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Home My WebLink About2017-01-31 e-packet@200Tuesday, January 31, 2017 2:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall, City Manager's Conference Room 400 Grand Avenue, South San Francisco, CA Special Oversight Board to the Successor Agency to the Former Redevelopment Agency Special Meeting Agenda January 31, 2017Special Oversight Board to the Successor Agency to the Former Redevelopment Agency Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the Oversight Board for the Successor Agency to the City of South San Francisco Redevelopment Agency will hold a Special Meeting on Tuesday, January 31, 2017, at 2:00 p.m., in the Large Conference Room, Top Floor at City Hall, 400 Grand Avenue, South San Francisco, California. Call To Order. Roll Call. Agenda Review. Public Comments. MATTERS FOR CONSIDERATION Report regarding a resolution approving the Recognized Obligation Payment Schedule (ROPS) for the period July 2017 through June 2018. (Richard Lee, Director of Finance) 1. Resolution approving a Recognized Obligation Payment Schedule for the period July 2017 through June 2018, pursuant to Health and Safety Code Section 34177(1). 1a. Oyster Point Development project update. (Marian Lee, Assistant City Manager and Steve Mattas, Assistant City Attorney) 2. CLOSED SESSION Closed Session Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Properties: 201, 207, & 217-219 Grand Avenue Negotiating Parties: South San Francisco Successor Agency/City of South San Francisco, Oversight Board to the Successor Agency to the former Redevelopment Agency, and ROEM Development and Palo Alto Partners Under Negotiation: Review Price and Terms (Ron Gerber, Housing Manager) 3. FUTURE AGENDA ITEMS 636 El Camino Real Commercial Space.4. Minutes Pending approval at next Regular Meeting of the Board: September 20, 2016 and November 22, 2016. 5. Adjournment. Page 2 City of South San Francisco Printed on 2/14/2017 January 31, 2017Special Oversight Board to the Successor Agency to the Former Redevelopment Agency Special Meeting Agenda Page 3 City of South San Francisco Printed on 2/14/2017 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-165 Agenda Date:1/31/2017 Version:1 Item #:1. Report regarding a resolution approving the Recognized Obligation Payment Schedule (ROPS)for the period July 2017 through June 2018.(Richard Lee, Director of Finance) RECOMMENDATION It is recommended that the Oversight Board adopt a resolution reviewing a draft Recognized Obligation Payment Schedule (ROPS 17-18)for the period July 2017 through June 2018 and approving submittal to State of California, Department of Finance. BACKGROUND/DISCUSSION Attached for the Oversight Board’s review is the proposed ROPS 17-18.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 2017 through June 2018. ROPS 17-18 must be submitted to the State and County no later than February 1,2017.The Successor Agency reviewed the proposed ROPS and approved its submittal to the Oversight Board on January 25,2017.Although ROPS 17-18 covers the entire fiscal year,the Oversight Board will be allowed to submit an amended ROPS for the period January to June 2018 by October 1, 2017, if needed. While the ROPS 17-18 is largely unchanged from the prior ROPS period,the Oversight Board may note that the remaining balance of the 2006 Tax Allocation Bonds was paid in full in September 2016,as approved by the Successor Agency,Oversight Board and Department of Finance.Therefore,there is no remaining Total Outstanding Obligation as reflected in Items #3 and #4. As with previous ROPS submissions,line items highlighted in red on Exhibit A reflect items that were requested by the Successor Agency,approved by the Oversight Board,but ultimately denied by the Department of Finance.The highlighted format of the report is locked by the Department of Finance to allow them to easily track previously denied items. The Department of Finance did not include any prior period adjustment reports in the FY 2017-18 ROPS.This is in anticipation of transitioning to an annual ROPS cycle in October 2018.The Department of Finance will once again include the ability to report prior period adjustments in ROPS 2018-19,where the prior period eligible for adjustment will be FY 2015-16, a gap of three years. CONCLUSION Adoption of this resolution will fulfill the obligation under Health and Safety Code Section 34177(o)(1) regarding adoption of a ROPS 17-18 for the period July 2017 through June 2018. City of South San Francisco Printed on 1/26/2017Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-166 Agenda Date:1/31/2017 Version:1 Item #:1a. Resolution approving a Recognized Obligation Payment Schedule for the period July 2017 through June 2018, pursuant to Health and Safety Code Section 34177(1). WHEREAS,pursuant to Health and Safety Code Section 34177(l),before each 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 34177(j),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 fiscal period and proposed sources of payment for those costs; and WHEREAS,once the ROPS is approved by the Oversight Board,the ROPS 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 (ROPS)and administrative budget for the period July 1, 2017 through June 30, 2018 attached hereto as Exhibit A are hereby approved. 3.The Finance Director is authorized to modify the ROPS 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 ROPS to the County Auditor-Controller, City of South San Francisco Printed on 2/14/2017Page 1 of 2 powered by Legistar™ File #:17-166 Agenda Date:1/31/2017 Version:1 Item #:1a. Resolution,including without limitation,the submittal of the ROPS 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. ***** City of South San Francisco Printed on 2/14/2017Page 2 of 2 powered by Legistar™ Successor Agency:South San Francisco County:San Mateo Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 17-18A Total (July - December) 17-18B Total (January - June) ROPS 17-18 Total A 2,225,403$ 25,000$ 2,250,403$ B 1,514,743 - 1,514,743 C - - - D 710,660 25,000 735,660 E 173,840$ 577,625$ 751,465$ F 48,840 452,625 501,465 G 125,000 125,000 250,000 H Current Period Enforceable Obligations (A+E):2,399,243$ 602,625$ 3,001,868$ Name Title /s/ Signature Date Recognized Obligation Payment Schedule (ROPS 17-18) - Summary Filed for the July 1, 2017 through June 30, 2018 Period Enforceable Obligations Funded as Follows (B+C+D): RPTTF Redevelopment Property Tax Trust Fund (RPTTF) (F+G): Bond Proceeds Reserve Balance Other Funds Administrative RPTTF Certification of Oversight Board Chairman: Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. A B C D E F G H I J K $ 38,170,049 $ 3,001,868 3 Debt Serv Principal Tax Alloc Bonds Bonds Issued On or Before 1/1/2006 9/1/2035 Bank of New York 2006 Tax Alloc Bonds (TABs) - Y $ - 4 Debt Serv Interest Tax Alloc Bonds Bonds Issued On or Before 12/31/10 1/1/2006 9/1/2035 Bank of New York 2006 Tax Alloc Bonds (TABs) - Y $ - 7 Debt Serv Principal Hsg Rev Bonds Bonds Issued On or Before 12/31/10 1/1/1999 9/1/2018 Bank of New York 1999 Housing Revenue Bonds 815,000 N $ 275,000 8 Debt Serv Interest Hsg Rev Bonds Bonds Issued On or Before 12/31/10 1/1/1999 9/1/2018 Bank of New York 1999 Housing Revenue Bonds 62,625 N $ 21,125 10 Bond Admin/Disclosure Costs TABs Fees 1/1/2006 9/1/2035 Bank of New York/Willdan Costs to administer the bonds 234,530 N $ 12,000 11 Bond Admin/Disc Costs Hsg Bonds Fees 1/1/1999 9/1/2018 Bank of New York/Willdan Costs to administer the housing bonds 18,190 N $ 6,000 12 Oyster Point Ventures DDA OPA/DDA/Construction 3/23/2011 11/11/2026 Oyster Pt Ventures, LLC Section 3.4.1 of DDA-infrastr. required - N $ - 13 Oyster Point Ventures DDA OPA/DDA/Construction 3/23/2011 11/11/2026 Various contractors/staff Secs. 4.5 closg/escrow; 5.2 environ indemnification; 5.3 methane monitoring 20,000,000 N $ - 14 Oyster Point Ventures DDA Project Management Costs 3/23/2011 11/11/2026 Legal/Staff costs Soft project management costs 1,293,144 N $ 90,000 16 Harbor District Agreement Improvement/Infrastructure 3/25/2011 11/11/2026 Harbor District Secs. 5.0 lease rev; 7.0 temp. office 1,793,248 N $ - 17 Harbor District Agreement Project Management Costs 3/25/2011 11/11/2026 Legal/Staff costs Soft project management costs 818,341 N $ 20,000 21 Train Station Imprvmnts Ph 1(pf1002) Remediation 3/11/2009 12/31/2014 TechAccutite/Wisley Ham Contracted work-site remediation 87,494 N $ - 22 Train Station Imprvmnts Phase 1 Project Management Costs 3/11/2009 12/31/2014 Staff Costs Soft project management costs 9,309 N $ - 23 Train Station Imprvmnts Phase 2 Remediation 12/9/2009 12/31/2014 Various contractors Site remediation per Cal Trans Agrmt. 663,000 N $ 663,000 24 Train Station Imprvmnts Phase 2 Project Management Costs 12/9/2009 12/31/2014 Legal/Staff costs Soft project management costs 153,342 N $ 150,000 45 Maintenance of Non-Hsg Properties Property Maintenance 2/1/2012 12/31/2014 Various contractors Rehab, repair, maintenance, & utilities 3,381,567 N 46 Maintenance of Non-Hsg Properties Property Maintenance 2/1/2012 12/31/2014 Legal/Staff costs Soft project management costs 1,237,362 N 47 Administration Costs Admin Costs 2/1/2012 12/31/2014 Various contractors/misc Costs to administer Successor Agency 1,379,679 N $ 20,000 48 Administration Costs Admin Costs 2/1/2012 12/31/2014 Legal/Staff costs Costs to administer Successor Agency 949,132 N $ 230,000 49 Property Disposition Costs Property Dispositions 2/1/2012 12/31/2014 Various contractors Initial envir. testing, noticing, listing costs 2,872,138 N 50 Property Disposition Costs Property Dispositions 2/1/2012 12/31/2014 Legal/Staff costs Soft project management costs 447,367 N 51 Accrued PERS Pension Obligations Unfunded Liabilities 1/1/1980 6/30/2016 CalPERS Costs incurred through 02/01/2012 - N $ - 52 Accrued Retiree Health Obligations Unfunded Liabilities 1/1/1980 6/30/2016 CalPERS Retiree Benefit Trust (CERBT) Costs incurred through 02/01/2012 - N $ - 55 Fund Escrow Acct to call 2006 Tax Allocation Bonds Miscellaneous 5/8/2012 9/1/2016 Bank of New York Fund escrow acct to call rows 4 & 5 at first redemption date of 9/1/2016 - N $ - 57 1999 Housing Bond Proceeds Bonds Issued On or Before 12/31/10 10/23/2013 12/31/2014 Future Developer To be used on low/mod housing dev 1,504,581 N $ 1,514,743 69 630-634 El Camino Real Tenant Improvement Project Management Costs 3/1/2011 2/28/2086 TBD Tenant improvements for tenant space 3 450,000 N Contract/Agreement Termination Date ROPS 17-18 Total South San Francisco Recognized Obligation Payment Sche July 1, 2017 through June 30, 2 (Report Amounts in Whole Dol Item #Payee Description/Project Scope Project Area Total Outstanding Debt or Obligation Retired Project Name/Debt Obligation Obligation Type Contract/Agreement Execution Date L M N O P Q R S T U V W Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF $ 1,514,743 $ - $ 710,660 $ 48,840 $ 125,000 $ 2,399,243 $ - $ - $ 25,000 $ 452,625 $ 125,000 $ 602,625 $ - $ - $ - $ - 275,000 $ 275,000 $ - 14,000 $ 14,000 7,125 $ 7,125 6,000 $ 6,000 6,000 $ 6,000 3,000 $ 3,000 3,000 $ 3,000 $ - $ - $ - $ - 30,000 15,000 $ 45,000 8,875 36,125 $ 45,000 $ - $ - 10,000 $ 10,000 10,000 $ 10,000 $ - $ - $ - $ - 297,660 33,840 $ 331,500 331,500 $ 331,500 75,000 $ 75,000 75,000 $ 75,000 10,000 $ 10,000 10,000 $ 10,000 115,000 $ 115,000 115,000 $ 115,000 $ - $ - $ - $ - $ - $ - 1,514,743 $ 1,514,743 $ - Fund Sources Fund Sources 17-18B (January - June) 17-18A Total edule (ROPS 17-18) - ROPS Detail 2018 llars) 17-18A (July - December) 17-18B Total Professional&SpecializedServices EstimatedCost JulͲDec2017 EstimatedCost JanͲJun2018 Total FY17Ͳ18 LegalConsultants(MeyersNave&CraigLabadie)$23,000$23,000$46,000 $23,000$23,000$46,000 SuppliesandServices $10,000$10,000$20,000 $10,000$10,000$20,000 $6,000$6,000$12,000 $2,000$2,000$4,000 $4,000$4,000$8,000 $3,000$3,000$6,000 $4,000$4,000$8,000 $14,000$14,000$28,000 $12,000$12,000$24,000 $14,000$14,000$28,000 $6,000$6,000$12,000 $3,000$3,000$6,000 $15,000$15,000$30,000 $4,000$4,000$8,000 $5,000$5,000$10,000 $92,000$92,000$184,000 GRANDTOTAL 125,000$125,000$250,000$ Notes: 1ͲͲStaffcostsincludepayroll,benefits,andretirementcosts 2ͲͲPaymentsourceforthesecostsistheRPTTFAdministrativeCostAllowance(ROPSitems47and48) 3ͲͲMinimumof$250,000peryearor3%oftheprioryearRPTTFfunding Miscellaneousstaff CityClerk Subtotal EconomicDevelopmentCoordinator SrAccountant EconomicDevelopmentandHousingManager ManagementAnalyst ECDDirector AccountantI FinancialServicesManager CityManager EXHIBITB SuccessorAgencyAdministrativeBudget ROPS17Ͳ18 July2017ͲJune2018 Subtotal Meetingexpenses,officesupplies,postage,copies, printingservices,specialnoticing,etc. Subtotal StaffWagesandBenefits PositionTitle DirectorofFinance AdminstrativeAssistantII AssistantCityManager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ity of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-115 Agenda Date:1/31/2017 Version:1 Item #:2. Oyster Point Development project update.(Marian Lee,Assistant City Manager and Steve Mattas,Assistant City Attorney) RECOMMENDATION This is an information item. A presentation will be provided at the meeting on the status of the Oyster Point Development.The presentation includes information regarding the 2011 agreements and progress on Phases IC and IIC (clay cap repair only).Oyster Point Development,LLC is targeting summer 2017 for start of construction. See Attachment 1 for presentation. City of South San Francisco Printed on 1/26/2017Page 1 of 1 powered by Legistar™ Oyster Point Development Program Oversight Board Meeting January 31, 2017 1 Program Update 2011 Agency approvals -South San Francisco Redevelopment Agency -State Department of Finance -City of South San Francisco -San Mateo County Harbor District 2016 New developer (OPD, LLC) ready to build 2017 Implementation -Phase ID (508,000 sq. ft. Office/R&D) -Phases IC and IIC (Cap Repair Only) 2 Phased Program Approved by DDA Note: Phase IIC also includes clay cap repair and new sewer pump station to support hotel. 3 Gateway to Oyster Point New Property Tax Revenues ~$9M per year (Full Build Out) 5 Phases Sq. Ft. Valuation Annual Property Tax Phase ID 508,000 $203,200,000 $2,032,000 Phase IID 550,000 $220,000,000 $2,200,000 Phase IIID-IVD 1,200,000 $480,000,000 $4,800,000 Key Documents Disposition and Development Agreement (2011) Redevelopment Agency (now Successor Agency) & Oyster Point Ventures (now OPD) & City Development Agreement (2011) City & Oyster Point Ventures (now OPD) Harbor District Agreement (2011) City & Successor Agency & San Mateo County Harbor District Escrow Deposit and Trust Agreement (2013) Successor Agency to the RDA & Bank of New York 6 Phase IC Improvements (on non-conveyed City property) Streets and utilities at hub Streets and utilities from hub to point (across the marina) Repair/Upgrade clay cap over landfill on City property Reconfigure/Reconstruct existing parking areas Grading and construction of open space recreation areas Demolition and grading at future “Hotel Site” Landscaping of beach/park area Landscaping and construction at bay trail and palm promenade 7 Phase IC Responsibilities Developer responsible for design and construction Developer and Agency share cost of identified infrastructure improvements -80% Developer and 20% Agency for Streets/Utilities at Hub -Savings go toward Agency Phase IIC costs Developer responsible for up to $9,533,859 for palm promenade Agency set aside $18,399,460 in escrow account 8 Phase ID Improvements (on conveyed property) Repair clay cap over l andfill on conveyed property Remediation/Clean up of Sump 1 area Installation of methane control and monitoring systems Relocation of refuse under buildings Development of R&D and/or office building of not less than 508,000 sq. ft. and not more than 600,000 sq. ft. and a FAR of 1.25 9 Phase ID Responsibilities Developer responsible for all construction and funding Developer responsible for all Phase ID cost overruns/savings Developer may use CFD for clay cap repair 10 Phase IIC Improvements (on non-conveyed City property) Installation of new sewer pump station Repair clay cap over landfill on portion of City property Repaving and landscaping tune-up of existing parking areas Landscaping of City property in jurisdiction of Bay Conservation and Development Commission (BCDC) 11 Phase IIC Responsibilities City/Agency responsible for all Phase IIC construction Agency responsible for all Phase IIC funding, except: -Agency and Developer share cost of new sewer pump station (68% Agency & 32% Developer) -Developer required to contribute $839,490 portion upon commencement of excavation for sewer pump station foundation Agency responsible for all Phase IIC cost overruns/may retain cost savings 12 Phases IID – IVD Improvements (on private Business Park Properties) •Develop streets and utilities •Relocate and expand sewer pump station no. 1 •Landscaping within 100-foot shoreline band in BCDC area •Develop buildings for R&D/Offices of up to approximately 2.25M gross square feet with a FAR of 1.25 13 Phases IID – IVD Responsibilities Developer responsible for construction and funding Developer responsible for cost overruns / savings Developer may use CFD bond funding 14 Escrow Deposit and Trust Agreement Between Agency and Bank of New York (Jan. 2013) Funds in escrow account ($29,463,231): -Phase IC $18,399,460 -Phase IIC $11,063,771 Disbursement of funds by written instruction from Agency, executed by both City Manager and City Attorney 15 Phase IC and IIC Cap Repair Project Update 16 Phase IC and IIC Cap Repair Project Cost Update 17 Phase IC $35.6M (2011) $44.1M (2016) Increase ~$8.5M (Agency share ~$5M; OPD share ~$3M) Phase IIC (cap repair only) $570K (2011) $890K (2016) Increase ~$300K (Agency responsible for total increase) Phase IC and IIC Project Milestones •Groundbreaking: Fall 2017 •Complete Phase IC and IIC cap repair: End of 2018 •First Office/R&D building complete: Fall 2019 18 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:16-1016 Agenda Date:1/31/2017 Version:1 Item #:3. Closed Session Conference with Real Property Negotiators (Pursuant to Government Code Section 54956.8) Properties: 201, 207, & 217-219 Grand Avenue Negotiating Parties:South San Francisco Successor Agency/City of South San Francisco,Oversight Board to the Successor Agency to the former Redevelopment Agency, and ROEM Development and Palo Alto Partners Under Negotiation: Review Price and Terms (Ron Gerber, Housing Manager) City of South San Francisco Printed on 1/26/2017Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-172 Agenda Date:1/31/2017 Version:1 Item #:4. 636 El Camino Real Commercial Space. City of South San Francisco Printed on 1/26/2017Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:17-173 Agenda Date:1/31/2017 Version:1 Item #:5. Minutes Pending approval at next Regular Meeting of the Board: September 20, 2016 and November 22, 2016. City of South San Francisco Printed on 1/26/2017Page 1 of 1 powered by Legistar™