motorized vehicles, the MASTER PLAN contemplates the closure of certain internal, public streets and roadways, such contemplated roadways are commonly known as “DNA Way,” “Point San Bruno Boulevard” and “Cabot Road” (collectively, the “ROADWAYS”). All such ROADWAYS pass through the central portion of 289 #505851811_v2 the MASTER PLAN’s “Upper Campus” planning area, and reconfiguration of such ROADWAYS would thereby improve pedestrian connections between indoor spaces and outdoor spaces so as to activate the Campus core while also permitting continued transit and emergency access through the use of special pavers or other appropriate design treatments in support of the vision of the MASTER PLAN. E. WHEREAS, to facilitate the implementation of the MASTER PLAN, and the design and future improvement of pedestrian-oriented circulation improvements in accordance with the MASTER PLAN and applicable administrative or discretionary approval processes set forth in the City of South San Francisco Municipal Code, the CITY and GENENTECH entered into a Real Property Purchase, Sale and Maintenance Agreement and Escrow Instructions, dated as of _____________, 2025 (the “STREETS PURCHASE AGREEMENT”), pursuant to which the CITY agreed to sell and GENENTECH agreed to purchase certain real property interests in the ROADWAYS following the CITY’s completion of statutory vacation proceedings to terminate the public streets within the ROADWAYS provided that certain limited rights of public access and use along said formerly public rights-of-way are maintained pursuant to the license granted by this AGREEMENT (“LICENSE”), and further provided that GENENTECH agrees to take on ongoing responsibilities for the improvement, landscaping and maintenance of the internal portions of the Campus that were formerly public rights-of-way consistent with the MASTER PLAN and subject to the terms and conditions hereof. F. WHEREAS, in connection with the STREETS PURCHASE AGREEMENT and in furtherance of the development of the PROJECT, CITY has formally vacated the public property interests and any and all ownership rights of the public in and to the ROADWAYS in accordance with the applicable statutory procedures; and G. WHEREAS, as a requirement of the STREETS PURCHASE AGREEMENT and in order to maintain public access to the ROADWAYS after the CITY’s vacation, the CITY and GENENTECH agreed to enter into this AGREEMENT to outline the terms and conditions for the LICENSE for continued public access to the ROADWAYS and conditions under which any of said ROADWAYS may be closed to public access in the future; and H. WHEREAS, except as otherwise stated herein, any future termination of the LICENSE or any portion thereof granted herein and the associated termination of public access rights as to any portion of the ROADWAYS requires a fair market value (“FMV”) appraisal of the applicable portion(s) of the ROADWAYS and a supplemental payment to CITY for the FMV of said ROADWAYS or portion(s) thereof; and I. WHEREAS, pursuant to the STREETS PURCHASE AGREEMENT, CITY shall continue to maintain public utilities and infrastructure located in the ROADWAYS after vacation and GENENTECH shall grant CITY this LICENSE to access the public utilities and infrastructure for purposes of performing said maintenance and GENENTECH shall reimburse CITY for the cost of said maintenance; and J. WHEREAS, pursuant to the STREETS PURCHASE AGREEMENT, GENENTECH agreed, at its sole cost and expense, to maintain, repair and replace the 290 #505851811_v2 ROADWAYS and associated existing infrastructure improvements as needed after conveyance and vacation of the ROADWAYS; and K. WHEREAS, CITY has determined that the public interests in the limited use and access rights in favor of the public as contemplated herein and in the MASTER PLAN and the PROJECT approvals, are adequately furthered and protected by the LICENSE provided herein. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and promises herein contained, the PARTIES hereby agree as follows: AGREEMENT 1. Grant of License. GENENTECH hereby grants to CITY, for use and enjoyment by CITY and members of the public subject to the terms and conditions set forth herein, this LICENSE providing a permanent and perpetual right of access and non-exclusive use over and across the portions of the Campus (the “LICENSE AREA”) improved and designated as the ROADWAYS, as depicted in green, pink, blue, and orange on Exhibit A and described, respectively, on Exhibit A-1 (ROADWAY AREA 1), Exhibit A-2 (ROADWAY AREA 3), Exhibit A-3 (ROADWAY AREA 4) and Exhibit A-4 (ROADWAY AREA 2) hereto, for (i) vehicular and pedestrian ingress to, and egress from, the portions of the Campus as described herein and (ii) the construction, maintenance, operation, testing, inspection, repair, removal, replacement, reconstruction or abandonment of any City-owned public infrastructure and utilities (including CATV facilities) (the “CITY FACILITIES”) located or to be located within the ROADWAYS, and such appurtenances thereto as may be necessary or convenient for the operation of such CITY FACILITIES , subject in all respects to the terms, conditions and provisions of this AGREEMENT; reserving, however, unto GENENTECH, its successors and assigns, all other rights in and to the LICENSE AREA. 2. Terms and Conditions of LICENSE. The LICENSE set forth herein is granted by GENENTECH to CITY upon the following express covenants and conditions: 2.1 Continuation of ROADWAYS in Present Form. GENENTECH shall keep and maintain the ROADWAYS in their present form and in the locations depicted in the MASTER PLAN, subject to GENENTECH’s obligations to repair, replace and maintain the ROADWAYS pursuant to the Maintenance Obligations outlined in Section 3 below and the STREETS PURCHASE AGREEMENT. GENENTECH shall not alter, obstruct, or modify the ROADWAYS in any way, nor take any action to impede or interfere with public use and enjoyment of the ROADWAYS pursuant to this LICENSE. 2.2 Minor Relocation and Adjustment. Notwithstanding the foregoing, GENENTECH shall at all times following the Effective Date have the right to relocate, adjust or reposition portions of the ROADWAYS in minor, non-material ways, subject to a ministerial approval to be considered and granted on behalf of the CITY by the CITY’s Director of Community and Economic Development or Director of Public Works or their respective designees, which approval shall not be subject to notice and public hearing and shall be processed by the CITY in similar fashion to an ADMINISTRATIVE PROJECT APPROVAL pursuant to the DEVELOPMENT 291 #505851811_v2 AGREEMENT. The denial by the CITY’s Director of Community and Economic Development or Director of Public Works or designees of any such minor relocation or adjustment may be appealed by GENENTECH through a discretionary process to the CITY COUNCIL, Planning Commission or other applicable approval body. 2.3 Indemnity. To the fullest extent permitted by law, GENENTECH hereby agrees to, and does hereby: (a) indemnify, defend, and hold CITY, its officers, employees and agents, harmless from and against any claims, demands, suits, liability or responsibility whatsoever (hereinafter “CLAIMS”) for any damage or injury of any kind whatsoever, regardless of fault (subject to the next sentence), to any person or property by reason of use of the LICENSE and GENENTECH’s maintenance of the ROADWAYS; and (b) release CITY from any CLAIMS for damage or liability which might occur to the real and personal property underlying the CAMPUS (the “CAMPUS FACILITIES”), by reason of any lawful use of the LICENSE AREA by CITY or the PUBLIC. Notwithstanding any provision herein to the contrary, the indemnity, defend, hold harmless, and release set forth in the preceding sentence shall not apply to the extent any CLAIMS are caused by the gross negligence or willful misconduct of any employee, personnel, contractor; or subcontractor of CITY or to the extent any CLAIMS are caused by CITY’s negligence in the maintenance of CITY FACILITIES. 2.4 Future Use of ROADWAYS and Termination of Public Access LICENSE. In the future, GENENTECH may submit an application to the CITY for approval of development permits or modifications to the MASTER PLAN, if required, to change the use of the ROADWAY AREA #2, ROADWAY AREA #3, or ROADWAY AREA #4 (or portions thereof) and provide for reconfiguration and/or redevelopment of one or more of the applicable ROADWAYS for an alternative use. ROADWAY AREA #1 shall remain publicly-accessible pursuant to this LICENSE in perpetuity to ensure access to the Wind Harp and GENENTECH does not intend to seek a change in use for ROADWAY AREA #1. As part of any application for such development permits or required modifications to the MASTER PLAN that impact ROADWAY AREA #3 or ROADWAY AREA #4 (as such terms are defined below), GENENTECH shall under the circumstances set forth below submit an appraisal prepared pursuant to Section 2.4(c) of the fair market value (FMV) of the applicable property if developed as proposed in GENENTECH’s application. GENENTECH shall not seek a termination of the LICENSE for public access to ROADWAY AREA #3 or ROADWAY AREA #4 pursuant to this Section 2 until January 1, 2031 or later. a. ROADWAYS Requiring Appraisal and Supplemental Payment. The Parties understand and agree that the portions of the ROADWAYS depicted in pink and blue on Exhibit A and described, respectively, on Exhibit A-2 (ROADWAY AREA #3) and Exhibit A-3 (ROADWAY Area #4) shall remain as publicly-accessible ROADWAYS subject to this AGREEMENT and shall not be eligible for change in use except as set forth herein. Any application to change the use or configuration (other than minor modifications to location or configuration of the ROADWAYS that do not result in a change to the total acreage of the ROADWAYS provided for public access) of ROADWAY AREA #3 or ROADWAY AREA #4 shall be subject to City Council approval and shall necessitate (a) an amendment to this Agreement acceptable to the parties hereto and approved by the City Council, and (b) the payment of a supplemental amount pursuant to Section 2.4(d) acceptable to the parties hereto and approved by the City Council based upon the FMV of such ROADWAY Areas, as determined by an appraisal 292 #505851811_v2 pursuant to Section 2.4(c). For the avoidance of doubt, the portions of the LICENSE applicable to ROADWAY AREA #3 and ROADWAY AREA #4 of the ROADWAYS may not be terminated without a written amendment to this Agreement executed by both Parties and approved by the City Council. b. ROADWAYS Not Requiring Appraisal and Supplemental Payment. The Parties agree that notwithstanding the foregoing, the portion of the ROADWAYS depicted in orange on Exhibit A and described on Exhibit A-4 (ROADWAY AREA #2) may be subject to a proposed change in use and/or termination of the applicable portions of the LICENSE, subject to applicable City approvals, without change to the Purchase Price (as specified in the STREETS PURCHASE AGREEMENT) because the Purchase Price set forth in the STREETS PURCHASE AGREEMENT represents the FMV of said portions of the ROADWAYS if redeveloped as an alternative use. In light of the foregoing, the Parties agree that if GENENTECH submits a development application or any required application to update/modify the MASTER PLAN to redevelop ROADWAY AREA #2, GENENTECH shall not be required to prepare and submit an appraisal pursuant to Section 2.4(c) as part of such an application, and no change to the Purchase Price shall be made. However, an amendment to this AGREEMENT shall be required to terminate the LICENSE as to ROADWAY AREA #2 as part of any City approvals for the underlying project. c. Appraisal. The appraisal contemplated in Section 2.4(a) shall be an independent third-party appraisal prepared by a valuation expert selected by the Parties in accordance with this subsection (c). The appraiser shall have the requisite experience and skills necessary to prepare the appraisal and shall be selected by mutual agreement of both Parties. If the Parties cannot agree on an appraiser, then each Party shall propose an appraiser and the two shall select a third appraiser to perform the valuation. The appraisal shall be prepared using appraisal instructions jointly agreed to by CITY and GEN ENTECH. The appraisal shall be based on the FMV of ROADWAY AREA #3 or ROADWAY AREA #4, as the case may be, for the primary use proposed by GENENTECH in its proposed modifications to the MASTER PLAN (“MODIFIED USE APPRAISAL”). Both Parties assume that the primary use will be Office/R&D. d. Amount and Timing of Supplemental Payment. If GENENTECH’s proposed modifications to the MASTER PLAN are approved by the CITY, then GENENTECH shall make an additional payment of consideration hereunder (the “SUPPLEMENTAL PAYMENT”) to CITY in an amount that is equal to the FMV of ROADWAY AREA #3 or ROADWAY AREA #4, as the case may be, as identified in the MODIFIED USE APPRAISAL. Under no circumstances shall the per square foot cost included in the SUPPLEMENTAL PAYMENT be less than the per square foot cost utilized in the Purchase Price. The SUPPLEMENTAL PAYMENT shall be paid upon execution of the Amendment to this AGREEMENT providing for termination of the LICENSE for the applicable portion of the ROADWAYS. e. Required City Approvals and Termination of Public Access. As part of any proposed modifications to the MASTER PLAN that result in the need to terminate the LICENSE as to portion(s) of the ROADWAYS proposed for alternative use, following CITY approval thereof, compliance with all provisions of this Section 2.4, and the passage of any applicable appeal or challenge periods without any such appeal or challenge (or the favorable satisfaction of any such appeal or challenge), the LICENSE shall terminate as to those portion(s) of the ROADWAYS 293 #505851811_v2 and said portion(s) will no longer be publicly accessible space. GENENTECH shall install prominent signage at several locations along the ROADWAYS a minimum of ninety (90) days in advance of any closure to the public. 2.5 Termination of License for Default. PARTIES acknowledge and agree that the LICENSE is a license coupled with an interest. Except as otherwise provided in Section 2.4 above, the LICENSE and all privileges granted thereby may only be terminated upon the mutual written agreement of the PARTIES or upon the occurrence of a DEFAULT (as hereinafter defined) by CITY. As used herein, CITY shall be in default under this AGREEMENT (“DEFAULT”) if CITY breaches any material provision of this AGREEMENT and such breach remains uncured for a period of thirty (30) days following receipt by CITY of written notice thereof from GENENTECH; provided, however, CITY shall not be deemed in DEFAULT if CITY commences to cure such breach within such thirty (30) day period and thereafter diligently pursues such cure to completion. 2.6 No Adverse Rights. CITY agrees that, subject to the provisions of this AGREEMENT, the use of the portion of the LICENSE AREA for the LICENSE will in no way create any public or municipal right whatsoever which is adverse to any rights of GENENTECH, and that the rights of GENENTECH are the rights herein given by this AGREEMENT and no other rights in the PUBLIC PROPERTY whatsoever accrue hereunder. 2.7 Binding on Successors. The rights and obligations of this AGREEMENT and the LICENSE shall inure to the benefit of, and be binding upon, GENENTECH’s and CITY’s successors and assigns; the provisions of this LICENSE shall run with the land. 2.8 Relationship to Development Agreement. This AGREEMENT is intended to implement and further the objectives of the MASTER PLAN, STREET PURCHASE AGREEMENT, and the DEVELOPMENT AGREEMENT. 3. GENENTECH Maintenance Obligations. 3.1 Maintenance Obligations. GENENTECH shall, at its sole cost and expense, maintain, repair and replace the ROADWAYS and associated infrastructure at the time and manner that is consistent with the same standards that CITY follows for publicly-accessible roads, facilities, and infrastructure as further articulated in Section 3.2 below. The foregoing Maintenance Obligations do not apply to any infrastructure or facilities located within the ROADWAYS that were expressly reserved to CITY as “Excluded Improvements” under the STREETS PURCHASE AGREEMENT and which Genentech shall reimburse CITY for performance of said maintenance. 3.2 Maintenance Standards. At all times while CITY or members of the public enjoy use and access rights in and to the ROADWAYS pursuant to this License, the portions of the LICENSE AREA improved for such use shall be constructed and maintained with a design consistent with CITY standards, pursuant to designs, plans and specifications approved by CITY, and shall be subject to inspection by CITY in the same fashion as are CITY-owned streets and roadways. If GENENTECH fails to maintain the ROADWAYS as provided for in this Section 3, then CITY, after fourteen (14) days prior written notice, may perform such necessary maintenance and charge GENENTECH for the cost thereof. 294 #505851811_v2 3.3 Inspections and Report. GENENTECH shall conduct maintenance inspections of the ROADWAYS and associated infrastructure at least once a year and shall retain proof of such inspection and make such inspection report available to CITY within thirty (30) days upon request. 3.4 Maintenance Personnel. To accomplish the Maintenance Obligations, GENENTECH shall either staff or contract with and hire licensed and qualified personnel to perform the Maintenance Obligations, including but not limited to the provision of labor, equipment, materials, support facilities, and any and all other items necessary to comply with the requirements of this Section 3. Notwithstanding the foregoing, CITY agrees in exchange for the payment contemplated herein to fulfill GENENTECH’S Maintenance Obligations for an initial period of five (5) years from the Effective Date of this Agreement, in accordance with the schedule and fees set forth in Exhibit B, the DNA Way Maintenance Exhibit, attached hereto. GENENTECH agrees to deposit the full estimate for the five (5) year period within (__) days of the execution of this Agreement. Any additional work beyond that contemplated in Exhibit B and requested by Genentech shall be performed by the CITY on a time and materials basis, as mutually agreed to in advance between the parties. 4. General Provisions. 4.1 Entire Agreement. Except as otherwise set forth herein, this AGREEMENT constitutes the entire agreement between the PARTIES with respect to the subject matter hereof. This AGREEMENT may only be amended or modified by a writing executed by both PARTIES. 4.2 Captions; Interpretation. The captions in this AGREEMENT are for reference only and shall in no way define or interpret any provision hereof. This AGREEMENT shall be interpreted and applied fairly as to both PARTIES and without regard as to which Party may have drafted any particular provision. 4.3 Attorneys Fees. The prevailing Party in any action or proceeding to enforce or interpret this AGREEMENT shall be entitled to recover its costs and reasonable attorneys’ fees from the other Party. 4.4 Severability. If any provision of this AGREEMENT as applied to either party or to any circumstance shall be adjudged by a court to be void or unenforceable, the same shall in no way affect any other provision of this AGREEMENT, the application of any such provision in any other circumstances or the validity or enforceability of this AGREEMENT as a whole. 4.5 Counterparts. This AGREEMENT may be executed by the PARTIES in counterparts, which counterparts shall be construed together and have the same effect as if all of the PARTIES had executed one and the same instrument. 4.6 Governing Law/Venue. This AGREEMENT shall in all respects be interpreted, enforced, and governed by and under the laws of the State of California with venue in the court of competent jurisdiction in San Mateo County. 4.7 No Waiver. No waiver with respect to any provision of this AGREEMENT shall 295 #505851811_v2 be effective unless in writing and signed by the Party against whom it is asserted. No waiver of any provision of this AGREEMENT by a party shall be construed as a waiver of any subsequent breach or failure of the same term or condition, or as a waiver of any other provision of this AGREEMENT. 4.8 Signature by CITY. This AGREEMENT is signed on behalf of CITY by the City Manager pursuant to, and limited by, the authority granted bythe City Council. The original AGREEMENT shall, upon recordation, be filed in the Office of the City Clerk and a copy thereof shall be provided to GENENTECH. 4.9 Effective Date. This AGREEMENT shall not be effective unless and until executed and delivered by both PARTIES. Subject to the preceding sentence, the effective date of this AGREEMENT shall be the EFFECTIVE DATE first set forth above. (Remainder of page intentionally left blank; signatures on next page) 296 #505851811_v2 IN WITNESS WHEREOF, the PARTIES have executed this AGREEMENT on the dates set forth below and effective as of the EFFECTIVE DATE. CITY OF SOUTH SAN FRANCISCO: Sharon Ranals, City Manager Date: ATTEST: By: City Clerk APPROVED AS TO FORM: CITY ATTORNEY By: Sky Woodruff, City Attorney GENENTECH, INC., a Delaware corporation By: Title: Printed Name: Date: 297 #505851811_v2 EXHIBIT A “LICENSE AREA” 298 #505851811_v2 EXHIBIT A-1 “ROADWAY AREA #1” 299 #505851811_v2 EXHIBIT A-2 “ROADWAY AREA #3” 300 #505851811_v2 EXHIBIT A-3 “ROADWAY AREA #4” 301 #505851811_v2 EXHIBIT A-4 “ROADWAY AREA #2” 302 #505851811_v2 EXHIBIT B “Maintenance Exhibit” 303 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-400 Agenda Date:6/25/2025 Version:1 Item #:8d. Ordinance amending the South San Francisco Zoning Map to include additional properties within the Genentech Master Plan District. WHEREAS,in 2020,the City of South San Francisco (“City”)adopted (1)Resolution No.169-2020 certifying the Environmental Impact Report,including adoption of the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program,for the Genentech 2020 Master Plan Update (State Clearinghouse No.2017052064,(2)Resolution No.170-2020 adopting the Genentech 2020 Master Plan Update,and (3)Ordinance No.1614-2020 amending Chapter 20.260 of the South San Francisco Municipal Code related to the Genentech Master Plan Zoning District; and WHEREAS,the Genentech 2020 Master Plan guides the development of the Genentech campus over a period of fifteen (15)years to create a vibrant,transit supported,state of the art research,office,and manufacturing campus for the life sciences; and WHEREAS,Genentech,Inc.(“Owner”or “Applicant”)has submitted an application requesting acquisition of certain public rights-of-way (DNA Way,Point San Bruno Boulevard,and Cabot Road)within the Genentech Campus Master Plan boundaries,and to add the vacated streets and private properties at 333 Point San Bruno Boulevard (APNs 015-250-410 and 015-250-140),525 DNA Way (APN 015-250-210),and 383-393 East Grand Avenue (APN 015-250-390) to the Genentech Campus Master Plan (“Project”); and WHEREAS,the Applicant has proposed amendments to the Genentech 2020 Master Plan,adopted by the City Council by separate Resolution,to incorporate the new private parcels and to reflect the ability to close the public roadways to public through traffic once certain conditions are met; and WHEREAS,the General Plan contains several goals,policies,and actions which support the sale of DNA Way,Point San Bruno Boulevard,and a segment of Cabot Road,in the interest of ensuring Genentech remains a premier biotechnology campus,prioritizing safety in all aspects of transportation planning,including prioritization of pedestrians and improving circulation to accommodate the travel demand of future workplaces; and WHEREAS,the Applicant has proposed certain amendments to the General Plan,adopted by the City Council by separate Resolution,for implementation of the Project and to ensure internal consistency between the Genentech Master Plan and the General Plan,which include certain amendments to the General Plan Mobility and Access Element Figure 14 (Roadway Network Diagram)and Figure 16 (Truck Network and Restrictions Diagram); and WHEREAS,the Applicant seeks adoption of an ordinance amending the Zoning Map to rezone the project site parcels from Business Technology Park -Medium (BTP-M)to Genentech Master Plan District (GMP),and to zone the vacated streets within the GMP; and WHEREAS,the proposed Zoning Map amendment would add three new private properties and the vacated City of South San Francisco Printed on 6/18/2025Page 1 of 4 powered by Legistar™304 File #:25-400 Agenda Date:6/25/2025 Version:1 Item #:8d. streets to the Genentech Master Plan District zoning; and WHEREAS,approval of the Applicant’s proposal is considered a “project”for purposes of the California Environmental Quality Act, Pub. Resources Code § 21000, et seq. (“CEQA”); and WHEREAS,in 2020,the City certified the Environmental Impact Report for the Genentech 2020 Master Plan Update (“Genentech 2020 Master Plan Update EIR”) (State Clearinghouse No. 2017052064); and WHEREAS,in 2022 the City certified the Environmental Impact Report for the 2040 General Plan Update, Zoning Code Amendments,and Climate Action Plan (“SSF 2040 General Plan EIR”)(State Clearinghouse No. 2021020064); and WHEREAS,the Genentech 2020 Master Plan Update EIR and the SSF 2040 General Plan EIR (“Prior EIRs”) were certified in accordance with the provisions of the California Environmental Quality Act (Public Resources Code,§§21000,et seq.,“CEQA”)and CEQA Guidelines,which analyzed the potential environmental impacts of the Project; and WHEREAS,pursuant to CEQA Guidelines Section 15164,an Addendum to the Prior EIRs was prepared for the Project (“2025 Addendum”)which evaluates whether preparation of a Subsequent EIR or Negative Declaration is required; and WHEREAS,the 2025 Addendum concludes that in accordance with Public Resources Code §21166 and CEQA Guidelines §15162,the implementation of the Project will not cause any new significant impacts,that it will not trigger any new or more severe impacts than were studied in the previously certified Prior EIRs,that no substantial changes in the project or circumstances justifying major revisions to the Prior EIRs have occurred, and that no new information of substantial importance has come to light since the Prior EIRs were certified that shows new or more severe significant impacts nor shows new,different,or more feasible mitigation measures; and WHEREAS,the City Council previously adopted Mitigation Monitoring and Reporting Programs for the Prior EIRs and a Statement of Overriding Considerations for the Prior EIR’s significant and unavoidable impacts, both of which remain in full force and effect for the Project; and, WHEREAS,the San Mateo County Airport Land Use Commission reviewed the proposed legislative enactments associated with the Genentech Master Plan Amendments on June 12,2025,and found them consistent with the Airport Land Use Compatibility Plan; and WHEREAS,on May 15,2025,the Planning Commission for the City of South San Francisco held a properly noticed public hearing at which time interested parties had the opportunity to be heard,to review the Project and the 2025 Addendum,as well as supporting documents,at the conclusion of which the Planning Commission recommended that the City Council find that the 2025 Addendum is the appropriate environmental document for approval of the Project and no further environmental review is required,and to adopt the Project and its associated General Plan Amendments,Genentech Master Plan Amendments,and Zoning Map Amendments; and WHEREAS,on June 25,2025,the City Council of the City of South San Francisco held a duly noticed public hearing at which time interested parties had the opportunity to be heard,to review the Project and the 2025 Addendum, and to receive public comments; and City of South San Francisco Printed on 6/18/2025Page 2 of 4 powered by Legistar™305 File #:25-400 Agenda Date:6/25/2025 Version:1 Item #:8d. NOW,THEREFORE,BE IT FOUND,DETERMINED,AND RESOLVED that based on the entirety of the record before it,which includes without limitation,the California Environmental Quality Act,Public Resources Code §21000,et seq.(“CEQA”)and the CEQA Guidelines,14 California Code of Regulations §15000,et seq.; the South San Francisco 2040 General Plan;the South San Francisco Municipal Code;the Genentech 2020 Master Plan Update EIR and Statement of Overriding Considerations;the SSF 2040 General Plan EIR and Statement of Overriding Considerations;the 2025 Genentech Addendum to the Genentech 2020 Master Plan Update EIR and SSF 2040 General Plan EIR;the draft General Plan Amendments;the draft Genentech Master Plan Amendments;the draft Zoning Map amendments;all reports,minutes,and public testimony submitted as part of the Planning Commission’s duly noticed May 15,2025 meeting;all reports,minutes,and public testimony submitted as part of the City Council’s duly noticed June 25,2025 meeting;and any other evidence (within the meaning of Public Resources Code §21080(e)and §21082.2),the City Council of the City of South San Francisco hereby finds as follows: SECTION 1. FINDINGS A.General Findings 1.The foregoing recitals are true and correct and made a part of this Resolution. 2.The Exhibits attached to this Ordinance,including the Zoning Map Amendment (Exhibit A),are each incorporated by reference and made a part of this Resolution, as if set forth fully herein. 3.By separate resolution on June 25,2025,pursuant to a duly noticed public hearing and based on its independent judgement and analysis,the City Council made and adopted CEQA findings and determined that the 2025 Addendum,prepared pursuant to CEQA Guidelines section 15164,is the appropriate environmental document for approval of the Project. 4.The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco,315 Maple Avenue,South San Francisco,CA 94080, and in the custody of the Chief Planner. B.Zoning Map Amendment Findings 1.The proposed Zoning Map amendments are consistent with the SSF 2040 General Plan,as amended per the General Plan Amendment per separate City Council Resolution,because the Zoning Map amendments will add new properties to the Genentech Master Plan District in accordance with allowed provisions.Further,the Zoning Map amendments do not conflict with any specific plans and will implement the City’s overall vision for redevelopment within the Genentech Campus Master Plan.None of the new or revised definitions,tables,figures,and land uses will conflict with or impede achievement of any of the goals,policies,or land use designations established in the General Plan as proposed for amendment. 2.The Zoning Ordinance Update meets all of the requirements as contained in Planning and Zoning Law (Government Code sections 65800-65912). 3.The proposed Zoning Map Amendments,including the proposed changes to the Genentech Master Plan District,are not detrimental to the use of land in any adjacent zone because the Zoning Map Amendments would provide for sufficient development,land use,and performance standards related to City of South San Francisco Printed on 6/18/2025Page 3 of 4 powered by Legistar™306 File #:25-400 Agenda Date:6/25/2025 Version:1 Item #:8d. Amendments would provide for sufficient development,land use,and performance standards related to new development or alteration. SECTION 2. AMENDMENTS Based on the foregoing findings and the entirety of the record before it,the South San Francisco City Council hereby takes the following actions: A.Adopt the South San Francisco Zoning Map Update (RZ25-0001),as contained in Exhibit B, attached hereto. SECTION 3.SEVERABILITY If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional,the remainder of this Ordinance,including the application of such part or provision to other persons or circumstances,shall not be affected thereby and shall continue in full force and effect.To this end, provisions 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 6/18/2025Page 4 of 4 powered by Legistar™307 Exhibit A: Draft Zoning Map Amendments 308 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-401 Agenda Date:6/25/2025 Version:1 Item #:8e. Resolution making findings and approving amendments to the Genentech 2020 Master Plan and associated General Plan Amendments. WHEREAS, in 2020 the City of South San Francisco (“City”) adopted (1) Resolution No. 169-2020 certifying the Environmental Impact Report, including adoption of the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program, for the Genentech 2020 Master Plan Update (State Clearinghouse No. 2017052064, (2) Resolution No. 170-2020 adopting the Genentech 2020 Master Plan Update, and (3) Ordinance No. 1614-2020 amending Chapter 20.260 of the South San Francisco Municipal Code related to the Genentech Master Plan Zoning District; and WHEREAS, the Genentech 2020 Master Plan guides the development of the Genentech campus over a period of fifteen (15) years to create a vibrant, transit supported, state of the art research, office, and manufacturing campus for the life sciences; and WHEREAS, Genentech, Inc. (“Owner” or “Applicant”) has submitted an application requesting acquisition of certain public rights-of-way (DNA Way, Point San Bruno Boulevard, and Cabot Road) within the Genentech Campus Master Plan boundaries, and to add the vacated streets and private properties at 333 Point San Bruno Boulevard (APNs 015-250-410 and 015-250-140), 525 DNA Way (APN 015-250-210), and 383-393 East Grand Avenue (APN 015-250-390) to the Genentech Campus Master Plan (“Project”); and WHEREAS,the Applicant has proposed amendments to the Genentech 2020 Master Plan to incorporate the new private parcels and to reflect the ability to close certain portion of the roadways to public traffic if the terms and conditions of the purchase and sale agreement and maintenance and license agreement are met; and WHEREAS,the Applicant has proposed amendments to the General Plan to ensure internal consistency between the Genentech 2020 Master Plan and the General Plan,which include changes to the designation of DNA Way; and WHEREAS,the General Plan contains several goals,policies,and actions which support the sale of DNA Way, Point San Bruno Boulevard,and a segment of Cabot Road,in the interest of ensuring Genentech remains a premier biotechnology campus,prioritizing safety in all aspects of transportation planning,including prioritization of pedestrians and improving circulation to accommodate the travel demand of future workplaces; and WHEREAS,the Applicant has also proposed amendments to the City’s Zoning Map,considered under a separate ordinance,rezoning the project site parcels from Business Technology Park -Medium (BTP-M)to City of South San Francisco Printed on 6/18/2025Page 1 of 5 powered by Legistar™309 File #:25-401 Agenda Date:6/25/2025 Version:1 Item #:8e. separate ordinance,rezoning the project site parcels from Business Technology Park -Medium (BTP-M)to Genentech Master Plan District (GMP); and WHEREAS, approval of the Applicant’s proposal is considered a “project” for purposes of the California Environmental Quality Act, Pub. Resources Code § 21000, et seq. (“CEQA”); and WHEREAS,in 2020 the City certified the Environmental Impact Report for the Genentech 2020 Master Plan Update (“Genentech 2020 Master Plan Update EIR”) (State Clearinghouse No. 2017052064); and WHEREAS,in 2022,the City certified the Environmental Impact Report for the 2040 General Plan Update, Zoning Code Amendments,and Climate Action Plan (“SSF 2040 General Plan EIR”)(State Clearinghouse No. 2021020064); and WHEREAS,the Genentech 2020 Master Plan Update EIR and the SSF 2040 General Plan EIR (“Prior EIRs”) were certified in accordance with the provisions of the California Environmental Quality Act (Public Resources Code,§§21000,et seq.,“CEQA”)and CEQA Guidelines,which analyzed the potential environmental impacts of the Project; and WHEREAS,pursuant to CEQA Guidelines Section 15164,an Addendum to the Prior EIRs was prepared for the Project (“2025 Addendum”)which evaluates whether preparation of a Subsequent EIR or Negative Declaration is required; and WHEREAS,the 2025 Addendum concludes that in accordance with Public Resources Code §21166 and CEQA Guidelines §15162,the implementation of the Project will not cause any new significant impacts,that it will not trigger any new or more severe impacts than were studied in the previously certified Prior EIRs,that no substantial changes in the project or circumstances justifying major revisions to the Prior EIRs have occurred,and that no new information of substantial importance has come to light since the Prior EIRs were certified that shows new or more severe significant impacts nor shows new,different,or more feasible mitigation measures; and WHEREAS,the City Council previously adopted Mitigation Monitoring and Reporting Programs for the Prior EIRs and a Statement of Overriding Considerations for the Prior EIR’s significant and unavoidable impacts, both of which remain in full force and effect for the Project; and WHEREAS,by separate resolution,the City Council found that per CEQA Guidelines section 15162,the Project does not require any further CEQA review,and that the 2025 Addendum,prepared pursuant to CEQA Guidelines section 15164, is the appropriate environmental document for approval of the Project; and WHEREAS,on May 15,2025,the Planning Commission of the City of South San Francisco held a duly noticed public hearing at which time interested parties had the opportunity to be heard,to review the Project and the 2025 Addendum,and to receive public comments prior to making its recommendation on the Project; City of South San Francisco Printed on 6/18/2025Page 2 of 5 powered by Legistar™310 File #:25-401 Agenda Date:6/25/2025 Version:1 Item #:8e. and WHEREAS,on June 25,2025,the City Council held a duly noticed public hearing at which time interested parties had the opportunity to be heard,to review the Project and the 2025 Addendum,and to receive public comments prior to making its decision on the Project; and WHEREAS,the City Council exercised its independent judgement and analysis,and considered all reports, recommendations, and testimony before making a determination on the Project. NOW,THEREFORE,BE IT FOUND,DETERMINED,AND RESOLVED that based on the entirety of the record before it,which includes without limitation,the California Environmental Quality Act,Public Resources Code §21000,et seq.(“CEQA”)and the CEQA Guidelines,14 California Code of Regulations §15000,et seq.; the South San Francisco 2040 General Plan;the South San Francisco Municipal Code;the Genentech 2020 Master Plan Update EIR and Statement of Overriding Considerations;the SSF 2040 General Plan EIR and Statement of Overriding Considerations;the 2025 Genentech Addendum to the Genentech 2020 Master Plan Update EIR and SSF 2040 General Plan EIR;the draft General Plan Amendments;the draft Genentech 2020 Master Plan Amendments;the draft Zoning Map amendments;all reports,minutes,and public testimony submitted as part of the Planning Commission’s duly noticed May 15,2025 meeting;all reports,minutes,and public testimony submitted as part of the City Council’s duly noticed June 25,2025 meeting and any other evidence (within the meaning of Public Resources Code §21080(e)and §21082.2),the City Council of the City of South San Francisco hereby finds as follows: SECTION 1. FINDINGS A.General Findings 1.The foregoing recitals are true and correct and made a part of this Resolution. 2.The Exhibits attached to this Resolution,including the proposed Genentech 2020 Master Plan Amendments (Exhibit A)and the proposed General Plan Amendments (Exhibit B)are each incorporated by reference and made a part of this Resolution, as if set forth fully herein. 3.By separate resolution on June 25,2025,pursuant to a duly noticed public hearing and based on its independent judgement and analysis,the City Council adopted CEQA findings and a determination that the 2025 Addendum,prepared pursuant to CEQA Guidelines section 15164,is the appropriate environmental document for approval of the Project. 4.The documents and other material constituting the record for these proceedings are located at the Planning Division for the City of South San Francisco,315 Maple Avenue,South San Francisco,CA 94080, and in the custody of the Chief Planner. B.General Plan Amendment Findings 1.Sale and vacation of the public rights-of-way of DNA Way,Point San Bruno Blvd.,and the segment of Cabot Road between Allerton Ave and DNA Way are consistent with and in conformity with the General Plan,as these actions promote continued redevelopment of the Genentech Campus within the East of 101 area,helping South San Francisco to remain a hub of R&D employment,operations,and City of South San Francisco Printed on 6/18/2025Page 3 of 5 powered by Legistar™311 File #:25-401 Agenda Date:6/25/2025 Version:1 Item #:8e. 101 area,helping South San Francisco to remain a hub of R&D employment,operations,and innovation,continues collaboration with property owners to improve connectivity for R&D workforces, and prioritizes safety in all aspects of transportation planning and engineering. 2.The revisions to the General Plan Figures that are set forth in Exhibit A will remove road designations for DNA Way,Point San Bruno Blvd.,and a portion of Cabot Road because they will no longer be public roads.The changes are consistent and compatible with the rest of the General Plan and also ensure consistency with the Genentech Master Plan. 3.As required under State law,the South San Francisco General Plan,and the South San Francisco Municipal Code,in support of the General Plan Amendments,the proposed General Plan Amendments are otherwise consistent with and in conformity with the South San Francisco General Plan,do not obstruct or impede achievement of any General Plan policies,and further a number of important General Plan Goals and Policies set forth in the Land Use,Planning Sub-Areas,Prosperous Economy and Mobility and Access Elements, including without limitation: Land Use Element LU Goal 5:South San Francisco remains a hub of R&D employment,operations,and innovation and is home to the largest worldwide cluster of life science uses. LU Policy 5.5:Improve connectivity for R&D workforces.Maintain vehicular infrastructure and improve circulation to accommodate the travel demand of existing and future workplaces. LU Policy 5.7: Collaboration with property owners. Planning Sub-Areas Element: East of 101 SA Goal 19:Vehicle trips are minimized through parking requirements,Transportation Demand Management, and alternative travel modes. Prosperous Economy Element PE Goal 1:South San Francisco remains a premier location for biotechnology and related industries. Mobility and Access Element MOB Goal 1:South San Francisco prioritizes safety in all aspects of transportation planning and engineering. C.2025 Genentech Master Plan Amendment Findings 1.The 2025 Genentech Master Plan Amendments,referenced as Exhibit A,continue to implement and be consistent with the General Plan,as proposed for amendment,because the Master Plan continues to reinforce many of the General Plan policies related to the East of 101 Sub-Area,including Goals and Policies set forth in the Land Use,Planning Sub-Areas,and Mobility and Access Elements. Furthermore,the 2025 Genentech Master Plan Amendments do not conflict with any specific plans and will remain consistent with the City’s overall vision for the East of 101 sub-area.The 2025 Genentech Master Plan Amendments will not conflict with or impede achievement of any of the goals,policies,or City of South San Francisco Printed on 6/18/2025Page 4 of 5 powered by Legistar™312 File #:25-401 Agenda Date:6/25/2025 Version:1 Item #:8e. land use designations established in the General Plan. 2.The 2025 Genentech Master Plan Amendments will not be detrimental to the public interest,health, safety,convenience,or welfare of the City because the 2025 Genentech Master Plan Amendments do not alter any of the previously adopted development,land use,and performance standards related to new development or alteration.More specifically,the 2025 Genentech Master Plan Amendments reflect the inclusion of new private parcels and the ability for future closure of DNA Way,Point San Bruno Blvd., and a portion of Cabot Road to public through traffic. 3.The Genentech Master Plan area,as evaluated in the Genentech 2020 Master Plan EIR (State Clearinghouse No.2017052064)and confirmed in the 2025 Addendum,is physically suitable for the proposed land use designation(s)and the anticipated development since the area is well served by multi- modal transportation options,private commuter shuttle options,existing infrastructure and utilities,and other public services as identified for further investment as part of the Genentech Master Plan’s implementation. 4.The 2025 Genentech Master Plan Amendments do not make any changes to the development and design standards adopted within the 2020 Master Plan,and therefore will continue to be superior to development otherwise allowed under conventional zoning classifications since the Genentech 2020 Master Plan provides additional development and design standards to promote high density life sciences development,and concurrently,proposes enhancements to circulation,parking,utilities,and public services to accommodate anticipated growth within the employment districts. SECTION 2. DECISION NOW,THEREFORE,BE IT FURTHER RESOLVED that the City Council of the City of South San Francisco hereby makes the findings contained in this Resolution and adopts the Genentech 2020 Master Plan Amendments (MPM25-0001)attached as Exhibit A and the associated General Plan Amendments (GPA25- 0001) attached as Exhibit B. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its passage and adoption. ***** City of South San Francisco Printed on 6/18/2025Page 5 of 5 powered by Legistar™313 Exhibit A - Genentech Master Plan Amendments Genentech Master Plan Amendments to incorporate additional properties, including the vacated streets. Chapter 3: Urban Design 1. Page 45 - update the third bullet to read: • A shared-street concept may be considered, whereby DNA Way is scheduled for partial closure to general vehicle traffic during specified times of the day, and opened as a pedestrian-only environment with accommodations for emergency vehicles and shuttle and bus access. A pedestrian oriented Campus may be achieved by vacating DNA Way, Point San Bruno Boulevard and Cabot Road. With review and approval by the City, these roads may remain open, partially open, or closed, as long as proper emergency vehicle, and shuttle and bus access is provided. Any future closure of these streets to public access shall follow the process outlined in the associated Purchase and Sale Agreement and Maintenance and License Agreement. These agreements require a future appraisal and a supplemental payment to the City if certain identified portions of the roadway are proposed for closure. 2. Page 53 - amend to read: • Additionally, Genentech intends to engage the City in a conversation about the potential for a daily closure of to vacate and privatize portions of DNA Way, Point San Bruno Boulevard and Cabot Road where it passes through the central portion of the Upper Campus. These road segments currently only serve the Genentech Campus and Wind Harp. The purpose of this road closure these street vacations would be to further align the design of the central Campus with the urban design objectives listed in Section 3.2 and to work with the City to make this road segment these roadway segments into a more pedestrian-oriented place where people are prioritized over vehicles. The public road closure might only occur between the morning and afternoon peak traffic hours, so that regular vehicle traffic would continue during non-peak hours (including at night). Any future modification to the use of the road as a thoroughfare or vehicular access will be reviewed and approved through the City. 3. Page 63 - replace the 4th bullet point as follows: • Consider partial closure of DNA Way within the Campus core area to vehicle traffic during scheduled times of the workday, better establishing this area as a pedestrian priority zone. Consider privatization of DNA Way, Point San Bruno Boulevard and Cabot Road within the Campus Core area to support and prioritize a pedestrian oriented campus. Chapter 4: Transportation, Circulation and Parking 4. Page 89 - amend the 3rd bullet as follows: • DNA Way is a two-way road connecting East Grand Avenue with Forbes Boulevard passing through the center of the Genentech Campus. A City approved plan will need to be implemented if the street is partially closed to through traffic. 5. Page 95, Potential DNA Way Closure – amend as follows: • DNA Way is the main public street through the Campus and provides public circulation from East Grand Avenue to Forbes Boulevard. Genentech-related vehicles are the primary users of this road. As part of the Urban Design strategy of this Master Plan Update, Genentech is exploring the possibility of a daily closure of DNA Way to public through traffic east of Wind Harp, where it passes through the central portion of the Upper Campus. The purpose of this partial road closure would be to make this road 314 segment, which bisects the center of the Campus, into a more pedestrian-oriented place where people are prioritized over vehicles. A possible road closure or changes to the site circulation would be reviewed and approved by the City prior to implementing any roadway closures. The public road closure might only occur between the morning and afternoon peak traffic hours (e.g., between 10:00 AM and 3:30 PM) so that public circulation would continue during non-closure hours (including at night). During the non- closure hours, DNA Way would be fully open to public traffic, and would provide non-peak commuters with convenient access to all on-Campus parking facilities. The road closure would only affect private vehicles. All public transit and Genentech transit services, including the gRide shuttle system and Genentech service vehicles, would continue to use DNA Way at all times in dedicated and clearly identified lanes. With implementation of a broader parking garage strategy, commuters and visitors to the Campus would be able to access new parking facilities around the outer edges of the Campus, and would not need to drive through the Upper Campus at all. Allerton, Forbes and East Grand Avenue would be unaffected. Within the Upper Campus (i.e., between the entrance to Building 35 and the intersection at Point San Bruno Boulevard near the B30 Quad buildings), the former DNA Way right- of-way would be designed to look and feel “different” than a traditional public street. This design treatment may include special pavers rather than asphalt, dedicated bike lanes, rolled curbs, and adjacent pedestrian amenities. These design strategies are intended to allow this former street segment to function as a designated pedestrian environment. , shared with transit and emergency vehicle use. 6. Page 100 - amend the 2nd bullet as follows: • Considering a shared-street concept whereby portions of the campus are DNA Way is scheduled for closure to general traffic, and opened as a pedestrian environments with accommodations for shuttles, service vehicles, and buses only. For people to be comfortable and safe, designs for this these spaces will prioritize pedestrians (e.g., special paving to demarcate a shared pedestrian/auto- zone, and landscaped bulb-outs within the street at pedestrian pathway intersections) Figures (maps) throughout the Genentech Master Plan which required updates to include additional properties, including the privatized streets. 1. Figure 1-2: General Plan Land Use Diagram 2. Figure 1-3: SSF Zoning Designation 3. Table 2-1: Genentech Campus and Neighborhood Campuses (acres) 4. Figure 2-1: Campus Boundary and Neighborhood Campuses 5. Figure 2-2: Zoning Map 6. Figure 2-4: Master Plan Update Opportunity Sites 7. Figure 3-1 Illustrative Example of Campus-wide Placemaking Strategies 315 8. Figure 4-2: Public Transit Services 9. Figure 4-4: Local Bicycle and Trail Facilities 316 Exhibit B – General Plan Amendments General Plan Amendments to incorporate the potential future closure of DNA Way within the Genentech Master Plan Area. Chapter 9: Mobility and Access 1.Modify the Roadway Network diagram (Figure 14: Proposed Roadway Network on page 182 of the General Plan) to remove DNA Way as ‘Existing Connector (Collector)’. As defined in the General Plan, connector (collector) streets are primary or secondary streets within the city that serve as corridors to major destinations. While the Genentech Campus is a major destination, use of DNA Way and Point San Bruno Boulevard are overwhelmingly used by employees of Genentech who will maintain access to campus via the existing streets that surround the campus. 2.Modify the Truck Network and Restrictions diagram (Figure 16: Truck Network and Restrictions on page 187 of the General Plan) to remove DNA Way as a designated “Truck Route”. The General Plan uses a base street network map throughout all figures within the General Plan to provide context to the reader, and this base map often shows DNA Way and Point San Bruno as Connector Streets. Since these base maps are intended only to provide context and do not relay standards or specific roadway requirements, the requested General Plan Amendments are limited to Figures 14 and 16 discussed above. 317 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-673 Agenda Date:6/25/2025 Version:1 Item #:9. Report regarding a resolution approving the South San Francisco Conference Center Authority Fiscal Year 2025 - 26 Budget.(Jim McGuire, South San Francisco Conference Center Authority Executive Director) RECOMMENDATION It is recommended that the City Council of the City of South San Francisco adopt a resolution approving the South San Francisco Conference Center Authority Fiscal Year 2025-26 Budget. BACKGROUND/DISCUSSION The South San Francisco Conference Center Authority (“Conference Center Authority”),which includes members Mayor Flores and Councilmember Nicolas, reviewed and approved the Fiscal Year (“FY”) 2025-26 Budget at its regular meeting on April 21, 2025. The FY 2025-26 Budget includes a total revenue projection of $5,558,813 and a total expenditure request of $3,544,693,which is the third consecutive year that the Conference Center Operations Projected Revenue will exceed Operational Expenditures.The Conference Center Authority projected it will end up with a surplus of $125,815.In three (3)years since the Conference Center Authority’s Net Income was budgeted to be in the red by $238,000,the FY 2024-25 Net Income will end up with over $341,000 surplus. The Conference Center Authority’s FY 2025-26 Budget includes a hotel occupancy projection of 67%.It is anticipated that FY 2024 -25 year-end occupancies will be approximately 65%.The Bay Area's hotel occupancy still lags all other major market destinations in the United States, while industry experts are hopeful for a full recovery in the years 2026-27. The Conference Center Authority’s expenditure request reflects a continuation budget;however,funds have been increased in A&G, Operations Services,and Sales and Marketing due to more business coming into the building than last FY and with the large inflation factor including contract labor,the current administration’s tariff policies and other uncertainties.Property taxes and lease budgets cover the Conference Center Authority’s requirements. This year’s Capital Improvement Budget includes funds for ten (10)projects,including:A New Meat Slicer,Water Fountain Station Replacements,Replace Broken Herman Miller Executive Chairs,Air Wall Refurbishment,Six (6’)Event Tables,Purchase New Table Skirts,Dishwasher Replacement,Upgrade Front Office Area,HVAC Unit for the Oyster Point Room,Lobby Sunshades.The full list of Capital Improvement projects is included in the FY 2025-26 Budget Document and sets forth a proposal of $423,000 in expenditures. The Conference Center Authority’s fund balance increased by $398,733 and the FY 2024-25 projected ending unrestricted fund balance is approximately $4,396,387 (which is back at pre-pandemic levels)and indicates that the Conference Center Authority can operate and pay its expenses without General Fund subsidies. An overview of the FY 2024-25 Year End Budget and FY 2025-26 Proposed Budget is included in the table below: South San Francisco Conference Center FY25-26 Proposed Budget FY24-25 Year End Total Revenue Projection 5,558,813 5,412,404 Total Cost of Good Sold Projection 1,636,838 1,528,984 Total Expenditure Projection 3,544,693 3,302,009 Total Depreciation Projection 251,467 240,410 Total Net Income 125,815 341,001 City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™318 File #:25-673 Agenda Date:6/25/2025 Version:1 Item #:9. South San Francisco Conference Center FY25-26 Proposed Budget FY24-25 Year End Total Revenue Projection 5,558,813 5,412,404 Total Cost of Good Sold Projection 1,636,838 1,528,984 Total Expenditure Projection 3,544,693 3,302,009 Total Depreciation Projection 251,467 240,410 Total Net Income 125,815 341,001 FISCAL IMPACT The South San Francisco Conference Center Authority Fiscal Year 2025-26 Budget approval will not impact the City’s budget as it does not include General Fund subsidies. CONCLUSION The South San Francisco Conference Center Authority recommends the Fiscal Year 2025-26 Budget to the City Council for their review and approval. ATTACHMENT Attachment 1:FY 2025-26 Proposed Budget City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™319 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget Summary Revenue Projections - All Sources Revenue FY 25-26 FY 24-25 FY 24-25 Center Proposed Budget Year End Approved Budget Conference Center Operations 3,456,290$ 3,256,169$ 3,422,588$ Conference Center Tax 1,995,923$ 1,984,492$ 1,995,007$ Interest Income & Other 106,600$ 171,743$ 106,600$ Total 5,558,813$ 5,412,404$ 5,524,195$ Expenditure Projections - All Sources Revenue FY 25-26 FY 24-25 FY 24-25 Center Proposed Budget Year End Approved Budget Conference Center Operations 2,937,935$ 2,718,231$ 2,819,444$ Property Leases/Taxes 543,250$ 526,230$ 521,800$ Conference Center Other Non-Operations 63,508$ 57,548$ 59,008$ Total 3,544,693$ 3,302,009$ 3,400,252$ Income Projections - All Sources Revenue FY 25-26 FY 24-25 FY 24-25 Center Proposed Budget Year End Approved Budget Gross Profit 377,282$ 581,411$ 416,896$ Depreciation 251,467$ 240,410$ 329,077$ Net Income 125,815$ 341,001$ 87,819$ Unrestricted Fund Balance Ending Unrestricted Fund Balance as of 6/30/2024 3,997,654$ 250,000$ FY24-25 Interest Income 148,733$ Projected Ending Unrestricted Fund Balance as of 6/30/2025 4,396,387$ 250,000$ FY25-26 Interest Income 100,000$ Projected Ending Unrestricted Fund Balance as of 6/30/2026 4,646,387$ FY24-25 Deposit / (Withdrawal) FY25-26 Deposit / (Withdrawal) Page 1 of 1320 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Year-Over-Year Expenditure FY 25-26 FY 24-25 FY 24-25 Proposed Budget Year End Approved Budget Administrative & General Salaries & Benefits 1,607,365 1,518,941 1,557,911 General Insurance 41,400 40,659 41,400 Bank Charges / Credit Card Fees 85,040 75,680 93,461 Property/Taxes/Leases 543,250 526,230 521,800 Debt Services - - - Office Expenses 13,980 12,817 14,080 Other Administrative & General 43,700 37,372 37,370 Sub-Total:2,334,735 2,211,699 2,266,022 OPS/Maintenance Services & Supplies Custodial Services 113,454 94,665 109,010 Event Labor 172,409 153,484 164,554 Landscaping 12,200 10,375 11,000 Security Labor 6,000 2,766 6,000 Safety & Security 26,170 20,415 17,544 HVAC Services 25,800 16,448 25,800 Kitchen Services 19,000 20,617 20,800 Maintenance Services & Equipments 40,900 58,711 40,900 IT & Communications 197,964 179,576 182,874 Utilities 205,508 181,624 189,191 Client Services Expenses 23,288 24,822 20,973 Other Operation 20,400 6,960 3,600 Sub-Total:863,093 770,464 792,246 Sales & Marketing Services Marketing 161,503 149,818 154,602 Client Entertainment 44,500 34,724 51,400 Client Gifts 4,300 18,765 4,900 Tradeshows 17,800 14,419 21,200 Industry Event Registration 5,400 1,517 5,400 Dues/Memberships 8,844 8,778 4,054 Group Incentive Rentals 2,000 2,500 4,000 Travel Expenses 29,010 19,435 24,900 Other Sales & Marketing 10,000 12,341 12,520 Sub-Total:283,357 262,298 282,976 Professional Services Legal 26,400 21,970 26,400 Staff Training & Education 9,000 4,513 5,000 Audit Service 18,000 17,000 17,500 City Finance Service 10,008 10,003 10,008 Other Professional Services 100 4,062 100 Sub-Total:63,508 57,548 59,008 Depreciation & Others Depreciation 251,467 240,410 329,077 Sub-Total:251,467 240,410 329,077 TOTAL 3,796,160 3,542,419 3,729,329 Total without Depreciation 3,544,693 3,302,009 3,400,252 Page 1 of 1321 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total Income 41000 Income 41100 Room Rental Income 70,000 145,000 100,000 100,000 75,000 70,000 70,000 90,000 85,000 85,000 100,000 95,000 1,085,000 41200 Event Services Income - - - - - - - - - - - - - 41201 Event Services - Additional Services 17,000 22,200 26,000 26,000 12,500 9,500 2,200 15,000 12,200 9,600 14,000 10,000 176,200 41202 Event Services - Additional Services Labor Fee - - - - - - - - - - - - - 41203 Event Services - Equipment Rental - - - - - - - - - - - - - 41204 Event Services - Equipment Rental Labor - - - - - - - - - - - - - 41205 Event Services Other - - - - - - - - - - - - - 41211 Event Services Security 4,200 8,700 6,000 6,000 4,500 4,200 4,200 5,400 5,100 5,100 6,000 5,700 65,100 41212 Event Services Insurance 1,120 2,320 1,600 1,600 1,200 1,120 1,120 1,440 1,360 1,360 1,600 1,520 17,360 Total 41200 Event Services Income 22,320 33,220 33,600 33,600 18,200 14,820 7,520 21,840 18,660 16,060 21,600 17,220 258,660 41300 Audio Visual Income - 41301 Audio Visual Equipment Rental 11,900 24,650 17,000 17,000 12,750 11,900 11,900 15,300 14,450 14,450 17,000 16,150 184,450 41302 Audio Visual Service Charge 2,975 6,163 4,250 4,250 3,188 2,975 2,975 3,825 3,613 3,613 4,250 4,038 46,115 41303 Audio Visual Labor 8,330 17,255 11,900 11,900 8,925 8,330 8,330 10,710 10,115 10,115 11,900 11,305 129,115 41304 Audio Visual Merchandise - - - - - - - - - - - - - Total 41300 Audio Visual Income 23,205 48,068 33,150 33,150 24,863 23,205 23,205 29,835 28,178 28,178 33,150 31,493 359,680 41400 Food & Beverage Income - 41401 Food & Beverage Charge 65,000 140,000 140,000 140,000 130,000 200,000 75,000 75,000 75,000 85,000 105,000 125,000 1,355,000 41402 Food & Beverage Service Charge 16,250 35,000 35,000 35,000 32,500 50,000 18,750 18,750 18,750 21,250 26,250 31,250 338,750 41403 Food & Beverage Labor Fee 1,300 2,800 2,800 2,800 2,600 4,000 1,500 1,500 1,500 1,700 2,100 2,500 27,100 41404 Food & Beverage Cash Bar 1,300 2,800 2,800 2,800 2,600 4,000 1,500 1,500 6,500 1,700 2,100 2,500 32,100 Total 41400 Food & Beverage Income 83,850 180,600 180,600 180,600 167,700 258,000 96,750 96,750 101,750 109,650 135,450 161,250 1,752,950 41500 Other Income - 41501 Finance Charge - - - - - - - - - - - - - 41502 Cancellation - - - - - - - - - - - - - Total 41500 Other Income - - - - - - - - - - - - - Total 41000 Income 199,375 406,888 347,350 347,350 285,763 366,025 197,475 238,425 233,588 238,888 290,200 304,963 3,456,290 Total Income 199,375 406,888 347,350 347,350 285,763 366,025 197,475 238,425 233,588 238,888 290,200 304,963 3,456,290 Cost of Goods Sold 42000 Cost of Goods Sold - 42100 COGS Room Rental - - - - - - - - - - - - - 42200 COGS Event Services - - - - - - - - - - - - - 42201 COGS Event Services - Additional Services 4,250 5,550 6,500 6,500 3,125 2,375 550 3,750 3,050 2,400 3,500 2,500 44,050 42202 COGS Event Services - Additional Service Labor Fee - - - - - - - - - - - - - 42203 COGS Event Services - Equipment Rental - - - - - - - - - - - - - 42204 COGS Event Services - Equipment Rental Labor - - - - - - - - - - - - - 42205 COGS Event Services Other - - - - - - - - - - - - - 42211 COGS Event Services Security 3,990 8,265 5,700 5,700 4,275 3,990 3,990 5,130 4,845 4,845 5,700 5,415 61,845 42212 COGS Event Services Insurance 896 1,856 1,280 1,280 960 896 896 1,152 1,088 1,088 1,280 1,216 13,888 Total 42200 COGS Event Services 9,136 15,671 13,480 13,480 8,360 7,261 5,436 10,032 8,983 8,333 10,480 9,131 119,783 42300 COGS Audio Visual - 42301 COGS Audio Visual Equipment Rental 7,140 14,790 10,200 10,200 7,650 7,140 7,140 9,180 8,670 8,670 10,200 9,690 110,670 42302 COGS Audio Visual Service Charge 2,678 5,547 3,825 3,825 2,869 2,678 2,678 3,443 3,252 3,252 3,825 3,634 41,506 42303 COGS Audio Visual Labor 7,497 15,530 10,710 10,710 8,033 7,497 7,497 9,639 9,104 9,104 10,710 10,175 116,206 42304 COGS Audio Visual Merchandise 0 0 0 0 0 0 0 0 0 0 0 0 - Total 42300 COGS Audio Visual 17,315 35,867 24,735 24,735 18,552 17,315 17,315 22,262 21,026 21,026 24,735 23,499 268,382 42400 COGS Food & Beverage - 42401 COGS Food & Beverage Charge 45,338 97,650 97,650 97,650 90,675 139,500 52,313 52,313 52,313 59,288 73,238 87,188 945,116 42402 COGS Food & Beverage Service Charge 12,188 26,250 26,250 26,250 24,375 37,500 14,063 14,063 14,063 15,938 19,688 23,438 254,066 42403 COGS Food & Beverage Labor Fee 1,300 2,800 2,800 2,800 2,600 4,000 1,500 1,500 1,500 1,700 2,100 2,500 27,100 42404 COGS Food & Beverage Cash Bar 907 1,953 1,953 1,953 1,814 2,790 1,046 1,046 4,534 1,186 1,465 1,744 22,391 Total 42400 COGS Food & Beverage 59,733 128,653 128,653 128,653 119,464 183,790 68,922 68,922 72,410 78,112 96,491 114,870 1,248,673 Proposed Budget Page 1 of 7 322 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 42500 COGS Other Income - - - - - - - - - - - - - Total 42000 Cost of Goods Sold 86,184 180,191 166,868 166,868 146,376 208,366 91,673 101,216 102,419 107,471 131,706 147,500 1,636,838 Total Cost of Goods Sold 86,184 180,191 166,868 166,868 146,376 208,366 91,673 101,216 102,419 107,471 131,706 147,500 1,636,838 Gross Profit 113,191 226,697 180,482 180,482 139,387 157,659 105,802 137,209 131,169 131,417 158,494 157,463 1,819,452 Expenses 60000 Operating Expenses - 65000 Administrative & General Expenses - 65100 Salary & Benefit - 65101 Salaries 74,133 87,232 87,732 87,732 87,732 87,732 89,785 88,631 88,131 87,631 87,631 87,010 1,041,112 65102 Vacation Pay 5,333 5,333 5,333 5,333 5,333 5,333 5,405 5,405 5,405 5,405 5,405 5,405 64,428 65103 PTO Pay 516 - - - - - 18,314 - - - - - 18,830 65104 Sick Pay 2,429 2,429 2,429 2,429 2,429 2,429 2,451 2,451 2,451 2,451 2,451 2,182 29,011 65105 Payroll Taxes 7,146 7,146 7,146 7,146 7,146 7,146 7,182 7,217 7,217 7,217 7,217 7,217 86,143 65107 Health Benefit 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 226,980 65108 Retirement Benefit 7,938 7,938 7,938 7,938 7,938 7,938 7,978 8,018 8,018 8,018 8,018 8,018 95,696 65110 Workers Comp. Insurance 708 708 708 708 708 708 711 714 714 714 714 714 8,529 65111 WI & LTD Benefits 977 977 977 977 977 977 977 977 977 977 977 977 11,724 65112 Retiree's Health Benefits 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 65113 Other Benefits 276 276 276 276 276 276 276 276 276 276 276 276 3,312 65114 Payroll Services 300 300 300 300 300 300 300 300 300 300 300 300 3,600 65115 Recruitment - - - - - - - - - - - - - Total 65100 Salary & Benefit 120,171 132,754 133,254 133,254 133,254 133,254 153,794 134,404 133,904 133,404 133,404 132,514 1,607,365 65200 General Insurance - 65201 Property Insurance 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 18,600 65202 Liability Insurance 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 22,800 65203 Other Insurance - - - - - - - - - - - - - Total 65200 General Insurance 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 41,400 65300 Bank Charges - 65301 Bank Fee 30 30 30 30 30 30 30 30 30 30 30 30 360 65302 Credit Card Fee 4,885 9,969 8,510 8,510 7,001 8,968 4,838 5,841 5,723 5,853 7,110 7,472 84,680 Total 65300 Bank Charges 4,915 9,999 8,540 8,540 7,031 8,998 4,868 5,871 5,753 5,883 7,140 7,502 85,040 65400 Property/ Taxes/ Lease - 65401 Property Lease 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000 65402 Parking Lot Lease 5,500 5,500 5,500 5,500 5,500 5,500 6,875 6,875 6,875 6,875 6,875 6,875 74,250 65403 Property Tax - - - 23,000 - - 23,000 - - - - - 46,000 65404 Possessory Tax 3,000 - - - - - - - - - - - 3,000 Total 65400 Property/ Taxes/ Lease 43,500 40,500 40,500 63,500 40,500 40,500 64,875 41,875 41,875 41,875 41,875 41,875 543,250 65500 Debt Service - 65501 Debt Service Payment - - - - - - - - - - - - - 65502 Debt Service Offset - - - - - - - - - - - - - 65503 Bad Debt - - - - - - - - - - - - - Total 65500 Debt Service - - - - - - - - - - - - - Proposed Budget Page 2 of 7 323 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 65600 Office Expenses - 65601 Equipment Purchase 300 - - 300 - - 1,300 - - 300 - - 2,200 65602 Furniture Purchase 300 - - 300 - - 300 - - 300 - - 1,200 65603 Computers & Electronics 300 - - 300 - - 300 - - 300 - - 1,200 65604 Office Supplies 200 200 200 200 200 200 200 200 200 200 200 200 2,400 65606 Printing & Stationary 100 100 100 100 100 100 100 100 100 100 100 100 1,200 65610 Copier - - - - - - - - - - - - - 65611 Copier Lease 440 440 440 440 440 440 440 440 440 440 440 440 5,280 65612 Copier Usage - - 50 - - 50 - - 50 - - 50 200 Total 65610 Copier 440 440 490 440 440 490 440 440 490 440 440 490 5,480 65620 Postage & Shipping - 65621 Postage Machine - - - - - - - - - - - - - 65622 Postage Usage & Others - - 50 - - 50 - - 50 - - 50 200 65623 UPS - - - - - - - - - - - - - 65624 FedEx - - 25 - - 25 - - 25 - - 25 100 Total 65620 Postage & Shipping - - 75 - - 75 - - 75 - - 75 300 Total 65600 Office Expenses 1,640 740 865 1,640 740 865 2,640 740 865 1,640 740 865 13,980 65670 Donation - - - 2,500 - - - - - - - - 2,500 65810 Travel Expense - Admin - 65811 Airfare - Admin - - - - - - - - - - - 600 600 65812 Lodging - Admin - - - - - - - - - - - 1,000 1,000 65813 Meals - Admin - - - - - - - - - - - 400 400 65814 Transportation - Admin 50 50 100 50 50 100 50 50 100 50 50 300 1,000 65815 Other Travel Expenses - Admin - - - - - - - - - - - 200 200 Total 65810 Travel Expense - Admin 50 50 100 50 50 100 50 50 100 50 50 2,500 3,200 65820 Employee Relation - Admin 300 300 600 300 800 3,300 300 300 600 300 4,800 1,300 13,200 65910 Public Relations - - - - - - - - - - - - - 65911 Authority Board - 1,300 - 1,300 - 7,300 - 1,300 - 1,300 - 1,300 13,800 65912 Community - Admin - - 750 - - 750 - - 750 - - 750 3,000 65913 Meeting 600 600 800 600 600 800 600 600 800 600 600 800 8,000 Total 65910 Public Relations 600 1,900 1,550 1,900 600 8,850 600 1,900 1,550 1,900 600 2,850 24,800 Total 65000 Administrative & General Expenses 174,626 189,693 188,859 215,134 186,425 199,317 230,577 188,590 188,097 188,502 192,059 192,856 2,334,735 66000 Operation & Maintenance Expenses - 66100 Contract Labor & Service - 66110 Custodial Expenses - 66111 Regular Custodial Hours 6,300 13,050 9,000 9,000 6,750 6,300 6,300 8,100 7,650 7,650 9,000 8,550 97,650 66112 Other Custodial Services - - - - - - - - - - - - - 66113 Custodial Supplies 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 13,800 66114 Custodial Equipment 167 167 167 167 167 167 167 167 167 167 167 167 2,004 Total 66110 Custodial Expenses 7,617 14,367 10,317 10,317 8,067 7,617 7,617 9,417 8,967 8,967 10,317 9,867 113,454 66120 Event Labor - 66121 Setup/Teardown Service 4,823 9,991 6,890 6,890 5,168 4,823 4,823 6,201 5,857 5,857 6,890 6,546 74,759 66122 Other Event Labor 6,300 13,050 9,000 9,000 6,750 6,300 6,300 8,100 7,650 7,650 9,000 8,550 97,650 Total 66120 Event Labor 11,123 23,041 15,890 15,890 11,918 11,123 11,123 14,301 13,507 13,507 15,890 15,096 172,409 66130 Landscaping Expenses - 66131 Landscaping Exterior Service 650 650 950 650 650 950 650 650 950 650 650 950 9,000 66132 Landscaping Interior Service 100 100 100 100 100 100 100 100 100 100 100 100 1,200 66133 Landscaping Tools & Supplies - - 500 - - 500 - - 500 - - 500 2,000 Total 66130 Landscaping Expenses 750 750 1,550 750 750 1,550 750 750 1,550 750 750 1,550 12,200 Proposed Budget Page 3 of 7 324 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 66140 Security Labor - 66141 Security Regular Hours 500 500 500 500 500 500 500 500 500 500 500 500 6,000 66142 Security for In-House Events - - - - - - - - - - - - - 66143 Police for In-House Events - - - - - - - - - - - - - Total 66140 Security Labor 500 500 500 500 500 500 500 500 500 500 500 500 6,000 66210 Safety & Security - 66211 Alarm Monitoring 185 185 185 185 185 185 185 185 185 185 185 185 2,220 66212 Fire System Test & Inspection 3,000 650 - - - - - 8,000 - - - - 11,650 66213 SSFFD Inspection - - 900 - - - - - - - - - 900 66214 First Aid Kit PM Service 700 700 700 700 700 700 700 700 700 700 700 700 8,400 66216 Emergency Training - - - - - - - - 2,000 - - - 2,000 66217 Other Safety Service - - - - - - - - - - - - - 66218 Other Safety Eqt. & Supplies - - 250 - - 250 - - 250 - - 250 1,000 Total 66210 Safety & Security 3,885 1,535 2,035 885 885 1,135 885 8,885 3,135 885 885 1,135 26,170 Total 66100 Contract Labor & Service 23,875 40,193 30,292 28,342 22,120 21,925 20,875 33,853 27,659 24,609 28,342 28,148 330,233 66220 HVAC - 66221 HVAC PM Service 1,450 - - 3,850 - - 1,450 - - 3,850 - - 10,600 66222 HVAC Repair Service 2,000 - - 2,000 - - 2,000 - - 2,000 - - 8,000 66223 HVAC Filters - - 1,800 - - 1,800 - - 1,800 - - 1,800 7,200 66224 HVAC Other Supplies - - - - - - - - - - - - - Total 66220 HVAC 3,450 - 1,800 5,850 - 1,800 3,450 - 1,800 5,850 - 1,800 25,800 66230 Kitchen - 66231 Kitchen PM Service - - 400 - - 400 - - 400 - - 400 1,600 66232 Kitchen Eqt. Service - - 750 - - 750 - - 750 - - 750 3,000 66233 Kitchen Refrigeration PM - - 800 - - 800 - - 800 - - 800 3,200 66234 Kitchen Refrigeration Service - - 500 - - 500 - - 500 - - 500 2,000 66235 Kitchen Grease Trap - - 1,200 - - - - - 1,200 - - - 2,400 66236 Kitchen Hydro-Jet - - - 900 - - - - - 900 - - 1,800 66237 Other Kitchen Expenses - - 750 - - 2,750 - - 750 - - 750 5,000 Total 66230 Kitchen - - 4,400 900 - 5,200 - - 4,400 900 - 3,200 19,000 66300 Maintenance Services & Equipments - 66301 Airwall Maintenance & Repairs 750 - - 750 - - 750 - - 750 - - 3,000 66302 Pest Control 350 350 350 350 350 350 350 350 350 350 350 350 4,200 66303 General Electrical 1,000 - - 1,000 - - 1,000 - - 1,000 - - 4,000 66304 General Plumbing 1,000 - - 1,000 - - 1,000 - - 1,000 - - 4,000 66305 Painting & Wall Repair 250 - - 250 - - 250 - - 250 - - 1,000 66306 Carpet & Flooring 150 - - 150 - - 150 - - 150 - - 600 66307 Asphalt and Masonry 125 - - 125 - - 125 - - 125 - - 500 . 66308 General Carpentry 350 350 350 350 350 350 350 350 350 350 350 350 4,200 . 66309 Welding & Sheet Metal - - - - - - - - - - - - - 66311 E-Waste Disposal 200 - - 200 - - 200 - - 200 - - 800 . 66312 Other Interior Service 625 - - 625 - - 625 - - 625 - - 2,500 . 66313 Other Exterior Service 625 - - 625 - - 625 - - 625 - - 2,500 66314 Decorations - - - - 4,000 - - - - - - - 4,000 66315 Parking & Towing 100 - - 100 - - 100 - - 100 - - 400 66316 Keys & Locks 150 - - 150 - - 150 - - 150 - - 600 66317 Furniture & Fixtures 150 - - 150 - - 150 - - 150 - - 600 . 66318 Other Equipments 500 - - 500 - - 500 - - 500 - - 2,000 66321 Lighting & Batteries 1,000 - - 1,000 - - 1,000 - - 1,000 - - 4,000 66322 Tools 200 - - 200 - - 200 - - 200 - - 800 66323 Workwear 300 - - 300 - - 300 - - 300 - - 1,200 Total 66300 Maintenance Services & Equipments 7,825 700 700 7,825 4,700 700 7,825 700 700 7,825 700 700 40,900 Proposed Budget Page 4 of 7 325 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 66400 IT & Communications - 66401 IP Phone System Management 660 660 660 660 660 660 660 660 660 660 660 660 7,920 66402 Wireless Cell Phones 547 547 547 547 547 547 547 547 547 547 547 547 6,564 66405 Fiber Optic Line 1 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 31,680 66406 Fiber Optic Line 2 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 31,680 66407 Other Communications 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 66408 WiLine Fiber Optic 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400 66409 IT Services 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000 66411 Software/Systems Management 2,890 3,040 2,650 2,800 2,650 2,990 2,890 2,650 2,970 8,650 2,650 2,890 39,720 Total 66400 IT & Communications 16,077 16,227 15,837 15,987 15,837 16,177 16,077 15,837 16,157 21,837 15,837 16,077 197,964 66500 Utilities - 66501 PG&E Electricity 11,400 20,400 15,000 12,000 6,000 5,400 5,400 7,800 10,200 10,200 12,000 14,400 130,200 66502 PG&E Gas 688 688 688 825 2,788 4,200 3,788 2,788 1,786 1,100 894 825 21,058 66503 CalWater 3,500 7,250 5,000 5,000 3,750 3,500 3,500 4,500 4,250 4,250 5,000 4,750 54,250 66504 Other Utilities - - - - - - - - - - - - - Total 66500 Utilities 15,588 28,338 20,688 17,825 12,538 13,100 12,688 15,088 16,236 15,550 17,894 19,975 205,508 66700 Client Services Expenses - 66701 Transportation Service 420 420 420 420 420 420 420 420 420 420 420 420 5,040 66702 Linen 567 1,197 1,008 1,008 861 1,134 609 693 672 714 861 924 10,248 66703 Guest Water Service 500 500 500 500 500 500 500 500 500 500 500 500 6,000 66704 Pens/Pads/Candy - - 250 - - 250 - - 250 - - 250 1,000 66705 Other Clients Services - - 250 - - 250 - - 250 - - 250 1,000 Total 66700 Client Services Expenses 1,487 2,117 2,428 1,928 1,781 2,554 1,529 1,613 2,092 1,634 1,781 2,344 23,288 66810 Travel Expense - OPS - 66811 Airfare - OPS - - 1,000 - - 1,000 - - 1,000 - - 1,000 4,000 66812 Lodging - OPS - - 2,000 - - 2,000 - - 2,000 - - 2,000 8,000 66813 Meals - OPS - - 375 - - 375 - - 375 - - 375 1,500 66814 Transportation - OPS - - 550 - - 550 - - 550 - - 550 2,200 66815 Other Travel Expenses - OPS - - - - - - - - - - - - - Total 66810 Travel Expense - OPS - - 3,925 - - 3,925 - - 3,925 - - 3,925 15,700 66820 Employee Relations - OPS 750 600 200 750 - - 750 - 300 750 600 - 4,700 Total 66000 Operation & Maintenance Expenses 69,052 88,175 80,270 79,407 56,976 65,381 63,194 67,091 73,269 78,955 65,154 76,169 863,093 Proposed Budget Page 5 of 7 326 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 67000 Sales & Marketing Expenses 67110 Marketing 67111 Creative/Brochure Production 420 420 420 420 420 420 420 420 420 420 420 420 5,040 67112 Website 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,950 2,880 2,880 2,880 2,880 34,630 67113 Media Planning/Buying 6,599 6,599 21,284 18,709 7,099 7,099 7,099 7,099 7,099 13,309 7,099 7,099 116,193 67114 Printing - - 150 - - 150 - - 150 - - 150 600 67115 Other Marketing 420 420 420 420 420 420 420 420 420 420 420 420 5,040 Total 67110 Marketing 10,319 10,319 25,154 22,429 10,819 10,969 10,819 10,889 10,969 17,029 10,819 10,969 161,503 67310 Client Entertainment 2,950 10,750 1,700 2,200 200 8,200 400 700 200 5,800 9,200 2,200 44,500 67320 Client Gifts - - - 2,500 - 1,500 - - - 300 - - 4,300 67410 Tradeshows 67411 Booth Rental & Registration - - - 5,100 - 3,100 - 2,800 - 2,000 - - 13,000 67412 Shipping - 200 - 200 - - - 200 - - - - 600 67413 Equipment - - - - - 3,500 - - - - - - 3,500 67414 Sales Decorations - - - 250 - - - 300 - 150 - - 700 Total 67410 Tradeshows - 200 - 5,550 - 6,600 - 3,300 - 2,150 - - 17,800 67510 Industry Event Registration 300 300 300 300 300 1,300 300 300 300 1,100 300 300 5,400 67610 Dues & Membership 1,034 315 820 300 220 5,175 - - 175 630 - 175 8,844 67620 Group Rental Incentive 67621 Room Rental/Equip - - - - - - - - - - - - - 67622 Other Group Rental Incentive - - - - 1,000 - - - 1,000 - - - 2,000 Total 67620 Group Rental Incentive - - - - 1,000 - - - 1,000 - - - 2,000 67810 Travel Expense - Sales 67811 Airfare - Sales - - 350 2,100 - - - 1,000 - 350 - - 3,800 67812 Lodging - Sales - - 2,400 6,800 - 1,500 300 1,600 - 800 300 300 14,000 67813 Meals - Sales - - 380 1,200 - 300 150 380 - 300 150 150 3,010 67814 Transportation - Sales 200 200 550 1,000 200 1,200 450 1,050 800 400 450 450 6,950 67815 Other Travel Expenses - Sales - 100 100 200 200 200 - 50 100 100 200 - 1,250 Total 67810 Travel Expense - Sales 200 300 3,780 11,300 400 3,200 900 4,080 900 1,950 1,100 900 29,010 67820 Employee Relations - Sales 800 - 200 300 - - 300 - 300 300 - - 2,200 67912 Community - Sales - 200 1,700 200 1,700 200 1,500 200 200 - 1,700 200 7,800 Total 67000 Sales & Marketing Expenses 15,603 22,384 33,654 45,079 14,639 37,144 14,219 19,469 14,044 29,259 23,119 14,744 283,357 Total 60000 Operating Expenses 259,281 300,252 302,783 339,620 258,040 301,842 307,990 275,150 275,410 296,716 280,332 283,769 3,481,185 Total Expenses 259,281 300,252 302,783 339,620 258,040 301,842 307,990 275,150 275,410 296,716 280,332 283,769 3,481,185 Net Operating Income (146,090) (73,555) (122,301) (159,138) (118,653) (144,183) (202,188) (137,941) (144,241) (165,299) (121,838) (126,306) (1,661,733) Proposed Budget Page 6 of 7 327 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total Other Income 81000 Other Non-Operating Income 81110 Conference Center Tax 176,307 176,307 168,147 173,752 163,202 155,866 150,838 147,706 173,752 168,147 173,752 168,147 1,995,923 81122 Interest from LAIF - - 25,000 - - 25,000 - - 25,000 - - 25,000 100,000 81130 Credit Card Discount & Rebate 550 550 550 550 550 550 550 550 550 550 550 550 6,600 81135 Other Income - MG - - - - - - - - - - - - - Total 81000 Other Non-Operating Income 176,857 176,857 193,697 174,302 163,752 181,416 151,388 148,256 199,302 168,697 174,302 193,697 2,102,523 Total Other Income 176,857 176,857 193,697 174,302 163,752 181,416 151,388 148,256 199,302 168,697 174,302 193,697 2,102,523 Other Expenses 68100 Professional Services - 68110 Legal 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400 68120 Staff Training & Education - - 2,250 - - 2,250 - - 2,250 - - 2,250 9,000 68140 Audit Services - - - - - 18,000 - - - - - - 18,000 68150 City Finance Services 834 834 834 834 834 834 834 834 834 834 834 834 10,008 68180 Other Professional Services - - - - - - 100 - - - - - 100 Total 68100 Professional Services 3,034 3,034 5,284 3,034 3,034 23,284 3,134 3,034 5,284 3,034 3,034 5,284 63,508 86000 Depreciation Expenses - 86001 Depr - Building 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 55,896 86010 Depr - Building Improvement 5,639 5,639 5,889 5,889 6,318 6,318 6,318 6,318 6,318 6,318 7,818 7,818 76,600 86015 Depr - Furniture & Fixtures 1,901 1,901 1,901 1,901 3,560 3,560 3,560 4,060 4,060 4,060 4,446 4,446 39,356 86020 Depr - Food Service Equipment 772 915 1,248 1,248 1,248 1,384 1,384 1,384 1,384 1,384 1,526 1,526 15,403 86025 Depr - Kitchen Table/ Flatware 259 259 259 259 259 259 259 259 259 259 259 259 3,108 86030 Depr - Office Equipment - - - - - - - - - - - - - 86035 Depr - PC/ Tablet/ Mobile 304 304 304 304 304 304 304 - - - - - 2,128 86040 Depr - Telecommunication 2,763 2,763 2,763 2,763 2,763 1,279 1,279 1,279 2,317 2,317 2,317 2,317 26,920 86045 Depr - Maintenance Equipment - - - - 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 13,336 86050 Depr - Machinery & Vehicles - - - - - - - - - - - - - 86055 Depr - Improvement of Site 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 18,720 Total 86000 Depreciation Expenses 17,856 17,999 18,582 18,582 22,337 20,989 20,989 21,185 22,223 22,223 24,251 24,251 251,467 Total Other Expenses 20,890 21,033 23,866 21,616 25,371 44,273 24,123 24,219 27,507 25,257 27,285 29,535 314,975 Net Other Income 155,967 155,824 169,831 152,686 138,381 137,143 127,265 124,037 171,795 143,440 147,017 164,162 1,787,548 Net Income 9,877 82,269 47,530 (6,452) 19,728 (7,040) (74,923) (13,904) 27,554 (21,859) 25,179 37,856 125,815 Net Income Net Depreciation 27,733 100,268 66,112 12,130 42,065 13,949 (53,934) 7,281 49,777 364 49,430 62,107 377,282 Proposed Budget Page 7 of 7 328 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Capital Improvement Budget FY 2025-2026 Project #Project Name Year GL Project Status Est.Date Start Est. Date Completed Budget $$ Actual Cost Over Under 2526-01 New Meat Slicer 7 15020 - Food Service Equipment Q1 8/1/2025 12,000$ 2526-02 Water Fountain Station Replacement (2 Units)5 15010 - Building Improvements Q1 9/1/2025 15,000$ 2526-03 Replace Broken Executive Chairs (10) 5 15015 - Furniture & Fixture Q4 5/1/2026 6,000$ 2526-04 Air Wall Refurbishment - Hardware 5 15045 - Maintenance Equipment Q2 11/1/2025 100,000$ 2526-05 Six (6') foot tables (20 Units) 7 15015 - Furniture & Fixture Q4 5/1/2026 10,000$ 2526-06 Purchase New Table Skirts (106 Units)10 15025 - Kitchen Tableware Q4 5/1/2026 20,000$ 2526-07 Dishwasher Replacement 10 15020 - Food Service Equipment Q1 9/1/2025 40,000$ 2526-08 Upgrade Front Office Area 10 15015 - Furniture & Fixture Q3 2/1/2026 60,000$ 2526-09 HVAC Unit #25 OPR 10 15010 - Building Improvements Q4 5/1/2026 60,000$ 2526-10 Lobby Sunshades 5 15015 - Furniture & Fixture Q1 11/1/2025 80,000$ 403,000.00$ -$ -$ -$ Capital Improvement Budget Page 1 of 1329 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-674 Agenda Date:6/25/2025 Version:1 Item #:9a. Resolution approving the South San Francisco Conference Center Authority Fiscal Year 2025-2026 Budget. WHEREAS,the South San Francisco Municipal Code §2.78.100 requires that the South San Francisco Conference Center Authority ("Conference Center Authority")budget be approved by the City Council of South San Francisco (“City Council”); and WHEREAS,on April 21,2025,the Conference Center Authority conducted a public meeting and reviewed the Fiscal Year (“FY”) 2025-26 Budget ("Budget"); and WHEREAS,the Conference Center Authority found that the FY 2025-26 Budget represented the appropriate level of expenditures for Fiscal Year 2025-26 and recommended that the City Council approve the proposed Budget; and WHEREAS,the City Council concurs with the Conference Center Authority's recommendation. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco as follows: 1.The Conference Center Authority Fiscal Year (FY)2025-26 Budget,attached hereto as Exhibit A, showing a total revenue projection of $5,558,813 and a total expenditure request of $3,544,693 is hereby approved. 2.The Conference Center Authority FY 2025-26 Capital Improvement Budget of $403,000 included within the Budget is hereby approved. 3.Each budget category listed in South San Francisco Municipal Code §2.78.106 is funded to the limits specified in the Budget. 4.The funds collected pursuant to South San Francisco Municipal Code §4.20.035 are hereby appropriated to fund the Conference Center Authority Budget in accordance with the Budget. 5.The City Manager and the Director of Finance are hereby directed and authorized to make the specified funds available to the Conference Center Authority. 6.Copies of the Conference Center Authority Budget shall be made available for public review and inspection in the Offices of the City Clerk and the Administrative Offices of the Conference Center. ***** City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™330 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget Summary Revenue Projections - All Sources Revenue FY 25-26 FY 24-25 FY 24-25 Center Proposed Budget Year End Approved Budget Conference Center Operations 3,456,290$ 3,256,169$ 3,422,588$ Conference Center Tax 1,995,923$ 1,984,492$ 1,995,007$ Interest Income & Other 106,600$ 171,743$ 106,600$ Total 5,558,813$ 5,412,404$ 5,524,195$ Expenditure Projections - All Sources Revenue FY 25-26 FY 24-25 FY 24-25 Center Proposed Budget Year End Approved Budget Conference Center Operations 2,937,935$ 2,718,231$ 2,819,444$ Property Leases/Taxes 543,250$ 526,230$ 521,800$ Conference Center Other Non-Operations 63,508$ 57,548$ 59,008$ Total 3,544,693$ 3,302,009$ 3,400,252$ Income Projections - All Sources Revenue FY 25-26 FY 24-25 FY 24-25 Center Proposed Budget Year End Approved Budget Gross Profit 377,282$ 581,411$ 416,896$ Depreciation 251,467$ 240,410$ 329,077$ Net Income 125,815$ 341,001$ 87,819$ Unrestricted Fund Balance Ending Unrestricted Fund Balance as of 6/30/2024 3,997,654$ 250,000$ FY24-25 Interest Income 148,733$ Projected Ending Unrestricted Fund Balance as of 6/30/2025 4,396,387$ 250,000$ FY25-26 Interest Income 100,000$ Projected Ending Unrestricted Fund Balance as of 6/30/2026 4,646,387$ FY24-25 Deposit / (Withdrawal) FY25-26 Deposit / (Withdrawal) Page 1 of 1331 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Year-Over-Year Expenditure FY 25-26 FY 24-25 FY 24-25 Proposed Budget Year End Approved Budget Administrative & General Salaries & Benefits 1,607,365 1,518,941 1,557,911 General Insurance 41,400 40,659 41,400 Bank Charges / Credit Card Fees 85,040 75,680 93,461 Property/Taxes/Leases 543,250 526,230 521,800 Debt Services - - - Office Expenses 13,980 12,817 14,080 Other Administrative & General 43,700 37,372 37,370 Sub-Total:2,334,735 2,211,699 2,266,022 OPS/Maintenance Services & Supplies Custodial Services 113,454 94,665 109,010 Event Labor 172,409 153,484 164,554 Landscaping 12,200 10,375 11,000 Security Labor 6,000 2,766 6,000 Safety & Security 26,170 20,415 17,544 HVAC Services 25,800 16,448 25,800 Kitchen Services 19,000 20,617 20,800 Maintenance Services & Equipments 40,900 58,711 40,900 IT & Communications 197,964 179,576 182,874 Utilities 205,508 181,624 189,191 Client Services Expenses 23,288 24,822 20,973 Other Operation 20,400 6,960 3,600 Sub-Total:863,093 770,464 792,246 Sales & Marketing Services Marketing 161,503 149,818 154,602 Client Entertainment 44,500 34,724 51,400 Client Gifts 4,300 18,765 4,900 Tradeshows 17,800 14,419 21,200 Industry Event Registration 5,400 1,517 5,400 Dues/Memberships 8,844 8,778 4,054 Group Incentive Rentals 2,000 2,500 4,000 Travel Expenses 29,010 19,435 24,900 Other Sales & Marketing 10,000 12,341 12,520 Sub-Total:283,357 262,298 282,976 Professional Services Legal 26,400 21,970 26,400 Staff Training & Education 9,000 4,513 5,000 Audit Service 18,000 17,000 17,500 City Finance Service 10,008 10,003 10,008 Other Professional Services 100 4,062 100 Sub-Total:63,508 57,548 59,008 Depreciation & Others Depreciation 251,467 240,410 329,077 Sub-Total:251,467 240,410 329,077 TOTAL 3,796,160 3,542,419 3,729,329 Total without Depreciation 3,544,693 3,302,009 3,400,252 Page 1 of 1332 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total Income 41000 Income 41100 Room Rental Income 70,000 145,000 100,000 100,000 75,000 70,000 70,000 90,000 85,000 85,000 100,000 95,000 1,085,000 41200 Event Services Income - - - - - - - - - - - - - 41201 Event Services - Additional Services 17,000 22,200 26,000 26,000 12,500 9,500 2,200 15,000 12,200 9,600 14,000 10,000 176,200 41202 Event Services - Additional Services Labor Fee - - - - - - - - - - - - - 41203 Event Services - Equipment Rental - - - - - - - - - - - - - 41204 Event Services - Equipment Rental Labor - - - - - - - - - - - - - 41205 Event Services Other - - - - - - - - - - - - - 41211 Event Services Security 4,200 8,700 6,000 6,000 4,500 4,200 4,200 5,400 5,100 5,100 6,000 5,700 65,100 41212 Event Services Insurance 1,120 2,320 1,600 1,600 1,200 1,120 1,120 1,440 1,360 1,360 1,600 1,520 17,360 Total 41200 Event Services Income 22,320 33,220 33,600 33,600 18,200 14,820 7,520 21,840 18,660 16,060 21,600 17,220 258,660 41300 Audio Visual Income - 41301 Audio Visual Equipment Rental 11,900 24,650 17,000 17,000 12,750 11,900 11,900 15,300 14,450 14,450 17,000 16,150 184,450 41302 Audio Visual Service Charge 2,975 6,163 4,250 4,250 3,188 2,975 2,975 3,825 3,613 3,613 4,250 4,038 46,115 41303 Audio Visual Labor 8,330 17,255 11,900 11,900 8,925 8,330 8,330 10,710 10,115 10,115 11,900 11,305 129,115 41304 Audio Visual Merchandise - - - - - - - - - - - - - Total 41300 Audio Visual Income 23,205 48,068 33,150 33,150 24,863 23,205 23,205 29,835 28,178 28,178 33,150 31,493 359,680 41400 Food & Beverage Income - 41401 Food & Beverage Charge 65,000 140,000 140,000 140,000 130,000 200,000 75,000 75,000 75,000 85,000 105,000 125,000 1,355,000 41402 Food & Beverage Service Charge 16,250 35,000 35,000 35,000 32,500 50,000 18,750 18,750 18,750 21,250 26,250 31,250 338,750 41403 Food & Beverage Labor Fee 1,300 2,800 2,800 2,800 2,600 4,000 1,500 1,500 1,500 1,700 2,100 2,500 27,100 41404 Food & Beverage Cash Bar 1,300 2,800 2,800 2,800 2,600 4,000 1,500 1,500 6,500 1,700 2,100 2,500 32,100 Total 41400 Food & Beverage Income 83,850 180,600 180,600 180,600 167,700 258,000 96,750 96,750 101,750 109,650 135,450 161,250 1,752,950 41500 Other Income - 41501 Finance Charge - - - - - - - - - - - - - 41502 Cancellation - - - - - - - - - - - - - Total 41500 Other Income - - - - - - - - - - - - - Total 41000 Income 199,375 406,888 347,350 347,350 285,763 366,025 197,475 238,425 233,588 238,888 290,200 304,963 3,456,290 Total Income 199,375 406,888 347,350 347,350 285,763 366,025 197,475 238,425 233,588 238,888 290,200 304,963 3,456,290 Cost of Goods Sold 42000 Cost of Goods Sold - 42100 COGS Room Rental - - - - - - - - - - - - - 42200 COGS Event Services - - - - - - - - - - - - - 42201 COGS Event Services - Additional Services 4,250 5,550 6,500 6,500 3,125 2,375 550 3,750 3,050 2,400 3,500 2,500 44,050 42202 COGS Event Services - Additional Service Labor Fee - - - - - - - - - - - - - 42203 COGS Event Services - Equipment Rental - - - - - - - - - - - - - 42204 COGS Event Services - Equipment Rental Labor - - - - - - - - - - - - - 42205 COGS Event Services Other - - - - - - - - - - - - - 42211 COGS Event Services Security 3,990 8,265 5,700 5,700 4,275 3,990 3,990 5,130 4,845 4,845 5,700 5,415 61,845 42212 COGS Event Services Insurance 896 1,856 1,280 1,280 960 896 896 1,152 1,088 1,088 1,280 1,216 13,888 Total 42200 COGS Event Services 9,136 15,671 13,480 13,480 8,360 7,261 5,436 10,032 8,983 8,333 10,480 9,131 119,783 42300 COGS Audio Visual - 42301 COGS Audio Visual Equipment Rental 7,140 14,790 10,200 10,200 7,650 7,140 7,140 9,180 8,670 8,670 10,200 9,690 110,670 42302 COGS Audio Visual Service Charge 2,678 5,547 3,825 3,825 2,869 2,678 2,678 3,443 3,252 3,252 3,825 3,634 41,506 42303 COGS Audio Visual Labor 7,497 15,530 10,710 10,710 8,033 7,497 7,497 9,639 9,104 9,104 10,710 10,175 116,206 42304 COGS Audio Visual Merchandise 0 0 0 0 0 0 0 0 0 0 0 0 - Total 42300 COGS Audio Visual 17,315 35,867 24,735 24,735 18,552 17,315 17,315 22,262 21,026 21,026 24,735 23,499 268,382 42400 COGS Food & Beverage - 42401 COGS Food & Beverage Charge 45,338 97,650 97,650 97,650 90,675 139,500 52,313 52,313 52,313 59,288 73,238 87,188 945,116 42402 COGS Food & Beverage Service Charge 12,188 26,250 26,250 26,250 24,375 37,500 14,063 14,063 14,063 15,938 19,688 23,438 254,066 42403 COGS Food & Beverage Labor Fee 1,300 2,800 2,800 2,800 2,600 4,000 1,500 1,500 1,500 1,700 2,100 2,500 27,100 42404 COGS Food & Beverage Cash Bar 907 1,953 1,953 1,953 1,814 2,790 1,046 1,046 4,534 1,186 1,465 1,744 22,391 Total 42400 COGS Food & Beverage 59,733 128,653 128,653 128,653 119,464 183,790 68,922 68,922 72,410 78,112 96,491 114,870 1,248,673 Proposed Budget Page 1 of 7 333 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 42500 COGS Other Income - - - - - - - - - - - - - Total 42000 Cost of Goods Sold 86,184 180,191 166,868 166,868 146,376 208,366 91,673 101,216 102,419 107,471 131,706 147,500 1,636,838 Total Cost of Goods Sold 86,184 180,191 166,868 166,868 146,376 208,366 91,673 101,216 102,419 107,471 131,706 147,500 1,636,838 Gross Profit 113,191 226,697 180,482 180,482 139,387 157,659 105,802 137,209 131,169 131,417 158,494 157,463 1,819,452 Expenses 60000 Operating Expenses - 65000 Administrative & General Expenses - 65100 Salary & Benefit - 65101 Salaries 74,133 87,232 87,732 87,732 87,732 87,732 89,785 88,631 88,131 87,631 87,631 87,010 1,041,112 65102 Vacation Pay 5,333 5,333 5,333 5,333 5,333 5,333 5,405 5,405 5,405 5,405 5,405 5,405 64,428 65103 PTO Pay 516 - - - - - 18,314 - - - - - 18,830 65104 Sick Pay 2,429 2,429 2,429 2,429 2,429 2,429 2,451 2,451 2,451 2,451 2,451 2,182 29,011 65105 Payroll Taxes 7,146 7,146 7,146 7,146 7,146 7,146 7,182 7,217 7,217 7,217 7,217 7,217 86,143 65107 Health Benefit 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 18,915 226,980 65108 Retirement Benefit 7,938 7,938 7,938 7,938 7,938 7,938 7,978 8,018 8,018 8,018 8,018 8,018 95,696 65110 Workers Comp. Insurance 708 708 708 708 708 708 711 714 714 714 714 714 8,529 65111 WI & LTD Benefits 977 977 977 977 977 977 977 977 977 977 977 977 11,724 65112 Retiree's Health Benefits 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 65113 Other Benefits 276 276 276 276 276 276 276 276 276 276 276 276 3,312 65114 Payroll Services 300 300 300 300 300 300 300 300 300 300 300 300 3,600 65115 Recruitment - - - - - - - - - - - - - Total 65100 Salary & Benefit 120,171 132,754 133,254 133,254 133,254 133,254 153,794 134,404 133,904 133,404 133,404 132,514 1,607,365 65200 General Insurance - 65201 Property Insurance 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 1,550 18,600 65202 Liability Insurance 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 22,800 65203 Other Insurance - - - - - - - - - - - - - Total 65200 General Insurance 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 3,450 41,400 65300 Bank Charges - 65301 Bank Fee 30 30 30 30 30 30 30 30 30 30 30 30 360 65302 Credit Card Fee 4,885 9,969 8,510 8,510 7,001 8,968 4,838 5,841 5,723 5,853 7,110 7,472 84,680 Total 65300 Bank Charges 4,915 9,999 8,540 8,540 7,031 8,998 4,868 5,871 5,753 5,883 7,140 7,502 85,040 65400 Property/ Taxes/ Lease - 65401 Property Lease 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 420,000 65402 Parking Lot Lease 5,500 5,500 5,500 5,500 5,500 5,500 6,875 6,875 6,875 6,875 6,875 6,875 74,250 65403 Property Tax - - - 23,000 - - 23,000 - - - - - 46,000 65404 Possessory Tax 3,000 - - - - - - - - - - - 3,000 Total 65400 Property/ Taxes/ Lease 43,500 40,500 40,500 63,500 40,500 40,500 64,875 41,875 41,875 41,875 41,875 41,875 543,250 65500 Debt Service - 65501 Debt Service Payment - - - - - - - - - - - - - 65502 Debt Service Offset - - - - - - - - - - - - - 65503 Bad Debt - - - - - - - - - - - - - Total 65500 Debt Service - - - - - - - - - - - - - Proposed Budget Page 2 of 7 334 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 65600 Office Expenses - 65601 Equipment Purchase 300 - - 300 - - 1,300 - - 300 - - 2,200 65602 Furniture Purchase 300 - - 300 - - 300 - - 300 - - 1,200 65603 Computers & Electronics 300 - - 300 - - 300 - - 300 - - 1,200 65604 Office Supplies 200 200 200 200 200 200 200 200 200 200 200 200 2,400 65606 Printing & Stationary 100 100 100 100 100 100 100 100 100 100 100 100 1,200 65610 Copier - - - - - - - - - - - - - 65611 Copier Lease 440 440 440 440 440 440 440 440 440 440 440 440 5,280 65612 Copier Usage - - 50 - - 50 - - 50 - - 50 200 Total 65610 Copier 440 440 490 440 440 490 440 440 490 440 440 490 5,480 65620 Postage & Shipping - 65621 Postage Machine - - - - - - - - - - - - - 65622 Postage Usage & Others - - 50 - - 50 - - 50 - - 50 200 65623 UPS - - - - - - - - - - - - - 65624 FedEx - - 25 - - 25 - - 25 - - 25 100 Total 65620 Postage & Shipping - - 75 - - 75 - - 75 - - 75 300 Total 65600 Office Expenses 1,640 740 865 1,640 740 865 2,640 740 865 1,640 740 865 13,980 65670 Donation - - - 2,500 - - - - - - - - 2,500 65810 Travel Expense - Admin - 65811 Airfare - Admin - - - - - - - - - - - 600 600 65812 Lodging - Admin - - - - - - - - - - - 1,000 1,000 65813 Meals - Admin - - - - - - - - - - - 400 400 65814 Transportation - Admin 50 50 100 50 50 100 50 50 100 50 50 300 1,000 65815 Other Travel Expenses - Admin - - - - - - - - - - - 200 200 Total 65810 Travel Expense - Admin 50 50 100 50 50 100 50 50 100 50 50 2,500 3,200 65820 Employee Relation - Admin 300 300 600 300 800 3,300 300 300 600 300 4,800 1,300 13,200 65910 Public Relations - - - - - - - - - - - - - 65911 Authority Board - 1,300 - 1,300 - 7,300 - 1,300 - 1,300 - 1,300 13,800 65912 Community - Admin - - 750 - - 750 - - 750 - - 750 3,000 65913 Meeting 600 600 800 600 600 800 600 600 800 600 600 800 8,000 Total 65910 Public Relations 600 1,900 1,550 1,900 600 8,850 600 1,900 1,550 1,900 600 2,850 24,800 Total 65000 Administrative & General Expenses 174,626 189,693 188,859 215,134 186,425 199,317 230,577 188,590 188,097 188,502 192,059 192,856 2,334,735 66000 Operation & Maintenance Expenses - 66100 Contract Labor & Service - 66110 Custodial Expenses - 66111 Regular Custodial Hours 6,300 13,050 9,000 9,000 6,750 6,300 6,300 8,100 7,650 7,650 9,000 8,550 97,650 66112 Other Custodial Services - - - - - - - - - - - - - 66113 Custodial Supplies 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 1,150 13,800 66114 Custodial Equipment 167 167 167 167 167 167 167 167 167 167 167 167 2,004 Total 66110 Custodial Expenses 7,617 14,367 10,317 10,317 8,067 7,617 7,617 9,417 8,967 8,967 10,317 9,867 113,454 66120 Event Labor - 66121 Setup/Teardown Service 4,823 9,991 6,890 6,890 5,168 4,823 4,823 6,201 5,857 5,857 6,890 6,546 74,759 66122 Other Event Labor 6,300 13,050 9,000 9,000 6,750 6,300 6,300 8,100 7,650 7,650 9,000 8,550 97,650 Total 66120 Event Labor 11,123 23,041 15,890 15,890 11,918 11,123 11,123 14,301 13,507 13,507 15,890 15,096 172,409 66130 Landscaping Expenses - 66131 Landscaping Exterior Service 650 650 950 650 650 950 650 650 950 650 650 950 9,000 66132 Landscaping Interior Service 100 100 100 100 100 100 100 100 100 100 100 100 1,200 66133 Landscaping Tools & Supplies - - 500 - - 500 - - 500 - - 500 2,000 Total 66130 Landscaping Expenses 750 750 1,550 750 750 1,550 750 750 1,550 750 750 1,550 12,200 Proposed Budget Page 3 of 7 335 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 66140 Security Labor - 66141 Security Regular Hours 500 500 500 500 500 500 500 500 500 500 500 500 6,000 66142 Security for In-House Events - - - - - - - - - - - - - 66143 Police for In-House Events - - - - - - - - - - - - - Total 66140 Security Labor 500 500 500 500 500 500 500 500 500 500 500 500 6,000 66210 Safety & Security - 66211 Alarm Monitoring 185 185 185 185 185 185 185 185 185 185 185 185 2,220 66212 Fire System Test & Inspection 3,000 650 - - - - - 8,000 - - - - 11,650 66213 SSFFD Inspection - - 900 - - - - - - - - - 900 66214 First Aid Kit PM Service 700 700 700 700 700 700 700 700 700 700 700 700 8,400 66216 Emergency Training - - - - - - - - 2,000 - - - 2,000 66217 Other Safety Service - - - - - - - - - - - - - 66218 Other Safety Eqt. & Supplies - - 250 - - 250 - - 250 - - 250 1,000 Total 66210 Safety & Security 3,885 1,535 2,035 885 885 1,135 885 8,885 3,135 885 885 1,135 26,170 Total 66100 Contract Labor & Service 23,875 40,193 30,292 28,342 22,120 21,925 20,875 33,853 27,659 24,609 28,342 28,148 330,233 66220 HVAC - 66221 HVAC PM Service 1,450 - - 3,850 - - 1,450 - - 3,850 - - 10,600 66222 HVAC Repair Service 2,000 - - 2,000 - - 2,000 - - 2,000 - - 8,000 66223 HVAC Filters - - 1,800 - - 1,800 - - 1,800 - - 1,800 7,200 66224 HVAC Other Supplies - - - - - - - - - - - - - Total 66220 HVAC 3,450 - 1,800 5,850 - 1,800 3,450 - 1,800 5,850 - 1,800 25,800 66230 Kitchen - 66231 Kitchen PM Service - - 400 - - 400 - - 400 - - 400 1,600 66232 Kitchen Eqt. Service - - 750 - - 750 - - 750 - - 750 3,000 66233 Kitchen Refrigeration PM - - 800 - - 800 - - 800 - - 800 3,200 66234 Kitchen Refrigeration Service - - 500 - - 500 - - 500 - - 500 2,000 66235 Kitchen Grease Trap - - 1,200 - - - - - 1,200 - - - 2,400 66236 Kitchen Hydro-Jet - - - 900 - - - - - 900 - - 1,800 66237 Other Kitchen Expenses - - 750 - - 2,750 - - 750 - - 750 5,000 Total 66230 Kitchen - - 4,400 900 - 5,200 - - 4,400 900 - 3,200 19,000 66300 Maintenance Services & Equipments - 66301 Airwall Maintenance & Repairs 750 - - 750 - - 750 - - 750 - - 3,000 66302 Pest Control 350 350 350 350 350 350 350 350 350 350 350 350 4,200 66303 General Electrical 1,000 - - 1,000 - - 1,000 - - 1,000 - - 4,000 66304 General Plumbing 1,000 - - 1,000 - - 1,000 - - 1,000 - - 4,000 66305 Painting & Wall Repair 250 - - 250 - - 250 - - 250 - - 1,000 66306 Carpet & Flooring 150 - - 150 - - 150 - - 150 - - 600 66307 Asphalt and Masonry 125 - - 125 - - 125 - - 125 - - 500 . 66308 General Carpentry 350 350 350 350 350 350 350 350 350 350 350 350 4,200 . 66309 Welding & Sheet Metal - - - - - - - - - - - - - 66311 E-Waste Disposal 200 - - 200 - - 200 - - 200 - - 800 . 66312 Other Interior Service 625 - - 625 - - 625 - - 625 - - 2,500 . 66313 Other Exterior Service 625 - - 625 - - 625 - - 625 - - 2,500 66314 Decorations - - - - 4,000 - - - - - - - 4,000 66315 Parking & Towing 100 - - 100 - - 100 - - 100 - - 400 66316 Keys & Locks 150 - - 150 - - 150 - - 150 - - 600 66317 Furniture & Fixtures 150 - - 150 - - 150 - - 150 - - 600 . 66318 Other Equipments 500 - - 500 - - 500 - - 500 - - 2,000 66321 Lighting & Batteries 1,000 - - 1,000 - - 1,000 - - 1,000 - - 4,000 66322 Tools 200 - - 200 - - 200 - - 200 - - 800 66323 Workwear 300 - - 300 - - 300 - - 300 - - 1,200 Total 66300 Maintenance Services & Equipments 7,825 700 700 7,825 4,700 700 7,825 700 700 7,825 700 700 40,900 Proposed Budget Page 4 of 7 336 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 66400 IT & Communications - 66401 IP Phone System Management 660 660 660 660 660 660 660 660 660 660 660 660 7,920 66402 Wireless Cell Phones 547 547 547 547 547 547 547 547 547 547 547 547 6,564 66405 Fiber Optic Line 1 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 31,680 66406 Fiber Optic Line 2 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,640 31,680 66407 Other Communications 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 66408 WiLine Fiber Optic 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400 66409 IT Services 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 42,000 66411 Software/Systems Management 2,890 3,040 2,650 2,800 2,650 2,990 2,890 2,650 2,970 8,650 2,650 2,890 39,720 Total 66400 IT & Communications 16,077 16,227 15,837 15,987 15,837 16,177 16,077 15,837 16,157 21,837 15,837 16,077 197,964 66500 Utilities - 66501 PG&E Electricity 11,400 20,400 15,000 12,000 6,000 5,400 5,400 7,800 10,200 10,200 12,000 14,400 130,200 66502 PG&E Gas 688 688 688 825 2,788 4,200 3,788 2,788 1,786 1,100 894 825 21,058 66503 CalWater 3,500 7,250 5,000 5,000 3,750 3,500 3,500 4,500 4,250 4,250 5,000 4,750 54,250 66504 Other Utilities - - - - - - - - - - - - - Total 66500 Utilities 15,588 28,338 20,688 17,825 12,538 13,100 12,688 15,088 16,236 15,550 17,894 19,975 205,508 66700 Client Services Expenses - 66701 Transportation Service 420 420 420 420 420 420 420 420 420 420 420 420 5,040 66702 Linen 567 1,197 1,008 1,008 861 1,134 609 693 672 714 861 924 10,248 66703 Guest Water Service 500 500 500 500 500 500 500 500 500 500 500 500 6,000 66704 Pens/Pads/Candy - - 250 - - 250 - - 250 - - 250 1,000 66705 Other Clients Services - - 250 - - 250 - - 250 - - 250 1,000 Total 66700 Client Services Expenses 1,487 2,117 2,428 1,928 1,781 2,554 1,529 1,613 2,092 1,634 1,781 2,344 23,288 66810 Travel Expense - OPS - 66811 Airfare - OPS - - 1,000 - - 1,000 - - 1,000 - - 1,000 4,000 66812 Lodging - OPS - - 2,000 - - 2,000 - - 2,000 - - 2,000 8,000 66813 Meals - OPS - - 375 - - 375 - - 375 - - 375 1,500 66814 Transportation - OPS - - 550 - - 550 - - 550 - - 550 2,200 66815 Other Travel Expenses - OPS - - - - - - - - - - - - - Total 66810 Travel Expense - OPS - - 3,925 - - 3,925 - - 3,925 - - 3,925 15,700 66820 Employee Relations - OPS 750 600 200 750 - - 750 - 300 750 600 - 4,700 Total 66000 Operation & Maintenance Expenses 69,052 88,175 80,270 79,407 56,976 65,381 63,194 67,091 73,269 78,955 65,154 76,169 863,093 Proposed Budget Page 5 of 7 337 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total 67000 Sales & Marketing Expenses 67110 Marketing 67111 Creative/Brochure Production 420 420 420 420 420 420 420 420 420 420 420 420 5,040 67112 Website 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,950 2,880 2,880 2,880 2,880 34,630 67113 Media Planning/Buying 6,599 6,599 21,284 18,709 7,099 7,099 7,099 7,099 7,099 13,309 7,099 7,099 116,193 67114 Printing - - 150 - - 150 - - 150 - - 150 600 67115 Other Marketing 420 420 420 420 420 420 420 420 420 420 420 420 5,040 Total 67110 Marketing 10,319 10,319 25,154 22,429 10,819 10,969 10,819 10,889 10,969 17,029 10,819 10,969 161,503 67310 Client Entertainment 2,950 10,750 1,700 2,200 200 8,200 400 700 200 5,800 9,200 2,200 44,500 67320 Client Gifts - - - 2,500 - 1,500 - - - 300 - - 4,300 67410 Tradeshows 67411 Booth Rental & Registration - - - 5,100 - 3,100 - 2,800 - 2,000 - - 13,000 67412 Shipping - 200 - 200 - - - 200 - - - - 600 67413 Equipment - - - - - 3,500 - - - - - - 3,500 67414 Sales Decorations - - - 250 - - - 300 - 150 - - 700 Total 67410 Tradeshows - 200 - 5,550 - 6,600 - 3,300 - 2,150 - - 17,800 67510 Industry Event Registration 300 300 300 300 300 1,300 300 300 300 1,100 300 300 5,400 67610 Dues & Membership 1,034 315 820 300 220 5,175 - - 175 630 - 175 8,844 67620 Group Rental Incentive 67621 Room Rental/Equip - - - - - - - - - - - - - 67622 Other Group Rental Incentive - - - - 1,000 - - - 1,000 - - - 2,000 Total 67620 Group Rental Incentive - - - - 1,000 - - - 1,000 - - - 2,000 67810 Travel Expense - Sales 67811 Airfare - Sales - - 350 2,100 - - - 1,000 - 350 - - 3,800 67812 Lodging - Sales - - 2,400 6,800 - 1,500 300 1,600 - 800 300 300 14,000 67813 Meals - Sales - - 380 1,200 - 300 150 380 - 300 150 150 3,010 67814 Transportation - Sales 200 200 550 1,000 200 1,200 450 1,050 800 400 450 450 6,950 67815 Other Travel Expenses - Sales - 100 100 200 200 200 - 50 100 100 200 - 1,250 Total 67810 Travel Expense - Sales 200 300 3,780 11,300 400 3,200 900 4,080 900 1,950 1,100 900 29,010 67820 Employee Relations - Sales 800 - 200 300 - - 300 - 300 300 - - 2,200 67912 Community - Sales - 200 1,700 200 1,700 200 1,500 200 200 - 1,700 200 7,800 Total 67000 Sales & Marketing Expenses 15,603 22,384 33,654 45,079 14,639 37,144 14,219 19,469 14,044 29,259 23,119 14,744 283,357 Total 60000 Operating Expenses 259,281 300,252 302,783 339,620 258,040 301,842 307,990 275,150 275,410 296,716 280,332 283,769 3,481,185 Total Expenses 259,281 300,252 302,783 339,620 258,040 301,842 307,990 275,150 275,410 296,716 280,332 283,769 3,481,185 Net Operating Income (146,090) (73,555) (122,301) (159,138) (118,653) (144,183) (202,188) (137,941) (144,241) (165,299) (121,838) (126,306) (1,661,733) Proposed Budget Page 6 of 7 338 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Proposed Budget FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 FY25-26 Ordinary Income/Expense Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Total Other Income 81000 Other Non-Operating Income 81110 Conference Center Tax 176,307 176,307 168,147 173,752 163,202 155,866 150,838 147,706 173,752 168,147 173,752 168,147 1,995,923 81122 Interest from LAIF - - 25,000 - - 25,000 - - 25,000 - - 25,000 100,000 81130 Credit Card Discount & Rebate 550 550 550 550 550 550 550 550 550 550 550 550 6,600 81135 Other Income - MG - - - - - - - - - - - - - Total 81000 Other Non-Operating Income 176,857 176,857 193,697 174,302 163,752 181,416 151,388 148,256 199,302 168,697 174,302 193,697 2,102,523 Total Other Income 176,857 176,857 193,697 174,302 163,752 181,416 151,388 148,256 199,302 168,697 174,302 193,697 2,102,523 Other Expenses 68100 Professional Services - 68110 Legal 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,400 68120 Staff Training & Education - - 2,250 - - 2,250 - - 2,250 - - 2,250 9,000 68140 Audit Services - - - - - 18,000 - - - - - - 18,000 68150 City Finance Services 834 834 834 834 834 834 834 834 834 834 834 834 10,008 68180 Other Professional Services - - - - - - 100 - - - - - 100 Total 68100 Professional Services 3,034 3,034 5,284 3,034 3,034 23,284 3,134 3,034 5,284 3,034 3,034 5,284 63,508 86000 Depreciation Expenses - 86001 Depr - Building 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 4,658 55,896 86010 Depr - Building Improvement 5,639 5,639 5,889 5,889 6,318 6,318 6,318 6,318 6,318 6,318 7,818 7,818 76,600 86015 Depr - Furniture & Fixtures 1,901 1,901 1,901 1,901 3,560 3,560 3,560 4,060 4,060 4,060 4,446 4,446 39,356 86020 Depr - Food Service Equipment 772 915 1,248 1,248 1,248 1,384 1,384 1,384 1,384 1,384 1,526 1,526 15,403 86025 Depr - Kitchen Table/ Flatware 259 259 259 259 259 259 259 259 259 259 259 259 3,108 86030 Depr - Office Equipment - - - - - - - - - - - - - 86035 Depr - PC/ Tablet/ Mobile 304 304 304 304 304 304 304 - - - - - 2,128 86040 Depr - Telecommunication 2,763 2,763 2,763 2,763 2,763 1,279 1,279 1,279 2,317 2,317 2,317 2,317 26,920 86045 Depr - Maintenance Equipment - - - - 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 13,336 86050 Depr - Machinery & Vehicles - - - - - - - - - - - - - 86055 Depr - Improvement of Site 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 18,720 Total 86000 Depreciation Expenses 17,856 17,999 18,582 18,582 22,337 20,989 20,989 21,185 22,223 22,223 24,251 24,251 251,467 Total Other Expenses 20,890 21,033 23,866 21,616 25,371 44,273 24,123 24,219 27,507 25,257 27,285 29,535 314,975 Net Other Income 155,967 155,824 169,831 152,686 138,381 137,143 127,265 124,037 171,795 143,440 147,017 164,162 1,787,548 Net Income 9,877 82,269 47,530 (6,452) 19,728 (7,040) (74,923) (13,904) 27,554 (21,859) 25,179 37,856 125,815 Net Income Net Depreciation 27,733 100,268 66,112 12,130 42,065 13,949 (53,934) 7,281 49,777 364 49,430 62,107 377,282 Proposed Budget Page 7 of 7 339 South San Francisco Conference Center Fiscal Year 2025-2026 Proposed Budget Fiscal Year 2025-2026 Capital Improvement Budget FY 2025-2026 Project #Project Name Year GL Project Status Est.Date Start Est. Date Completed Budget $$ Actual Cost Over Under 2526-01 New Meat Slicer 7 15020 - Food Service Equipment Q1 8/1/2025 12,000$ 2526-02 Water Fountain Station Replacement (2 Units)5 15010 - Building Improvements Q1 9/1/2025 15,000$ 2526-03 Replace Broken Executive Chairs (10) 5 15015 - Furniture & Fixture Q4 5/1/2026 6,000$ 2526-04 Air Wall Refurbishment - Hardware 5 15045 - Maintenance Equipment Q2 11/1/2025 100,000$ 2526-05 Six (6') foot tables (20 Units) 7 15015 - Furniture & Fixture Q4 5/1/2026 10,000$ 2526-06 Purchase New Table Skirts (106 Units)10 15025 - Kitchen Tableware Q4 5/1/2026 20,000$ 2526-07 Dishwasher Replacement 10 15020 - Food Service Equipment Q1 9/1/2025 40,000$ 2526-08 Upgrade Front Office Area 10 15015 - Furniture & Fixture Q3 2/1/2026 60,000$ 2526-09 HVAC Unit #25 OPR 10 15010 - Building Improvements Q4 5/1/2026 60,000$ 2526-10 Lobby Sunshades 5 15015 - Furniture & Fixture Q1 11/1/2025 80,000$ 403,000.00$ -$ -$ -$ Capital Improvement Budget Page 1 of 1340 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-675 Agenda Date:6/25/2025 Version:1 Item #:10. Report regarding resolution authorizing fiscal year 2025-2026 Interim Funding for The South San Francisco Conference Center. (Jim McGuire, South San Francisco Conference Center Executive Director) RECOMMENDATION It is recommended that the City Council approve a resolution authorizing interim spending authority for the first 90 days of Fiscal Year (FY) 2025-2026 for the South San Francisco Conference Center. BACKGROUND/DISCUSSION To enable the continued operation of the Conference Center while the FY 2025-2026 budget is finalized, it is recommended that the City Council approve a resolution authorizing interim spending authority for FY 2025-2026 for ninety (90)days through September 9,2025.The interim funding appropriation is one fourth (1/4)of the approved FY 2025-26 budget.This interim authority will only be necessary if the Conference Center Authority and City Council do not approve the Conference Center Authority FY 2025-2026 budget prior to June 30,2025.The Conference Center Authority met on Monday,April 21, 2025, to consider the FY 2025-2026 budget. City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™341 Staff Report DATE: June 25, 2025 TO: Mayor, Vice Mayor, and Council Members FROM: Jim McGuire, South San Francisco Conference Center Executive Director SUBJECT: A RESOLUTION AUTHORIZING FISCAL YEAR 2025-2026 INTERIM FUNDING FOR THE SOUTH SAN FRANCISCO CONFERENCE CENTER RECOMMENDATION It is recommended that the City Council approve a resolution authorizing interim spending authority for the first 90 days of Fiscal Year (FY) 2025-2026 for the South San Francisco Conference Center. BACKGROUND To enable the continued operation of the Conference Center while the FY 2025-2026 budget is finalized, it is recommended that the City Council approve a resolution authorizing interim spending authority for FY 2025-2026 for ninety (90) days through September 9, 2025. The interim funding appropriation is one fourth (1/4) of the approved FY 2025-2026 budget. This interim authority will only be necessary if the Conference Center Authority and City Council do not approve the Conference Center Authority FY 2025-2026 budget prior to June 30, 2025. The Conference Center Authority met on Monday, April 21, 2025, to consider the FY 2025-2026 budget. By: Approved: _____________________ Jim McGuire Sharon Ranals Executive Director City Manager Attachment: Resolution Authorizing Fiscal Year 2025-2026 Interim Funding for the South San Francisco Conference Center. 342 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-676 Agenda Date:6/25/2025 Version:1 Item #:10a. Resolution approving interim funding for Fiscal Year 2025-26 for the South San Francisco Conference Center. WHEREAS estimates of revenues from all sources and estimates of expenditures required for the proper conduct of activities of the South San Francisco Conference Center for Fiscal Year 2025-26 are being prepared; and WHEREAS fiscal conditions may require additional time for development of budget priorities; and WHEREAS,it is the intention of the City Council to grant interim spending authority to allow for the continued orderly operation of the South San Francisco Conference Center for a period of ninety (90)days from July 1, 2025. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that: 1.Interim spending authority is hereby granted for a period of ninety (90)days from July 1,2025, through September 28,2025,to allow for the continuation of operations and projects of the Conference Center. 2.All amounts necessary for the continued operation of the Conference Center for the ninety (90) day period set forth in Paragraph 1 are hereby appropriated for expenditure.Such appropriation shall be based upon the Fiscal Year 2025-26 Operating Budget in a ratio of 365 to 90. 3.All annual contracts,leases,and obligations previously entered into and agreed to by the Conference Center Authority may be renewed.The funds necessary to finance such renewals are hereby appropriated. 4.The distribution of the appropriations,transfers,and reserves to the various accounts of the Conference Center in accordance with generally accepted accounting practices and consistent with the approved budget is hereby authorized. 5.The rollover of any outstanding encumbrances from Fiscal Year 2024-25 into Fiscal Year 2025- 26 is hereby authorized. 6.The rollover of any unencumbered appropriations from Fiscal Year 2024-25 into uncompleted capital improvement projects is hereby authorized. 7.The staffing level for the Conference Center contained within the 2025-26 operating budget is hereby authorized for a period of ninety (90) days. 8.Consistent with the limitations set forth herein,any and all expenditures for,and agreements relating to,the programs and materials described in the budget may be expended or entered into under authority of the Conference Center Authority,are hereby approved and authorized,and City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™343 File #:25-676 Agenda Date:6/25/2025 Version:1 Item #:10a. under authority of the Conference Center Authority,are hereby approved and authorized,and payments may be made. ***** City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™344 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-445 Agenda Date:6/25/2025 Version:1 Item #:11. Report regarding the City of South San Francisco Operating Budget for Fiscal Year 2025-26 and approving the Gann Appropriation Limit.(Karen Chang, Director of Finance and Greg Henry, Financial Services Manager) Attachments: Att A - Budget Approval Staff Report - *due to formatting limitations, the full report is included in Attachment A. Att 1 - General Fund Revenue and Expenditure Reports Att 2 - New Request - Positions - GF and Other Funds Att 3 - New Request - Supplies and Services - GF and Other Funds Att 4 - Department Revenue Adjustments - GF and Other Funds Att 5 - All Funds - Proposed Revenue, Expenditures and Balances City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™345 City of South San Francisco Page 1 of 14 File#: 25-445 Agenda Date: 6/25/2025 Version: 1 Item #: Report regarding the City of South San Francisco Operating Budget for Fiscal Year 2025-26 and approving the Gann Appropriation Limit. (Karen Chang, Director of Finance and Greg Henry, Financial Services Manager) RECOMMENDATION It is recommended that the City Council adopt a resolution that approves the City’s Fiscal Year (FY) 2025-26 Operating Budget and the Gann Appropriations Limit. BACKGROUND/DISCUSSION The City’s budget process is an annual cycle that aligns financial planning with service delivery, policy goals, and community needs for the fiscal year beginning July 1 and ending June 30. It serves as both a financial plan and a policy document, guiding how City resources are allocated and managed. Each year, the process begins with the development and refinement of City Council policy goals, typically occurring in the first quarter of the calendar year. These goals serve as a strategic foundation for budget development, providing direction for departmental priorities, new initiatives, and resource allocation. This early-stage policy discussion ensures that the budget reflects the long-term vision and evolving priorities of the City Council and the community. Following this, departments prepare budget requests based on operational needs and policy alignment. These requests are reviewed by the Finance Director and City Manager, and department heads participate in individual meetings to evaluate and refine their proposals. Revenue forecasting is conducted primarily by the Finance Department for major tax categories, while departments contribute estimates for fees, permits, and other sources. Capital improvement requests are managed separately by the Public Works Department and submitted via a dedicated staff report to ensure alignment with infrastructure planning and long- term capital needs. The public component of the budget process begins with the Budget Standing Committee, which reviews preliminary recommendations and key assumptions. The proposed budget is then presented in a public City Council Study Session for discussion and feedback. A final version is adopted by the City Council in a regular meeting, completing a three-step public review and approval process. City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA 346 City of South San Francisco Page 2 of 14 The process is guided by best practices in fiscal management, emphasizing transparency, accountability, and the alignment of financial resources with strategic priorities. The staff report and presentation have been updated following the guidance of the Budget Standing Committee meeting on May 20, 2025, and the City Council meeting on June 11, 2025. CITYWIDE OVERVIEW – EXECUTIVE SUMMARY While each fund, particularly the General Fund, faces specific revenue-side concerns, the cost pressures affecting the City’s budget are broad and largely universal across departments and funds. A key driver of rising expenditures in the FY 2025–26 Proposed Budget is the continued growth in personnel costs. The budget currently includes a 3% cost-of-living adjustment (COLA), which adds approximately $3.0 million to the City’s payroll base. However, this projection may change, as contracts for all bargaining units will expire on June 30, 2025, and are currently being negotiated. In this context, the City must balance fiscal sustainability with the need to retain and attract a high-quality workforce. Healthcare premiums continue to rise this year; however, the rate of increase has tapered off compared to last fiscal year's peak. Kaiser's premium, which rose 17% last year, shows no change this year, while Blue Shield's rates increased by 4%, and dental premium remain unchanged. The City is also experiencing a sharp rise in its required pension contributions. The total Unfunded Accrued Liability (UAL) payment to CalPERS in FY 2025–26 is projected at $23.6 million — a $3.7 million or 19% increase over FY 2024–25. These increases are primarily due to CalPERS’ adjustments in actuarial assumptions—such as lower expected investment returns and changes in retiree longevity—as well as past investment losses that are now being amortized over time. Additionally, COLAs for salaries in South San Francisco have exceeded CalPERS’ actuarial assumption of 2.8%1 which further increases our UAL payment. Since pension liabilities are closely tied to employee compensation, this higher- than-expected wage growth has added upward pressure to the UAL. These impacts are compounded by CalPERS’ structured amortization schedules. CalPERS uses a layered amortization approach to manage gains and losses over time, typically spreading each year’s changes over 20 years. These schedules are deliberately backloaded: payments begin at lower amounts and ramp up over the first five years. While this method provides participating agencies with less pension contribution volatility, it does result in paying more interest than straight-line amortization of investment losses. The City is experiencing the ramp up period, and payments are rising in FY 2025–26 not only due to new liabilities, but also due to the natural progression of earlier amortization layers reaching their peak. This structured, escalating curve is intended to smooth volatility over time but presents near-term budget pressures for the City. With respect to CalPERS’ investment portfolio performance in the current fiscal year, while it experienced significant paper losses due to market volatility from federal government tariffs, through May 9, 2025, the market value of CalPERS investment portfolio is $533.6 billion, which is a 6.1% year to date return on investment (ROI). Of note, it is the deviation between 1 https://www.calpers.ca.gov/documents/jrs-actuarial-valuation-2024/download?inline 347 City of South San Francisco Page 3 of 14 the discount rate (currently 6.8%) and the ROI that determines whether CalPERS amortizes an investment gain or loss for a fiscal year. Other non-personnel operating costs are also rising. Mid-year adjustments to utility rates have been carried forward into the new budget, contributing to higher baseline expenses. In addition, ongoing inflation continues to drive up the cost of supplies, materials, and contracted services, placing additional pressure on the City's operating budget. To help manage rising costs, the City Manager instructed departments to be highly selective in submitting new requests during the budget development process –especially those related to staffing. With limited exception, new position requests were discouraged in order to contain long-term cost growth and preserve budget flexibility. This directive reflects a strategic effort to align the City’s service levels with available resources, ensuring fiscal sustainability while minimizing the accumulation of ongoing obligations in a challenging revenue environment. Table 1 illustrates the citywide impact of these trends. While revenues are projected to increase slightly from FY 2024–25 to FY 2025–26, overall expenditures, particularly in payroll, supplies and services, and capital improvement projects, are increasing more sharply. These cost increases result in a projected reduction of the Citywide available fund balance of $25.0 million. Table 1. Citywide Budget (in million) Funds Operational Capital Net Impact Revenue Transfers In Expenses Transfers Out Capital Rev Capital Exp General Fund $139.0 $1.5 ($152.0) ($0.5) - - ($12.0) Measure W Sales Tax 14.6 - (0.2) (13.2) - - 1.2 Special Revenue Funds 12.9 - (4.7) (2.2) - (5.1) 1.0 Impact Fee Funds 2.8 - (0.8) - - (10.0) (7.9) Enterprise Funds 37.6 0.9 (37.2) - 3.7 (9.7) (4.7) Internal Service Funds 37.8 0.3 (38.7) - (0.6) Debt - 13.2 (13.2) - - - - Capital Improvement - - - - 13.5 (15.4) (1.9) Total $244.7 $15.9 ($246.9) ($15.9) $17.2 ($40.1) ($25.0) Table 1 highlights the growing gap between revenue growth and expenditure needs, a trend that without strategic action, could significantly constrain the City’s ability to sustain existing service levels in the years ahead. The remainder of this report will focus primarily on the General Fund operating budget. The General Fund is the City’s largest and primary operational fund. It is where all of the City’s tax revenues are collected and where most essential services, delivered by departments such as Economic and Community Development, Fire, Library, Parks and Recreation, Police, Public Works, and City Administration, are budgeted and accounted for. 348 City of South San Francisco Page 4 of 14 GENERAL FUND OVERVIEW – EXECUTIVE SUMMARY City Council approved the FY 2024-25 mid-year budget on February 12, 2025. At that time, General Fund total revenues and resources were projected to be $152.6 million, while expenditures were projected at $159.5 million, resulting in a General Fund deficit of approximately $6.9 million. FY 2024-25 Budget Update Since mid-year, additional updates have prompted revisions to the year-end projections. As shown in Table 2, the projected net deficit has improved slightly, decreasing from $6.9 million to $5.8 million. The adjustments following the mid-year, as shown in Table 2 are: 1.Following the mid-year adjustment, subsequent budget adjustments have resulted in a net reduction of $2.7 million to the projected year-end available fund balance. 2.Further adjustments represent additional adjustments by staff on the projected revenues and expenditures. a.Revenues: i.$0.2 million in City Council authorized budget adjustments increasing revenue. ii.$1.4 million reduction in revenue due to the one-time billboard project being moved to the next fiscal year. b.Expenditures: i.$2.9 million in City Council authorized budget adjustments increasing expenditure authority. ii.$3 million reduction in projected payroll expenses due to additional anticipated vacancy savings. iii.$2.2 million reduction in Supplies and Services due to the closure of completed purchase orders with remaining balances. Table 2. General Fund Year End Projection Mid-Year Projected FY 2024-25 Year End Updated Projected FY 2024-25 Year End Year Start Available Fund Balance 34.8 34.8 Adjustments to Fund Balance1 7.8 7.8 Revenues (inflows) 145.3 144.1 Expenditures (159.9) (157.6) Change in Available Fund Balance (6.9) (5.8) Projected Year-End Available Fund Balance 27.9 29.0 1.Adjustment to fund balance is the release of encumbered funds back into the available reserve. Despite the projected available fund balance of $29.0 million in the General Fund reflecting a 17 percent decrease when compared to the prior year, it remains at a fiscally sound level. 349 City of South San Francisco Page 5 of 14 FY 2025-26 Proposed Budget As the City begins development of the FY 2025–26 budget, it continues to monitor a range of national and state economic risks that may impact fiscal performance. At the national level, slower-than-expected economic growth, persistent core inflation, and the potential for prolonged high interest rates are contributing to uncertainty in both consumer behavior and municipal revenues. At the state level, California’s ongoing budget deficits, which are unlikely to improve in the near term, pose additional risks, particularly for local governments that rely on intergovernmental funding or economic activity influenced by state-level policy. These factors present a greater risk to the City’s revenues than to its expenditures, as approximately 80 percent of General Fund spending is committed to personnel costs, which are generally stable and less immediately impacted by economic fluctuations. These fiscal pressures provide important context for the City’s FY 2025–26 General Fund budget, which, as shown in Table 3, relies on $12.0 million from the General Fund’s available fund balance to close the budget gap. This represents a 41 percent reduction in the City’s available General Fund balance. Table 3. General Fund Operating Budget FY 2025-26 Proposed Budget (in millions) Beginning Available Fund Balance $29.0 Revenues $140.5 Less: Expenditures 152.5 Surplus/ (Deficit) (12.0) Use of General Fund Reserve 12.0 Net Surplus/(Deficit) Balanced Ending Available Fund Balance $17.0 The table above provides a high-level overview of the General Fund's projected revenues and expenditures for FY 2025–26. To better understand the factors driving the City’s financial position, the following sections offer a more detailed breakdown, beginning with the revenue categories. Each revenue source is influenced by a range of economic, policy, and operational factors that affect the City’s ability to fund services and maintain fiscal stability. 1.FY 25-26 GENERAL FUND REVENUE PROJECTIONS The FY 2025-26 Operating Budget has been developed assuming many of the revenue categories would experience moderate to flat growth. Comparisons are generally made to the prior year adopted budget unless otherwise noted. 1.Property Tax revenue is projected to increase based on historical trends but is slightly lower than the mid-year update due to the assumption that the State of California will not appropriate funds to backfill the Property Tax in-lieu Vehicle License Fee (VLF) shortfall. 2.Sales Tax revenue is expected to decline compared to last year’s adopted budget but remain flat relative to the mid-year update. 350 City of South San Francisco Page 6 of 14 3. Transient Occupancy Tax (TOT) revenue is projected to increase modestly. 4.Other Tax revenue, which includes the voter-approved update to the Business License Tax, is projected to increase significantly. 5.Franchise Fee revenue is expected to remain flat 6.Permit Fee revenues are projected to decrease significantly. The General Fund revenue forecast (excluding Measure W), Table 4 for FY 2025-26 is shown below, set against FY 2024-25 budget and FY 2023-24 actuals (in millions): Table 4. General Fund Operating Revenue Budget REVENUES FY 2023- 24 FY 2024-25 FY 2025-26 (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted Taxes Property Tax $56.4 $50.2 $57.1 $56.9 13.3% Sales Tax 23.2 23.2 21.2 21.2 -8.6% Transient Occupancy Tax 14.9 14.5 14.8 15.3 5.4% Other Tax 7.1 6.7 7.7 9.0 34.6% Franchise Fees 5.3 6.2 6.2 6.2 0.0% License and Permits Building 8.3 9.0 8.0 5.7 -36.7% Fire 3.8 2.3 2.9 2.7 15.7% Public Works 1.6 1.8 2.7 2.3 25.7% Other 0.2 0.0 0.0 0.1 700.0% Fines & Forfeitures 0.5 0.9 0.9 0.9 0.1% Intergovernmental 6.5 2.7 4.9 2.9 10.7% Charges for Services Planning 0.7 0.4 0.4 0.8 86.5% Fire 4.8 3.7 3.9 3.3 -9.5% Parks & Recreation 4.2 3.4 3.4 3.5 2.7% Police 1.2 1.1 1.1 1.0 -8.6% Other* 0.1 0.0 0.0 0.0 4.9% Inter-Fund Admin Charge 2.0 2.0 2.0 2.0 0.0% Use of Money & Property 7.1 4.5 5.7 5.1 13.5% Other Revenues 0.3 0.3 0.3 0.3 0.1% Transfers In 6.3 1.7 2.3 1.5 -10.1% PO/CIP Rollover 10.5 Measure W 0.0 3.0 0.0 0.0 -100.0% TOTAL REVENUES $154.6 $137.4 $156.0 $140.5 2.2% *Revenue appears as 0 due to rounding. 351 City of South San Francisco Page 7 of 14 Property Tax remains the City’s largest revenue source, projected at $56.9 million for FY 2025-26. Over the past five years, property tax revenues have grown at an average annual rate of 6%, fueled by a strong economy and significant development activity. This growth is reflected in the assessed property values in South San Francisco, which increased by 12% in 2023 and 9% in 2024. However, in 2025, the growth in assessed values slowed sharply to just 2.23%. As a result, staff have projected only a modest increase in property tax revenue compared to the current year’s adjusted budget. While the growth rate is lower, staff have revised the forecasting methodology to use the adjusted budget as the baseline, rather than the prior year’s base budget as was previously done. Since the adjusted budget is significantly higher than the base, this change results in a notable increase when compared to the prior base budget. Growth in this revenue stream is further constrained by the increasing risk of shortfalls in Property Tax In-Lieu of Vehicle License Fee (VLF) revenue, driven by the declining number of non-basic aid schools. The State is expected to consider this claim for appropriation as part of its FY 2025-26 budget. However, Governor Newsom’s proposed FY 2025-26 budget does not include any appropriations to cover the FY 2023-24 shortfall, of which the City’s share is $4.8 million. Although the State has consistently appropriated funding for San Mateo County’s VLF shortfalls since FY 2019-20, these funds are now at significant risk due to mounting State budget pressures and a sharp increase in the shortfall over the past three years. The City has submitted a letter to its state representatives to address this matter. To be conservative, staff have excluded the FY 2023-24 VLF backfill from the proposed budget but will continue to monitor the situation and update projections as needed. Despite these issues, property tax revenues are projected to increase by $6.7 million, which represents a 13.3 percent increase over the FY 2024-25 adopted budget, primarily due to the City’s growing share of property tax residuals from the former Redevelopment Agency (RDA). Additionally, if the state backfills the FY 2023-24 VLF shortfall, the City’s projected property tax revenue will increase by $4.8M. Sales Tax revenues in the City of South San Francisco have fluctuated in response to various economic factors. Since the adoption of the FY 2024-25 budget, the City’s sales tax consultant has revised projections downward due to rising unemployment, a shift in consumer spending from taxable goods to non-taxable services, and increasing costs in key areas such as housing, insurance, groceries, energy, healthcare, and education. By the end of 2024, only 6 of California’s 58 counties reported positive sales tax growth, while 26 counties experienced year- over-year declines of at least 4% in the local 1% Bradley-Burns revenue. Statewide, sales tax revenues have declined for seven consecutive quarters, with an eighth projected. Consumer sentiment remains one of the most significant drivers of sales tax revenue. Amid ongoing uncertainty related to tariffs and persistent inflationary pressures, consumer spending has slowed, contributing to the deceleration in sales tax growth and overall revenue performance. Sales tax revenues in FY 2025-26 are expected to decrease by $2 million, or 8.6 percent, compared to the FY 2024-25 adopted budget, as discussed during the FY 2024-25 Mid-Year budget meeting in February 2025. The City’s sales tax revenue is particularly sensitive to gas prices, as gasoline sales tax makes up a significant portion of overall sales tax revenue. As such, 352 City of South San Francisco Page 8 of 14 any major fluctuations in gas prices can directly affect revenue performance. At mid-year, California was experiencing lower gasoline prices. With the planned closures of refineries in the East Bay, the impact on gasoline price remains to be seen. In response, and based on updated guidance from the City’s sales tax consultant, a FY 2024-25 mid-year adjustment was made to revise the sales tax forecast downward. For FY 2025-26, projected sales tax revenue is $21.2 million. While this is $2.0 million lower than the FY 2024-25 adopted budget, it is slightly higher than the revised mid-year estimate. This projection aligns with the updated trend and reflects a stabilization in revenue following the reclassification. Transient Occupancy Tax (TOT) revenue has experienced a strong recovery since the pandemic, reflecting renewed domestic travel activity. However, recent declines in international tourism raise concerns, and the full extent of their impact on TOT revenue remain to be seen. In FY 2024-25, hotel occupancy reached 66 percent. For FY 2025-26, we project a 68% occupancy rate. Based on this assumption, staff expects TOT revenue to increase by $0.8 million, representing a 5.4% increase over last year’s adopted budget. Other Tax revenues, comprised primarily of the Business License Tax and Commercial Parking Tax, continue the upward trend projected at mid-year. At that time, Business License Tax revenue was revised upward by $1 million. This additional increase results in a total of $2 million above the prior year’s adopted budget, driven by the voter-approved tax update. Staff have increased Commercial Parking Tax revenue to match current-year actuals. Franchise Fee revenues are expected to remain flat in FY 2025-26 compared to FY 2024-25. The total includes a one-time electronic billboard revenue of $1.4 million, which was originally budgeted in FY 2024-25. However, due to delays in receiving the funds, this amount is being carried forward into FY 2025-26. The revenue is not expected to recur in future years and should be treated as a one-time adjustment rather than ongoing income. Licenses and Permit revenues remained relatively stable prior to FY 2022-23, supported by strong construction activity and robust economic development throughout the City. A surge in permits issued occurred in FY 2022-23 as developers rushed to submit applications ahead of anticipated building code changes and fee increases, resulting in a temporary spike. However, rising interest rates driven by persistent inflation beginning in mid-2022, combined with increased market uncertainty and regional bank failures, created a more challenging environment for developers in FY 2023-24. These conditions contributed to a slowdown in project activity. Despite these challenges, staff remains cautiously optimistic about future development but continues to take a conservative approach to revenue projection. Permit revenues for FY 2024- 25 were adopted at $13.2 million and later adjusted upward to $13.6 million at mid-year. However, for FY 2025-26, permit revenues are projected to decline by $2.5 million, bringing the total to $10.7 million. This represents a significant decrease by the Building Division, partially offset by increases from the Fire and Public Works departments. The overall decline reflects continued softness in the development market, driven by persistently high interest rates and ongoing economic uncertainty. Intergovernmental revenue primarily consists of grants and includes mutual aid cost recovery for the Fire Department’s response to disasters outside the City. This revenue has been increased 353 City of South San Francisco Page 9 of 14 by $400 thousand to align with the four-year historical trend. However, the traffic signal maintenance fee, previously budgeted at $275 thousand, will no longer be recorded as intergovernmental revenue and has been reduced to $0. The FY 2025-26 budget also includes the continuation of two multi-year library grants totaling $232 thousand. As a result, the net projected increase in intergovernmental revenue is $285 thousand, or 10.7%, when compared to the FY 2024-25 adopted budget. Charges for Services for FY 2025-26, staff expect to see variable changes across different departments. Economic and Community Development (ECD) and Parks and Recreation (P&R) are projected to have increases of 86% and 3% respectively. ECD’s increase is due to the expectation that more projects will start over next year. However, the City anticipates lower revenue from the Fire Department for their participation in the ambulance program of about $350 thousand, a 9% decrease from the FY 2024-25 adopted budget. Use Money & Property is budgeted at the same level as FY 2024–25. The primary source of revenue for this category is investment in the U.S. Treasuries and high-quality agency bonds, as required by statute. Given recent volatility in U.S. Treasury yields and other fixed-income markets, staff recommends maintaining a flat projection for now, but will monitor the market condition and provide an update during the mid-year review. Transfers In are budgeted with a $168 thousand reduction from FY 2024–25. This is due to the elimination of a budgeted transfer from the Developer Fee Fund from the prior year but the inclusion of two transfers from the Special Revenue Fund: $60 thousand from Police Evidence Revolving account to offset Police recruiting expenses and $72 thousand from the Opioid settlement to partially offset the cost of the Crisis Intervention Specialist. 2.PROPOSED FY 2025-26 GENERAL FUND EXPENDITURES The following tables, Table 5 and Table 6, show the proposed FY 2025-26 General Fund expenditure budgets (in millions). Table 5. General Fund Operating Expenditure Budget by Category (in million) EXPENDITURES FY 2023- 24 FY 2024-25 FY 2025-26 (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted Salary and Benefits $106.1 $113.4 $114.4 $116.91 3.1% Supplies and Services 23.0 22.1 34.3 25.0 13.1% Capital Outlay 0.2 0.0 0.7 0.0 0.0% Debt Service 0.0 0.0 0.0 0.0 0.0% Interdepartmental Charges 10.2 9.5 9.5 10.2 7.0% Transfers - Operation 0.5 0.5 0.5 0.5 0.0% Transfers - Capital Transfers 0.7 0.0 3.4 0.0 0.0% TOTAL EXPENDITURES $140.8 $145.4 $162.8 $152.5 4.9% 1.2025-26 Salary and Benefits budget assumes $8.0 million in vacancy savings. 354 City of South San Francisco Page 10 of 14 Table 6. General Fund Operating Expenditure Budget by Department (in million) EXPENDITURES FY 2023- 24 FY 2024-25 FY 2025-26 (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted City Council $0.3 $0.3 $0.3 $0.3 -14.5%1 City Clerk 1.0 1.3 1.4 1.4 6.6% City Treasurer 0.2 0.2 0.2 0.2 26.7%1 City Attorney 1.7 1.5 2.3 1.5 4.0% City Manager 3.4 3.9 4.3 4.8 24.3% Finance 3.3 3.9 4.2 4.3 11.1% Non expense/Dept 2.0 1.9 2.2 3.0 12.2% Economic & Comm Develop 11.1 8.9 12.0 9.6 8.1% Fire 36.7 36.4 38.1 40.2 10.4% Police 37.1 38.2 38.4 42.3 10.8% Public Works 10.1 11.1 14.4 12.6 13.1% Library 7.7 8.9 9.1 9.3 4.7% Parks and Recreation 22.9 26.3 29.6 29.1 10.4% CIP 0.7 0.0 3.4 0.0 0.0% Non expense/Dept 2.0 1.9 2.2 1.9 0.0% Salary Savings 0.0 0.0 0.0 (8.0) - TOTAL EXPENDITURES $140.8 $145.4 $162.8 $152.5 4.9% Information Technology2 4.2 4.3 4.6 4.7 10.2% 1. Changes are due primarily to adjustments in optional City medical coverage. 2. Non-General Fund: budgeted as internal service fund in Fund 785 FY 2025-26 Expenditure Projection Attachments 2 and 3 to this report provide a detailed explanation of each department’s requests, along with the proposed funding budget breakdown of payroll, supplies and services. The following provides additional information for each of the major expenditure categories. 355 City of South San Francisco Page 11 of 14 Payroll: •As noted above, the primary drivers of payroll costs are the 3% assumed COLA salary increase as well as the increase in the UAL and health benefit costs. While payroll request details for all funds are provided in Attachment 2, the following are the most impactful requests for the General Fund. o Police Change: New Position Crisis Intervention Specialist Cost: $230,000 Source: Opioid settlement for $72,000, the remainder General Fund. o Parks and Recreation Change: Cultural Arts Positions Cost: $21,000 Source: Paid through the Arts-In-Lieu Fee, no General Fund Impact. Change: Aquatics Positions Cost: $520,000 Source: General Fund Change: Senior Program Cost: $24,000 Source: General Fund Change: Parks Program Savings: $(12,562) Source: General Fund Supplies and Services: •The proposed budget includes all departmental decision packages (new requests) that have been reviewed by the City Manager and are to be submitted for City Council’s approval. These requests are detailed in Attachment 3 for all funds. However, overall, there are $1.5 million in new requests for the General Fund. In particular: o $560 thousand these requests are for contractors who support the City’s permit and fee process, which means these costs are directly offset by increased projected revenue. o $100 thousand are related to the increased operating costs for the new pool. o $300 thousand from the City Manager’s office. $200 thousand request is for contract service for Abandoned/Derelict Vessel Removal/Destruction at Oyster Point. $100 thousand for the biennial community survey. o $50 thousand for additional mental health services in the Police Department. Interdepartmental Charges: •Interdepartmental Charges are expenses that are accounted for in the General Fund (and other funds as necessary) and then transferred out to support internal services functions. The largest internal service fund is the Information Technology (IT) Department. In effect, the cost of providing IT services is calculated and then “charged” to various City funds, with the General Fund bearing the majority of the charge. 356 City of South San Francisco Page 12 of 14 3. OTHER FUNDS There are other funds that the City Council oversees beyond the General Fund. The new requests from other funds can be found in Attachment 3. Many of the final budgets for these funds are contingent upon the adoption of the Capital Improvement Program (CIP) by City Council. The numbers may change based upon Council’s action related to the FY 2025-26 CIP program. As noted in the Citywide section, the City’s Enterprise Funds are also experiencing pressure from rising costs. The three Enterprise Funds—Sewer, Parking District, and Stormwater, are summarized below in Table 7. Each fund follows a distinct process for adjusting revenues; however, due to statutory limitations in increasing Stormwater funding, this fund is currently heavily subsidized with operational transfers: $250 thousand from the General Fund, $670 thousand from Gas Tax. Table 7. Enterprise Funds Operating Budgets Enterprise Sewer Parking Storm Total Revenue $36.1 $1.0 $0.5 $37.6 Transfers In - - $0.9 $0.9 Payroll ($12.3) ($0.7) ($1.0) ($14.0) Supplies & Services ($13.2) ($0.8) ($0.3) ($14.3) Capital Purchases ($1.1) - - ($1.1) Debt Service ($5.5) - - ($5.5) Inter-Departmental ($2.0) ($0.2) ($0.1) ($2.3) Transfers Out - - - - Surplus/ (Deficit) $2.0 ($0.6) ($0.1) $1.3 4. OTHER REQUESTS NOT INCLUDED Due to ongoing fiscal pressures, departments have opted not to include several items in this year’s budget request. Some of these items were previously submitted as one-time needs or are directly aligned with Council priorities. While they are not part of the proposed budget, the Economic and Community Development (ECD) Department wishes to bring the following items to Council’s attention for transparency and potential discussion: • BIO Conference 2026 – $100 thousand; consider opting for a different venue • Citywide Holiday Decorations – $170 thousand • Promotores Social Service Navigators – $165 thousand Additionally, the Police Department will bring a Drone contract to Council in July/Aug 2025 for separate appropriation. 5. RESERVES The City’s financial reserve funds are expected to be approximately $56.4 million. A breakdown is shown below: 357 City of South San Francisco Page 13 of 14 Table 8. General Fund Reserves The General Reserve, which represents 20 percent of the City’s annual revenue budget, excluding transfers in (General Fund), follows the best practices guidelines from the Government Finance Officers’ Association (GFOA). The Infrastructure Reserve is largely comprised of General Fund surpluses that were set aside over previous years in anticipation of the City’s future infrastructure projects. The value shown is the unencumbered monies available that have not yet been designated toward a project. It should be noted that within the proposed FY 2025-26 Capital Improvement Program, a net $1.9 million of direct capital project funding is requested from the Infrastructure Reserves, which is reflected in the ending balance above. The CalPERS Stabilization Reserve was established through two separate Council actions in FY 2015-16 and FY 2017-18, totaling $5.5 million. In December 2022, Finance capitalized on the higher interest environment by establishing a separate investment account with the City’s investment manager, Chandler, to achieve a higher rate of return. As of April 30, 2025, the account balance has grown to $6.2 million. The Available General Fund Balance is the portion of the General Fund (as shown in the table in the summary section of this report) that has not been designated for any particular purpose. This balance will fluctuate depending on the extent to which expenditures exceed revenues (deficit) in FY 2025-26. It is important to note that the available fund balance also serves as a buffer, allowing for the natural ebb and flow within the General Fund that occurs during the year as a result of the mismatch between when revenues are received and when expenditures are incurred. Although placed in different categories, the City Council, by majority vote, is allowed to use the above reserve funds as necessary. 6. GANN APPROPRIATIONS LIMITS As required by Article XIIIB of the California Constitution, the City of South San Francisco must annually adopt a Gann Appropriations Limit, which sets a cap on the amount of tax proceeds the City can appropriate each fiscal year. As detailed in Attachment 2 to the Resolution, for FY 2025-26, the City has calculated its Gann Appropriation Limit to be $194,547,265. The City’s proposed appropriations funded by tax proceeds for FY 2025-26 are well within the calculated limit. Estimated Ending Financial Reserve for FY 2025-26 (in million) General Reserve $27.8 Infrastructure Reserve 6.9 CalPERS Stabilization Reserve 6.2 Available GF Balance 17.0 Total $57.9 358 City of South San Francisco Page 14 of 14 FISCAL IMPACT For Fiscal Year 2025-26, the City’s General Fund is projected to have operating revenues of $140.5 million and use of General Fund Reserve of $12.0 million for a total of available revenues and resources of $152.5 million. Expenditures net of any carryover purchase orders are projected to be $152.5 million, resulting in a balanced budget. RELATIONSHIP TO STRATEGIC PLAN The budget is the City’s spending plan that supports Priority Area 3, Financial Stability. CONCLUSION The General Fund continues to experience a structural deficit, as revenue growth remains insufficient to keep pace with rising expenditures. Key cost drivers—including personnel expenses, healthcare costs, and inflation—are escalating at a faster rate than incoming revenues. Property tax revenue continues to increase but are anticipated to do so at a slower pace than in previous years. In light of increasing fiscal pressure from the State’s own budget deficit, staff has adopted a more prudent approach by assuming that the State will not backfill the FY 2023-24 Property Tax in-lieu of Vehicle License Fees (VLF) shortfall. Should this funding materialize, it could reduce the FY 2025-26 budget deficit by approximately $5 million. Staff will continue to monitor this and provide updates as new information becomes available. Revenue sources such as sales taxes and TOT are subject to ongoing uncertainty due to tariffs and inflation. Additionally, permit fee revenues from developers have slowed, influenced by high interest rates and trade-related pressures. To help balance the long-term structural deficit, the City is evaluating potential revenue enhancement strategies. The proposed budget is structured to maintain current service levels, and no significant cuts are proposed at this time. A key driver of rising expenditures in the FY 2025–26 Proposed Budget is the continued growth in personnel related costs. Since labor negotiations have not yet been finalized, the proposed budget assumes a 3% cost-of-living adjustment (COLA); any changes to this assumption will impact the projected deficit. On the other hand, since the City has experienced higher-than usual staff turnover, staff has included a 7% vacancy assumption, which is approximately $8 million in personnel costs to account for in anticipated salary savings. This budget is prepared with a strategic effort to align the City’s service levels with available resources, ensuring fiscal sustainability while minimizing the accumulation of ongoing obligations in a challenging revenue environment. Staff recommends that the Council adopt the operating budget for Fiscal Year 2025-26. Additionally, staff recommends approving the Gann Appropriations Limit to ensure compliance with constitutional requirements. Attachments: Att 1 – General Fund Revenue and Expenditure Reports Att 2 - New Request – Positions – GF and Other Funds Att 3 – New Request – Supplies and Services – GF and Other Funds Att 4 – Department Revenue Adjustments – GF and Other Funds Att 5 – All Funds - Proposed Revenue, Expenditures and Balances 359 General Fund 2025-26 Proposed Budget Attachement 1 REVENUES (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted Taxes Property Tax $56.4 $50.2 $57.1 $56.9 13.3% Sales Tax 23.2 23.2 21.2 21.2 -8.6% Transient Occupancy Tax 14.9 14.5 14.8 15.3 5.4% Other Tax 7.1 6.7 7.7 9.0 34.6% Franchise Fees 5.3 6.2 6.2 6.2 0.0% License and Permits Building 8.3 9.0 8.0 5.7 -36.7% Fire 3.8 2.3 2.9 2.7 15.7% Public Works 1.6 1.8 2.7 2.3 25.7% Other 0.2 0.0 0.0 0.1 700.0% Fines & Forfeitures 0.5 0.9 0.9 0.9 0.1% Intergovernmental 6.5 2.7 4.9 2.9 10.7% Charges for Services Planning 0.7 0.4 0.4 0.8 86.5% Fire 4.8 3.7 3.9 3.3 -9.5% Parks & Recreation 4.2 3.4 3.4 3.5 2.7% Police 1.2 1.1 1.1 1.0 -8.6% Other*0.1 0.0 0.0 0.0 4.9% Inter-Fund Admin Charge 2.0 2.0 2.0 2.0 0.0% Use of Money & Property 7.1 4.5 5.7 5.1 13.5% Other Revenues 0.3 0.3 0.3 0.3 0.1% Transfers In 6.3 1.7 2.3 1.5 -10.1% PO/CIP Rollover 10.5 Measure W 0.0 3.0 0.0 0.0 -100.0% TOTAL REVENUES $154.6 $137.4 $156.0 $140.5 2.2% *Revenue appears as 0 due to rounding. FY 2023-24 FY 2025-26FY 2024-25 360 General Fund 2025-26 Proposed Budget Attachement 1 EXPENDITURES (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted City Council $0.3 $0.3 $0.3 $0.3 -14.5% City Clerk 1.0 1.3 1.4 1.4 6.6% City Treasurer 0.2 0.2 0.2 0.2 26.7% City Attorney 1.7 1.5 2.3 1.5 4.0% City Manager 3.4 3.9 4.3 4.8 24.3% Finance 3.3 3.9 4.2 4.3 11.1% Human Resources 2.6 2.7 3.0 3.0 12.2% Economic & Comm Develop 11.1 8.9 12.0 9.6 8.1% Fire 36.7 36.4 38.1 40.2 10.4% Police 37.1 38.2 38.4 42.3 10.8% Public Works 10.1 11.1 14.4 12.6 13.1% Library 7.7 8.9 9.1 9.3 4.7% Parks and Recreation 22.9 26.3 29.6 29.1 10.4% Non expense/Dept 2.0 1.9 2.2 1.9 0.0% Non Dept Salary Savings 0.0 0.0 0.0 (8.0)- CIP 0.7 0.0 3.4 0.0 0.0% TOTAL EXPENDITURES $140.8 $145.4 $162.8 $152.5 4.9% Information Technology*4.2 4.3 4.6 4.7 10.2% FY 2023-24 * Non-General Fund: budgeted as internal service fund in Fund 785 FY 2025-26FY 2024-25 361 Position Requests Attachment 2 Position FTE GF - FY25-26 Sewer - FY25- 26 & Ongoing Parking - FY25-26 & Ongoing Other FY25-26 & Ongoing GF - Ongoing Total - Ongoing City Manager Administrative Assistant II¹1.00 - - - - 150,272 150,272 Administrative Assistant I -1.00 - - - - (142,697) (142,697) Total Change - City Manager 0.00 7,576 7,576 Econ & Com Dev Promotores -1.00 (91,520) - - - (91,520) (91,520) Total Change - Econ & Com Dev -1.00 (91,520) - - - (91,520) (91,520) Fire Safety Inspector I¹1.00 - - - - 242,461 242,461 Safety Inspector I - Hourly -1.00 - - - - (230,906) (230,906) Overtime Mutual Aid 0.00 500,000 - - - 500,000 500,000 Total Change - Fire 0.00 500,000 - - - 511,555 511,555 HR Intern-Hourly 0.17 7,200 - - - - - Total Change - HR 0.17 7,200 - - - - - Library Library Assistant I - Hourly¹ 2.00 - - - - 142,173 142,173 Library Page - Hourly -2.00 - - - - (99,901) (99,901) Total Change - Library 0.00 - - - - 42,271 42,271 Parks and Rec Cultural Arts (Art-In-Lieu Fee) 0.40 - - - 20,929 - 20,929 Aquatics2 8.54 519,404 - - - 1,038,807 1,038,807 Senior Program 0.25 23,256 - - - 23,256 23,256 Parks Program 0.00 (12,562) - - - (12,562) (12,562) Total Change - Parks and Rec 9.19 530,098 - - 20,929 1,049,501 1,070,430 Police Crisis Intervention Specialist 3 1.00 155,630 - - - 227,630 227,630 Total Change - Police 1.00 155,630 - - - 227,630 227,630 Public Works - Program Manager 1.00 51,343 198,988 51,343 - 51,343 301,673 Management Analyst II -1.00 (49,969) (199,877) - - (49,969) (249,847) Management Analyst II 1.00 199,877 49,969 - - 199,877 249,847 Management Analyst I -1.00 (227,229) - - - (227,229) (227,229) Total Change - Public Works 0.00 (25,979) 49,080 51,343 - (25,979) 74,444 IT Overtime and Standby Pay (IT ISF) 0.00 - - - 40,000 - 40,000 Total Change - IT 0.00 - - - 40,000 - 40,000 Total Change - City Wide 9.36 1,075,429$ 49,080$ 51,343$ 60,929$ 1,721,034$ 2,006,677$ 1.Salary Savings are used to fund positions without a cost in the first year. 2.Ongoing is assumed at 2x the current partial year ask as an estimate, but will be updated in the next budget cycle. 3.This position is proposed to be funded with $70,000 in Opioid Settlement funds for FY25-26 362 Position Requests Attachment 2 Parks Positions Detail FTE GF - FY25-26 Sewer - FY25- 26 & Ongoing Parking - FY25-26 & Ongoing Other FY25-26 & Ongoing GF - Ongoing Total - Ongoing Cultural Arts (Art-In-Lieu Fee) Recreation Leader II - Hourly 0.25 - - - 12,677 - 12,677 Recreation Leader III - Hourly 0.15 - - - 8,253 - 8,253 Total Change - Cultural Arts 0.40 - - - 20,929 - 20,929 Aquatics Recreation & Community Services Program Coord 0.27 25,989 - - - 51,977 51,977 Recreation Leader II - Hourly 0.83 41,931 - - - 83,862 83,862 Recreation Leader III - Hourly 5.29 291,192 - - - 582,385 582,385 Recreation Leader IV - Hourly 1.65 100,726 - - - 201,451 201,451 Building Maintenance Custodian 0.50 59,566 - - - 119,132 119,132 Total Change - Aquatics 8.54 519,404 - - - 1,038,807 1,038,807 Senior Program Recreation & Community Services Prog Coor - Hourly 0.25 23,256 - - - 23,256 23,256 Total Change - Senior Program 0.25 23,256 - - - 23,256 23,256 Parks Program Miscellaneous Hourly 0.50 29,801 - - - 29,801 29,801 Park Maintenance Worker - Hourly -0.50 (42,363) - - - (42,363) (42,363) Total Change - Parks Program 0.00 (12,562) - - - (12,562) (12,562) Total Change - Parks & Rec 9.19 530,098$ -$ -$ 20,929$ 1,049,501$ 1,070,430$ 363 Supply and Service Requests Attachment 3 Funding Source Request GF Sewer Parking Other Total City Attorney Contract Increase 65,000 - - - 65,000 Request Total - City Attorney 65,000 - - - 65,000 City Manager's Office - Abandoned/Derelict Vessel Removal/Destruction 200,000 - - - 200,000 Biennial Community Survey 100,000 - - - 100,000 Request Total - City Manager's Office 300,000 - - - 300,000 Finance Property Tax Consultant 20,000 - - - 20,000 Request Total - Finance 20,000 - - - 20,000 Human Resources Contract for Investigation and Compensation 50,000 - - - 50,000 Recruitment Costs 50,000 - - - 50,000 Request Total - Human Resources 100,000 - - - 100,000 Econ & Comm Dev Construction Coordination Committee 75,000 - - - 75,000 TDM & Trip Cap Monitoring and Compliance 40,000 - - - 40,000 Retail Strategies for ECR & Commercial Centers 30,000 - - - 30,000 Building Permit Plan Check (136,828) - - - (136,828) JP Morgan Investment Conference 50,000 - - - 50,000 Request Total - Econ & Comm Dev 58,172 - - - 58,172 Fire Plan Review Contract Services 400,000 - - - 400,000 Equipment and Supplies 58,811 - - - 58,811 Replace Aging Vehicle Extrication Equipment 41,287 - - - 41,287 Equipment and Lodging for Mutual Aide 50,000 - - - 50,000 Request Total - Fire 550,098 - - - 550,098 Police Increased Recruitment Support 60,000 - - - 60,000 Mental Health Service Supplemental Resources 50,000 - - - 50,000 Request Total - Police 110,000 - - - 110,000 364 Supply and Service Requests Attachment 3 Funding Source Request GF Sewer Parking Other Total Public Works Thermoplastic Machine 20,000 - - - 20,000 Anaerobic Digestor Cleaning - 750,000 - - 750,000 Uniforms (Sewer)- 64,000 - - 64,000 Uniforms (Stormwater)- - - 12,000 12,000 Uniforms (Garage)- - - 5,500 5,500 Essential Tools (Garage)- - - 45,000 45,000 Power-Washing Contract - - 75,000 - 75,000 Licenses Plate Readers for Parking Enforcement - - 140,000 - 140,000 Vehicles - 1,100,000 - - 1,100,000 Request Total - Public Works 20,000 1,914,000 215,000 62,500 2,211,500 Library PLAN Network Service Increases 10,000 - - - 10,000 Youth Library Program Support 5,000 - - - 5,000 Children's Books 5,000 - - - 5,000 ESL Grant Expenses 24,754 - - - 24,754 Request Total - Library 44,754 - - - 44,754 Parks and Recreation Pool Opening Services and Supplies 192,149 - - - 192,149 Building Maintenance 14,500 - - - 14,500 Vehicular Gates and Rollup Door Maintenance 20,000 - - - 20,000 Caltrans Plaza Airspace Lease 2,600 - - - 2,600 Sculpture for OP IIC location (Art In Lieu)- - - 75,000 75,000 Request Total - Parks and Recreation 229,249 - - 75,000 304,249 Information Technology Computer Purchase (Equipment Replacement)- - - 100,000 100,000 EOC Video Wall Update (PEG Funds)- - - 300,000 300,000 Software (Development Software Fee)- - - 294,100 294,100 Software (IT ISF)- - - 142,000 142,000 Phone Service Update (IT ISF)- - - 124,334 124,334 Request Total - Information Technology - - - 960,434 960,434 Request Total - City Wide 1,497,272$ 1,914,000$ 215,000$ 1,097,934$ 4,724,206$ 365 City of South San Francisco Projected Fund Balances - FY 2026 Attachment 5 Fund Title FY 2026 Beginning Fund Balance FY 2026 Revenue FY 2026 Expense FY 2026 Ending Fund Balance 100 GENERAL FUND 29,027,728$ 140,487,744$ (152,532,413)$ 16,983,059$ 101 MEASURE W 13,011,216$ 14,645,200$ (13,415,968)$ 14,240,448$ Total GENERAL FUND 42,038,944$ 155,132,944$ (165,948,381)$ 31,223,507$ 201 AMERCIAN RESCUE PLAN ACT FUND (0)$ -$ -$ (0)$ 205 AFFORDABLE HOUSING TRUST FUND 443,514$ 277,700$ -$ 721,214$ 206 PARK-IN-LIEU ZONE 1 -$ -$ -$ -$ 207 PARK-IN-LIEU ZONE 2 76,117$ -$ -$ 76,117$ 208 PARK-IN-LIEU ZONE 3 -$ -$ -$ -$ 209 PARK IN-LIEU ZONE 4 649,798$ -$ -$ 649,798$ 210 GAS TAX FUND 606,467$ 2,145,000$ (1,810,000)$ 941,467$ 211 MEASURE A-1/2 TRANSPORTATION SALES TAX 2,258,391$ 2,134,700$ (2,310,847)$ 2,082,244$ 212 ROAD MNTC & REHAB (SB1)576,375$ 1,738,000$ (2,300,000)$ 14,375$ 213 SMC MEASURE W 1/2 CENT SALES TAX 428,359$ 956,780$ (500,000)$ 885,139$ 222 COMMUNITY DEVELOPMENT BLOCK GRANT 15,264$ 5,000$ -$ 20,264$ 231 WEST PARK MAINT DIST 3 110,683$ 1,057,877$ (1,097,708)$ 70,852$ 232 STONEGATE RIDGE MAINT 1,973,702$ 354,310$ (260,579)$ 2,067,433$ 233 WILLOW GARDENS MAINT 455,851$ 115,586$ (109,294)$ 462,143$ 234 WEST PARK MAINT DIST 1&2 1,520,395$ 690,973$ (714,652)$ 1,496,716$ 236 OP CFD SPECIAL TAX B (FOR CITY)119,860$ 200,000$ (311,000)$ 8,860$ 241 CITY HOUSING FUND 1,234,605$ 182,000$ (493,261)$ 923,344$ 250 SOLID WASTE REDUCTION 263,153$ 344,900$ (391,373)$ 216,680$ 260 SUPPLEMENTAL LAW ENFORCEMENT SERVICES 35,864$ 160,000$ (160,000)$ 35,864$ 270 DVLPR FUNDED PLANNING & ENGINR 1,861,858$ -$ (818,894)$ 1,042,964$ 271 271 - PERMIT PROGRAM MAINT FEE FUND 409,191$ -$ (294,100)$ 115,091$ 272 272 - GENERAL PLAN MAINT FEE FUND 3,791,073$ 2,500,000$ -$ 6,291,073$ 280 CITY PROGRAMS SPECIAL REV FUND 4,453,096$ -$ (328,000)$ 4,125,096$ 290 TRANSIT STATION ENHANCEMENT IN-LIEU FEE 2,921,111$ -$ -$ 2,921,111$ Total SPECIAL REVENUE 24,204,727$ 12,862,826$ (11,899,709)$ 25,167,845$ 461 DEBT SERVICE FUND LEASE REVENUE BONDS -$ 13,236,538$ (13,236,538)$ -$ Total DEBT SERVICE -$ 13,236,538$ (13,236,538)$ -$ 510 CAPITAL IMPROVEMENTS -$ 13,516,279$ (13,516,279)$ -$ 513 CAPITAL INFRASTRUCTURE RESERVE FUND 8,879,508$ -$ (1,900,000)$ 6,979,508$ 514 OYSTER POINT DEVELOPMENT 34,948$ -$ -$ 34,948$ 515 CAPITAL IMPROVEMENTS NEW POLICE STATION 0$ -$ -$ 0$ 516 CAPITAL IMPROVEMENTS CIVIC CAMPUS PHASE 718,610$ -$ -$ 718,610$ 517 CAPITAL IMPR STREET PAVEMENT BOND FUNDED 2$ -$ -$ 2$ 518 CAPITAL IMPR SOLAR ROOFS BOND FUNDED 1,709,784$ -$ -$ 1,709,784$ 519 CAPITAL IMPR CIVIC CAMPUS BOND FUNDED 886,043$ -$ -$ 886,043$ 522 CAPITAL IMPR OMP BALLFIELD BOND FUND 865,073$ -$ -$ 865,073$ 523 CAPITAL IMPR OMP PLAYGROUND BOND FUNDED 2,200,000$ -$ -$ 2,200,000$ 524 CAPITAL IMPR AQUATICS CENTER BOND FUNDED 8,293,182$ -$ -$ 8,293,182$ 525 CAPITAL IMPR COLMA CREEK BRIDGE REPLACE 1,500,000$ -$ -$ 1,500,000$ Total CAPITAL FUNDS 25,087,149$ 13,516,279$ (15,416,279)$ 23,187,149$ 710 SEWER ENTERPRISE FUND 16,443,447$ 39,823,685$ (43,775,371)$ 12,491,761$ 720 PARKING DISTRICT FUND 2,622,105$ 1,000,000$ (1,648,524)$ 1,973,580$ 740 STORM WATER FUND (1,221,017)$ 1,397,270$ (1,472,587)$ (1,296,334)$ Total PROPIETARY FUNDS 17,844,534$ 42,220,955$ (46,896,482)$ 13,169,008$ 781 CITY SERVICE FUND 28,605$ 2,717,982$ (2,652,337)$ 94,250$ 782 SELF INSURANCE FUND 15,028,917$ 5,299,950$ (7,135,000)$ 13,193,867$ 783 BENEFITS FUND 1,042,068$ 22,644,000$ (22,105,000)$ 1,581,068$ 784 EQUIPMENT REPLACEMENT 3,140,075$ 2,569,547$ (1,804,000)$ 3,905,622$ 785 INFORMATION TECHNOLOGY 1,496,534$ 4,719,575$ (4,708,478)$ 1,507,631$ 786 PEG EQUIPMENT & ACCESS 1,011,869$ 130,000$ (325,000)$ 816,869$ Total INTERNAL SERVICE FUNDS 21,748,067$ 38,081,054$ (38,729,815)$ 21,099,307$ 366 730 SEWER CAPACITY CHARGES 1,971,998$ 1,300,000$ (3,727)$ 3,268,271$ 805 PARK LAND ACQUISITION FEE 690,776$ -$ -$ 690,776$ 806 PARK CONSTRUCTION FEE 14,676,817$ -$ (5,066,279)$ 9,610,538$ 810 E. OF 101 SEWER IMPACT FEES FUND 3,456,590$ -$ (3,403,727)$ 52,863$ 820 E. OF 101 TRAFFIC IMPACT FEES 4,726,420$ -$ (3,727)$ 4,722,693$ 821 PUBLIC SAFETY IMPACT FEE - FIRE 1,242,011$ -$ -$ 1,242,011$ 822 BICYCLE AND PEDESTRIAN IMPACT FEE FUND 144,600$ -$ -$ 144,600$ 823 COMMERCIAL LINKAGE IMPACT FEE 14,039,549$ 1,500,000$ (658,075)$ 14,881,474$ 824 LIBRARY IMPACT FEES FUND 50,014$ -$ -$ 50,014$ 825 CITYWIDE TRANSPORTATION IMPACT FEE 1,765,481$ -$ (1,200,000)$ 565,481$ 826 SAFETY IMPACT FEE - POLICE 665,627$ -$ -$ 665,627$ 827 PUBLIC ARTS-IN-LIEU FEE FUND 396,737$ -$ (396,737)$ -$ 830 CHILD CARE IMPACT FEES FUND 3,013,669$ -$ (3,727)$ 3,009,942$ 840 OYSTER POINT INTERCHANGE IMPACT FEES FUND 29,702$ -$ -$ 29,702$ Total IMPACT FEE FUNDS 46,869,991$ 2,800,000$ (10,735,999)$ 38,933,992$ Total ALL FUNDS 177,793,413$ 277,850,596$ (302,863,202)$ 152,780,807$ 367 FY 2025-26 Proposed Budget Presentation to Council June 25, 2025 368 1.FY 2025-26 Citywide Proposed Budget 2.FY 2025-26 General Fund Proposed Budget 3.GF Reserves and Other Considerations 4.Q&A AGENDA 2 369 2025-26 Proposed Budget Citywide 370 Citywide Revenue 4 REVENUES FY 2023-24 FY 2024-25 FY 2025-26 (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted General Fund $154.6 $137.4 $145.5 $140.5 2.2% Measure W Sales Tax 15.8 16.0 14.5 14.6 -8.5% Special Revenue Funds 19.5 12.3 13.7 12.9 4.3% Impact Fee Funds 28.4 1.3 1.3 2.8 115.4% Enterprise Funds 43.3 35.0 107.7 42.2 20.8% Internal Service Funds 37.0 30.6 30.6 38.1 24.4% Debt Service Fund 11.5 13.2 13.2 13.2 0.0% Capital Improvement Funds 18.8 8.0 127.1 13.5 68.3% TOTAL $329.0 $253.9 $453.6 $277.9 -24.6% 371 Citywide Expenditure 5 EXPENSES FY 2023-24 FY 2024-25 FY 2025-26 (in millions) Actual as of 6/30/2024 Adopted Budget Adjusted Budget Proposed Budget Percent Change from FY 2024-25 Adopted General Fund $140.8 $145.4 $162.9 $152.5 4.9% Measure W Sales Tax 11.8 16.4 22.2 13.4 -18.0% Special Revenue Funds 20.1 12.5 43.5 11.9 -4.6% Impact Fee Funds 13.4 6.2 49.9 10.7 74.5% Enterprise Funds 39.2 19.0 97.4 46.9 146.6% Internal Service Funds 34.3 30.9 35.9 38.7 25.2% Debt Service Fund 11.5 13.2 13.2 13.2 0.0% Capital Improvement Funds 24.4 7.5 137.5 15.4 106.4% TOTAL $295.5 $251.1 $562.5 $302.9 0.0% 372 2025-26 Proposed Budget General Fund 373 General Fund Summary- FY 2025-26 ($ Millions) 7 Description Amount PROJECTED REVENUES $140.5 PROJECTED EXPENDITURES (152.5) Deficit ($12.0) 374 2025-26 Proposed Budget Department Requests 375 Department Supplies & Services Personnel Total General Fund Total City Attorney 65,000 -65,000 65,000 City Manager’s Office 300,000 -300,000 300,000 Finance 20,000 -20,000 20,000 Human Resources 100,000 7,200 107,200 107,200 Econ & Comm Dev 58,172 (91,520)(33,348)(33,348) Fire 550,098 500,000 1,020,098 500,098 Police 110,000 -110,000 110,000 Public Works 2,211,500 74,444 2,285,944 (5,979) Library 44,754 -44,754 44,754 Parks & Recreation 304,249 551,027 855,276 759,347 Information Technology 1,097,934 40,000 1,137,934 - Total $4,861,707 $1,081,151 $5,942,858 $1,867,072 Summary of Department Requests 9 376 Reserve & Other Considerations General Fund Reserves 377 Projected GF Available F/B (As of June 30, 2026) 11 Estimated Available GF Fund Balance (FY 25)$29.0 FY 2025-26 Projected Deficit (12.0) Projected Available GF Ending Fund Balance (FY 26)$17.0 41% Reduction 378 General Fund Reserves 12 Estimated Ending Financial Reserve for FY 2025-26 (in millions) General Reserve (20%)$27.8 Infrastructure Reserve 6.9 CalPERS Stabilization Reserve 6.2 Available Unassigned GF Balance 17.0 Total $57.9 379 Projected Reserves & Undesignated F/B – 5 years 13 12.0 M 16.5 M 18.0 M 19.5 M 21.2 M $(30) M $(20) M $(10) M - $10 M $20 M $30 M $40 M $50 M $60 M $70 M $80 M 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 20% General Reserve CalPERS Stabilization Reserve Infrastructure Reserve Available Fund Balance Draw From Reserves Min. Reserve $28M Total Deficit $87.3M 380 Resolution General Fund Budget Other Funds GANN Appropriation Limit 381 FY 2025-26 Proposed Budget City of South San Francisco QUESTIONS? 382 FY 2025-26 Proposed Budget City of South San Francisco THANK YOU 383 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-446 Agenda Date:6/25/2025 Version:1 Item #:11a. Resolution adopting the Fiscal Year 2025-26 Operating Budget and approving the Gann Appropriations Limit. WHEREAS,the City of South San Francisco’s Fiscal Year (FY)2025-26 Proposed Operating Budget reflected in the staff report and corresponding attachments is incorporated herein; and WHEREAS,the City of South San Francisco (“City”)Operating Budget shall hereafter be referred to collectively as the “Operating Budget” for purposes of adopting this Resolution; and WHEREAS,on May 20,2025,the proposed FY 2025-26 Operating Budget was presented by staff to the Budget Standing Committee of the City Council; and WHEREAS,on June 11,2025,the proposed FY 2025-26 Operating Budget was presented by staff to the City Council at the Regular Council Meeting; and WHEREAS,the members of the City Council reviewed and discussed the financial budgets at the public meetings above and specific changes were developed as a result; and WHEREAS,pursuant to Article XIIIB of the California Constitution and Section 7900 et seq.of the California Government Code,the City of South San Francisco is responsible for determination of the Appropriations limit (also known as the Gann limit) for FY 2025-26; and WHEREAS,the City is required to elect the population and price adjustment factors used to calculate the Appropriations limit at a regularly scheduled Council meeting. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that the FY 2025-26 Operating Budget is hereby approved,and hereby appropriates the funds as set forth in the staff report and attachments herein for FY 2025-26. BE IT FURTHER RESOLVED that consistent with the limitations set forth herein and the City’s Municipal Code,any and all expenditures for agreements in an amount not to exceed one hundred fifty thousand dollars ($150,000)relating to either the programs or materials contained in the FY 2025-26 Operating Budget or the Capital Budget for construction projects may be expended or entered into under authority of or by the City Manager and the payments therefore may be made by the Director of Finance. BE IT FURTHER RESOLVED that monies received during FY 2025-26 and included herein as a consequence of a grant award approved by the City Council are hereby appropriated for the purposes for which the grant has been approved.Such appropriation includes authorization for the City Manager to expend such monies and for the Director of Finance to make payments therefor in accordance with the terms and conditions and for the purpose of the grant. City of South San Francisco Printed on 6/18/2025Page 1 of 3 powered by Legistar™384 File #:25-446 Agenda Date:6/25/2025 Version:1 Item #:11a. BE IT FURTHER RESOLVED that the Director of Finance is hereby granted the authority to increase budgeted revenues and budgeted expenses in departments specifically for development related expenses such as expedited plan checks,legal reviews,traffic studies,environmental review,geotechnical studies,etc.,where the developers pay in advance for expenses that the City contracts out for.In those cases,the Director of Finance, upon receiving those deposits or payments,will increase the budget for revenues and expenses in the appropriate departments where those expenses will take place by a corresponding amount.Said transactions will have no net impact on Reserves,as revenue will offset expenses and any agreements for development related transactions may be expended or entered into under authority of or by the City Manager and the payments therefore may be made by the Director of Finance. BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized to increase budgeted revenues and expenses in departments for transactions that have a net zero impact such as donations and pass-through transactions. Said transactions will have no net impact on Reserves, as revenue will offset expenses. BE IT FURTHER RESOLVED that the Operating Budget,as set forth in Attachment 1 to this Resolution,is hereby officially adopted: •By department by fund for General Fund operating budget appropriations; and •By fund for other operating budget appropriations. BE IT FURTHER RESOLVED that,for the Appropriations limit for FY 2025-26,the City Council elects the following annual adjustment factors:(1)the percentage change in the California per capita income;and (2)the population adjustment factor for the City’s population growth. BE IT FURTHER RESOLVED that it is hereby determined that the Appropriations limit for FY 2025-26 for the City of South San Francisco,as set forth in Attachment 2 this Resolution,is $194,547,265.Appropriations subject to the limit total $122,419,426,or 62.9%of the Appropriations limit.Therefore,the City is substantially below the maximum allowable Appropriations limit and in compliance with the law. BE IT FURTHER RESOLVED that the City Manager may authorize the Director of Finance to transfer budgets during the year in accordance with generally accepted accounting principles between the following budget categories provided the overall appropriation by funding source is not increased without City Council approval: •Departments within the same fund; and •Capital projects with the same funding source or type; and •Operating and capital budgets for the same department if funded by the same funding source or type. BE IT FURTHER RESOLVED that fund balance and reserve categories in the budget are designed for decision -making and informational purposes only for the City Council,and are not intended to replace the reserve classifications supplied by the Governmental Accounting Standards Board (GASB)Statement 54 for City of South San Francisco Printed on 6/18/2025Page 2 of 3 powered by Legistar™385 File #:25-446 Agenda Date:6/25/2025 Version:1 Item #:11a. governmental funds. BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized to use professional judgment to make corrections to the adopted budget schedules if any related numbers represented on one budget schedule herein do not match the corresponding number as represented in another budget schedule herein. BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized and directed to rollover any outstanding encumbrances from Fiscal Year 2024-25 into Fiscal Year 2025-26 where sufficient budget savings otherwise allow the rollover. BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized and directed to rollover unencumbered appropriations from grants received in Fiscal Year 2024-25 or prior years if so allowed under the terms of the grant. BE IT FURTHER RESOLVED that the staffing levels for each department,as detailed in the staff report and accompanying attachments herein are hereby approved. BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized and directed to carry forward unspent Fiscal Year 2024-25 unencumbered non-recurring project budgets in the Operating Budget,such as litigation projects. BE IT FURTHER RESOLVED that the City Council appropriates all FY 2025-26 Measure W revenues and remaining cash balance to support the Council approved Measure W Projects and authorizes the Director of Finance to budget expenditures as necessary for the FY 2025-26 debt service related to the City’s Lease Revenue Bonds (Series 2020A, Series 2021A, and Series 2022A). ***** City of South San Francisco Printed on 6/18/2025Page 3 of 3 powered by Legistar™386 City of South San Francisco Fiscal Year 2025-26 Proposed Budget Proposed Version 6/25/2025- City of South San Francisco | FY2025-26 Budget Book Page 1 387 TABLE OF CONTENTS Cover and Introduction Pages 5 Transmittal Letter 6 GFOA Budget Award 13 City Organizational Chart 15 History of City 16 Demographics 19 Mission, Values and Strategic Priorities 23 Financial Policies 24 Budget Overview 34 About the Budget 35 Budget Process and Timeline 36 General Fund 10-Year Long Range Forecast 38 Fund Structure 39 Appropriations Limit 44 Budget Adoption Resolutions 45 Funding Sources 46 City-wide Revenues by Type 47 Fund Summaries 54 Budgeted Expenditures Summary - All Funds 55 Governmental - Major Funds 61 General Fund (100)62 Measure W (101)70 City Housing Fund (241)75 Developer Deposits / Contributions, Permit Program Maint Fee, General Plan Maint Fee 81 Capital Improvements (510)86 Capital Infrastructure Reserve Fund (513)91 Capital Improvements - Civic Campus Phase I - Measure W-funded (516)94 Capital Improvements - Bond-funded (515/517/518/ 519/522/523/ 524/525)96 Governmental - non-Major Funds 98 American Rescue Plan Act Special Revenue Fund (201)99 Affordable Housing Fund (205)101 Park In-Lieu Fees Fund (206/207/209)103 Gas Tax Fund (210)105 Measure A-1/2 Cent Transportation Sales Tax (211)109 Road Maintenance & Rehab (SB1) (212)113 SMC Measure W 1/2 Cent Sales Tax (213)117 Community Development Block Grant (222)121 Common Greens Maintenance Districts (231/232/ 233/234)125 Oyster Point CFD Special Tax B (236)130 Solid Waste Reduction (250)134 Supplemental Law Enforcement Services (260)139 City Programs Special Revenue Fund (280)143 Transit Station Enhancement In-Lieu Fee (290)146 City of South San Francisco | FY2025-26 Budget Book Page 2 388 APPROPRIATIONS LIMIT ------------------------------------------------------------------------------------------------------------------------------- City of South San Francisco FY 2025-26 Proposed Operating Budget APPROPRIATIONS LIMITS In 1979, California voters approved Proposition 4, known as the Gann Appropriations Limit (Gann Limit). The Gann Limit is part of California State Constitution Article XIIIB. The Gann Limit sets an annual appropriation ceiling on the amount of tax proceeds to all California municipalities. In addition to limits of tax proceeds, the Gann Limit restricts the amount of money a city can appropriate based on the previous year appropriations plus a per capita personal income (CPI) change and a percent population change. Since its initial passage, the Gann Limit has been modified through various propositions. The voters approved the most recent modification in 1990 under Proposition 111. Proposition 111 exempted some appropriations such as Redevelopment money and changed the calculation formula, which greatly increased the appropriations limit. Currently, the City of South San Francisco uses the California Department of Finance percentage change of Per Capita Cost of Living and percent population change to formulate the Gann Limit for the City for each fiscal year. 738 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-443 Agenda Date:6/25/2025 Version:1 Item #:12. Report regarding a resolution approving interim spending authority for the first 90 days of Fiscal Year 2025-26 (Karen Chang, Director of Finance) RECOMMENDATION It is recommended that the City Council of the City of South San Francisco adopt a resolution providing interim spending authority for the first 90 days of the Fiscal Year,in the event the proposed Fiscal Year 2025-26 operating budget is not approved on June 25, 2025. BACKGROUND/DISCUSSION The City’s authority to expend funds,granted under prior budget resolutions,expires on June 30,2025.A resolution must be passed to allow for continued operations until the budget is adopted,in the event that the Fiscal Year (FY)2025-26 budget is not adopted on June 25,2025.The proposed resolution allows the FY 2024- 25 operating budget to be continued for a period of 90 days for staffing and appropriations,which would be prorated accordingly. CONCLUSION Adopting this resolution allows the City to continue operation in a fiscally sound manner until a final budget is passed. City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™739 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-444 Agenda Date:6/25/2025 Version:1 Item #:12a. Resolution approving interim spending authority for the first 90 days of Fiscal Year 2025-26. WHEREAS,the City’s authority to expend funds granted under prior budget resolutions,expires June 30,2025; and WHEREAS,a resolution must be passed to allow for continued operations until the budget is adopted,in the event that the budget is not adopted on June 25, 2025; and WHEREAS,the proposed resolution allows the Fiscal Year 2024-25 operating budget to be continued for a period of 90 days into Fiscal Year 2025-26 for staffing and appropriations,which would be prorated accordingly. NOW,THEREFORE,BE IT RESOLVED,that the City Council of the City of South San Francisco does hereby approve interim spending for the first 90 days of the Fiscal Year in the event the Fiscal Year 2025-26 operating budget is not approved on June 25, 2025. BE IT FURTHER RESOLVED that all amounts necessary for the continued operation of the City for the ninety (90)day period set forth in the preceding paragraph are hereby appropriated for expenditure.Such appropriation shall be based upon the Fiscal Year 2024-25 Operating Budget in a ratio of 365 to 90. ***** City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™740 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-204 Agenda Date:6/25/2025 Version:1 Item #:13. Report regarding a resolution approving the proposed Capital Improvement Program for fiscal year 2025-26. (Eunejune Kim, Director of Public Works/City Engineer and Matthew Ruble, Principal Engineer) RECOMMENDATION It is recommended that the City Council of the City of South San Francisco adopt a resolution approving the Capital Improvement Program (CIP)for Fiscal Year 2025-26,including appropriations request of $24.03 million;authorizing City staff to prepare plans and specifications and to advertise for construction bids for the projects under this program;incorporating the deferral and/or formal closure of select prior-year projects resulting in the reimbursement of $12.68 million in prior-year funding;and approve Budget Amendment Number 25.060 to the FY 2024-25 budget to reflect the reallocation. BACKGROUND/DISCUSSION The proposed Capital Improvement Program (CIP)for fiscal year (FY)2025-26 was first reviewed by the Budget Standing Committee of the City Council,consisting of Mayor Flores and Vice-Mayor Addiego,on May 20,2025,followed by a City Council study session on June 11,2025.The proposed FY 2025-26 CIP incorporates the guidance and feedback provided by the City Council during these reviews.In accordance with Government Code Section 65401,the Planning Commission also reviewed the CIP on June 5,2025,and adopted a resolution finding the CIP consistent with the General Plan. The CIP outlines major capital expenditures and infrastructure improvement projects throughout the City, continuing investments in city streets,storm drains,sanitary sewers,facilities,parks,and traffic systems.Each year,City departments identify critical needs and prioritize project implementation when preparing the CIP to ensure resources are aligned with the City’s long-term goals. City staff considers the following criteria when selecting projects for inclusion in the CIP: •Grant-funded projects requiring a City contribution. •Previously approved projects under construction or contract. •Projects required for regulatory compliance. •Projects to maintain or upgrade existing City infrastructure. •Projects with no General Fund allocations. •Projects requested by the community or City departments. •Projects that can be reasonably delayed, are complete, or are no longer necessary. Based on these guidelines,staff proposes the following fiscal year (FY)2025-26 CIP budget appropriations. The proposed FY 2025-26 CIP budget is $232.82 million,with $24.03 million of new appropriations and approximately $208.79 million of previous year appropriations for continuing projects.Additionally,the City City of South San Francisco Printed on 6/18/2025Page 1 of 7 powered by Legistar™741 File #:25-204 Agenda Date:6/25/2025 Version:1 Item #:13. approximately $208.79 million of previous year appropriations for continuing projects.Additionally,the City has identified $12.68 million which can be redirected back to the City’s budget to help support the CIP budget needs for FY 2025-26 and out-years. The FY 2025-26 CIP includes 184 projects,24 of which are requesting new appropriations for FY 2025-26.Of the 184 projects, there are 10 new projects and 174 continuing projects. The CIP is comprised of six (6) project types: •Public Facilities •Parks •Storm Drains •Sanitary Sewer •Streets •Traffic The following overview identifies proposed new projects and additional appropriation requests for continuing projects. Public Facilities Projects - These projects renovate, construct, and improve City buildings and infrastructure. New appropriations request: There are no new public facilities appropriation requests for Fiscal Year 2025-26. Total New Public Facilities Appropriation Requests = $0 Parks Projects -These projects replace and improve playgrounds,renovate sports fields,and expand parks at City-owned public spaces. New appropriations request: ·(pk2301)Orange Memorial Park Main Playground Replacement (BONDS)-Surfacing and equipment replacement of main playground at Orange Memorial Park.Equipment to be replaced with inclusive elements for all-abilities. - $865,073.24 ·(pk2302) Centennial Trail Improvements - Construct park spaces along Centennial Trail. - $1,666,279 ·(pk2305)Linden Park Project -Project to transform two adjacent vacant lots into a vibrant neighborhood park and cultural plaza for our community to enjoy. - $300,000 ·(pk2501)Dedicated Pickleball Courts -Addition of Pickleball courts to Orange Park;additional costs to add noise attenuation and improved surfacing. - $400,000 ·New project (pk2601)Cypress and Pine Park Renovation Project -Improve and rehabilitate the existing Cypress and Pine Park with new play features,furnishings,landscape,and other improvements.- City of South San Francisco Printed on 6/18/2025Page 2 of 7 powered by Legistar™742 File #:25-204 Agenda Date:6/25/2025 Version:1 Item #:13. $3,000,000 ·New project (pk2602)Playground Surfacing City Hall Tot Lot,Avalon Park,Westborough Park - Replacement of rubberized surfacing that has reached end of life and is degraded beyond patch repairs.- $180,000 Total New Parks Appropriation Requests = $6,411,352.24 Storm Drain Projects -Projects repair and improve storm drains and infrastructure to reduce pollution run-off into the San Francisco Bay. New appropriations request: ·(sd1801)Orange Memorial Park Stormwater Capture Project -Design and construct a storm water capture device including pre-treatment system. - $20,000 Total New Storm Drain Appropriation Requests = $20,000 Sanitary Sewer Projects -Projects maintain the WQCP,collection system pumps stations,and sanitary sewer lines within the City. New appropriations request: ·(ss2202)Oyster Point Pump Station -The project will design and construct a new pump station to support the development at Oyster Point. - $2,850,000 ·New project (ss2601)Sanitary Sewer Rehab FY 2025-26 -Annual systematic rehabilitation of the sewer system gravity lines by sewer basins as determined by the sewer master plan and recent video inspection efforts prior to Surface Seal Area 2. - $5,800,000 ·New project (ss2602)Harbor Way Sewer Main Upsize -Upgrade of sewer main due to capacity constraints. - $500,000 ·New project (ss2603)Sanitary Sewer Pump Station Master Plan -Condition and Capacity assessment of all Pump Stations and associated force mains. - $500,000 Total New Sanitary Sewer Appropriation Requests = $9,650,000 Streets Projects -These projects repair bridges,resurface streets,improve medians and sidewalks,and study the feasibility of proposed roadway and rail extensions. New appropriations request: ·(st1703)Bridge Preventative Maintenance Program -This project will conduct preventative maintenance on nine (9)city-maintained bridges including:Colma Creek Bridge at Produce Avenue, Canal Bridge at Linden Avenue,two (2)bridges over San Bruno Channel over North Access Road, Colma Creek Bridge at Spruce Avenue,Colma Creek Bridge at Utah Avenue,Grand Ave.and San Bruno Channel over North Access Road. - $200,000 ·(st1904)Underground Utilities District (UUD)Rule 20A for Mission Road -Establish an Underground Utility District on Mission Road from Grand Avenue to connect with underground utilities at the South San Francisco BART south entrance.Additional funding is required to replace city-owned street City of South San Francisco Printed on 6/18/2025Page 3 of 7 powered by Legistar™743 File #:25-204 Agenda Date:6/25/2025 Version:1 Item #:13. lighting. - $1,500,000 ·(st2301)Junipero Serra Boulevard/Westborough Boulevard Corridor Feasibility Project -To fund the planning of the Junipero Serra Blvd and Westborough Blvd Bike and Ped improvements as identified in the Active South City Plan - $200,000 ·(st2505)2026 Surface Seal Project -This project will provide asphalt pavement maintenance from design through construction in Area 2 (Sierra Highlands neighborhood)of the Pavement Management Program (PMP). - $3,300,000 ·New project (st2601)Tanforan Ave Reconstruction -Reconstruction of Tanforan Ave between San Mateo Ave and Railroad Place. - $100,000 ·New project (st2602)Citywide Misc Striping -This project includes the installation,replacement,and maintenance of roadway striping and pavement markings at various locations citywide. - $300,000 ·New project (st2603)Citywide Trip Hazard -Funds to be used to mitigate trip hazards identified as part of the trip hazard assessment. - $150,000 ·New project (st2604)2027 Surface Seal -Street surface treatments with base repairs in preparation of 2027 surface seal project. - $200,000 ·New project (st2605)2026 Pavement Repair and Crack Seal -A preventive maintenance program that includes repairs to localized defective pavement areas and crack sealing - $1,000,000 Total New Streets Appropriation Requests = $6,950,000 Traffic Projects -These projects focus on arterials,corridors,and key intersections within the City,including adaptive traffic signals to provide better traffic flow,improve pedestrian safety,traffic calming,and better bicycle rider safety on City streets. New appropriations request: ·(tr2002)Smart Corridor -Implementation of Intelligent Transportation System (ITS)along segment of 101 corridor north of I-380. - $350,000 ·(tr2301)Miscellaneous Traffic Improvements -Design &construct any traffic related improvements in the City,such as striping,signs,and other traffic calming measures from the Traffic Advisory Committee, Neighborhood meetings or as needed. - $250,000 ·(tr2406)Traffic Studies and Grant Support -Support for any traffic-related studies from the Traffic Advisory Committee,Neighborhood meetings or as needed,and support for grant applications as needed. - $100,000 ·(tr2415) Colma/SSF ECR Bicycle & Ped Improvement - Part of Bike/Ped master plan - $300,000 Total New Traffic Appropriation Requests = $1,000,000 Infrastructure Reserve Refund:To release financial resources for urgent needs,the City has decided to release Infrastructure Reserves previously allocated to four projects,three of which will be closed.This action City of South San Francisco Printed on 6/18/2025Page 4 of 7 powered by Legistar™744 File #:25-204 Agenda Date:6/25/2025 Version:1 Item #:13. will enable the City to redirect funds toward projects that require immediate attention. ·(st1803) Street Lighting Enhancement - ($200,000) RELEASE ·(st1805) ECR Gateway Sign & Median Improvement (Noor/Spruce) - ($42,985.38) CLOSED ·(st2002) Survey Monument - ($125,000) RELEASE ·(st2305) CDBG Curb Ramp Replacement - ($150,025.86) CLOSED TOTAL REFUND TO Infrastructure Reserve = $518,011.24 Sewer Enterprise Fund Refund:To support sustainable resource management,the City has thoroughly reviewed current and upcoming projects dependent on Sewer Enterprise Funds.As a result,four projects are recommended for closure and nine for deferral.Additionally,two projects will be reclassified and moved to the Capital Outlay Fund.These actions will release a total of $11.87 million back into the Sewer Enterprise Fund to support critical needs in FY 2025-26 and future years. ·(ss1301) WQCP Wet Weather and Digester Improvements - ($564,441.59) CLOSED ·(ss1601) Sodium Hypochlorite Tank Replacement - ($57,201.08) CLOSED ·(ss1703) WQCP Secondary Clarifiers #1 & #2 Rehabilitation - ($1,316,576.22) CLOSED ·(ss1704) WQCP Effluent Storage Basin Liner Replacement - ($855,993.07) CLOSED ·(ss1307) Plant Wide Industrial Re-Coat - ($2,000,000) RELEASE ·(ss2302) WQCP Sludge Dewatering Improvements - (1,393,290) RELEASE ·(ss1205) WQCP Solar PV - ($270,356.94) DEFER ·(ss1901) Pump Station Industrial Re-Coating Program - ($2,125,266.56) DEFER ·(ss2301) WQCP Diffused Air Flotation Thickener - ($548,100) DEFER ·(ss2404) Programmable Logic Controller Replacement -WQCP - ($1,498,140) DEFER ·(ss2407) SB1383 Organic Diversion Mandate Compliance - ($73,080) DEFER ·(ss2408) Biosolids Drying & Recycling- Project #2 - ($73,080) DEFER ·(ss2501) Sanitary Pump Stations 5, 6, 7 Upgrade - ($219,240) DEFER TOTAL REFUND to Sewer Enterprise Fund = $10,994,765.46 Additional Project Closures/Refunds: The City has also identified three additional projects for adjustment across other funding sources.One project will be closed,resulting in an additional release of $1,165,073.24.These actions are intended to align remaining project balances with evolving capital priorities and funding needs. ·(pf2205) Oyster Pt Phase 2C Parking Lot Improvement - ($150,000) RELEASE City of South San Francisco Printed on 6/18/2025Page 5 of 7 powered by Legistar™745 File #:25-204 Agenda Date:6/25/2025 Version:1 Item #:13. ·(pf2206) Oyster Pt Phase 2C Landscape Improvement - ($150,000) RELEASE ·(pk2309) OMP Sports Field Renovation (BONDS 522) - ($865,073.24) CLOSE TOTAL REFUND to Other = $1,165,073.24 CEQA REVIEW Adoption of the CIP is not a “project”subject to review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15378(b)(4) of the State CEQA Guidelines FUNDING The staff report outlines the proposed FY 2025-26 CIP budget allocations,totaling $232.82 million.This includes $24.03 million in new appropriations and approximately $208.79 million carried over from prior years for ongoing projects.To further support the City's financial needs in the current and upcoming fiscal years, $12.68 million has been identified for reallocation from the Infrastructure Reserve,Sewer Enterprise Fund,and other funding sources.Specific projects recommended for funds release,closure,or deferral are outlined in Attachment 3:Proposed Project Closures and Deferrals.These adjustments enable the City to redirect resources toward higher-priority needs.Projects identified for closure or deferral are not included in the FY 2025-26 Budget Book.However,deferred projects may be revisited and resubmitted as new proposals in future CIP cycles, depending on evolving priorities and funding availability. Attachment 1:CIP Proposed Budget Book FY 2025-26 includes the full set of proposed projects and appropriations.Attachment 2:Funding Source Report FY 2025-26 provides a detailed breakdown of funding allocations by project and funding source,including visual summaries showing the distribution of the $24.03 million in new appropriations by source and project type. These actions reflect the City’s ongoing commitment to responsible fiscal management and continued investment in infrastructure that serves South San Francisco’s residents, businesses, and visitors. RELATIONSHIP TO STRATEGIC PLAN Approval of this action will contribute to the City’s Strategic Plan outcome of improved Quality of Life by maintaining and improving infrastructure to serve the public. CONCLUSION It is recommended that the City Council adopt a resolution approving the CIP for FY 2025-26,approving $24.03 million in new appropriations,authorizing City staff to prepare plans and specifications and advertise for construction bids for the projects under this program,and approving the reimbursement of $12.68 million from prior-year funding along with Budget Amendment No. 25.060 to reflect the reallocation. Attachments: 1.Attachment 1 - CIP Proposed Budget Book FY 25-26 2.Attachment 2 - Funding Source Report FY 25-26 City of South San Francisco Printed on 6/18/2025Page 6 of 7 powered by Legistar™746 File #:25-204 Agenda Date:6/25/2025 Version:1 Item #:13. 3.Attachment 3 - Proposed Project Closures and Deferrals 4.Attachment 4 - PowerPoint Capital Improvement Program FY 25-26 City of South San Francisco Printed on 6/18/2025Page 7 of 7 powered by Legistar™747 Funding Source Project Number Request Title FY2026 Bonds/Loans pk2301 pk2301 Orange Memorial Park Main Playground Replacement (BONDS)$865,073.24 Total Bonds/Loans $865,073.24 Citywide Traffic Impact Fee tr2415 tr2415 COLMA/SSF ECR BICYLE & PED IMPROVEMENT $300,000.00 tr2002 tr2002 Smart Corridor $350,000.00 tr2406 tr2406 Traffic Studies and Grant Support $100,000.00 tr2301 tr2301 Miscellaneous Traffic Improvements $250,000.00 st2301 st2301 Junipero Serra Boulevard/Westborough Boulevard Corridor Feasibility Project $200,000.00 Total Citywide Traffic Impact Fee $1,200,000.00 East of 101 Sewer Impact Fee ss2603 ss2603 Sanitary Sewer Pump Station Master Plan $500,000.00 ss2602 ss2602 Harbor Way Sewer Main Upsize $500,000.00 ss2202 ss2202 Oyster Point Pump Station $2,400,000.00 Total East of 101 Sewer Impact Fee $3,400,000.00 Gas Tax st2602 st2602 Citywide Misc Striping $120,000.00 st2601 st2601 Tanforan Ave Reconstruction $100,000.00 Total Gas Tax $220,000.00 Infrastructure Reserves pk2602 pk2602 Playground Surfacing City Hall Tot Lot, Avalon Park, Westborough Park $180,000.00 sd1801 sd1801 Orange Memorial Park Stormwater Capture Project $20,000.00 st1904 st1904 Underground Utilities District (UUD) Rule 20A for Mission Road $1,500,000.00 st1703 st1703 Bridge Preventative Maintenance Program $200,000.00 Total Infrastructure Reserves $1,900,000.00 Measure A st2605 st2605 2026 Pavement Repair and Crack Seal $500,000.00 st2604 st2604 2027 Surface Seal $200,000.00 st2603 st2603 Citywide Trip Hazard $150,000.00 st2602 st2602 Citywide Misc Striping $180,000.00 st2505 st2505 2026 Surface Seal Project $1,000,000.00 Total Measure A $2,030,000.00 Other (Public Arts-In-Lieu Fee)pk2305 pk2305 Linden Park Project $300,000.00 Total Other Funding Sources $300,000.00 Park Land Construction pk2601 pk2601 Cypress and Pine Park Renovation Project $3,000,000.00 pk2302 pk2302 Centennial Trail Improvements $1,666,279.00 pk2501 pk2501 Dedicated Pickleball Courts $400,000.00 Total Park Land Construction $5,066,279.00 Road Maintenance Acct (SB1)st2505 st2505 2026 Surface Seal Project $2,300,000.00 Total Road Maintenance Acct (SB1)$2,300,000.00 SMC Measure W st2605 st2605 2026 Pavement Repair and Crack Seal $500,000.00 998 Total SMC Measure W $500,000.00 Sewer Enterprise ss2601 ss2601 Sanitary Sewer Rehab FY 2025-26 $5,800,000.00 ss2202 ss2202 Oyster Point Pump Station $150,000.00 Total Sewer Enterprise $5,950,000.00 Successor Agency Funds ss2202 ss2202 Oyster Point Pump Station $300,000.00 Total Successor Agency Funds $300,000.00 Total Funding Sources 24,031,352.24 999 Fund Type Project ID Project Name Refund Amount Action Infrastructure Reserve st1803 Street Lighting Enhancement 200,000.00$ Release Infrastructure Reserve st1805 ECR Gateway Sign & Median Improvement (Noor/Spruce)42,985.38$ Close Infrastructure Reserve st2002 Survey Monument 125,000.00$ Release Infrastructure Reserve st2304 CDBG Curb Ramp Replacement 150,025.86$ Close TOTAL – Infrastructure Reserve 518,011.24$ Sewer Enterprise Fund ss1301 WQCP WET WEATHER AND DIGESTER IMPRVMTS 564,441.59$ Close Sewer Enterprise Fund ss1601 SODIUM HYPOCHLORITE TANK REPLACEMENT 57,201.08$ Close Sewer Enterprise Fund ss1703 WQCP SECONDARY CLARIFIERS #1 & #2 REHAB 1,316,576.22$ Close Sewer Enterprise Fund ss1704 WQCP EFFLUENT STORAGE BASIN LINER RPLMNT 855,993.07$ Close Sewer Enterprise Fund ss1307 PLANT WIDE INDUSTRIAL RE-COAT 2,000,000.00$ Release Sewer Enterprise Fund ss2302 WQCP SLUDGE DEWATERING IMPROVEMENTS 1,393,290.00$ Release Sewer Enterprise Fund ss1205 WQCP SOLAR PV 270,356.94$ Defer Sewer Enterprise Fund ss1901 Pump Station Industrial Re-Coating Prog 2,125,266.56$ Defer Sewer Enterprise Fund ss2301 WQCP DIFFUSED AIR FLOTATION THICKENER RE 548,100.00$ Defer Sewer Enterprise Fund ss2404 PROGRAMMABLE LOGIC CONTROLLER REPL-WQCP 1,498,140.00$ Defer Sewer Enterprise Fund ss2407 SB1383 ORGANIC DIVERSION MANDATE COMP 73,080.00$ Defer Sewer Enterprise Fund ss2408 BIOSOLIDS DRYING & RECYCLING- PROJ #2 73,080.00$ Defer Sewer Enterprise Fund ss2501 Sanitary Pump Stations 5, 6, 7 Upgrade 219,240.00$ Defer TOTAL - Sewer Enterprise 10,994,765.46$ Successor Agency pf2205 OYSTER PT PHASE 2C PARKING LOT IMPROV.150,000.00$ Release Successor Agency pf2206 OYSTER PT PHASE 2C LANDSCAPE IMPROVEMENT 150,000.00$ Release Loan/Debt Proceeds pk2309 OMP SPORTS FIELD RENOVATION (BONDS 522)865,073.24$ Close TOTAL-Other 1,165,073.24$ Proposed Project Closures and Refunds 1000 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-205 Agenda Date:6/25/2025 Version:1 Item #:13a. Resolution approving the Capital Improvement Program for Fiscal Year 2025-26,approving the appropriations request of $24.03 million,authorizing City staff to prepare plans and specifications and advertise for construction bids for the projects under this program,and approving Budget Amendment Number 25.060 authorizing the amendment to the Fiscal Year 2024-25 budget to reallocate $12.68 million from prior-year funding. WHEREAS,the City Council of the City of South San Francisco desires to adopt the Capital Improvement Program (CIP)for Fiscal Year (FY)2025-26 and authorize City staff to prepare plans and specifications for projects under this CIP in order to advertise for construction bids and/or related requests for proposals; and WHEREAS,the CIP outlines proposed appropriations for FY 2025-26,identifies prior-year projects recommended for closure,deferral,or fund release resulting in available funding that can be redirected toward higher-priority needs,and notes the project funding in future years which will be appropriated and approved through future budget cycles; and WHEREAS,the CIP was reviewed by the Budget Standing Committee of the City Council on May 20,2025, and by the full City Council in a study session on June 11, 2025; and WHEREAS,the Planning Commission reviewed the CIP on June 5,2025,and adopted a resolution finding the CIP consistent with the City’s General Plan pursuant to Government Code Section 65401; and WHEREAS,this CIP is consistent with the requirements of Government Code Section 66002,and includes the approximate location,size,time of availability,and cost estimates for facilities or improvements to be financed with those fees imposed pursuant to Government Code Section 66001, et seq.; and WHEREAS,the adoption of the CIP is not a “project”subject to review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15378(b)(4) of the State CEQA Guidelines; and WHEREAS, the FY 2025-26 CIP budget includes $24.03 million in new appropriations; and WHEREAS,the CIP identifies $12.68 million in prior year funding available for reallocation through project closures,deferrals,and fund releases,which is recommended to be processed as a budget amendment to the FY 2024-25 Adopted Budget; and WHEREAS,approval of the CIP budget authorizes staff to apply for grant funding for projects within this program, provided sufficient funding exists in the current CIP budget for any required matching funds; and WHEREAS,any grant application consistent with the CIP requiring a City funding match beyond the currently approved budget will be brought back to City Council for separate consideration and approval. NOW,THEREFORE,BE IT RESOLVED,that the foregoing recitals are true and correct and made a part of this resolution. BE IT FURTHER RESOLVED,that the City Council of the City of South San Francisco hereby approves the Capital Improvement Program for FY 2025-26 and adopts new appropriations totaling $24.03 million,with City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™1001 File #:25-205 Agenda Date:6/25/2025 Version:1 Item #:13a. Capital Improvement Program for FY 2025-26 and adopts new appropriations totaling $24.03 million,with project details as outlined in the CIP document and funding details as outlined below: Fund 210 Gas Tax Fund $ 220,000.00 Fund 211 Measure A -1/2 Transportation Sales Tax $ 2,030,000.00 Fund 212 Road Mntc & Rehab (SB1) $ 2,300,000.00 Fund 213 SMC Measure W 1/2 Cent Sales Tax $ 500,000.00 Fund 513 Capital Infrastructure Reserve Fund $ 1,900,000.00 Fund 522 Capital Imprv Ballfield Bond Fund $ 865,073.24 Fund 710 Sewer Enterprise Fund $ 5,950,000.00 Fund 806 Park Construction Fee $ 5,066,279.00 Fund 810 E. of 101 Sewer Impact Fees Fund $ 3,400,000.00 Fund 825 Citywide Transportation Impact Fee $ 1,200,000.00 Fund 827 Public Arts-In-Lieu Fee $ 300,000.00 Fund 861 Successor Agency $ 300,000.00 BE IT FURTHER RESOLVED,that the City Council authorizes City staff to prepare plans and specifications for projects under this program and to advertise for construction bids and/or related requests for proposals. BE IT FURTHER RESOLVED,that the City Council authorizes a budget amendment to the Fiscal Year 2024- 25 budget in the amount of $12.68 million to reflect the reallocation of prior-year funding resulting from the formal closure,deferral,or fund release of selected projects as outlined in Attachment 1 -Proposed Project Closures and Refunds, and hereby approves Budget Amendment Number 25.060. BE IT FURTHER RESOLVED,that the City Council authorizes staff to apply for grant funding for any project within the CIP, provided that sufficient matching funds are available within the existing approved budget. BE IT FURTHER RESOLVED,that any grant requiring a City match beyond the currently approved CIP budget shall be brought to the City Council for separate review and approval. BE IT FURTHER RESOLVED,that the City Council authorizes the City Manager,Director of Finance,or their designee to take any actions necessary consistent with the intent of this resolution and associated staff report. ***** City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™1002 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-707 Agenda Date:6/25/2025 Version:1 Item #:14. Report regarding a resolution waiving all fees associated with City permits for the Oyster Point Marina -West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541)project to be funded and performed by the San Mateo County Harbor District.(Sharon Ranals, City Manager) RECOMMENDATION It is recommended that the City Council adopt a resolution waiving all fees associated with City permits for the Oyster Point Marina -West Basin Access Improvements (Permit Numbers B25-1175 and E25- 0541) project to be funded and performed by the San Mateo County Harbor District. BACKGROUND/DISCUSSION Since 1977 the San Mateo County Harbor District has operated and improved the Oyster Point Marina under a no-cost agreement between the Harbor District and the City of South San Francisco.The responsibilities of the Harbor District include operations,maintenance,management,and enforcement of applicable rules and regulations of the marina which include floating docks,public fishing pier,and the landside area of the marina property.The 2018 Agreement,which is the current agreement,is due to expire in 2033,with two automatic 10- year extensions. For several years,the City and Harbor District were aware of the need to raise the fixed dock entry points that act as the land-side connection points of the floating docks.The dock entrances are inundated with seawater during plus tide (King Tides)events,forcing boaters and other dock users to wade through 4-6”of water to navigate between the floating docks and the shoreside landing.Staff expect climate change-related sea level rise, larger winter storms, and continued landfill subsidence to further exacerbate the problem. Per the agreement,the Harbor District is responsible for the dock systems at Oyster Point Marina,including the connection of the docks to the landside connection points. The agreement also provides that the City is solely responsible for monitoring and protecting against landside inundation caused by sea level rise and/or landfill subsidence.Further,the City is solely responsible,including taking corrective actions, for damage caused by landfill subsidence. In light of the shared responsibility for raising the fixed dock entry points,in 2019 the City proposed partnering with the Harbor District to raise the dock entrances during the build out of the Kilroy Oyster Point 1C when the rest of the adjacent park and Bay Trail were improved. The Harbor District began construction on this critical improvement in May 2025 and construction is expected to continue through October 2025.The City Manager requests that Council consider waiving the ordinance- mandated permit and inspection fees because the improvements are being made to a City-owned asset and the Harbor District is a valued partner in the management of that asset, Oyster Point Marina. As with all proposed construction projects,the permit fees are calculated based on the value of the construction. With a total construction value based on an awarded bid of $3,395,611 (27%of the Harbor District’s Annual Budget),the Building Division calculated a total of $90,606.91 for plan review,inspections,and associated City of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™1253 File #:25-707 Agenda Date:6/25/2025 Version:1 Item #:14. fees. The break down as follows: Building Permit B25-1175 - All Plan Reviews, Inspections, and Fees $80,644.87 Encroachment Permit E25-0541 $9,962.04 $90,606.91 As is customary for plan review,a portion of these fees will cover the cost of consulting engineers to perform plan check review and construction inspections.The Building Division estimates $1,410 in direct costs for consultant fees for drawing review,while Engineering anticipates all their $14,962.04 in fees will go to paying consulting engineers for both drawing review and site inspections.Fire also expects to pay $4,363.74 for drawing review,for a total of approximately $20,735.78 in direct costs.As is standard practice,Building and Fire staff will perform all required inspections for work in their purview while Engineering will utilize consultants for inspections. In the spirit of partnership,the City’s and Harbor District’s shared obligations with regard to the fixed dock entry points,and the benefit received by the City that would result from this project,the City Manager proposes waiving all associated permit fees for the project. FISCAL IMPACT While most of the $90,606.91 waiver would impact the City as a loss of revenue,approximately $20,735.78 would be spent directly on expenses related to the project.Staff recommend the Infrastructure Reserve Fund as a source for these expenditures. RELATIONSHIP TO STRATEGIC PLAN Approval of this action will contribute to the City’s Strategic Plan.It aligns with Priority #2,which is focused on enhancing quality of life by building and maintaining a sustainable city,making our city a great place to live, learn and play. CONCLUSION Staff recommends that the City Council adopt a resolution to waive all fees for permits related to the Oyster Point Marina -West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541)project to be funded and performed by the San Mateo County Harbor District. Attachments: 1.Estimated Building Permit Fees (#B25-1175) 2.Estimated Encroachment Permit Fees (#E25-0541) City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™1254 Date:6/1/2025 Reference Number B25-1175 Building Division 315 Maple Ave. South San Francisco, CA 94080 Office: (650) 829-6670 Fax: (650)829-6672 INVOICE SAN MATEO COUNTY HARBOR DISTRICT 504 AVENUE ALHAMBRA 2ND FLOOR EL GRENADA, CA 94018 Warning: fees provided are a reflection of the current fee schedule in place. Failure to promptly pay may result in increased fees if a revised fee schedule is adopted prior to payment. Note: Updated fees effective July 1st of every year Reference Number B25-1175 Inspection Address 95 Harbormaster RD 1 Inspection Type COMMERCIAL Status ISSUED Total Fees Required Total Fees Paid or Credited $80,644.87 $0.00 Description of Fee Account Number Amount COMMERICAL INDUSTRIAL MULTIFAMILY MEP PER TRADE $1,348.36 ELECTRICAL 100-10520-32106 $674.18 MECHANICAL 100-10520-32108 $674.18 BUILDING PLAN REVIEW - PLANNING 100-10520-32116 $2,430.01 MULTI-FAMILY COMMERCIAL INDUSTRIAL NEW OR TENANT IMPROV 100-10520-32116 $2,430.01 ENGINEERING SITE REVIEW 100-13210-32102 $5,000.00 BUILDING PERMIT FIRE REVIEW - PLAN CHECK (3 REVIEWS) 100-11210-32202 $8,727.47 COMMERCIAL PLAN CHECK FEES $11,223.32 COMMERICAL PLAN CHECK FEES UNDER 50000 100-10410-35103 $11,223.32 BUILDING PERMIT FIRE REVIEW - INSPECTIONS 100-11210-32201 $14,893.40 COMMERICAL INDUSTRIAL MULTIFAMILY PERMIT 100-10520-32101 $17,357.18 MANDATORY COMMERICAL FEES $19,665.13 STATE MANDATED TRAINING COMMERICAL 280-27465 $8.00 CBSC COMMERCIAL 100-10520-32111 $136.00 WASTE MANAGEMENT 1PCT FEE - COMMERICAL 100-99999-32101-101027 $173.57 COMMERICAL TECHNOLOGY FEE 271-00000-35105 $347.14 CONSTRUCTION COORDINATION FOR ACTIVE BUILDING PERMITS 100-10520-32116 $867.86 CLIMATE ACTION SURCHARGE - COMMERICAL 100-10520-32111 $882.86 SMIP COMMERCIAL 280-21715 $950.77 1255 BUSINESS LICENSE TAX 100-00000-30403 $6,112.10 GENERAL PLAN COMMERICAL MAINTENANCE FEE 270-00000-35101-101025 $10,186.83 Amount Due $80,644.87 1256 Encroachment Permit Information LOCATION OF WORK:95 Harbormaster Rd PERMIT NO: E25-0541 This City of South San Francisco (“City”) Encroachment Permit (“Permit”) is issued in accordance with Title 13 of the South San Francisco Municipal Code. Permittees and their agents are granted permission to enter the public Right-of-Way to perform work as described in the issued permit subject to these Standard Conditions and any additional Special Conditions. Permittees agree that any work performed under this Encroachment Permit constitutes acceptance of the Standard Conditions and Special Conditions of this permit. Scope of Work within Public Right-of-Way *Attached plans and/or references to City Standards* City to inspect construction laydown area and hauling route. Please See Page 2 for List of Fees and Deposits Refund To:Bond Amount: Permitee Information This permit is accepted by the Applicant and Contractor who agree to comply with and be bound by the terms thereof, and this permit shall bind the Permittees, their assigns, and successors in interest. Applicant Name/Firm:BELLINGHAM MARINE INDUSTRIES INC Address:8810 SPARLING LANE, DIXON, CA Zip:95620 Phone:7076782385 Email:cmartin@bellingham-marine.com Contractor Name/Firm: BELLINGHAM MARINE INDUSTRIES INC Address:8810 SPARLING LANE, DIXON, CA Zip:95620 Phone:(707)678-2385 Email:cmartin@bellingham-marine.com City Approval and Permit Issuance The scope of work is approved, and this Permit is issued with the attached standard and special conditions. Permit Issue Date: 5/28/2025 Permit Expiration Date: 5/28/2026 5/28/2025 City Engineer / Designee Date Specific Requirements: Final Sign-off Public Works Inspector Date City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1257 FEES AND DEPOSITS Fee Type Charged Paid ENGINEERING MISCELLANEOUS $3,524.00 $0.00 STANDARD ENCROACHMENT DEPOSIT $5,000.00 $0.00 ENCROACHMENTS PERMIT AND INSPECTION COST OF ROW IMPROVEMENTS $1,438.04 $0.00 $9962.04 $0.00 City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1258 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 1 STANDARD REFERENCES: All work performed in the City Right-of-Way shall conform to the following standards unless otherwise approved: · “Greenbook” Standard Specifications for Public Works Construction, 2018 Edition · Caltrans Standard Plans, 2018 Edition and October 2019 Revisions · Caltrans Standard Specifications, 2018 Edition and October 2019 Revisions · California Manual on Uniform Traffic Control Devices, 2014 Revision 4 Edition · City of South San Francisco Standard Details · City of South San Francisco Standard Design Guidelines 2 BOUNDARY LIMITS: This Permit is limited to the “Property” defined as public Right-of-Way or City owned parcel described in the application and plans, subject to all existing licenses, easements, encumbrances, leases, and claims of title. 3 PURPOSE: Permittee certifies that it has the legal authority to occupy and use the public right of way for the purpose stated in the application. This nonexclusive and temporary Permit is limited to the purpose stated in the application. Any installation, maintenance, or operation of facilities in the public right of way requires the Permittee/Owner to execute an Encroachment and Maintenance Agreement or a similar form of agreement with the City. Neither this Permit nor any work done by Permittee shall create a vested right of Permittee to occupy or utilize the public right of way. If any prior encroachment permit conflicts with the proposed work, Permittee shall arrange for any necessary removal or relocation with the prior permittee if willing at no expense to the City. 4 TERM: The term of this Permit is as set forth in the application. This Permit shall be void if construction has not begun within ninety (90) calendar days of the date of the Permit Issuance. This permit is revocable immediately upon notice by the City Engineer or their designee. Upon revocation or expiration of this Permit, Permittee shall suspend all activity within the Property and shall be responsible for the repair of any damage to City property caused by Permittee, as directed by City. 5 FEES: Permittee certifies that neither it nor the owner of any facilities to be installed, used, or repaired in the public right-of-way are subject to any outstanding City assessments, fees, penalties, or charges. Issuance of this Permit is conditions upon payment of the application fee, inspection fee, and any other applicable fees or deposits/security. 6 BUSINESS LICENSE: Contractor shall maintain a current business license in the City of South San Francisco as applicable. 7 PERMIT ON SITE: Permittee shall keep this Permit at the job site at all times that work is occurring and shall provide the Permit upon demand of a City representative. Work may be suspended if the Permit is not readily available at the job site. 8 NOTICE PRIOR TO STARTING WORK: Before staring work under this Permit, Permittee shall notify the Public Works Inspector a minimum of two (2) working days prior to the initial start of work. When work is suspended for more than five (5) working days, an additional 24-hour notification is required. See Special Conditions if required to provide notice to nearby properties. 9 PUBLIC NOTICE PRIOR TO STARTING WORK: Before starting work under this Permit in relation to any parking restrictions and/or traffic control measures impacting roadways, Permittee shall post notices with “No Parking Signs” on barricades in the affected area at least two (2) weeks prior to the commencement of any parking restriction or any work impacting roadways. 10 UNDERGROUND SERVICE ALERT: Permittee shall contact and start a ticket with the Underground Service Alert by calling 811 or visiting www.usanorth811.org a minimum two (2) working days prior to scheduled work. PRIOR TO EXCAVATION, Permittee shall confirm all utility partners on the ticket have responded and the start time has passed. 11 INSPECTION: All work is subject to the City’s monitoring, inspection, and approval. Permittee shall schedule the Public Works Inspector a minimum 24-hours prior to the required inspection time by calling 650-829-6656 or emailing EngDevelopment@ssf.net. Permittee shall be billed for inspection time at the current rate in the City’s Fee Schedule, with a minimum of two (2) hours. Any inspections performed outside of the base allowed hours shall be paid prior to permit final sign-off or deposit refund. See Special Conditions attached for Inspection Deposits. City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1259 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 12 WORK CONDITIONS: a. Work may only be performed and traffic controls shall only be deployed between the hours of 9:00 AM to 3:00 PM Monday through Friday unless otherwise restricted or allowed by City Staff. No work is permitted on Saturdays, Sundays, or City Holidays. All proposed traffic controls are subject to revised approved hours or restrictions by the Construction Coordination Committee. b. Permittee shall provide signage with the name of the contractor and a 24-hour contact phone number that is visible from the work area to persons on the Right-of-Way. c. Permittee shall keep the area clean, safe, and orderly at all times and shall not use the public Right-of-Way as a storage area when no work is being performed. Permittee shall sweep and clean the ROW if any dirt or debris has been caused by the Project. d. Permittee shall control dust by the use of an adequate number of water trucks and any other methods recommended by the soils engineer to protect public and private property in the vicinity or adjacent to the area from annoyance or damage from dust caused by the grading operations. Permittees shall conduct dust and erosion control operations seven days a week, twenty-four hours a day. Should Permittees neglect to control the dust or erosion as herein provided, City may suspend the project activities by written notice to Permittees, requiring that all operations cease until a reasonable schedule or plan for dust control is filed with the City Engineer. e. Permittee shall comply with the requirements of the San Mateo County NPDES permit and Best Management Practices established by the San Mateo Countywide Water Pollution Prevention Program to prevent construction water, debris, or groundwater from entering the storm drains. f. If the proposed work will interfere with established drainage, Permittee shall make provision for drainage as acceptable to the City. g. No hazardous materials shall be handled at any time on the Property. Should any discharge, leakage, spillage, emission, or pollution of any time occur upon or from the Property due to Permittee’s use and occupancy of the Property, then Permittee shall clean all affected property to the satisfaction of the City and any governmental body with jurisdiction at the sole cost of the Permittee. h. If hazardous materials are encountered during the excavation under this permit, then Permittee shall immediately notify the City and properly dispose of such materials in full accordance with federal, state, and local laws. Such disposal shall be at the Permittee’s sole cost and shall be under the Permittee’s EPA Generator number. i. Open trenches and holes shall be satisfactorily covered at all times when Permittee’s forces are not working in the vicinity. No trench shall be left open at the end of a work day unless steel plated in accordance with the Public Works Department’s Standards. j. Permittee certifies that all material to be used in the work, including material for the restoration of the public Right-of-Way, is on hand and ready to use prior to beginning work. k. All work undertaken by Permittee pursuant to this Permit shall be at no cost or expense to the City and shall be at sole cost and expense of Permittee. Permittee, as Owner/Applicant or Authorized Agent of Owner/Applicant, hereby releases the City from and waives all claims against the City for liability, payment, reimbursement or expenses for such work. All work shall be done in a manner that does not interfere with the City’s operations, properties and facilities. Any Mechanic’s Liens filed on account of work performed by Permittee hereunder shall be promptly cured by Permittee’s payment thereof, and the recording of applicable Release of Mechanic’s Liens, or Permittee shall post a statutory mechanic’s lien release bond in lieu thereof within seven (7) days after the filing of each such Mechanic’s Lien. 13 TRAFFIC CONTROL MEASURES: Permittee shall provide appropriate vehicular, pedestrian, and bicycle traffic control measures at no cost to the City. Traffic controls shall conform to the CA MUTCD and Caltrans Standard Plans. As determined by the Permit Coordinator, Traffic Control Plans and proposed work hours shall be approved by the Construction Coordination Committee which meets every other Wednesday. Where sidewalks exist, a minimum width of four (4) feet shall be maintained at all times for safe passage through the work area. At locations where the entire sidewalk width must be closed for construction, Permittee shall provide an alternative route diverting pedestrians into the road and adjacent to the closed sidewalk protected by k-rail or other approved barricades and identified by warning signs, lights, and other safety devices conforming to the requirements of the CA MUTCD. Alternative walkways shall provide temporary ramps from the sidewalk on both ends of the sidewalk closure to connect the path from the sidewalk to the roadway. Permittee shall pay for any metered parking stalls occupied to provide this walkway for the full duration of the parking stall occupation City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1260 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 14 MINIMUM INTERFERENCE WITH TRAFFIC: All work shall be planned and carried out with the least possible inconvenience to the traveling public. The Permittee shall assign properly trained and attired flagger(s) to direct traffic. Traffic shall not be unreasonably delayed. Flagging operations shall be in conformance with the Traffic Manual, flagging control chapter. Construction operations shall be conducted in such a manner as to cause as little inconvenience as possible to the abutting property owners. All work shall be subject to suspension if traffic delays are excessive. If adequate traffic control measures are not in place, the City may issue a Stop Work Order until adequate measures are put in place. The City also reserves the right to hire and implement adequate traffic control measures for the project at the sole cost of the permittee to ensure the least possible inconvenience to the traveling public. 15 REVISIONS: Any revision to the permit plans that are approved by City Staff shall become part of this Permit. 16 FACILITIES: The installation, maintenance and operation of facilities in the public right-of-way or City owned parcel requires the Permittee/Owner to execute an Encroachment and Maintenance Agreement or a similar form of agreement with from the City in addition to an Encroachment Permit. a. Any facilities being installed in the Property shall be kept in good and safe condition and free from any nuisance to the satisfaction of the Director of Public Works. b. Within thirty (30) days of receipt of a written request from the City, Permittee shall relocate its facilities at its sole cost and expense if the facility interferes with a project or other municipal operations of the City of South San Francisco. Within thirty (30) days of receipt of a written request from the City, Permittee shall locate its interfering subsurface facilities by potholing when required by the City for the purpose of confirming the location of existing facilities in order to design or construct public facilities. Whenever a facility is abandoned in the right-of-way, the person owning, using, controlling, or having interest in the facility shall within thirty (30) days after such abandonment file a statement in writing with the Department of Public Works, including a detailed description of the facility’s location, including a map and/or plans. If the facility is not occupied within one (1) year from the date of final inspection or is occupied then no longer occupied within one (1) year, then the facility shall be deemed abandoned. Substructures shall be considered occupied as long as there are active facilities in at least one of the ducts of the substructure. Upon abandonment, the City may require the facility to be removed by the owner at their own expense or at the City’s discretion; all or part of the facility may be abandoned in place with ownership deemed to be transferred to and vested in the City at no cost. 17 RESTORATION AND COMPLETION OF WORK: a. Prior to Permit issuance, Permittee shall provide a deposit or bond sufficient to cover restoration of the Right-of-Way in the event the Permittee fails to or abandons the project. The amount of such deposit or bond shall be based on the Engineer’s Estimate or determined by Engineering Staff on a project-by-project basis. b. Prior to completion of the work, Permittee shall request that the City conduct a final inspection by scheduling with the Public Works Inspector at least 24-hrs prior to requested inspection time. c. If the work is not completed within the time required or not acceptable to City staff, then the Public Works Director or their designee shall notify Permittee in writing. Within forty-eight (48) hours of such notice, Permittee shall restore the work in conformance with the City Standards Details and Specification and this Permit’s conditions and remedy all deficiencies including subsurface material or pavement depressions, breaking, or other failures. If the Permittee fails to do the restoration after such notice, then the City may undertake such work at the expense of the Permittee. The City’s determination of the cost of the work perform shall be final. d. If Permittee fails to compensate the City for the restoration work undertaken pursuant to (c) above within five (5) business days of notification, then the City shall have the right to take whatever actions are necessary to recover its damages, costs, and expenses including but not limited to withholding the amount due with payment made from the performance deposit or any remaining administrative or inspection fee amount or commencing an action against the bond. e. Any repair or restoration work undertaken by the City pursuant to (c) above shall not relieve Permittee in any manner from liability at the site of the repair or restoration including but not limited to future failures. f. The City may undertake any restoration or repair work that has been left incomplete or performed inadequately by Permittee at Permittee’s cost without notification to Permittee if the City has determined that there has been a violation of any condition of the permit; that an excavation constitutes a hazardous situation, public nuisance, public emergency or threat to public health, safety, or welfare, or it is in the City’s best interest. g. Any monuments removed during the work shall be replaced and reestablished. City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1261 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 17 RESTORATION ANDCOMPLETION OF WORK (continued): At the completion of the work, all brush, timber, scraps, material, and the like shall be entirely removed and the Right-of-Way left in a like new condition. As-builts shall be provided to the City prior to the City’s release of any deposit or security required by this Permit. Permittee shall also provide to the City, at no cost, with a copy of any data, studies, or surveys conducted on the Property. This requirement may be waived for minor work in the ROW as determined by staff (service laterals, manhole access, traffic controls, etc.) 18 WARRANTY: a. If required by the City, Permittee shall provide a warranty bond for the purpose of warranting that all work for two (2) years following completion and acceptance by the City. See Special Conditions if required by the City. b. Permittee shall be responsible for remedying any deficiencies such as subsurface material or pavement becoming depressed, broken, or otherwise failing. Any deficiencies identified by the City shall be remedied within forty-eight (48) hours of notification by the City. c. If the deficiencies are not remedied, then the City shall repair or restore at the expense of the Permittee in a manner that the City deems expedient and appropriate. The City’s determination of the cost of repair or restoration shall be final. If the Permittee fails to compensate the City within five (5) business days of notification, then the City can take whatever actions are necessary to recover its damages, costs, and expenses, including but not limited to withholding the amount due with payment made from any performance deposit or any remaining administrative or inspection fee amounts, or commencing action against the bond. d. Repair or restoration by the City shall not relieve Permittee from any and all liability at the site of the repair or restoration including but not limited to future failures. The City may undertake the restoration or repair work at the expense of Permittee without notifying Permittee, if the City has determined that a person has violated this chapter or any condition of the permit; that an excavation poses a hazardous situation or constitutes a public nuisance, public emergency, or threat to the public health, safety or welfare; or it is in the City’s best interest. 19 RELEASE AND INDEMNIFICATION: Permittee hereby releases the City from any liability, claims, damages or any obligations relating to any bodily injury, sickness, disease, or death of any person or damages to any property or any person arising out of work performed by Permittee, its contractors, or subcontractors in performance of this Permit. Permittee agrees to indemnify, defend, and hold harmless City and its officers, agents, volunteers, and employees from any and all actions, claims, and liability for any loss or damage, including but not limited to, bodily injuring, sickness, disease, or death of any person or damage to any property, tangible or intangible, arising out of work performed by Permittee, its contractors, or subcontractors in performance of this Permit or the entry upon the Property. This release and indemnification shall survive termination of this Permit. 20 INSURANCE: Permittee shall procure and maintain during the term of this Permit the following policies of insurance: a. Worker’s Compensation and Employers’ Liability Insurance in the statutory coverage. Permittee certifies that it is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of the Code, and it will comply with such provisions before commencing the performance of the work pursuant to this Permit. b. Commercial General Liability Insurance: In an amount not less than ONE MILLION DOLLARS ($1,000,000) for injuries including, but not limited to, death to any one person and subject to the same limit for each person; in an amount not less than TWO MILLION DOLLARS ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage. c. Automobile Liability (Code 1) Insurance: In an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single limit per accident for bodily injury and property damage. City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1262 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 20 Insurance (continued): d. Contractual Liability Insurance: In the amount of at least TWO MILLION DOLLARS ($2,000,000), insuring Permittee against damages sustained as a result of any action or actions at law or in equity, any claims or demands brought as a result of any breach or alleged breach of any contract, or provisions thereof, and/or as a result of any contractual liability, or alleged contractual liability arising out of any contract entered into by Permittee and/or any of its agents or employees in order to perform the work defined herein. e. The insurance required by this Permit shall be in an aggregate amount of not less than Two Million Dollars ($2,000,000) and shall be extended to include as additional insureds the City of South San Francisco, its elective and appointive boards, officers, agents, employees and volunteers, with respect to operations performed by the Permittee as described herein. Evidence of the insurance described above shall be provided to City upon issuance of this Permit. The policy of insurance shall also contain a provision indicating that such insurance shall not be reduced or canceled except upon thirty (30) days written notice to City. At the City’s sole discretion, the City’s Risk Manager may modify or waive these requirements on a case-by-case basis. 21 ASSIGNMENT: Permittee shall not assign or otherwise transfer any rights under this Permit, and any purported assignment or transfer shall automatically revoke this Permit. 22 NO DEDICATION; POSSESSORY INTEREST TAX: Nothing contained in this Permit shall be deemed a gift or dedication of any portion of the Property to or for the general public or for any public purpose whatsoever. This permit shall not be construed to grant any real property interest or other rights to Permittee in the Property. However, if it is deemed that this Permit creates an interest subject to the possessory interest tax, then Permittee is responsible for paying such tax. 23 NO WAIVER: No waiver of any default or breach of any condition or term of this Permit shall be implied from any omission to take action on account of such default or breach. 24 NO PRECEDENT ESTABLISHED: This Permit is issued with the understanding that any particular action is not to be considered as establishing any precedent, including as precedent for the expediency, utility, or authority of any kind of encroachment. This Permit and any associated Improvement Agreement or Encroachment and Maintenance Agreement constitute the entire agreement between the City and Permittee pertaining to entry and work upon the Property. 25 GOVERNING LAW; ATTORNEY'S FEES: This Permit shall be construed and enforced in accordance with and governed by the laws of the State of California. Any legal proceedings arising from or relating to this Permit shall be venued in the County of San Mateo. In the event that either party institutes any action, suit, or other dispute resolution proceeding based on this Permit, the prevailing party is entitled to receive all costs and expenses, associated therewith including but not limited to reasonable attorney’s fees and courts costs. 26 SPECIAL CONDITIONS: Any special conditions applied to this project shall be coordinated and agreed upon with Engineering Division staff prior to permit issuance. Any and all special conditions shall be included as part of this permit and attached after these standard conditions. The Permittee is required to comply with the special conditions. City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1263 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-708 Agenda Date:6/25/2025 Version:1 Item #:14a. Resolution waiving all fees associated with City permits for the Oyster Point Marina -West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541)project to be funded and performed by the San Mateo County Harbor District. WHEREAS since 1977 the San Mateo County Harbor District has operated and improved the Oyster Point Marina under a no-cost Agreement between the Harbor District and the City of South San Francisco; and WHEREAS the responsibilities of the Harbor District include operations,maintenance,management,and enforcement of applicable rules and regulations of the marina which includes floating docks,public fishing pier, and landside areas of the marina property; and WHEREAS the City and the Harbor District are aware of the need to raise the fixed dock entry points that act as the land-side connection points of the floating docks,per the Agreement the Harbor District is responsible for the dock systems at Oyster Point Marina,including the connection of the docks to the landside connection points; and WHEREAS the Agreement also provides that the City is solely responsible for monitoring and protecting against landside inundation caused by sea level rise and/or landfill subsidence,and is solely responsible for taking corrective actions for damage caused by landfill subsidence; and WHEREAS in light of the shared responsibility for raising the fixed dock entry points,in 2019 the City proposed partnering with the Harbor District to raise the dock entrances during the build-out of the Kilroy Oyster Point 1C when the rest of the adjacent park and Bay Trail were improved; and WHEREAS the Harbor District began construction of this critical improvement in May 2025 and construction is expected to continue through October 2025; and WHEREAS the City shall waive the ordinance-mandated permit and associated fees because the improvements are being made to a City-owned asset and the Harbor District is a valued partner in the management of that asset, Oyster Point Marina; and WHEREAS as with all proposed construction projects the permit fees are calculated based on the value of the construction;with a total construction value based on an awarded bid of $3,395,611,the Building Division calculated a total of $90,606.91 for plan review,inspections,and associated fees as follows:Building Permit B25-1175 for all plan reviews,inspections,and fees,$80,644.87 and Encroachment Permit E25-0541, $9,962.04, totaling $90,606.91 as described in attachments A and B; and WHEREAS the Infrastructure Reserve Fund shall be utilized as the funding source for third party consultant fees. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that all fees associated with City permits for the Oyster Point Marina -West Basin Access Improvements (Permit NumbersCity of South San Francisco Printed on 6/18/2025Page 1 of 2 powered by Legistar™1264 File #:25-708 Agenda Date:6/25/2025 Version:1 Item #:14a. associated with City permits for the Oyster Point Marina -West Basin Access Improvements (Permit Numbers B25-1175 and E25-0541)project to be funded and performed by the San Mateo County Harbor District, totaling $90,606.91 shall be waived. City of South San Francisco Printed on 6/18/2025Page 2 of 2 powered by Legistar™1265 Date:6/1/2025 Reference Number B25-1175 Building Division 315 Maple Ave. South San Francisco, CA 94080 Office: (650) 829-6670 Fax: (650)829-6672 INVOICE SAN MATEO COUNTY HARBOR DISTRICT 504 AVENUE ALHAMBRA 2ND FLOOR EL GRENADA, CA 94018 Warning: fees provided are a reflection of the current fee schedule in place. Failure to promptly pay may result in increased fees if a revised fee schedule is adopted prior to payment. Note: Updated fees effective July 1st of every year Reference Number B25-1175 Inspection Address 95 Harbormaster RD 1 Inspection Type COMMERCIAL Status ISSUED Total Fees Required Total Fees Paid or Credited $80,644.87 $0.00 Description of Fee Account Number Amount COMMERICAL INDUSTRIAL MULTIFAMILY MEP PER TRADE $1,348.36 ELECTRICAL 100-10520-32106 $674.18 MECHANICAL 100-10520-32108 $674.18 BUILDING PLAN REVIEW - PLANNING 100-10520-32116 $2,430.01 MULTI-FAMILY COMMERCIAL INDUSTRIAL NEW OR TENANT IMPROV 100-10520-32116 $2,430.01 ENGINEERING SITE REVIEW 100-13210-32102 $5,000.00 BUILDING PERMIT FIRE REVIEW - PLAN CHECK (3 REVIEWS) 100-11210-32202 $8,727.47 COMMERCIAL PLAN CHECK FEES $11,223.32 COMMERICAL PLAN CHECK FEES UNDER 50000 100-10410-35103 $11,223.32 BUILDING PERMIT FIRE REVIEW - INSPECTIONS 100-11210-32201 $14,893.40 COMMERICAL INDUSTRIAL MULTIFAMILY PERMIT 100-10520-32101 $17,357.18 MANDATORY COMMERICAL FEES $19,665.13 STATE MANDATED TRAINING COMMERICAL 280-27465 $8.00 CBSC COMMERCIAL 100-10520-32111 $136.00 WASTE MANAGEMENT 1PCT FEE - COMMERICAL 100-99999-32101-101027 $173.57 COMMERICAL TECHNOLOGY FEE 271-00000-35105 $347.14 CONSTRUCTION COORDINATION FOR ACTIVE BUILDING PERMITS 100-10520-32116 $867.86 CLIMATE ACTION SURCHARGE - COMMERICAL 100-10520-32111 $882.86 SMIP COMMERCIAL 280-21715 $950.77 1266 BUSINESS LICENSE TAX 100-00000-30403 $6,112.10 GENERAL PLAN COMMERICAL MAINTENANCE FEE 270-00000-35101-101025 $10,186.83 Amount Due $80,644.87 1267 Encroachment Permit Information LOCATION OF WORK:95 Harbormaster Rd PERMIT NO: E25-0541 This City of South San Francisco (“City”) Encroachment Permit (“Permit”) is issued in accordance with Title 13 of the South San Francisco Municipal Code. Permittees and their agents are granted permission to enter the public Right-of-Way to perform work as described in the issued permit subject to these Standard Conditions and any additional Special Conditions. Permittees agree that any work performed under this Encroachment Permit constitutes acceptance of the Standard Conditions and Special Conditions of this permit. Scope of Work within Public Right-of-Way *Attached plans and/or references to City Standards* City to inspect construction laydown area and hauling route. Please See Page 2 for List of Fees and Deposits Refund To:Bond Amount: Permitee Information This permit is accepted by the Applicant and Contractor who agree to comply with and be bound by the terms thereof, and this permit shall bind the Permittees, their assigns, and successors in interest. Applicant Name/Firm:BELLINGHAM MARINE INDUSTRIES INC Address:8810 SPARLING LANE, DIXON, CA Zip:95620 Phone:7076782385 Email:cmartin@bellingham-marine.com Contractor Name/Firm: BELLINGHAM MARINE INDUSTRIES INC Address:8810 SPARLING LANE, DIXON, CA Zip:95620 Phone:(707)678-2385 Email:cmartin@bellingham-marine.com City Approval and Permit Issuance The scope of work is approved, and this Permit is issued with the attached standard and special conditions. Permit Issue Date: 5/28/2025 Permit Expiration Date: 5/28/2026 5/28/2025 City Engineer / Designee Date Specific Requirements: Final Sign-off Public Works Inspector Date City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1268 FEES AND DEPOSITS Fee Type Charged Paid ENGINEERING MISCELLANEOUS $3,524.00 $0.00 STANDARD ENCROACHMENT DEPOSIT $5,000.00 $0.00 ENCROACHMENTS PERMIT AND INSPECTION COST OF ROW IMPROVEMENTS $1,438.04 $0.00 $9962.04 $0.00 City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1269 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 1 STANDARD REFERENCES: All work performed in the City Right-of-Way shall conform to the following standards unless otherwise approved: · “Greenbook” Standard Specifications for Public Works Construction, 2018 Edition · Caltrans Standard Plans, 2018 Edition and October 2019 Revisions · Caltrans Standard Specifications, 2018 Edition and October 2019 Revisions · California Manual on Uniform Traffic Control Devices, 2014 Revision 4 Edition · City of South San Francisco Standard Details · City of South San Francisco Standard Design Guidelines 2 BOUNDARY LIMITS: This Permit is limited to the “Property” defined as public Right-of-Way or City owned parcel described in the application and plans, subject to all existing licenses, easements, encumbrances, leases, and claims of title. 3 PURPOSE: Permittee certifies that it has the legal authority to occupy and use the public right of way for the purpose stated in the application. This nonexclusive and temporary Permit is limited to the purpose stated in the application. Any installation, maintenance, or operation of facilities in the public right of way requires the Permittee/Owner to execute an Encroachment and Maintenance Agreement or a similar form of agreement with the City. Neither this Permit nor any work done by Permittee shall create a vested right of Permittee to occupy or utilize the public right of way. If any prior encroachment permit conflicts with the proposed work, Permittee shall arrange for any necessary removal or relocation with the prior permittee if willing at no expense to the City. 4 TERM: The term of this Permit is as set forth in the application. This Permit shall be void if construction has not begun within ninety (90) calendar days of the date of the Permit Issuance. This permit is revocable immediately upon notice by the City Engineer or their designee. Upon revocation or expiration of this Permit, Permittee shall suspend all activity within the Property and shall be responsible for the repair of any damage to City property caused by Permittee, as directed by City. 5 FEES: Permittee certifies that neither it nor the owner of any facilities to be installed, used, or repaired in the public right-of-way are subject to any outstanding City assessments, fees, penalties, or charges. Issuance of this Permit is conditions upon payment of the application fee, inspection fee, and any other applicable fees or deposits/security. 6 BUSINESS LICENSE: Contractor shall maintain a current business license in the City of South San Francisco as applicable. 7 PERMIT ON SITE: Permittee shall keep this Permit at the job site at all times that work is occurring and shall provide the Permit upon demand of a City representative. Work may be suspended if the Permit is not readily available at the job site. 8 NOTICE PRIOR TO STARTING WORK: Before staring work under this Permit, Permittee shall notify the Public Works Inspector a minimum of two (2) working days prior to the initial start of work. When work is suspended for more than five (5) working days, an additional 24-hour notification is required. See Special Conditions if required to provide notice to nearby properties. 9 PUBLIC NOTICE PRIOR TO STARTING WORK: Before starting work under this Permit in relation to any parking restrictions and/or traffic control measures impacting roadways, Permittee shall post notices with “No Parking Signs” on barricades in the affected area at least two (2) weeks prior to the commencement of any parking restriction or any work impacting roadways. 10 UNDERGROUND SERVICE ALERT: Permittee shall contact and start a ticket with the Underground Service Alert by calling 811 or visiting www.usanorth811.org a minimum two (2) working days prior to scheduled work. PRIOR TO EXCAVATION, Permittee shall confirm all utility partners on the ticket have responded and the start time has passed. 11 INSPECTION: All work is subject to the City’s monitoring, inspection, and approval. Permittee shall schedule the Public Works Inspector a minimum 24-hours prior to the required inspection time by calling 650-829-6656 or emailing EngDevelopment@ssf.net. Permittee shall be billed for inspection time at the current rate in the City’s Fee Schedule, with a minimum of two (2) hours. Any inspections performed outside of the base allowed hours shall be paid prior to permit final sign-off or deposit refund. See Special Conditions attached for Inspection Deposits. City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1270 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 12 WORK CONDITIONS: a. Work may only be performed and traffic controls shall only be deployed between the hours of 9:00 AM to 3:00 PM Monday through Friday unless otherwise restricted or allowed by City Staff. No work is permitted on Saturdays, Sundays, or City Holidays. All proposed traffic controls are subject to revised approved hours or restrictions by the Construction Coordination Committee. b. Permittee shall provide signage with the name of the contractor and a 24-hour contact phone number that is visible from the work area to persons on the Right-of-Way. c. Permittee shall keep the area clean, safe, and orderly at all times and shall not use the public Right-of-Way as a storage area when no work is being performed. Permittee shall sweep and clean the ROW if any dirt or debris has been caused by the Project. d. Permittee shall control dust by the use of an adequate number of water trucks and any other methods recommended by the soils engineer to protect public and private property in the vicinity or adjacent to the area from annoyance or damage from dust caused by the grading operations. Permittees shall conduct dust and erosion control operations seven days a week, twenty-four hours a day. Should Permittees neglect to control the dust or erosion as herein provided, City may suspend the project activities by written notice to Permittees, requiring that all operations cease until a reasonable schedule or plan for dust control is filed with the City Engineer. e. Permittee shall comply with the requirements of the San Mateo County NPDES permit and Best Management Practices established by the San Mateo Countywide Water Pollution Prevention Program to prevent construction water, debris, or groundwater from entering the storm drains. f. If the proposed work will interfere with established drainage, Permittee shall make provision for drainage as acceptable to the City. g. No hazardous materials shall be handled at any time on the Property. Should any discharge, leakage, spillage, emission, or pollution of any time occur upon or from the Property due to Permittee’s use and occupancy of the Property, then Permittee shall clean all affected property to the satisfaction of the City and any governmental body with jurisdiction at the sole cost of the Permittee. h. If hazardous materials are encountered during the excavation under this permit, then Permittee shall immediately notify the City and properly dispose of such materials in full accordance with federal, state, and local laws. Such disposal shall be at the Permittee’s sole cost and shall be under the Permittee’s EPA Generator number. i. Open trenches and holes shall be satisfactorily covered at all times when Permittee’s forces are not working in the vicinity. No trench shall be left open at the end of a work day unless steel plated in accordance with the Public Works Department’s Standards. j. Permittee certifies that all material to be used in the work, including material for the restoration of the public Right-of-Way, is on hand and ready to use prior to beginning work. k. All work undertaken by Permittee pursuant to this Permit shall be at no cost or expense to the City and shall be at sole cost and expense of Permittee. Permittee, as Owner/Applicant or Authorized Agent of Owner/Applicant, hereby releases the City from and waives all claims against the City for liability, payment, reimbursement or expenses for such work. All work shall be done in a manner that does not interfere with the City’s operations, properties and facilities. Any Mechanic’s Liens filed on account of work performed by Permittee hereunder shall be promptly cured by Permittee’s payment thereof, and the recording of applicable Release of Mechanic’s Liens, or Permittee shall post a statutory mechanic’s lien release bond in lieu thereof within seven (7) days after the filing of each such Mechanic’s Lien. 13 TRAFFIC CONTROL MEASURES: Permittee shall provide appropriate vehicular, pedestrian, and bicycle traffic control measures at no cost to the City. Traffic controls shall conform to the CA MUTCD and Caltrans Standard Plans. As determined by the Permit Coordinator, Traffic Control Plans and proposed work hours shall be approved by the Construction Coordination Committee which meets every other Wednesday. Where sidewalks exist, a minimum width of four (4) feet shall be maintained at all times for safe passage through the work area. At locations where the entire sidewalk width must be closed for construction, Permittee shall provide an alternative route diverting pedestrians into the road and adjacent to the closed sidewalk protected by k-rail or other approved barricades and identified by warning signs, lights, and other safety devices conforming to the requirements of the CA MUTCD. Alternative walkways shall provide temporary ramps from the sidewalk on both ends of the sidewalk closure to connect the path from the sidewalk to the roadway. Permittee shall pay for any metered parking stalls occupied to provide this walkway for the full duration of the parking stall occupation City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1271 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 14 MINIMUM INTERFERENCE WITH TRAFFIC: All work shall be planned and carried out with the least possible inconvenience to the traveling public. The Permittee shall assign properly trained and attired flagger(s) to direct traffic. Traffic shall not be unreasonably delayed. Flagging operations shall be in conformance with the Traffic Manual, flagging control chapter. Construction operations shall be conducted in such a manner as to cause as little inconvenience as possible to the abutting property owners. All work shall be subject to suspension if traffic delays are excessive. If adequate traffic control measures are not in place, the City may issue a Stop Work Order until adequate measures are put in place. The City also reserves the right to hire and implement adequate traffic control measures for the project at the sole cost of the permittee to ensure the least possible inconvenience to the traveling public. 15 REVISIONS: Any revision to the permit plans that are approved by City Staff shall become part of this Permit. 16 FACILITIES: The installation, maintenance and operation of facilities in the public right-of-way or City owned parcel requires the Permittee/Owner to execute an Encroachment and Maintenance Agreement or a similar form of agreement with from the City in addition to an Encroachment Permit. a. Any facilities being installed in the Property shall be kept in good and safe condition and free from any nuisance to the satisfaction of the Director of Public Works. b. Within thirty (30) days of receipt of a written request from the City, Permittee shall relocate its facilities at its sole cost and expense if the facility interferes with a project or other municipal operations of the City of South San Francisco. Within thirty (30) days of receipt of a written request from the City, Permittee shall locate its interfering subsurface facilities by potholing when required by the City for the purpose of confirming the location of existing facilities in order to design or construct public facilities. Whenever a facility is abandoned in the right-of-way, the person owning, using, controlling, or having interest in the facility shall within thirty (30) days after such abandonment file a statement in writing with the Department of Public Works, including a detailed description of the facility’s location, including a map and/or plans. If the facility is not occupied within one (1) year from the date of final inspection or is occupied then no longer occupied within one (1) year, then the facility shall be deemed abandoned. Substructures shall be considered occupied as long as there are active facilities in at least one of the ducts of the substructure. Upon abandonment, the City may require the facility to be removed by the owner at their own expense or at the City’s discretion; all or part of the facility may be abandoned in place with ownership deemed to be transferred to and vested in the City at no cost. 17 RESTORATION AND COMPLETION OF WORK: a. Prior to Permit issuance, Permittee shall provide a deposit or bond sufficient to cover restoration of the Right-of-Way in the event the Permittee fails to or abandons the project. The amount of such deposit or bond shall be based on the Engineer’s Estimate or determined by Engineering Staff on a project-by-project basis. b. Prior to completion of the work, Permittee shall request that the City conduct a final inspection by scheduling with the Public Works Inspector at least 24-hrs prior to requested inspection time. c. If the work is not completed within the time required or not acceptable to City staff, then the Public Works Director or their designee shall notify Permittee in writing. Within forty-eight (48) hours of such notice, Permittee shall restore the work in conformance with the City Standards Details and Specification and this Permit’s conditions and remedy all deficiencies including subsurface material or pavement depressions, breaking, or other failures. If the Permittee fails to do the restoration after such notice, then the City may undertake such work at the expense of the Permittee. The City’s determination of the cost of the work perform shall be final. d. If Permittee fails to compensate the City for the restoration work undertaken pursuant to (c) above within five (5) business days of notification, then the City shall have the right to take whatever actions are necessary to recover its damages, costs, and expenses including but not limited to withholding the amount due with payment made from the performance deposit or any remaining administrative or inspection fee amount or commencing an action against the bond. e. Any repair or restoration work undertaken by the City pursuant to (c) above shall not relieve Permittee in any manner from liability at the site of the repair or restoration including but not limited to future failures. f. The City may undertake any restoration or repair work that has been left incomplete or performed inadequately by Permittee at Permittee’s cost without notification to Permittee if the City has determined that there has been a violation of any condition of the permit; that an excavation constitutes a hazardous situation, public nuisance, public emergency or threat to public health, safety, or welfare, or it is in the City’s best interest. g. Any monuments removed during the work shall be replaced and reestablished. City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1272 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 17 RESTORATION ANDCOMPLETION OF WORK (continued): At the completion of the work, all brush, timber, scraps, material, and the like shall be entirely removed and the Right-of-Way left in a like new condition. As-builts shall be provided to the City prior to the City’s release of any deposit or security required by this Permit. Permittee shall also provide to the City, at no cost, with a copy of any data, studies, or surveys conducted on the Property. This requirement may be waived for minor work in the ROW as determined by staff (service laterals, manhole access, traffic controls, etc.) 18 WARRANTY: a. If required by the City, Permittee shall provide a warranty bond for the purpose of warranting that all work for two (2) years following completion and acceptance by the City. See Special Conditions if required by the City. b. Permittee shall be responsible for remedying any deficiencies such as subsurface material or pavement becoming depressed, broken, or otherwise failing. Any deficiencies identified by the City shall be remedied within forty-eight (48) hours of notification by the City. c. If the deficiencies are not remedied, then the City shall repair or restore at the expense of the Permittee in a manner that the City deems expedient and appropriate. The City’s determination of the cost of repair or restoration shall be final. If the Permittee fails to compensate the City within five (5) business days of notification, then the City can take whatever actions are necessary to recover its damages, costs, and expenses, including but not limited to withholding the amount due with payment made from any performance deposit or any remaining administrative or inspection fee amounts, or commencing action against the bond. d. Repair or restoration by the City shall not relieve Permittee from any and all liability at the site of the repair or restoration including but not limited to future failures. The City may undertake the restoration or repair work at the expense of Permittee without notifying Permittee, if the City has determined that a person has violated this chapter or any condition of the permit; that an excavation poses a hazardous situation or constitutes a public nuisance, public emergency, or threat to the public health, safety or welfare; or it is in the City’s best interest. 19 RELEASE AND INDEMNIFICATION: Permittee hereby releases the City from any liability, claims, damages or any obligations relating to any bodily injury, sickness, disease, or death of any person or damages to any property or any person arising out of work performed by Permittee, its contractors, or subcontractors in performance of this Permit. Permittee agrees to indemnify, defend, and hold harmless City and its officers, agents, volunteers, and employees from any and all actions, claims, and liability for any loss or damage, including but not limited to, bodily injuring, sickness, disease, or death of any person or damage to any property, tangible or intangible, arising out of work performed by Permittee, its contractors, or subcontractors in performance of this Permit or the entry upon the Property. This release and indemnification shall survive termination of this Permit. 20 INSURANCE: Permittee shall procure and maintain during the term of this Permit the following policies of insurance: a. Worker’s Compensation and Employers’ Liability Insurance in the statutory coverage. Permittee certifies that it is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of the Code, and it will comply with such provisions before commencing the performance of the work pursuant to this Permit. b. Commercial General Liability Insurance: In an amount not less than ONE MILLION DOLLARS ($1,000,000) for injuries including, but not limited to, death to any one person and subject to the same limit for each person; in an amount not less than TWO MILLION DOLLARS ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage. c. Automobile Liability (Code 1) Insurance: In an amount not less than ONE MILLION DOLLARS ($1,000,000) combined single limit per accident for bodily injury and property damage. City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1273 Encroachment Permit Information Location of Work:95 Harbormaster Rd PERMIT NO:E25-0541 Standard Conditions 20 Insurance (continued): d. Contractual Liability Insurance: In the amount of at least TWO MILLION DOLLARS ($2,000,000), insuring Permittee against damages sustained as a result of any action or actions at law or in equity, any claims or demands brought as a result of any breach or alleged breach of any contract, or provisions thereof, and/or as a result of any contractual liability, or alleged contractual liability arising out of any contract entered into by Permittee and/or any of its agents or employees in order to perform the work defined herein. e. The insurance required by this Permit shall be in an aggregate amount of not less than Two Million Dollars ($2,000,000) and shall be extended to include as additional insureds the City of South San Francisco, its elective and appointive boards, officers, agents, employees and volunteers, with respect to operations performed by the Permittee as described herein. Evidence of the insurance described above shall be provided to City upon issuance of this Permit. The policy of insurance shall also contain a provision indicating that such insurance shall not be reduced or canceled except upon thirty (30) days written notice to City. At the City’s sole discretion, the City’s Risk Manager may modify or waive these requirements on a case-by-case basis. 21 ASSIGNMENT: Permittee shall not assign or otherwise transfer any rights under this Permit, and any purported assignment or transfer shall automatically revoke this Permit. 22 NO DEDICATION; POSSESSORY INTEREST TAX: Nothing contained in this Permit shall be deemed a gift or dedication of any portion of the Property to or for the general public or for any public purpose whatsoever. This permit shall not be construed to grant any real property interest or other rights to Permittee in the Property. However, if it is deemed that this Permit creates an interest subject to the possessory interest tax, then Permittee is responsible for paying such tax. 23 NO WAIVER: No waiver of any default or breach of any condition or term of this Permit shall be implied from any omission to take action on account of such default or breach. 24 NO PRECEDENT ESTABLISHED: This Permit is issued with the understanding that any particular action is not to be considered as establishing any precedent, including as precedent for the expediency, utility, or authority of any kind of encroachment. This Permit and any associated Improvement Agreement or Encroachment and Maintenance Agreement constitute the entire agreement between the City and Permittee pertaining to entry and work upon the Property. 25 GOVERNING LAW; ATTORNEY'S FEES: This Permit shall be construed and enforced in accordance with and governed by the laws of the State of California. Any legal proceedings arising from or relating to this Permit shall be venued in the County of San Mateo. In the event that either party institutes any action, suit, or other dispute resolution proceeding based on this Permit, the prevailing party is entitled to receive all costs and expenses, associated therewith including but not limited to reasonable attorney’s fees and courts costs. 26 SPECIAL CONDITIONS: Any special conditions applied to this project shall be coordinated and agreed upon with Engineering Division staff prior to permit issuance. Any and all special conditions shall be included as part of this permit and attached after these standard conditions. The Permittee is required to comply with the special conditions. City of South San Francisco Public Works Department Engineering Division 315 Maple Avenue South San Francisco, Ca 94080 ENCROACHMENT PERMIT PERMIT TO BE KEPT ON PREMISES AT ALL TIMES Call 650 829-6656 and/or email pw-inspectors@ssf.net 24 Hrs in Advance for Inspection 1274 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:25-686 Agenda Date:6/25/2025 Version:1 Item #:15. Conference with Labor Negotiators (Pursuant to Government Code Section 54957.6) Agency designated representatives: Sharon Ranals, City Manager, Rich Lee, Assistant City Manager, Leah Lockhart, Human Resources Director, Jesse Lad, Redwood Public Law, Christopher Boucher, Boucher Law Employee organizations: AFSCME Local 829, IAFF Local 1507, SSF Police Association, Teamsters Local 856- Confidential, Teamsters Local 856-Mid-Management, Unrepresented Groups: Executive Management, Public Safety Managers City of South San Francisco Printed on 6/18/2025Page 1 of 1 powered by Legistar™1275 Id Name / Nombre Provide your comment(s) during:Presentar sus comentarios durante:Enter Agenda # b 1 Erick Colomer Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento); 2 Mary Prem Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento);Agenda Item (Artículo de Agenda);8 Genentech 3 Timothy Russell - Renaiss Agenda Item (Artículo de Agenda);5 4 Cynthia Marcopulos Agenda Item (Artículo de Agenda);Genentech 5 Annie Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento); 6 Bill zemke Agenda Item (Artículo de Agenda);14 7 Asha Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento); 8 Grant Kitchen Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento); 9 Lorraine Yin Public Comments & Consent Calendar (Comentarios Públicos & Calendario de Consentimiento); 10 Annie Agenda Item (Artículo de Agenda);8