HomeMy WebLinkAbout2014-02-18 E-PacketP.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
CITY HALL
LARGE CONFERENCE ROOM, TOP FLOOR
400 GRAND AVENUE
TUESDAY, FEBRUARY 18, 2014
2:00 P.M.
PEOPLE OF SAN MATEO COUNTY
You are invited to offer your suggestions. In order that you may know our method of conducting
Board business, we proceed as follows:
The regular meetings of the South San Francisco Oversight Board for the Successor Agency to the
City of South San Francisco Redevelopment Agency are held on the third `Tuesday of each month at
2:00 p.m. in the in the Large Conference Room, Top Floor at City Hall, 400 Grand Avenue, South
San Francisco, California.
In accordance with California Government Code Section 54957.5, any writing or document that is a
public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a
regular meeting will be made available for public inspection in the City Clerk's Office located at City
Hall. If, however, the document or writing is not distributed until the regular meeting to which it
relates, then the document or writing will be made available to the public at the location of the
meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San
Francisco, California 94080.
In compliance with Americans with Disabilities Act, if you need special assistance to participate in
this meeting, please contact the South San Francisco City Clerk's Office at (650) 877-8518.
Notification 48 hours in advance of the meeting will enable the City to make reasonable
arrangements to ensure accessibility to this meeting.
Chairperson:
Neil Cullen
Selected by:
Largest Special District of the type in H&R
Code Section 34188
Vice Chair:
Patti Ernsberger
Selected by:
San Mateo County Superintendent of Schools
Assistant Superintendent, Business Services
South San Francisco Unified School District
Alternate: Alejandro Hogan
Superintendent, South San Francisco Unified School District
Board Members:
Mark Addiego
Councilmember, City of South San Francisco
Gerry Beaudin
Principal Planner, City of South San Francisco
Selected by:
Mayor of the City of South San Francisco
Mayor of the City of South San Francisco
Barbara Christensen Chancellor of California Community College
Director of Community/Government Relations,
San Mateo County Community College District
Reyna Farrales
Deputy County Manager, San Mateo County
Paul Scannell
Counsel
Craig Labadie
San Mateo County Board of Supervisors
San Mateo County Board of Supervisors
(Public Member)
Advisor
Rm Steele — Finance Director, City of South San Francisco
Robin Donoghue — Interim General Counsel, Successor Agency of the City of South San Francisco
Krista Martinelli — City Clerk, City of South San Francisco
Armando Sanchez — Redevelopment Consultant, City of South San Francisco
CALL TO ORDER
•
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
COMMUNICATIONS FROM STAFF
OVI'MIGHT130ARD REGULAR MEETING FEBRUARY 18, 2014
AGENDA PAGE
PUBLIC COMMENTS
Comments from members of the public on items not on this meeting agenda, The Chair may set time
limit for speakers. Since these topics are non-agenda items, the Board may briefly respond to
statements made or questions posed as allowed by the Brown Act (Government Code Section
54954.2). However, the Board may refer items to staff for attention, or have a matter placed on a
future agenda for a more comprehensive action report.
MATTERS FOR CONSIDERATION
I Motion to approve the Minutes of the Special Meeting of November 12, 2013
and the Regular Meeting of November 19, 2013.
2. Resolution approving a Recognized Obligation Payment Schedule (ROPS) and
Administrative Budget for the period from July through December 2014,
pursuant to Health & Safety Code Section 341770) & (1).
3. Future Agenda Items.
a) Consideration of revenue sharing agreement related to assignment of the
Master Commercial Lease at 636 El Camino Real.
b) Resolution approving a License Agreement between the City of South San
Francisco Successor Agency to the Redevelopment Agency and Pacific,
Gas & Electric (PG&E) to use a vacant site on Antoinette Land (APN 093 -
312 -050) as a contractor office, a staging area, and employee parking for
the replacement of a 30 inch gas pipeline in South San Francisco. For the
period of May I st to December 31, 2014.
ADJOURNMENT
0'\1!',RS1GF1T BOARD REGITIAR MFE3'TN(. FEBRUARY 18,2014,
AGENDA PAGE 3
DATE. February 18, 2014
TO: Members of the Oversight Board
FROM: Jim Steele, Director of Finance
SUBJECT: APPROVAL OF THE DR-AFT RECOGNIZED OBLIGATION PAYMENT
SCHEDULE FOR THE PERIOD JULY THORUGH DECEMBER 2014
jtjq�f 0110513101 fflj
It is recommended that the Oversight Board approve the attached resolution and draft
Recognized Obligation Payment Schedule (ROPS 14-15A) for the period July through
December 2014.
BACKGROUND/DISCU"S SION
Attached please find the next six month period proposed ROPS 14-15A. This ROPS will form the
basis for the County's distribution of Redevelopment Property Tax Trust Fund dollars (RPTTF, or
former RDA property taxes) to the Successor Agency to pay enforceable obligations for the period
July through December 2014. Assembly Bill 1484 requires the ROPS to be submitted to the State
and County no later than March 3, 2014. The Successor Agency reviewed the proposed ROPS and
approved its submittal to the Oversight Board on February 12, 2014.
The proposed ROPS 14-15A includes the following highlights:
The biannual $3 million contribution to the Oyster Point Ventures Disposition and
Development Agreement (DDA) Escrow Account. These are the funds that the
Redevelopment Agency was obligated under a DDA to set aside to fund the initial
infrastructure improvements to facilitate Oyster Point Ventures' potential future development
of a biotech campus at Oyster Point. After the ROPS 14-15A deposit, there will be $21
million set aside in the escrow account. If the development does not occur by the trigger
points/timelines established in the DDA, those dollars will ultimately flow back to all taxing
entities.
Staff is continuing to explore opportunities to use low to moderate income housing bond
funds from prior years to expand South San Francisco's affordable housing stock. Currently
there are $2.38 million in bond proceeds available.
Staff Report
Subject: Recognized Obligation Payment Schedule for July through December 2014
Page 2
• Administration costs for ROPE 14-15A are estimated to be $171,868.
The Board may recall that in October 2013, the Oversight Board and the State approved moving
$1.85 million in excess funds from the 2006 RDA Bond Retirement Escrow account into another
account that can be used to pay debt service. This action reduces RPTTF funding needs for ROPE 14-
15A, and increases property tax revenue, by $1.85 million to taxing entities,
CONCLUSION
Adoption of this resolution and schedule will fulfill the requirements of Health and Safety Code
Section 34177(1) regarding adoption of a ROPS 14-15A for the period July through December 2014.
By:
Jim S le
Jim
Finan e Director
Approved:
Steven T. Mattas
Interim City Manager
Attachments: Resolution
Exhibit A - Draft BOPS
Exhibit B - Support for Administrative Costs Appearing on the Draft RODS
Exhibit C - Support for Other Revenues Appearing on the Draft BOPS
JS/STNI:ed
Itj 0113 XTA 81981 KTUM r r, r, 1
APPROVING A RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) AND
ADMINISTRATIVE BUDGET FOR THE PERIOD JULY THROUGH DECEMBER.
2014, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(1)
WHEREAS, pursuant to Health and Safety Code Section 34177(1), before each six- month
fiscal period, the successor agency to a dissolved redevelopment agency is required to prepare a
draft Recognized Obligation Payment Schedule ( "ROPS ") that lists all of the obligations that are
"enforceable obligations" within the meaning of Health and Safety Code Section 34177, and
which identifies a source of payment for each such obligation from among (i) bond proceeds, (ii)
reserve balances, (iii) the administrative cost allowance, (iv) revenues from rents, concessions,
interest earnings, loan repayments, or asset sales, or (v) the Redevelopment Property Tax Trust
Fund established by the County Auditor- Controller to the extent no other source of funding is
available or payment from property tax is contractually or statutorily required, and
WHEREAS, the draft ROPS must be concurrently submitted to the County
Administrative Officer, the County Auditor - Controller, the State Department of Finance and the
Oversight Board established to review Successor Agency actions; and
WHEREAS, pursuant to Health and Safety Code Section 341770), the Successor Agency
also must prepare a proposed administrative budget and submit it to the Oversight Board for
approval, including the estimated amounts for Successor Agency administrative costs for the
upcoming six -month fiscal period and proposed sources of payment for those costs, and
WHEREAS, once the ROPS is approved by the Oversight Board, the ROPE must be
posted on the Successor Agency's website and transmitted to the County Auditor- Controller, the
State Department of Finance, and the State Controller.
NOW, THEREFORE, the Oversight Board for the Successor Agency to the
Redevelopment Agency of the City of South San Francisco does hereby resolve as follows:
1. The Recitals set forth above are true and correct, and are incorporated herein by
reference.
2. The Recognized Obligation Payment Schedule (BOPS) and administrative budget for
the period July 1 through December 31, 2014 attached hereto as Exhibit A are hereby approved.
3. The Finance Director is authorized to modify the ROPE to correct errors and provide
clarifications consistent with requirements of the Department of Finance and the intent of this
Resolution.
4. The City Manager or designee is authorized and directed to take all actions necessary
to implement this Resolution, including without limitation, the submittal of the RAPS to the
County Auditor-Controller, the County Administrative Officer, the State Department of Finance,
and the State Controller, and the posting of this Resolution and the ROPS on the Successor
Agency's website.
5. The Oversight Board Chairperson or Vice Chairperson in his absence is hereby
authorized to certify the ROPS.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Oversight Board of the Successor Agency to the Redevelopment Agency of the City of South
San Francisco- at a special meeting held on the 18th of February, 2014 by the following vote:
F.IVM
NOES:
ABSTAIN:
ABSENT:
2147387.1
ATTEST:
City Clerk
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SUccessor Agency Administrative Budget
ROPS 1.4-15A
July - December 2014
Professional & Specialized Services
FTE
Staff Consultant (Armando Sanchez)
$25,000.00
Legal Consultants (Meyers Nave & Craig Labadie
$30,000.00
SUbtMal
55
Meeting expenses, office supplies,
Assistant City Manager
postage, copies, printing services, special
$ 13,364.60
,Supplies and Services noticing, various contractors, misc.
$10,000.00
$ 14,419.03
$ 5,145.39
ECD Coordinator
Management Analyst
Position Title
FTE
Employee Costs
FY13-14 (Semi-
Annual)
Director of Finance
4%
$ 11,740.09
Adminstrative Assistant 111
5%
$ 8,104.42
Assistant City Manager
4%
$ 13,364.60
City Manager
Sr Accountant
4%
3%
$ 14,419.03
$ 5,145.39
ECD Coordinator
Management Analyst
3%
5%
$ 5,860.12
$ 7,799.81
RDA Manager
4%
$ 8,870.33
Accounting Assistant 11
4%
$ 4,428.78
Sr Financial Analyst
5%
$ 8,618.53
Miscellaneous staff
City Clerk
3%
5%
$ 6,652.74
$ 11,864.21
Sbtotal
441
1k -1"
P6 8 AO 8 0 4
6111A/'Y/1'1;1�7
GRAND TOTAL $1
Notes:
1 Staff costs include payroll, benefits, and retirement costs
2 Payment source for six month period is from the Administrative Allowance
3 Maximum administrative costs are based on 3% the total estimated net new funding needs on the ROP'S
X:\ECD\ROPS Backup folder\ROPS 13-14B\Admin Positions FY14-15A-OSB
P11
SUPPORT FOR ESTIMATED OTHER REVENUES APPEARING ON THE
JUL THROUGH
(includes a True Up component for Other Revenues estimated on ROPS IV also
called ROPS 13 -14A)
Estimated Other Revenue
Item
Source of Revenue
Sue Month Total
1
Rents
$ 272,100.00
2)
Interest on Investments
1,000.00
3)
Interest from Business Loans
$ -
4)
Principal from (Business Loans
$ _
Estimated Repayment from Oyster Point Impact Fee
5
Interfund Loan
Difference between prior period estimated Other
Revenue of $1,300,000.00 and Actual Revenue of
6)
$1,517,693.99 for the Period July -Dec 2013 (ROPS IV)
202,353.95
Totals
$ 475,453.95
Rounded Total Used on ROPS
$ 475,500.00
OVERSIGHT BOARD FOR THE
iUCCESSOR AGENCY TO THE CITY OF
SOUTH SAN FRANCISCO
REDEVELOPMENT AGENCY
P.O. B ox 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
CITY HALL
LARGE CO"1FIT6". *0 1P
K., Iffim 11MAINN MANY 91091
TUESDAY, NOVEMBER 19, 2013
2:00 P.M.
CALL TO ORDER Time 2:02 p.m.
ROLL CALL Present: Boardmembers Addiego, Beaudin,
Christensen, Farrales, Vice Chair Emsberger and
Chairperson Cullen,
Absent: Boardmember Scannell,
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
None.
COMMUNICATIONS FROM STAFF
None.
PUBLIC COMMENTS
None.
MATTERS FOR CONSIDERATION
I . Motion to approve the Minutes of the Special Meeting of October 30, 2013.
Motion- Boardmember /Second- - to approve the Minutes of the Special Meeting of October 30, 2013
as amended. Approved by the following voice vote: AYES: Boardmembers Addiego, Beaudin,
Christensen, Farrales, Vice Chair Ernsberger and Chair Cullen; NOES: None; ABSTAIN: None;
ABSENT: Boardmember Scannell.
2. Resolution No. 22-2013 Approving the Long Range Property Management
Plan Pursuant to Health and Safety Code Section 34191.5 and Authorizing
Related Actions.
Consultant Sanchez explained that staff made all the corrections requested by the Board at the
previous meeting. The key changes made to the plan were: placing deed restrictions on the
governmental properties, the distribution of funds as a prorated share according to the property tax
distribution at the time and that the net proceeds from each property would be distributed to the
taxing agencies. In addition, Boardmember Beaudin's corrections that were submitted to the Board,
were technical corrections that staff intended to make with the Board's permission before the plan's
submittal.
Motion- Boardmember Beaudin/ Second- Boardmember Christensen- to approve Resolution No. 22-
2013. Approved by the following voice vote: AYES: Boardmembers Addiego, Beaudin, Christensen,
Farrales, Vice Chair Ernsberger and Chair Cullen; NOES: None; ABSTAIN: None; ABSENT:
Boardmember Scannell.
3. Future Agenda Items.
a) Consideration of revenue sharing agreement related to assignment of the
Master Commercial Lease at 636 EI Camino Real.
Motion- Boardmember Beaudin/ Second- Boardmember Addiego- to adjourn the meeting. Approved
by the following voice vote: AYES: Boardmembers Addiego, Beaudin, Christensen, Farrales, Vice
Chair Emsberger and Chair Cullen; NOES. None; ABSTAIN: None; ABSENT: Boardmember
Scannell.
Pursuant to the above motion, Chair Cullen adjourned the meeting at 2:07 p.m.
Approved:
Neil Cullen, Chairperson
Oversight Board for the Successor
Agency to the South San Francisco
Redevelopment Agency
OVERSIGHT BOARD REGUIAR MEET rING NOVrMBER 19, 2013
MINI TITS PAGE 2
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
CITY HALL
LARGE CONFERENCE ROOM, TOP FLOOR
400 GRAND AVENUE
TUESDAY, NOVEMBER 12, 2013
2:00 P,M,
CALL TO ORDER Time: 2:00 p.m.
ROLL CALL Present: Boardmembers Addiego*, Beaudin,
Christensen, Farrales, Vice Chair Ernsberger and
Chairperson Cullen.
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
us MW
Absent: Bo,ardmember Scannell.
*Boardmember Addiego arrived at 2:05 p.m.
Led By. Finance Director Steele.
COMMUNICATIONS FROM STAFF
a. Status of response to Nawied Amin- public comment at the meeting of September
17, 2013.
Finance Director Steele informed the Board that an email had been sent to Nawied Amin in response
to his questions,
b. Truing up of unfunded health costs.
In regards to Boardmember Scannell's query on the truing up unfunded costs, Finance Director Steele
stated that it would be up to the Board to request the truing up or not. The costs could go up or down
and typically actuarial studies were conducted every year or two. The staffing component would not
change but one cost that would change would be the overall liability. Finance Director Steele
suggested that if the Board so wished, an actuarial study could be done three months before the last
ROPS and dissolution of the Board.
c. Residual in the Redevelopment Property Tax Trust Fund.
Finance Director Steele's understanding of Boardmember Christensen's 'inquiry was that since the
RDA obligations had been paid down one would expect that the residuals transferred to the taxing
agencies would go up. Conceptually that was right but on the other hand, obligations had been added.
Entering into property disposition would add hundreds of thousands of dollars to the future ROPS.
OPEB and PERS liabilities had also just been added. The Oyster Point DDA commitment was still
being paid for and that was the biggest liability after debt service. Therefore, he did not believe that
that costs would be going down dramatically.
PUBLIC COMMENTS
None.
MATTERS FOR CONSIDERATION
Further discussion of the draft Long Range Property Management Plan.
Consultant Sanchez noted that there were four primary issues that came up at the previous meeting.
Firstly, in regards to governmental use properties, the Board requested that the deeds reflect that they
would be used for governmental purposes and if they reverted to another use that there would be a
revenue sharing agreement in place to compensate the taxing agencies. Secondly, as far as parcel
mergers were concerned, staff inserted language so that when appropriate, parcels would be merged
in one parcel so that the intended development would occur there. Thirdly, staff would enter the
City, the Oversight Board and the approval of DOF into a revenue sharing agreement. This future
action would go before the Oversight Board for approval. It would then be submitted to the DOF for
approval as well. Fourthly, in response to Boardmember Christensen's inquiry on the reasons behind
certain properties not being moved to the for sale column, Consultant Sanchez noted that they could
move in any direction the Board wanted but advised them to keep in mind that the property plan
would be the final and conclusive settlement of the properties' disposition. He advised against
creating any ambiguities in the plan. He understood that certain jurisdictions had submitted property
plans with contingencies but there was no assurance on the DOF's position. Staff's interpretation and
advice was that this plan should be conclusive document of where the properties will be. If it were the
OVERSIisHT 110ARD SPECIAL MEE"1 "ING N( ?' N131:R 12, 201;3
MINUTES PAGE 2
Board's desire to take that risk and enter contingencies, then that would be done not knowing where
DOF would land on the matter.
In regards to the properties at 616, 700 and 905 Linden, Consultant Sanchez advised that once all the
choice properties in the downtown area were gone, then there would be some movement for these
properties that have had no activity. At that point in time it would make more sense for them to be put
on the market. On its own, 315 Airport Boulevard which was a smaller lot, had some development
potential. There were two underutilized lots next to that property, 309 Airport Boulevard which was
an SRO Hotel and 305 Airport Boulevard which. was an auto supply shop that had been closed for
over a year. If a developer had a strong interest in these then it would make sense to pursue them. A
good long-term plan would be to wait for a developer who could assemble these properties and
pursue a development. In response to Boardmember Christensen's query on any interest expressed by
developers, Consultant Sanchez stated that there was some interest shown for the property at 400
Airport Boulevard but not for the other properties.
In response to a discussion on the possibility of deeply discounted development, Successor Agency
Counsel Donoghue explained that the city would not have that same ability that the RDA had due to
the gift of public funds argument, but a case for affordable housing could possibly work. Consultant
Sanchez clarified that the city would pursue a cooperation agreement where a loan would be provided
for the value of the land and additional housing funds to bring a loan of $3 million into the deal. The
development budget and loan would stay the same but the equity participation would drop to 4.5
which would allow them to hit their threshold of 25 percent TIR. Considering the risks involved,
mitigation risks would be taken to protect he city's investment. Under a cooperation agreement, the
city's funds would go in first and come out last. The $3 million contribution by the city would grant a
return of $67,000 annually and $9 million at year 10. This would return an internal rate of return of
14 percent for the city's investment, which is a relatively attractive return on a governmental project.
In addition to the good return, 12-18 affordable units and 37- 43 market rate units would be created
which would upgrade the area.
In terms of 400 Airport Boulevard, the property with the most development potential, the city could
try to sell immediately. In response to Boardmember FarTales' inquiry into the process that would be
undertaken if a property's category were to change, Counsel Labadie explained that a property
designated for future development would transfer to the city and so it would be the city's
responsibility to unify it for development or sell it and distribute the proceeds to the taxing agencies.
Regarding the categorization of properties, Successor Agency Counsel Donoghue expressed concern
about placing conditions on properties and advised the Board to insert language showing intent
instead so as to avoid ambiguity with the DO:F. Counsel Labadie agreed that this would be the best
way to handle it. In order to maximize the benefit to the taxing agencies, it would be best for the
Successor Agency not to proceed with the sale until the Downtown Plan was finalized. Finance
Director Steele stated that it would be in the city's best interest to wait until the zoning was
completed because the city would also get a larger share of taxes since their share is 17 percent of the
property taxes. In response to a point of clarification by Chair Cullen, Consultant Sanchez explained
OVERSIGHT BOARD SPECIAL MEETING NOVEMBER 12, 2013
MINUTES PAGE 3
that the zoning in place would dictate how those properties, would be developed. Thus, the zoning
would take precedence over the property disposition plan.
In response to Chairman Cullen's further, inquiry into the matter, Boardmember Beaudin explained
that there was an administrative draft of that document and all the uses mentioned by Consultant
Sanchez were being contemplated. A specific plan was being proposed with General Plan
amendments, zoning regulations and design guidelines built into the document. He clarified that
Transit Oriented Development (TOD) was the umbrella statement used to describe something that is
happening approximate to the station.
As far as the San Mateo County Health Center at 472 Grand Avenue, Boardmember Farrales stated
that the county was committed to serving the needs of an underserved population but the property
was not in an ideal location and had many deficiencies that needed to be fixed. She proposed that if
there was a better location for health and other services, they would be more interested in moving.
After receiving some clarification, Boardmember Addiego expressed his content with the deed
restrictions designating continued public use if the county deferred to the city and did not wish to take
ownership of the property.
Boardmember Farrales expressed that she would like to meet with Counsel Labadie to discuss the
health clinic's plans but Counsel Labadie responded that it would be difficult considering that the
plan was scheduled to be approved the following week.
2. Future Agenda Items.
a) Consideration of revenue sharing agreement related to assignment of the
Master Commercial Lease at 636 EI Camino Real.
ADJOURNMENT
Motion- Boardmember Beaudin/ Second- Boardmember Addiego- to adjourn the meeting. Approved
by the following voice vote: AYES: Boardmembers Addiego, Beaudin, Christensen, Farrales, Vice
Chair Ernsberger and Chair Cullen; NOES: None; ABSTAIN: None; ABSENT: Boardmember
Scannell.
Pursuant to the above motion, Chair Cullen adjourned the meeting at 3:07 p.m.
Submitted:
OVERSIGI IT BOARD SPECIAL MME TING
MINUTES
Approved:
Neil Cullen, Chairperson
Oversight Board for the Successor
Agency to the South San Francisco
Redevelopment Agency
NONTMBER 12,2013
PAGE 4