Annual Real Estate Report
San Francisco Public Utilities
Commission
December 2, 2022
2 MIS SION
The Real Estate Services Division (RES) of the San Francisco Public Utilities Commission (SFPUC) furthers the SFPUC ’s mission of providing its customers with high quality, efficient and reliable water, power, and sewer services in a manner that is inclusive of environmental and community interest, and that sustains the resources entrusted in its care. RES does this by ca refully negotiating the best contractual terms when renting the real property over which the SFPUC has jurisdiction (SFPUC Property). If it is determined that any SFPUC Property is underutilized and should be sold, RES conducts that process.
RES also wo rks to acquire property and easements for SFPUC pro jects, and negotiates with third parties who desire to acquire easements on SFPUC Property.
RES also negotiates leases for office and industrial space required by other SFPUC divisions. Finally, RES works with colleagues in other divisions to protect the SFPUC by vetting proposed third -party projects for potential negative impacts to SFPUC infrastructure and lands.
RES does not perform facilities management, which the three enterprises handle.
LEASE, LICENSE AND OTHER AGREEMENT REVENUES
RES staff spends significant time negotiating new leases and licenses for the use of SFPUC Property. The total lease and license portfolio includes over 600 agreements that generate over $12 million annually. These transactions are subject to a complex project review process with several SFPUC divisions, the City Attorney’s Office (CAO), and regulatory a gencies. The real estate agreement often require Commission and Board of Supervisors’ approval. Final agreements for the use of even a small amount of SFPUC land can take many months to negotiate and approve.
The SFPUC earned $12,883,168.64 in real estate lease and license revenue during fiscal year 2021-2022. Please see the chart attached as Exhibit A for a breakdown o f the revenue by enterprise.
Distributed Antennae System Program Revenue
In the past, RES provided high -level accounting and finance support to the Power Enterprise for its Distributed Antennae System (DAS) equipment license program and included DAS revenu e in the Annual Real Estate Report . The Power Enterprise assumed RES’s f unctions several months ago, so RES is no longer involved with the 3 DAS Program and no longer includes DAS Program revenue in the Annual Real Estate Report.
Minimal Impact of the Pandemic upon the SFPUC Rental Portfolio.
Because of the COVID -19 outbreak, public health officials implemented “shelter in place” orders in March of 2020, ordering certain businesses to close. City buildings were closed to the public and almost all City employees for many months.
The outdoor nature of the SFPUC’s rental portfolio protected it from an appreciable decrease in revenue. The great majority of the SFPUC’s rental portfolio consist s of (i) no fee or reduced fee revocable licenses issued to public age ncies for outdoor recreational uses, roads and ut ility crossings; and (ii) fair market rental ground leases and licenses for parking lots, landscaping , utility crossing and other exterior uses.
These uses were not subject to the shelter -in-place orders and as a result, fewer than five tenants out of a real estate portfolio of over 600 real estate agreements requested rent reductions from the SFPUC.
What the pandemic did do, however, was slow the number of transactions generally accomplished by RES in a given year as SFPUC employees, other City colleagues and project applicants got used to working remotely. Now that City staff is back to the office at least three days a week, RES is back to its normal transaction pace.
SFPUC RENT AL EXPENDITURES
The SFPUC is both a landlord and a tenant. The SFPUC spends over $4,400,000 in annual rent for industrial and office facilities leases. The SFPUC spends over $150,000 in annual license use fees for telecommunications sites and utility crossi ngs and over $2,300,000 annually to rent space from the Port of San Francisco (Port). Please see the chart attached as Exhibit B for a summary of the SFPUC as tenant expenditures during fiscal year 2021-2022.
RES recommends that the SFPUC consider hiring a consultant to prepar e a master facility analysis in the next fiscal year in order to maximize the use of SFPUC facilities and reduce reliance on leased facilities.
4 KEY REAL ESTATE INI TIATIVES
SALE OF THE BALBOA RESERVOIR
The SFPUC, in conjunction with the Mayor’s Office of Economic and Workforce Development and the San Francisco Planning Department , continues to work towards fulfilling the City’s mission of providing affordable housing.
Proposed Balboa Reservoir Conceptual Design
The City, under the jurisdiction of the SF PUC, owns the approximately 17 -acre Balboa Reservoir, located immediately west of City College of San Francisco’s Ocean Avenue Campus (City College).
The SFPUC partially constructed the Balboa Reservoir in 1957 for water storage; however, the SFPUC never u sed the site for its intended water storage purpose.
Currently, the Balboa Reservoir site resembles a large basin with sharply sloping berms on the western, northern, an d eastern boundaries with a sunken, paved surface at the center. City College use s a portion of the site for parking pursuant to a SFPUC revocable permit.
BHC Balboa Builders, LLC, a BRIDGE Housing Corporation entity and the assignee of the original devel oper, Reservoir Community Partners, LLC, will act as the master developer (Developer) for the project site. The Developer seeks to develop the site with mixed-income housing, open space, community amenities, new streets, utilities, and other infrastructure. The project requires that 50 percent of the housing be affordable
5 housing pursuant to the City’s guidelines. The City, under the SFPUC’s jurisdiction , will retain ownership of an 80-foot wide linear strip of land located along the souther n edge of the site (Retained Fee) where subsurface water transmission pipelines and other surface facilities are located.
The Project includes extensive Developer investments in public infrastructure, including new water distribution, emergency firefighting water system and auxiliary water supply facilities, stormwater management improvements, sanitary sewer systems, power facilities, and street lighting that are expected to cost $39,000,000 . The City will accept this infrastructure, at no cost to the City, upon completion.
In June of 2020, a MAI appraiser appraised the fair market value of the Propert y at $11,400,000. The appraised fair market value of the Property took into account the 50% affordable housing threshold and the $39 million in in frastructure investments required for the Project. The purchase price was also supported by a third -party con sultant economic analysis procured by the San Francisco Office of Economic and Workforce Development.
On June 23, 2020, through its Resolution No. 20-0135, the SFPUC’s Commission declared approximately 16 acres of the Balboa Reservoir (Property) surplus and approved the sale of the Property to Reservoir Community Partners, LLC for the appraised fair market value of $11.4 million. The Board of Supervisors approved the sale of the Property via Resolution No . 373 -20 on August 1 1, 2020, and the Mayor approved it on August 21, 2020.
Escrow on the sale is due to close in December of this year.
Under the Purchase and Sale Ag reement, the Developer elect ed to have the City provide carryback financing on the balance of the purchase price, in which case the Developer will issue a promissory note (Promissory Note) to the City at closing secured by a first -lien deed of trust (Deed of Trust) on the Property. Once the Developer has paid the principal balance of the loan down to $5,700,000, the City will release the l ien of its Deed of Trust from the Phase 1 portion of the Property and will retain the lien of the Deed of Trust on the P hase 2 portion of the Property. If the transaction closes, the Promissory Note will be paid in full by December 31, 2028. The Developer has the right to prepay the loan without penalty.
The SFPUC and the Developer also negotiated a 20 -year open space license (Open Space License) for the use of approximately 44,431 square feet of the Retained Fee.
The Open Space License, which will not commence until several years after the close of escrow, requires the Developer to use the license area for the installa tion and maintenance of public open space. The use fee for the Open Space License starting in 6 year 11 of the license term will be $32,380 pe r year, with 4% annual increases, or the Developer may elect to make an upfront lump sum payment of $112,000.
WATER QUALITY PROTECTION LAND PURCHASE
SECTION 21 PURCHASE
Section 21 (Looking towards the San Francisco Bay)
The City, through the SFPUC, pur chased the property known as Section 21 of the Alameda Watershed in 2021 to expand and protect the SFPUC’s watershed lands.
The Section 21 property is comprised of three separate properties that total approximately 653 acres of unimproved agricultural and residential land. The land is located directly adjacent to the SFPUC’s primary watershed lands in unincorporated areas of Alameda and Santa Clara Counties. The three properties include (1) the approximately 316.2-acre Oak Ridge Ranch Estate located near O akridge Road in unincorporated Alameda County, (2) the approximately 166.7-acre Arroyo Hondo Ranch Estate located near Mountain Day and Arroyo Hondo Roads in unincorporated Santa Clara County, and (3) the approximately 170.9 -acre Mount Day Ranch Estate whi ch located near Mountain Day Road in unincorporated Santa Clara County.
7 On December 14, 2021, through its Resolution No. 21 -0191, the Commission approved the purchase of the Section 21 property for the appraised fair market value of $9,151,875. Escrow on the purchase closed on April 6, 2022.
The SFPUC’s Watershed and Environmental Imp rovement Program (WEIP) provided the purchase funds. A WEIP goal is to allow the SFPUC to manage, protect, and restore environmental resources that affect or are affected by SFPUC operations by purchasing additional watershed property more proactively.
The proposed purchase of the Property presents a rare opportunity to protect source water quality and conserve and restore land within the Alameda Creek Watershed and protect wildlife species and their habitats by preventing future development and/or other activities that may otherwise degrade water quality within the Alameda Creek Watershed. The Property is surrounded on three sides by existing SFPUC watershed parcels, and drain s to Calaveras Reservoir, an important component of the SFPUC’s water system. Please refer to the following map.
Section 21 and the SFPUC’s other Alameda Watershed Lands
8 CONDITIONAL TRANSFER OF FRANCISCO RESERVOIR
In 2014, the SFPUC entered a Memorandum of Understanding with the San Francisco Recreation and Parks Department (RPD) for the conditional transfer of the Francisco Reservoir to RPD. The SFPUC tendered possession of the approximately 4.5-acre site to RPD on September 30, 2014.
The final transfer of the Francisc o Reservoir will occur after RPD pays the sum of $9,900,000 in installments plus interest over a 12 -year period to the SFPUC . RES calculates periodic interest and monitors the transfer payments. To date, RPD has paid the SFPUC the sum of $5,719,842, representing $4,910,847 in principal and $808,995 in interest.
Earlier this year, RPD opened the beautiful Francisco Park on the former reservoir site.
Francisco Park
9 NEW SOUTHEAST COMMUNITY CENTER AT 1550 EVANS AVENUE
In the 1980’s, the S FPUC constructed the Southeast Community Facility, a community center located at 1800 Oakdale Avenue. The Southeast Community Facility was part of an agreement to offset the effects of the Southeast Wastewater Treatment Plant on surrounding neighborhood.
When it became clear in 2015 that extensive repairs would be needed to the Southeast Community Facility, the SFPUC engaged in a large-scale campaign to solicit community feedback on whether the center should be repaired or a new state -of-the-art center should be built. The results overwhelmingly favored building a new center that would fully live up to the promises of the original agreement.
Southeast Community Center
The SFPUC constructed and will operate the new Southeast Community Center, located at 1550 Evans Avenue in San Francisco, California (SECC), primarily for the benefit of the res idents of the Bayview -Hunters Point community. The SECC opened on October 22, 2022.
10 The SECC is a hub for the local community to gather, learn, play, and grow; it serves as a connection between the local community and the SFPUC. The SECC promotes the he alth, well -being, cultural, political, educational, and financial empowerment of Bayview-Hunters Point residents.
The SFPUC has dedicated the third floor of the SECC to serve as a community resource center. Through a recent request for proposal process, t he SFPUC is currently space -planning and issuing leases and licenses for portions of the third floor office space in the SECC to qualified community -based, non-profit entities that will provide health, well -being, cultural, political, educational and/or financial empowerment services and programming to the Bayview-Hunters Point community to further the SECC’s Mission.
To date, the City, through the SFPUC, has issued real estate agreements to:
• Wu Yee Children’s Services, a childcare center and Head Start Center, • Hungry Kitchens Café, and
• The Office off Civic Engagement & Immigrant Affairs, a City department.
RES is continuing to issue new leases and licenses for the SECC.
SALE OF REAL PROPERTY INTERESTS
FOR STATE HIGHWAY IMPROVEMENTS
The highway improvement projects generally are complex and require significant SFPUC staff resources to vet the projects to ensure their compliance with SFPUC policies, and to negotiate purchase and sale a greements and ancillary agreements, such as a cost -sharing agreement for the relocation of any SFPUC water transmission pipeline.
One time-intensive RES project is the ongoing acquisition by the California Department of Transportation (Caltran s) and the Alameda County Transportation Commission (ACTC) of a significant number of fee and easements interests from the City, through the SFPUC. Caltrans is undertaking significant highway improvements to State Route 84 (aka Niles Canyon Road) from the City of Fremont to the I-680 interchange. Caltrans is upgrading State Route 84 to expressway standards and acquiring SFPUC Property to widen I -680 to accommodate an extens ion of an existing high occupancy vehicle/express lane. The widening of I -680 also re quired the relocation of a SFPUC waterline.
11 The sale of real estate interests to Caltrans and ACTC require s both Commission and San Francisco Board of Supervisors approval.
SALE OF ONE MANZANO WAY LOT IN SUNNYVALE
The City, through the SFPUC, sold one Manzano Way lot in Sunnyvale in 2022 and is positioned to sell the remaining two lots at Manzano Way in Sunnyvale in the upcoming months.
After a public noticing process and a public bidding process, the SFPUC’s Commis sion, through its Resolution No. 20-0030 on February 11, 2020, approved the sale of two vacant residential lots of land ( designated by SFPUC staff as Parcels No. 1 and 2) in Sunnyvale to Manzano Property, LLC for $1,100,000. The buyer later withdrew from the transaction due to the uncertain economic climate result ing from the COVID -19 pandemic and the shelter-in-place orders.
The City of Sunnyvale subsequently approached the SFPUC about acquiring Parcels No. 1 and 2 for use as a public park. RES staff obt ained an updated appraisal for Parcels No. 1 and 2, and negotiated a purchase and sale agreement with the City of Sunnyvale. Staff hopes to finalize this purchase and sale transaction in 2023 if the City of Sunnyvale satisfies its obligations under the agreement.
At the same time, RES staff negotiated an agreement to sell the third Manzano Way lot (designated by SFPUC staff as Parcel No. 3) to the Santa Clara Valley Water District (Valley Water). Valley Wate r already occupied Parcel No. 3, which is adjacent to the west bank of Calabazas Creek, for drainage purposes pursuant to revocable permits issued by the SFPUC. RES staff obtained an appraisal for Parcel No. 3 for $33,000.
Parcel No. 3 is deemed unbuilda ble, among other things, due to the lack of street access.
The SFPUC’s Commission, through its Resolution No. 20-0070 dated April 12, 2022, approved the transfer of Parcel No. 3 to Valley Water. The Board of Supervisors approved the transfer of Parcel No. 3 through Resolution No. 350-22 dated July 26, 2022, and the Mayor approved the transfer on August 4, 2022. The transaction closed escrow on October 5, 2022.
WASTEWATER EASEMENT RECOVER Y PROJECT
The SFPUC’s Wastewater Enterprise operates and maintains i ts sewer assets within public streets and within easements through privately-owned land in San Francisco. The SFPUC lacks real estate records for a number of its sewer assets. The Easement 12 Recovery Project is an organized effort to locate and catalog all of the sewer easements for City-owned sewer infrastructure throughout San Francisco.
In 1996, via a Mayoral Directive, the Mayor transferred all sew er-related functions of the Department of Public Works to the SFPUC’S Wastewater Enterprise. Through this transfer, many of the real estat e documents for the locations where sewers operate within private property easements were misplaced. There are over 2,000 of these easements in the City. This means that in many cases when maintenance is requested or projects affecting sewer infrastructure arise, RES must research whether the infrastructure belongs to the Wastewater Enterprise or a private party , whether the SFPUC has any specific maintenance or restoration obligations regarding the sewer infrastructure and whether the SFPUC has any rights has to protect its infrastructure.
For the past three years, RES has (i) reviewed historical records to confirm the missing sewer easement data; (ii) confir med the locations of the sewer assets for which no easements exist; (iii) recovered the easement de eds or governing documents for the locations where Wastewater Enterprise infrastructure operates within private property ; and (iv) worked with other SFPUC and Public Works staff to locate the new easements on a geographic inf ormation system and populate the new and recovered easement data set on internal and external databases.
RES has recovered and mapped approximately 80 percent of the SFPUC’s sewer easements and hopes to finish this project in 2023.
BEST PRACTICES STUDY
RES desires to update its appro ach to issuing real estate agreements for third -party uses on SFPUC lands. To that end, RES engaged Century | Urban in 2021 to perform a survey of the typical terms and approaches used by peer organizations that issue leases o r licenses for certain common uses publicly-owned land. Of the 72 peer organizations contacted in California, only 21 agencies responded to the survey, despite Century Urban’s consistent communications . RES is continuing to sift through the data received and is working with the SFPUC Finance Team to use the data received to assist a rates study.
REMAINING UNDERUTILIZED PROPERTY
The SFPUC has three remaining underutilized properties: (1) the two Manzano Way lots in Sunnyvale discussed above; (2) the Niles Reservoir and cottage in Fremont; and 13 (3) the Old Muni Right of Way in Burlingame. RES continues its efforts to sell these underutilized properties. The disposition of any property serving no present or future utility purpose eliminates operational and m aintenance costs as well as unforeseen capital expenditures that arise due to continued ownership.
NILES RESERVOIR PROPERTY
Niles Reservoir
The Niles Reservoir property in Fremont consists of two parcels containing a residential structure, a shed, garage, and utilities as follows:
14 • the Niles Reservoir site at 38240 Canyon Heights Drive is a partially -improved approximately 7.45-acre site. The site contains an approximately 60,000 square- foot long-inactive concrete reservoir with infrastructure and util ity appurtenances; and
• the cottage site at 38234 Canyon Heights Drive is an approximately 21,209 square-foot site improved by a vacant residential structure. The SFPUC refers to both sites together as the “Niles Reservoir.” In 2016, the SFPUC , through a b roker, advertised and issued invitations to bid on the purchase of the Niles Reservoir. In November of 2016, RES staff pursued a purchase and sale contract with the highest bidder. Due to an anti -growth movement in the City of Fremont, however, the bidde r withdrew from the contract in January 2018 , and the two other bidders also declined to pursue a purchase and sale contract. RES staff will resume efforts to sell the Niles Reservoir and the Old Muni Right of Way – in a more constant economic climate.
RES PARTICIPATION IN SFPUC CAPITAL PROJECTS
RES staff acquires real estate rights for man y Capital Improvement Program projects implemented through the SFPUC’s Project Management Bureau (PMB). These capital projects are varied and include those under the Water System Improvement Program (WSIP), Sewer System Improvement Program (SSIP), Water and Wastewater Enterprise Renewal and Replacement Programs, and other capital programs requiring right-of-way (right of way) acquisition work. RES support includes con ducting extensive research and analysis of right of way ownership, providing input and feedback during planning and design phases, providing maps and drawings, coordinating with property owners and other public agencies and City departments, acquiring land rights on private properties, negotiating temporary laydown and construction stag ing areas, and negotiating, drafting, and seeking approval for various agreements.
15 CURRENT CAPITAL PROJECTS
For new SFPUC projects, RES works closely with PMB to assess alt ernatives, identify right-of-way issues, and plan acquisition strategies. RES sup ports PMB in drafting Alternatives Analysis Reports and scoring and selecting various project alternatives and alignments for further development. For example, RES worked wi th PMB to evaluate alternatives for the Lower Alemany Stormwater Improvements Proj ect. This project would involve a significant amount of Caltrans property . RES coordinated discussions with Caltrans District 4 representatives and SFPUC staff to review ea ch proposed alignment and determine which, if any, could be constructed within the Caltrans right of way. The Lower Alemany Project is especially challenging, as the proposed alignments potentially encumbered not only Caltrans property, but residential, c ommercial, and City-owned properties as well. An alignment was selected, and RES is now supporting PMB in drafting the Conceptual Engineering Report to refine the right of way needs and strategies.
Many proposed or active capital projects involve the use of land under the jurisdiction of other City departments. For example, RES negoti ated and executed Memoranda of Understanding with the Public Works Department (PW) for use of lands under PW jurisdiction for the Kansas and Marin Street Sewer Improvements P roject. RES also negotiated and executed a license agreement with the San Francis co Zoological Society, a RPD tenant, for the temporary use of a portion of its lease area for construction staging for the Westside Pump Station Reliability Improvements Proj ect, and RES is currently negotiating a Memorandum of Understanding with RPD for t he long-term use of property adjacent to the Westside Pump Station for underground infrastructure.
Working with other City departments can be challenging as each party has a need to protect its operational use of its property. For instance, RES staff le d the effort between the SFPUC project team and SFMTA operations staff to negotiate a temporary interdepartmental agreement for the Channel Force Main Intertie Project, which requires the use of the SFMTA bus yard at Cesar Chavez for active construction. The SFMTA bus yard is critical to SFMTA daily operations and the SFPUC project area is in direct conflict with the SFMTA’s bus fueling station. RES staff led the effort to r each an agreement that allows the project to move forward and demonstrates the res pect each department has for the mission of the other.
Key capital projects in which RES is participating are described in the attached Project Appendix.
16 HETCH HETCHY WATER AND POWER PROJECTS
View from South Fork
The SFPUC’s Hetch Hetchy Water and Power Division (HHWP) generates projects that are generally large scale and unique, requiring significantly more RES staff time than a typical Bay Area project. HHWP projects most often involve multiple federal, state, and/or local municipal agencies, and usually all of these stakeholders participate in the real estate negotiations. HHWP has also revised its Project Review process last year to improve coordination with RES.
Please see the Project Appendix for a list of current HHWP projects.
17 PROTECTION OF SFPUC INSFRASTRUCTURE AND LANDS
THIRD PARTY DEVELOPMENT AND REDEVELOPMENT PROJECTS IN
SAN FRANCISCO
City staff continues to handle a large influx of proposed major development projects impacting SFPUC lands and utilities. RES staff assists SFPUC colleagues with title research and real estate transactional document review and comment during the development process. RES staff also negotiates easements for SFPUC utilities not located in the public right of way.
IN-CITY PROJECT REVIEW COMMITTEE
The In -City Project Review Committee managed and led by RES, reviews project proposals initiated by third parties and other City departments, which affect SFPUC infrastructure or utilize SFPUC Property located within the City and County of San Francisco. The committee also reviews tentative subdivision maps, street and easement vacations, and sidewalk changes within the City. The committee meets on a bi-weekly basis to discuss the impact o f the projects and their feasibility. RES staff review and comment on all projects presented to the committee. After the committee meets, RES staff collect and compile input from other SFPUC enterprises and issue a single joint comment letter on behalf of the SFPUC for the proposed work.
In 2021, RES reviewed and commented upon 34 proposed projects at the following locations in San Francisco:
• Intersection of State Route 35 (Skyline Boulevard) and the Great Highway • 750 O’Shaughnessy Boulevard (between Del Vale Avenue and Malta Drive) • 1111 Pennsylvania Avenue
• 50 Palo Alto Avenue
• End of Fairview Court (at the Summit Reservoir Water Facility) • 1557 Funston Avenue
• Michigan Street (at Cesar Chavez Street)
• 4512 – 23rd Street
• 495 Cambridge Street
• 145 Mangels Avenue
• 134 Porter Street
• 300 Kansas Street
• 400 – 3rd Street
18 • 770 Woolsey Street
• 1300 Phelps Street
• 1023 Mission Street
• 1580 Pacific Avenue
• 986 South Van Ness Avenue
• 208 Pennsylvania Avenue
• 923 Kansas Street
• 55 Belcher Street
• 1900 Mission Street
• 1221 Jones Street
• Seawall Lots 323 and 324
• 4500 – 17th Street
• 1600 Jackson Street
• Lake Merced (near 899 Lake Merced Boulevard)
• 1236 Carroll Avenue
• 640 Cesar Chavez Street
• Proposed s olar installations for the SFPUC Reservoirs Project (800 Bacon Street, 301 Marview Way, 210 Olympia Way and 35 Agua Way) • 900 – 7th Street
• 2750 – 19th Street
• 3100 – 3rd Street
• 725 Jamestown Avenue
Many street-use related projects, including street vacations, sidewalk change legisla tion (e.g., bulb -outs), and major encroachment permits require SFPUC input and review.
However, these projects are managed under the jurisdiction of San Francisco Public Works (SFPW), Bureau of Street -Use and Mapping (BSM) and there is no designated process between the SFPUC and BSM. The SFPUC reviews these projects when BSM staff requests the SFPUC’s review and comment.
19 THIRD -PARTY PROJECTS AND DEVELOPMENT OUTSIDE OF
SAN FRANCISCO
PROJECT REVIEW COMMITTEE
RES staff works with SFPUC colleagues to protect SFPUC assets outside of San Francisco. Through the SFPUC’s formal Project Review process, SFPUC staff reviews proposals for secondary uses of SFPUC Property in Alameda, Santa Clara, and San Mateo Counties. Staff from the Natural Resources Land M anagement Division, Land Engineering, Water, Supply and Treatment Division, and RES determine whether each proposal is compatible with City and SFPUC-adopted plans and policies.
Consistent with the Land Use Framework approved by the SFPUC’s Commission via Resolution No. 12-0042 on March 13, 2012, the SFPUC may permit a secondary use on a SFPUC right -of-way only if it benefits the SFPUC, is consistent wit h the SFPUC’s mission and policies, and does not in any way interfere with, endanger, or damage the SFPUC’s current or future operations, security or facilities. No secondary use of SFPUC land is permitted without the SFPUC’s written consent.
As the land adjacent to the SFPUC pipeline right of way in the Bay Area continues to be redeveloped to denser suburban and urban uses, vacant space has grown more limited.
Private parties and public agencies seek in increasing numbers to use SFPUC Property for variou s uses. In particular, private developers and the cities of Santa Clara, Fremont, and Newark have proposed many recent projects on SFPUC lands.
20 Developers seek to construct a driveway and install utility lines within two SFPUC easements located near Crystal Springs Road in Hillsborough.
As an active participant in the Project Review process, RES staff r eviews each application, analyzes existing land rights at the proposed project area, and determines the appropriate SFPUC form in which to authorize the third -party use (lease, license, easement, or consent letter).
RES analyzed over 96 projects in 2021 . Of those 96 projects, RES reviewed and commented on (i) approximately 23 projects from public agencies; (ii) six projects from developers related to development projects; (iii) 11 communications and utility installation projects; (iv) 39 PG&E projects; (v) six other private-party projects; and (vi) 11 internal SFPUC projects.
Many of these projects resulted in RES issuing a real estate license, consent letter, or other agreement for use of SFPUC Property. Real property appraisals show that SFPUC Property usually increases in value as a result of these projects. The owners of adjacent redeveloped private properties seeking to use SFPUC Property often display significant resistance to RES’s efforts to meet the SFPUC’s obligation to charge fair market value. Thus, these projects often result in RES staff spending significant time negotiating rental rates for new real estate agreements.
21 ONGOING INITIATIVE S WITH PUBLIC AGENCIE S
Many of the older revocable permits issued by the SFPUC for public agency use of SFPUC Property are outdated because they do not document all of the public agency uses on a SFPUC parcel and lack the modern indemnity and insurance requirements provided in current SFPUC real estate agreements. RES works on an ongoing basis to issue modern revocable licenses to replace these outdated agreements. This is a time- consuming process due to other agencies’ desire to maintain the status quo and avoid entering into modern licenses with more restrictive terms . During 202 1, RES staff issued updated agreements for the following municipalities’ use of the SFPUC Property:
City of Sunnyvale: Between 1976 and 2004, the SFPUC issued eight separate permits to the City of Sunnyvale for various public uses, including pedestrian trail, and pedestrian bridge and ramp, on SFPUC Property in Sunnyvale . RES is currently negotiating with the City of Sunnyvale to replace these eight permits with two modern revocable licenses for these existing uses. These licenses will require the City of Sunnyvale to install and maintain on the pedestrian six SFPUC signs at various locations to educate users about the Hetch Hetchy Regional Water System and the importance that the pipeline right of way plays in the transportation of water.
City of Menlo Park : RES is currently negotiating with the City of Menlo Park to (i) replace nine outdated agreements issued by the SFPUC between 1953 and1984 with one new license allowing use of portions of SFPUC Property for Ivy Drive; and (ii) issue new replacement revocabl e licenses for Menlo Park’s use of SFPUC Property for portions of Bay Road and O’Brien Drive where the SFPUC maintains its Bay Division Pipelines #1, 2, and 5.
INTERIM RIGHT OF R IGHT POLICY UPDATE
The 2020 SFPUC Strategic Plan identified Environmental Stewardship as one of six goals and objectives essential to fulfilling our organization’s mission and vision. As stewards of the resources entrusted to us, we strive to manage them responsibly and sustainably. To help accomplish this object ive, our Executive Team requested t hat SFPUC staff review and update the 2015 Interim Water Pipeline Right of Way Use Policy for San Mateo, Santa Clara, and Alameda Counties to better serve the needs of the SFPUC in a manner that is sustainable and inclusi ve of the needs of compatible community uses.
Staff within the Natural Resources and Lands Management Division and RES have partnered to refresh the existing policy. Our work included an exhaustive review of all 22 Project Review records and summaries for pr oposed use of the SFPUC right of wa y; quantifying the data gathered in that review; highlighting recurring issues and problem areas; conducting interviews with Project Review Committee members and other primary stakeholders, such as the CAO, WSTD Land Engi neering, WSTD Operations, the Natural Resources Division , External Affairs, and RES; revising and re drafting the policy to address and incorporate the data and feedback collected; soliciting and incorporating feedback on the draft policy; and presenting it to the Assistant General Manager of the Water Enterprise.
Pending final approval by the SFPUC Executive Team, RES and the Natural Resources Division anticipate seeking Commission approval to adopt the updated policy.
While the updated policy will improve the management of the right of way, staff recommend that the SFPUC consider the development of a Right of Way Management Plan to further provide analysis and background on the current standards for best management practices. This effort would likely requi re the use of SFPUC staff and consultants, an Environmental Impact Report , and community outreach to develop, analyze, and implement the plan.
PACIFIC GAS AND ELECTRIC COMPANY (PG&E) PROJECTS
PG&E literature on its current program to remove vegetation according to CPUC and Cal Fire requirements for “Extreme Fire Threat Tier 3”.
23 As part of its ongoing plan to accommodate new, more stringent safety and performance requirements in the wake of the Northern California wildfires, PG&E is pursuing SFPUC approval for a variety of projects. These projects include (1) large-scale vegetation management initiatives related to power transmission and distribution rights; (2) gas pipeline inspection, replace ment, installation, and retirement; and (3) electric transmission and distribution line inspectio n, pole and tower repair and replacement, and reconductoring. In 2021 , the SFPUC issued 12 work authorization letters, eight consent letters, and six licenses for new and existing PG&E projects.
SFPUC and PG&E staff continue to work together to streamlin e the approval process to accommodate PG&E’s critical work. A list of 202 1 real estate agreements issued to PG&E is attached as Exhibit C.
OTHER KEY INITIATIVES
BISECTED ENCROACHMENT PERMITS
The bisected encroachment permit process was established in 20 10 during the installation of Bay Division Pipeline No. 5. An encroachment permit allows an adjacent (usually residential) property owner to use SFPUC Property as part of the adjacent owner’s driveway, backyard, or front yard. In Redwood City and North F air Oaks, the SFPUC Right -of-Way bisects neighborhoods in such a way that, without an encroachment permit, adjacent properties may have very l imited utility or be technically landlocked. Encroachment permits have a five -year renewable term, and the permit holders are required to pay an annual fee, maintain insurance indemnifying the City, and provide general maintenance to the SFPUC Property they are utilizing. To date, RES has issued 111 active fee -based encroachment permits to affected adjacent property owners. RES issued a total of 12 encroachment permits in 2021, and six encroachment permits through July 2022.
24 PROJECT APPENDIX
CURRENT WSIP PROJECT LIST
Regional Groundwater Storage and Recovery Project, Phase I and Phase II – This ongoing project see ks to continue building groundwater facilities in San Mateo County to fulfill the goal of diversifying our regional water supply for drought protection. RES is currently:
1. working with San Mateo County to record a Record of Survey that accurately reflects SFPUC Parcel 17;
2. acquiring two aerial electrical easements across private property for PG&E to serve the sampling station on SFPUC Parcel 17;
3. acquiring a proposed access driveway and easement from BART on Mission Road for the SFPUC’s groundwater well station;
4. negotiating with BART, the City of South San Francisco, and a private developer for temporary access rights and permanent access easements for the groundwater well station near Antoinette Lane in South San Francisco;
5. working with BART to obtain an enc roachment permit to install a water line in Chestnut Avenue where it crosses a BART tunnel;
6. negotiating with Kaiser Hospital t o purchase new easements for a utility vault and water, electrical, and communications lines, as well as a temporary construction easement to install them, related to the groundwater well station near Antoinette Lane;
7. appraising and acquiring an aerial eas ement and two footing easements for a pipeline across San Mateo County Flood Control property;
8. negotiating a license agreement wit h Cal Water for a proposed staging area on Cal Water property on Chestnut Avenue;
9. negotiating a Memorandum of Agreement with C al Water for the connection and distribution of groundwater to wholesale users; and
10. exploring locations for the installation of additional groundwater well sites for Phase II of the project.
CURRENT NON-WSIP WATER ENTERPRISE CAPITAL PROJECT LIST • Auxiliary Water Supply System (AWSS) –The AWSS is an independent high - pressure, non-potable, water supply system built following the 1906 e arthquake and dedicated to fire protection. The AWSS mainly serves the northeastern portion of the City. RES contin ues to support the project team in its efforts to improve the AWSS at various locations. Most recently RES assisted the project
25 team to ex tend an existing Special Use Permit with the National Park Service (NPS) for the AWSS Pumping Station No. 2 at the Pr esidio. Currently RES is assisting with plans to install fireboat manifolds at Fort Mason on land under the jurisdiction of the GGNRA and Pier 35.5 on land under the jurisdiction of the Port.
• Bay Division Pipeline (BDPL) Nos. 3 and 4 Crossover Project – RES is working with the Veterans’ Administration Hospital in Palo Alto to acquire an access easement for permanent access for the SFPUC Cro ssover facility that runs through the VA Hospital campus.
• BDPL Nos. 3 and 4 Slip Lining at Lafayette Street – RES is working to finalize an access agreement with the City of Santa Clara to facilitate slip lining across a Union Pacific Railroad (UPRR) right of way at Lafayette Street in anticipation of UPRR’s installation of a new rail.
• Corrosion Protection Capital Upgr ades Phase I and II – RES is working with the SFPUC project team to analyze proposed locations for the installation of cathodic protection improvements on the SFPUC pipeline right of way . RES will acquire utility easements and temporary construction easem ents, as and where needed, for the improvements and for the installation of electrical supply lines needed to power the improvements. In A ugust 2021, RES acquired a Temporary Construction Easement on Stanford University property for staging related to the location at Quarry Drive and El Camino Real in Santa Clara County.
• Crystal Springs Pipeline No. 2, Reach 5 Re -Lining – RES is working wit h the project team to develop and refine general right of way needs and strategies for reclaiming portions of the pip eline right of way for project construction. The CSPL2 Reach 5 Project would re -line a 3.84 -mile segment of the CSPL2 pipeline. The proje ct would require access pits at multiple locations, as well as construction of new manholes and modification or reloc ation of pipeline appurtenances. The project is currently in the Conceptual Engineering Phase.
Anticipated right of way needs include loc ating temporary space on SFPUC Property or within public right of way for temporary equipment laydown and staging, negotiating memoranda of agreements with impacted municipalities for project implementation, and clearing the right of way of significant encroachments along residential stretches of the right of way.
• Millbrae Yard Lab and Shops Improvements Project – This project would redevelop the Millbrae Yard over multiple phases. RES support for the project to date has included extensive research relate d to existing historic easements and
26 agreements on the multip le parcels that comprise the Millbrae Yard, assisting with obtaining an accurate ALTA survey for the project site from City’s Bureau of Streets and Mapping, and coordinating with existing tenants to perform geotechnical investigations. Anticipated future support will mainly include coordination with the existing tenants and easement holders to implement the project.
• Potable Emergency Firefighting Water System (PEFWS) – The proposed PEFWS is rela ted to the AWSS, however it will be connected to the drinking water system, utilizing a system of valves that can be closed, when needed, in order to function at the high -pressure required for firefighting. RES is working with the project team to identify SFPUC Property or other City property to be used for new pump stations and piping on the west side of the City between Lake Merced and Golden Gate Park. RES will negotiate, if needed, agreements with other City departments (most likely RPD) to install pi pelines for the PEFWS through City property (i.e. Stern Grove and Golden Gate Park).
• Southern Skyline Boulevard Ridge Trail Extension – This project would construct approximately six miles of multi -purpose trail generally following Skyline Boulevard (SR 3 5) from SR 92 to the southern boundary of the Peninsula Watershed at the Phleger Estate. New improvements would overlap with Caltrans SR 35 right of way at 18 locations. RES support for this project has included a significant amount of historical researc h, production of right of way maps, and ongoing discussions with Caltrans to facilitate the project team’s efforts to obtain an encroachment permit and f reeway maintenance agreement.
RES will also work to assume the existing easement across the Skylawn Memorial Park. The easement is currently owned by the Bay Area Ridge Trail Council.
• Town of Sunol Pipeline Replacement Project – This project seeks to replace a portion of the Sunol Pipeline where it crosses Laguna Creek and the Sunol Glen School. For the project, RES will negotiate a new easement for the new pipeline alignment and appurtenant facilities on and across the school property, as well as temporary construction easement(s) on the school property.
CURRENT NON-SSIP WASTEWATER ENTERPRISE CAPITAL PROJECT LIST • Ocean Beach Climate Change Adaptation Project – This project focuses on alleviating chronic shoreline erosion at Ocean Beach between Sloat Bou levard and Fort Funston. Project elements include managed retreat, beach nourishment through the place ment of sand, construction of a buried wall to
27 protect the Lake Merced Tunnel, beach access and recreation improvements, and permanent closure of the Gre at Highway Extension. RES support for this project involves working with the National Park Service, th rough the GGNRA, to obtain easements for the project components on GGNRA lands and working with RPD to negotiate a Memorandum of Understanding to govern the respective responsibilities and obligations of each department for the various improvements installed on RPD lands as part of the project.
• Presidio Trust 50 -year License Agreement for WWE sewer infrastructure within the Presidio – RES is negotiating w ith the Presidio Trust for a new 50 -year replacement license agreement that will allow our sewer facili ties to remain on Trust property.
• Treasure Island Wastewater Treatment Plant – This project will construct the new wastewater treatment plant (WWTP), wetlands treatment area, and recycled water facilities necessary to support the redevelopment of Treasur e Island. The land on which the new facilities will be constructed is under the jurisdiction of the Treasure Island Development Authority (TIDA), as trustee of the public trust administered by the State Lands Commission. Because the WWTP is not an allowable use of trust lands, TIDA is working with the State Lands Commission to execute a trust exchange agreement that would unencumber the WWTP parcel.
Once the trust exchange is complete, TIDA will: (i) quitclaim the WWTP parcel to the SFPUC, (ii) convey a 66-year lease for use of an adjacent parcel for the wetlands treatment area, and (iii) convey an easement for a discharge pipeline to the San Francisco Bay. RES has been coordinating monthly meetings with the project team, City Attorney’s Office, TIDA, an d TIDA counsel to move the real estate items forward.
CURRENT SSIP PROJECT LIST
• Force Main Rehabilitation at Embarcadero and Jackson Improvements (FMEJ) – The purpose of this project was to rehabilitate the remaining 240 linear-feet of the North Shore Fo rce Main (NSFM) that could not be rehabilitated in 2014 due to the limited shutd own times allowed per that project’s permits. Pursuant to Resolution No. 20 -0010, the Commission authorized the General Manager to sign a Permit to Enter with Hudson One Ferry Operating, L.P. to allow for SFPUC construction activities, a Memorandum of Und erstanding with the Port for temporary staging, and an amendment to the existing Memorandum of Understanding for NSFM to allow for additional project components. The project was successfully completed and closed out in July 2022.
28 • Mariposa Dry -Weather Pump Station and Force Main Improvements Project (MPS Project) – Pursuant to Resolution No. 17 -0253, the General Manager executed a Memorandum of Understanding with the Port to rec onstruct the Mariposa Pump Station. At that time, the SFPUC also entered into a sublease with the Port’s tenant, St. Francis Marine Center, for use of property adjacent to the pump station. In 2019, the SFPUC negotiated a second Memorandum of Understanding with the Port for use of a portion of Terry Francois Blvd. for temporary construction staging. The MPS Project is nearly complete and in the process of being closed out. At this time, RES is working with the project engineers and the Port to deliver as-built drawings of the new improvements. • Cargo Way Sewer Box Odor Reduction Pro ject (CWOR) – CWOR installed a 2,000-linear-foot force main flush line and related facilities beneath the surface and within portions of Third Street and Cargo Way, both Port s treets, to reduce collection system odors in the existing sewers and in the proj ect area. RES negotiated a 66 -year Memorandum of Understanding with the Port for use of its property for the CWOR flush line and facilities. The project was successfully completed in September 2022.
• Channel Force Main Intertie (CHFM -I) Project – This project would construct an intertie between the Channel Force Main (CHFM) and the Islais Creek Transport/Storage Box (ICT), providing a bypass that allows Wastewater Enterprise to inspect and rehabilitate approximately 2,500 linear feet of the CHFM. The inte rtie will be constructed within the public right of way at the intersection of Cesar Chavez and Indiana. It will connect the CHFM to the ICT within the adjacent SFMTA bus yard . RES negotiated an agreement with the SFMTA providing for project construction , temporary laydown, and access to shut-down valves within the bus yard. Recently, engineering staff determined the new project components required improved venting of the CHF M. RES is negotiating a Memorandum of Understanding with RPD for a new vent pipe to be located within the southwest corner of Esprit Park. Finally, the project contractor will require access through an existing access panel within an SFPUC easement on pr operty owned by Caltrain. Caltrain is storing a significant amount of dirt over the SFPUC easement, blocking access. RES is leading the effort to have Caltrain remove the dirt and restore access prior to issuance of the project Notice to Proceed, anticipated for early 2023.
• Folsom Area Stormwater Improvement Project – This project p roposes to manage stormwater and minimize flooding through integration of “Green” and “Grey” infrastructure including upsizing and deepening existing sewer structures and const ructing new sewer components to improve conveyance and flow
29 distribution. RES is working to obtain permanent tunnel easements across three privately owned commercial parcels. Additionally, RES is negotiating with Caltrans for the use of a Caltrans right of way for a launching shaft and staging area. RES will obtain a Caltrans air space lease for the temporary staging area. • Lower Alemany Stormwater Improvement Project – This proposed project is currently in the Conceptual Engineering Phase. The SFPUC pro poses to bore a 5,650-foot-long 10 -foot-diameter tunnel to alleviate flooding and improve flood resilience in the Lower Alemany area. RES has been working with the project team to evaluate right of way needs related to the selected alternative. RES support for the project would include the acquisition of tunnel easements across and below three residential and two commercial parcels. RES would also work to identify and acquire temporary construction easement(s) for laydown and staging.
• Seacliff No. 1 Pum p Station and Force Main Upgrade Project – This project would replace the existing Seacliff Pump Station No. 1 in a new location. The current location of the pump station is a landlocked SFPUC -owned parcel at China Beach. The topography of the area and l andlocked nature of the SFPUC parcel led to the decision to relocate the pump station to within the public right of way at the end of Seacliff Avenue. RES support for this project includes coordinating the effort to obtain Special Use Pe rmits from the Nat ional Park Service, through GGNRA, for the necessary access to decommission the existing pump station and for the long -term placement of electrical cabinetry on GGNRA property.
• Westside Pump Station Reliability Improvements Project – This project will improve and modify the aging mechanical and electrical infrastructure at the SFPUC’s essential primary wastewater pump station servicing the west side of the City. To construct the project, the SFPUC secured a temporary staging area on the a djacent RPD proper ty leased to the San Francisco Zoological Society.
Additionally, RES is in the process of negotiating a Memorandum of Understanding with RPD for certain permanent project components that will encroach onto RPD property.
CURRENT POWER EN TERPRISE CAPITAL P ROJECT LIST
• Bay Corridor Transmission and Distribution (BCTD) – RES continues to support the SFPUC project team in its efforts to build a proposed electrical distribution system in the southeast portion of San Francisco that will allow th e SFPUC to serve customers from its own distribution system.
30 PUC/Port Northern Waterfront Electrification Project – The SFPUC and Port seek to increase the SFPUC’s capacity to provide power to Port operations. To that end, SFPUC and Port staff are working together to identify Port property on which the SFPUC could design and construct electrical infrastructure for the benefit of the Port’s maritime operations.
HHWP CURRENT PROJECT LIST
• Verizon Cell Site Modifications and Lease Renewals – Verizon is currently working with HHWP and RES to install or upgrade communications facilities at four locations on SFPUC Property . RES renewed Verizon’s lease of the Moccasin Surge Tank during this past year. RES staff and Verizon are currently negotiating new lease terms for the Early I ntake site. In addition, RES will be subleasing space on its towers located on federal property at Poopenaut Pass and Burnout Ridge. Verizon anticipates performing the work immediately upon execution of the leases, which will require Commission approval. • Consent Letters for Irrigation Line Crossings – In San Joaquin and Stanislaus Counties, the SFPUC Right of Way runs through miles of land used primarily for agriculture. The deeds for these parcels often reserve the right t o cross SFPUC Property with irrigation lines, for which the SFPUC issues a consent letter . This is the most common type of project reviewed by HHWP and RES staff. • Modesto Memorandum of Agreement (MOA) – RES staff is working with the City of Modesto to dra ft and execute an MOA that outlin es various projects and considerations that benefit the SFPUC and the City of Modesto (Modesto). The MOA contemplates projects proposed by Modesto on SFPUC Property, including the Claratina Avenue Road Widening project (more information below) across SFPUC Property and a proposed bi cycle path extension along SFPUC Property.
The SFPUC is working with Modesto to protect access to SFPUC infrastructure. • Claratina Avenue Crossing Road Widening –Modesto has initiated the process of widening Claratina Road, whic h crosses over SFPUC Property. Modesto is working with HHWP and RES staff to obtain a license to perform the work and operate and maintain the new r oad. RES is working with the City Attorney’s Office to draft quitclaim deeds to be executed by three adjac ent landowners whose reserved crossover rights will be impacted by the project. Similarly, PG&E will seek a license to relocate two gas transmission lines and appurtenant service lines as a result of this project.
• Modesto Crosswalk Repair –Modesto request ed authorization to improve its crosswalks at locations across the City to improve pedestrian safety across
31 Modesto streets that cross the right of way in Modesto. Modesto holds revocable permits that will be replaced with modern revocable licenses. Modest o executed its consent letter for the crosswalk improvements. RES is working with HHWP to identify all permitted and unpermitted Modesto street cross ing located across the right of way to put all street crossings under a revocable license with Modesto. • Caltrans North County Corridor New State Route 108 Project (State Route 99 to State Route 120) – This is a high -priority project for Stanislaus County t o ultimately build a west-east roadway to improve regional network circulation. The project proposes to connect State Route 219 near Modesto to State Route 120 near Oakdale and cross over SFPUC lands at several locations. Caltrans has now identified a ro adway alignment and is conducting its environmental review.
The proposed alignment crosses the SFPUC right of way at two locations and will require improvements to surface streets around the new alignment to support an anticipated increase in vehicular tr affic, further impacting SFPUC right of way at an additional six or more locations. The proposed project will require significant RES staff time to negotiate easements and permits with the Caltrans, Stanislaus County, and local municipalities to protect HHWP infrastructure. • Federal Highway Administration (FHA) and Tuolumne County Evergreen Road Widening – HHWP and RES staff are working with the FHA and Tuolumne County on their project to widen Evergreen Road, a portion of which runs through SFPUC Property. Currently there is no existing easement or permit for Evergreen Road. FHA and Tuolumne County are workin g on surveying and appraising the necessary area for the purchase of an easement from the SFPUC.
RES staff will work with FHA and Tuolumne County to negotiate a license agreement to perform the road widening work and the sale of an easement for Evergreen Road, which sale will require Commission and Board of Supervisors approval.
• Hetch Hetchy and Upcountry Cottage Leases – RES staff continue t o draft new cottage leases for HHWP and federal agency staff tenants. The SFPUC presently has 38 cottage tenants in Moccasin and in the greater “Upcountry” area of the Tuolumne Watershed. A total of two cottage leases were issued in the past year in Moccasin, and both cottages were leased to SFPUC employees.
32 EXHIBIT A
REAL ESTATE LEASE AND LICENSE REVENUES FY 2021 -2022
Enterprise FY 2021-2022
Wastewater $ 704,650.25
Hetch Hetchy
Water and
Power
$ 75,334.59
Water $ 12,103,183.80
Total $ 12,883,168.64
33 NEW REAL ESTATE LEASES AND REVOCABLE LICENSES ISSUED IN 202 1 County Commencement
Date Licensee Use Use Fee Annual Rent / One
Time Payment
San Mateo 3/1/2021 Dorian 230 Inc. Restaurant and Drive Through $ 129,600.00 Annual Alameda 3/1/2021 City of Newark Repair of Street, Sidewalk, Landscape and Irrigation Line $ 2,496.00 Annual
Alameda 4/1/2021 Bandwidth Infrastructure Group
CA, LLC 7 Fiber Optic Conduits $ 624.00 Annual San Francisco 4/12/2021 San Francisco Department of
Public Works
Construction Staging and Slope
stabilization N/A N/A
San Francisco 4/14/2021 San Francisco Department of
Public Health
Parking Lot and Restroom at 1800
Oakdale Avenue N/A N/A
San Mateo 5/1/2021 Mid-Peninsula Education Center,
Inc. (MidPen High School)
Parking, Driveway, Landscape and
Athletic Fields $ 49,420.80 Annual
San Mateo 5/15/2021 Pacific Gas & Electric Staging Area, Tree Removal and Vehicle Parking $ 1,200.00 One Time Payment
Alameda 6/1/2021 Calaveras Nursery Inc. Plant Nursery $ 16,024.32 Annual Stanislaus 6/1/2021 JWG McHenry, LLC PVC Sanitary Line , Landscape, Driveway $ 3,776.40 Annual
34 County Commencement
Date Licensee Use Use Fee Annual Rent / One
Time Payment
San Mateo 6/28/2021 Pacific Gas & Electric
Construction Staging, Operation and
Maintenance of Groundwater Monitoring
Well
$ 225.00 One Time Payment
Alameda 7/1/2021 37444 Sycamore, LLC Parking & Landscaping, Pedestrian and Vehicular Access $ 14,832.00 Annual
San Mateo 7/1/2021 SFPUC Employee Cottage $ 14,563.97 Annual Alameda 7/1/2021 Dell's Ivy Acres Nursery, Inc. Plant Nursery $ 2,496.00 Annual Alameda 8/1/2021 Alameda County Transportation
Commission Ingress/Egress $ 5,000.00 One Time Payment Alameda 8/1/2021 Western Star Nurseries Operation of Plant Nursery $ 19,007.04 Annual San Mateo 8/30/2021 Pacific Gas & Electric Construction Staging, Storage and Parking $ 1,800.00 One Time Payment
San Mateo 9/1/2021 SFPUC Employee Cottage $ 10,854.72 Annual Alameda 9/1/2021 SFPUC Employee Cottage $ 11,280.12 Annual San Mateo 9/1/2021 South San Francisco, City of Construction and maintenance of Utilities $ 2,400.00 Annual
San Mateo 9/1/2021 Turner Family Trust Temp construction staging and ingress $ 2,400.00 Annual
35 County Commencement
Date Licensee Use Use Fee Annual Rent / One
Time Payment
and egress
Alameda 10/1/2021 SFPUC Employee Cottage $ 13,933.92 Annual San Mateo 10/14/2021 Pacific Gas & Electric
Parking for PG&E employees and
contractors; vehicle and equipment
storage; and materials storage including
gas pipelines, filters, and valves
$ 3,600.00 One Time Payment
Alameda 10/25/2021 Martin Marietta Materials, Inc. Vegetation Maintenance and Staging Area $ 3,336.00 One Time Payment
Alameda 11/1/2021 SFPUC Employee Cottage $ 10,852.40 Annual San Mateo 11/1/2021 The HUB Community Corporation Operation and Maintenance of sewer line $ 2,400.00 Annual
Santa Clara 12/1/2021 BG Sunnyvale LLC Ingress and egress, Parking and Landscape $ 44,000.00 Annual
Alameda 12/1/2021 SFPUC Employee Cottage $ 10,795.08 Annual
36 ENCROACHMENT PERMITS ISSUED IN 2021
County Commencement Date Permittee Use Fee Annual Rent / One Time Payment San Mateo 1/19/2021 Jami K. and Stephen Nachtsheim $ 125.00 Annual San Mateo 2/16/2021 Vera and Randall Tom $ 125.00 Annual San Mateo 4/21/2021 Kenneth Durling $ 125.00 Annual San Mateo 4/23/2021 Jeffry and Carola Thompson $ 125.00 Annual San Mateo 4/30/2021 William (Bill) and Amy Daniher $ 125.00 Annual San Mateo 6/17/2021 Rodolfo and Dora Figueora $ 125.00 Annual San Mateo 7/18/2021 Robert Chen and Emily Getchel $ 125.00 Annual San Mateo 7/18/2021 Mary Coady $ 125.00 Annual San Mateo 9/14/2021 Emma and Albert Romero $ 125.00 Annual San Mateo 9/16/2021 Noah and Jessica Campbell $ 125.00 Annual San Mateo 9/20/2021 Dennis Crasto $ 125.00 Annual
37 NEW REAL ESTATE LEASES AND LICENSES ISSUED IN JANUARY TO JUNE 202 2 County Commencement
Date
Licensee Use Use Fee Annual Rent / One
Time Payment
San
Mateo
2/1/2022 SFPUC Employee Cottage $ 8,636.92 Annual
San
Mateo
2/1/2022 Dyer, Jonathan and Katherine Fencing , Deck and Landscape $ 605.00 Annual Santa
Clara
2/1/2022 Sasaki, Go & Kay Kaoru Parking, Landscaping $21,000.00 Annual San
Francisco
3/1/2022 Sutro Tower Inc. Landscaping and concrete walkway $ 2,916.00 Annual Alameda 3/29/2022 MCIMetro Access Transmission Services LLC
Install and Maintain Conduit Fiber Optic
Cables
$ 1,920.00 Annual
Alameda 4/5/2022 MCIMetro Access Transmission Services
LLC
Install and Maintain Conduit Fiber Optic
Cables
$ 1,920.00 Annual
San
Mateo
6/1/2022 San Mateo, County of Radio Telecommunications Site $ 2,400.00 Annual San
Mateo
6/23/2022 Pacific Gas & Electric 5 Bell holes, Equipment storage, staging and contractor parking
$ 8,500.00 One Time Payment
San
Mateo
6/23/2022 Pacific Gas & Electric 8 Bell holes, Equipment staging, contractor parking and temporary
storage
$ 3,500.00 One Time Payment
San
Mateo
6/28/2022 San Mateo, County of Sewer Pipeline $ 1,920.00 Annual
38 ENCROACHMENT PERMITS I SSUED JANUARY TO JUNE 2022
County Commencement Date Licensee Use Fee Annual Rent / One Time Payment
San Mateo 1/3/2022 Zhenwei Huang and Xu Huang $ 125.00 Annual San Mateo 5/27/2022 Beth Lubov Rodgers and Joseph Rodgers $ 125.00 Annual San Mateo 6/11/2022 Julian Sinai and Karol Ann Sinicki $ 125.00 Annual San Mateo 6/12/2022 Tali Herzka and Adam Naguib $ 125.00 Annual San Mateo 6/28/2022 Ali Yurukoglu and Emily M. Parker $ 125.00 Annual
39 EXHIBIT B
CITY AS TENANT – CURRENT LEASE AGREEMENTS
Landlord Property
Address City
Area
(Square
Feet)
Type/Use Start
Date End Date Extension
Options Annual Rent Rent
Adjustment
Adjustment
Frequency
Sea Cliff Fund,
LLC;
Del Mar SF,
LLC;
TIC
Investments,
LLC; and
50 Quint, LLC
50 Quint
Street San Francisco 75,548 Warehouse
and Parking 10/1/2018 9/30/2023 One, 3-year
extension $1,259,616.96 CPI Annually
1880 Jerrold
Ave LLC
1876
Oakdale
Avenue
San Francisco 25,937
Staging and
Storage -
Materials for
Disposal
10/1/2018 9/30/2023 One, 3-year
extension $189,600.00 None N/A
2725 Oakdale
LLC
2725
Oakdale
Avenue
San Francisco 46,442 Warehouse
and Parking 6/1/2019 5/31/2024 One, 4-year
extension $844,606.92 CPI Annually
Raul and
Denise Arriaza;
and Linda and
Carl Olson
1325A
Evans
Avenue
San Francisco 3,287 Office 1/1/2019 12/31/2024 One, 3-year extension $118,332.00 3% N/A
Communicatio
n & Control,
Inc. -
Livermore Hills
Livermore
Hills
Unincorporated
(Contra Costa
County)
Two (2) 6-
foot dishes
and shelter
space (+)
Communicati
ons Site -
Antennas,
Microwave,
and/or Radio
12/1/2017 11/30/2022 Four, 5-year
extensions $18,941.76 4% per
annum Annually
40 Landlord Property
Address City
Area
(Square
Feet)
Type/Use Start
Date End Date Extension
Options Annual Rent Rent
Adjustment
Adjustment
Frequency
Executive Park
Properties LLC
150
Executive
Park Blvd.,
Suite 1300
San Francisco 4,164 Office 2/1/2021 1/31/2025 None left. $120,339.60
24.57%
Increase of
Current Rent.
Adjustments on
commencement of
amendment and
again on July 1,
2022. No additional
increases through
the end of lease
amendment 1 on
January 31, 2025
N/A
544 Golden
Gate
Associates
LLC
544 Golden
Gate
Avenue
San Francisco 6,888 Office 3/1/2019 2/28/2023
None left;
post-term
expiration
date
holdover
agreement
executed.
$350,083.00 104% of Base
Rent Annually
Communicatio
n & Control,
Inc. - Mt.
Allison
Mt. Allison
APN#: 096-
0090-005-
07 Unincorporated
(Alameda
County)
6-foot dish
and shelter
space (+)
Communicati
ons Site -
Antennas,
Microwave,
and/or Radio
5/1/2020 4/30/2025 Four, 5-year
extensions $62,596.68 3% per
annum Annually
Bayview Plaza,
LLC
3801 Third
Street, Suite
600
San Francisco 10,740 Office 7/1/2021 6/30/2024 None left. $412,189.56 None N/A
41 Landlord Property
Address City
Area
(Square
Feet)
Type/Use Start
Date End Date Extension
Options Annual Rent Rent
Adjustment
Adjustment
Frequency
City of
Hayward -
Hayward
Executive
Airport
22488
Skywest
Drive
(Hayward
Executive
Airport)
Hayward 24,974
Ground
Lease for
Pump Station
1/1/2005 12/31/2054 $4,008.32 See
agreement. Every 5 years
Kristian A.
Akseth, Lilly B.
Akseth, and
Libkra Invest.
1980
Oakdale
Ave
San Francisco 36,400 Warehouse
and Parking 2/1/2017 1/31/2022 One, 3-year
extension $835,888.32 CPI Annually
State of
California -
State Lands
Commission
Portion of
SF Bay
lands
between
City of
Newark and
City of
Menlo Park
Various N/A
Subterranean
Transbay
Pipeline
within
Concrete
Tunnel
3/1/2010 2/28/2035 N/A N/A N/A N/A
Filoli Center
Filoli Center
near 86
Cañada
Road
Woodside 10,323,720 Watershed
Protection 12/1/1982 11/30/2022 N/A $1.00 N/A N/A
Total City
as Tenant
LEASES:
13 ANNUAL
RENTAL
COSTS
$4,216,204.12
42 EXHIBIT B
CITY AS TENANT - CURRENT LICENSE AGREEMENTS
Landlord Property
Address City
Area
(Square
Feet)
Type/Use Start
Date End Date Extension
Options
Annual
Rent
Rent
Adjustment
Adjustment
Frequency
Alameda
County
Sunol Ridge
(APN: 96A-
120-1-1)
37000
Palomares
Road
Castro
Valley N/A
Communications
Site - Antennas,
Microwave,
and/or Radio
11/1/2020 10/31/2025 None $38,480.00 4% Annually
Alameda
County
Crane Ridge
(APN: 99A-
2540-7-1)
14300 Mines
Road
Livermore N/A
Communications
Site - Antennas,
Microwave,
and/or Radio
11/1/2020 10/31/2025 None $29,090.00 4% Annually
American
Towers
LLC
300 Radio
Road
(San Bruno
Mountain)
Daly City N/A
Communications
Site - Antennas,
Microwave,
and/or Radio
8/1/2017 7/31/2024 Three, 5-year
extensions $26,672.76 4% Annually
Joaquin
Bear, LLC
Cedar Ridge
(APN: 083-
010-075)
16601 White
Fang Drive
Sonora N/A
Communications
Site - Antennas,
Microwave,
and/or Radio
10/1/2020 9/30/2028 None $29,181.96 3% Annually
43 Landlord Property
Address City
Area
(Square
Feet)
Type/Use Start
Date End Date Extension
Options
Annual
Rent
Rent
Adjustment
Adjustment
Frequency
Crown
Castle
(formerly
TriStar
Investors
LLC)
2201 Blue
Gum Avenue
(BU 819990,
Site Modesto
2, App. No.
297144)
Modesto N/A
Communications
Site - Antennas,
Microwave,
and/or Radio
11/1/2020 10/31/2025 Four, 5-year
extensions $21,562.50 3% Annually
Union
Pacific
Railroad
Company
Union Pacific
Mile Post
36.04 on the
Oakland
Subdivision
Branch at or
near Sunol,
California
Sunol N/A Water Pipeline
Crossing 7/1/2014 6/30/2023 N/A $ N/A N/A
Total
City as
Tenant
LEASES:
6 MONTHLY
RENTAL
COSTS
$144,987.22
44 EXHIBIT C
2021 AGREEMENTS ISSUED TO PG&E
PG&E Project Name Date Issued by
SFPUC Agreement Type
PG&E Vegetation Management Mission Alameda County 2/2/2021 Consent Letter Issued PG&E DE21-132-P5 Crystal Springs Valve Lot Pipe Test 5/5/2021 Work Authorization Letter Issued PG&E DE21-109-1 San Andreas Valve Lot Pipe Test 5/5/2021 Work Authorization Letter Issued PG&E Gas Line R-1123 & T-1442 Replace & Strength Test - Hillcrest Blvd - Millbrae 5/7/2021 P4452 License Issued PG&E Vegetation Management Sunol 1101 12kV Dist Line
Routine 2021 5/7/2021 Consent Letter Issued
PG&E Vegetation Management Jefferson Carolands Electrical Distribution 5/7/2021 Consent Letter Issued
PG&E Skyline Blvd. Gas Line Testing 6/10/2021 P4512 License Issued PG&E Vegetation Management Jefferson-Hillsdale Junction 006/037 6/23/2021 Work Authorization Letter Issued
PG&E San Pedro Valley Reg Station Strength Test 7/26/2021 P4515 License Issued PG&E Vegetation Management Los Esteros-Metcalf 230kV
Annual Maintenance 2021 8/20/2021 Two Work Authorization Letters Issued
PG&E I-665 Canada Road ILI 8/31/2021 P4535 License Issued PG&E Vegetation Management Emerald Lake 0401 9/10/2021 Two Consent Letters Issued PG&E Vegetation Management Jefferson Hillsdale Junction 60kV Elec Line 9/22/2021 Consent Letter Issued
PG&E ILI I-590 Crystal Springs Station L-132 10/5/2021 Work Authorization Letter and License P4543 Issued
PG&E Vegetation Management Crystal Springs Tap 10/6/2021 Work Authorization Letter Issued PG&E L-109 Strength Test T-1553 10/8/2021 P4523 License and Amendment Issued
45 PG&E Project Name Date Issued by
SFPUC Agreement Type
PG&E Vegetation Management San Antonio Creek Reservoir
Electric Transmission Lines 11/1/2021 Work Authorization Letter Issued PG&E Vegetation Management Sneath Lane Half Moon Bay 11/5/2021 Work Authorization Letter Issued PG&E Vegetation Management Monte Vista Jefferson 230 kV 11/5/2021 Work Authorization Letter Issued PG&E Canada Road Vegetation Management and Crossarm
Replacement 11/12/2021 Consent Letter Issued
PG&E Tesla-Newark#2 Transmission Tower Painting 11/23/2021 Work Authorization Letter Issued PG&E Gas HP Regulator Rebuild 1155 Half Moon Bay Rd 12/7/2021 Consent Letter Issued PG&E B-Tags Hillsdale Junction/HMB 60kV 12/14/2021 Work Authorization Letter Issued