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HomeMy WebLinkAbout2002-07-24 e-packetSPECIAL MEET1NG CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MUNICIPAL SERVICES BUILDING CITY COUNCIL COMMUNITY ROOM 33 ARROYO DRIVE JULY 24, 2002 6:00 P.M. 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 Wednesday, the 24th day of July, 2002, at 6:00 p.m., in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, Califomia. Purpose of the meeting: 1. Call to Order 2. Roll Call 3. Public Comments - comments are limited to items on the Special Meeting Agenda 4. Closed Session: Pursuant to Government Code Section 54956.9(a), existing litigation: Aetna Realty v. City of South San Francisco 5. Adjournment AGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM JULY 24, 2002 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE GENERALLY LIMITED TO FIVE (5) MINUTES PER SPEAKER. In the event that there are more than six persons desiring to speak, the Chair may reduce the amount of time per speaker to three (3) minutes. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. EUGENE R. MULLIN Chairman PEDRO GONZALEZ Vice Chair RAYMOND L. GREEN Boardmember BEVERLY BONALANZA FORD Investment Officer MICHAEL A. WILSON Executive Director JOSEPH A. FERNEKES Boardmember KARYL MATSUMOTO Boardmember SYLVIA M. PAYNE Clerk STEVEN T. MATTAS Counsel PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of the July 10, 2002 regular meeting 2. Motion to confirm expense claims of July 24, 2002 ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING JULY 24, 2002 AGENDA PAGE 2 AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM JULY 24, 2002 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE GENERALLY LIMITED TO FIVE (5) MINUTES PER SPEAKER. In the event that there are more than six persons desiring to speak, the Mayor may reduce the amount of time per speaker to three (3) minutes. Thank you for your cooperation. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. PEDRO GONZALEZ Mayor Pro Tem EUGENE R. MULLIN Mayor JOSEPH A. FERNEKES Councilman RAYMOND L. GREEN Councilman KARYL MATSUMOTO Councilwoman BEVERLY BONALANZA FORD City Treasurer SYLVIA M. PAYNE City Clerk MICHAEL A. WILSON City Manager STEVEN T. MATTAS City Attorney PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATION · Presentation by Mr. Tony Rosenthal, Western Pacific Housing to Friends of San Bruno Mountain (Ms. Kathy Manus) Presentation by Finance Director Steele on proposed PG&E bankruptcy/re-organization plan, potential need for franchise negotiations and role of San Mateo County Telecommunications Authority JPA (SAMCAT) in negotiations AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL · Community Forum · Subcommittee Reports CONSENT CALENDAR 1. Motion to approve the minutes of the July 10, 2002 regular meeting 2. Motion to confirm expense claims of July 24, 2002 3. Resolution supporting a veterans' outpatient clinic in South San Francisco Resolution approving Terrabay Phase III Mandalay Pointe (Western Pacific Housing) final subdivision map, accepting the dedication offered on the map and authorizing the recordation of the map, the public improvement agreement, the approved DCC&Rs and any related documents 5. Stormwater Program Fees a. Resolution recommending that the San Mateo County Flood Control District impose charges for funding the 2002-03 Countywide National Pollution Discharge Elimination System (NPDES) General Program b. Resolution approving an agreement with the San Mateo County Flood Control District regarding fees for funding the NPDES program for the County of San Mateo c. Resolution recommending that the San Mateo County Flood Control District impose additional charges for funding the expanded scope of work for the 2002/03 NPDES General Program REGULAR CITY COUNCIL MEETING AGENDA JULY 24, 2002 PAGE 2 6. Motion to accept the Police Department Dispatch Center Lighting Upgrade Project as complete in accordance with plans and specifications 7. Acknowledgement of proclamation issued: Walter Johnson, July 18, 2002 ADMINISTRATIVE BUSINESS 8. Resolution authorizing the allocation of Community Development Block Grant funds to Sitike Counseling Center in the amount of $10,000 9. Resolution authorizing policies and procedures for First Time Home Buyer Program LEGISLATIVE BUSINESS 10. Motion to waive reading and introduce an ordinance amending SSFMC Chapter 2, Administration, related to term limits for boards and commissions 11. Motion to waive reading and introduce an ordinance amending SSFMC Chapter 3.12 to implement Council-approved position title additions, deletions, and/or changes ADJOURNMENT REGULAR CITY COUNCIL MEETING JULY 24, 2002 AGENDA PAGE 3 Staff Report Date: To: From: Subject: July 24, 2002 Honorable Mayor and City Council Assistant City Manager VETERANS OUTPATIENT CLINIC RECOMMENDATION: It is recommended that the City Council adopt a resolution authorizing support of a Veterans Outpatient Clinic in the northern Peninsula area. BACKGROUND: North San Mateo County is home for over thirty three thousand Veterans who rely on Fort Miley and the Palo Alto Veterans Hospital for medical treatment. The Veterans Administration is in the process of locating a new outpatient clinic in north San Mateo County and is asking for a resolution of support for these services. Adoption of the attached resolution will support these efforts. Respectfully submitted, .R~.sell O. Moss Assistant City Manager Attachment: Resolution StaffReport DATE: July 24, 2002 TO: The Honorable Mayor and City Council FROM: Director of Public Works SUBJECT: TERRABAY PHASE 1II - MANDALAY POINTE SUBDIVISION RECOMMENDATION It is recommended that the City Council adopt a resolution approving the Terrabay Phase llI - Mandalay Pointe final map and subdivision improvement agreement, accept the dedications offered on the map and authorize the recordation of the map, the agreement, the approved Declaration of Covenants, Conditions and Restrictions (D.C.C.&R.'s) and any related documents. BACKGROUND The City Engineer and the City's technical reviewer, with the concurrence of all affected City departments and divisions, have determined that the Terrabay Phase 1II - Mandalay Pointe final map, private on-site improvement and landscaping plans, public drainage and Sister Cities Boulevard improvement plans, D.C.C.& R's and related documents, are in compliance with the Subdivision Map Act, the City's Subdivision Ordinance and all applicable tentative map conditions of approval for the paired-housing subdivision portion of the Terrabay Phase 111 development. The final map, subdivision improvement agreement and Declaration of Covenants, Conditions and Restrictions (D.C.C.&R.' s), have been signed by the Subdivider. The developer has previously entered into a development agreement to provide for affordable housing in connection with the development of the Terrabay Phase llI project. The Terrabay Phase llI- Mandalay Pointe final map will subdivide the property into 70 single- family home lots. Each lot will be served by private roads (Mandalay Place and Pointe View Place), private sewers, storm drains and street lighting, that will be maintained by a homeowners association. The lots will also be served by public utility easements that overlay the private streets, the dedication of which is being accepted by the City on behalf of the public for use by public utility companies. However, no easements, roads, utilities or other improvements are offered for dedication to the City of South San Francisco, to be owned or maintained by the City within the boundaries of the subdivision, except for a public "storm drain easement", as noted on the final map. Staff Report To' Re: Date: The Honorable Mayor and City Council TERRABAY PHASE 1II - MANDALAY POINTE SUBDIVISION July 24, 2002 Page: 2 of 2 In addition to the private improvements, the developer will be constructing a new sidewalk along Sister Cities Boulevard between South San Francisco Drive and Airport Boulevard. The drainage and sidewalk work are secured by the attached subdivision improvement agreement and a $252,700 bond. The attached resolution will approve the Terrabay Phase 1II- Mandalay Pointe final map, and its subdivision improvement agreement, as well as authorizing the recordation of the final map, improvement agreement, D.C.C.& R.'s and any related documents. By: ~~ Approved: John Gibbs i Director of Public Works Michael A. Wilson City Manager ATTACHMENTS: Resolution Final Map Location Map Improvement Agreement RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING THE TERRABAY PHASE III- MANDALAY POINTE FINAL MAP AND SUBDIVISION IMPROVEMENT AGREEMENT, ACCEPT THE DEDICATIONS OFFERED ON THE MAP AND AUTHORIZING THE RECORDATION OF THE MAP, THE AGREEMENT, THE APPROVED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (C.C.&R.'S) AND ANY RELATED DOCUMENTS WHEREAS, staff recommends approval of the Terrabay Phase llI- Mandalay Pointe Final Map, and its subdivision improvement agreement, as well as authorizing the recordation of the Final Map, improvement agreement, C.C.&R.'s and any related documents. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby finds that the Terrabay Phase III-Mandalay Pointe Final Map conforms to all applicable laws and regulations and approves the improvement agreement, accepts the dedications offered on the map and authorizes the recordation of the map, the agreement, the approved Declaration of Covenants, Conditions and Restrictions (C.C.&R.'s) and any related documents. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the __ day of ,2002 by the following vote: AYES: NOES: ABSTAIN: ABSENT: F:\file cabinet\old. Reso 12_00\7-24terrabay.res.doc ATTEST: City Clerk TERRABAY PHASE III - MANDALAY POINTE BEING A RESUBD~MSION OF LOTS 393 AND -~94, AS SAJD LOTS ARE S~IOWN ON THAT CERTAIN MAP £NI~J~D 'I~RBABA¥~. FILED FOR RECORD ON dULY 2. 1990 IN BOOK 121 I~ MAPS AT PAGES BS 'rHBOUOH 79, INCLUSIVE, SAN MA11~O COUNTY RECORDS CII¥ O~ SOUTH SAN FRANCISCO COUN~ Of' SAN MATED STA1~ CXc CAUFORNIA dULY, 2002 TERRABAY PHASE III - MANDALAY POINTE ......... ';E,.~'A'';;SUB'--;,'~S,'';;';'~;';;;0"~'~ ........ AS BAlD LOT~ ARE SHOWN ON I~AT CERTAIN MAP [N31TI.[D 'TERRABAY FILED FOR RECORD ON dIJ1_y 2, 1gg0 IN BOOK 121 OF MAPS AT PAGES 65 '~IROUGH 79, INCLUSIVE, SAN MAT~O COUNTY RECORDS CITY 0~ SOUTH SAN FRANCISCO COUNTY OF BAN MA3[O STATE O~ CAUFORNIA LEGEND (T) TOTN. G~APHIC SCAI~ ( m ~') LOT B LOT C LOT B LOT 8 SEE SHEET 5 LOT J2J M ~5 ................ [~.lZ34[x T UN£ SEE SHEET 3 RE~MA!NOER PARCEL LOT A LOT C LOT B POINTE VIEW PLACE LOT E $7.~Z sr. I$oUTH sAN FRANCISCO DRIVE LOT B SAJ,/ FflANC~Co s' MANDALAY PLACE ~'~ e7.~-~-~ DETAIL B lOT B TERRABAY PHASE III - MANDALAY POINTE BEING A RESUgDI%'ISION OF LOTS 39.3 AND 394, AS SAID LOTS ARE SHOWN ON THAT CERTAIN MAP EN~1~EO "T~RRABAY'~, F1LED FOR RECORD ON JULY 2, 19B0 IN t~OOK 121 OF MAPS AT PAGES 65 THROUGH 79, INO._USIVE, SAN MAIEO COUNTY RECORDS CITY OF SOUTH SAN FRAHOSCO COUNTY OF SAN MAT~O STAT OF CALIFORNIA JULY, 2002 1,' 1,6' LEGEND TERRABAY PHASE III - MANDALAY POINTE AS SAID LOTS ARE SHOWN ON THAT CERTAIN MAP EN~TLED "~RRABAY', RLED FOR RECORD ON JULY 2, 1990 IN ~OOK 121 OF MAPS AT PAGES S5 THROUGH 79, iNCLUSIVE, SAN blATEO COUNTY RECORDS CITY OF SOU~-I SAN FRANCJSCO COUNTY OF SAN MA3[O STA~ OF CAUFORNJA PHASE I MANDALAY PHASE II SOUTH SAN FRANCISCO DRI'VI[-- PI~.SE~VATiON BUFFEg PARCB. / / SPACE PARCEL LOCAT[~ON MAP APROX.SCALE 1"=1000' SUBDIVISION IMPROVEMENTS AGREEMENT BETWEEN CITY OF SOUTH SAN FRANCISCO AND WESTERN PACIFIC BUILDING FOR TERRABAY PHASE III- MANDALAY 70 UNIT RESIDENTIAL PROJECT (SA-02-__.) This AGREEMENT dated ,2002, is by and between the City of South San Francisco, a municipal corporation, hereinafter designated "City," and Western Pacific Housing - Terra Bay Duets, ,LLC, a Delaware Limited Liability Company, hereinafter designated "Subdivider." RECITALS WHEREAS, Subdivider has presented to City for approval final Subdivision maps, hereinafter designated "maps," entitled Terrabay Phase m- Mandalay Pointe; and WHEREAS, Subdivider has requested approval of the maps prior to the construction and completion of improvements, including all streets, highways and public ways and public utility facilities which are a part of, or appurtenant to, the Subdivision designated in the maps, all in accordance with, and as required by, the plans and specifications for all or any of the improvements in, appurtenant to, or outside the limits of the Subdivision, which plans and specifications are described in Exhibit "A" attached to and incorporated herein, hereinafter "plans" and are now on file in the Office of the City Engineer of the City; and WHEREAS, the City Council of the City of South San Francisco on ~, 2002, adopted Resolution No. approving the maps and accepting the dedications therein offered for street and highway purposes and public facility and utility easements, except for those dedicated to other agencies, persons, partnerships, associations or corporations, on the condition that Subdivider first enter into and execute this Agreement with City and meet the requirements of the Resolution; and WHEREAS, this Agreement is executed pursuant to the provisions of the Subdivision Map Act of the State of California and Title 19 of the South San Francisco Municipal Code; and NOW, THEREFORE, for and in consideration of the approval of the maps and of the acceptance of the dedications and easements for street and highway purposes and public facility and utility easements therein offered, excepting those dedicated to other agencies, and in order to ensure satisfactory performance by Subdivider and Subdivider's obligations under the Subdivision Map Act and Title 19 of the Municipal Code the parties agree as follows: AGREEMENT 1. Performance of Work Subdivider shall, at its sole cost and expense, furnish or cause to be furnished, all labor supplies, equipment and materials, and do or cause to be done, in a good and workmanlike manner all of the improvements within and/or without and subdivision work described in Exhibit "A" attached and incorporated. The cost of such improvements and required items of work is estimated to be Two Hundred Fifty-Two Thousand Seven Hundred Dollars and 00/100 Cents ($ 252,700.00). Subdivider shall also do all the work and shall, at its sole cost and expense, furnish all materials necessary in the opinion of the City Engineer to complete the improvements in accordance with the plans and specifications on file, or with any changes required or ordered by the City Engineer. 2. Places and Grades to be Fixed by City Engineer All of the work is to be done at the places, and with the necessary materials, in the manner and at the grades shown on the plans and specifications previously approved by the City Engineer and now on file in his office. All work shall be done to the satisfaction of the City Engineer. 3. Time for Commencement and Performance City hereby fixes the time for the commencement of the work to be done on or before August 1, 2002, and for its completion to be within one (1) year thereafter. At least fifteen (15) calendar days prior to the commencement of work hereunder, Subdivider shall notify the City Engineer in writing of the date fixed for commencement thereof, so that the City Engineer shall be able to provide inspection services. 4. Time of Essence - Extension Time is of the essence in this Agreement, provided that in the event good cause is shown, the City Engineer may extend the time for completion of the improvements hereunder. Any such extension may be granted without notice to Subdivider's sureties, and extensions so granted without notice to the Subdivider's sureties shall not relieve the sureties' liability on the bonds to secure the faithful performance of this Agreement and to assure payment of all persons performing labor and materials in connection with this Agreement. The City Engineer shall be the sole and final judge as to whether or not good cause has been shown to entitle Subdivider to an extension. 5. Repairs and Replacements Subdivider shall replace or have replaced, or repair or have repaired, all pipes and monuments which are destroyed or damaged, and Subdivider shall replace or have replaced, repair or have repaired, or pay to the owner the entire cost of replacement or repairs, of any and all property damaged or destroyed by reason of any work done hereunder, whether such property be owned by the United States or any agency thereof, by the State of California, or any agency or political subdivision thereof, or by any combination of such owners. Any such repair or replacement shall be to the satisfaction, and subject to the approval of, the City Engineer or the corporation, person or agency. 6. Utility Deposits - Statement Subdivider shall file with the City Clerk, on or before August, 1, 2002, a written statement signed by Subdivider and each public utility corporation involved, to the effect that Subdivider has made all deposits legally required by such public utility corporation for the connection of any and all public utilities to be supplied by such public utility corporation within the Subdivision. 7. Permits, Compliance with Law Subdivider shall, at Subdivider's sole cost and expense, obtain all necessary permits and licenses for the construction of improvements, give all necessary notices and pay all fees and taxes required by law. 8. Superintendence by Subdivider Subdivider shall personally supervise the work on the improvements, or have a construction contractor, competent foreman or superintendent on the work site at all times during construction, with authority to act for Subdivider. Subdivider shall obtain the approval of the City Engineer before using a construction contractor, competent foreman or superintendent to supervise work on the improvements. Prior to granting approval, the City Engineer shall determine that said construction contractor, competent foreman or superintendent to supervise is qualified to perform such duties. 9. Inspection by City Subdivider shall at all times maintain proper facilities, and shall provide safe access, for inspection by City, to all parts of the work and to the shops wherein the work is in preparation. 10. Contract Security (a) Concurrently with the execution hereof, Subdivider shall furnish: (1) a surety bond in an amount equal to at least one hundred percent (100%) of the estimated cost of the construction and completion of the works and improvements described in Exhibit "A," as security for the faithful performance of this Agreement; and (2) a separate surety bond in an amount equal to at least one hundred percent (100%) of the estimated cost of the construction and completion of the work and improvements described in Exhibit "A" as security for the payment of all persons performing labor and providing materials in connection with this Agreement. Subdivider shall require all subcontractors to file a labor and materials corporate surety bond as security for payment of all persons furnishing labor and materials in connection with this Agreement (b) The Subdivider may fulfill-the requirements of subsection (a) of this section by providing a Standby Irrevocable Letter of Credit in favor of the City and in a form approved by the City Attorney. (c) Subdivider may also file a cash deposit with the City. 11. Hold Harmless Agreement (a) Subdivider shall hold harmless, indemnify and, at the City's request, defend City (with Counsel selected by City), its officers, employees, agents, boards and commissions, whether elected or appointed, from and against all claims, demands, actions, causes of action, losses, damages, liabilities, costs and expenses, including but not limited to reasonable attorney's fees or obligations, for or in connection with personal injury (including, but not limited to, death) or damage to property (both real and personal) which arises out of or is in any way connected with the negligent act, error or omission of Subdivider, its agents, contractors, subcontractors, or employees in connection with the performance of this Agreement. (b) In order to make certain that Subdivider has adequate resources to fully carry out its responsibilities pursuant to subparagraph (a) above, Subdivider shall file with the City proof that Subdivider's professional consultants (including any soils engineer or civil engineer) employed by Subdivider in connection with the work described herein, maintain professional liability (e.g. errors and omissions) insurance during the life of this Agreement. If the work is accomplished by contractors or subcontractors, Subdivider shall assure that the contractors and/or subcontractors carry such insurance. The insurance shall be in an amount of not less than Two Million Five Hundred Thousand Dollars ($2,500,000), shall contain a provision that such insurance shall not be reduced or canceled except upon thirty (30) days written notice to City and shall be subject to the approval of the City Attorney as to form, amount and carder. (c) The foregoing hold harmless statement of Subdivider shall apply to all damages and claims for damages of every kind suffered or alleged to have been suffered by reason of the construction operations undertaken pursuant to this Agreement, regardless of whether or not City has approved the plans or specifications for the improvements, and regardless of whether or not such insurance policies have been determined to be applicable to any such damages or claims for damages. 12. Subdivider's Insurance Subdivider shall not commence work under this Agreement until Subdivider has obtained all insurance required under this paragraph, and such insurance has been approved by the City Attorney as to form, amount and carder, nor shall Subdivider allow any contractor or subcontractor to commence work until all similar insurance required of the contractor or subcontractor has been so obtained and approved. All requirements shall appear either in the body of the insurance policy or in endorsements and shall specifically bind the insurance cartier. Subdivider shall take out and maintain during the life of this Agreement the following policies of insurance: (a) Worker's Compensation and Employers' Liability Insurance in the statutory coverage. In signing this Agreement, Subdivider makes the following certification: "I am aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against li ability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of the Code, and I will comply with such p~ovisions before commencing the performance of the work of this Agreement." (b) Commercial General Liability Insurance: In an amount not less than ONE MILLION DOLLARS ($1,000,000) for injuries including, but not limited to, death to any one person and subject to the same limit for each person; in an amount not less than TWO MILLION DOLLARS ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage. (c) Automobile Liability (Code 1) Insurance: In an amount not less than ONE MIIJION DOLLARS ($1,000,000) combined single limit per accident for bodily injury and property damage. (d) Contractual Liability Insurance: Subdivider shall take out and maintain during the life of this Agreement an insurance policy in the amount of at least TWO MILLION DOLLARS ($2,000,000), insuring Subdivider against damages sustained as a result of any action or actions at law or in equity, any claims or demands brought as a result of any breach or alleged breach of any contract, or provisions thereof, and/or as a result of any contractual liability, or alleged contractual liability arising out of any contract entered into by Subdivider and/or any of its agents or employees in order to perform the work defined herein. (e) It is agreed that the insurance required by Subsections (b), (c) and (d) shall be in an aggregate amount of not less than Five Million Dollars ($5,000,000) and shall be extended to include as additional insureds the City of South San Francisco, its elective and appointive boards, officers, agents, employees and volunteers, with respect to operations performed by the Subdivider as described herein. Evidence of the insurance described above shall be provided to City upon execution of this Agreement and shall be subject to approval by the City Attorney as to form, amount and carrier. The policy of insurance shall also contain a provision indicating that such insurance shall not be reduced or canceled except upon thirty (30) days written notice to City. In addition, the following endorsement shall be made on the policy of insurance: "Notwithstanding any other provisions in this policy, the insurance afforded hereunder to the City of South San Francisco shall be primary as to any other insurance or reinsurance covering or available to the City of South San Francisco, and such other insurance or reinsurance shall not be required to contribute to any liability or loss until and unless the approximate limit of liability afforded hereunder is exhausted." 13. Evidence of Insurance Subdivider shall furnish City concurrently with the execution hereof, satisfactory evidence of the insurance required and evidence that each cartier is required to give City at least - thirty (30) days prior notice of the cancellation or reduction in coverage of any policy during the effective period of this Agreement. 14. Title to Improvements Title to, and ownership of, all improvements constructed hereunder by Subdivider shall vest absolutely in City, or to such other public agencies, persons, partnerships, associations or corporations to which dedications of easements were made or reserved upon the completion and acceptance of such improvements by City or the agency, person, partnership, association or corporation. 15. Repair or Reconstruction of Defective Work If, within a period of one year after final acceptance of the work performed under this Agreement, any structure or part of any structure furnished and/or installed or constructed, or caused to be installed or constructed by Subdivider, or any of the work done under this Agreement, fails to fulfill any of the requirements of this Agreement or the specifications referred to herein, or proves to be defective or become damaged because of differential settlement, action of the elements, or ordinary usage, except for catastrophic events, Subdivider shall without delay and without any cost to City repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or structure. Should Subdivider fail to act promptly or in accordance with this requirement, or should the exigencies of the case require repairs or replacements to be made before Subdivider can be notified, City may, at its option, make the necessary repairs or replacements or perform the necessary work, and Subdivider shall pay to City the actual cost of such repair plus fifteen (15%) percent. Subdivider shall at the time of acceptance of the improvements by City or other public agency, provide the City with a corporate surety bond in the principal sum of Eleven Thousand, Six Hundred Dollars and 00/100 Cents ($ 11,600.00) to secure the undertaking and obligations set forth in this provision. 16. Subdivider not Agent of City Neither Subdivider nor any of Subdivider's agents or contractors shall be considered agents of City in connection with the performance of Subdivider's obligations under this Agreement. 17. Cost of Engineering and Inspection Subdivider shall pay City the actual cost to City for all inspections and other services furnished by City in connection with the construction of the above-required improvements, plus twenty-two percent thereof for administrative overhead. City shall furnish periodic statements of all charges for services performed by City, and Subdivider shall complete payment of such charges within ten (10) days after receipt thereof. 18. Notice of Breach and Default If Subdivider refuses or fails to obtain prosecution of the work, orany severable part thereof, with such diligence as will insure its completion within the time specified, or any extensions thereof, or fails to obtain completion of the work within such time; or if the Subdivider should be adjudged as bankrupt, or if Subdivider should make a general assignment for the benefit of Subdivider's creditors, or if a receiver should be appointed in the event of Subdivider's insolvency, or if Subdivider or any of Subdivider's contractors, subcontractors, agents or employees should violate any of the provisions of the Agreement, the City Engineer or City Manager may serve written notice upon Subdivider and Subdivider's sureties of breach of this Agreement, or of any portion thereof, and default of Subdivider. 19. Breach of Agreement; Performance by Sureties or City In the event of such notice, Subdivider's sureties shall have the duty to take over the work and complete the work and the improvement herein specified; provided, however, that if the sureties, within five (5) days after being served notice of such breach, do not give City written notice of their intention to take over the performance of the Agreement, and do not commence performance thereof within five (5) days after notice to the City of such election, City may take over the work and prosecute the same to completion, by contract or by any other method City may deem advisable, for the account and at the expense of Subdivider, and Subdivider's sureties shall be liable to City for any excess cost or damages occasioned by City; and, in such event, City, without liability for so doing, may take possession of, and use in completing the work, such materials, appliances, plant and other property belonging to Subdivider as may be on site of the work and necessary therefor. 20. Erosion Control If applicable, Subdivider shall furnish landscape plans and adequately provide for erosion control. Landscaping and irrigation improvements shall be installed to the satisfaction of the City's Landscape Architect. 21. Trenching and Backfilling Subdivider shall require that all trenching and backfilling within and outside the property lines for utility lines, including sanitary, storm, water and any other purposes, shall be done under the inspection of a soils engineer who shall test the trenching and backfilling with a sufficient number of soil tests to secure the proper compaction. Subdivider shall further require that a certificate be filed with the City stating that said trenching and backfilling has been performed in accordance with the soils engineer's recommendations. 22. Water Lines Subdivider shall dedicate to the California Water Service Company the easements required for the water lines, facilities and appurtenant works, unless the lines, facilities and appurtenant works are to be installed within rights-of-way dedicated to the City. Subdivider shall construct and install, at its sole cost and expense, the improvements in the easements as set forth on the "Plans" shown in Exhibit "A," subject to the approval of the Company or District. 23. Notices All notices herein required shall be in writing, and delivered in person or sent by certified mail, postage prepaid. Notices required to be given to City shall be addressed as follows: City Clerk City of South San Francisco P.O. Box 711 South San Francisco, CA 94083 8 NoticesrequiredtobegiventoSubdividershallbeaddmssedas Allows: WESTERN PACIFIC HOUSING, INC. 6658 Owens Drive Pleasanton, CA 94588 Notices required to be given to sureties of Subdivider shall be addressed as follows: DR N~m~N~ YNO_ -JEFF ROGERS 1901 Ascension Blvd., Suite 200 Arlington, TX 76006 Any party may change such address by notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address. 24. As-Built Drawings Subdivider shall furnish City reproducible plastic film as-built drawings of the public improvements of a quality acceptable to the City Engineer together with a certification by Subdivider's engineer that the improvements have been constructed in accordance with the approved plans and specifications. Subdivider shall furnish City with the as-built drawings concurrently with Subdivider's request for acceptance of t. he improvements by the City. 25. Parties Obligated Subdivider aerees that this Agreement shall bind Subdivider and Subdivider's successors in interest, heirs and'~ssigns. 26. Attorneys' Fees If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 27. Governing Law The laws of the State of California shall govern this Agreement. 28. Severability If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed. CITY OF SOUTH SAN FRANCISCO, a municipal corporation By: City Manager SUBDIVIDERS: WESTERN PACIFIC By: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney C:~rPortblkEBM AINXKIM B ER LYX69620_2.DOC 10 CERTIFICATE OF ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF ALAMEDA On July 17, 2002 before me, the undersigned, a Notary Public in and for said State personally appeared Edward A. Galigher, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State Wanda Lawrence (Notary's name must be typed or legibly printed) [Notary Stamp or Seal] EXHIBIT "A" IMPROVEMENTS AND REQUIRED ITEMS OF WORK FOR THE TERRABAY PHASE III - MANDALAY POINTE SUBDIVISION Agreement dated 2002 ° The Subdivider shall construct, furnish and install all public improvements (improvements located only within Sister Cities Boulevard and the Public Drainage Easement dedicated and accepted on the subject final map) in accordance with the "Terrabay Phase 3 - Mandalay Pointe Improvement Plans", consisting of 37 sheets, dated June 10, 2002, prepared by BKF Engineers/Surveyors/Planners, signed by Adrian Corlett (R.C.E. #52173) and all approved revisions thereof, and in accordance with the City of South San Francisco's Standard Plans and Specifications and the Terrabay Phase III Precise Plan and Tentative Map conditions of approval. The Subdivider shall file complete "as-built", or "record", drawings of the plans listed above, and any other documents, plans or details, approved by the City Engineer, which supplement the approved plans, prior to final acceptance by the City Council of the work performed under this agreement. Said plans shall consist of the original tracings, or permanent plastic film transparencies of a quality which complies with the standards of the City of South San Francisco, as administered by the City Engineer and two paper prints. Approved: Date: G:\TERRABAYLPHASE3AGREEMENTEXHIBITA.RCH.doc Staff Report DATE: TO: FROM: SUBJECT: July 24, 2002 The Honorable Mayor and City Council Director of Public Works ADOPTION OF RESOLUTIONS FOR STORMWATER FEES COLIJECTED BY THE COUNTY FLOOD CONTROL DISTRICT RECOMMENDATION: It is recommended that the City Council adopt resolutions requesting that the San Mateo County Board of Supervisors use the San Mateo County Flood Control District as the funding mechanism to support the Countywide National Pollution Discharge Elimination System (NPDES) General Program, and approve the indemnification agreement with the San Mateo County Flood Control District. BACKGROUND/DISCUSSION: The County, the County Flood Control District, and the Cities in San Mateo County are parties to an agreement that sets up the C/CAG Stormwater Pollution Prevention Program ("the program"). Each of the parties to the agreement is obligated to fund their proportionate share of the costs of the program. On behalf of itself and most other Cities in the County, the County Flood Control District collects a stormwater fee that covers the costs of the Countywide Stormwater Program. Cities that do not request the County to collect the fee on their behalf are still required to provide funding for their share of the program. The City, in June, adopted a resolution requesting that the County collect the stormwater fee on the tax rolls. The County staff is now requesting that the resolutions be adopted in a different form. Accordingly, the revised resolutions supercede the previous resolution. The County Flood Control District is requesting that, as a condition of collecting the fee on the tax rolls on behalf of the Cities in San Mateo County, each City agree to indemnify the Flood Control District for the City's proportionate share of the fee should the District be required to refund the fee for any reason. Thus, if the District refunded the fee, the Cities would be liable to the District for their proportionate shares of the fee. Since the Flood Control District is requesting that the City indemnify it only for the portion of the fee is collected on behalf of the City, the request appears reasonable. Staff Report To: Re: Date: Page: The Honorable Mayor and City Council ADOPTION OF RESOLUTIONS FOR STORMWATER FEE COI.I .ECTED BY THE COUNTY FLOOD CONTROL DISTRICT July 24, 2002 2 of 2 If the City does not wish to agree to indemnify the District for collecting the fee, the City would still be required to make up its share of the costs of the Countywide Stormwater Programs, either by collecting the fee itself or making up the shortfall with other revenues. South San Francisco's share of the shortfall is approximately $51,000. FUNDING: Funding will be provided from the San Mateo Countywide General Program Budget Year 10, which is approximately $1,295,348 ("Combined Charges") financed by a Countywide parcel fee levied against residential land users, commercial/retail/manufacturing/industrial land users, and miscellaneous land users. For Year 10 activities, ("Basic Charges") are as follows; single-family residential land users are charged $3.44 per parcel that establishes the base rate. Miscellaneous, Condominium, Agriculture and Vacant parcels are charged $1.72/APN; all other land uses a base rate of $3.44/APN for the first 11,000 square feet plus $0.3127 per 1,000 additional square feet of parcel area and (Additional Charges") are as follows; single-family residential land users are charged $2.4842/APN, Miscellaneous, Agriculture, Vacant and Condominium: $1.242 I/APN; all other land uses a base rate of $2.4842/APN for the first 11,000 square feet plus $0.2240 per 1,000 additional square feet of parcel area. The use of parcel size provides for a more equitable distribution of the fee throughout the various land uses within the County. John Gibb~ Director o1~ Public Works Approved: 1~__~ Michael A Wilson City Manager ATTACHMENTS: Resolutions Basic Fees and Additional Fees Agreement Regarding Fees for Funding the National Pollutant Discharge Elimination System Program for the County of San Mateo Resolution Approving the Agreement RH/JG/ed RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALII~ORNIA A RESOLUTION RECOMMENDING THAT THE SAN MATEO COUNTY FLOOD CONTROL DISTRICT IMPOSE CHARGES FOR FUNDING THE 2002/03 COUNTYVv'IDE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) GENERAL PROGRAM WHEREAS, the Environmental Protection Agency, under amendments to the 1987 Federal Clean Water Act, imposed regulations that mandate local governments to control and reduce the amount Of stormwater pollutant runoff into receiving waters; and WHEREAS, under the authority of California Porter-Cologne Water Quality Act, the State Water Resources Control Board has delegated authority to its regional boards to invoke permitting requirements upon counties and cities; and WHEREAS, in July 1991, the San Francisco Bay Regional Water Quality Control Board notified San Mateo County of the requirement to submit an NPDES Permit Application by November 30, 1992; and WHEREAS, in furtherance of the NPDES Permit Process, San Mateo County in conjunction with all incorporated cities in San Mateo County has prepared a San Mateo Countywide Stormwater Management Plan which has a General Program as a fundamental component of the Management Plan; and WHEREAS, the San Mateo Countywide Stormwater Management Plan was submitted to the San Francisco Bay Regional Water Quality Control Board and the Management Plan was approved by the Board and made part of the NPDES Waste Discharge Permit CA 0029921, issued September 13, 1993 and remaining in effect through June 30, 1998; and WHEREAS, the San Mateo Countywide Stormwater Management Plan and NPDES Waste Discharge Permit CA 0029921 required that San Mateo County submit a renewal application by March 31, 1998, including a Stormwater Management Plan for 1998 through 2003; and WHEREAS, the San Mateo County NPDES Technical Advisory Committee prepared the San Mateo Countywide Stormwater Management Plan for 1998-2003; and WHEREAS, the City of South San Francisco accepted, adopted and committed to implement the San Mateo Countywide Stormwater Management Plan for 1998-2003, and the renewal application and Plan were submitted to the San Francisco Regional Water Quality Control Board on March 18, 1998; and 188528 1 WHEREAS, the San Francisco Bay Regional Water Quality Control Board, after Public Heating, approved the Renewed NPDES Permit effective July 21, 1999 and which expires July 20, 2004; and WHEREAS, the San Mateo County Flood Control District Act, as amended by the State Legislature in 1992 (Assembly Bill 2635), authorized the San Mateo County Flood Control District ("District") to impose charges to fund storm drainage programs such as the NPDES Program; and WHEREAS, in 1995, District adopted, by ordinance, charges ("Basic Charges") to fund the County-wide General Program at the following rates: Single Family Resident: $3.44/APN; Miscellaneous, Agriculture, Vacant and Condominium: $1.72/APN; all other land uses a base rate of $3.44/APN for the first 11,000 square feet plus $0.3127 per 1,000 additional square feet of parcel area; and WHEREAS, District has requested all cities to indicate, by resolution, whether they wish to have District collect the Basic Charges on behalf of the city to fund a portion of the $1,295,348 Budget for FY 2002-2003; and WHEREAS, the charges are in the nature of a sewer service charge in that they are intended to fund a federally mandated program the purpose of which is to create waste treatment management planning processes to reduce the amount of pollutants in discharges from property into municipal storm sewer systems which, in turn, discharge into the waters of the United States; and WHEREAS, the City of South San Francisco has held a heating upon the proposal to fund the Countywide NPDES General Program through the San Mateo County Flood Control District; The City Council makes the below resolve following that heating. NOW, THEREFORE, BE IT RESOLVED BY THE City Council of the City of South San Francisco that 1. Resolution No. 46-2002 is hereby superceded. The City of South San Francisco respectfully requests the San Mateo County Board of Supervisors, acting as the governing board of the San Mateo County Flood Control District, to impose those charges necessary to fund the County-wide NPDES General Program; and o The City of South San Francisco respectfully requests that all properties within the territorial limits of said City be charged the annual charges in accordance with said charges stated above; and 4. The City Clerk is hereby directed to forward a copy of this Resolution to the San Mateo County Board of Supervisors and to the NPDES Coordinator of C/CAG. 188528 --2-- I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the day of ,2002 by the following vote: AYES: NOES: ABSTAIN: ABSENT: \WIULDER\VGATYRELLXfile cabinet\Current Reso'sLReso Basic fees.doc ATTEST: City Clerk 188528 --3-- RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION RECOMMENDING THAT THE SAN MATEO COUNTY FLOOD CONTROL DISTRICT IMPOSE ADDITIONAL CHARGES FOR FUNDING THE EXPANDED SCOPE OF WORK FOR THE 2002/03 COUNTYXhqDE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES) GENERAL PROGRAM WHEREAS, the Environmental Protection Agency, under amendments to the 1987 Federal Clean Water Act, imposed regulations that mandate local governments to control and reduce the amount of stormwater pollutant runoff into receiving waters; and WHEREAS, under the authority of California Porter-Cologne Water Quality Act, the State Water Resources Control Board has delegated authority to its regional boards to invoke permitting requirements upon counties and cities; and WHEREAS, in July 1991, the San Francisco Bay Regional Water Quality Control Board notified San Mateo County of the requirement to submit an NPDES Permit Application by November 30, 1992; and WHEREAS, in furtherance of the NPDES Permit Process, San Mateo County in conjunction with all incorporated cities in San Mateo County has prepared a San Mateo Countywide Stormwater Management Plan which has a General Program as a fundamental component of the Management Plan; and WHEREAS, the San Mateo Countywide Stormwater Management Plan was submitted to the San Francisco Bay Regional Water Quality Control Board and the Management Plan was apProved by the Board and made part of the NPDES Waste Discharge Permit CA 0029921, issued September 13, 1993 and remaining in effect through June 30, 1998; and WHEREAS, the San Mateo Countywide Stormwater Management Plan and NPDES Waste Discharge Permit CA 0029921 required that San Mateo County submit a renewal application by March 31, 1998, including a Stormwater Management Plan for 1998 through 2003; and WHEREAS, the San Mateo County NPDES Technical Advisory Committee prepared the San Mateo Countywide Stormwater Management Plan for 1998-2003; and WHEREAS, the City of South San Francisco accepted, adopted and committed to implement the San Mateo Countywide Stormwater Management Plan for 1998-2003, and the renewal application and the Plan were submitted to the San Francisco Regional Water Quality Control Board on March 18, 1998; and 188530-1 WHEREAS, the San Francisco Bay Regional Water Quality Control Board, after Public Heating, approved the Renewed NPDES Permit effective July 21, 1999 and which expires July 20, 2004; and WHEREAS, the San Francisco Bay Regional Water Quality Control Board has imposed additional requirements on the NPDES General Program beyond those required in the current Renewed NPDES Permit; and WHEREAS, the San Mateo County Flood Control District Act, as amended by the State Legislature in 1992 (Assembly Bill 2635), authorized the San Mateo County Flood Control District ("District") to impose charges to fund storm drainage programs such as the NPDES Program; and WHEREAS, in 1995, the District adopted a basic NPDES charge to fund the County-wide General Program; and WHEREAS, to meet the expanded requirements of the NPDES General Program, the District adopted and imposed additional annual charges that, when added to the previously adopted Basic Charges, would be necessary to fund the Program; and WHEREAS, District has requested all cities to indicate, by resolution, whether they wish to have District collect the additional charges on behalf of the city to fund a portion of the $1,295,348 Budget for FY 2002-2003 at the following rates: Single Family Resident: $2.4842/APN; Miscellaneous, Agriculture, Vacant and Condominium: $1.2421/APN; all other land uses a base rate of $2.4842/APN for the first 11,000 square feet plus $0.2240 per 1,000 additional square feet of parcel area; and WHEREAS, the charges are in the nature of a sewer service charge in that they are intended to fund a federally mandated program the purpose of which is to create waste treatment management planning processes to reduce the amount of pollutants in discharges from property into municipal storm sewer systems which, in turn, discharge into the waters of the United States; and WHEREAS, the City of South San Francisco has held a hearing upon the proposal to fund the Countywide NPDES General Program through the San Mateo County Flood Control District; The City Council makes the below resolve following that heating. NOW, THEREFORE, BE IT RESOLVED BY THE City Council of the City of South San Francisco that 1. Resolution No. 46-2002 is hereby superceded. 188530-1 o ° The City of South San Francisco approves the expanded Scope of Work imposed on the NPDES General Program and respectfully requests the San Mateo County Board of Supervisors, acting as the governing board of the San Mateo County Flood Control District, to impose those additional charges on behalf of the City necessary to fund the County-wide NPDES General Program; and The City of South San Francisco requests that all properties within the territorial limits of said City be charged the additional annual charges in accordance with said additional charges stated above; and The City Clerk is hereby directed to forward a copy of this Resolution to the San Mateo County Board of Supervisors and to the NPDES Coordinator of C/CAG. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the day of ,2002 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk F:'dile cabinet\Current Reso'sXReso Additional fees.doc 188530-1 AGREEMENT REGARDING FEES FOR FUNDING THE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM PROGRAM FOR THE COUNTY OF SAN MATEO THIS AGREEMENT is entered into by and between the San Mateo County Flood Control District ("DISTRICT") and the City of South San Francisco ("CITY"). RECITALS A. CITY is obligated under the federal Clean Water Act, 33 U.S.C. section 1251 et seq., to obtain a National Pollutant Discharge Elimination System ("NPDES") permit ("Permit"). B. CITY, along with all other cities in the County and the County of San Mateo, is a party to the Joint Powers Agreement Continuing the Establishment of the City/County Association of Governments ("JPA Agreement"). The JPA Agreement established the City/County Association of Governments ("C/CAG"), with the responsibility of implementing countywide state mandated plans. Among the powers assumed by C/CAG is the development of a countywide stormwater pollution prevention and control program and the securing of a countywide NPDES Permit. C. The JPA Agreement provides, at section 6, that each member shall contribute its pro-rata share of the revenues needed for the annual budget as adopted by the C/CAG Board of Directors. The budget includes the amount needed to obtain the required NPDES permit and to implement the NPDES program. D. In the past, the NPDES program has been funded on behalf of C/CAG and its member agencies, in major part, through charges against property imposed by DISTRICT under authority contained in the San Mateo Flood Control District Act, and collected annually on the tax bill. The revenue obtained through imposition of this charge is ultimately for the benefit of participating C/CAG agencies, including CITY. E. In consideration of the adoption of a NPDES charge by DISTRICT, it is appropriate that CITY indemnify DISTRICT to the extent of the charges collected on its behalf to fund the NPDES program. NOW, THEREFORE, THE PARTIES HERETO AGREE that, in consideration of the DISTRICT'S consent to collect CITY'S portion of the required amounts necessary to fund the NPDES program, CITY agrees to indemnify and save harmless DISTRICT for all amounts collected by DISTRICT on behalf of CITY, in the past or in the future, that DISTRICT is required to refund for any reason whatsoever. IN WITNESS WI-IEREOF, the parties hereto have affixed their hands. 187811-1 Dated: CITY OF SOUTH SAN FRANCISCO Approved as to form: City Manager City Attorney Dated: DISTRICT By 187810 2 RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION WITH THE SAN MATEO COUNTY FLOOD CONTROL DISTRICT REGARDING FEES FOR FUNDING THE NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM GENERAL PROGRAM FOR THE COUNTY OF SAN MATF, C) WHEREAS, the San Mateo County Flood Control District ("the District") imposes collects fees to fund the countywide stormwater program ("the Fees") on behalf of many cities in San Mateo County, including the City of South San Francisco; and WHEREAS, the District has requested that each city that requests it to impose and collect the Fees on its behalf execute an agreement indemnifying the District for the city's proportionate share of the revenue derived from the Fees, in the event that the District is required to refund the Fees for any reason; and WHEREAS, the City by separate resolutions has elected to have the Fees imposed and collected by the District on the City's behalf. NOW, THEREFORE, BE IT RESOLVED BY THE City Council of the City of South San Francisco that The City of South San Francisco approves the "Agreement Regarding Fees for Funding the National Pollutant Discharge Elimination System General Program for the County of San Mateo" with the San Mateo County Flood Control District ("the Agreement"); and 2. The City Manager is hereby authorized to execute the Agreement on behalf of the City. 188532-1 I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the __day of __ 2002 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk StaffReport DATE: TO: FROM: SUBJECT: July 24, 2002 The Honorable Mayor and City Council Director of Public Works Police Department Dispatch Center Lighting Upgrade Project Engineering File PB-01-3, Project No. 51-13232-0113, Bid No. 2313 RECOMMENDATION: It is recommended that the City Council, by motion, accept the Police Department Dispatch Center Lighting Upgrade Project as complete in accordance with the plans and specifications. BACKGROUND/DISCUSSION: This project replaced the old light fixtures with new light fixtures and added dimmer switches. The project has been inspected by City staff and is completed in accordance with the plans and specifications. Acceptance of the project will provide authorization for staff to file a Notice of Completion and to release the payment performance bond and ten percent retention at the end of the thirty-day lien period. FUNDING: The construction was completed at a cost of $9,532.00 ($9,565.00 bid items and minus $33.00 for one change order). The Change Order covered costs involving the deletion of one bid item, changing the type of dimmer switches, and adding two new circuit breakers. Construction costs are budgeted in the 2001-2002 Capital Improvement Program (CIP). Dir6ctor of Public Works Michael A. Wilson City Manager RTH/JG/ed City Council Staff Report DATE: July 24, 2002 TO: Honorable Mayor and City Council FROM: Director of Economic and Community Development SUBJECT: CDBG Allocation for Sitike Counseling Center RECOMMENDATION: It is recommended that City Council adopt the attached Resolution allocating CDBG funds to Sitike Counseling Center and authorize the City Manager to execute the subsequent grant agreement and amendment to the City's One Year Action Plan as required by federal regulations. BACKGROUND/DISCUSSION: Sitike Counseling Center (Sitike) has received notice of funding cuts from San Mateo County due to the State's cuts to counties for what are considered to be perinatal programs. The County lost 60% of its State funding and has reduced funding to Sitike by $100,000, specifically to the Women's Day Treatment Program. According to the Executive Director, a funding cut in this amount places the entire program in jeopardy. The total agency budget is $750,000 of which the Women's Program represents 33% of their total budget, at full funding, and the program provides 50% of the agency's overhead costs. Sitike serves approximately 800 clients on a yearly basis of which at least 31% or 250 clients are South San Francisco residents. The Women's Program is the only one of its type in the County and serves an average of 55 women per year of which 16% or up to 10 women per year are from South San Francisco. In addition, the participants children who have been diagnosed with fetal alcohol syndrome are assessed for developmental disabilities at Sitike. The entire family is counseled as needed to involve them in the recovery process. The program accommodates up to ten children providing child care, meals, and counseling as required. Staff has been informed that the agency only has sufficient county funds to operate the Women's Program for six months with the allocated funding level for fiscal year 2002-2003. The Board of Director's has indicated their desire to operate the program for the six month period or as long as possible rather than terminate the program. The agency believes this to be the most vulnerable population with the least personal and institutional resources to help them turn their lives around To: Subject: Date: Honorable Mayor and City Council Sitike Counseling Center July 24, 2002 Page 2 by staying clean and sober and keeping their families together. Sitike is soliciting additional grant funding from private foundations to replace lost county funds. However, this late in the year it will be difficult to secure private grants equal to the full amount of lost county revenues. Sitike has requested a permanent rent reduction of $10,000 from the City/Agency to reduce operating expenses thus ensuring that the Women's Program would remain operational for the entire fiscal year 2002-03 and to reduce ongoing expenses in years to follow. The Executive Director of Sitike is confident that reducing operating expenses, in conjunction with increased private grants and other cost savings measures, would allow the agency to maintain operations of the Women's Program for the entire twelve month period. AVAILABILITY OF FUNDS: Staff has reviewed the potential sources of funds which could be made available for Sitike. Redevelopment Agency funds are not considered to be appropriate for social service grants such as this due to legal restrictions on agency expenditures. Staff analysis of CDBG allocations and program income for the current fiscal year has determined that CDBG funds in the amount of $10,000 are currently available and may be allocated to social service activities. That dollar amount is derived from two sources, increased revenues from program income and unexpended grant funds. First, Federal regulations require tracking of CDBG program income and allow the City to allocate up to 15% of those funds for social service activities. This year, there have been additional CDBG rehabilitation loan payoffs since last reported to the City Council during the CDBG allocation cycle in April of this year. The actual program income amount received to date is $209,145.47. The amount received as of March, 2002, was $173,439. The difference in the most recent loan repayments allow the City to allocate an additional amount of $7,191.82, representing 15% of the total repayment amount and in compliance with federal spending limits. Secondly, one of the agencies funded during the current fiscal year is not meeting its obligation to provide services to our residents. Youth and Family Assistance Daybreak Shelter Program was funded this year to house three youth in their emergency shelter and provide case management to assist the youth returning to school or to find jobs and permanent housing. During the first three quarters of this fiscal year the agency has reported that no youth from South San Francisco have been housed at their shelter and no case management or counseling has occurred. Staff has refused to pay the agency's invoices to date, citing that Daybreak is not meeting their obligation to serve our residents as required by their grant agreement. The program was allocated $8,000 by City Council for fiscal year 2001-02. Staff has informed the agency that they will be eligible to draw funds on a pro rated basis should they demonstrate serving our residents in the last quarter To.' Subject: Date: Honorable Mayor and City Council Sitike Counseling Center July 24, 2002 Page 3 of this fiscal year. For this reason, $5,000 of their original $8,000 allocation is available to reprogram to another social service activity. In summary, City Council may allocate available funds at their discretion to social service activities for fiscal year 2002-03. CONCLUSION: The CDBG Sub committee met to review Sitike's request and have recommended that City Council allocate $10,000 to the Counseling Center to offset their expenses for fiscal year 2002- 03. In the future Sitike is requested to return during the regular CDBG allocation cycle to request assistance for the next fiscal year. It is recommended that City Council adopt the attached Resolution allocating $10,000 of FY 2002-03 CDBG funds to Sitike Counseling Center and authorize the City Manger to execute a grant agreement and amendment to the City's One Year Action Plan as required by federal regulations. This allocation of emergency funds will ensure the continued operations of the program for women and children during the next fiscal year and will assist participants to stay clean and sober and keep their families together. MartyVanDuyn _ i/ Director of Economic a~d Community Development Michael A. Wilson City Manager Attachment: Resolution RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALYFORNIA A RESOLUTION AUTHORIZING THE ALLOCATION OF CDBG FUNDS IN THE AMOUNT OF $10,000 TO SITIKE COUNSELING CENTER AND AUTHORIZING A GRANT AGREEMENT AND AMENDMENT TO THE CITY'S ONE YEAR ACTION PLAN AS REQUIRED BY FEDERAL REGULATIONS AND AMENDING THE 2002-2003 OPERATING BUDGET (NO. 03-2) WHEREAS, Sitike Counseling Center has received notice of funding cuts from San Mateo County due to the State reduction in funding for perinatal program; and WHEREAS, it is recommended that the City allocate $10,000 of fiscal year 2002- 03 CDBG funds to Sitike Counseling Center; and WHEREAS, the allocation of emergency funds will ensure the continued operations of the Sitike Counseling Center program during fiscal year 2002-03. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco the City Council hereby authorizes the allocation of CDBG funds in the amount of $10,000 to Sitike Counseling Center and authorizes a grant agreement and amendment to the City's One Year Action Plan as required by federal regulations and amends the 2002-03 Operating Budget (No. 03-2). I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the day of ,2002 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk DATE: TO: FROM: SUBJECT: July 24, 2002 The Honorable Mayor and City Council Director of Economic and Community Development Adopt Resolution to approve First Time Homebuyer Program RECOMMENDATION: It is recommended that the City Council and Redevelopment Agency adopt a resolution to: 1. Approve a program description for the City of South San Francisco First Time Homebuyer Program, 2. Authorize the City and Agency to use the Countywide Homeownership Investment Program (CHIP) loan documents for the First Time Homebuyer Program, 3. Authorize the use the use of $250,000 in Redevelopment Agency funds for the first time homebuyer program, and 4. Authorize the City Manager and Agency Director to approve and execute loans on behalf of the City for qualified borrowers BACKGROUND: On June 12 the City Council reviewed a program description that would establish a First Time Homebuyer Program for the City of South San Francisco. The program description was written to meet the housing needs of South San Francisco residents as well as the City Council's desire to use the program to encourage employee retention for both the City organization and the School District. Upon reviewing the program description, the City Council was unable to reach consensus on all of the program parameters and directed staff to conduct additional research. Furthermore, the City Council asked the Housing Sub-Committee to review any new data obtained by staff and for the Sub-Committee to make a final recommendation on the program to the City Council. Among the key issues the Sub-Committee was asked to look at was: whether any bank or lender would be willing to approve loans for borrowers if the City to required repayment on its loans when employees ended their employment with the City or School District, whether the School District would be willing and able to make matching loans for its schoolteachers, whether the City could charge a variable interest rate, whether the deferment period could be lowered, and whether employees nearing retirement would be able to participate in the program. STAFF REPORT TO: SUBJECT: DATE: Page 2 Honorable Mayor and City Council Adopt Resolution to approve First Time Homebuyer Program July 24, 2002 DISCUSSION: On July 15 the City Council's Housing Sub-Committee met to review the information gathered by City staff and to make its final program recommendations to the City Council. After reviewing the information obtained by staff, the Housing Sub-Committee decided it is important to meet the needs of residents as soon as possible. Therefore, the Housing Sub- Committee decided not to delay the program any further by trying to include employee participation restrictions that may not be feasible (such as requiring immediate loan repayment when employees quit) since these delays are not helping the community's immediate needs. In its effort to refocus the program on its original intent--to create a first time homebuyer program that helps South San Francisco residents pUrchase homes--the Housing Sub-Committee recommends approval of the program with the following criteria: Eligible Borrowers - The first time homebuyer program will be open to all income eligible people who live or work in the City of South San Francisco. Program Priority - The Housing Sub-Committee reviewed information City staff provided regarding matching loans to teachers by the School District and on how to make employees repay their loans when they end their employment. In summary, the School District cannot make loans at this time (see Exhibit A), and making employees repay their loans upon termination is both contractually difficult and may cause undue hardship to the borrowers (see Exhibit B). Despite the City's inability to accomplish these objectives, the Housing Sub-Committee decided it was more important to retain quality teachers and City employees than it was to eliminate the small risk that employees would be taking advantage of the City's program. In addition the financial information provided in Exhibit C demonstrates that to a large extent it makes financial sense for employees to remain with the City if they have a loan, or to pay the loan off immediately if they quit. Therefore, the Sub-Committee recommends that first priority in the program be given to City employees, and that second priority be given to teachers and residents who have lived or worked in the City for five or more years. Third priority would go to any person who lives or works in the City of South San Francisco. The Sub-Committee also asked that the program be structured so that there is a strong financial incentive for employees to continue working for the City and School District, and that there is a large payback to the City when the home is sold if employees terminate their employment early (see Exhibit C). The Housing Sub-Committee also recommend that staff continue working with the School District to persuade them to make loans to their employees since the Sub-Committee believes that City loans will not provide enough assistance to help teachers purchase homes. Maximum Income - Maximum income for the program is 120% of area median income. STAFF REPORT TO: SUBJECT: DATE: Page 2 Honorame Mayor and City Council Adopt Resolution to approve First Time Homebuyer Program July 24, 2002 DISCUSSION: On July 15 the City Council's Housing Sub-Committee met to review the information gathered by City staff and to make its final program recommendations to the City Council. After reviewing the information obtained by staff, the Housing Sub-Committee decided it is important to meet the needs of residents as soon as possible. The Housing Sub-Committee therefore decided that further delaying the program to try to accomplish employee restrictions that may not feasible would not be serving the community. In its effort to refocus the program on its original intent--to create a first time homebuyer program that helps South San Francisco residents purchase homes--the Housing Sub-Committee recommends approval of the program with the following criteria: Eligible Borrowers - The first time homebuyer program will be open to all income eligible people who live or work in the City of South San Francisco. Program Priority - The Housing Sub-Committee reviewed information City staff provided regarding matching loans to teachers by the School District and on how to make employees repay their loans when they end their employment. In summary, the School District cannot make loans at this time (see Exhibit A), and making employees repay their loans upon termination is both contractually difficult and may cause undue hardship to the borrowers (see Exhibit B). Despite the City's inability to accomplish these objectives, the Housing Sub-Committee decided it was more important to retain quality teachers and City employees than it was to eliminate the small risk that employees would be taking advantage of the City's program. In addition the financial information provided in Exhibit C demonstrates that to a large extent it makes financial sense for employees to remain with the City if they have a loan, or to pay the loan off immediately if they quit. Therefore, the Sub-Committee recommends that first priority in the program be given to City employees, and that second priority be given to teachers and residents who have lived or worked in the City for five or more years. Third priority would go to any person who lives or works in the City of South San Francisco. The Sub-Committee also asked that the program be structured so that there is a strong financial incentive for employees to continue working for the City and School District, and that there is a large payback to the City when the home is .sold if employees terminate their employment early (see Exhibit C). The Housing Sub-Committee also recommend that staff continue working with the School District to persuade them to make loans to their employees since the Sub-Committee believes that City loans will not provide enough assistance to help teachers purchase homes. Maximum Income - Maximum income for the program is 120% of area median income. STAFF REPORT TO: SUBJECT: DATE: Page 3 Honorable Mayor and City Council Adopt Resolution to approve First Time Homebuyer Program July 24, 2002 Maximum Loan Amount - $100,000, with a maximum Redevelopment Agency loan of $50,000 and a maximum CDBG loan of $50,000. Interest Rate - Four percent (4%). The City Council had also inquired about a variable interest rate. A variable rate is not recommended because if interest rates went up borrowers would have housing payments that would not be considered "affordable." This would be counter productive to the goal of making housing affordable as well as possible violating Redevelopment Agency and CDBG funding restriction that require that no more than 30% of a borrowers income go towards housing payments. Repayment - Loan balance and appreciation shares due upon sale, transfer, or refinance. Payments will be amortized over 25 years after the five-year deferral period. Appreciation Share - One-to-one (1:1) for public loans and one-to-two (1:2) for city employees and schoolteachers. Exhibit C is an example of how the city appreciation share will work for three employees, one that quits early, one that quits after 12 years, and one that continues to work for 30 years or more. As shown in this example, if the employees sold their homes after 15 years, the employee who quit early would have to pay the City $107,893 in equity share, the employee that quit after 12 years would have to pay $91,189, and the long term employee would only have to pay $77,658. Program Funding Initial funding for the first time homebuyer program will come from two sources. First, the City Council has already set aside $191,043 in CDBG funds that can be applied to the first-time homebuyer program or for housing acquisition and rehabilitation. These funds, however, will only be available to families at or below 80 percent of median income. Second, staff is requesting that the Redevelopment Agency approve the use of $250,000 in Redevelopment Agency Housing Set- Aside (RDA) funds to be used for families that earn up to 120 percent of median income. Employees Nearing Retirement The primary goal of the First Time Homebuyer Program is to create affordable housing for program participants. In this sense the program will be helping every employee that receives a City loan regardless of how close they are to retirement. Also during the five-year deferral period all employees are treated equally so any employee retiring within five years of receiving a loan will not receive fewer benefits than one that decides to quit. It is true, however, that employees that stay with the City for a very long period of time will benefit more than employee that retire within a few years. This is one feature that may be unavoidable since the secondary intent of the program, and the reason for giving employees priority, is to encourage employees to stay with the City for a long period of time. If this feature is unacceptable to an employee, the employee could instead enter the lottery in the regular program where the appreciation share to the City is only 1:1 instead of 1:2 as it is under the employee priority program. STAFF REPORT TO: SUBJECT: DATE: Page 4 Honoraole Mayor and City Council Adopt Resolution to approve First Time Homebuyer Program July 24, 2002 CONCLUSION: It is recommended that the City Council approve a resolution to create a First Time Homebuyer Program in South San Francisco as recommended by the Housing Sub-Committee and attached to this report as Exhibit D, approve the use of CHIP loan documents attached as Exhibit E, approve the use the use of $250,000 in Redevelopment Agency funds for the program, and authorize the City Manager and Agency Director to approve and execute loans on behalf of the City for qualified borrowers. Creating a first time homebuyer program, including homebuyer seminars, for South San Francisco City residents will help address the housing needs of many of its working residents. In addition, the program will help the City and the school district attract and retain quality employees by helping them acquire housing in South San Francisco. Finally, active participation in the CHIP program will help the City leverage its funds and reduce the cost of operating a first time homebuyer program by spreading many administrative costs among CHIP members. Economic and Community Development Appr°ved: C~it~v~ealn a~erWil s°n ~ MAW:MVD:NF:AFS Attachments: Attachment A: Attachment B: Attachment C: Attachment D: Attachment E: School District Participation in the First Time Homebuyer Program City Loan Call Back Provision Equity Share Payment to City First Time Homebuyer Program Description CHIP Loan Documents RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION APPROVING A PROGRAM DESCRIPTION FOR THE CITY OF SOUTH SAN FRANCISCO FIRST TIME HOMEBUYER PROGRAM AND AUTHORIZING THE CITY AND AGENCY TO USE THE COUNTYWIDE HOMEOWNERSHIP INVESTMENT PROGRAM LOAN DOCUMENTS FOR THE FIRST TIME HOMEBUYER PROGRAM AND AUTHORIZING THE USE OF $250,000 IN REDEVELOPMENT AGENCY FUNDS FOR THE FIRST TIME HOMEBUYER PROGRAM AND AUTHORIZING THE CITY MANAGER AND AGENCY DIRECTOR TO APPROVE AND EXECUTE LOANS ON BEHALF OF THE CITY OF SOUTH SAN FRANCISCO WHEREAS, it is recommended that the City Council approve a first time homebuyer program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco the City Council (1) approves the program description for the City of South San Francisco First Time Homebuyer Program, (2) authorizes the City and Agency to use the Countywide Homebuyer Program loan documents, (3) authorizes the use of $250,000 in Redevelopment Agency funds for the first time homebuyer program and (4) authorizes the City Manager and Agency Director to approve and execute loans consistent with the First Time Homebuyer Program on behalf of the City for qualified borrowers. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the day of ,2002 by the following vote: AYE S: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk Exhibit A School District Participation in the First Time Homebuyer Program City. staff spoke with Jim Novak, Assistant Superintendent of the South San Francisco Unified School District, about the School District's participation in a first-time homebuyer program. First, Mr. Novak stated his appreciation for the City Council's considering the needs of schoolteachers in developing the City's first time homebuyer program. He also acknowledged that School District's problem losing many teachers to other school districts. While the First Time Homebuyer Program sounds interesting and they would like to participate,.Mr. Novak believes the School District would need a substantial amount of time to consider the program and the options available to it. Mr. Novak identified the following concerns that the District would have to consider in making a decision to participate in the program: · Would the School District be able to legally make loans to its employees · Would it be able to legally give preferential treatment to teachers only, or would it have to make loans available to. all of its employees · Where would the School District get money to fund a first time homebuyer program · Where does the School Board stand on the issue. These are difficult question for the School District to answer. Until it is able to answer them it will be unable to make a commitment to the City's program. The City Council also asked for clarification on the College of San Mateo's and the San Mateo Unified School District's participation in a first time homebuyer program. The College of San Mateo has a unique source of fundsma reserve they set aside for retiree benefits. Their board has decided that the countywide first time homebuyer program meets its investment standards and has allocated a small percentage of the fund for making first time homebuyer loans. The San Mateo school district has no such fund and is searching for a meansto fund a first time homebuyer program. To date it has not been able to identify any funds for the program. Exhibit B City Loan Call Back Provision City staff contacted local banks, other cities, and a mortgage broker to inquire about the possibility of the City calling in its loans when employees quit their jobs with the City or are terminated. Their comments are summarized below. Banks Sierra Point, as previously discussed cannot make risky loans because it must safeguard its members' deposits. Similarly, First National Bank does not make residential loans, Therefore neither Sierra Point nor First National Bank are options for making loans that allow the City to call back its loan. Washington Mutual agreed to review the City loan program and is currently looking at the loan documents and the program. To date it has not responded to the City request for information. Cities In discussions with other cities about first time homebuyer programs, staff identified three programs that require repayment when employees quit. These programs, however, are significantly different in that they are not part of the City's general first time homebuyer program. Brisbane, San Bruno, and San Carlos all have employee home purchase programs that are administered by the cities' finance departments and funded with general funds. In Brisbane, executive level employees can borrow city general funds to purchase a home but must repay the loan when they end their employment. Employees have six months to repay their loans when they leave voluntarily, and one year to repay when they leave involuntarily. The loan is secured by a side letter agreement that is recorded on the property. Banks are not informed about this side agreement when the employee is securing financing since it would jeopardize their bank loan. When asked what he thought banks would do if they became aware of the side letter agreement, the directors said it would cause problems and the city would probably have to back away from it in order to not jeopardize their employees first loan. The City of San Bruno has a similar loan program open to all employees but has only been able to make three loans. After making its first three loans, the City of San Bruno has had a difficult time finding lenders willing to lend on its employee loan program, in part because of the call back provision. Finally, staff is still in the process of obtaining additional information about the City of San Carlos' employee loan program. Mortgage Broker First Home Inc. (FHI) is both a mortgage broker and first time homebuyer program administrator for several cities on the Peninsula. Their experience indicates banks are not likely to allow a call back provision on city loans. The sited the following reasons for their opinion: · As previously noted, the secondary loan market would not approve these loans for the secondary market. · In some cases the City loan may be in third position after a bank loan and a CHFA loan. No bank would be willing to take a loan in third position thus complicating the borrower's ability to repay the City loan. · A loan call back might be legally suspect. FHI questioned whether a loan call back would be discriminating against city and schoolteachers since the terms of their loans would be more severe than those offered to the general public. FHI advised us to check with our attorney but they believe simply giving loan priority is not enough of a bonus to warrant higher penalties against employees for leaving their jobs. · Calling a loan back will create a substantial hardship most first time homebuyers. With a City loan most employees would be spending 35% of their income on housing payments. If a loan call back were to occur, the ration would jump up to more than 45% of income. FHI also suggests that if the City is using CDBG or Redevelopment funds it inquire whether a loan call back would violate the program's rules by creating a housing affordability hardship. · A loan call back in all likelihood would jeopardize other financial assistance packaged with their loans. For example, the borrower would lose his or her County Mortgage Credit Certificate, and potentially a CHFA loan if they had one. · The City could suffer from negative publicity if they were to call in a loan and put a schoolteacher or public employee in financial difficulties due to a loan call back. FHI, however, did offer an alternative for employees that quit their jobs. According to FHI, the City could end the deferral period and require the former employee to begin making payments on the loan. The City of Redwood City has added this provision to their loans and banks have been willing to accept it. Exhibit C Assumptions Home Purchase Price $ 400,000 City Loan $ 50,000 City % of Loan 12.5% Annual Home Appreciation 5.0% Equity Share Payment to City Year Employee Employee Employee Employee Home Value Sells House Quits Year 3 Quits Year 12 Quits Year 30+ $400,000 0 $0 $0 $0 $420,000 1 $5,000 $5,000 $5,000 $441,000 2 $10,250 $10,250 $10,250 $463,050 3 $15,763 $15,763 $15,763 $486,203 4 $21,551 $21,551 $21,551 $510,513 5 $27,628 $27,628 $27,628 $536,038 6 $34,010 $33,216 $33,216 $562,840 7 $40,710 $38,772 $38,772 $590,982 8 $47,746 $44,267 $44 267 $620,531 9 $55,133 $49,668 $49.668 $651,558 10 $62,889 $54,939 $54 939 $684,136 11 $71,034 $60,037 $60 037 $718,343 12 $79,586 $67,264 $64 914 $754,260 13 $88,565 $74,854 $69 518 $791,973 14 $97,993 $82,822 $73 788 $831,571 15 $107,893 $91,189 $77 658 $873,150 16 $118,287 $99,975 $81 053 $916,807 17 $129,202 $109,199 $83 890 $962,648 18 $140,662 $118,885 $86 074 $1,010,780 19 $152,695 $129,055 $87 503 $1,061,319 20 $165,330 $139,734 $88061 $1,114,385 21 $178,596 $150,947 $87 620 $1,170,104 22 $192,526 $162,720 $86 038 $1 228,610 23 $207,152 $175,082 $83 156 $1 290,040 24 $222,510 $188,062 $78 800 $1 354,542 25 $238,635 $201,691 $72 776 $1 422,269 26 $255,567 $216,001 $64 869 $1.493,383 27 $273,346 $231,027 $54 844 $1,568,052 28 $292,013 $246,805 $42,436 $1,646,454 29 $311,614 $263,371 $27,358 $1 728,777 30 $332,194 $280,765 $9,290 $1,8!5,216 31 $353,804 $299,029 $0 $1,905,977 32 $376,494 $318,207 $0 $2,001,275 33 $400,319 $338,343 $0 $2,101,339 34 $425,335 $359,486 $0 $2,206,406 35 $451,602 $381,686 $0 Conclusions: -The program creates an incentive to pay the City loan as soon as possible -The longer an employee works for City or School District, the less equity they have to pay the City -For employee that quit, the longer they take to pay the City loan, the more money the City makes on its loan -If an employee quits, it behooves them to oay the City loan back immediately so they can minimize the equity share they have to pay the City -For the City early pay back means they can make a new loan quicker, delayed pay back means more money for more loans later Exhibit D City of South San Francisco First Time Homebuyer Program General Program Obiectives The proposed City of South San Francisco First Time Homebuyer Program is designed to achieve the following key objectives: · To establish and maintain a program that creates and maximizes affordable home ownership opportunities for low- and moderate-income households · To create a program that provides for long term affordability for homeowners · To maximize the number of households that receive assistance · To leverage City funds by participating in the San Mateo County CHIP program and other lending programs · To assist City employees purchase a home and encourage employee retention by giving them first priority for loans · That assist South San Francisco schoolteachers purchase a home and encourage employee retention by giving them second priority for loans · To provide assistance to long-time South San Francisco residents and workers by also giving second priority for loans to people who have lived or worked in South San Francisco for five or more years Program Funding Structure The City's First Time Homebuyer program provides low-interest "silent second" loans to qualified first time homebuyers. By deferring loan payments for a period of five years the City is creating a grant-like mechanism that makes it easier for borrowers to qualify for conventional first loans from a lenders. City loans can be for up to $100,000 with a maximum loan amount of $50,000 from Redevelopment Agency (RDA) funds and a maximum loan amount of $50,000 from Community Development Block Grant (CDBG) funds. In addition, the City's loan is compatible with the San Mateo County CHIP Program. Compatibility with CHIP will make it possible for CHIP eligible first time homebuyer programs to borrow up to $100,000 by leveraging the City's funds with CHIP Investor funds. Program Participant Requirements First Time Homebuyer Program participants must be first time homebuyers. A first time homebuyer is defined as a borrower who has not owned a residential property in the past three years. The city will verify non-ownership status by reviewing the participant's credit reports and the last three years' tax returns. Exceptions can be made for displaced homemakers such as divorced and widowed single parents. Live and/or Work Requirements Participants in the City's first time homebuyer program must live and/or work in the City of South San Francisco. Priority is also given to people who have lived or worked in South San Francisco for five or more years. Program Education and Counseling The City program requires interested prospective buyers to attend a first time homebuyer seminar. The City contracts with organizations such as Consumer Credit Counseling Services and First Home to provide homebuyer educational seminars. Program Priority - Target Buyers In addition to live and work priorities, the City will give priority to certain targeted borrowers. The City has determined there is a need to attract and retain certain types of public service employees, such as teachers, librarians, and police officers that serve the South San Francisco community. Therefore, the City will give priority to City employees and South San Francisco schoolteachers. To further leverage City funds, the City may also decide to give priority to employees of organizations participating in the CHIP Program. Income Eligibility Income eligibility is contingent on the funding source used to make loans and on the number of persons in a household. Loans funded with Redevelopment Agency Housing Set-Aside are available for buyers whose income does not exceed 120 percent of area median income. Loans funded with federal Community Development Block Grants (CDBG) are restricted to persons earning up to 80 percent of median inc. ome. Loans funded using federal HOME program funds will be restricted to persons earning up to 60 percent of median income. If the City uses more than one source of money to fund a loan the more restrictive eligibility criteria will take precedence. For the 2002-2003 fiscal year income eligibility is as follows: % Area IncomeI Person 2 People 3 People 4 People 60% MFI $36,150or less $41,340or less $46,500or less $51,660or less 90% MFI $36,151- $57,00C $41,341- $65,150 $46,501- $73,30(2 $51,661- $81,4512 120% MFI $57,001- $72,300 $65,151- $82,650 $73,301- $92,95C $81,451- $103,3012 % Area Income5 People 6 People 7 People 8 People B0% MFI $55,800or less $59,940or less $64,050or less $68,190or less B0%MFI $55,801- $87,950 $59,941- $94,4512 $64,051- $101,000 $68,191- $107,500 120%MFI $87,951- $111,5513 $94,451- $119,85C $101,001- $128,1012 $107,501- $136,350 Geographic Restrictions Funds from the City's First Time Homebuyer Program can only be used to purchase homes within South San Francisco city limits. For loans made with certain types of federal funding, such as HOME or CBDG, the City may impose additional geographic restrictions such as limiting home purchases to established CDBG target neighborhoods. Property Restrictions Property types eligible for purchase is limited to detached single-family residences, condominiums, or town homes. All other types of properties are excluded from the program. Ownership in Fixed Assets Applicants who own fixed assets such as land or a percentage of investment property are eligible for the first time homebuyer program, however, the City will consider the earnings equivalent value of the assets to determining income eligibility. To determine the earnings equivalent, the City will multiply the value of the fixed asset by a factor assigned by the Department of Housing and Urban Development (HUD). Currently the earnings equivalent is set at six percent (6%). For example, for a fixed asset valued at $100,000 the City will add $6,000 ($100,000 x .06) to that person's income for the purpose of calculating income eligibility. Loan Approval by First Lender Program participants must be credit approved by a first lender prior to obtaining a loan reservation from the City's First Time Homebuyer Program. The approval must meet the following guidelines: · The first lender's credit approval must be for an "A" or better grade loan. This requires that the borrower maintain good to excellent credit and have a savings history that will allow the lender to provide the borrower with an "A" grade mortgage loan. The City, or its program administrator, will require the program participant to provide a copy of the first lender's approval prior to submitting a reservation request to the City. · The first lender will establish a maximum debt ratio for housing costs and personal debt for the borrower. The allowable housing cost ratio will also depend on the source of funds for the second loan. Both CDBG and RDA Housing Set- Aside have a 30 percent ratio requirement. Mortgage Credit Certificates Program participants will be able to participate in the County's Mortgage Credit Certificate Program (MCC), provided that the borrower meets MCC income guidelines, that the purchase price of the property does not exceed $381,000, and that funds are available under the MCC Program. Loan Parameters The City provides its first time homebuyer loans in the form of a silent second mortgage loan. Repayment of loan will occur through two componentsp amortization and shared appreciation. Amortized Repayment The City will defer payments and provide its loan interest free for a period of five (5) years. The loan will then amortize over a period of 25 years with an interest rate of four percent (4%). Voluntary principal reduction is available for borrowers who want to reduce the balance of their notes during the deferral period. By making interest-free payments on a scheduled incremental basis borrowers will prepare themselves for the mandatory payments that will begin on the eleventh year of the loan. Standard Shared Appreciation Shared appreciation requires that the borrower pay the City a portion of the profit they make upon sale of the property. The City's appreciation share is also due at the time the borrower takes out cash through a property refinance, or upon transfer of the property. The City can make an exception to the cash out option for borrowers making property repairs or having certain emergencies, as determined by the City's Housing Manager, provided that the City's loan is not placed at risk. By risk, it means that under no circumstance will the City allow borrowers to take cash out without requiring repayment if the total loan(s) to value exceeds 80 percent (80%) of home value including the value of the City's loan principle, interest due, and appreciation share. The City's appreciation share is equal to the City's percentage contribution of the purchase price. For example, if the City contributes $50,000 towards the purchase of a $400,000 home, the City's will have contributed 12.5 percent (12.5%) of the purchase price. Therefore, the City will receive 12.5% of the property's appreciation upon sale. In this example, if the contract price is $500,000 at the time of sale (an appreciation of $100,000), the City will receive $12,500 of the $100,000 profit, plus any remaining loan principle and interest. The owner will receive $87,500 of the $100,000 profit plus any equity accrued though principle reduction. The City, at its discretion may adjust the appreciation share for individuals so that the City's First Time Homebuyer Program is in compliance with other loan programs that can leverage City funds. For example, the City may adjust the appreciation share for some buyers so that buyers can qualify for a loan from the California Housing Finance Agency (CHFA) who has established loan appreciation caps. Public Service Employee Shared Appreciation (If Approved by City Council) To encourage public service employee retention, the City is establishing an alternative method to calculating the appreciation share on public service employee loans. Public service employees that receive priority loans will have an initial appreciation share factor of 200 percent (200%) that will gradually decrease to zero percent (0%) over a twenty- five year period. That is, if the City initially contributes 12.5% of the purchase price it will be entitled to 25% (12.5% x 200%) of the appreciation value if the borrower sells the property during the first year. However, over 25 to 30 years, the City's appreciation share will decrease to zero percent (0%). Therefore, if the borrower sells the property after 25 to 30 years of continued public service employment, the borrower will retain all of the appreciation value. The rate of declining appreciation share would correlate to the reduction in the City's outstanding loan principle. That is if 90 percent of the City's loan principle is outstanding, the City will receive 90 percent of its contracted appreciation amount. If the outstanding principle is 10 percent, the City would receive 10 percent of its contracted appreciation amount. Thus the longer an employee works for the City, the less principle they will owe, and the lower amount of appreciation they will have to pay the City when they sell their home. Also, the City Council should note that the original principle and interest are still due as scheduled on the City's loans which are not affected by the declining depreciation. Finally, the City would only allow cash-out refinancing under the conditions specified the Standard Share Appreciation section above. Exhibit E (Sample Loan Documents) COUNTYWIDE HOME INVESTMENT PARTNERSHIP (CHIP) City of SILENT LOAN PROGRAM PROMISSORY NOTE Date The undersigned, ("Borrowers") promises to pay to The Redevelopment Agency of Some City ("Lender/Agency"), or order, at Some City, California, the principal sum of Dollars ($ ). Except as hereinafter provided, no interest shall accrue upon the principal until the sixth (6th) anniversary of the date of this Note. Thereafter, interest shall accrue at the rate of four percent (4%) per annum upon the unpaid principal, and interest and principal shall be payable in three hundred (300) equal monthly installments of $__ commencing sixty (60) months from the date of this Note. In addition, it is anticipated that the Lender / Agency will contract an outside service to service the payments on the Note. The projected cost of the service will be approximately six dollars and fifty cents ($6.50) per a month. The cost of this service will be borne by the Borrower and may be changed with no further notice prior to and/or after the principal and interest repayment on the loan commences. Commencing the anniversary date of the fifth year, in the event that any installment of interest or principal is not made when due, and such default continues for a period of fifteen (15) days thereafter, Borrower promises to pay a late charge equal to 5% of the delinquent payment. If default shall be made in the payment of any installment when due and said default shall continue for a period of fifteen (15) days thereafter, at the option of the holder of this Note, the entire remaining balance of the principal and accrued interest shall become immediately due and payable. In the event that default shall be made in the payment of this Note when due, and proceedings shall be commenced to foreclose under the terms of the deed of trust securing this Note, Borrower promises to pay to the holder of this Note a reasonable attorney's fee incurred in such foreclosure proceedings. This Note may be prepaid at any time without penalty. This Note is made pursuant to a Shared Appreciation Loan Agreement between Borrower and Lender/Agency of even date. The Loan Agreement provides, among other things, that the following shall constitute Disqualifying Events: (a) Lease of the Dwelling for a period of more than two months in any one calendar year. (b) Sale, conveyance, or other alienation of the Dwelling (including a sale under a deed of trust in the event of foreclosure), if the remaining ownership interest of Borrower in the Dwelling is less than fifty percent (50%). (c) Borrower ceases to reside in the Dwelling as his or her Principal Residence. (d) A default shall occur under the terms of the Senior Deed of Trust and said default shall not be cured within sixty (60) days following the recordation of notice of default by the trustee under the Senior Deed of Trust. (e) Borrower incurs additional indebtedness, either through a senior or junior loan, on the property in excess of the principal balance of the existing loans secured against the property at the original purchase of the property. Upon the first day of the calendar month following a Disqualifying Event, notwithstanding anything to the contrary contained in this Note or the Junior Deed of Trust, the following shall occur. (i) Interest on this Note shall accrue at a rate equal to the Federal Reserve Boards Eleventh District Cost of Hicapdoc-CHIP final (March 2002) 1 Funds plus 2.5% per annum, and the principal balance of this Note shall be amortized in equal monthly installments including interest and principal over a period of thirty (30) years commencing upon the first day of the second month following the Disqualifying Event. (ii) At the option of the holder of this Note, the entire remaining balance of the principal and accrued interest shall become immediately due and payable. The Loan Agreement also provides that Borrower shall pay Lender/Agency a portion of the appreciation in the value of the Dwelling securing this Note, and Borrower agrees to pay said sum, if any, to Lender/Agency in accordance with the terms and conditions of the Shared Appreciation agreement incorporated with this Loan Agreement. This Note is secured by a deed of trust upon real property situation in Some City, County of San Mateo, State of California commonly known and described as .. Borrower Co-borrower Dated Dated Hicapdoc-CHIP final (March 2002) COMPLIMENTARY RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 When Recorded Mail To: The Redevelopment Agency of Some City PO Box 391 Some City, CA 94064 Attn: Silent Loan Program Coordinator Loan Number: DEED OF TRUST AND SECURITY AGREEMENT SUBORDINATE DEED OF TRUST THIS DEED OF TRUST AND SECURITY AGREEMENT ("Deed of Trust") made this ~ day of ,20__, among the trustor, __ ("Borrower"), whose address is , and ("Trustee"), and the Redevelopment Agency of Some City (the "Agency") as Beneficiary, whose principal address is __, Some City, California 94064. The Borrower, in consideration of the promises herein recited and the trust herein created, irrevocably grants, transfers, conveys and assigns to Trustee, in trust with power of sale, the property located in Some City, State of. California, described in the attached Exhibit "A" and more commonly known as: Some City, California (the "Property"). TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, and all fixtures now or hereafter attached to the property, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the property covered by this Deed of Trust; and TOGETHER with all articles of personal property or fixtures now or hereafter attached to or used in and about the building or buildings now erected or hereafter to be erected on the Property which are necessary to the complete and comfortable use and occupancy of such building or buildings for the purposes for which they were or are to be erected, including all other goods and chattels and personal property as are ever used or furnished in operating a building, or the activities conducted therein, similar to the one herein described and referred to, and all renewals or replacements thereof or articles in substitution therefore, whether or not the same are or shall be attached to said building or buildings in any manner; and all of the foregoing, together with the Property, is herein referred to as the "Security"; To have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever; TO SECURE to the Agency the repayment of the sums evidenced by a Promissory Note executed by Borrower and the Agency dated 20_, in the amount of Dollars ($~.) ("Note"); and TO SECURE the payment of all other sums, with interest thereon, said Note providing for full payment, due and payable upon sale or transfer of the Property or failure of Borrower to occupy the Property as Borrower's principal place of residence BORROWER AND AGENCY COVENANT AND AGREE AS FOLLOWS: 1. Title. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring Agency's interest in the Property, and that other than this Deed of Trust, the Security is encumbered only by the following priority lien senior to this deed: (1) that deed of trust (the "First Lender Deed of Trust") executed by Borrower in connection with a loan made to Borrower by (the "First Lender"), securing a promissory note executed by Hicapdoc-CHIP final (March 2002) 3 Borrower in favor of the First Lender ("First Lender Note") and (2) the Note, (3) and the following allowed encumbrances 2. Repayment of Loan. Borrower will promptly repay, when due, the principal, interest (if any), and any late charges due and required by the Note and such other amounts as are provided under this Deed of Trust or under the Note. 3. Preservation and Maintenance of Property. (A) Borrower covenants to keep the Property in good condition and repair, not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and material furnished therefor; to comply with all laws affecting the Property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon the Property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts which form the character of the Property may be reasonably necessary, the specific enumeration herein not excluding the general. (B) If this Deed of Trust is on a unit in a condominium, stock cooperative, or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium, stock cooperative, or planned unit development, and constituent documents. If a condominium, stock cooperative, or planned unit development rider is executed by Borrower and recorded together with this Deed of Trust, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Deed of Trust as if the rider were a part hereof. 4. Appear and Defend. Borrower shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Agency or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which the Agency or Trustee may appear, and in any suit brought by the Agency to foreclose this deed. 5. Prior Deeds of Trust; Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Deed of Trust, and leasehold payments or ground rents, if any. Borrower shall make payment on time directly to the person owed payment. Borrower shall make such payments when due, directly to the payee. Except for the lien of the First Deed of Trust, Borrower shall promptly discharge any other lien which shall have attained priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to the Agency; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Agency's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Agency subordinating the lien to this Security Instrument. Except for the lien of the First Deed of Trust, if Agency determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Agency may give Borrower a notice identifying the lien. Borrower shall satisfy such lien or take one or more of the actions set forth above within ten (l 0) days of the giving of notice. 6. Subordination. Agency and Borrower acknowledge and agree that this Deed of Trust is subject and subordinate in all respects to the liens, terms, covenants and conditions of the First Lender Deed of Trust and to all advances heretofore made or which may hereafter be made pursuant to the First Lender Deed of Trust including all sums advanced for the purpose of (a) protecting or further securing the lien of the First Lender Deed of Trust, or for any other purpose expressly permitted by the First Lender Deed of Trust or (b) constructing, renovating, repairing, furnishing, fixturing or equipping the Property. The terms and provisions of the First Lender Deed of Trust are paramount and controlling, and they supersede any other terms and provisions hereof in conflict therewith. In the event of a foreclosure or deed in lieu of foreclosure of the First Lender Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. Hicapdoc-CHIP final (March 2002) 4 Further, if the First Lender acquires title to the Property pursuant to a deed in lieu of foreclosure, the lien of the Deed of Trust shall automatically terminate upon the First Lender's acquisition of title, provided that the Agency shall not have cured the default under the First Deed of Trust or diligently pursued curing the default as determined by the First Lender within the sixty (60) day period provided in such notice sent tO the Agency. 7. Hazard Insurance. Borrower will keep the Security insured by a standard fire and extended coverage ~nsurance policy in at least such amounts and for such periods as the Agency may require, which amounts shall be the lesser of (1) the sum of the loan amount under the Note and the First and Second Lenders Note, or (2) the replacement cost of the Security, but in no event less than (3) the amount necessary to prevent Borrower from becoming a co-insurer under the terms of the policy. The insurance carrier providing this insurance shall be licensed to do business in the State of California and be chosen by Borrower subject to approval by the Agency. All insurance policies and renewals thereof will be in a form acceptable to the Agency and will include a standard mortgagee clause with standard lender's endorsement in favor of the holder of the Second Lender Note as its interests may appear and in a form acceptable to the Agency. The Agency shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Borrower shall promptly furnish to the Agency, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, Borrower will give prompt notice to the insurance carrier and the Agency or its designated agent. The Agency, or its designated agent, may make proof of loss if not made promptly by Borrower. The Agency shall receive thirty (30) days advance notice of cancellation of any insurance policies required under this section. Unless the Agency and Borrower otherwise agree in writing, insurance proceeds, subject to the rights of the First Lender, will be applied to restoration or repair of the Security damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Deed of Trust would be impaired, the insurance proceeds will be used to repay the grant under this Deed of Trust, with the excess, if any, paid to Borrower. If the Security is abandoned by Borrower, or if Borrower fails to respond to the Agency, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to borrower that the insurance carder offers to settle a claim for insurance benefits, the Agency, or its designated agent, is authorized to collect and apply the insurance proceeds at the Agency's option either to restoration or repair of the Security or to repay the loan. If the Security is acquired by the Agency, all right, title and interest of Borrower in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Security prior to the sale or acquisition will pass to the Agency to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition subject to the rights of the First Lender. 8. Occupancy of Property; Borrower's Loan Application. Borrower shall occupy, establish, and maintain the use of the Property as Borrower's principal residence within sixty (60) days after the execution of this Security Instrument. Borrower's principal residence shall mean the Property is occupied by the Borrower for at least ten (10) months out of each year. The Borrower shall not lease the Property for more than two (2) months without the written consent of the Agency during any twelve (12) month period and shall not lease the Property without providing the Agency with a copy of the lease. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Deed of Trust or Agency's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 19, by causing the action or proceeding to be dismissed with a ruling that, in Agency's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Deed of Trust or Agency's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Agency (or failed to provide Agency with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning (i) Borrower's occupancy of the Property as a principal residence and (ii) Borrower's income. 9. Protection of the Aeency's Security. If Borrower fails to perform the covenants and agreements contained Hicapdoc-CHIP final (March 2002) 5 in this Deed of Trust or if any action or proceeding is commenced which materially affects the Agency's interest in the Security, including, but not limited to, default under the Deed of Trust securing the First Lender Note, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the Agency, at the Agency's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as it determines necessary to protect the Agency's interest, including but not limited to, disbursement of reasonable attorney's fees and entry upon the Security to make repairs. Any amounts disbursed by the Agency pursuant to this paragraph, with interest thereon, will become an indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Agency agree to other terms of payment, such amount will be payable upon notice from the Agency to Borrower requesting payment thereof, and will bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts will bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph will require the Agency to insure any expense or take any action hereunder. 10. Inspection. The Agency may make or cause to be made reasonable entries upon and inspections of the Security; provided that the Agency will give Borrower reasonable notice of inspection. 11. Application of Payments. Unless applicable law provides otherwise, any payments received by the Agency under the Note shall be applied by the Agency first to interest, if any, and then to the principal due on the Note. 12. Condemnation. (A) The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation, exercise or eminent domain, or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to the Agency subject to the terms and rights of the First Deed of Trust. (B) In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property, unless Borrower and the Agency otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (1) the total amount of the sums secured immediately before the taking, divided by (2) the fair market value of the Property immediately before the taking. Any balance shall be paid to the Borrower. (C) If the Property is abandoned by.Borrower, or if, after notice by the Agency to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to the Agency within thirty (30) days after the date such notice is mailed, the Agency is authorized to collect and apply the proceeds of any award to the sums secured by this Deed of Trust. (D) Unless the Agency and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of payment or payments specified in the Note or change the amount of such payment or payments. 13. Forbearance by the Agency Not a Waiver. Any forbearance by the Agency in exercising any right or remedy will not be a waiver of the exercise of any such right or remedy. The procurement of insurance or the payment of taxes or other liens or charges by the Agency will not be a waiver of the Agency's right to accelerate the maturity of the indebtedness secured by this Deed of Trust. 14. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded by law or equity, and may be exercised concurrently, independently or successively. 15. Successors and Assigns Bound. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the Agency and Borrower subject to the provisions of this Deed of Trust. Hicapdoc-CHIP final (March 2002) 6 16. Joint and Several Liability. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the Agency and Borrower, subject to the provisions of paragraph 29 hereof. All covenants and agreements of Borrower shall be joint and several. 17. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Deed of Trust will be given by certified mail, addressed to Borrower at the address shown in the first paragraph of this Deed of Trust or such other address as Borrower may designate by notice to the Agency as provided herein, and (b) any notice to the Agency will be given by express delivery, return receipt requested, to the Agency at the address shown in the first paragraph or to such other address as the Agency may designate by notice to Borrower as provided above. Notice shall be effective as of the date received by Agency as shown on the return receipt. 18. Governing Law. This Deed of Trust shall be governed by federal law and the law of the State of California. 19. Severability. In the event that any provision or clause of this Deed of Trust or the Note conflicts with applicable law, such conflict will not affect other provisions of this Deed of Trust or the Note which can be given effect without the conflicting provision, and to this end the provisions of the Deed of Trust and the Note are declared to be severable. 20. Captions. The captions and headings in this Deed of Trust are for convenience only and are not to be used to interpret or define the provisions hereof. 21. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. 22. Hicapdoc-CHIP final Acceleration: Remedies. Upon Borrower's breach of any covenant or agreement of Borrower in this Deed of Trust, including, but not limited to, the covenants to pay, when due, any sums secured by this Deed of Trust, the Agency, prior to acceleration, will mail by express delivery, return receipt requested notice to Borrower specifying; (1) the breach; (2) the action required to cure such breach; (3) a date, not less than thirty (30) days from the date the notice is received by Borrower as shown on the return receipt, by which such breach is to be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Security. The notice will also inform Borrower of Borrower's right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, the Agency, at the Agency's option, may: (a) declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by California law; (b) either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof, and the entering upon and taking possession of the Security shall not cure or waive any breach hereunder or invalidate any act done in response to such breach and, notwithstanding the continuance in possession of the Security, the Agency shall be entitled to exercise every right provided for in this Deed of Trust, or by law upon occurrence of any uncured breach, including the right to exercise the power of sale; (c) commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (d) deliver to Trustee a written declaration of default and demand for sale, pursuant to the provisions for notice of sale found at California Civil Code Sections 2924, eta., as amended from time to time; or (e) exercise all other rights and remedies provided herein, in the instruments by which the Borrower acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law. (March 2002) The remedies specified herein are not intended to substitute for those provided in the Promissory Note and Shared Appreciation Agreement, all of which shall remain in full force and effect. The Agency shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees. 23. Borrower's Right to Reinstate. Notwithstanding the Agency's acceleration of the sums secured by this Deed of Trust, Borrower will have the right to have any proceedings begun by the Agency to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Security pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (a) Borrower pays Agency all sums which would be then due under this Deed of Trust and no acceleration under the Note has occurred; (b) Borrower cures all breaches of any other covenants or agreements of Borrower contained in this Deed of Trust; (c) Borrower pays all reasonable expenses incurred by Agency and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, and in enforcing the Agency's and Trustee's remedies, including, but not limited to, reasonable attorney's fees; and (d) Borrower takes such action as Agency may reasonably require to assure that the lien of this Deed of Trust, Agency's interest in the Security and Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration had occurred. 24. Assignment of Rents; Appointment of Receiver; the Agency in Possession. Upon acceleration under Paragraph 22 hereof or abandonment of the Property, the Agency (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by the Agency or the receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, but not limited to, receiver's fees, premiums on receiver's bonds, and reasonable attorney's fees, and then to the sums secured by this Security Instrument. The Agency and the receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and Paragraph 22 shall operate subject to the claims of prior lien holders. 25. Reconveyance. Upon payment of all sums secured by this Deed of Trust, the Agency will request Trustee to reconvey the Security and will surrender this Deed of Trust and the Note to Trustee. Trustee will reconvey the Security without warranty and without charge to the person or persons legally entitled thereto. Such person or persons will pay all costs of recordation, if any. 26. Substitute Trustee. The Agency, at the Agency's option and upon providing written notice to the First Lender, may from time to time remove the Trustee and appoint a successor trustee to any Trustee appointed hereunder. The successor trustee will succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law. 27. Superiority of First and Second Lenders Documents. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the First Lender Deed of Trust or any subsequent First Lender Deed of Trust hereafter recorded against the Deed of Trust. 28. Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as a single family residential dwelling. 29. Transfer of the Property; Assumption. If all or any part of the Property or an interest therein is sold or transferred by Borrower without the Agency's prior written consent, the Agency may, at the Agency's option, declare all the sums secured by this Security Instrument to be immediately due and payable. If the Agency exercises such option to accelerate, the Agency shall mail Borrower notice of acceleration in accordance with Paragraph 22 hereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, the Agency may without further notice demand on Borrower, invoke any remedies permitted by Paragraph 22 above hereof. Hicapdoc-CHIP final (March 2002) 30. Borrower's Copy. Borrower shall be given a conformed copy of the Note and this Security Instrument. IN WITNESS WHEREOF, Borrower has executed this Deed of Trust as of the date first written above and by so doing, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument. Borrower Co-borrower Hicapdoc-CHIP final (March 2002) STATE OF CALIFORNIA COUNTY OF On , before me, , personally appeared personally known to me - OR - proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. STATE OF CALIFORNIA COUNTY OF On before me, , personally appeared personally known to me - OR - proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(is) and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Hicapdoc-CHIP final 10 (March 2002) Legal description EXHIBIT A Property Description Hicapdoc-CHIP final ]1 (March 2002) COMPLIMENTARY RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 When Recorded Mail To: The Redevelopment Agency of Some City PO Box 391 Some City, CA 94064 Attn: Silent Loan Program Coordinator COUNTYWIDE HOME INVESTMENT PARTNERSHIP (CHIP) CITY OF SHARED APPRECIATION LOAN AGREEMENT This Loan Agreement made this Agency of Some City CLender/Agency") day of ,20__, by and between The Redevelopment ("Borrower") RECITALS: A. Lender/Agency has established a First Time Home Buyer Program ("Program") for the benefit of households who are either employed within the geographic region or currently reside within the geographic region of Some City B. Borrower will receive a loan from Lender/Agency under the Program. C. The parties wish to enter into this Loan Agreement to define the rights and obligations of the Borrower with respect to the Loan. NOW, THEREFORE, the parties agree as follows: 1. Definitions. Unless otherwise defined in this Agreement, all capitalized words, terms and phrases used in this Agreement shall have the following meanings a. "Appraiser" shall mean a real estate appraiser who is certified and licensed in California. c. "Borrower" shall mean a borrower or co-borrower or co-borrower(s) who execute this Agreement and all relevant loan program documents related hereto. d. "First Time Homebuyer" shall mean a Borrower who has not owned a primary residential property within the past three years. Exception to this rule will be applied for a Borrower who has had only nominal, non- controlling interest in a residence consistent with the goals of the Program Guidelines. In such cases, an interest yield which is established and published by the United States Housing and Urban Development (HUD) division, will be applied towards the value of the percentage ownership that the Borrower maintains. This yield will then be applied towards the Borrower's income in determining the Borrower% eligibility as based on the Program Guidelines. For example, if a Borrower has a 50% interest in an exempt property that is worth $250,000 the Lender/Agency will apply an interest yield of 6% (for this example) to 50% of the ownership, or 6% towards $125,000. This would equate to an additional $7,500 of income added to the Borrower's income for program eligibility purposes. e. "Program" shall mean to the "Some City" Countywide Home Investment Pannership (CHIP) Program Hicapdoc-CHIP final (March 2002) 12 f. "Program Guidelines" shall mean the Program Guidelines dated the Agency, as may be amended from time to time by the Agency. ,and approved by g. "Dwelling" shall mean the real property commonly known and described in the attached Exhibit "A" and more commonly known as ,_ California, which will be the Principal Residence of the Borrower. h. "Principal Residence" shall mean the place where the Borrower resides on a substantially full- time basis, for not less than ten (10) months in each calendar year. i. "Note" shall mean the Promissory Note made by the Borrower payable to Lender/Agency secured by the Junior Deed of Trust upon the Dwelling. j. "Senior Deed of Trust" shall mean the Deed of Trust made by the Borrower to a lender which is a prior lien upon the Dwelling senior to the Junior Deed of Trust, commonly referred to as the first lender. ho Disqualifying Events shall include but not be limited to: (I) Lease of the Dwelling for a period of more than two months in any one calendar year. (ii) Sale, conveyance, or other alienation of the Dwelling (including a sale under a deed of trust in the event of foreclosure), if the remaining ownership interest of the Borrower in the Dwelling is less than fifty percent (50%). (iii) Borrower ceases to reside in the Dwelling as .hi.s other or their Principal Residence. (iv) A default shall occur under the terms of the Senior Deed of Trust and said default shall not be cured within sixty (60) days following the recordation of notice of default by the trustee under the Senior Deed of Trust. (v) Borrower incurs additional indebtedness, either through a senior or junior loan, on the property in excess of the principal balance of the existing loans secured against the property at the original purchase of the property. 2. Loan. Lender/Agency agrees to lend and the Borrower agrees to borrow the sum of Dollars ($~). The loan will be evidenced by the Note and will be secured by the Junior Deed of Trust upon the Dwelling. 3. Disqualifying Event. Upon the first day of the calendar month following a Disqualifying Event, notwithstanding anything to the contrary contained in the Note or the Junior Deed of Trust, the following shall occur. a. Interest on the Note shall accrue at a rate equal to the Eleventh District Cost of Funds plus 2.5% per annum, and the principal balance of the Note shall be amortized in equal monthly installments including interest and principal over a period of thirty (30) years commencing upon the first day of the second month following the Disqualifying Event. b. At the option of the holder of the Note, the entire remaining balance of the principal and accrued interest shall become immediately due and payable. 4.. Refinancing. Lender/Agency shall not be required to subordinate to the lien of a new Senior Deed of Trust in the event that the loan initially obtained by the Borrower is to be refinanced. Provided, however, Lender/Agency will consent to such refinancing if all of the following conditions are met: (a) the proceeds of such loan do not exceed the amount of the remaining principal secured by the Senior Deed of Trust, plus the reasonable cost of refinancing, (b) the interest rate payable under the note given in connection with the refinancing is less than the interest rate payable under the note secured by the Senior Deed of Trust prior to refinancing, and (c) the Borrower does not obtain an additional junior loan which will create an indebtedness over the current balance of the existing loans on the property, and c) no Disqualifying Event has occurred. 5. Shared Appreciation. In addition to the repayment of the principal and payment of interest as provided in the Note and this Agreement, Borrower agrees to pay Lender/Agency a share of any appreciation in the value of the Dwelling between the date of its purchase by the Borrower and the date of its sale, repayment of the Note prior to sale of the Hicapdoc-CHIP final (March 2002) 13 Dwelling, or upon the happening of any Disqualifying Event. The amount of shared appreciation payment required shall be based upon the Value of the Dwelling less the Cost of the Dwelling and any Additional Costs and Closing Costs as those terms are defined herein below and the formula as defined herein below. The share appreciation calculation applied towards the loan is outlined in the Shared Appreciation Disclosure Statement as part of the Truth in Lending Disclosure Statement. "Cost of the Dwelling" shall mean the purchase price paid by the Borrower plus any escrow fees and the cost of title insurance paid by them at the time the Dwelling is purchased. The parties agree that the Cost of the Dwelling is $ "Additional Costs" shall mean the verified cost of any capital improvement made to the Dwelling by the Borrower which is in excess of $2,000, and the cost of which may be added to the basis of the Dwelling for federal income tax purposes under the Internal Revenue Code ("Code"). It shall be the responsibility of Borrower to retain all records and to substantiate any Additional Costs. "Closing Costs" shall mean the verified cost which the Borrower is responsible for as related to the sale of the property, including the real estate sales commissions, and sellers allocation of transfer tax, if any. Closing costs shall not include credits provided by the seller to pay for the new buyers closing costs, commonly referred to as a seller's credit and shall not include costs associated with refinance. "Value" shall mean: a) if the Dwelling is sold at fair market value in a bona fide sale transaction to a third party, the gross sales price less a reasonable real estate commission and costs of sale which would be deductible in determining the gain under the Code, or b) if the Dwelling is not sold, the fair market value (without the deduction of any anticipated costs of sale) as determined by the appraiser selected by Borrower in accordance with this agreement. If the Dwelling is not sold or not sold at fair market value in a bona fide sales transaction to a third party, "Value" shall mean and be determined as follows: Borrower and Agency shall mutually select a licensed and certified Appraiser and said Appraiser shall make the appraisal. The appraisal shall be binding upon both parties. In the event that the Borrower and Lender cannot agree on an appraiser within twenty (20) days after the request by the Agency, then Agency may select a licensed and certified appraiser who shall make the appraisal. Both parties shall cooperate with the appraiser in the making of such appraisal. The cost of the appraisal shall be shared between the parties in the proportion in which they are entitled to share in the Shared Appreciation. Lender/Agency's share of the Shared Appreciation shall be payable in cash upon the sale of the Dwelling, or within twenty (20) days following delivery of the appraisal to the parties by the appraiser selected. 6. Shared Appreciation Formula. Shared Appreciation shall be calculated by multiplying a share of any appreciation in the value of the Dwelling times a proportion represented by one half of the Agency's loan to Cost of the Dwelling. For example, if the Cost of the Dwelling is $ 400,000 and the Lender/Agency's loan is $ 80,000, this proportion would be 10% ($40,000/$400,000). Therefore, to calculate the Shared Appreciation payment owed to the Agency, one would multiply 10% times any appreciation in the value of the Dwelling (based on original Cost of Dwelling plus Additional Costs as defined above). In this example, if the Dwelling sold for $600,000, (that is an appreciation of $200,000) the Borrower would repay the Lender/Agency 10% times the Appreciation of $200,000 which is $ $20,000 The Borrower's Cost of the Dwelling is $ and the Lender/Agency's loan is in the amount of $ , thus the proportion represented by the Agency's loan to the Cost of the Dwelling is % ($ /$. .). The Borrowers Shared Appreciation payment, until such time that the shared appreciation is paid for in full, is calculated by multiplying __% times any appreciation in the value of the Dwelling. Repayment will be required irrespective if the loan has been paid off to a zero dollar ($0) balance during or before the term of the loan. Hicapdoc-CHIP final 14 (March 2002) IN WITNESS WHEREOF, the parties have executed this Shared Appreciation Agreement upon the date above written. THE REDEVELOPMENT AGENCY OF Some City By: Borrower Dated Co-Borrower Dated Hicapdoc-CHIP final 15 (March 2002) StaffReport DATE: TO: FROM: SUBJECT: July 24, 2002 Honorable Mayor and City Council Kimberly A. Johnson, Assistant City Attorney Ordinance Amending Chapter 2, Administration, of the South Municipal Code related to terms limits for boards and commissions. San Francisco RECOMMENDATION: Waive reading and introduce an ordinance amending Chapter 2, Administration, of the South San Francisco Municipal Code. BA CKGROUND/DISCUSSION: Currently, most board and commission members are limited to serving two consecutive terms on the same board or commission. At the June 19, 2002, Special Meeting of the City Council, staff was directed to prepare changes to the South San Francisco Municipal Code to allow board and commission members to serve up to four consecutive terms. In accordance with the City Council's direction, Chapter 2.52, Public Library; Chapter 2.56, Planning Commission; Chapter 2.58, Historic Preservation; Chapter 2.60, Parks and Recreation Commission; Chapter 2.62, Personnel Board; and Chapter 2.64, Parking Place Commission; are all amended to reflect term limits of four consecutive terms for their respective boards and commissions. Additionally, language has been added to clarify that only full terms served prior to the effective date of the amendment will count towards Approved: establishir/qg the four consecutive term limit. S~eel¢~ T. ~[as, C~ Attorney S:\term_limit SR Jul2./loc Michael A. Wilson, City Manager ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 2, ADMINISTRATION, OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE WHEREAS, the City Council has determined that Title 2 of the Municipal Code should be amended to change the term limits of certain specified Boards and Commissions from two consecutive terms to four consecutive terms; and, WHEREAS, this ordinance shall apply to all relevant Chapters of the Municipal Code. WHEREAS, the City Council has determined that Title 2 of the Municipal Code should be amended to reflect the appropriate appointment dates for the Chairperson and Chairperson Pro Tern of the Parks and Recreation Commission, and the Parking Place Commission. NOW THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows: 1. PURPOSE: a) The purpose of this ordinance is to amend all relevant chapters of the Municipal Code to extend the applicable term limits from two consecutive terms, to four consecutive terms. b) This ordinance will also amend Chapters 2.60.040 and 2.64.040, to reflect the appropriate appointment date for the chairperson and chairperson pro tern of the relevant Commissions. 2. AMENDMENTS TO TITLE 2 a) CHAPTER 2.52.040: PUBLIC LIBRARY Chapter 2.52 of the South San Francisco Municipal Code is amended to read as follows: r, ........... ~ ........ ~ 4977 Trustees shall be limited to ' .... ur consecutive terms. Any full term served prior to the e.~ective date of this section, August 23, 2002, shall be counted .flor purposes of determining the number qfl consecutive terms served." b) CHAPTER 2.56.030: PLANNING COMMISSION Chapter 2.56 of the South San Francisco Municipal Code is amended to read as follows: "Commencing.~,,~- o..,~..~ ~ ........ ~1, ...111'7'7,,, Commissioners shall be limited to four consecutive terms. Any full term served prior to the effective date of this section, August 23, 2002, shall be counted .flor purposes o.f determining the number o. f consecutive terms served." c) CHAPTER 2.58.050: HISTORIC PRESERVATION Chapter 2.58 of the South San Francisco Municipal Code is amended to read as follows: "Commissioners shall be limited to twe four consecutive terms. Any full term served prior to the effective date o. fl this section, August 23, 2002, shall be counted for purposes of determining the number ofi consecutive terms served." d) CHAPTER 2.60.030: PARKS AND RECREATION COMMISSION Chapter 2.60 of the South San Francisco Municipal Code is amended to read as follows: ,, ~ ..... ; .... ~ ........ ~ ~n,,-7 Commissioners shall be limited to four consecutive terms. Any .full term served prior to the effective date o.f this section, August 23, 2002, shall be counted .for purposes of determining the number o. f consecutive terms served." e) CHAPTER 2.60.040: PARKS AND RECREATION COMMISSION Chapter 2.60 of the South San Francisco Municipal Code is amended to read as follows: ..................... ~ At the regular meeting in January of each year, the commission shall elect a Chairperson, Chairperson pro tem and appoint a secretary and secretary pro rem. The term of said office shall be one year. The Chairperson pro tern and secretary pro rem shall serve in the absence of the Chairperson and secretary." f) CHAPTER 2.62.030: PERSONNEL BOARD Chapter 2.62 of the South San Francisco Municipal Code is amended to read as follows: "Board members shall be limited to two four consecutive terms. Any full term served prior to the effective date of this section, August 23, 2002, shall be counted for purposes of determining the number of consecutive terms served." g) CHAPTER 2.64.030: PARKING PLACE COMMISSION Chapter 2.64 of the South San Francisco Municipal Code is amended to read as follows: ,,r, ......; .... ~ ........ ~ 1977 Commissioners shall be limited to t .... four consecutive terms. Any full term served prior to the effective date of this section, August 23, 2002, shall be counted for purposes of determining the number of consecutive terms served." h) CHAPTER 2.64.040: PARKING PLACE COMMISSION Chapter 2.64 of the South San Francisco Municipal Code is amended to read as follows: ,,r~, th= ,t,;,.a n~a,~,o,~,,,, ~ the regular meeting in January of each year, the commission shall elect a Chairperson, Chairperson pro tern and appoint a secretary and secretary pro tem. The term of said office shall be one year. The Chairperson pro tem and secretary pro rem shall serve in the absence of the Chairperson and secretary." 3. PUBLICATION AND EFFECTIVE DATE This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. 4. SEVERABILITY In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. Introduced and adopted at a regular meeting of the City Council of the City of South San Francisco, held the day of ,2002. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the __ day of, 2002 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this __ day of ,2002. Mayor F:\file cabinet\Current Ord's\ordinance revisions_chapter2.doc Staff Report DATE: TO: FROM: SUBJECT: July 24, 2002 Honorable Mayor and City Council Jennifer A. Bower, Director of Human Resources Amendment to Chapter 3.12 of the South San Francisco Municipal Code RECOMMENDATION Waive reading and introduce the ordinance, which amends Chapter 3.12 of the South San Francisco Municipal Code, to implement Council-approved position title additions, deletions, and/or changes. BACKGROUND/DISCUSSION As you know, the Municipal Code, Chapter 3.12 is updated during the budget process and periodically as positions are renamed, reclassified, developed, and/or deleted from the competitive and non-competitive service. This update was submitted once before, but is being resubmitted to correct one classification that was previously corrected in the Municipal Code - the Deputy Fire Chief. The following additions, deletions, and changes to the Municipal Code are being made. Add to the Municipal Code: Title Reason Fire Apparatus Engineer ......................................... Literacy Services Assistant ..................................... Supervising Librarian ............................................. Position added to the classified service as a result of negotiations. Title change as a result of a combining several classifications. Title change as a result of a reclassification study. Delete from the Municipal Code: Title Adult Day Care Coordinator .................................. Assistant City Attorney .......................................... Assistant Mechanic/Machinist - WQC ................... Associate Engineer - grant funded ......................... Reason Title no longer used. Title no longer used. Title no longer used. Position no longer used. JAB-07/18/02 F:\File Cabinet\City Council\BudgetX02Budget-Pers\Updated Muni Code.doc Staff Report Subject: Amendment to Municipal Code, Chapter 3.12 Page 2 Delete from the Municipal Code (Continued): Title Building Maintenance Supervisor .......................... Capital Project Coordinator .................................... City Attorney .......................................................... Construction Inspector - grant-funded ................... Deputy City Attorney ............................................. Director of WQCP .................................................. Economic Development Coordinator ..................... Garage Supervisor .................................................. Instrument Technician ............................................ Instrumentation Technician .................................... Lead Maintenance Worker (WQCP) ...................... Management Assistant ........................................... Maintenance Supervisor - water quality control .... Management Analyst VII listed in 3.12.010 (B) ..... Mechanic's Helper ................................................. Operations Supervisor - water quality control ....... Personnel Clerk ...................................................... Public Works Supervisor ........................................ Solid Waste Coordinator ........................................ Telecommunications Specialist .............................. Typist Clerk- grant-funded ................................... Reason Title no longer used. Title no longer used. Title no longer used. Position no longer used. Position no longer used. Title no longer used. Position no longer used. Title no longer used. Title no longer used. Position no longer used. Title no longer used. Position no longer used. Position no longer used. Position already listed in 3.12.010(A) Title no longer used. Position no longer used. Title no longer used. Title no longer used. Title no longer used. Title no longer used. Title no longer used. Change in the Municipal Code: From Assistant Plant Superintendent - WQCP .................................... Chief Planner ............................ Laboratory Chemist - WQC ..... Laboratory Supervisor - WQC Maintenance Worker - Parks .... Maintenance Worker - Public Works ....................................... Manager Housing and Community Development ........ To Reason Assistant Plant Title change for consistency. Superintendent .......................... City Planner .............................. Laboratory Chemist .................. Laboratory Supervisor .............. Park Maintenance Worker ........ Public Works Maintenance Worker ...................................... Manager Of Housing and Redevelopment ......................... Title change for consistency. Title change as a result of a labor agreement. Title change as a result of a labor agreement. Title change for consistency. Title change for consistency. Title change as a result of a reclassification study. JAB-07/18/02 F:~File Cabinet\City Council~Budget~02Budget-Pers\Updated Muni Code.doc Staff Report Subject: Amendment to Municipal Code, Chapter 3.12 Page 3 Change in the Municipal Code ]Yrom Operator I, WQC ...................... ~Continued): Plant Operator I ........................ Plant OperatorlI ....................... Operator II, WQC ..................... Payroll Coordinator .................. Financial Services Supervisor .. Parking Meter Collector - repairman .................................. Pre school Coordinator ............. Tutor Student Coordinator ....... Utility Worker, WQC ............... Parking Meter Collector - Repair Worker .......................... Recreation and Community Services Coordinator ................ Literacy Services Coordinator Plant Utility Worker ................. Rcasort Title change as a result of a abor agreement. Title change as a result of a labor agreement. Title change as a result of a reclassification study. Title change for consistency. Title change to combine several classifications. Title change to better reflect ~osition duties. Title change for consistency. Change in the Municipal Code from Non-competitive to Competitive Service: Title Reason Change the lead sentence of this section [3.12.010(b)] to read, All grant-funded positions and the following positions and officers shall not be included in the competitive service. Courier .................................................................... Police Corporal ....................................................... Police Services Technician ..................................... This ensures that the municipal code is clear that any grant-funded position is not in the competitive service, as some grant-funded and some regular positions have the same titles. Move to the competitive service to correct the municipal code. Move to the competitive service to correct the municipal code. Move to the competitive service to correct the municipal code. / Jennifer A. Bower ~/Director of Human Resources Approved: City Manager JAB-07/I 8/02 FSFile Cabinet\City CouncilkBudgetX02Budget-Pers\Updated Muni Code.doc ORDINANCE NO. AN ORDINANCE AMENDING SECTION 3.12.010 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE The City Council of the City of South San Francisco does hereby ordain as follows: SECTION 1. 1. SECTION 3.12.010 IS HEREBY AMENDED AS FOLLOWS: mo SUBDIVISION (a) (1): (1) (2) (3) (4) (5) (6) (7) Delete the position of "Instrumentation Technician." Delete the position of "Lead Maintenance Worker (WQCP)." Delete the position of "Management Assistant." Delete the position of "Personnel Clerk." Add position "Courier." Change "Payroll Coordinator" to "Financial Services Supervisor." Change "Parking Meter Collector- Repairman" to "Parking Meter Collector- Repair Worker." Bo SUBDIVISION (a)(2): (1) Add position "Literary Services Assistant." (2) Add position "Supervising Librarian." (3) Change "Student Tutor Coordinator" to "Literary Services Coordinator." Co SUBDIVISION (a)(3)(a): (1) Add position "Police Corporal." (2) Add position "Police Services Technician." Do SUBDIVISION (a)(3)(B): (1) Add position "Fire Apparatus Engineer." SUBDIVISION (a)(4) (1) (2) (3) (4) Delete the position of "Capital Project Coordinator." Delete the position of "Garage Supervisor." Delete the position of "Maintenance Supervisor- water quality control." Delete the position of "Solid Waste Coordinator." SUBDIVISION (a)(5): (2) (3) (4) Delete the position of "Assistant Mechanic/Machinist-WQC." Delete the position of "Operations Supervisor-WQC." Delete the position of "Public Works Supervisor." Change "Assistant Plant Superintendent-WQCP" to "Assistant Plant Superintendent." SUBDIVISION (a)(6): (1) Delete the position of "Adult Day Care Coordinator." (2) Delete the position of "Building Maintenance Supervisor." (3) Change "Pre school Coordinator" to "Recreation and Community Services Coordinator." Ho SUBDIVISION (a)(7): (2) (3) (4) (5) (6) (7) (8) (9) Delete the position of "Instrument Technician." Delete the position of "Mechanic's Helper." Delete the position of "Telecommunications Specialist." Change "Laboratory Chemist-WQC" to "Laboratory Chemist." Change "Laboratory Supervisor-WQC" to "Laboratory Supervisor." Change "Maintenance Worker- Parks" to "Park Maintenance Worker." Change "Maintenance Worker- Public Works" to "Public Works Maintenance Worker." Change "Operator I, WQC" to "Plant Operator I." Change "Operator II, WQC" to "Plant Operator II." Change "Utility Worker, WQC" to "Plant Utility Worker." I. SUBDIVISION (b) Change the lead sentence of this section to read: "All the grant-funded positions and the following positions and officers shall not be included in the competitive service. SUBDIVISION (b) (1) Delete the position (2) Delete the position (3) Delete the position (4) Delete the position (5) Delete the position (6) Delete the position (7) Delete the position (8) Delete the position (9) Delete the position (10) Delete the position (1 l) Delete the position of "Assistant City Attorney." of "Associate Engineer- grant funded." of "City Attorney." of "Construction Inspector- grant-funded." of "Courier." of "Deputy City Attorney." of "Director of WQCP." of "Economic Development Coordinator." of "Management Analyst I/II." of "Police Corporal." of "Police service technician." (12) (13) (14) Change "Chief Planner" to "City Planner." Change "Manager Housing and Community Development" to Manager of Housing and Redevelopment." Delete the position of "Typist Clerk - grant funded." SECTION 2. SEVERABILITY In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. SECTION 3. PUBLICATION AND EFFECTIVE DATE This Ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the San Mateo Times, a newspaper of general circulation in the City of South San Francisco, as required by law, and shall become effective thirty (30) days from and after its adoption. Introduced at a regular meeting of the City Council of the City of South San Francisco, held the __ day of ,2002. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the __ day of ,2002 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: City Clerk As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this __ day of ,2002. Mayor { Staff Report DATE: TO: FROM: SUBJECT: July 24, 2002 The Honorable Mayor and City Council Director of Public Works Police Department Dispatch Center Lighting Upgrade Project Engineering File PB-01-3, Project No. 51-13232-0113, Bid No. 2313 RECOMMENDATION: It is recommended that the City Council, by motion, accept the Police Department Dispatch Center Lighting Upgrade Project as complete in accordance with the plans and specifications. BACKGROUND/DISCUSSION: This project replaced the old light fixtures with new light fixtures and added dimmer switches. The project has been inspected by City staff and is completed in accordance with the plans and specifications. Acceptance of the project will provide authorization for staff to file a Notice of Completion and to release the payment performance bond and ten percent retention at the end of the thirty-day lien period. FUNDING: The construction was completed at a cost of $9,532.00 ($9,565.00 bid items and minus $33.00 for one change order). The Change Order covered costs involving the deletion of one bid item, changing the type of dimmer switches, and adding two new circuit breakers. Construction costs are budgeted in the 2001-2002 Capital Improvement Program (CIP). Dir6ctor of Public Works Michael A. Wilson City Manager RTH/JG/ed