San Francisco Redevelopment Agency


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105-2.09-002                                                                              Agenda Item No.  3 (a & b)

                                                                                                 Meeting of February 17, 2009

 

 

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell, Executive Director

 

SUBJECT:     Authorizing a Letter Agreement with the Mayor's Office of Community Investment for a Term of 18 Months, from February 19, 2009 to August 18, 2010, for the Development of an Inter-agency Information Management System, in an amount not to exceed $525,000 to be paid by the Mayor's Office of Community Investment

 

Authorizing a Personal Services Contract with the Board of Trustees of the Glide Foundation, a California nonprofit public benefit corporation, to provide consulting and software development services for an inter-agency Information Management System in an amount not to exceed $525,000, for a term of 18 months, from February 19, 2009 to August 18, 2010

 

EXECUTIVE SUMMARY

 

The San Francisco Redevelopment Agency (the “Agency”) is exploring technology solutions that will reduce the paper burden, expedite the approval process of documents that are subject to review, and improve the accessibility of information within the Agency.  These solutions will ultimately improve the management of information, data, and reports both within the Agency and with outside parties.

 

The Agency is seeking to work with the Mayor’s Office of Community Investment (“MOCI”), who in collaboration with the Mayor’s Office of Housing (“MOH”) developed a software solution, Total Grants Solution (“TGS”), to automate its grant administration process. Many elements of this software program are applicable to the needs of the Agency. MOCI has been willing to share its current system as well as its lessons learned from implementing their solution. This collaboration will leverage what MOCI/MOH has already invested to embark on a better coordinated effort for the Agency’s Information Management System.

 

In preparation for the collaboration with MOCI, the Agency has issued a Request for Proposals for consulting and software services related to the Agency’s need to develop an implementation strategy for an Agency-wide Information Management System and MOCI’s need to expand features of its existing TGS. After review of two proposals, staff recommends to enter into a Personal Services Contract with The Board of Trustees of the Glide Foundation (“Glide Foundation”). The Agency acknowledge that Glide Foundation will subcontract the scope of work to Loomit Community Technologies, dba Tekmeca (“Tekmeca”)

 

Staff recommends authorizing a Letter Agreement with MOCI to address Information Management issues in both agencies and authorizing a Personal Services Contract with Glide Foundation to provide consulting and software development services as outlined in the Letter Agreement.

 

BACKGROUND

 

The Agency processes extensive amounts of data and information on a daily basis. It is important for the Agency to be able to access specific data quickly in order to provide information to internal and external stakeholders such as staff members, the Agency Commission, or members of the public. The Agency’s current system of storing information in electronic files of individual staff members or in paper format does not always accommodate the ability to access information or generate reports as efficiently as possible. The Agency recognizes information management and technology as key catalysts for optimizing the way it provides information and services. In addition, to this large amount of data and information, contracts and other agreements must go through many levels of review prior to execution.  This process relies heavily on staff and at times, causes avoidable delays and errors.

 

The Agency has started to invest in technology solutions to improve the way it manages information. In FY 2005-2006, the Agency introduced an Electronic Document Management and Imaging System to replace the Microfiche System used by Central Records. In September 2008, the Agency purchased Elations, a web-based Labor Compliance System which provides “real-time” workforce reports, thus allowing for timely responses to labor standards or certified payroll issues on construction sites. As a next step, the Agency plans to start an Agency-wide effort to improve information management.

 

Re-engineering an information management system is a long-term project that involves:

  • Developing an organizational strategy and priorities with the Agency’s executives to provide a directional framework for the information technology strategic plan
  • Conducting a detailed study and documentation of the current business processes to advise the management team on efficiency and workflow improvement areas
  • Designing and prototyping Agency-wide information architectural plan
  • Creating a technology framework that includes technical requirements for acquisition, development specifications and overall policies around information
  • Developing a staff professional development plan that includes training of staff in new technology and processes and building the capacity of a technology team for future maintenance and support
  • Implementing the technology architectural plan and providing periodic review and feedback to improve the strategy

 

The Agency will start with an assessment of its document workflow. The Agency has many processes for the approval of contracts, agreements (i.e., Exclusive Negotiations, Land Development, Development and Disposition, etc.) as well as many financing documents.  All these processes include approval from up to seven divisions within the Agency and generate large amounts of paper documentation.  Frequently information needs to be shared between and amongst departments.  Currently these processes and documentation rely heavily on specific individuals to obtain final approval. Documents are hand delivered and the approval of a document that needs to be reviewed by up to seven different individuals can take several days or weeks. In order to more effectively and efficiently manage all these processes along with its related documents, the Agency would like to evaluate the benefits of an Agency-wide electronic workflow and documents management system.

 

Such a new system has the potential to considerably reduce inefficiencies by enabling staff to work and collaborate in a more efficient fashion.  In addition, it will also reduce the paper burden for the Agency and thus reduce offsite storage expenses related to the retention of paper files and allow the Agency to become more environmentally friendly.  A new system will also likely increase staff productivity as well.

 

INTER-AGENCY COLLABORATION WITH MOCI

 

The Agency seeks to rely on the expertise of an experienced partner to examine the Agency’s processes and develop recommendations for the implementation of an Information Management System with an initial focus on Electronic Workflow and Document Management.

 

Approximately three years ago, MOCI, in cooperation with MOH, started the process to utilize technology to support its information management needs. MOCI successfully implemented Total Grants Solution, a software program that automates its grant administration process.  This award winning technology not only enables staff to collaborate internally, but also allows outside grantee organizations to submit information electronically. The new streamlined and electronically supported process allowed MOCI to reduce staff time spent on administering documents thus allowing for staff to spend more time “on the ground”, working with community organizations. For example, MOCI took over the Juvenile Criminal Justice Program and cut down the administration time from 4 FTE to 2.4 FTE.

 

The Agency is seeking to collaborate with MOCI to use what it has learned and thus reduce the time it will take the Agency to implement its own information management system.  Additionally, MOCI is currently managing a number of grants funded by the Redevelopment Agency. MOCI has been willing to share its current system as well as lessons learned with the Agency. Thus the Agency wishes to enter into a Letter Agreement with MOCI to address Information Management issues in both agencies.

 

This inter-agency collaboration will leverage what MOCI has already invested to embark on a better coordinated effort on Information Management Systems and address information management needs of both Agencies. MOCI seeks to expand TGS to include additional communicative portals with MOCI and its grantees’ portals.  It will also expand its public search features to include a comprehensive search mechanism for the public to access all of the grants and contracts along with the related services that were funded.  Prior to their implementation of TGS, MOCI completed a workflow assessment.  MOCI has agreed to leverage their expanded initiatives to benefit the Redevelopment Agency and accordingly, the initial assessment will be at no cost for the Agency.  The Agency will be able to work with a contractor to replicate the workflow process assessment that was previously completed for MOCI to capture an accurate reflection on the Agency’s process.  The assessment will serve as a map to automate Agency processes.

 

The assessment of the Agency’s document workflow and processes will put the Agency in a position to make crucial decisions on how to implement an Information Management System and eventually take advantage of MOCI’s existing system. Joint use of an Information Management System will allow benefitting from synergies between the agencies and will minimize future financial investments for each agency. MOCI will provide financing for the entire project in an amount not to exceed $525,000.  The initial assessment will have no net impact on the Agency’s budget since MOCI will pay for the entire contract.  Notwithstanding, pursuant to the Letter Agreement, the Agency will provide initial payments to contractor with the understanding that MOCI will provide full reimbursement on a monthly basis to the Agency.

 

SELECTION OF CONTRACTOR

 

In preparation for a collaboration with MOCI, the Agency issued a Request for Proposals (“RFP”) for consulting and software development services in regards to the Agency’s need to develop an implementation strategy for an Agency-wide Information Management System and MOCI’s need to expand features of TGS. The Agency received proposals from two (2) consultants, @doc, LLC and Tekmeca under the fiscal sponsorship of the Glide Foundation.  A selection panel consisting of MOCI and Agency staff convened to review and score the proposals and determined that Glide Foundation was more responsive to the RFP.  In addition, Agency contract compliance division has confirmed that the proposal complies with Agency contracting requirements and policies.  Agency staff, therefore, recommends to enter into a Personal Service Contract with the Glide Foundation to provide consulting and software development services as outlined in the Letter Agreement including 1) recommending an implementation strategy for an Agency wide Electronic Document Management System and 2) expanding features of MOCI's existing electronic grant management solution.

 

The Agency took the lead in this RFP in order to ensure that the selected contractor and work product can fully address the Agency’s complex business models. The Agency believes that conducting a workflow assessment is a necessary foundation to a long term strategic planning effort to implement an automated workflow system. 

 

CALIFORNIA ENVIRONMENTAL QUALITY ACT

 

The Letter Agreement with MOCI and the Personal Services Contract with Glide Memorial Church Foundation facilitate implementation of an inter-agency Information Management System and are administrative activities of the Agency and are not Projects as defined by California Environmental Quality Act (“CEQA”) Guidelines Section 15378(b)(5).  The proposed actions will not independently result in a physical change in the environment and are not subject to environmental review under CEQA.

 

Originated by

Stephen Maduli-Williams, Deputy Executive Director, Community & Economic Development

 

 

 

Fred Blackwell

Executive Director


 

 

RESOLUTION NO. 12-2009

 

 

 

Authorizing a Letter Agreement with the Mayor's Office of Community Investment for a term of

18 months, FROM FEBRUARY 19, 2009 TO AUGUST 18, 2010,

for THE DEVELOPMENT OF an inter-agency Information Management System, in an amount

not to exceed $525,000 to be paid BY the

Mayor's Office of Community Investment

 

 

BASIS FOR RESOLUTION

 

  1.   These solutions will ultimately improve the management of information, data, and reports both within the Agency and with outside parties.

 

  1.   In Fiscal Year 2005-2006, the Agency introduced an Electronic Document Management and Imaging System to replace the Microfiche System used by Central Records.  In September 2008, the Agency purchased Elations, a web-based Labor Compliance System which provides “real-time” workforce reports, thus allowing for timely responses to labor standards or certified payroll issues on construction sites.  As a next step, the Agency plans to start an Agency-wide effort to improve information management.

 

  1.   The new streamlined and electronically supported process allowed MOCI to reduce staff time spent on administering documents thus allowing for staff to spend more time “on the ground”, working with community organizations.  Many elements of the TGS program are applicable to the needs of the Agency.  MOCI is willing to share its current system as well as its lessons learned from implementing its solution.

 

  1. MOCI will provide full reimbursement to the Agency on a monthly basis.

 

  1. The proposed Letter Agreement is an administrative activity of the Agency that is not a Project as defined by the California Environmental Quality Act Guidelines Section 15378(b)(5), and would not result in any physical change in the environment.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to enter into a Letter Agreement with the Mayor’s Office of Community Investment for a term of 18 months, from February 19, 2009 to August 18, 2010, for the development of an inter-agency information management system in an amount not to exceed $525,000, substantially in the form lodged with the Agency General Counsel.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel


 

 

RESOLUTION NO. 13-2009

 

 

 

Authorizing a Personal Services Contract with

The Board of Trustees of thE Glide Foundation,

a California nonprofit public benefit corporation, to provide consulting and software development SERVICES FOR AN INTER-AGENCY INFORMATION MANAGEMENT SYSTEM in an Amount not to exceed $525,000, for a term of 18 months, FROM

FEBRUARY 19, 2009 TO AUGUST 18, 2010

 

 

BASIS FOR RESOLUTION

 

  1. The Redevelopment Agency of the City and County of San Francisco (“Agency”) is exploring technology solutions that will reduce the paper burden, expedite the approval process of documents that are subject to review, and improve the accessibility of information in the Agency.
  2. Through a proposed letter agreement (“Letter Agreement”) with the Mayor’s Office of Community Investment (“MOCI”), the Agency would share in the development of a software solution, Total Grants Solution (“TGS”), which MOCI would use to automate its grant administration process.  Many elements of this software program are applicable to the needs of the Agency.  This collaboration will leverage what MOCI/Mayor’s Office of Housing has already invested to embark on a better-coordinated effort for the Agency’s Information Management System.
  3. Concurrent with the Letter Agreement, Agency staff proposes entering into a Personal Services Contract (“Contract”) with the Board of Trustees of the Glide Foundation (“Glide Foundation”) to provide consulting and software development services necessary to implement the information management system.
  4. The Agency acknowledges that Glide Foundation will subcontract the scope of work to Loomit Community Technologies, a California corporation, doing business as Tekmeca (“Tekmeca”).
  5. Working in collaboration with MOCI, Agency staff issued a Request for Proposals (“RFP”) in December 2008 for consulting and software development services for the Agency’s Information Management System and MOCI’s need to expand features of TGS.  Staff received proposals from two consultants.
  6. A selection panel consisting of MOCI and Agency staff convened to review and score the proposals and determined that Glide Foundation in cooperation with Tekmeca was more responsive to the RFP.  The selection was based on their ability to address both the needs of the Agency and MOCI, its experience, and the proposed budget.
  7. Services provided under this Contract will include conducting an Agency-wide study of current processes to provide the basis to understand and improve efficiency and workflow of Agency processes and developing an information technology implementation plan.
  8. Furthermore, services include design, development and implementation of an extended technology layer to TGS that will allow an integration method to assist MOCI grantees with transmission of required performance data through an open source technology platform.
  9. Glide Foundation has agreed to perform these services in an amount not to exceed $525,000 over a 18-month period.  Funding for this Contract will come from MOCI pursuant to the Letter Agreement.
  10. The proposed Contract with Glide Foundation is an administrative activity of the Agency that is not a Project as defined by the California Environmental Quality Act Guidelines Section 15378(b)(5), and would not result in any physical change in the environment.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to execute a Personal Services Contract with the Board of Trustees of the Glide Foundation, a California nonprofit public benefit corporation, to provide consulting and software development services for an inter-agency information management system in an amount not to exceed $525,000, for a term of 18 months, from February 19, 2009 to August 18, 2010, substantially in the form lodged with the Agency General Counsel.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel

 

129-0109-002                                                                                      Agenda Item No.  4 ( a )

                                                                                                   Meeting of February 17, 2009

 

 

MEMORANDUM

 

 

TO:                  Agency Commissioners

 

FROM:            Fred Blackwell, Executive Director

 

SUBJECT:      Authorizing a three-year Personal Services Contract with MJM Management Group, a California corporation, in an amount not to exceed $525,000 for steam cleaning, power washing, tree maintenance, litter and graffiti control services and consulting services on a future community benefit district for the Sixth Street corridor; South of Market Redevelopment Project Area  

 

 

EXECUTIVE SUMMARY

 

Since 2002, the Agency has provided steam cleaning, power washing, tree maintenance and litter and graffiti control services (the “Sixth Street Improvement Program”) for the Sixth Street corridor in the South of Market Redevelopment Project Area (the “Project Area”) in order to maintain the Agency-funded public improvements, improve the quality of life for residents and improve the environment for new and existing businesses in the area.  On October 22, 2008, the Agency issued a Request for Proposals (“RFP”) seeking a contractor to provide the services for the Sixth Street Improvement Program as well as additional consulting on a future community benefit district (“CBD”) for the Project Area.  On November 21, 2008, the Agency received two timely and responsive proposals, including one from MJM Management Group (“MJM”).  An evaluation panel composed of Agency staff and a representative from the South of Market Project Area Committee (the “PAC”) reviewed the proposals, conducted interviews, completed reference calls and evaluated the submittals in accordance with the selection criteria in the RFP.  The evaluation panel recommended that MJM Management Group (“MJM”) be selected based on its proposal and the quality of its work to date on Sixth Street.  The PAC’s Health, Safety and Human Services Subcommittee voted to approve the evaluation panel’s recommendation at its meeting on February 3, 2009.

 

Staff recommends approval of a three-year Personal Services Contract with MJM Management Group  in an amount not to exceed $525,000 for steam cleaning, power washing, tree maintenance, litter and graffiti control services and consulting on a future community benefit district for the Sixth Street corridor.

 

DISCUSSION

Background

The Sixth Street Improvement Program is being funded by the Agency as part of its South of Market Redevelopment Project.  The purpose of this program is to maintain the Agency-funded public improvements, improve the quality of life for residents and improve the environment for new and existing businesses on Sixth Street and adjacent streets within 100 feet on each side of Sixth Street.  The program, first implemented in 2002, has had a positive impact on Sixth Street, as evidenced by the new businesses that have opened and the general cleanliness of the street.

In June 2005, Agency staff prepared and issued an RFP for the Sixth Street Improvement Program, as required by the Agency’s Purchasing Policy.  In August 2005, the Commission approved a three-year personal services contract with MJM in an amount not to exceed $450,000.  The contract term was extended by six months and the contract amount increased by $75,000 in August 2008 while Agency staff prepared a new RFP.  The current contract with MJM expires on March 1, 2009.

 

The cleaning services provided by MJM have created improved conditions on Sixth Street.  These services include steam cleaning twice a month, power washing twice a month, litter removal seven days a week, graffiti removal four days a week, and tree maintenance for the palm trees and ornamental pear trees installed by the Agency during the last several years.  Since the program began in 2002, residents, business owners, and the PAC have expressed an appreciation for the improved appearance of Sixth Street.

 

In addition to improving the condition of Sixth Street, this Sixth Street Improvement Program has also provided employment for residents along Sixth Street and in the larger South of Market area.  MJM has an excellent track record of working with public and private agencies.  MJM has made efforts to become a partner in the neighborhood and has worked closely with new and existing businesses on Sixth Street.

Future Community Benefit District

 

Agency staff projects that the Project Area will have reached its debt capacity limit within five years based on current and future program commitments.  With a limited amount of funds remaining, Agency staff and the PAC have started planning for the continued funding of certain programs through mechanisms other than tax increment.  For the services provided by the Sixth Street Improvement Program, an ideal mechanism is a CBD.  There are already several CBD’s in San Francisco, including the recently-formed Mid-Market CBD, which is immediately adjacent to the Project Area.  One option that has been discussed is the possibility of adding Sixth Street to the Mid-Market CBD area.  In order to assist Agency staff with these discussions and other planning issues related to a future CBD, Agency staff decided to include additional consulting services in the next contract for the Sixth Street Improvement Program.

RFP Process

 

Prior to issuance, Agency staff presented the draft RFP to the PAC’s Executive Subcommittee at its October 13, 2008, meeting and at the PAC’s general meeting on October 20, 2008.  Staff provided a draft RFP to the Commission for its review on October 21, 2008.  Staff issued the RFP on October 22, 2008, with a submittal date of November 21, 2008.  The RFP sought organizations with a history of providing power washing, tree maintenance, and litter and graffiti control services and experience with CBDs.  The RFP was widely advertised through various community newspapers, The Chinese Times, the Philippine Times, the San Francisco Chronicle and Examiner, the Agency’s website and on the City’s Contracts, Bids and Opportunities website.

Selection

 

On November 21, 2008, the Agency received two timely and responsive proposals, including one from MJM Management Group.  An evaluation panel composed of Agency staff and a representative from the PAC reviewed the proposals, conducted interviews, completed reference calls and evaluated the submittals in accordance with the selection criteria in the RFP.  The evaluation panel recommended that MJM be selected based on its qualifications and experience in administering the Sixth Street Improvement Program since 2002.  The PAC’s Health, Safety and Human Services Subcommittee voted to approve the evaluation panel’s recommendation at its meeting on February 3, 2009.

Proposed Scope of Work and Budget

 

The scope of work for the proposed Personal Services Contract is included in Attachment A.  The annual budget for the contract is included in Attachment B.  The first four months of the new three-year contract will be funded with existing funds in the Fiscal Year 2008-2009 budget.  The budget for the remainder of the three-year contract will be funded through the Agency’s annual budget approval process and is subject to the availability of funds.

California Environmental Quality Act

 

Provision of steam cleaning, power washing, tree maintenance, litter and graffiti control services under the proposed Personal Services Contract would not result in any significant adverse change in the physical environment and is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3).  Provision of consulting services on a future community benefit district under the proposed Contract is a planning and feasibility activity that is statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262.  Approval of the Contract would not lead to any significant physical effects on the environment.

 

 

Originated by Michael J. Grisso, Project Manager

 

 

Fred Blackwell

Executive Director

 

Attachment A:                        Scope of Services

Attachment B:                        Budget


 

 

ATTACHMENT A

SCOPE OF SERVICES

 

 

Contractor will perform the following services:

 

  1. Steam Cleaning Services:

High-pressured steam cleaning twice a month on Sixth Street and adjacent streets within the project area.  Contractor will provide a calendar of our steam cleaning schedule to the merchants along Sixth Street, SOMPAC and SFRA.

 

  1. Sidewalk Cleaning Services:

Power washing, high-pressured cold water cleaning weekly and spot cleaning services as needed.  These services are approximately 16 hours per week.

 

  1. Graffiti Abatement:

Graffiti removal on tags up to 10’ above ground will be documented and removed.  Maintenance crew will spend an average of 1.5 hours/day removing graffiti seven days/week.  The crew will wipe down the street furniture and remove stickers as part of their regular maintenance route.  For larger tags a painting crew will match the paint and paint out the graffiti.  Contractor will work with SFPD’s Graffiti Abatement Unit as needed to try to reduce overall graffiti.

 

  1. Sidewalk Litter Removal Services

Sidewalk sweeping will be provided for 8 hours/day, 7 days/week within the project area.  Litter removal will include litter in the public rights of way, bulky items and general debris.

 

  1. Tree Maintenance Services

All trees within the project area will be maintained weekly including watering, pruning, staking and cleaning of tree wells.  Trees will be re-staked and the bases will be maintained as needed.  Arborists will check the trees regularly for their overall condition.  A tree report will be provided monthly as part of the monthly report.

 

  1. Job Creation and Retention

When there is a job opening, Contractor will give first consideration to South of Market residents.  Contractor will continue to work with the South of Market Employment Center, Workforce Solutions (One Stop) with EDD and other South of Market community-based organizations.  SF Clean City Coalition will continue to provide welfare to work employment services including training on professional behavior, responsibility for individual work and taking pride in the neighborhood.

 

 

 

  1. Management and Administrative Services

MJM Management will provide overall property management and administrative support services including payroll services for the contract and subcontract with SF Clean City Coalition.  An Operations Manager will check the area on a daily basis.  A monthly report will be provided to SFRA.  MJM Management staff experienced in forming community benefit districts will be available to assist in the process of forming such a district or joining an existing district to secure the funding of the maintenance and other possible services.  As part of this Contract, MJM Management staff will be available to attend meetings with SFRA and SOMPAC to discuss future plans for a CBD in the project area.


 

ATTACHMENT B

BUDGET

 

 

The annual budget for the term of the Contract shall be as follows:

 

 

Steam Cleaning Services

Labor (Payroll, Hiring, Training, etc.)                                                $25,900

Supplies/Equipment/Other                                                                 $11,100

Total Steam Cleaning                                                                      $37,000

 

Sidewalk Cleaning Services

Labor (Payroll, Hiring, Training, etc.)                                                $23,290

Supplies/Equipment/Other                                                                   $4,110

Total Sidewalk Cleaning                                                                 $27,400

 

Litter Removal

Labor (Payroll, Hiring, Training, etc.)                                                $65,520

Supplies/Equipment/Other                                                                   $7,280

Total Litter Removal                                                                       $72,800

 

Tree Maintenance

Labor (Payroll, Hiring, Training, etc.)                                                $18,900

Supplies/Equipment/Other                                                                   $2,100

Total Tree Maintenance                                                                  $21,000

 

Graffiti Abatement

Labor (Payroll, Hiring, Training, etc.)                                                $14,742

Supplies/Equipment/Other                                                                   $1,638

Total Graffiti Abatement                                                                $16,380

 

 

Total Annual Budget                                                                     $174,580

 


 

 

 

 

 

RESOLUTION NO. 16-2009

 

 

 

Authorizing a three-year Personal Services Contract with MJM Management Group, a California corporation, in an amount not to exceed $525,000 for steam cleaning, power washing, tree maintenance, litter and graffiti control services and consulting services on a future community benefit district for the Sixth Street corridor;

South of Market Redevelopment Project Area

 

 

BASIS FOR RESOLUTION

 

  1. Since 2002, the Redevelopment Agency of the City and County of San Francisco (the “Agency”) has provided steam cleaning, power washing, tree maintenance and litter and graffiti control services (the “Sixth Street Improvement Program”) for the Sixth Street corridor in the South of Market Redevelopment Project Area (the “Project Area”) in order to maintain the Agency-funded public improvements, improve the quality of life for residents, and improve the environment for new and existing businesses in the area.

 

2.         On October 22, 2008, the Agency issued a Request for Proposals (“RFP”) seeking a contractor to provide the services for the Sixth Street Improvement Program as well as additional consulting services on a future community benefit district for the Project Area.

 

3.         On November 21, 2008, the Agency received two timely and responsive proposals, including one from MJM Management Group (the “Contractor”).  An evaluation panel comprised of Agency staff and a representative from the South of Market Project Area Committee reviewed the proposals, conducted interviews, completed reference checks, and evaluated the submittals in accordance with the selection criteria in the RFP.

 

  1. Based on the evaluation panel’s recommendation, Agency staff has determined that the Contractor is highly qualified to provide the services for the Sixth Street Improvement Program.

 

5.         Provision of steam cleaning, power washing, tree maintenance, and litter and graffiti control services under the proposed personal services contract (the “Contract”) would not result in any significant adverse change in the physical environment and is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3).  Provision of consulting services on a future community benefit district under the proposed Contract is a planning and feasibility activity that is statutorily exempt from CEQA pursuant to CEQA Guidelines Section 15262.  Approval of the Contract would not lead to any significant physical effects on the environment.

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to execute a three-year Personal Services Contract with MJM Management Group, a California corporation, in an amount not to exceed $525,000 for steam cleaning, power washing, tree maintenance, litter and graffiti control services and consulting services on a future community benefit district for the Sixth Street corridor, substantially in the form lodged with the Agency General Counsel.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel

 

 

118-08409-002                                                                                          Agenda Item No. 4 ( b )

                                                                                                         Meeting of February 17, 2009

 

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell, Executive Director

 

SUBJECT:    Authorizing a Designation Agreement with the City and County of San Francisco for the purpose of administering BEGIN Grants from the State of California to Provide Down Payment Assistant for Low- and Moderate-Income First-Time Homebuyers in amounts not to exceed $3,720,000, $960,000, and $3,930,000, Respectively at 5600 Third Street, Bayview Hunters Point Redevelopment Project Area; 1345 Turk Street, Citywide Housing; and 330 Berry Street and 335 Berry Street; Mission Bay North Redevelopment Project Area

 

DISCUSSION

 

The Building Equity and Growth in Neighborhoods (“BEGIN”) Program of the State of California Department of Housing and Community Development (“HCD”) provides down payment assistance grants to public agencies to promote home ownership through local regulatory relief and development incentives. The Mayor’s Office of Housing (“MOH”) successfully applied for BEGIN funds for four projects on behalf of the Redevelopment Agency.  These Agency projects are located at4800 Third Street, and  5600 Third Street in the Bayview Hunters Point Redevelopment Project Area; 1345 Turk Street in the former Western Addition Redevelopment Project Area A-2; and 330 Berry Street and 335 Berry Street in the Mission Bay North Redevelopment Project Area.

 

Staff had previously informed the Commission of the intent to apply for and administer the BEGIN funds for these Agency ownership developments.  In accordance with BEGIN regulations, MOH is the designated contractual entity for administering the BEGIN program in the City and County of San Francisco.  Since these BEGIN funds are assisting home buyers at Agency projects, the Agency, rather than MOH, will administer the funds directly.  At the time of application for the funds, the Board of Supervisors authorized the director of MOH to enter into an agreement with the Agency, which would assign the BEGIN funds administrative duties to the Agency.  Since the Agency expects to start utilizing the BEGIN funds starting in April 2009, Agency staff is now seeking Commission authorization to enter into a  Designation Agreement (the “Agreement”) between  the City and County of San Francisco to administer BEGIN grants which have been awarded to the  Agency projects.  The Commission previously authorized the execution of such an agreement for the 4800 Third Street project.

 

The BEGIN Program is designed to promote partnerships between localities and housing developers to reduce the cost, and increase the supply, of new homeownership opportunities for low- and moderate-income households.   BEGIN grants will provide up to $30,000 per dwelling unit in down payment assistance in the form of soft (silent) second financing to low- and moderate-income households whose incomes shall not exceed 120% of the county median income adjusted for family size as defined in BEGIN Program Guidelines.  Interest will be deferred pursuant to BEGIN guidelines and may be forgiven if the property is transferred to an eligible buyer.  The BEGIN funds can be assumed by the subsequent purchasers of each home, assuming they are income and program eligible.  The Agency will be responsible for maintaining a reuse account to ensure that all loan repayments and any interest are utilized to assist low- and moderate-income home buyers at the same developments that the original funds supported.  The Agency will also enter into a 20-year monitoring agreement with HCD, during which time the Agency will prepare and provide annual reports to the state.  The proposed term of the Agreement with MOH is 20 years, to coincide with the HCD monitoring period.  It is contemplated that the Agreement will be renewed subject to the approval of both parties.

 

Use of the BEGIN grant funds to provide down payment assistance to first-time homebuyers would not result in any significant adverse change in the physical environment and is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3).

 

 

Staff recommends authorization of a Designation Agreement with the City and County of San Francisco for the purpose of administering BEGIN Grants from the State of California to benefit low- and moderate-income first-time homebuyers

 

 

Originated by Michele Davis, Development Specialist

and David Sobel, Senior Development Specialist

 

 

 

 

 

Fred Blackwell

Executive Director

 

 


 

RESOLUTION NO. 17-2009

 

AUTHORIZING A DESIGNATION AGREEMENT WITH THE CITY AND COUNTY OF SAN FRANCISCO FOR THE PURPOSE OF ADMINISTERING BEGIN GRANTS FROM THE STATE OF CALIFORNIA TO PROVIDE

DOWN PAYMENT ASSISTANCE FOR LOW- AND MODERATE-INCOME

FIRST-TIME HOMEBUYERS IN AMOUNTS NOT TO EXCEED $3,720,000, $960,000 AND $3,930,000, RESPECTIVELY AT 5600 THIRD STREET,

BAYVIEW HUNTERS POINT REDEVELOPMENT PROJECT AREA;

1345 TURK STREET, CITYWIDE HOUSING; AND 330 BERRY STREET

AND 335 BERRY STREET; MISSION BAY NORTH REDEVELOPMENT PROJECT AREA

 

 

BASIS FOR RESOLUTION

 

  1. In furtherance of the objectives of the California Community Redevelopment Law (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City and County of San Francisco (the "Agency") undertakes programs for the reconstruction and rehabilitation of slums and blighted areas in the City and County of San Francisco (the "City").

 

  1. BRIDGE Tower, L.L.C., a California limited liability corporation, was selected by the Commission on February 20, 2007 pursuant to Resolution No. 10-2007 for the development of 124 low- and moderate-income first-time ownership units at 5600 Third Street.

 

  1. Michael Simmons Property Development Inc., a California corporation, was selected by the Commission on April 17, 2007 pursuant to Resolution No. 30-2007 to develop 32 units of low- and moderate-income first-time ownership units at 1345 Turk Street.

 

  1. Berry Street, LLC, a California limited liability company (an affiliate and assignee of BRIDGE Regional Partners, Inc.), was selected by the Commission on July 19, 2005 pursuant to Resolution No. 113-2005 to develop 131 units of low- and moderate-income first-time ownership units at 330 and 335 Berry Street.

 

  1. These three developments located at 5600 Third Street, 1345 Turk Street, and 330 and 335 Berry Street (the “Projects”) each applied for and received grants from the State of California's Building Equity and Growth in Neighborhoods ("BEGIN") Program.

 

  1. The feasibility of the Projects is dependent on these grants for down payment assistance to the homebuyers that have been notified of grant awards under the BEGIN Program in the respective amounts of $3,720,000, $960,000, and $3,930,000.

 

  1. The Mayor's Office of Housing ("MOH") is the only applicant in the City that is eligible to receive BEGIN grants.

 

  1. MOH applied for and have received notification of BEGIN grants in the amounts of $3,720,000, $960,000, and $3,930,000 for the Projects.

 

  1. MOH's submission of the grant application was conditioned on the Agency agreeing to enter into a designation agreement (the “Designation Agreement”) with the City to make the Agency the responsible party for administering the BEGIN grants.

 

  1. Commission authorization is now required for the Agency to enter into a Designation Agreement with the City to make the Agency the responsible party for administering the BEGIN grants.

 

  1. Use of the BEGIN grant funds to provide down payment assistance to first-time homebuyers would not result in any significant adverse change in the physical environment and is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3).

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to enter into a Designation Agreement with the City and County of San Francisco to administer BEGIN grants to provide down payment assistance for approximately 124 first-time homebuyers of low- and moderate-income at 5600 Third Street, Bayview Hunters Point Redevelopment Project Area; approximately 32 first-time homebuyers of low- and moderate-income at 1345 Turk Street, Citywide Housing; and 131 first-time homebuyers buyers of low- and moderate-income at 330 and 335 Berry Street, Mission Bay North Redevelopment Project Area; substantially in the form lodged with the Agency General Counsel, as part of the Citywide Tax Increment Housing Program.

 

APPROVED AS TO FORM:

 

_________________________

James B. Morales

Agency General Counsel

 

108-01809-002

Agenda Item No.  4 ( c )

 

Meeting of February 17, 2009

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell,

Executive Director

 

SUBJECT:     Approving a term sheet to convey the Municipal Railway Substation located at 1190 Fillmore Street to the City and County of San Francisco (“City”) and to convey a Certificate for 171,308 units of Transferable Development Rights to the City for the purpose of improving the Substation; former Western Addition Redevelopment Project Area A-2

 

 

EXECUTIVE SUMMARY

 

As requested by the Agency, the Board of Supervisors is currently considering an amendment to the Agency’s fiscal year 2008-09 budget for the former Western Addition Redevelopment Project Area.  The budget amendment will reprogram approximately $3.3 million originally allocated for development of the historic Municipal Railway Substation (“Muni Substation”) into loan funds and other economic development programs in the Fillmore Jazz Preservation District area.  The Board of Supervisors’ budget resolution requires that the Agency adopt a Term Sheet to reconvey the Muni Substation back to the City at no cost, and to replenish the reprogrammed funds through the transfer of 171,308 units of Transferable Development Rights (“TDR’s”) to the City for the purpose of improving the Muni Substation building.  These TDR’s were acquired by the Agency in connection with the issuance of TDR’s for the Rincon Annex Post Office.  The use of the proceeds from the sale of these TDR’s is limited to the rehabilitation and preservation of historic structures.

 

The Board of Supervisors is expected to consider final approval of the budget resolution on February 24, 2009.  The Board resolution requires that the Agency approve the Term Sheet as a condition of the effectiveness of the budget amendment and the distribution of the reallocated funds.

 

Staff recommends approval of a Term Sheet to convey the Muni Substation building to the City and to convey a Certificate of Transferable of Development Rights for 171,308 units of TDR to the City for the purpose of improving the Muni Substation.

 

 

DISCUSSION

 

Muni Substation Parcel

 

In 2003, the Agency acquired property from the City at Turk and Fillmore Streets, within the Western Addition A-2 Project Area, pursuant to an Agreement for the Sale of Real Estate dated May 2, 2003 (“Sale Agreement”).  The 33,043 square foot property consists of 23,926 square feet of land at 1345 Turk Street, and a 6,335 square foot portion improved with the historic landmark 1898 Municipal Railway Substation (the “Muni Substation Parcel”).  The Sale Agreement required the Agency to use the property for “Public Beneficial Uses,” including affordable housing, cultural and community uses.  The 1345 Turk Street portion of the property is now in predevelopment under an Agency Disposition and Development Agreement for the construction of 32 affordable first-time homeownership units. 

 

The Board of Supervisors, through the Agency’s budget process, allocated approximately $3.9 million over several years to assist in the redevelopment of the Muni Substation (excluding acquisition costs shared with the adjacent housing parcel).  The Agency used approximately $600,000 of these funds to maintain the property and to undertake a number of studies, including economic feasibility, seismic retrofit, historic, and hazardous materials studies, to prepare for the reuse of this challenging structure.  In 2007, the Agency issued a Request for Proposals for rehabilitation and reuse of the Muni Substation Parcel.  Although two responses were received it was determined that even with the available Agency funds neither proposal was economically feasible, and no development has proceeded.

 

Western Addition Budget Amendment

 

With the expiration of the Western Addition Redevelopment Plan at the end of 2009, the Agency has chosen to refocus the remaining resources originally allocated for the Muni Substation on other pressing needs in the Fillmore Street Jazz District.  On December 9, 2008 the Commission adopted Resolution 145-2008 requesting that the Board of Supervisors amend the Agency’s budget to allow approximately $3.3 million originally allocated for the Substation to be redirected to loans to four Fillmore Street restaurants, marketing activities for the Jazz District, and related economic development uses.  On December 18, 2008, Supervisor Ross Mirkarimi introduced a resolution at the Board of Supervisors starting the budget amendment process.  The budget amendment will be heard at the Board’s Budget and Finance Committee on February 11, 2009 and is expected to be considered by the full Board for final approval on February 24th. 

 

Pursuant to discussions among Board members, the Mayor’s office, and the Agency’s Executive Director, the Board resolution includes a requirement that the Agency reconvey the Muni Substation Parcel back to the City at no cost, so that the City can continue to pursue its rehabilitation and reuse for the benefit of the Western Addition community. 

 

In order to replenish the funds available to the City to support the rehabilitation of the Muni Substation, the Board budget amendment resolution also requires that the Agency transfer to the City the Certificate for 171,308 units of Transferable Development Rights (“TDR”) which the Agency acquired in 2007.  The Agency’s TDR’s are a portion of the TDR’s related to the landmark Rincon Annex Post Office site at Mission and Spear Streets.  The Agency approved the issuance of TDR’s for this site (Resolution 119-2007, October 16, 2007) under its Revised TDR Policy (Resolution 118-2007, October 16, 2007).  Under City and Agency policies, TDR’s are generally approved by the City’s Zoning Administrator to promote the rehabilitation of landmark and historic buildings which occupy sites with unused development capacity under applicable zoning codes (often referred to as ‘air rights).’  Upon the issuance of TDR’s, the owner of the site may sell these air rights, in the form of TDR Certificates, to generate funds which may be used for preservation of the historic building.  Under the Revised TDR Policy, the Agency may concur in the issuance of TDR’s from a historic building which has already been rehabilitated, such as the Rincon Annex Post Office, so long as the approval results in the rehabilitation of other historic buildings that the Redevelopment Agency owns or that are in or near any redevelopment project area.  To satisfy this requirement, the Rincon Annex owners agreed to give the Agency a Certificate of Transfer for 35% of the TDR’s approved, equal to 171,308 units of TDR.  This Certificate, which will now be transferred to the City, may be sold to developers of downtown sites who seek to increase the buildable floor area of their projects.  The value of TDR’s varies with demand, generally based on the level of new office development in the city.  The value of the TDR Certificate will not be fixed until it is offered for sale by the City, but will likely fall in the range of $2.5 to $5.1 million ($15 to $30 per square foot of TDR).  The City will use these funds to help rehabilitate the Muni Substation.  Staff notes that the Muni Substation will at that time no longer be “owned by the Redevelopment Agency” or “in or near any project area,” but believes that the use of the funds for the Substation reasonably meets the intent of the Revised TDR Policy because it is owned by the Agency at the time of this transaction and because the Western Addition Redevelopment Plan so recently expired.  If there are any remaining funds from the sale of the TDR Certificate after providing for the rehabilitation of the Muni Substation, the City may use them for the preservation and rehabilitation of other historic buildings in accordance with the Agency’s Revised TDR Policy. 

 

Proposed Term Sheet

 

The Board of Supervisors Western Addition budget amendment resolution requires that the Agency Commission approve a Term Sheet for the transfer of the Muni Substation Parcel and the Rincon Annex TDR Certificate to the City as a pre-condition of the effectiveness of the amendment and the release of the funds for the restaurant loans and other uses.  As noted above, the Board is expected to take final action on the budget amendment on February 24, 2009.  Staff has prepared a Term Sheet, in consultation with the Mayor’s Office of Economic and Workforce Development, for Agency consideration.  The Term Sheet, which is attached, includes the following:

 

  1. The Agency will transfer the Muni Substation Parcel (Assessor’s Block 756, portion of Lot 1), consisting of approximately 6,335 square feet of land improved with the historic Municipal Railway Substation, to the City at no cost, together with an easement on the adjacent site to ensure access and egress from the Substation.
  2. The Muni Substation Parcel will be conveyed in “as-is” condition with no remaining liability to the Agency, and after the date of conveyance the City will be responsible for the payment of assessments on the Parcel required by the Fillmore Community Benefits District.
  3. The Agency will provide copies of all studies that have been prepared regarding the Muni Substation Parcel to the City.
  4. The Agency will transfer to the City the Rincon Annex TDR Certificate (Certificate Nos. 3716/023:150001 through 3716/023:321308), for the purpose of using the proceeds from the sale of this Certificate to fund the rehabilitation of the Muni Substation Parcel, along with any adjacent property integrated into the reuse of the Muni Substation, consistent with the standards of Article 10 of the Planning Code (“Preservation of Historic Architectural and Aesthetic Landmarks”).
  5. Any funds remaining from the sale of the TDR’s after providing for the rehabilitation of the Muni Substation Parcel may be used by the City for the preservation of other landmark, significant or contributory historic buildings in compliance with the Agency’s Revised TDR Policy (i.e., which are owned by the Agency or are in or near any redevelopment project area).
  1. On April 15, 2008, the Agency entered into a legal settlement agreement with San Francisco Historic Resource Advocates related to the Rincon Annex TDR’s, which required, among other things, 10 days notice to that group prior to the commitment of proceeds from the sale of the Certificate.  The City agrees to provide such notice as required by the settlement agreement.

 

After the Commission’s approval of the Term Sheet, staff will work with the City to finalize a detailed purchase and sale agreement for the transaction.  The proposed resolution before the Commission approving the Term Sheet authorizes the Executive Director to execute the purchase and sale agreement and other documents necessary to complete the conveyance of the Muni Substation Parcel and the TDR Certificate on terms generally consistent with the approved Term Sheet. Staff expects that the final closing of title on the conveyance will occur within the next six months.

 

California Environmental Quality Act

 

The Agency’s transfer of the Property contemplated by the Term Sheet and the use of TDR’s for the purpose of improving the Muni Substation are categorically exempt pursuant to CEQA Guidelines Section 15061(b)(3).  The Agency’s actions would not independently cause any significant physical change of the environment.  The eventual improvement of the Muni Substation will be subject to environmental review by the City.

 

 

Originated by Amy Neches and Angela Heyward

 

 

 

 

Fred Blackwell

Executive Director

 

 

Att:      1)  Site Map

2)  Term Sheet for Conveyance of Municipal Railway Substation Parcel and Certificate of Transferable Development Rights


 

 

TERM SHEET FOR CONVEYANCE OF MUNICIPAL RAILWAY SUBSTATION PARCEL AND CERTIFICATE OF TRANSFERABLE DEVELOPMENT RIGHTS

February 17, 2009

 

 

1.

Transfer to:

 

City and County of San Francisco (“City”)

 

 

2.

Transfer from:

 

The Redevelopment Agency of the City and County of San Francisco (“Agency”)

 

 

3.

Real Property:

 

Pursuant to a purchase and sale agreement, the Agency will transfer fee title of approximately 6,335 square feet of real property located at 1190 Fillmore Street, San Francisco, known as a portion of Lot 1 within Assessor’s Block 0756, together with the improvements situated thereon known as the Municipal Railway Substation Building (the “Muni Substation Parcel”) to the City at no cost.  This building is a City-designated historical landmark also known as the “Market Street Railway Substation” located at 1190 Fillmore Street.  The Muni Substation is designated as Landmark No. 105 (April 23, 1979) in Appendix A to SF Planning Code at p. 1384.  Furthermore, the Agency will transfer to the City a nonexclusive light and air, ingress and egress easement that is adjacent to the Muni Substation Parcel, located on the Turk Street side of the parcel.  The purchase and sale agreement will terminate and replace the Agreement for Sale of Real Estate between the City and Agency (May 2, 2003) by which the City conveyed the Muni Substation Parcel to the Agency.  Consistent with the prior transfer by the City to the Agency, the Agency shall convey the Muni Substation Parcel to the City “As-Is With All Faults” and the Agency shall have no ongoing liability related to the property as of the date of conveyance.  Also consistent with the prior transfer, it will be the City’s responsibility to obtain a survey and a policy of title insurance, if such are desired by the City.

 

 

4.

Muni Substation Parcel

Use Restrictions & Assessments:

 

The Board of Supervisors approved, per Resolution No. 254-03 (May 2, 2003), the sale of the Muni Substation Parcel and the adjacent 1345 Turk Street property to the Agency for the primary use and development of affordable housing, arts and community uses, and other publicly beneficial uses (collectively the “Public Beneficial Uses”).  As a City-designated landmark, the Muni Substation Parcel is also subject to, among other restrictions, Article 10 of the Planning Code.  The Muni Substation Parcel is within the Fillmore Community Benefits District (“CBD”).  After conveyance of the Muni Substation Parcel, the City will be responsible for payment of CBD assessments.

 

 

5.

Transfer of Rincon Annex TDR Certificate:

 

 

The Agency will convey to the City a Certificate of Transfer of TDR (“Transferable Development Rights”), Case No. 2008.0036N dated January 9, 2008, TDR Number 150001 through 321308 in reference to Lot 23, Assessor’s Block 3716, in the amount of 171,308 units (also known as “Rincon Annex TDR Certificate”) for the purpose of using the proceeds from the sale of this certificate to fund the rehabilitation of the Muni Substation Parcel along with any adjacent property integrated into the reuse of the Muni Substation Parcel, consistent with the standards of Article 10 of the Planning Code.

 

The City’s use of the proceeds from the Rincon Annex TDR Certificate is subject to the Agency’s Revised TDR Policy, which requires the proceeds to be dedicated to the preservation, enhancement or maintenance of landmark, significant or contributory buildings, as defined in Articles 10 and 11 of the Planning Code, that are either:  a) owned by the Agency; or b) are in or near any project area under the jurisdiction of the Agency.

 

The City agrees to use any proceeds from the sale or transfer of the Rincon Annex TDR Certificate for the restoration and rehabilitation of the Muni Substation Parcel along with any adjacent property integrated into the reuse of the Muni Substation Parcel.  Any remaining proceeds shall be used by the City solely for the preservation, enhancement or maintenance of landmark, significant or contributory buildings, in compliance with the Agency’s Revised TDR Policy, as described above, subject to concurrence by the Agency’s Executive Director as to such compliance.

 

 

6.

Settlement Agreement and Release of Claims – Notice & Review Requirements:

 

Per the Settlement Agreement and Release of Claims (“Settlement Agreement”) dated April 15, 2008 between the Agency, the City and San Francisco Historic Resources Advocates, the Agency may receive proceeds from the sale of Rincon Annex TDR Certificate.  The Agency agreed that, at least ten calendar days prior to Agency Commission action authorizing the commitment of any of these proceeds to particular projects, the Agency shall notify, the Petitioners, in writing, of the proposed action and the recommendations of Agency staff.  Accordingly, the City agrees to provide such notice to the Petitioner pursuant to this Settlement Agreement.

 

 

 

 

7.

Muni Substation Studies:

 

The Agency has previously retained consultants to prepare certain studies related to the Muni Substation Parcel.  The Agency will provide these reports and documents to the City for use in its rehabilitation of the Muni Substation Parcel.

 

 

 

 

8.

Closing:

 

The Agency shall convey title of the Muni Substation Parcel to the City, and shall execute a Certificate of Transfer for the Rincon Annex TDR Certificate to the City, upon the following:

 

  1. Execution of a purchase and sale agreement, and satisfaction of any conditions of closing therein.
  2. Recording of a final subdivision map for the Muni Substation Parcel.
  3. Adoption by the Board of Supervisors of any findings required under Section 33433 of the California Health and Safety Code.
  4. Completion of any additional approvals or actions required by the Board of Supervisors.

 

9.

Notices

 

Agency:          The Redevelopment Agency of the City and County of San Francisco  

                       One South Van Ness Avenue, Fifth Floor

                       San Francisco, CA  94103

                       Attention:  Amy Lee

                                         Deputy Executive Director,

                                         Finance and Administration

 

City:                Real Estate Division

                       City and County of San Francisco

                        25 Van Ness Avenue, Suite 400

                        San Francisco, CA  94102

                       

                        Attention:  Amy Brown

                                         Director of Property

 

 

 


 

 

RESOLUTION NO. 18-2009

 

 

 

APPROVING A TERM SHEET TO CONVEY THE MUNICIPAL RAILWAY SUBSTATION LOCATED AT 1190 FILLMORE STREET TO THE CITY AND COUNTY OF SAN FRANCISCO (“CITY”) AND TO CONVEY A CERTIFICATE FOR 171,308 UNITS OF TRANSFERABLE DEVELOPMENT RIGHTS TO THE CITY FOR THE PURPOSE OF IMPROVING THE SUBSTATION; FORMER WESTERN ADDITION REDEVELOPMENT PROJECT AREA A-2

 

 

BASIS FOR RESOLUTION

 

  1. et. seq.

 

  1.   The Property is located within the boundary of the former Western Addition Redevelopment Project Area A-2 (“Western Addition”).

 

  1.   It is a portion of Lot 1 of Assessor’s Block 0756 in Western Addition.

 

  1. The Property consists of two separate, adjoining parcels:

 

a)         The first parcel, 1190 Fillmore Street, consists of 6,335 square feet of land improved by a vacant unreinforced masonry building, which was formerly used as a power station for the City’s electric railway system.  This building is a City-designated historical landmark known as the “Market Street Railway Substation” or “Substation.”  The Substation, which was built in 1898, was designated as City Landmark No. 105 on April 23, 1979 (the “Muni Substation Parcel”).

 

b)         The second parcel, 1345 Turk Street, consists of 26,708 square of land.  This parcel is currently vacant and will be retained by the Agency for the future development of affordable housing.

  1. On October 16, 2007, the Agency Commission adopted Resolution No. 118-2007 approving a “Revised Policy on the Transfer of Development Rights from a property containing a building designated as a landmark, significant building, or contributory building within an underlying C-3 zoning designation located in certain redevelopment project areas,” (the “Revised TDR Policy”), which provides that the Agency may concur in the Zoning Administrator’s Statement of Eligibility for the issuance of TDRs for a historic building which has already been preserved subject to the finding that such approval would promote the preservation, enhancement or maintenance of other landmark, significant or contributory buildings, as defined in Articles 10 and 11 of the San Francisco Planning Code, owned by the Agency or in or near any project area under the jurisdiction of the Agency (the “Revised TDR Policy Standard”).

 

  1. On October 16, 2007, the Agency Commission adopted Resolution No. 119-2007 authorizing the Executive Director to approve a Statement of Eligibility for the Rincon Annex Post Office at 101 Spear Street, pursuant to the Revised TDR Policy, and to enter into an agreement with the owner of such site under which the Agency received a certificate of TDR for 171,308 units of TDR (Certificate Nos. 3716/023:150001 through 3716/023:321308) for the uses under the Revised TDR Policy Standard (the “Rincon Annex TDR Certificate”).

 

  1. On December 9, 2008, the Agency Commission adopted Resolution No. 145-2008 authorizing an amendment to the Agency’s budget for fiscal year 2008-2009 to reprogram $3,301,225 of funds currently budgeted for the Western Addition related to the Muni Substation Parcel for loan programs and other economic development uses, and recommending approval of such amendment to the San Francisco Board of Supervisors.

 

  1. On December 16, 2008, District 5 Supervisor Ross Mirkarimi introduced Resolution No. 08-1603 amending the Agency’s Western Addition Redevelopment Project Area A-2 budget, which resolution is contingent upon the Agency adopting a resolution approving a term sheet to transfer the Muni Substation Parcel to the City and to replenish the re-programmed funds through the transfer of the Rincon Annex TDR Certificate to the City for the purpose of improving the Muni Substation Parcel.

 

  1.   The Agency wishes to also transfer to the City a nonexclusive light and air, ingress and egress easement that is adjacent to the Muni Substation Parcel and located on the Turk Street side of the parcel.

 

  1.   Any remaining funds related to the Rincon Annex TDR Certificate may be used by the City for the rehabilitation or preservation of other properties, consistent with the Agency’s Revised TDR Policy.

 

  1. The Agency’s transfer of the Property contemplated by the Term Sheet and the use of TDRs for the purpose of improving the Substation are categorically exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to CEQA Guidelines Section 15061(b)(3).  The Agency’s actions would not independently cause any significant physical change of the environment.  The eventual improvement of the Substation will be subject to environmental review by the City.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to approve the attached Term Sheet for the transfer of approximately 6,335 square feet of real property at 1190 Fillmore Street, which is a portion of Lot 1 within Assessor’s Block 0756, together with the improvements situated thereon known as the Municipal Railway Substation Building (the “Muni Substation Parcel”) to the City at no cost and to transfer a Certificate of Transferable Development Rights for 171,308 units of such rights (Certificate Nos. 3716/023:150001 through 3716/023:321308) (the “Rincon Annex TDR Certificate”) to the City for the purpose of improving the Muni Substation Parcel.

 

IT IS FURTHER RESOLVED that because the Muni Substation Parcel is located in the former Western Addition Redevelopment Project Area A-2 and because the Agency owns the parcel at the time of this Resolution, the use of the Rincon Annex TDR Certificate for the rehabilitation of the Muni Substation Parcel, as described in the Term Sheet, is consistent with the Revised TDR Policy Standard described herein.

 

IT IS FURTHER RESOLVED that the Executive Director is authorized to execute such purchase and sale agreement and other agreements and documents required to fulfill the terms of the Term Sheet, in form substantially in conformance with the Term Sheet, together with such changes as may be necessary which do not materially increase the burdens or costs to the Agency.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel

 

 

118-13109-002                                                                               Agenda Item No.  4 ( d )

                                                                                               Meeting of February 17, 2009

 

MEMORANDUM

 

TO:                 Agency Commissioners

 

FROM:           Fred Blackwell, Executive Director

 

SUBJECT:     Approving a policy regarding the Agency’s use of future tax increment from the former Western Addition A-2 Redevelopment Project to fulfill its replacement housing obligations; Western Addition Redevelopment Project Area A-2

 

 

On December 16, 2008, the San Francisco Board of Supervisors (“Board”) unanimously approved Ordinance No. 316-08, an amendment to the Western Addition A-2 Redevelopment Plan. The Plan Amendment extends both the time for issuance of debt and the receipt of tax increment by the San Francisco Redevelopment Agency and suspends the limit on the total number of dollars of tax increment revenue that the Agency may receive solely for the purpose of replacing affordable housing that the Agency destroyed prior to 1976. The Mayor approved the ordinance on December 19, 2008. 

 

 In approving the ordinance, the Board added a condition that the amendment would not go into effect until “the Redevelopment Agency shall have adopted a policy requiring that it use, to the greatest extent feasible, any tax increment revenue authorized by the Redevelopment Plan Amendment to fulfill the Agency’s Housing Obligations by assisting Affordable Housing in the Western Addition A-2 Redevelopment Project.”  The ordinance also adds the following Section 4.  “The Board of Supervisors shall consider, in deciding whether to approve the Redevelopment Agency’s annual budget pursuant to Section 33606 of the California Health and Safety Code, whether the Redevelopment Agency’s work program includes, to greatest extent  feasible the use of the tax increment revenue authorized by the Redevelopment Plan to fulfill the Agency’s Housing Obligation by assisting Affordable Housing in the Western Addition A-2 Redevelopment Project.”

 

The Resolution before the Commission would satisfy the condition that the Board placed in the effectiveness of the Ordinance which will become effective 90 days after the Mayor’s approval.

 

Agency staff recommends authorization of the attached resolution.

 

(Originated by Olson Lee, Deputy Executive Director, and Jim Morales, General Counsel)

 

 

Fred Blackwell

Executive Director

 

Attachment:

  1.  Commission Memorandum of July 10, 2008

 

 

RESOLUTION NO. 19-2009

 

 

 

APPROVING A POLICY REGARDING THE AGENCY’S USE OF FUTURE TAX INCREMENT FROM THE FORMER

WESTERN ADDITION A-2 REDEVELOPMENT PROJECT TO

FULFILL ITS REPLACEMENT HOUSING OBLIGATIONS;

WESTERN ADDITION REDEVELOPMENT PROJECT AREA A-2

 

 

BASIS FOR RESOLUTION

 

  1. County of San Francisco ("Board of Supervisors"), as the legislative body of the Redevelopment Agency of the City and County of San Francisco ("Agency"), originally approved the Redevelopment Plan for the Western Addition A-2 Redevelopment Project by adopting Ordinance No. 273-64 on October 13, 1964.  Since then, the Board of Supervisors has amended the plan seven times.  (The plan, as so amended, is referred to herein as the “Plan”).

 

  1.   The Agency no longer has the authority to act pursuant to the Plan except to pay previously incurred indebtedness, to comply with the housing obligations of Section 33333.8 of the California Health and Safety Code, and to enforce existing covenants, contracts, or other obligations.  California Health and Safety Code, Section 33333.6(a).  (All future section references are to the Community Redevelopment Law, California Health and Safety Code, Sections 33000 et seq. unless otherwise noted.)

 

  1.   Section 33413.  An agency must “rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low- or moderate-income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable costs within the territorial jurisdiction of the agency.”  Id.

 

  1.   Prior to 1976, the Agency demolished 14,207 units and replaced 7,498 units, resulting in a net loss of 6,709 affordable units.  To date, the Agency has not replaced these lost units, but has committed funding for the construction of 794 replacement units that are in the predevelopment phase.

 

  1.   (Statutes 2000, Chapter 661 § 1(a)).  The California Legislature found that the “Redevelopment Agency of the City and County of San Francisco, due to its unique housing situation and net loss of affordable housing units in [older] project areas, wishes, to the greatest extent feasible, to replace these lost units according to the formulas set forth in Section 33413 of the Health and Safety Code.”  (Statutes 2000, Chapter 661 § 1 (b)).

 

  1. Section 33333.7 acknowledged the Agency’s interest in fulfilling its housing obligation to replace these lost units and thus is a statute similar, and related, to Section 33413.

 

  1.   SB 2113 also authorized the Agency to receive tax increment funds through 2044 to repay indebtedness incurred to fund these Low and Moderate Income Housing Fund activities.

 

  1.   Under Section 33333.8, a local legislative body must suspend any time limit in a redevelopment plan for the receipt of tax increment revenue and the repayment of debt, and any limit on the total amount of tax increment funds that a redevelopment agency may receive for any project area, until the redevelopment agency fulfills its affordable housing obligations.  Section 33333.8(a)(1)(E) defines these housing obligations to include “the obligation to provide replacement housing pursuant to subdivision (a) of Section 33413, Article 9 (commencing with Section 33410), and other similar and related statutes.”  Section 33333.6(f) confirms that the suspension of plan limits provided by Section 33333.8 applies to redevelopment plans adopted on or before December 31, 1993.  Under Section 33333.6(e)(4)(B), the Board of Supervisors may amend the Plan as contemplated by the Ordinance without following the amendment process otherwise required by the Community Redevelopment Law.

 

  1.   Section 33333.8(a).

 

  1.   On December 19, 2008, the Mayor approved Ordinance No. 316-08, which under the Community Redevelopment Law would become effective 90 days after approval.  Section 33378.

 

  1.   “This Ordinance shall not be effective until the Redevelopment Agency shall have adopted a “policy requiring that it use, to the greatest extent feasible, any tax increment revenue authorized by the Redevelopment Plan Amendment to fulfill the Agency’s Housing Obligation by assisting Affordable Housing in the Western Addition A-2 Redevelopment Project.”  Section 3 of Ordinance No. 316-08.

 

  1. The Agency now desires to adopt the policy required by the Board of Supervisors in Ordinance No. 316-08.

 

  1. The adoption of this Resolution expressing the Agency’s policy on use of future tax increment from the former Western Addition A-2 Redevelopment Project is not a “project” as defined in the California Environmental Quality Act Guidelines Section 15378(b)(4) because this Resolution is adopted solely to enable the continued funding of Low and Moderate Income Housing Fund activities, and no specific affordable housing project is being approved at this time.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that it adopts the following policy regarding the use of future tax increment from the former Western Addition A-2 Redevelopment Project:

 

1) The Agency shall use, to the greatest extent feasible, any tax increment authorized by the Western Addition A-2 Redevelopment Plan, as amended by Ordinance No. 316-08, to fulfill its obligation to provide replacement housing, as defined in Sections 33333.7 and 33333.8 of the California Health and Safety Code, in the former Western Addition A-2 Redevelopment Project.

 

2)  In providing replacement housing pursuant to this Resolution, the Agency shall comply with the applicable requirements of Section 33413 of the California Health and Safety Code.

 

3)  In any fiscal year in which the provision of replacement housing in the former Western Addition A-2 Redevelopment Project is not feasible, the Agency shall use the tax increment to provide replacement housing within the territorial jurisdiction of the Agency. 

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel