HomeMy WebLinkAbout2019-10-22 e-packet@6:00Tuesday, October 22, 2019
6:00 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
Special City Council
Special Meeting Agenda
October 22, 2019Special City Council Special Meeting Agenda
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of
California, the City Council of the City of South San Francisco will hold a Special Meeting on Tuesday,
October 22, 2019, at 6:00 p.m., at City Hall, City Manager's Conference Room, 400 Grand Avenue, South
San Francisco, California.
Purpose of the meeting:
Call to Order.
Roll Call.
Agenda Review.
Public Comments - comments are limited to items on the Special Meeting Agenda.
ADMINISTRATIVE BUSINESS
Study session regarding update on new, conceptual Downtown Parking Garage
(Heather Ruiz, Management Analyst I).
1.
Study session regarding a potential measure to be approved by voters to levy a parcel
tax on vacant properties. (Sky Woodruff, City Attorney)
2.
Adjournment.
Page 2 City of South San Francisco Printed on 12/26/2019
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:19-675 Agenda Date:10/22/2019
Version:1 Item #:1.
Study session regarding update on new,conceptual Downtown Parking Garage (Heather Ruiz,Management
Analyst I).
RECOMMENDATION
Staff recommends City Council review the proposed Downtown Parking Garage 2 (“Project”)conceptual
designs and cost estimates, and provide direction to staff on next steps.
BACKGROUND
In December 2014,the City received a grant through the City/County Association of Governments of San
Mateo County (C/CAG)to study current and future parking needs within the downtown Priority Development
Area (PDA),as well as potential impacts of new development spurred by the Downtown Station Area Specific
Plan.The consultants conducting the study,CDM Smith (Consultant),reviewed existing parking conditions,
and forecasted parking demand in the short-term (three-year period)and long-term (ten-year period).The
parking study found that by 2026,an additional 228 parking spaces in the downtown would be needed during
the lunch hour (12:00 to 1:00 p.m.) and dinner rush (6:00 to 8:00 p.m.).
As part of the Fiscal Year 2017-18 Capital Improvement Program (CIP),the City Council approved Parking
Garage Number 2 planning as a CIP project.In November 2017,staff contracted with Kimley-Horn to conduct
the planning phase of a new downtown parking garage.Kimley-Horn performed a parking occupancy study to
validate the 2016 parking study results and found that parking will generally increase occupancy percentages
compared to the values presented in the 2016 parking study.They also determined that additional parking is
still needed to accommodate future demand in the downtown,particularly between Maple and Linden Avenues.
Based on these results,Kimley-Horn recommended that a second garage would be best located south of Grand
Avenue.
Given Kimley-Horn’s recommendation,the consultant and staff first explored possible sites along Baden
Avenue.Specifically,the Old Firehouse (201 Baden)and Parking Lots 5 and 12 (on the 300 block of Baden)
were analyzed.The Old Firehouse site was deemed infeasible because its dimensions do not provide for an
efficient garage layout,leading to higher construction costs on a per parking stall basis.Parking Lots 5 and 12
were also studied.Utilizing both publicly owned lots would have required also acquiring privately owned
property.This scenario was deemed infeasible because of the very high costs associated with land acquisition.
It would have, however, led to an efficient garage design.
DISCUSSION
After exhausting possible sites on Baden,the consultant and staff began looking at other City-owned properties
in and around the Downtown that might be big enough to accommodate a new,efficient,and cost effective
garage.It was at this time that the City Hall parking lot was identified.Although not a preferred site due to its
proximity to Miller Parking Garage,it has the most potential to add additional parking because the City already
owns the property, and it is large enough to support an efficient design.
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File #:19-675 Agenda Date:10/22/2019
Version:1 Item #:1.
Following Kimley-Horn’s report,the City Manager directed staff to conduct further due diligence on the City
Hall parking lot site.Following a Request for Proposals (RFP),staff selected Watry Design,Inc.(Watry)to
undertake the project due to their comprehensive proposal,project understanding,qualifications,and expertise.
Watry also provided useful context,due to their experience as the original lead designer for the Miller Avenue
Parking Garage.
Conceptual Designs & Cost Estimates
Staff from ECD,Planning,Finance,Public Works,and Parks have since collaborated with Watry to discuss and
provide feedback on the five conceptual designs.Additionally,staff worked with Watry and their subconsultants
to complete substantial due diligence,including:a parking pricing analysis to ensure our rates are competitive
and reasonable with surrounding communities;topographic and geotechnical surveys to understand elevations
and grading features; and construction cost estimates for each design concept.
Staff narrowed down the garage design options to the following.
·Option A,the base design,which includes a partially below-grade parking structure under what is now
the City Hall parking lot. The estimated construction cost is $31 million.
·Option B,the base design plus park,which includes the partially below-grade structure described above,
with the addition of a rooftop park. The estimated construction cost is $33 million.
·Option C,the base design plus parking and office building,which improves upon Options A and B
above by spanning the City Hall superblock from Maple to Walnut Avenues along Miller Avenue and
including the below grade parking,a rooftop park,and a new,larger office building to replace the
existing Annex Office Building. The estimated construction cost is $58 million.
·Option D,an alternative design that would align the new garage along Maple Avenue,from Grand
Avenue to Miller Avenue.The new garage will encompass a lobby or office at the corner of Grand
Avenue and Maple Avenue,which will allow active uses on Grand Avenue to continue.The estimated
construction cost is $47 million.
All of the above-referenced options include replacement parking for the existing City Hall parking lot (80
spaces)and an additional 270 parking spaces or more.Conceptual designs and cost estimates can be found in
Attachments 1 and 2, respectively.
Construction Financing Options
Issuing Bonds Financed by the Parking District Alone
Dixon Resources Unlimited,a market analysis consultant,compared the City’s current parking rates with
nearby cities in San Mateo County and concluded that the parking rates in South San Francisco were too low.
Dixon recommended modest rate increases as a minimum. Dixon’s full report is included as Attachment 3.
Based on the modest increases recommended by Dixon,and assuming an 85%occupancy rate,staff expects a
new garage by itself will generate roughly $275,000 annually.This revenue can support only a $2 to $4 million
bond.Options to increase bonding capacity include leveraging the entirety of the downtown parking district to
finance construction of the new garage,raising parking rates,and/or exploring a public private partnership.
These scenarios as discussed below.
Based on year-to-date revenue and expenses for the Downtown Parking District,staff estimates the District will
net approximately $254,000 this year for all operations.Assuming all rates are increased on average 25%when
the new garage is complete and open,and with the addition of revenue from the new garage,staff estimates
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the new garage is complete and open,and with the addition of revenue from the new garage,staff estimates
annual revenue of $570,000, which would support a $7.5 million bond.
To fund the construction of Option A,the base garage,the City would need to issue at least a $30 million bond.
Such a bond would require at least $2 million in annual revenue to service debt payments over 30 years.To
generate a $30 million bond requires increasing all parking rates in the District as follows:
Fee Type Current Rates for $30 M Bond
Hourly (Garage)$0.50 $1.00
Monthly (Garage)$30.00 $75.00
Daily Flat Rate (Garage)none $6.00
Monthly (Lots)$40.00 $100.00
Metered (On-Street)$1.00 $2.50/hr
These rates are significantly lower than the rates in San Francisco,which average $3.75 per hour for on-street,
metered parking and $350 for monthly permits.Additionally,some new private developments in Downtown
South San Francisco charge tenants for parking.Staff estimates these monthly parking rates to be roughly $75.
By increasing rates in public garages,the City can ensure these tenants park in their designated residential
parking structures,rather than in City facilities which at present are a cheaper alternative than paying for
parking in the residential development.
Public Private Partnership
The parking garage alternatives,and particularly Options C and D,present the opportunity to explore a Public-
Private Partnership (P3)as a means of financing the parking garage,new downtown park and new office
building.In a P3 scenario,the City could enter into a long-term ground lease with a private company that
would design,construct and operate the new parking garage;all or a portion of a new office building;and build
the park facilities.These facilities would be leased or deeded back to the City.This scenario may require the
City to increase rates as described above and pledge some or all of the parking revenues from the Downtown
Parking District to make the P3 attractive to a suitable private sector partner.Another benefit of a P3 is the
possibility of lowering the cost of infrastructure to the City by reducing construction costs.
Public-Private-Partnerships have recently been used successfully in Long Beach,California,for a new Civic
Center complex which is completely financed privately.Developers have committed to spending $520 million
dollars in public buildings and a city park in exchange for land allowing profit-driven projects including office
space,retail,condominiums and apartments.A P3 is also being used in Napa,California,delivering a new City
Hall and Police and Fire Administration building in exchange for commercial development of city owned land.
Pursuing a P3 initially entails issuing a Request for Proposals (RFP)to interested commercial developers.
Responses to the RFP would be reviewed by staff,likely a Council subcommittee and then full City Council,to
determine if an appropriate commercial partnership is possible.Through a P3,the larger parking garage-park-
office building concept in Options C and D may be possible.
Moving Forward With Parking Rates
Under any scenario,parking rates need to go up,as concluded by the Dixon study.This is buoyed also by the
realization that apartment dwellers may use the current parking garage as a cheaper alternative to paying for a
residential parking space.Additionally,to generate sufficient revenue to support a $30 million bond,or to
attract a P3 partner,parking rates will likely need to be increased steadily in the Downtown over the next
several years.The Parking Place Commission has the authority to raise rates to a maximum defined by the City
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several years.The Parking Place Commission has the authority to raise rates to a maximum defined by the City
Council. Those maximum rates are as follows.
Fee Type Maximum Parking Rates
Hourly (Garage)$3.00
Monthly (Garage)$80.00
Daily Flat Rate (Garage)none
Monthly (Lots)$100.00
Metered (On-Street)$3.00
Within this authority,the Parking Place Commission has the task of setting downtown parking rates.Staff will
work with the Parking Place Commission to determine the parking rates the Commission can support.To raise
rates any higher than the authority noted above will require Council action.
Next Steps
Staff believes it would be prudent to continue due diligence and further design on Options B and C or D.In
doing so,staff can advance design of a garage that the City can plan to fund with its own revenue sources
(Option B),while testing the market through issuance of an RFP to see if a suitable P3 partner would be
interested in constructing Option C or D.Simultaneously,staff would work with the Parking Place Commission
to begin right-sizing rates in the Downtown on a reasonable schedule.
CONCLUSION
Staff is seeking Council’s direction on continuing to advance conceptual designs,and working with the Parking
Place Commission to begin increasing parking rates.
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Town of Los Gatos, CA
January 31, 2019
Dixon Resources Unlimited
City of South San Francisco, CA
Dixon Resources Unlimited
August 2019
Comparable Cities
Analysis
Table of Contents
1.0 Comparable Cities Analysis ..................................................................................... 1
1.1. South San Francisco, CA ................................................................................... 1
1.2. San Mateo, CA ................................................................................................... 3
1.3. Redwood City, CA .............................................................................................. 6
1.4. San Rafael, CA .................................................................................................. 8
1.5. Berkeley, CA ...................................................................................................... 9
2.0 Parking Rate Policy and Occupancy Data ............................................................. 12
3.0 Report Recommendations ..................................................................................... 13
Appendices
A. Overall Comparison Tables
A1. On-Street Parking
A2. Off-Street Parking
A3. Garage Parking
A4. Permit Parking
B. South San Francisco Parking Rate Policy
C. South San Francisco Parking Meter and Parking Permit Rates for FY 2018-19
1.0 Comparable Cities Analysis
Assessing the parking programs in various comparable cities can assist the City of South
San Francisco (City) in the development of parking policies that will best address the
needs of the community. Comparable cities offer insight into the feasibility and
effectiveness of strategies and pricing. The four California cities selected for analysis
include San Mateo, Redwood City, San Rafael, and Berkeley. Each of these parking
programs was reviewed for information regarding parking fees, rate structures, permits,
and days and hours of operation. While none of these cities are equivalent to South San
Francisco in every way, the relative size, proximity, and characteristics of each city offer
insight into various parking policies and solutions that may be applied to the case area.
1.1. South San Francisco, CA
The City of South San Francisco Parking Place Commission manages more than 1,200
spaces between its on- and off-street facilities. Comprised of a board of three members,
the Parking Place Commission sets the policies for parking operations for the City. The
Parking Place Commission is authorized to set rates within an approved range of $0.50
to $3.00 per hour for on-street, off-street, and garage locations, $3.00 to $6.00 for daily
permits for Lot #7, $40.00 to $100.00 for monthly lot permits, and $20.00 to $80.00 for
monthly Miller Parking Garage permits.
The City has 12 off-street facilities ranging from 17 spaces to 244 spaces, with the largest
being the Miller Parking Garage. On-street parking regulations are centered around
Downtown.
Table 1. South San Francisco Parking Rates
Parking Rate Time Limit Hours of Operation
On-Street
$1.25 / hr 2 hours Daily 9am-8pm
$1.00 / hr 2 hours Daily 9am-6pm
$1.00 / hr 10 hours Daily 9am-6pm
Parking
Lots
$0.75 / hr 2 hours Daily 9am-6pm
$1.00 / hr 2 hours Daily 9am-6pm
$1.00 / hr 5 hours Daily 9am-6pm
$1.00 / hr None Daily 9am-6pm
Garages Miller Parking Garage: None Daily 9am-8pm $0.50 / hr
Monthly Permit Rates
Permits City Lots $40.00
Miller Parking Garage $30.00
1.1.1. On-Street Parking
On-street parking in South San Francisco is based upon a two-tier rate structure (see
Figure 1). Parking at meters in the downtown core is $1.25 per hour (purple) with a two-
hour time limit. Parking on the nearby perimeter streets is $1.00 per hour (orange).
Perimeter streets have either a two-hour or ten-hour time limit. Downtown on-street
meters operate daily between 9:00 am and 8:00 pm while perimet er locations operate
from 9:00 am to 6:00 pm.
1.1.2. Off-Street Parking
South San Francisco has 11 surface lots, of which four lots are designated for hourly paid
parking, two lots for monthly parking only, and five lots for a mix of hourly paid parking
and monthly parking (Figure 2). Similar to the on-street rate structure, off-street lots have
two parking rates, $0.75 per hour for Lots #17 and #18, and $1.00 per hour for all other
paid parking lots. Parking is limited to a two-hour time limit at Lots #4, #15, #16, #17, and
#18; Lot #1 has a five-hour time limit; and Lots #5, #12, and #13 have no maximum time
limit. Meters/pay stations operate daily between 9:00 am and 6:00 pm.
1.1.3. Garage Parking
Parking at the Miller Parking Garage is $0.50 per hour daily between 9:0 0 am and 6:00
pm. Vehicles can remain parked up to 72 hours (total ing $13.50 for 72 hours of parking
time).
Figure 1. South San Francisco On-Street Parking Map
1.1.4. Permits
The City of South San Francisco offers daily and monthly permits for select parking lots
and the Miller Parking Garage. Daily permits are available in non-metered stalls in Lot #7
for $3.00 per day, a 66% savings compared to the hourly rate for the nine hours per day.
Monthly permits for Lots #1, #5, #7, #12, #13, and #14 are available for $40.00 per month
online and at kiosks in the Finance Department. Permits at the Miller Parking Garage are
$30.00 per month.
1.2. San Mateo, CA
San Mateo is located 20 miles to the south of San Francisco and 31 miles northwest of
San Jose with a population of just under 105,000. With a well-developed downtown of
more than 800 restaurants and shops, the downtown core is a popular area for dining and
shopping.
With over 3,000 public parking spaces, the City uses a color-coded system to help drivers
determine the best place to park. On-street metered areas and off-street lots and garages
are included in each zone. The downtown core, indicated in orange, allows for short -term
parking at a higher rate. This allows drivers to run a quick errand and encourages turnover
for space availability for the next customer. The green color zone allows longer -term
parking at a lower rate. These perimeter spaces accommodate multiple use groups such
as those who are out in town for an event, visitors to the residences in the downtown core,
and local employees who may not need a full-time parking permit.
Figure 2. South San Francisco Off-Street Parking Map
Table 2. San Mateo Parking Rates
Parking Rate Time Limit Hours of Operation
On-Street $1.50 / hr 3 hours Mon-Sat 8am-6pm
$1.00 / hr 3 hours Mon-Sat 8am-6pm
Parking
Lots
$0.25 / hr None Mon-Sat 8am-6pm
$0.75 / hr None Mon-Sat 8am-6pm
Garages
Central Garage: None Mon-Sat 8am-6pm $1.25 / hr
Main Street Garage: None Mon-Sat 8am-6pm $0.75 / hr
Transit Center Garage: None Mon-Sat 8am-6pm $0.75 / hr
2nd & El Camino Garage: None Mon-Sat 8am-6pm $0.75 / hr
Tennis Court Garage: 3 hours & 10
hours Mon-Sat 8am-6pm $0.75 / hr
Monthly Permit Rates
Permits
Central Garage $100.00
Main Street Garage $65.00
Transit Center Garage $65.00
2nd & El Camino Garage $65.00
Tennis Court Garage $65.00
Kinko’s Lot – 4th &
Claremont $40.00
South Railroad Avenue – 5th
to 9th Ave $40.00
Workers Resource Lot – 5th
and Claremont $40.00
1.2.1. On-Street Parking
There are two different rates for on-street parking in San Mateo, $1.50 per hour in the
central, orange zone and $1.00 per hour in the perimeter, green zone. Parking at the on -
street meters in both the central zone and the perimeter zone is limited to 3 hours
maximum. The parking meters operate from 8:00 am to 6:00 pm Monday through
Saturday. Parking after 6:00 pm and all day Sunday is free.
1.2.2. Off-Street Parking
San Mateo uses a rate structure similar to on-street parking for its off-street parking lots
(Figure 3). The parking lots located closest to the downtown core cost $0.75 per hour.
The lots located further away from the downtown core are priced at $0.25 per hour. There
are no time limits in the parking lots in order to encourage longer-term parkers to utilize
off-street parking rather than shuffling vehicles between on-street spaces. All San Mateo
parking lots are located in the perimeter zone and a re operated daily between 8:00 am
and 6:00 pm.
1.2.3. Garage Parking
The City of San Mateo owns five parking garages. All garages are located in the perimeter
zone with the exception of the Central Garage, which is located in the heart of downtown
in the central zone. The parking garages are operated Monday through Saturday 8:00 am
to 6:00 pm. Parking in the garages is free before and after operating hours and all day on
Sundays. The garages close nightly between 2:00 am and 5:00 am.
Figure 3. San Mateo Parking Map
1.2.4. Permits
Companies and individuals can purchase parking permits for parking lots and garages
located in San Mateo. Parking permits are valid from 8:00 am to 6:00 pm Monday through
Saturday. Parking in the lots and garages is on a first come, first served basis and a
permit does not guarantee a parking space. The cost of permits varies between $40.00
and $100.00 monthly based upon demand and the garage’s proximity to the downtown
core.
1.3. Redwood City, CA
Located in the San Francisco Peninsula, nearly halfway between San Jose and San
Francisco, Redwood City is home to approximately 90,000 residents. As part of Silicon
Valley, Redwood City hosts multiple global technology companies.
To manage its nearly 4,000 public parking spaces, Redwood City uses a separate rate
structure for daytime and evening parking. Daytime parking in Redwood City is either
$0.25 or $1.00 per hour depending on the proximity to the central downtown core. To
facilitate additional demand and create consistent turnover, rates in select garages
increase to $2.50 per hour after 6:00 pm, while on-street and surface lots are free.
Table 3. Redwood City Parking Rates
Parking Rate Time Limit Hours of Operation
On-Street $0.25 / hr None Mon-Sat 10am-6pm
$1.00 / hr 2 hours Mon-Sat 10am-6pm
Parking
Lots
$1.00 / hr None Mon-Sat 10am-6pm
$1.00 / hr None Mon-Sat 10am-6pm
$1.00 / hr None Mon-Sat 10am-6pm
$1.00 / hr None Mon-Sat 10am-6pm
Garages
Marshall Garage*:
None Mon-Sat 10am-6pm;
Mon-Sat after 6pm
$1.00 / hr;
$2.50 / hr
Jefferson Garage*:
None Mon-Sat 10am-6pm;
Mon-Sat after 6pm
$0.25 / hr;
$2.50 / hr
Crossing 900*: None Mon-Sat after 6pm $2.50 / hr
Monthly Permit Rates
Permits
Marshall Garage:
Mon-Fri until 7pm
Mon-Fri until 1am
Daily until 1am
$60.00
$80.00
$100.00
Main Street Lot:
Mon-Fri until 6pm
Daily until 6pm
$40.00
$60.00
Sequoia Station
Garage $100.00
*First 1 ½ hours free
1.3.1. On-Street Parking
There are two different on-street zones in
Redwood City (Figure 4). Spaces closest to
the downtown core are $1.00 per hour and
spaces on the perimeter of the core are
$0.25 per hour. Spaces located on
Broadway have a two-hour limit while all
other on-street metered spaces have no time
limit. Meters operate between 10:00 am and
6:00 pm, Monday through Saturday.
1.3.2. Off-Street Lot Parking
Parking lots in Redwood City are operated
between 10:00 am and 6:00 pm Monday
through Saturday (Figure 4). Parking in the
off-street lots is $1.00 per hour. Parking in all
lots is free after 6:00 pm and all day on
Sundays. Many of the off -street lots in
Redwood City are located within, or nearby,
the downtown core.
1.3.3. Garage Parking
Redwood City operates four parking
garages. Parking rates vary between $0.25
per hour and $1.00 per hour for parking
before 6:00 pm. After 6:00 pm, parking in all
garages, with the exception of the County
Garage, is $2.50 per hour. The first hour and
Figure 4. Redwood City Parking Guide
a half of parking time is free to accommodate those who are running quick errands.
Century Theater visitors can receive a 4-hour validation for the garages.
1.3.4. Permits
Parking permits for the Marshall Garage and Main Street Lot are based upon a tier ed
system. Daily permits are priced higher than permits valid only Monday through Friday.
Due to the high demand of parking permits and the needs of large corporations and small
businesses, there is a cap of 10 permits per business for the Main Street Lot. Parking
spaces in both the Marshall Garage and Main Street Lot, as well as the Sequoia G arage
are limited, and the purchase of a permit is not a guarantee of a space.
1.4. San Rafael, CA
The City of San Rafael, located in the North Bay region of the San Francisco Bay area,
is home to 58,000 residents. With new development in an expanding downtown area, the
City has recently completed a parking and wayfinding study1 to effectively manage current
and future parking supply and demand. With just over 3,000 paid public parking spaces,
the City actively monitors parking supply and demand to make program adjustments
when parking occupancies exceed 85%.
Table 4. San Rafael Parking Rates
Parking Rate Time
Limit Hours of Operation
On-Street $1.50 / hr 2 hours Mon-Sat 8am-6pm
$1.50 / hr 10 hours Mon-Sat 8am-6pm
Parking
Lots
$0.75 / hr 2 hours Mon-Sat 8am-6pm
$0.75 / hr 10 hours Mon-Sat 8am-6pm
Garages A & C Garages: 10 hours Mon-Sat 6am-11pm $1.00 / hr
Monthly Permit Rates
Permits
A & C Garages:
Frequent Parker
Card;
Monthly Permit
50% discount ($0.50 / hr);
$73.00
1.4.1. On-Street Parking
San Rafael implemented a simple single rate structure with short -term, two-hour meters
and long-term, ten-hour meters both $1.50 per hour. Parking meters at both on -street and
1 San Rafael Downtown Parking/Wayfinding Study Final Report
off-street locations are operated between 8:00 am and 6:00 pm Monday through
Saturday.
1.4.2. Off-Street Parking
San Rafael uses a unified rate structure for their four long-term and nine short-term
parking lots. Short-term, two-hour meters and long-term, ten-hour meters are $0.75 per
hour.
1.4.3. Garage Parking
The City of San Rafael manages two parking garages. Similar to on-street and off-street
paid parking locations, the garages have a single hourly rate of $1.00. Drivers who seek
longer term parking, such as local employees or commuters, can park at the garages for
up to 10 hours.
1.4.4. Permits
Drivers needing monthly parking can purchase a Frequent Parker Card, which allows the
user to park at the garages for $0.50 per hour. This option is promoted for those who
need to park downtown regularly, but not daily. Full-time parkers can purchase a monthly
permit for the garages for $73.00.
1.5. Berkeley, CA
Berkeley, CA, is home to 123,000 residents and the University of California, Berkeley.
The City manages over 3,700 public parking spaces at its on -street meters, two parking
lots, and three parking garages.
Figure 5. San Rafael Interactive Parking Map
In July 2013, the City launched goBerkeley2, a pilot parking program in Berkeley’s four
commercial zones. goBerkeley is used to make demand-based decisions to set parking
rates and time limits in the commercial zones. Parking activity is analyzed to adjust area
regulations and rates to ensure that one to two parking spaces are available per block.
While Berkeley does not have a map specific to its parking meters or the goBerkeley
program, the Berkeley Downtown Business Association does publish a map of parking
facilities (private and City-owned) and transit options (Figure 6). goBerkeley areas are
identified by custom “Premium Rate” and “Value Rate” signage (Figure 7).
2 goBerkeley information
Figure 6. Downtown Business Association Parking Map
Table 5. Berkeley Parking Rates
Parking Rate Time Limit Hours of Operation
On-Street
$3.75 / hr 2 hours Mon-Sat 9am-6pm
$2.50 / hr 4 hours Mon-Sat 9am-6pm
$3.25 / hr 2 hours Mon-Sat 9am-6pm
$2.50 / hr 8 hours Mon-Sat 9am-6pm
$2.00 / hr 2 hours Mon-Sat 9am-6pm
$1.75 / hr 4 hours Mon-Sat 9am-6pm
$2.75 / hr 3 hours Mon-Sat 9am-6pm
$1.50 / hr 2 hours Mon-Sat 9am-6pm
$1.50 / hr 1 hour Mon-Sat 9am-6pm
Parking
Lots
$2.50 / hr 4 hours Mon-Sat 7am-10pm
$1.25 / hr 3 hours Mon-Sat 7am-6pm
Garages
Center Street Garage:
None
Mon-Fri 5am-12am;
Sat 7am-12am
Sun 12pm-12am
$3.00 / hr for hrs 1-4;
$25.00 flat 4hr+;
$15.00 flat enter before 9am, exit
before 6pm;
$8.00 flat after 5pm to close;
$25.00 flat applied after close
Oxford Garage:
None Mon-Sun 7am-12am
$2.00 / hr for hrs 1-3;
$17.00 4hr+;
$5.00 flat after 5pm to close;
$17.00 flat applied after close
Telegraph Channing Garage:
None
Mon-Thurs 7am-1am;
Fri-Sat 7am-2am;
Sun 8am-10pm
1st hr free;
$1.00 / hr for hrs 2-4;
$16.00 4hrs+;
$9.00 flat enter before 9am, exit
before 6pm;
$4.00 flat after 8pm to close;
$16.00 flat applied after close
Monthly Permit Rates
Permits Center Street Garage $250.00
1.5.1. On-Street Parking
On-street parking in Berkeley operates
between 9:00 am and 6:00 pm, Monday
through Saturday. In the goBerkeley
program areas, rates vary between $1.75
and $3.75 per hour. All on-street metered
areas outside the goBerkeley program are
$1.50 per hour. Meter time limits vary by
block and are either one, two, three, four,
or eight-hour time limits. 30-minute
meters are scattered throughout the
meter zones to allow for short-term
parking.
1.5.2. Off-Street Parking
The City’s two parking lots are part of the goBerkeley program. Parking in the Berkeley
Way Parking Lot is $2.50 per hour and is operated from 7:00 am to 10:00 pm , Monday
through Saturday. Parking in the Elmwood Parking Lot is $1.25 per hour and is operated
from 7:00 am to 6:00 pm, Monday through Saturday.
1.5.3. Garage Parking
The City of Berkeley operates three parking garages. The new 720 space parking garage,
Center Street, opened in downtown Berkeley in November 2018. Daily operations at the
parking garages are managed by LAZ Parking. In June 2019, the City partnered with the
mobile payment provider, ParkMobile, to accept and process online reservations for
parking at the Center Street Garage. Rates at the parking garages vary between $1.00
and $3.00 per hour depending on location and demand with daily flat rates between $9.00
and $25.00.
1.5.4. Permits
Monthly permits for the parking garages can be purchased through LAZ parking. Due to
the high monthly price of $250 per month, these permits are a cost savings only to those
who need daily parking at an average of at least eight hours per day.
2.0 Parking Rate Policy and Occupancy Data
In April 2017, the City approved a parking rate policy (Appendix B.), which gives the
Parking Place Commission the authority to adjust on- and off-street parking rates upon
the completion and review of an occupancy study. The intent of establishing an 85%
Figure 7. goBerkeley Zone Signs
occupancy parking policy is based on well-accepted planning studies and an effective
strategy to manage on-street parking and congestion.
Per the approved policy, a designated block, parking lot, or parking zone observed to
have an average occupancy above 85% may be considered for a rate increased; areas
below the 85% threshold may be considered for a rate decreased; and areas at, or near
85% may remain at the current rate.
In November 2017, the City hired a consultant to collect occupancy data and conduct a
parking study. One weekday was surveyed in November of 2017 and one weekend day
was surveyed in January of 2018. Parking spaces were observed every hour between
8:00 am and 9:00 pm and occupancy data recorded.
Upon the completion of the study, the consultant found that when compared to the 2016
study, there was a general increase in parking occupancy with many areas exceeding the
85% occupancy threshold at multiple points throughout the recording times.
The City is currently completing a new parking occupancy study and results should be
available in August of 2019.
3.0 Report Recommendations
Based upon the Comparable Cities Analysis and the forthcoming parking occupancy
study, below are some recommendations for adjustments to the current parking pro gram:
Upon the completion of the new parking occupancy study, adjust on-street rates in
areas averaging above 85% occupancy to $1.50 for downtown core spaces and
$1.25 for perimeter spaces.
o A rate of $1.50 per hour is fairly consistent with the hourly rat e charged in
nearby municipalities.
Consider waiting on adjusting hourly lot rates until the completion of the new
parking facility.
o With the new facility offering approximately 350 additional parking stalls,
demand in off-street parking lots and the Miller Parking Garage could
decrease.
o The current rate of $0.75 to $1.00 per hour is in line with nearby
municipalities.
Consider increasing the hourly rate in the Miller Parking Garage, and setting the
rate at the new facility, to $0.75 per hour.
o Compared to nearby municipalities, hourly rates in the Miller Parking
Garage is below the average of $1.40 for nearby municipalities.
In addition to reviewing a rate increase at the garages, consider implementing a
daily flat rate of $5.00 for garages.
o For longer-term parkers averaging a need of eight hours of parking per day,
a $5.00 daily flat rate would save the user $1.00 per day and encourage
longer-term parkers to utilize the garages instead of short-term, high
demand on-street and lot spaces.
Consider a moderate increase of $5.00 to current monthly parking permit rates.
o Lot and garage permit rates for the City are quite a bit lower than the
average of $87.00 per permit at nearby municipalities.
o Establishing a permit rate increase to not price out local employees is
imperative to a thriving downtown commercial district.
o Alternatively, the City could consider offering a lower income employee
permit in conjunction with an increase to standard monthly permits.
Employees at local businesses that meet lower wage thresholds
could qualify for a discounted monthly parking permit.
Appendix A1. On-Street Parking
On-Street Parking Rate Comparison
City Rate Time Limits Hours of Operation
South San Francisco
$1.25 / hr 2 hours Daily 9am-8pm $1.00 / hr 10 hours
San Mateo
$1.50 / hr 3 hours Mon-Sat 8am-6pm $1.00 / hr
$0.25 / hr None
Redwood City $0.25 / hr None Mon-Sat 10am-6pm $1.00 / hr 2 hours
San Rafael $1.50 / hr 2 hours Mon-Sat 8am-6pm 10 hours
Berkeley
$1.50 / hr 1 hour
Mon-Sat 9am-6pm
2 hours $2.00 / hr
$3.25 / hr
$3.75 / hr
$2.75 / hr 3 hours
$1.75 / hr 4 hours
$2.50 / hr 8 hours
Appendix A2. Off-Street Parking
Parking Lot Rate Comparison
City Rate Time Limits Hours of Operation
South San Francisco
$0.75 / hr 2 hours
Daily 9am-6pm $1.00 / hr 5 hours
None $3.00 / day
San Mateo $0.25 / hr None Mon-Sat 8am-6pm $0.75 / hr
Redwood City $1.00 / hr None Mon-Sat 10am-6pm
San Rafael $0.75 / hr 2 hours Mon-Sat 8am-6pm 10 hours
Berkeley $2.50 / hr 4 hours Mon-Sat 7am-10pm
$1.25 / hr 3 hours Mon-Sat 7am-6pm
Appendix A3. Off-Street Parking
Parking Garage Rate Comparison
City Rate Time Limits Hours of Operation
South San Francisco $0.50 / hr None Daily 9am-8pm
San Mateo
$1.25 / hr None
Mon-Sat 8am-6pm $0.75 / hr 3 hours
10 hours
Redwood City
$1.00 / hr
None Mon-Sat 10am-6pm
$0.25 / hr
$2.50 / hr Mon-Sat after 6pm
San Rafael $1.00 / hr 10 hours Mon-Sat 6am-11pm
Berkeley
$3.00 / hr for hrs 1-4;
$25.00 flat 4hr+;
$15.00 flat enter
before 9am, exit
before 6pm;
$8.00 flat after 5pm to
close;
$25.00 flat applied
after close
None
Mon-Fri 5am-12am;
Sat 7am-12am;
Sun 12pm-12am
$2.00 / hr for hrs 1-3;
$17.00 4hr+;
$5.00 flat after 5pm to
close;
$17.00 flat applied
after close
None Mon-Sun 7am-12am
1st hr free;
$1.00 / hr for hrs 2-4;
$16.00 flat 4hrs+;
$9.00 flat enter before
9am, exit before 6pm;
$4.00 flat after 8pm to
close;
$16.00 flat applied
after close
None
Mon-Thurs 7am-1am;
Fri-Sat 7am-2am;
Sun 8am-10pm
Appendix A4. Off-Street Parking
Permit Rate Comparison
City Permit Monthly Rate
South San
Francisco
City Lots $40.00
Miller Avenue Parking Garage $30.00
San Mateo
Central Garage $100.00
Main Street Garage
$65.00 Transit Center Garage
2nd & El Camino Garage
Tennis Court Garage
Kinko's Lot - 4th & Claremont
$40.00 South Railroad Avenue – 5th to 9th Ave
Workers Resource Lot – 5th and Claremont
Redwood City
Marshall Garage:
Mon-Fri until 7pm $60.00
Marshall Garage:
Mon-Fri until 1am $80.00
Marshall Garage:
Daily until 1am $100.00
Main Street Lot:
Mon-Fri until 6pm $40.00
Main Street Lot:
Daily until 6pm $60.00
Sequoia Station Garage $100.00
San Rafael
A & C Garages:
Frequent Parker Card 50% discount ($0.50 / hr)
A & C Garages:
Monthly Permit $73.00
Berkeley Center Street Garage $250.00
Appendix B. South San Francisco Parking Rate Policy3
Approved by the Parking Place Commission April 11, 2017
The intent of the City of South San Francisco parking rate policy is to establish guidelines
for adjusting rates within the Downtown Parking District to maximize access to
customers, visitors and employees. Rate adjustment is a standard operating practice
within the overall parking management system. The rate policy establishes the
procedure by which parking rates are adjusted for both on-street and off-street hourly
and off-street permit parking within the parking district.
Annually, the City Council shall adopt hourly and permit parking fee ranges in the Master
Fee Schedule. The Parking Place Commission has the authority to modify the rates for
hourly and permit parking within the rate schedule established by the annual Master Fee
Schedule. In addition, the Parking Place Commission is authorized to adjust parking time
limits within the Downtown Parking District.
No later than May of each year or at a time established by the Parking Place
Commission, there will be a review of on-street and off-street parking occupancy rates,
a review of the district’s operating costs, and a review of comparable business areas
parking costs. The comparable business areas shall be approved by the Parking Place
Commission and revised as needed.
The standard threshold of occupancy shall be 85 percent within a designated block,
parking lot, or parking zone. If the occupancy is higher, rates may be adjusted up and if
the occupancy is lower, rates may be adjusted down in order to achieve the desired 85
percent occupancy. The rates may be adjusted by block, parking zone, or lot. The rates
will be higher in high demand areas and lower in low demand areas.
Parking occupancy data will be collected at least every 24 months. The Parking District
staff shall utilize a consultant or perform the occupancy audit in-house using the latest
technology available including license plate readers for both on -street and off-street
occupancy data. The occupancy count will occur on at least one weekday and one
Saturday from the hours of 8 am to 8 pm with counts performed every hour for on -street
spaces and every two hours for off -street spaces.
Rates may be adjusted to maintain the normal operating costs of the parking inventory.
Costs include supplies, operating fees, maintenance, support and operation of the on -
street pay-to-park system. Rates may also be adjusted to include the reasonable cost of
financing debt incurred by equipment purchases, upgrading technology and/or other
3 http://www.ssf.net/home/showdocument?id=13920
factors necessary for the growth and improve ment in operating the Downtown Parking
District. The operating cost adjustment does not include the cost of enforcement.
Hourly Parking Rates (on and off-street)
• The Parking Place Commission can approve a resolution to adjust the rates at
any regularly scheduled Parking Place Commission meeting. The new hourly
rates will be posted on-line at www.ssf.net for at least 30 days after the rate is
adopted before the new rates take effect.
• The minimum and maximum hourly rates are established by the Master Fee
Schedule.
• Rate adjustments for occupancy shall be increments up to $0.25.
• Rates may be based on demand, where certain times of day charge a higher
cost per hour than other times.
• Rates may be adjusted in accordance to the rate range established in
the Master Fee Schedule.
Parking Permits
• The Parking Place Commission can approve a resolution to adjust parking
permit rates at any regularly scheduled Parking Place Commission meeting.
The new permit rates will be posted on-line at www.ssf.net for at least 45
before taking effect.
• The minimum and maximum permit fees are established by the Master Fee
Schedule.
• Annual permits will be eliminated as online permit payment systems become
available.
• Monthly permit rates may be adjusted in increments up to $10.00 per month.
• Costs of maintaining an online permit system may be included in the monthly
permit rates.
Appendix C. South San Francisco Parking
Meter and Parking Permit Rates for FY 2018-19
Parking meters and lots
operate Monday through
Saturday, times noted on
meters and signage.
Minimum purchase with
credit card $1.00
Minimum Hourly
Rate
Maximum
Hourly Rate
Set Hourly Rate
approved by
Parking Place
Commission
Time Limits subject to
change per Parking
Place Commission
Grand Avenue , Cypress
to Walnut $0.50 $3.00 $1.25 Per hour, up to two
hours, 9 am to 8 pm
Grand Avenue, Walnut to
Spruce $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Grand Avenue, Airport to
Cypress $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 8 pm
Maple Avenue (200 and
300 blocks) $0.50 $3.00 $1.25 Per hour, up to two
hours, 9 am to 8 pm
Linden Avenue (200 and
300 blocks) $0.50 $3.00 $1.25 Per hour, up to two
hours, 9 am to 8 pm
Cypress Avenue (200 and
300 blocks) $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Baden Avenue (300 block) $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Spruce Avenue, Baden to
Grand $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Miller Avenue, Linden to
Maple $0.50 $3.00 $1.00 Per hour, up to ten hours,
9 am to 6 pm
Miller Avenue, Airport to
Linden, $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Airport Boulevard $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Cypress Avenue (400 and
500 blocks), $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Linden Avenue (100 and
400 blocks) $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Lux Avenue $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
Walnut Avenue $0.50 $3.00 $1.00 Per hour, up to ten hours,
9 am to 6 pm
24 minute spaces $0.10 per 3
minutes
Metered Spaces in Parking Lot Numbers:
#1 $0.50 $3.00 $1.00 Per hour, up to five
hours, 9 am to 6 pm
#4 $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
#2 (west) $0.50 $3.00 $1.00 Per hour, up to two
hours, 9 am to 6 pm
#5 (west) $0.50 $3.00 $1.00 Per hour, unlimited, 9 am
to 6 pm
#12 (east) $0.50 $3.00 $1.00 Per hour, unlimited, 9 am
to 6 pm
#15 $0.50 $3.00 $1.00 Per hour, up to two hours
9 am to 6 pm
#16 $0.50 $3.00 $1.00 Per hour, unlimited, 9 am
to 6 pm
#17 $0.50 $3.00 $0.75 Per hour, up to two
hours, 9 am to 6 pm
Permit Rates (Lots 1, 2, 4, 5, 7, 12, 14, 18)
Minimum
Rate Maximum Rate
Set Hourly Rate
approved by
Parking Place
Commission
Time Limits subject
to change per
Parking Place
Commission
Daily Permit
(Lot 7 Only)
$3.00 $6.00 $3.00 9 am to 6 pm
Monthly
Permit
$40.00 $100.00 $40.00
Quarterly
Permit
$120.00 $400.00 $120.00
Miller Avenue Parking Garage Rates
Minimum Rate Maximum Rate
Set Hourly Rate
approved by
Parking Place
Commission
Time Limits subject to
change per Parking
Place Commission
Spaces $0.50 per hour $3.00 per hour $0.50 9 am to 6 pm
Monthly
Permit
$20.00 $80.00 $30.00
Quarterly
Permit
$90.00 $240.00 $90.00
SOUTH SAN FRANCISCO
PARKING GARAGE 2
PRESENTATION TO THE CITY COUNCIL
OCTOBER 22, 2019
EXKU(IVf SUMMARY
FIGURE Et: DOWNTOWN SOUTH SAN FRANCIKO STUDY AREA
Downtown Study Area
Core
ii Periphery
_ off-street
0
NORTH
TAMARACK
MILLER
�i i�•iiiiiiii�
GRAW
BRDEN
��•a��iii si iiai•
125 250 Feet
'Lot 7 Is currently scheduled for redevelopment and is not included in this study
11"o,
N
4'H
Z
LOT LOT
4 Is
!pT
J
aw
VIUAGE
Initial site selections
Old Firehouse (201 Baden)
-> Lot dimensions don't provide
enough parking spaces
Existing firehouse would need to
be demolished and will lead to
additional costs.
Site is located further away from
main downtown area.
V
Parking Lots 5 and 12
aT High cost of land acquisition and
associated processes and
approvals
Parking Lot
Ices
'00
- J1.
3, 131cls(
S San Franct
4694,
Options Summary
Option A
Standalone Parking Structure
Option B
Parking Structure & Roofpark
Option C
Parking Structure, Offices, Extended Rodpark
Option D
Parking Structure & Offices
Parking sf
127,800
107,100
119,000
115,369
Offices sf
0
0
33,920
21,424
Park sf
0
21,130
41,830
0
Gross sf
127,800
128,230
194,750
136,793
Stall Count
378
334
370
326
sf/stall
339
321
322
354
Construction Cost
$31,413,000
$32,729,000
$64,776,000
$47,82.4,000
ECT NUMBER: P�.IECTNMIE 9H�T NRNE'.
19466 SOUTH SAN FRANCISCO PARKING STRUCTURE
�1fATIlY DESI6�„ IBC.
CITY OF SOUTH SAN FRANCISCO �09 06-2019
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19-066.. SOUTH SAN FRANCISCO PARKING STRUCTURE CITY OF SOUTH SAN FRANCISCO 09-06-2019
TOTAL STALL: 378
VERTICAL CORES
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Option B - Parking Structure & Roof Park
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TOTAL STALL: 334
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)n C - Parking Structure, Offices & Extended Roof Park
)BICINS, INC. I PUTH SOSAN FRANCISCO PARKING STRUCTURE e I �EETwME CITY OF SOUTH SAN FRANCISCO �09-06-2019
TOTAL STALL: 370
0 VERTICAL CORES
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19-066 P SOUTH SAN FRANCISCO PARKING STRUCTURE PKA2AC LEVEL 01 PARKING PLAN CITY OF SOUTH SAN FRANCISCO 10-17.2019
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19-066� P SOUTH SAN FRANCISCO PARKING STRUCTURE-PKA16C PERSaCITY OF SOUTH SAN FRANCISCO 10-13-2019
WAT
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Option D - Parking Structure & Offices
19-066 P SOUTH SAN FRANCISCO PARKING STRUCTURE CITY OF SOUTH SAN FRANCISCO 09-06_2019
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TOTAL STALL: 343
® VERTICAL CORES
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19-066 SOUTH SAN FRANCISCO PARKING STRUCTURE _PKA2.1 D LEVEL 01 PARKING PLAN CITY OF SOUTH SAN FRANCISCO 10-17-2019
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u.TE iwu-
CITY OF SOUTH SAN FRANCISCO 10-17-2019
— - = lAi'R1P DESIGN, INC. ,E r� MaEq E . E �,EE,� uC,—E — 7-
19-066 P SOUTH SAN FRANCISCO PARKING STRUCTURE PKA16O PERSPECTIVE VIEWS CITY OF SOUTH SAN FRANCISCO �10-17-2019
Amhi , - f wim- • bOkm M—
Parking Rates
Fee Type Current Rates for $30 M Bon
Hourly (Garage) $0.50 $1.00
Monthly (Garage) $30.00 $75.00
Daily Flat Rate (Garage) none $6.00
Monthly (Lots) $40.00 $100.00
Metered (On -Street) $1.00 $2.50
Next Steps
Staff is seeking Council's direction on continuing to advance
conceptual designs, and working with the Parking Place
Commission to begin increasing parking rates.
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:19-881 Agenda Date:10/22/2019
Version:1 Item #:2.
Study session regarding a potential measure to be approved by voters to levy a parcel tax on vacant properties.
(Sky Woodruff, City Attorney)
RECOMMENDATION
Staff recommends that City Council receive a report regarding adoption of a parcel tax on vacant properties,
including Staff recommendations, discuss options, and provide further direction and input to staff.
BACKGROUND/DISCUSSION
The City Council expressed interest in placing a vacant property parcel tax measure on the March 2020 ballot.
This report is intended to provide more detailed information about how a tax of this kind would work.In
addition,the report outlines important discussion topics for the City Council so that they can provide further
direction to staff.
Purpose of a vacant property tax
A vacant parcel tax is a tax which will discourage property owners from keeping properties vacant.Oakland
recently enacted a vacant property tax.In Oakland,city officials cited significant vacancy of property,
including residential and commercial land and buildings left unused for long periods of time,as a basis for
proposing the tax.The City of Oakland noted that properties were kept vacant,undeveloped,and unoccupied by
any legal use and therefore depriving the community of the economic opportunity and housing that could be
provided if those properties were put into use.In addition,Oakland rationalized that when properties are kept in
a vacant state they have negative impacts on the community,including encouraging blight,crime,and illegal
dumping.
The City of Vancouver,Canada,also adopted a similar tax.In both cases,the intent of the tax is to discourage
behavior that has negative consequences on the public by increasing the economic cost of engaging in the
harmful behavior. That use of the taxing power has a long tradition.
It is worth noting that the tax could apply to single-family residential property,but it is not required to be.Since
the tax is intended,in part,to address property types that the City Council thinks have a disproportionately high
rate of vacancy with negative effects on the community,single-family residential or any other property type
would not have to be potentially subject to the tax if the City Council felt that vacancy rates were normal or not
problematic.
Oakland’s recent vacant property tax
As discussed above,the City of Oakland adopted a vacant property at the November 2018 election (Measure
W).Although there are many ways that South San Francisco might choose to draft and administer its own tax,
the Oakland tax serves as a useful model.In Oakland,the vacancy tax was adopted as a special tax with the
revenues earmarked exclusively for services and programs to address homelessness and blight elimination.
The tax applies to all vacant property throughout the City of Oakland,including undeveloped property andCity of South San Francisco Printed on 12/26/2019Page 1 of 5
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File #:19-881 Agenda Date:10/22/2019
Version:1 Item #:2.
The tax applies to all vacant property throughout the City of Oakland,including undeveloped property and
individual residential units-in other words,both undeveloped property and developed property that are not in
active use.It also includes multi-family residential properties.Oakland was concerned with property being left
undeveloped,existing residential units not being occupied,and property owners not actively seeking to tenant
commercial spaces. Vancouver was primarily concerned with existing residential units not being occupied.
Under Oakland’s Measure W,a parcel is classified as “vacant”if it is in use less than fifty (50)days during a
calendar year.
The Oakland tax rate was established as $6,000 per parcel for residential,non-residential,and undeveloped
land,and $3,000 per parcel for condominiums,duplexes or townhouses,as well as for parcels with ground floor
commercial vacancies.
Importantly, certain exceptions apply. Examples include but are not limited to owners:
•Who qualify as very low-income.
•For whom the payment of the tax would be a financial hardship.
•Whose property is vacant as a result of a demonstrable hardship unrelated to personal finances.
•Who can demonstrate that exceptional specific circumstances prevent the use or development of the
property (i.e. property damage by a recent natural disaster).
•Whose property is under active construction.
•Who have an active building permit application being processed by the city.
The details of those exceptions and other administrative aspects of the tax are currently being worked out
through the development of a companion ordinance to Measure W.
Originally,Oakland planned to have property owners “self-certify,”vacancies,meaning that a certification form
would be mailed to the owner of record for every parcel of real property in the city and each property owner
would certify that a parcel of real property is,or is not,vacant,and claim an exemption,if applicable.A fine of
up to five thousand dollars ($5,000)was contemplated for the knowing submission of a false certification form.
It now appears that Oakland,in an effort to refine its administrative procedures,is taking a slightly different
approach.The City has already sent information about the vacant property tax to all property owners who have
a mailing address different than the physical address of property they own,in an effort attempt to get the word
out about the impending levy.The City plans to send an “initial vacancy determination”in early 2020,after
they have made a determination regarding vacancy based on City-owned and publically available information.
After receipt of the vacancy determination,a property owner would have opportunity to rebut the city’s finding
of a vacancy by submitting proof of occupancy.
Oakland’s codified ordinance,along with its draft ordinance governing administration of the vacant property
tax are attached to this staff report for reference as Attachments 1 and 2, respectively.
Considerations for a potential South San Francisco vacant property tax
Vacant commercial property is a concern in South San Francisco.These vacant properties contribute to blight
and a diminished quality of life for those around the vacant property,the same complaints heard in Oakland.
Vacant commercial properties also require greater attention by City staff such as Code Enforcement,Fire,
Police and general staff time responding to the public’s complaints about the property.Consequently,City
Council may want to consider a vacant parcel tax impacting undeveloped property,developed but vacant
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File #:19-881 Agenda Date:10/22/2019
Version:1 Item #:2.
Council may want to consider a vacant parcel tax impacting undeveloped property,developed but vacant
commercial property,and property with vacant ground floor retail space.The City Council could broaden or
narrow the property types subject to the tax.
Economic and Community Development staff acknowledge that the leased retail market is going through
tremendous changes and challenges,due to the growth/maturation of Internet-based retailers,changing
consumer tastes,and other macroeconomic trends.As a consequence,retail properties face significant
challenges in maintaining occupancy.One potential use of revenue from the tax could be to provide low-
interest loans for the owners of retail space to upgrade or reposition their properties.
As part of the consideration of potential tax rates,the City Council could direct that the rates be the maximum
allowable,with specific text in the measure that would allow the City Council to adjust the rates based upon
future economic conditions.If there were a significant recession,and the City Council felt that an increase in
vacant property subject to the tax was beyond the control of property owners,the City Council would have the
ability to adjust the rates or suspend the tax until economic conditions improved.
Procedural requirements for adoption of a special tax
The steps for adoption of a vacant property tax would be as follows.
First,the Council would adopt a resolution calling an election.The resolution calling the election must include
the type of tax,the tax rate,the method of collection,and the date of the election.In addition,because it is a
special tax,the resolution would also need to include a description of the purpose of the tax and accountability
measures restricting the tax revenue to the identified purpose of the special tax.The resolution calling the
election would also include the ballot question,which can be no longer than seventy-five (75)words.A public
hearing would be required but there are no special noticing requirements.
Attached to the resolution calling for an election would be the proposed ordinance,which,if approved by the
voters,would be adopted by the people.Such ordinance would become effective ten days after the results of the
election are certified.(Elections Code §9217.)Unlike the Oakland model,it is recommended that a single
ordinance contain the tax and the administration thereof.But the ordinance can be written to allow the City
Council to make amendments,as long as they do not result in an increase in a tax rate or the imposition of the
tax on someone previously not subject to it.
Note also that the Council must comply with CEQA prior to placing a measure on the ballot.In the case of a
proposed vacant parcel tax,we believe that this requirement can be met by a finding that the proposed tax does
not constitute a project under CEQA.
To impose a parcel tax,the measure requires approval by two-thirds of the voters voting at the election.As a
special tax,the proceeds must be placed in a special fund to be used only for the purposes specified in the
measure.Since the passage of Proposition 13 in 1978,cities have not had the power to impose property taxes
based on the value of property.Although there is an “ad valorem”property tax,it is imposed by Art.XIIIA,§1
of the California Constitution.Proposition 13 and state statutes preserved the power of cities to impose other
taxes on property.A parcel tax is a tax on parcels of real property collected as part of a property tax bill.Unlike
a property tax,the parcel tax cannot be based on property value.Historically,it has primarily been a flat rate
per parcel, but it can also include rates based upon the size or characteristics of a parcel.
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File #:19-881 Agenda Date:10/22/2019
Version:1 Item #:2.
Timing of a potential tax measure
If a measure is placed on the March 2020 ballot,the tax could be levied as soon as August of 2020 (collected
2020/2021).Alternatively,the measure could be crafted so that the tax would not be levied until 2021 (collected
2021/2022).
Key elements of a potential vacant property tax for City Council discussion
Staff is making recommendations on essential items,as well as requesting input from the Council on other
pertinent topics.Note that the staff recommendations below do not constitute an exhaustive list,and additional
topics are likely germane to those listed. Staff is seeking direction on the following questions:
1.Does City Council want to place a vacant parcel tax on the March, 2020, ballot?
2.The proceeds of a special tax must be placed in a special fund and may be used only for the purposes
specified in the measure.Staff suggests that the tax proceeds be used to fund loans to property owners for (a)
improvements to structures,or (b)to address property conditions that would assist in making properties
marketable and/or developable, both areas having a nexus to the blighted condition being addressed.
3.What is the applicable tax rate?Staff suggests a rate of $10/square foot of vacant built space and
$0.10/square foot for undeveloped land. The City Council could include a cap on the total amount of tax.
4.The tax could apply to all types of property that meet the definition of “vacant,”as established in the
ordinance.Single-family residential,multifamily residential,ground-floor retail,developed commercial
property,and undeveloped land could all be subject to the tax,depending upon which types of vacant properties
the City Council considers to be problematic for the community.Staff suggests that the tax apply to (a)
developed but vacant commercial property and (b)properties with vacant ground floor commercial space.City
and Successor Agency property would be exempt. To what property should the tax apply?
5.How long does a property need to be unused to classify it as “vacant?”Staff suggests that a property be
classified as “vacant” if it is unoccupied for eight (8) or more months during a calendar year.
6.Should the new parcel tax include penalties?Staff suggests a five thousand dollars ($5,000)fine for
knowingly submitting a false certification form.Note that such penalty is tied to a self-certification method for
vacancies.
7.There may be circumstances in which there are reasons outside of the property owner’s control for the
vacancy of property.Should the ordinance recognize some of those conditions as the basis for exceptions?Staff
suggests exceptions for (a)significant financial hardship of the owner,(b)non-financial hardship of the owner
(e.g.family medical situation that prevents active property management),or (c)exceptional circumstances that
limit the development or marketing of property (e.g.environmental contamination).Property owners would
have to apply for an exception at the time of submitting their self-certification form.Decisions on exception
applications would be subject to appeal.
FISCAL IMPACT
Startup and first year administration costs are estimated to be $180,000 to $270,000,including mailings.Actual
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File #:19-881 Agenda Date:10/22/2019
Version:1 Item #:2.
election costs are not yet known.
CONCLUSION
The City Council has expressed interest in the possibility of levying a tax on vacant property within the City,
subject to voter approval.The City Council has a number of options for how to construct such a measure,if it
wishes to proceed with presenting it to the voters.The purpose of this study session is to outline some of the
choices and staff recommendations, and to receive feedback from the City Council.
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10/17/2019 Oakland, CA Code of Ordinances
1/8
i)
ii)
Chapter 4.56 - VACANT PROPERTY TAX
4.56.010 - De nitions.
"City" means the City of Oakland.
"Commission" means the Commission on Homelessness authorized by this Chapter.
"County" means Alameda County.
"Heavily Impacted Neighborhoods" means the geographic area defined by the boundaries of 2010 Census Tracts
4007, 4008, 4009, 4010, 4014, 4015, 4016, 4017, 4018, 4022, 4024, 4025, 4026, 4027, 4030, 4033, 4057, 4053.02,
4054.01,4054.02, 4055, 4056, 4058, 4059.01, 4059.02, 4060, 4061, 4062.01, 4062.02, 4063, 4064, 4065, 4071.01, 4071.02,
4072, 4073, 4074, 4075, 4076, 4077, 4085, 4086, 4087, 4088, 4089, 4090, 4091, 4092, 4093, 4094, 4095, 4096, 4097, 4102,
4103, 4104, and 4105. See Map (Attachment A) below.
"Mixed-Use Parcel" means a parcel that is improved with both:
At least one (1) residential unit; and
Uses other than a residential unit.
"Multifamily Residential Parcel" means all parcels that are improved with more than one (1) residential unit.
"Net General Purpose Fund Budget for Non-Safety Departments" means the total general purpose fund
appropriation to the operating budgets of the non-safety departments, excluding expenditures that are offset by fees or
other non-tax revenues.
"Nonresidential Parcel" means all parcels that are improved with uses other than residential units.
"Non-Safety Departments" means all operating departments of the City, except police and fire.
"Owner" means the owner or owners of the real property located within the City of Oakland.
"Parcel" shall mean a unit of real property in the City of Oakland as shown on the most current official assessment
role of the Alameda County Assessor.
"Residential Parcel" means all parcels that are improved with one (1) or more residential units.
"Residential Unit" means a building or structure, or portion thereof, designed for or occupied exclusively by one (1)
household, including unrelated persons who live together and maintain a common household.
"Single-Family Residential Parcel" means all parcels which are improved with only one (1) residential unit.
"Tax" or "Oakland Vacant Property Tax" means the special tax authorized by this Chapter.
"Undeveloped Parcel" means all parcels, regardless of zoning or other land use designation, upon which no
permanent improvements have been constructed or placed.
"Use" means the performance of a function or operation.
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A.
1.
2.
3.
B.
A.
B.
C.
D.
E.
1.
(Res. No. 87319, § 3, 7-24-2018)
Editor's note— Attachment A is not in fact below, but is attached to the ordinance from which this Chapter is derived
and can be inspected upon request at the City Clerk's office.
4.56.020 - Determination of vacancy.
For the purposes of this Chapter , a parcel of real property shall be deemed "vacant" and subject to the
tax imposed by Section 4.56.030 below if the parcel is any of the following:
A parcel of land, whether undeveloped, residential (including multifamily residential), or non-
residential, that is in use less than fifty (50) days during a calendar year.
A condominium, duplex, or townhouse unit under separate ownership that is in use less than fifty
(50) days during a calendar year.
A parcel of land where ground floor commercial activities are allowed by the applicable zoning (with
or without a use permit) or are a legal nonconforming use and all of the ground floor space that
could be lawfully occupied by commercial activities is in use less than fifty (50) days in a calendar
year.
The City Council shall establish, by ordinance, a method for determining and identifying the use and
vacancy status of each parcel of real property in the City.
(Res. No. 87319, § 3, 7-24-2018)
4.56.030 - Imposition of parcel tax on vacant property.
A special tax in the amounts set forth below is hereby imposed on every vacant parcel of real property
within the City, other than those exempted, as described below.
The tax constitutes a debt owed by the owner of each parcel to the City.
Unless the City Council selects another method for collection of the tax, the County shall levy and collect
the tax on each parcel of real property in the City for which the owner receives a separate ad valorem
property tax bill, at the same time and manner, and subject to the same penalties and procedures as ad
valorem property taxes collected by the County except as otherwise set forth in this Chapter.
If the City Council selects collection of the tax by the County, the tax shall be imposed on the ad valorem
property tax bill for the fiscal year that begins July 1 following the end of the calendar year in which the
parcel was vacant. The special tax shall first be imposed no sooner than the ad valorem property tax bill
for fiscal year 2020-2021 for parcels that were vacant in the previous calendar year.
Tax Rates.
The maximum tax rates for each property type shall be as set forth in the table below. The City
Council may lower, but not increase, the rates, and may by ordinance adopt further categories of
exemption. The City shall be responsible for assigning a tax rate for each parcel.
Property Type Annual Tax Rate
Residential $6,000.00 per parcel
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2.
3.
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Condominium, duplex, or townhouse unit under
separate ownership
$3,000.00 per vacant residential unit
Nonresidential $6,000.00 per parcel
Parcel with ground oor commercial activity
allowed but vacant
$3,000.00 per parcel
Undeveloped $6,000.00 per parcel
For parcels with multiple units, whether residential or non-residential, the parcel is not vacant if any
unit on it is not vacant. A condominium, duplex, or townhouse unit under separate ownership is
treated as a separate parcel for the purposes of this Chapter , and if it is vacant, is subject to the tax
regardless of the status of any other unit on the same lot or that is part of the same development.
For parcels where ground floor commercial activities are allowed by the applicable zoning (with or
without a use permit) or are a legal nonconforming use, if all of the ground floor space that could be
lawfully occupied by commercial activities is vacant, then the parcel shall be subject to the tax
regardless of whether any other portion of the structures on the parcel are occupied.
Real property otherwise wholly exempt from ad valorem tax by state law shall also be exempted from
the tax imposed by this Chapter.
Adjustment in Tax Rate. The City Council may, by resolution, establish an annual tax rate less than the
maximum amount then authorized. Following any such decrease in the annual tax rate, the City Council
may, by resolution, increase the annual tax rate to the maximum rate then permitted, or to any other
amount less than the maximum rate then permitted, without obtaining voter approval.
For parcels divided by tax rate area lines, the payment for the portion of the parcel within Alameda
County shall be calculated at the same rates as set forth above. For properties wholly within Alameda
County and divided by tax rate area lines into multiple parcels, the property shall be taxed as a single
parcel at the rates set forth above.
Imposition of Tax by Zones. The City Council may, by ordinance, establish zones or areas within the City
and may restrict the levy of the tax to properties within the zones or areas established.
Exemptions.
The following shall be exempt from the tax imposed by this Chapter :
An owner who qualifies as very low income, as the term "very low income" is defined by the
United States Department of Housing and Urban Development.
An owner for whom the payment of the tax imposed by this Chapter would be a financial
hardship due to specific factual circumstances.
An owner whose property is vacant as a result of a demonstrable hardship that is unrelated to
the owner's personal finances.
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d.
e.
f.
g.
(1)
(2)
h.
(1)
(2)
i.
j.
2.
3.
4.
An owner who can demonstrate that exceptional specific circumstances prevent the use or develo
property. By way of example only and without limiting the generality of the foregoing, exceptiona
circumstances that prevent the use or development of property include property damage by a re
an undeveloped parcel adjoining a developed residential parcel and used by the occupants as pa
property with physical conditions that prevent development. The details of this exemption shall b
separate ordinance of the City Council.
An owner of a property that is under active construction. To qualify for this exemption, an
owner must call for inspections of the construction with sufficient frequency to keep the
building permit or permits active.
An owner of property for which an active building permit application is being processed by the
City.
An owner:
Who is sixty-five (65) years of age or older; and
Who qualifies as "low income," as the term "low income" is defined by the United States
Department of Housing and Urban Development.
An owner who, regardless of age:
Receives supplemental security income for a disability; or
Social security disability insurance benefits, regardless of age and whose yearly income
does not exceed two hundred fifty (250) percent of the 2012 federal poverty guidelines
issued by the United States Department of Health and Human Services.
An owner that is a non-profit organization or entity owned or controlled by a non-profit
organization.
An owner of a parcel included in a substantially complete application for planning approvals
that has not yet received approval. An owner of a parcel for which a project with development
entitlements have been approved but needing time for completion may apply for and receive
an administrative two-year exemption.
The City Administrator's Designee (which if not otherwise designated shall be the Finance Director)
shall establish the procedures and guidelines for owners to apply for, and grant, the exemptions
identified in this Section. Owners who claim an exemption may be required to submit information
annually to substantiate their continuing qualification for the exemption.
The City Council may, by ordinance, establish such other exemptions to the tax imposed by this
Chapter and the authorized methods of collection of the tax, as it determines to be appropriate.
The City Council may, by ordinance, provide supplemental definitions for the exemptions in this
Section and for the administration of the exemptions as part of the collection of the tax.
(Res. No. 87319, § 3, 7-24-2018)
4.56.040 - Vacant property tax fund.
The "vacant property tax fund" ("fund") is hereby created as a special revenue fund. Proceeds from the Oakland
Vacant Property Tax Act, including penalties and interest earned on such proceeds, shall be deposited into the fund and
used only for the purposes listed in Section 4.56.050.
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A.
B.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
C.
D.
(Res. No. 87319, § 3, 7-24-2018)
4.56.050 - Use of Vacant Property Tax Act revenue.
Monies deposited in the vacant property tax fund shall be used solely for those purposes identified in
this Section.
Tax funds may be used to provide services and programs to homeless people, to reduce homelessness,
and to support the protection of existing and production of new housing affordable to lower income
households as defined in California Health and Safety Code Section 50079.5 at an affordable housing cost
or affordable rent as defined in Health and Safety Code Sections 50052.5 and 50053. Examples of such
uses include, but are not limited to:
Job training, apprenticeship, pre-apprenticeship, drug treatment, and job readiness assistance
programs for homeless people or those at risk of becoming homeless;
Assistance connecting homeless people or those at risk of becoming homeless with available
services and resources, including assistance applying for housing or public benefit programs;
Housing assistance, including the provision of temporary housing or move-in expenses, such as
first-month's rent and a security deposit, and emergency rental assistance;
Sanitation, bathroom, and cleaning services related to homeless encampments, and programs to
supplement remedying and deterring blight and illegal dumping throughout the City;
Incentive programs to encourage property owners to make space available for low-income housing,
including making funds available for physical improvements to enable a unit to be used for a
voucher-based housing program;
Relocation assistance funding for low-income households facing displacement;
Financial assistance for the design, development, construction or operation of affordable housing
units, including housing alternatives such as, without limitation, shipping container homes,
accessory dwelling units and small homes.
Accessibility support to provide or maintain housing, and make needed improvements for
accessibility, for seniors and persons with disabilities; and
Displacement prevention, tenant education and assistance, emergency rent assistance; and
Navigation centers to provide space for people to stay, along with on-site support services for the
homeless. Funding may be used for both capital and operating costs related to navigation centers;
and
Code enforcement and cleanup of blighted vacant properties, other blight elimination, and
remedying illegal dumping, including legal action to address any of the foregoing as necessary, no
less than twenty-five (25) percent of the revenue deposited into the vacant parcel tax fund in any
single year shall be used to pay for the uses listed in this paragraph.
Monies in the vacant property tax fund may be used to pay the costs of audits of the use of monies in the
fund.
Monies in the vacant property tax fund may be used to pay for the City's costs of the election required to
obtain voter approval of the tax authorized by this Chapter , including City Attorney costs to prepare this
Chapter and related documents. City Attorney costs shall be deposited in a revenue account for sole use
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E.
1.
2.
3.
4.
5.
F.
A.
B.
C.
1)
2)
by the office of the City Attorney.
Monies in the vacant property tax fund may be used to pay for the costs of administering the special tax,
regardless of how or by what entity those administrative services are provided. No more than fifteen (15)
percent of the revenue deposited into the vacant parcel tax fund in any single year may be used to pay
for such administrative costs, except that revenue used to pay for the costs of the Commission on
Homelessness established by Section 4.56.060 shall not count toward the fifteen (15) percent.
Notwithstanding the foregoing, the City shall be reimbursed for its actual costs of establishing the
program for collecting the tax, which costs shall be confirmed by the City Auditor. Administrative costs
include, but are not limited to:
The costs to the City of determining and identifying the use and vacancy status of every parcel in
the City;
The costs to the City associated with monitoring and enforcing compliance with this Chapter.
Authorized costs include, but are not limited to, any expenses, including attorneys' fees, associated
with any proceedings needed to enforce the requirements of this Chapter ;
The costs to the City associated with developing ordinances and regulations to implement this
Chapter ;
The costs to the City associated with the operations of the Commission on Homelessness
established by Section 4.56.060 of this Chapter ; and
Reimbursement to the County for the costs it incurs in collecting the tax.
If this Chapter or the use of tax funds is legally challenged, tax funds may be used to reimburse the City
for its costs of legal defense, including attorneys' fees and other expenses.
(Res. No. 87319, § 3, 7-24-2018)
4.56.060 - Commission on Homelessness.
The Commission on Homelessness is hereby established for citizen oversight of the Oakland vacant
property tax.
The Commission shall meet at least four (4) times per fiscal year.
The Commission shall review relevant financial and operational reports related to the expenditure of the
homeless services fund. The Commission shall publish an annual report regarding how and to what
extent the City Council and Mayor have implemented this Chapter. Additionally, the Commission shall be
requested to publish reports regarding the following:
Recommendations from the Commission on how to prioritize the allocation of funds in accordance
with the requirements of this Chapter , including for: services and programs for homeless people,
reduction of homelessness, and supporting the provision of affordable housing to households
qualifying as at least low-income households; and
Information, if available, concerning the impacts of this Chapter on homelessness and illegal
dumping outcomes in the City.
The City Council may assign other duties to the Commission as provided for by ordinance. Within fifteen (15) days of
receipt of a Commission report, the City Administrator or designee shall cause the report to be published on the City's
Internet website and to be transmitted to the City Council. Any recommendations from the Commission on prioritization
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E.
F.
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1.
2.
3.
4.
of funds in accordance with the requirements of this Chapter shall be approved no later than February 1 for
incorporation into the City budget for the following fiscal year, and such report shall be transmitted to the Council and
public for informational purposes in the budget or as an informational report at the meeting at which the City Council
appropriates funds generated by the special supplemental business tax.
The Commission shall consist of nine (9) members who are all residents of the City. No less than half of
the members must be residents of heavily impacted neighborhoods. No less than two (2) members must
be currently homeless, formerly homeless or low-income, as the term "low income" is defined by the
United States Department of Housing and Urban Development. No less than three (3) members must
have professional expertise in, or be providers of, homeless services or housing. No less than one (1)
representative must have financial expertise. Members may fulfill more than one (1) of these criteria for
the purposes of meeting these requirements. City Councilmembers shall make recommendations for
members to the Mayor. Members of the Commission shall be appointed by the Mayor and confirmed by
the City Council in accordance with City Charter Section 601. Members of the Commission shall receive
no salary for serving.
Members shall serve three (3) year terms, as provided for in this subsection. No member shall serve
more than two (2) consecutive three (3) year terms. Of the initial members of the Commission, three (3)
appointments shall be for one-year terms, three (3) appointments shall serve for two-year terms, and
three (3) appointments shall be for three-year terms. Thereafter, all terms shall be for three (3) years. All
terms of members shall begin as of the date that six (6) members have been appointed, which is when
the Commission may begin its work. All future terms shall begin and end on that date. A quorum of the
Commission shall be a majority of appointed members, but shall never be fewer than three (3) members.
A member may be removed for cause pursuant to City Charter Section 601. Absence from three (3)
consecutive regular meetings, or four (4) non-consecutive regular meetings during a single fiscal year,
may constitute cause for removal from the Commission, in accordance with City Charter Section 601.
The City Administrator or designee shall provide clerical assistance and administrative support and
technical assistance to the Commission.
(Res. No. 87319, § 3, 7-24-2018)
4.56.070 - Accountability.
In accordance with the requirements of California Government Code Sections 50075.1 and 50075.3, the
following accountability measures, among others, shall apply to the tax:
A separate, special account, referred to as the vacant property tax fund, shall be created, into which
the proceeds of the tax must be deposited.
The specific purposes of the tax are for the funding of programs and services for homeless people,
to reduce homelessness, and to support the provision of affordable housing and for the other
purposes set forth in Section 4.56.050 of this Chapter. The proceeds of the tax shall be applied only
to these specific purposes.
The Commission established by Section 4.56.060 shall perform the oversight functions listed in that
Section to ensure that the revenue from the tax is spent solely for the purposes listed in Section
4.56.050.
The City Auditor shall perform regular audits to ensure accountability and proper disbursement of
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B.
(1)
(2)
all revenue collected by the City from the tax imposed by this Chapter , in accordance with the
objectives stated herein and in compliance with provisions of California law.
The City's current general purpose fund expenditures for illegal dumping remediation may not be
replaced by this tax. For any year during which this tax is in effect, if the City's general purpose fund
expenditures on illegal dumping remediation are less than the amount expended in the 2016-2017 fiscal
year, this tax shall not be levied and collected. In the event that a severe and unanticipated financial or
other event occurs that so adversely impacts the general purpose fund as to prevent the City from
budgeting for and maintaining the level of general purpose fund expenditures on illegal dumping
remediation at the fiscal year 2016-2017 level, then the tax may nevertheless be levied and collected, if
both of the following two (2) conditions are met:
The City's reduction to general purpose fund illegal dumping remediation expenditures is no more
than the same proportion of reduction that is imposed on the City's net general purpose fund
budget for non-safety departments; and
The City Administrator submits a report to the City Council explaining the severe and unanticipated
event, the steps that were taken by the City to avoid the need to reduce general purpose fund
expenditures on illegal dumping remediation, and the steps that will be taken by the City in the
future to restore the fiscal year 2016-2017 level of general purpose fund expenditures on illegal
dumping remediation.
Such actions must be taken for each fiscal year in which the City fails to meet the level of general purpose fund
illegal dumping remediation spending required by this paragraph. Following any general purpose fund reduction in
illegal dumping remediation from the 2016-2017 fiscal year level and for the tax to be levied in any subsequent year, the
level of general purpose fund expenditures on illegal dumping remediation must be increased proportional to the
increases in the non-safety departments' net general purpose fund budgets up to at least the fiscal year 2016-2017 level
of general purpose fund expenditures on illegal dumping.
(Res. No. 87319, § 3, 7-24-2018)
FILED
Or ! ICE Uf: THE CI T T Cl '• I
OAKLAND AGENDA REPORTCITY OF OAKLAND an OCT 10 PH 3:52
TO: Sabrina B. Landreth
City Administrator
FROM: Adam Benson
Director of Finance
SUBJECT: Vacant Property Tax
Questions and Answers
DATE: October 1, 2019
/___/
MivjnCity Administrator Approval Date:
RECOMMENDATIONS
Staff Recommends The City Council:
1. Adopt An Ordinance Amending Oakland Municipal Code Title 4, Chapter 4.56 To
Clarify And Further Define Various Sections Of The Oakland Vacant Property Tax And
Establish A Method To Identify Vacant Property; And,
2. Adopt A Resolution Authorizing The City Administrator, Or Designee, To Negotiate
And Execute The First Amendment To The Agreement With SCI Consulting Group For
The Implementation, Administration And Management Of The Vacant Property Tax
For A Term Of Three Years Ending December 31, 2022 With Two One-Year Options To
Renew, At The City’s Complete Discretion, The Agreement Through December 31,
2024, Without Returning To The City Council For Approval, For A Not-To-Exceed
Compensation Of $1,270,000 For All Five Years.
REASON FOR SUPPLEMENTAL
On November 6, 2018, Oakland voters approved Measure W, the Vacant Property Tax Act, by a
margin of 70.04 percent, which established an annual tax on vacant property for 20 years to
raise revenue necessary to support and fund homelessness programs and services, affordable
housing, Code Enforcement, and clean-up of blighted properties and illegal dumping.
On September 24, 2019, the Oakland Finance and Management Committee held a public
meeting to consider the Administration’s proposed Implementation Ordinance that further
clarifies the definition of “use” for determining vacancy status and each of the 10 allowable
exemptions.
At the September 24, 2019 regular meeting of the Finance & Management Committee,
members of the public and the Committee raised many questions covering a wide range of
issues ranging from the Finance Department’s noticing process to the taxability of certain
specific circumstances, etc. This supplemental report is meant.to address those questions.
Item
City Council
October 15, 2019
Sabrina B. Landreth, City Administrator
Subject: Vacant Property Tax Implementation Ordinance
Date: October 1, 2019 Page 2
As the members of the public and the City Council review the answers to the questions, it is
important to keep in mind that the answers are strictly based on the version of the
Implementation Ordinance presented to the Finance & Management Committee on
September 24, 2019 and are subject to change to the extent that the City Council
approves any revisions or amendments.
Any revisions or amendments, however minor as it may seem, should be carefully considered in
the context of ensuring the ordinance can be objectively read and uniformly applied. As stated
in the staff report that accompanied the proposed Implementation Ordinance, the Administration
“is specifically attempting to avoid having City staff make subjective determinations about what
activities should and should not be taxed.”
(1)Why did residents whose properties are not vacant receive a notice?
Many public speakers asked why they received a notice from the City about the Vacant
Property Tax, even though their properties have been occupied continuously, sometimes
for many years.
Since December 2018, the City has sent several notices about the planned levy of the
Vacant Property Tax and the Implementation Ordinance. The City sent those notices to
all property owners whose mailing address is different from the physical address of the
property they own, as shown in county assessor records. As a result, every owner who
owns a property that they do not personally live on should have received a notice.
The overwhelming majority of notice recipients do not own “vacant” property. But, the
City’s notification method was intended to get word of the impending levy of the Vacant
Property Tax and the Implementation Ordinance to nearly all owners who could possibly
be subject to tax, either now or at some time in the future.
The City will attempt to send further notices regarding consideration of the
Implementation Ordinance. But when the City begins the process of identifying and
levying vacant properties, the City’s intent will be to send initial vacancy determinations
only to owners who the City has reason to believe may actually own vacant properties.
(2)How will owners demonstrate that properties occupied by a tenant who does not
pay rent, such as a relative, are not “vacant”?
If the Implementation Ordinance is approved, the City will begin sending initial vacancy
determinations in January and February 2020.
The City will make initial determinations about vacancy status based on City owned and
publicly available information. As a result, nearly all occupied properties, including
properties occupied by a non-rent paying relative, should not receive an initial vacancy
determination.
In the event an owner does receive a vacancy notice, the owner will have the opportunity
to submit proof of occupancy, which may include utility data or any other objective
evidence that demonstrates that the property was occupied for at least 50 days in the
year.
Item
City Council
October 15, 2019
Sabrina B. Landreth, City Administrator
Subject: Vacant Property Tax Implementation Ordinance
Date: October 1, 2019 Page 3
(3)What are the HUD financial income limits? What income levels qualify as “very
low income” and “low income”?
Exemptions for “very low income” and “low income seniors” are pegged to income limits
developed by the United States Housing and Urban Development Department (“HUD”)
for the “Oakland-Fremont, California HUD Metro Fair Market Rent Area”. HUD updates
those income limits annually.
For 2019, HUD has set the following income limits for the Oakland-Fremont Metro Area:.1
Persons in Family
1 2 3 4 5 6 7 8
"LowIncome
Limit’’
$130,100$69,000 $78,850 $88,700 $98,550 $106,450 $114,350 $122,250
"VeryLow
Income
Limit”
$43,400 $49,600 $76,850$55,800 $61,950
$66,950 $71,900 $81,800
Relevant Sections: Measure W, §§ 4.56.030(J)(1)(a) (‘very low income’ exemption);
4.56.030(J)(1)(g) (‘low income senior’ exemption)
Why are the income limits for the disability exemption different from the income
limits for the “very low income” and “low income seniors” exemptions?
Measure W created exemptions for ‘very low income’ and ‘low income senior’ taxpayers,
as described in response to question (3), based on HUD developed income limits for the
“Oakland-Fremont, CA HUD Metro Fair Market Rent Area.”
Measure W also created a disability exemption for persons who receive Supplemental
Security Income for a disability or Social Security Disability Insurance benefits and
whose yearly income does not exceed 250% of the 2012 federal poverty guidelines
issued by the Department of Health and Human Services (“HHS”).
Measure W itself does not disclose a rationale for the distinction between using HUD
and HHS guidelines.
If the Council wishes to make these three income related exemptions more consistent, it
could allow taxpayers to reference either the HUD or HHS income limits, whichever is
more favorable to the individual taxpayer. The Council could also choose to give
taxpayers applying for the disability exemption the option to reference more recent HHS
poverty guidelines or tie the referenced 2012 guidelines to inflation. But that change
would add to the administrative burden of implementing the tax.
(4)
1 Source:https://www.huduser.gov/portal/datasets/il/il2019/2019summarv.odn?states=%24states%24&data=2019&input
name=METR04186QMM5775*Oakland-
Fremont%2C+CA+HUD+Metro+FMR+Area&stname=%24stname%24&statefp=99&vear=2019&selection type
=hmfa
Item
City Council
October 15, 2019
Sabrina B. Landreth, City Administrator
Subject: Vacant Property Tax Implementation Ordinance
Date: October 1, 2019 Page 4
Relevant Sections: Measure W, §§ 4.56.030(J)(1)(a) (‘very low income’ exemption),
4.56.030(J)(1)(g) (‘low income senior’ exemption), 4.56.030(J)(1)(h) (‘disability’
exemption).
Can “exceptional special circumstance” exemptions be renewed?
Measure W creates an exemption for owners “who can demonstrate that exceptional
specific circumstances prevent the use or development of the property."
As written in the Draft Implementation Ordinance presented to the Finance &
Management Committee on September 24, 2019, it is not clear whether taxpayers may
renew any exceptional special circumstances exemptions.
City staff recommends adding the following language to the exemption in the
Implementation Ordinance to clarify this issue:
“Exemptions granted pursuant to this section may be renewed by the City Administrator,
for up to five (5) years, if the City Administrator determines that the conditions prohibiting
development of the parcel persist and that the person(s) who owned the parcel during
the term of the previously granted exemption made all reasonable attempts to put the
property into use. ”
Relevant Sections: Measure W, § 4.56.030(J)(1)(d) (‘exceptional special circumstances’
exemption); Implementation Ordinance [v. 9.24.19], § 4.56.090(D) (further explanation of
‘exceptional special circumstances’ exemption).
(5)
(6) Can the collection of the tax be delayed for one year?
Yes. Although the City is currently preparing to levy the tax with respect to properties
deemed vacant for calendar year 2019, the Council could choose to delay such levy.
Councilmembers interested in a delay option should request assistance from the City
Attorney’s office with respect to appropriate procedure. A delay may require that the City
Council adopt an ordinance. A delay would require the Council to either identify an
alternate funding source for expenditures budgeted in the FY 2020-21 Adopted Policy
Budget or forgo the budgeted services.
Relevant Sections: Measure W, § 4.56.030(D)
Can the City levy the Vacant Property Tax at a rate lower than the $6,000 and
$3,000 rates listed in Measure W?
Yes. Measure W gives the City Council explicit authority to set the actual tax rate for any
given year at any rate that does not exceed the maximum allowed.
Relevant Sections: Measure W, § 4.56.030(G)
(7)
Can the City levy the Vacant Property Tax at a rate that depends on the value of
the property?
No. The California Constitution prohibits the City from imposing taxes on a value of
property, or “ad valorem,” basis.
Relevant Sections: California Constitution, Article XIIIA, § 1
(8)
Item
City Council
October 15, 2019
Sabrina B. Landreth, City Administrator
Subject: Vacant Property Tax Implementation Ordinance
Date: October 1, 2019____________________Page 5
(9) Will the City impose the tax on my property?
Numerous public speakers asked whether the specific circumstances of their property
may be considered “in use” or subject to an exemption.
Although no final answers can be provided for specific circumstances until the City
Council adopts an Implementation Ordinance, the following answers address how the
version of the Implementation Ordinance presented to the Finance & Management
Committee on September 24, 2019 would apply.
Will the City impose the tax on undeveloped properties that are contiguous
to an occupied residential parcel?
No, if the occupied residential property is contiguous or within 500 feet of the
occupied residential property and both properties are owned by the same owner.
In numerous parts of the City, homeowners own the lot upon which their house is
built, and an adjacent lot. In many of these situations, there is no visible, obvious,
or physical distinction between the two properties. Property owners often use
their adjacent parcels as backyards, for garages, or as community gathering
spaces.
The September 24, 2019 version of the Implementation Ordinance clarifies that
such adjacent lots are “in use” so long as the owner provides “maintenance” of
the parcel. Maintenance is not further defined but the intent of the language is to
require some minimum level oversight and management to ensure that such lots
are not, for example, allowed to become a blight or a fire hazard.
Relevant Sections: Implementation Ordinance [v. 9.24.19], § 4.56.080(C).
b. Will the City impose the tax on properties that provide access to creeks
and other natural resources?
Yes, unless the property is in use or an exemption applies.
The September 24, 2019 version of the Implementation Ordinance does not
create any explicit use or exemption definition with respect to this category.
Properties in this category will be subject to taxation if they are otherwise
deemed vacant.
But, owners of property in this category may be able qualify for an exemption.
For example, in exceptional circumstances, owners may apply for the
“exceptional special circumstances” exemption. The City will grant that
exemption if, as provided in Measure W, the owner can demonstrate that the
“exceptional specific circumstance” affecting their property “prevent[s] the use or
development of the property.”
The City Council, at its discretion, may consider and adopt explicit use or
exemption definitions with respect to this category.
Relevant Sections: Measure W, § 4.56.030(J)(1)(d) (‘exceptional special
circumstances’ exemption); Implementation Ordinance [v. 9.24.19], §
4.56.090(D) (further explanation of ‘exceptional special circumstances’
exemption).
a.
Item
City Council
October 15, 2019
Sabrina B. Landreth, City Administrator
Subject: Vacant Property Tax Implementation Ordinance
Date: October 1, 2019 Page 6
Will the City impose the tax on properties that have limited development
opportunities because of greenbelt, open space, or similar restrictions?
Yes, unless the property is in use or an exemption applies.
See response to 9(b).
Will the City impose the tax on properties that are difficult to develop for
financial, physical, or zoning reasons?
Yes, unless the property is in use or an exemption applies.
See response to 9(b).
Will the City impose the tax on properties in a fire hazard zones?
Yes, unless the property is in use or an exemption applies.
See response to 9(b).
Will the City impose the tax on properties with an “extreme slope?”
Yes, unless the property is in use or an exemption applies.
See response to 9(b).
Will the City impose the tax on properties that are currently listed for sale
or rent, or are in escrow?
Yes, unless the owner of the property qualifies for an exemption.
The September 24, 2019 version of the Implementation Ordinance does not
create any explicit use or exemption definition with respect to this category.
Properties in this category will be subject to taxation if they are otherwise
deemed vacant.
City staff received several comments throughout the public input process
requesting an exemption for vacant properties in this category. But staff read the
intent of the Measure W as, in part, to create an incentive for properties in this
category to be sold or rented more expeditiously. Therefore, staff did not address
this category in the Implementing Ordinance.
The City Council, at its discretion, may consider and adopt explicit use or
exemption definitions with respect to this category.
Will the City impose the tax on properties that include “community
gardens?”
No, if the property’s use as a “community garden” complies vyith the Oakland
Municipal Code.
The September 24, 2019 version of the Implementation Ordinance defines “use”
as including any “civic, commercial, industrial, agricultural, or extractive activity,
as those terms are defined by the Planning Code
Section 17.10.140 of the Planning Code identifies “community gardens” as a
“civic activity.” So long as an owner’s community garden complies with that and
any other applicable portions of the law, it would be considered “in use.”
Relevant Sections: Implementation Ordinance [v. 9.24.19], § 4.56.080(B)
c.
d.
e.
f.
9-
h.
Item
City Council
October 15, 2019
Sabrina B. Landreth, City Administrator
Subject: Vacant Property Tax Implementation Ordinance
Date: October 1, 2019 Page 7
i.Will the City impose the tax on properties used for bee keeping?
No, if the property’s use for bee keeping complies with the Oakland Municipal
Code.
The September 24, 2019 version of the Implementation Ordinance defines “use”
as including any “civic, commercial, industrial, agricultural, or extractive activity,
as those terms are defined by the Planning Code
Sections 17.10.610 and 17.10.615 of the Planning Code identify “bee keeping”
as an “agricultural activity.” So long as an owner’s bee keeping operation
complies with those and any other applicable portions of the law, the property
would be considered “in use.”
Will the City impose the tax on properties used as parking lots?
No, if the property’s use as a parking lot complies with the Oakland Municipal
Code.
The September 24, 2019 version of the Implementation Ordinance defines “use”
as including any “civic, commercial, industrial, agricultural, or extractive activity,
as those terms are defined by the Planning Code
Various section of the Planning Code address and define parking lots as a “civic
activity.” So long as an owner’s use of property as a parking lot complies with
those sections and any other applicable portions of the law, the property would
be considered “in use.”
j-
(10) Is the vacancy determination appeal process mandatory?
Yes. Although all vacancy determinations may ultimately be reviewed by the court,
taxpayers will be required to exhaust all available administrative appeal remedies before
filing a lawsuit.
To clarify this issue, staff recommends adding the following language to § 4.56.110(E):
"Any person whose complaint, claim, or petition may be resolved by employing the
administrative remedies provided in Sections 4.56.100 or 4.56.110 must exhaust those
remedies before filing any suit for refund, rebate, exemption, cancellation, amendment,
adjustment, or other modification of the Tax,"
PUBLIC OUTREACH / INTEREST
Staff has conducted extensive research and public outreach campaign to gather comments on
the implementation of the Measure W. Staff has also notified potential affected property owners
the purpose, date and time of the October 15, 2019 City Council meeting. This item is also
posted on the City’s Online Meeting Schedule for the October 15, 2019 City Council meeting.
COORDINATION
This report has been coordinated with the Office of City Attorney.
Item
City Council
October 15, 2019
Sabrina B. Landreth, City Administrator
Subject: Vacant Property Tax Implementation Ordinance
Date: October 1, 2019 Page 8
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends The City Council Adopt An Ordinance Amending Oakland Municipal Code
Title 4, Chapter 4.56 To Clarify And Further Define Various Sections Of The Oakland Vacant
Property Tax And Establish A Method To Identify Vacant Property And Adopt A Resolution
Authorizing The City Administrator, Or Designee, To Negotiate And Execute The First
Amendment To The Agreement With SCI Consulting Group For The Implementation,
Administration And Management Of The Vacant Property Tax For A Term Of Three Years
Ending December 31,2022 With Two One-Year Options To Renew, At The City’s Complete
Discretion, The Agreement Through December 31, 2024, Without Returning To The City
Council For Approval, For A Not-To-Exceed Compensation Of $1,270,000 For All Five Years.
For questions regarding this report, please contact Margaret O’Brien, Revenue & Tax
Administrator, (510) 238-7480.
Respectfully submitted,
Adam Benson
Director of Finance
Finance Department
Reviewed by:
Margaret O’Brien
Revenue and Tax Administrator
Finance Department
Prepared by:
Huey Dang
Revenue Analyst
Finance Department
Item
City Council
October 15, 2019
FRED
oAnL' Cl»>-
APPROVED AS TO FORM AND LEGALITYid or r DRAFT-----------------«HJ OCT 10 PH 3; 52
OAKLAND CITY COUNCIL
INTRODUCED BY COUNCILMEMBER
City Attorney’s Office
C.M.S.ORDINANCE NO.
ORDINANCE AMENDING OAKLAND MUNICIPAL CODE TITLE 4,
CHAPTER 4.56 TO CLARIFY AND FURTHER DEFINE VARIOUS
SECTIONS OF THE OAKLAND VACANT PROPERTY TAX AND
ESTABLISH A METHOD FOR IDENTIFYING VACANT PROPERTY
WHEREAS, on July 24, 2018, the City of Oakland adopted Resolution 87319
C.M.S calling for voter consideration of a ballot measure to adopt a special parcel tax on
vacant properties (“Measure W”); and
WHEREAS, on November 6, 2018, Oakland voters approved Measure W by
greater than a 2/3rds margin; and
WHEREAS, Measure W established an annual tax on vacant property at a
maximum rate of $6,000 for certain properties and $3,000 for other properties to support
and fund homelessness programs and services, affordable housing, code enforcement,
and clean-up of blighted properties and illegal dumping (the “Vacant Property Tax”); and
WHEREAS, pursuant to Measure W, a property will generally be considered
“vacant” if it is in use less than fifty (50) days during a calendar year; and
WHEREAS, Measure W defines “use” as “the performance of a function or
operation”; and
WHEREAS, Measure W defines ten (10) categories of tax exemptions, including
exemptions for financial and non-financial hardships, exceptional circumstances, and
properties in active development or construction;
WHEREAS, Measure W calls for the City Council to establish, by ordinance, a
method of determining and identifying the use and vacancy status of each parcel of real
property in the City;
WHEREAS, Measure W allows the City Council to provide supplemental
definitions for the categories of exemptions;
2850545vl [for City Council 10.15.19]
WHEREAS, establishment of a method for determining and identifying the use
and vacancy status of real property and further supplemental definitions to the
categories of exemptions is critical to the administration of the Vacant Property Tax; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES
ORDAIN AS FOLLOWS:
SECTION 1. Title 4, Chapter 4.56 of the Oakland Municipal Code containing the
operative sections of the Vacant Property Tax is amended to add, delete or modify sections
as set forth below (section numbers and titles are indicated in bold type; additions are
indicated by underscoring and deletions are indicated by strike-through type.) Portions of
regulations not cited or not shown in underscoring or strike-through are not changed.
SECTION 2. Code Amendments.
Title 4, Chapter 4.56 is amended as follows:
4.56.010 - Definitions.
"City" means the City of Oakland.
"Commission" means the Commission on Homelessness authorized by this Chapter.
“Calendar Year” refers to the 12-month period from January 1 through December 31
pursuant to which the City will determine whether any parcel, property, or unit is
subject to the Tax.
"County" means Alameda County.
“Ground Floor Commercial Space” means the around floor space of any parcel of land
where ground floor commercial activities are allowed bv the applicable zoning (with or
without a use permit) or are a legal nonconforming use.
"Heavily Impacted Neighborhoods" means the geographic area defined by the
boundaries of 2010 Census Tracts 4007, 4008, 4009, 4010, 4014, 4015, 4016, 4017,
4018, 4022, 4024, 4025, 4026, 4027, 4030, 4033, 4057, 4053.02, 4054.01,4054.02,
4055, 4056, 4058, 4059.01,4059.02, 4060, 4061,4062.01,4062.02, 4063, 4064,
4065, 4071.01,4071.02, 4072, 4073, 4074, 4075, 4076, 4077, 4085, 4086, 4087,
4088, 4089, 4090, 4091,4092, 4093, 4094, 4095, 4096, 4097, 4102, 4103, 4104, and
4105. See Map (Attachment A) below.
"Mixed-Use Parcel" means a parcel that is improved with both:
i) At least one (1) residential unit; and
ii) Uses other than a residential unit.
"Multifamily Residential Parcel" means all parcels that are improved with more than
one (1) residential unit.
2850545vl [for City Council 10.15.19]
"Net General Purpose Fund Budget for Non-Safety Departments" means the total
general purpose fund appropriation to the operating budgets of the non-safety
departments, excluding expenditures that are offset by fees or other non-tax revenues.
"Nonresidential Parcel" means all parcels that are improved with uses other than
residential units.
"Non-Safety Departments" means all operating departments of the City, except police
and fire.
"Owner" means the owner or owners of the real property located within the City of
Oakland as of the first day of January following the calendar year pursuant to which a
property is deemed to be vacant or not vacant. For the purposes of applying any
exemptions defined in Section 4,56.090, the Owner shall not be exempt from the Tax
unless each person or entity that owns a portion of the real property can separately
demonstrate that they are entitled to an exemption.
"Parcel" shall mean a unit of real property in the City of Oakland as shown on the most
current official assessment role of the Alameda County Assessor.
"Residential Parcel" means all parcels that are improved with one (1) or more
residential units.
"Residential Unit" means a building or structure, or portion thereof, designed for or
occupied exclusively by one (1) household, including unrelated persons who live
together and maintain a common household.
"Single-Family Residential Parcel" means all parcels which are improved with only one
(1) residential unit.
"Tax" or "Oakland Vacant Property Tax" means the special tax authorized by this
Chapter.
"Undeveloped Parcel" means all parcels, regardless of zoning or other land use
designation, upon which no permanent improvements have been constructed or
placed.
"Use" means the performance of a function or operation.
2850545vl [for City Council 10.15.19]
4.56.080 - “In Use” Determinations.
For the purpose of making a determination of vacancy pursuant to Section 4,56.020.
the following functions or operations are considered “use”:
A.Physical occupancy of a Residential Parcel, condominium, duplex, or townhouse
unit by a lawful inhabitant.
B.Carrying on of any civic, commercial, industrial, agricultural, or extractive
activity, as those terms are defined by the Planning Code, and including any
religious or community gatherings, on or in a Nonresidential Parcel. Undeveloped
Parcel, or Ground Floor Commercial Space, except that:
1.Any Nonresidential Parcel. Undeveloped Parcel, or Ground Floor
Commercial Space used for warehousing, storage, or distribution
activities, as those terms are used in OMC section 17.10.583. will not be
considered in use unless at least 40% of the parcel or unit’s floorsoace
available for warehousing, storage, or distribution is occupied:
2.Any Ground Floor Commercial Space will not be considered in use unless
either leased out to a bona fide tenant intending to use the space for a
legal activity, or actually occupied, bv an Owner or some other party, for
some substantially similar purpose.
Maintenance of an Undeveloped Parcel that is contiguous or within 500 feet of an
occupied Residential Parcel owned bv the same Owner.
C.
D.Ingress and egress of persons or vehicles across substantially all of the parcel.
Other functions or operations as the City Administrator may deem appropriate.E.
4.56.090 - Exemptions.
For the purpose of determining whether an Owner is entitled to claim an exception
pursuant to Section 4.56.030(J)(1) the following rules and clarifications apply:
“Very Low Income” - - 4.56.030(J)(1)(a)A.
The “very low income” exemption applies if the Owner’s combined family income
for the relevant Calendar Year is eoual to or less than the United States
Department of Housing and Urban Development “Very Low Income Limit” for the
Oakland-Fremont. CA HUD Metro FMR Area.
2850545vl [for City Council 10.15.19]
“Financial Hardship” - - 4.56.030(J)m(btB.
The following circumstances constitute a “financial hardship due to specific
factual circumstances”:
The Owner, for any period of time during the relevant Calendar Year, was
a natural person and a debtor-party in an individual bankruptcy action.
1.
The Owner, for any period of time during the relevant Calendar Year,
experienced a significant medical event that kept the Owner from
engaging in their normal work or business activities for at least thirty (30)
days.
2.
The Owner, on or after December 1 of the year preceding the relevant
Calendar Year, was involuntarily terminated from employment and was
unemployed for at least sixty (60) days during the relevant Calendar Year.
3.
C.“Demonstrable Hardship Unrelated to Personal Finances” - - 4.56.030(J)('Q(c)
The following circumstances constitute a “demonstrable hardship”:
The subject property was, for at least one-hundred and eighty (180) days
during the relevant Calendar Year, subject to a lis pendens, or similar
court order, giving notice of a conflict regarding title or ownership
interests, pursuant to any pending lawsuit, bankruptcy proceeding,
probate action, condemnation action or other action or proceeding filed
with any court.
1.
2.The Owner, for at least sixty (60) days during the relevant Calendar Year,
was serving in the military and deployed overseas.
3.The then Owner died at some time during the relevant Calendar Year.
The Owner inherited the subject property during the relevant Calendar
Year or in the immediately preceding calendar year.
4.
D.“Exceptional Specific Circumstances” - - 4.56.030(J)(1)(d)
An exceptional specific circumstance includes any circumstance that, in the
judgment of the City Administrator, prevents any use or development of the
property. The City Administrator may reguest and consider any relevant evidence
to determine whether an exceptional specific circumstance exists. The City
Administrator shall consider any evidence that the property was damaged by a
recent natural disaster, that the property adjoins a residential parcel and is used
as a yard, or that a licensed engineer, or similar professional, has endorsed a
written opinion concluding that physical conditions of the property prevent any
development. If the City Administrator determines that an exceptional specific
circumstance exists, the City Administrator may grant an exemption for up to five
(5) calendar years. But such exemption shall not be effective unless and until the
Owner of the subject property records a notice against the subject property,
approved by the City Attorney, summarizing the basis for the exemption.
2850545vl [for City Council 10.15.19]
Exemptions granted pursuant to this section may be renewed by the City
Administrator, for up to five (5) years, if the City Administrator determines that the
conditions prohibiting development of the parcel persist and that the person(s)
who owned the parcel during the term of the previously granted exemption made
all reasonable attempts to put the property into use.
“Active Construction - - 4.56.030(J](1)(e1E.
The “active construction” exemption applies if the Owner held, for at least fifty
(50] days during the relevant Calendar Year, a valid and active building permit for
the subject parcel.
“Building Permit Application” - - 4.56.030(J)(1)(f)F.
The “building permit application” exemption applies if during or previous to the
relevant Calendar Year, the Owner submitted a building permit application to the
City and the total number of days during which the application was pending plus
any number of days after the application was approved but before the end of the
relevant Calendar Year was at least fifty (50) days.
G.“Low Income Seniors” - - 4.56.030(J)(1)(g)
The “low income seniors” exemption applies if the Owner is at least sixtv-five (65)
years of age or older and their combined family income for the relevant Calendar
Year is eoual to or less than the United States Department of Housing and Urban
Development “Low Income Limit” for the Oakland-Fremont, CA HUD Metro FMR
Area.
H.“Disabled Owner” - - 4.56.030(J)m(h]
The “disabled owner” exemption applies if the Owner, for any period in the
relevant Calendar Year received supplemental security income for disability or
social security disability insurance benefits and the Owner’s income for the
relevant Calendar Year did not exceed two hundred fifty percent (250%) of the
2012 federal poverty guidelines issued bv the United States Department of
Health and Human Services.
L “Non-profit organization” - - 4.56.030(J)(1)(i]
The “non-profit organization” exemption applies if the Owner was, for at least one
hundred and eighty (180) days during the relevant Calendar Year, a lawfully
functioning organization pursuant to Internal Revenue Code section 501(c)(3).
2850545vl [for City Council 10.15.19]
J.“Substantially Complete Application for Planning Approvals" - - 4.56.030(J)(1)(h
The “substantially complete application for planning approvals” exemption
applies if the Owner held a notice from the City stating that an application for
planning approvals with respect to the subject property was complete and such
application remained pending for at least fifty (50) days during the relevant
Calendar Year. After an application for planning approvals is approved for a
subject parcel, the Owner may apply for an administrative two-vear exemption,
exempting the subject property from being deemed vacant for the calendar year
during which the application for planning approvals was approved and for the
following calendar year.
4.56.100 - Method for Identifying Vacancy Status.
A.Initial Determination.
The City Administrator may develop administrative methods appropriate to
identify, based on objective, available data, properties that are most likely to be
vacant, and not exempt from tax, pursuant to Section 4.56.020. The City
Administrator may send initial determination notices for the properties that the
City Administrator determines are most likely to be vacant.
B.Petition of Vacancy.
Upon receiving an initial determination notice pursuant to Section 4.56.100(A), an
owner may, within twenty (20) days of service of the notice, file a petition of
vacancy. The petition of vacancy must be submitted in a form and manner
determined by the City Administrator and include appropriate evidence
demonstrating that the property was not vacant pursuant to Section 4,56,020 or
was entitled to an exemption. Such evidence may include sworn statements,
pictures, utility records, and any records necessary to demonstrate entitlement to
an exemption.
C.Decision on Vacancy.
Upon receiving a petition of vacancy pursuant to Section 4.56.100(B), the City
Administrator may reguest further evidence or clarification and shall issue a
decision.
D.No Waiver-
Nothing in the section may be interpreted as waiving an Owner’s obligation to
pay the tax if they do not receive a notice pursuant to this Section.
2850545vl [for City Council 10.15.19]
4.56.110 - Appeal Process.
Request for Hearing.A.
Following the issuance of a decision on vacancy pursuant to Section 4.56.100.
an Owner may, within twenty (20) days of service of such decision on vacancy,
file a petition and request an appeal hearing before a hearing officer. Upon such
request, the City Administrator shall appoint an independent hearing officer.
Pre-Hearing Procedure.B.
Prior to the hearing, the hearing officer may receive supplemental materials and
evidence from the petitioner and the Citv. As soon as practical, the hearing
officer shall set a deadline to receive any supplemental materials and evidence
and shall set a hearing date.
C.Hearing Procedure-
Formal rules of evidence shall not apply to the conduct of the hearing. The
hearing officer shall have the authority and discretion to permit examination of
witnesses. Any party to a hearing may be assisted bv a representative, including
an attorney.
D.Decision Following Hearing.
As soon as practical following the hearing, the hearing officer shall issue a written
decision regarding the vacancy status of the subject property. In the discretion of
the hearing officer, the decision may, but is not required to. include findings of
fact. The hearing officer’s decision shall be considered final on the day it is
executed bv the hearing officer.
E.Further Action.
After the hearing officer issues a final decision, any party may seek further
appropriate relief from the superior court. Any person whose complaint, claim, or
petition may be resolved bv employing the administrative remedies provided in
Sections 4.56.100 or 4.56.110 must exhaust those remedies before filing any suit
for refund, rebate, exemption, cancellation, amendment, adjustment, or other
modification of the Tax.
2850545vl [for City Council 10.15.19]
4.56.120 - Administrative Regulations & Delegation
The City Administrator is authorized to adopt rules and regulations consistent with this
Chapter as needed to implement this Chapter, subject to the review and approval of
the Office of the City Attorney, and to develop all related forms and/or other materials
and take other steps as needed to implement this Chapter, and make such
interpretations of this Chapter as they may consider necessary to achieve the
purposes of this Chapter.
The City Administrator may delegate any authority within their discretion pursuant to
this Chapter 4.56 as they deem reasonably necessary.
SECTION 3. Severability. If any section, subsection, sentence, clause or
phrase of this Ordinance is for any reason held to be invalid or unconstitutional by
decision of any court of competent jurisdiction, such decision shall not affect the validity
of the remaining portions of the Chapter. The City Council hereby declares that it would
have passed this Ordinance and each section, subsection, clause or phrase thereof
irrespective of the fact that one or more other sections, subsections, clauses or phrases
may be declared invalid or unconstitutional.
SECTION 4. Effective Date. This ordinance shall become effective
immediately on final adoption if it receives six or more affirmative votes; otherwise it
shall become effective upon the seventh day after final adoption.
In Council, Oakland, California,
PASSED BY THE FOLLOWING VOTE:
AYES - FORTUNATO BAS, GALLO, GIBSON MCELHANEY, KALB, REID, TAYLOR, THAO AND PRESIDENT KAPLAN
NOES-
ABSENT-
ABSTENTION -
Attest:
LaTonda Simmons
City Clerk and Clerk of the Council
of the City of Oakland, California
Date of Attestation:
2850545vl [for City Council I0.l5.l9]
NOTICE AND DIGEST
ORDINANCE AMENDING OAKLAND MUNICIPAL CODE TITLE 4,
CHAPTER 4.56 TO CLARIFY AND FURTHER DEFINE VARIOUS
SECTIONS OF THE OAKLAND VACANT PROPERTY TAX AND
ESTABLISH A METHOD FOR IDENTIFYING VACANT PROPERTY
This ordinance amends portions of the City of Oakland’s Vacant Property Tax, Oakland
Municipal Code, Chapter 4.56. The Vacant Property Tax ordinance, originally approved
by Oakland voters as Measure W in November 2018, imposes a special parcel tax on
parcels deemed “vacant” in a calendar year, each year for twenty (20) years following the
initial imposition of the tax. Parcels are deemed vacant if they, or in some situations
permanent improvements built upon them, are not “in use” for at least fifty (50) days during
the calendar year, and are not subject to any of ten (10) listed exemptions. This ordinance
further defines the functions and operations of a parcel or permanent improvement that
constitute “use” for purposes of the Vacant Property Tax, and further defines the various
exemptions. The ordinance also describes an administrative process for the City to
determine whether a parcel is vacant in any given calendar year, and establishes a
process for parcel owners to appeal the City’s determination.
2850545vl [for City Council 10.15.19]
CITY OF SOUTH SAN FRANCISCO SPEAKER CARD
If you wish to speak under Public Comment or on any other Agenda Item please complete this card and hand it to th
prior to_ywmitem being heard by the City Council.
"�/ City Council: Meeting Date eciii —al City Council Meeting Date 0 Planning Commission. Meeting
SPEAKERS ARE LIMITED TO 3 MINUTES PER PERSON (subject to modification by the Mayor)
AGENDA ITEM: Please check the box of the agenda item(s) you wish to provide public comment.
QPublic Comment
Comments regarding matters not listed or, the agenda will be heard during Public Comment. in compliance with the Brown Act, no
discussion or action will be taken by the City Council.
Consent Calendar Item #:
For matters on the agenda, you will have an opportunity to speak following the staff report and prior to the vote.
Public Hearing Item #:
Legislative Business Item #:
Administrative Busir)g, s Item #: t
NAME: (please print) !4
ORGANIZATION (If applicable):
OPTIONAL: ADDRESS: CITY:
EMAIL:
DAYTIME PHONE:
Public participation is encouraged at all meetings. Thank you for your input and interest in the City of South San Francisco.
CITY OF SOUTH SAN FRANCISCO SPEAKER CARD
If you wish to speak under Public Comment or on any other Agenda Item please complete this card and hand it to the City Clerk
prior to your item being heard by the City Council,
6-City Council: Meeting Date Special City Council: Meeting Date/,�'d Z O Planning Commission: Meeting Date
SPEAKERS ARE LIMITED TO 3 MINUTES PER PERSON (subject to modification by the Mayor)
AGENDA ITEM: Please check the box of the agenda item(s) you wish to provide public comment.
j'ro j Public Comment
Comments regarding matters not listed on the agenda will he heard during Public Comment. In compliance with the Brown Act no
discussion or action will be taken by the City Council. .l /
Consent Calendar Item #:
For matters on the agenda, you will have or? opportunity to speak following the staff report and prior to the vote.
Public Hearing Item #:
QLegislative Business Item #:
QAdministrative
NAME: (please print)„
ORGANIZATION (If applicable)
OPTIONAL:
Item #:
ADDRESS(