AVAILABILITY OF PUBLIC RECORDS:
All public record to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the City Clerk’s Office, City Hall located at 333 90 th Street, Daly City, CA during normal business hours, at the same time that the public records are distributed or made available to the legislative body.
CITY OF DALY CITY
Regular Meeting - CITY COUNCIL
AGENDA
Monday, November 24, 2025 - 7:00 PM
City Hall Council Chambers – 2nd Floor
City Hall 333 – 90th Street
Daly City, CA 94015
To watch the live telecast:
https://www.youtube.com/@DalyCityGov/streams, https://www.dalycity.org/agendas, or Comcast Ch. 27
PUBLIC PARTICIPATION
There are three ways to submit public comments: (1) submit written comments by meeting day, (2) submit written comments during the meeting, and (3) attend the meeting in person.
1. To submit written comments by meeting day, please email [email protected] and include “Public Comment” in the subject line. All written comments received by 4:00 pm on meeting day will be provided to the City Council prior to the meeting.
Please note: Any emailed comments received after 4:00 p.m. on the meeting date are not guaranteed to be received by the City Council prior to the meeting. Comments are not read aloud into the record.
2. During the meeting, you may visit www.dalycity.org/agendas to submit comments using the Public Comment form to address the City Council on a specific item, or during the public comment period, and such comments are delivered to the City Council and City Staff during the meeting, and may be read into the record at the time they are received.
3. To speak at the meeting in person, please complete a Speaker Card located at the entrance to the Council Chamber and submit it to a Staff Member as early in the meeting as possible.
Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting should call the office of the City Clerk at (650) 991-8078 as soon as possible.
CALL TO ORDER
The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah - my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.
PLEDGE TO THE FLAG:
Agenda – City Council
Monday, November 24, 2025
ROLL CALL:
APPROVAL OF MINUTES:
1. Regular Meeting of October 27, 2025
2. Regular Meeting of November 10, 2025
APPROVAL OF AGENDA:
3. Regular Meeting of November 24, 2025
ORAL COMMENT:
NOTE: Speakers are limited to two minutes, unless modified by the Mayor.
The Council cannot take action on any matter raised under this item.
CONSENT AGENDA
All items listed on the Consent Agenda are considered to be routine and may be approved by one roll call vote of the City Council. There shall be no separate discussion of the matters on the Consent Agenda unless requested by a member of the City Council. If discussion is required, that item will be removed from the Consent Agenda and will be considered separately at the end of the Agenda.
Resolutions:
4. Fiscal Year 2025 Annual Report on Collection and Use of Developer Public Facility Fees
5. Authorize City Manager to Execute Amendment No. 2 to the Funding Agreement with the City/County Association of Governments of San Mateo County for the Construction Phase of the Smart Corridor Extension Project
6. Accept and Appropriate $2,500 from North East Medical Services for Sponsorship of the Walk- About Program
7. Adopt Resolution to Supersede and Amend Recurrent and Part-Time Hourly Rates Schedule in Accordance with City Council Adopted Minimum Wage
8. Set Time and Place of Public Hearing - Amending Chapter 2.16 of the Daly City Municipal Code Re: Arts and Culture Commission (Set Time: 12/8/25)
9. Set Time and Place of Public Hearing – Amend Chapter 2.20 of the Daly City Municipal Code Re: Recreation Commission (Set Time: 12/8/25)
10. Authorize Real Estate Purchase Agreement with City and County of San Francisco for Land Required of the Vista Grande Drainage Basin Improvement Project
Agenda – City Council
Monday, November 24, 2025
11. Authorize License Agreement with the City and County of San Francisco for the Construction Staging Area of the Vista Grande Drainage Basin Improvement Project
12. Authorize License Agreement with the City and County of San Francisco to Construct a new Lake Merced Overflow Structure for the Vista Grande Drainage Basin Improvement Project
END OF CONSENT AGENDA
ORDINANCES:
13. Second Reading, Ordinance No. 1484, Repealing and Replacing Chapters 15.00, 15.08,
15.10, 15.12, 15.14, 15.16, 15.20, 15.22, 15.24, 15.32, 15.60, and 15.65 of Title 15 of the Daly City Municipal Code, Re: Building Code
STAFF: Rose Zimmerman
RECOMMENDATION: Adopt Ordinance by Roll Call Vote
APPOINTMENTS: Board/Commission Membership Committee Appointments
REPORTS:
14. Council Committee
15. City Council
16. Staff
ADJOURNMENT:
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
OCTOBER 27, 2025
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Note on Public Comments:
To provide public comments, members of the public have the option to- 1) attend in person, 2) email the City Clerk, or 3) submit comments through the public comment portal on the City’s website. Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting are instructed to call the office of the City Clerk at 991-8078 prior to the meeting.
Visit https://www.youtube.com/@DalyCityGov/streams to view the City Council meeting
CALL TO ORDER:
Mayor Daus-Magbual called the regular meeting to order at 7:06 P.M. and read the City’s Land Acknowledgement:
The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah -my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.
ROLL CALL: Councilmembers Present
Dr. Roderick Daus-Magbual, Mayor
Glenn R. Sylvester, Vice Mayor
Juslyn C. Manalo
Teresa G. Proaño
Councilmembers Absent
Pamela DiGiovanni
Staff Present
Thomas J. Piccolotti, City Manager
Rose L. Zimmerman, City Attorney
K. Annette Hipona, City Clerk
PRESENTATIONS:
Proclamation: Hispanic Heritage Month
(Nancy Rodriguez, Vice Chair of the Daly City Arts & Culture Commission; Members of the Nuestro Estilo Car Club)
Proclamation: Filipino American History Month
(Skyline College's Kababayan Learning Community ; Benny Menor, Seafood City; Joal Truong-Vargas; Bambu and Rocky Rivera of BeatRock Music)
Proclamation: Breast Cancer Awareness Month
APPROVAL OF MINUTES:
Regular Meeting of October 13, 2025
It was moved by Councilmember Manalo, seconded by Councilmember Proaño/ Vice Mayor Sylvester and carried to approve the minutes of October 13, 2025, as amended.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
OCTOBER 27, 2025
2 APPROVAL OF AGENDA:
It was moved by Councilmember Manalo, seconded by Councilmember Proaño, and carried to approve the agenda.
ORAL COMMENT:
Jim Wagstaffe acknowledged the First Amendment, especially the right to free speech, but also emphasized the importance of maintaining a good name and reputation. Jim cautioned that these freedoms shouldn't be compromised by false statements. Jim referred to City Manager Piccolotti and his staff as victims of attacks on their reputations.
CONSENT AGENDA:
It was moved by Councilmember Manalo seconded by Vice Mayor Sylvester and carried to approve the consent agenda with the exception of item #16, which was pulled for discussion.
Communications:
Accept 2025 QTR 3 Investment Report
Resolutions:
Revise Daly City Bicycle/Pedestrian Advisory Committee Bylaws
Resolution 25-140, Amending Resolution No. 02- 332 To Update The Meeting Frequency And Time For The Bicycle/Pedestrian Advisory Committee
Approve Professional Services Agreement to Revise the Planned Retreat Management Plan, Revision 1 for Mussel Rock Landfill
Resolution 25-141, Approving Professional Services Agreement With Tetra Tech To Revise The Planned Retreat Management Plan, Revision 1 For Mussel Rock Landfill
Approve Partnership with Thornton High School at the Pacelli Event Center
Resolution 25-142, Approving A Partnership With Thornton High School For Use Of The Pacelli Event Center For Graduation Ceremonies
Approve Partnership with In The Lab and Hoop Bus at the Pacelli Gymnasium
Resolution 25-143, Approving A Partnership With In The Lab And Hoop Bus To Host The Infinity 3x3 Invitational Basketball Tournament
Accept and Appropriate Zip Books Grant
Resolution 25-144, Accepting And Appropriating A $1,890 Zip Books Grant From The State Of California
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
OCTOBER 27, 2025
3 Approve Proposed Revisions of Building Permit Technician, Building Maintenance Worker I/II and Groundskeeper Gardener I/II Job Specifications (Civil Service)
Resolution 25-145, Adopting Revised Job Specifications of Building Permit Technician, Building Maintenance Worker I/II And Groundskeeper Gardener I/II
Adopt of Memorandum of Understanding and Salary Schedule between the City of Daly City and Police Officers Association
Resolution 25-146, Adopting Composite Summary Memorandum Of Understanding With The Daly City Police Officers Association (July 1, 2025 through June 30, 2028)
Adopt of Memorandum of Understanding and Salary Schedule between the City of Daly City and Police Management Association
Resolution 25-147, Adopting Composite Summary Memorandum Of Understanding With The Daly City Police Management Association (July 1, 2025 through June 30, 2028)
Approve Proposed Revisions to Resolution 20 -179 Adopting Benefits for Specific Executive Management Positions – Police Chief
Resolution 25-148, Amending Resolution No. 20- 179 Adopting Benefits For Specific Executive Management Positions – Police Chief
Check Registers
Check Registers for the Month of September 2025
Approve Employment Agreement with Cameron Christensen as Chief of Police
City Manager Piccolotti made a recommendation to approve an employment agreement for Cameron Christensen as Chief of Police for a five -year term, which includes severance protections.
Piccolotti emphasized Christensen’s extensive experience within the Police Department, highlighting his performance as Acting Chief for more than three years. During that time, Christensen showcased exemplary leadership and a strong commitment to public safety.
Chief Christensen expressed his gratitude to all those who have supported him throughout his career, including supervisors, peers, friends, community partners, family, and his parents. He also acknowledged the contributions of support staff, executive peers, the Council, and City Manager Piccolotti to his journey. Among those he recognized were two influential members of the community, Marie Villarosa and Tita Perla Ibarrientos, who have had a significant impact on him and the City. During the pinning ceremony, Christensen invited his family to stand alongside him, and he chose Mrs. Ibarrientos to pin on the Chief’s badge. The Council voiced its support for the City Manager’s appointment of Christensen as Chief of Police, praising his outstanding leadership and commitment to the community. Councilmember Manalo shared a message from former Councilmember Buenaventura, reaffirming support for Christensen in his new role as Chief.
It was moved by Councilmember Manalo, seconded by Vice Mayor Sylvester and carried by voice vote to adopt the resolution.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
OCTOBER 27, 2025
4 Resolution 25-149, Approving An Employment Agreement With Cameron Christensen To Serve As Chief Of Police
Mayor Daus-Magbual called for a recess at 8:50 PM and reconvened the meeting at 9:14 PM.
PUBLIC HEARINGS:
Public Hearing on the Censure of Councilmember Pamela DiGiovanni Pursuant to the City Council’s Internal Discipline and Censure Policy
Mayor Daus- Magbual outlined the purpose of the hearing, which is to determine whether the conduct of Councilmember DiGiovanni constitutes a violation of ethical standards, the Daly City Municipal Code (DCMC), or any other policies that govern the behavior of elected officials on the City Council. The Mayor introduced Richard Pio Roda as Special Legal Counsel for the hearing, whose role is to advise the Council on procedural matters and ensure that the censure hearing is carried out lawfully and equitably.
City Clerk Hipona read Councilmember DiGiovanni’s written remarks regarding the censure. In her email, DiGiovanni cited health risks as the reason for her absence, mentioning that the hearing could possibly contribute to those risks. DiGiovanni requested that the censure hearing and all things related be halted permanently and noted her public service as a City Councilmember since 2018.
Mayor Daus-Magbual inquired if any Councilmembers had objections to moving forward with the public hearing. Hearing none, Mayor Daus-Magbual outlined the procedure for the hearing.
City Attorney Zimmerman presented the findings of the independent investigation stemming from substantiated claims by City employees regarding ethical misconduct and violations of the DCMC by DiGiovanni. Zimmerman provided a timeline of events leading up to the censure hearing . In April 2023, the first independent investigation confirmed findings of harassment and abuse of power by DiGiovanni , leading to a formal Admonishment via Resolution 24-21 issued in January 2024. Between March and August 2025, Human Resources received formal complaints from City employees regarding DiGiovanni’s behavior, prompting another independent investigation in April 2025; this was subsequently reviewed by the Ethics Committee, consisting of the Mayor and the Vice Mayor. DiGiovanni received notices of the Censure Hearing in October, and the Ethics Committee granted DiGiovanni’s request to reschedule the hearing to tonight’s meeting . Zimmerman summarized the allegations against DiGiovanni, which were corroborated by the investigation. These allegations included abuse of authority, harassment and disruptive conduct, hostility toward a fellow Councilmember, noncompliance with prior Admonishment, refusal to participate in the investigation, and violations of the DCMC. Staff recommended that the Council affirm the findings of the investigation and consider the appropriate action s. Possible actions included either a Formal Public Censure, a second notice of Admonishment , or no immediate disciplinary action.
Zimmerman provided the Conditions of Public Censure for the Council’s consideration.
Mayor Daus-Magbual inquired if Councilmember DiGiovanni had any statements or rebuttals; there were none provided. Zimmerman responded to questions about the opportunities given to DiGiovanni to participate in or comment during the investigation, to which she refused. She clarified the details surrounding DCMC 2.02.090 and 2.02.080, including their adoption timeline, the timeframe of the incidents, and specifics of the allegations from the 2023 investigation. Zimmerman also addressed that DiGiovanni refused to participate in the 2023 investigation, any repercussions faced due to the findings, and that DiGiovanni did not compl y with any of the recommended disciplinary actions from the 2024 Admonishment.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
OCTOBER 27, 2025
5 Nikki Hall, the independent investigator, responded to questions and confirmed that there were multiple outreach attempts to DiGiovanni for the investigation and that no one in the City interfered with the investigation in any way.
Councilmember Proaño confirmed the incident involving her and Councilmember DiGiovanni as detailed in the investigation report. Proaño expressed that DiGiovanni's treatment of her has been part of a troubling pattern observed at various events since Proaño joined the Council. Councilmember Manalo thanked both the Mayor and the Vice Mayor for their efforts on the Ethics Committee, acknowledging their role in bringing this important matter to the attention of the City Council.
Mayor Daus-Magbual opened the public hearing.
Robert Quinn voiced support for Councilmember DiGiovanni, noting her consistent backing of the police, firefighters, nurses, and Seton Hospital. He referred to DiGiovanni as an upright and ethical person and expressed his shock at the allegations against her. Quinn asked the Council to show mercy towards DiGiovanni if they choose to move forward with the censure.
The Council engaged in deliberation regarding the item, addressing a variety of points and concerns. They examined the ongoing pattern of misconduct and abuse of power attributed to Councilmember DiGiovanni, deliberating on potential ethical violations and the varying impacts of her words and actions on individuals. They acknowledged the numerous allegations, including those reported in 2023 by several staff members and other individuals, including witnesses, and expressed concerns about liability involving personnel. The conversation also touched on the privilege of serving as an elected Councilmember, emphasizing the importance of upholding that position by maintaining high standards and accountability. The Council stressed the need for accountability, especially considering DiGiovanni's refusal to apologize, correct past behavior or comply with the Admonishment recommendations. They recognized the courage it takes for individuals to come forward about misco nduct, particularly when it involves someone in a position of power. Additionally, they discussed the need to protect employees and ensure a healthy workplace environment, suggesting that training could be beneficial to help DiGiovanni better understand City procedures. Furthermore, the Councilmembers expressed a wish for reconciliation with DiGiovanni, hoping she would take meaningful steps to take responsibility for her actions. Considering all the information presented, Vice Mayor Sylvester was inclined to pursue a formal censure of Councilmember DiGiovanni, a sentiment that was echoed by the entire Council.
It was moved by Vice Mayor Sylvester, seconded by Councilmember Proaño and carried by unanimous roll call vote to take the action of issuing a formal censure of Councilmember DiGiovanni.
Legal Counsel Pio Roda addressed inquiries regarding the hearing procedures . City Attorney Zimmerman addressed questions on how the five proposed conditions of public censure were determined, potential consequences of failing to comply with the agreed-upon conditions, mandatory HR-coordinated trainings, whether additional Conditions could be added to the Censure, confirmed the allegation of City vehicle misuse in 2023, and the types of HR trainings to be given to DiGiovanni.
Councilmember Sylvester proposed adding three conditions to the censure, including prohibiting the use of a City vehicle for six months and requiring DiGiovanni to initial ordinances related to DCMC
2.02.080 and 2.02.090 upon receipt, or have a witness present during the transaction. Councilmember Proaño emphasized the importance of DiGiovanni issuing an apology, while Councilmember Manalo stressed that such an apology is crucial for achieving reconciliation. Pio Roda expressed his opinion that DiGiovanni has the First Amendment protection against compelled speech and recommended encouraging
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
OCTOBER 27, 2025
6 an apology rather than making it a condition. The Council concurred with these amendments.
It was moved by Vice Mayor Sylvester, seconded by Mayor Daus -Magbual and carried by unanimous roll call vote to adopt the resolution of censure, with the additional conditions , for a total of eight conditions.
Resolution 25-150, A Resolution Of The City Council Of The City Of Daly City Censuring Councilmember Pamela DiGiovanni For Violations Of The Daly City Municipal Code, City Policies, And Ethical Standards In Accordance With The City Of Daly City’s Censure Policy
COMMUNICATIONS:
Use Permit UPR -01-23-016044 and Design Review DR -01-23-016046 – Service Station Reconstruction at 101 South Mayfair Avenue
Associate Planner Sam Fielding presented a proposed use permit for a new service station, convenience store, and carwash at the subject site. Fielding addressed questions on traffic signal visibility, noise standards for the carwash, the sound barrier wall, the smog check garage, and the construction process.
It was moved by Councilmember Manalo, seconded by Vice Mayor Sylvester and carried by unanimous roll call vote to adopt the resolution, with the amendment to increase the permit for two years.
Resolution 25-151, Adopting Findings Of Fact And Imposing Conditions Of Approval On Use Permit UPR-01-23-016044 And Design Review DR-01-23-016046 For Service Station Reconstruction At 101 South Mayfair Avenue
REPORTS:
Council Committee
Illegal Dumping Committee (Proaño)
Council
Councilmember Manalo reported attendance at the following events: the LifeMoves event celebrating Filipino American History Month and Hispanic Heritage Month, where she was a guest speaker; the South San Francisco Chamber of Commerce annual event, congratulating Dani on becoming the first Filipina board member; the 10
th Anniversary of Futurelab, a Genentech initiative; the 10th Anniversary of the Middle College Program at Skyline College , acknowledging Councilmember Proaño and Middle College graduate Rheanna Mariano; the Top of the Hill Festival, congratulating City Manager Piccolotti and his staff Leilani Ramos, Maybelle Manio, and Rheanna Mariano, and the City staff on their work, and acknowledging the small businesses and residents for standing together in joy; the Seafood City late night destination event, along with daughter Juselle, also attended by the Mayor ; the bocce ball tournament, thanking Director Brown and the Recreation team, and congratulating the seniors for their victory; the Woodrow Wilson PTA Harvest Festival, acknowledging the participating businesses; the Council of Cities Dinner, alongside Mayor Daus -Magbual and Councilmember Proaño ; the 1 st Anniversary of Kapwa Kultural Center, where Manalo and Mayor Daus-Magbual received an award; the Dia de los Muertos celebration at City Hall, thanking the vendors and the community for their involvement; the San Mateo Board of Supervisors meeting which recognized Domestic Violence Prevention M onth and Filipino American History Month, and where Manalo and Tita Perla Ibarrientos were honored with a proclamation for the latter; and the Bayanihan Gala event, alongside her husband, where Manalo and Romeo Marquez were honored for their work in government and public service. Manalo also thanked Assemblymember
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
OCTOBER 27, 2025
7 Haney for giving her a recognition at the Gala . Councilmember Manalo looked forward to sponsoring a resolution for the José Rizal statue at Gellert Park, acknowledging Mayor Daus-Magbual for co-sponsoring the item. Manalo also thanked Mayor Daus-Magbual for his energy, positivity and leadership.
Mayor Daus-Magbual expressed his gratitude to City staff for their work in organizing various recent events, including ¡Pachanga, Kasayahan, the Top of the Hill Festival, and the Dia De Los Muertos celebration.
Councilmember Proaño acknowledged Mayor Daus -Magbual’s leadership and highlighted the success of the Top of the Hill Festival.
Vice Mayor Sylvester commended and thanked City staff for their execution of the Top of the Hill Festival and acknowledged City Manager Piccolotti for his leadership.
Staff
City Manager Piccolotti acknowledged the Council’s leadership and recognized City Manager staff Maybelle Manio, Leilani Ramos , and Rheanna Mariano, as well as the Department Heads, for their dedicated efforts throughout the year in organizing the Top of the Hill Festival.
ADJOURNMENT:
Mayor Daus-Magbual adjourned the meeting at 11:22 P.M. in memory of Carol Simmons.
Approved as submitted, this 10 th
City Clerk
day of November 2025.
Dr. Roderick Daus-Magbual
Mayor
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
NOVEMBER 10, 2025
--------------------------------
Note on Public Comments:
To provide public comments, members of the public have the option to- 1) attend in person, 2) email the City Clerk, or 3) submit comments through the public comment portal on the City’s website. Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting are instructed to call the office of the City Clerk at 991-8078 prior to the meeting.
Visit https://www.youtube.com/@DalyCityGov/streams to view the City Council meeting
CALL TO ORDER:
Mayor Daus-Magbual called the regular meeting to order at 7:00 P.M. and read the City’s Land Acknowledgement:
The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah -my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.
ROLL CALL: Councilmembers Present
Dr. Roderick Daus-Magbual, Mayor
Glenn R. Sylvester, Vice Mayor
Pamela DiGiovanni
Juslyn C. Manalo
Teresa G. Proaño
Staff Present
Thomas J. Piccolotti, City Manager
Kelly Schott, Assistant City Attorney
K. Annette Hipona, City Clerk
Staff Absent
Rose L. Zimmerman
PRESENTATIONS:
Proclamation: National Native American Heritage Month
Mayor Daus-Magbual relayed a message from Sylvia Payne, San Andreas Lake Chapter NSDAR, Daughters of the American Revolution, inviting everyone to visit the Sanchez Adobe Interpretive Center in Pacifica to learn about the history of the Ramaytush Ohlone peoples.
Proclamation: DJ Bitesize Day
(DJ Bitesize and family)
APPROVAL OF AGENDA:
It was moved by Councilmember Proaño, seconded by Councilmember Manalo, and carried to approve the agenda.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
NOVEMBER 10, 2025
2 ORAL COMMENT:
The following members of Faith In Action Bay Area (FIABA) expressed concerns about the fears and uncertainties faced by the immigrant community due to ongoing ICE activity and enforcement. These fears, arising from current immigration policies, include the thr eat of ICE raids, detainment, and deportation. Speakers urged the Council to disseminate information about the Rapid Response Hotline (203-666-4472) and Network to reassure all community members that they are not alone during this difficult time, and to fe el supported and emboldened by their local government. They emphasized the negative impacts these fears have on families, daily activities, public gatherings, and overall mental health. Some speakers shared personal experiences in dealing with ICE. Melissa Mejia recounted her father’s detainment by ICE and her family being evicted from their home, while Fernanda Areas discussed how the fear of raids affects everyday activities such as going to school or grocery shopping. Sandra Pryor shared the emotional toll on children who fear losing their parents, while volunteer Ariana Faina relayed people’s fear of leaving their homes. Bob Beggs stressed the importance of the hotline in protecting the dignity and safety of residents, while student Sandro Bautista voiced the need for support for the undocumented community.
Lorena Melgarejo, Director of FIABA, pointed out the hotline's long-standing presence and the network’s efforts to support families affected by ICE, including verifying information through the hotline and accompanying people to their immigration court appointments. To date, the network has accompanied 525 families to court proceedings and has distributed cards to the community that list their constitutional rights.
Lorena Melgarejo and Abby Taylor pointed out that Daly City has the highest rate of detentions in the County and expressed a desire to have a conversation with the Mayor to raise awareness about available resources and to support families in avoiding homelessness. Speakers thanked the Council for their time and for considering their requests.
Irene Areas Fernanda Areas Lorena Melgarejo, Director of FIABA Albania Fuentes Wendy Cruz Andrea Mazanegos
Brennan Duck Ariana Faina Xochitl Espinoza
Adel Manansala San Sandro Bautista Bob Beggs
Nicole Beggs Sandra Pryor Melissa Mejia
Abby Taylor
Ray Satorre, Planning Commissioner, referred to former Mayor Buenaventura and spoke about the City being a sanctuary for migrants. Satorre noted Mayor Lurie’s diplomatic efforts and cooperation with ICE and offered PBRC’s assistance. Ray mentioned that if there is no criminal activity, the sanctuary city can protect its citizens, and recommended that the City open a dialogue with ICE.
CONSENT AGENDA:
It was moved by Councilmember DiGiovanni, seconded by Councilmember Manalo and carried to approve the consent agenda except item #5, which was pulled for discussion.
Resolutions:
Adopt of Memorandum of Understanding and Salary Schedule between the City of Daly City and San Mateo County International Association of Firefighters Local 2400
Resolution 25-152, Adopting Composite Summary Memorandum Of Understanding With The San Mateo County International Association Of Firefighters Local 2400 (July 1, 2025 through June 30, 2028)
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
NOVEMBER 10, 2025
3 Approve Resolution Designating Serramonte Library Plaza for the Proposed "Dr. José Rizal Legacy" Sculpture Project
Councilmember Manalo expressed pride in sponsoring the project alongside Mayor Daus-Magbual, recommending that Serramonte Library Plaza be designated as the site for the proposed Dr. José Rizal sculpture. Manalo shared insights about Dr. Rizal, a national hero of the Philippines, who played a vital role in the country's quest for independence while making notable contributions to its culture and society.
She acknowledged the partnership with the Dr. José Rizal Legacy International Foundation for the sculpture, which aims to be a beacon of inspiration and a catalyst for positive change. Manalo also recognized the efforts of Mayor Daus-Magbual, PBRC, Commissioner Satorre, and Tita Polly for their involvement in bringing this historic monument to Daly City. Additionally, she expressed her gratitude to City Manager Piccolotti and Assistant to the City Manager Ramos for their participation in meetings related to the sculpture. Mayor Daus-Magbual, co-sponsoring the initiative, thanked Councilmember Manalo for her sponsorship of the project. The Council showed its support for the project as well as for future endeavors that celebrate Daly City’s rich diversity, reassuring the community that there would be no financial burden since the project is funded through donations to a nonprofit organization.
Polly Cortez, Project Lead with the Dr. José Rizal Legacy International Foundation, provided information on the materials and the cast used for the monument, and acknowledged the Filipino American organizations that rallied behind the project. Polly expressed gratitude for the Council’s backing and collaboration, recognizing the donors whose generosity made the project possible.
Ray Satorre of PBRC called Dr. Rizal one of the greatest national heroes of the Philippines, noting his enduring spirit for freedom and justice for Filipinos . Satorre also noted that Daly City has one of the largest populations of Filipino Americans in the US.
It was moved by Councilmember Manalo, seconded by Mayor Daus-Magbual and carried by voice vote to adopt the resolution.
Resolution 25-153, Designating Serramonte Library Plaza For The Proposed Dr. José Rizal Legacy Sculpture Project
Set Time and Place for Public Hearing on Community Development and Housing Needs
Resolution 25-154, Setting Time And Place Of Public Hearing Re: Assessment Of Community Development And Housing Needs
Authorize to Approve the Revival of the Exclusive Negotiating Agreement with JM McLennan Development for the Pacific Plaza Site (1837 Junipero Serra Blvd., Daly City, CA.)
Resolution 25-155, Authorizing The Revival Of An Exclusive Negotiating Agreement With J M McLennan Development For The Redevelopment Of 1837 Junipero Serra Boulevard
Check Registers
Check Registers for the Month of October 2025
END OF CONSENT AGENDA
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
NOVEMBER 10, 2025
4 PUBLIC HEARINGS:
Adoption of the 2025 California Building Standards Code (CBSC) with Local Amendments; Repeal and Replace of Title 15, Daly City Municipal Code
Chief Building Supervisor Mario Sigala provided the staff report to update the CBSC with the City’s local amendments. In response to questions, staff noted that the CBSC amendments do not impact CEQA guidelines.
It was moved by Councilmember Manalo, seconded by Mayor Daus- Magbual and carried to open the hearing: There were no public comments.
It was moved by Vice Mayor Sylvester, seconded by Councilmember Manalo and carried to close the hearing:
It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried for the City Attorney to read the ordinance by title only.
Mayor Daus-Magbual introduced the ordinance.
Ordinance 1484, Repealing And Replacing Chapters 15.00, 15.08, 15.10, 15.12, 15.14, 15.16,
15.20, 15.22, 15.24, 15.32, 15.60, And 15.65 Of Title 15 Of The Daly City Municipal Code
COMMUNICATIONS:
Finding of Public Convenience and Necessity PCN-08-25-016871 to Sell Alcoholic Beverages for Off- Site Consumption at Grocery Outlet at 6100 Mission Street
Planning Manager Michael Van Lonkhuysen introduced the request for a Type 21 liquor license from Grocery Outlet for their new store on Mission Street. Steve Rawlings, the applicant representative, presented the store’s floor plan, which spans 13,000 square feet, highlighting the layout and location of the alcohol display and sales area. In response to questions, Rawlings compared the size of the Daly City location to that of the South City store. Rawlings also addressed various concerns, including store security, safety measures, theft prevention strategies, store layout, the design of the alcohol display, access to the lot, the number of parking spaces available, any renovations made to the building, and the variety of alcoholic products Grocery Outlet plans to sell.
Van Lonkhuysen addressed questions on the number of stores with alcohol licenses within the census tract, and whether the prior business at the site, Walgreens, had liquor license.
It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried by unanimous roll call vote to approve the PCN and adopt the resolution.
Resolution 25-156, Adopting Findings In Response To An Application For A Type 21 Liquor License – Grocery Outlet At 6100 Mission Street
REPORTS:
Council Committee
Meeting with the Northern Carpenters (Daus-Magbual/Manalo)
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
NOVEMBER 10, 2025
5 Council
Councilmember Proaño reported attendance at the following events : the well-attended Veterans Day event, thanking City Manager Piccolotti and City staff for a beautiful presentation and lunch , and recognized Air Force Veteran Malcolm Conway who sang at the event ; Holy Angels’ Harvest Dinner celebration, along with Councilmember Manalo; and Town of Colma’s Veterans Day Event with the Daly City Colma Chamber of Commerce, in which Proaño serves as Director, and recognizing the organization who provided a quilt presentation to the veterans.
Councilmember Manalo acknowledged Faith In Action ’s presence at tonight’s meeting and thanked staff for ensuring the City’s values are stated on the website, connecting the community to valuable resources such as the Rapid Response H otline, and noting the City’s collaborative work with County.
Manalo reported attendance at the following events: the recent Recreation Commission meeting, where Manalo gave the oath to new Commissioner Adonis Marcelino who is a voice for Daly City businesses; the Vagina Monologues play, alongside Mayor Daus-Magbual, thanking him for his show of solidarity to end violence against women; the Teamsters Local 350 event, congratulating new leader Robert Sandoval, along with Assemblymember Stefani, Senator W iener, Assemblymember Haney, and Supervisor Canepa; the Halloween celebration at S erramonte Center alongside Supervisor Canepa, Councilmember Proaño, and Manalo’s children; the swearing-in ceremony for Dom Gamboa with Broadmoor Police, along with Vice Mayor Sylvester and his wife ; the Harvest Festival along with Councilmember Proaño at Holy Angels Church; FALEO’s first annual tournament at Classic Bowl; the Veterans Day event, thanking City Manager Piccolotti for an excellent job honoring and creating space for the veterans every year; the Seniors’ Tea Party at Lincoln Park, giving kudos to the Recreation Staff; the Project Read event in South San Francisco, acknowledging the DCPLA for competing with the other teams; the Pangasinan Day community celebration with the Pangasinans, alongside Mayor Daus-Magbual; and the s top sign celebration with Zita Manor residents and the community, acknowledged City Manager Piccolotti for his leadership, along with Director Chiu.
Councilmember DiGiovanni reported attendance at the following events: Assemblymember Stefani’s event for scam prevention at the Colma Community Center for seniors, acknowledging the new law passed by Governor Newsom, and the police for their presence; and the celebration of the stop sign installation at Zita Manor, conveying resident Marian’s appreciation , and thanking the Council, City Manager Piccolotti, Director Chiu and City Engineer Chan for their efforts.
Mayor Daus-Magbual reported attendance at the following events : the M ayoral Walk at City Heights, thanking City Manager Piccolotti and staff Maybelle Manio and Leilani Ramos for supporting small businesses, and meeting with owners of Chibog, House of Silvana s, California School of Martial Arts, Shine Thai Restaurant, and Councilmember Proaño, who represented the Chamber of Commerce , alongside Adrienne Tissier. Dr. Daus -Magbgual joined Councilmember Manalo and the Yuchengco Philippine Studies Program to celebrate their 25th year of Philippine Studies at USF, acknowledging their outgoing C hair James Zarsadiaz for collaborating on a great program with Pulitzer Prize winner Jose Antonio Vargas. The Mayor commended Vargas for his work with Define American and drawing attention to the experiences of undocumented immigrants in the US, and for his interview with Maria Ressa. Dr.
Daus-Magbual recognized Maria Ressa as the first Philippine -born Nobel Peace Prize recipient , spoke about her book How to Stand Up to a Dictator, and her work in holding the people controlling social media accountable, while calling for more transparency.
Staff
City Manager Piccolotti recognized staff at all levels for their hard work. Piccolotti informed the Council about updating the website based on the Mayor’s recommendation and acknowledged receipt of the information regarding the Rapid Response Hotline.
CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
NOVEMBER 10, 2025
6 ADJOURNMENT:
Mayor Daus-Magbual adjourned the meeting at 9:46 P.M. in memory of Lauren Craven, Ronald J.
Artale, Marico Calingo Enriquez, and the victims of the typhoons in the Philippines and Jamaica. Vice Mayor Sylvester noted he would defer the adjournment in memory of Laura Walsh’s mother to the next City Council meeting.
Approved as submitted, this 24 th
City Clerk
day of November 2025.
Dr. Roderick Daus-Magbual
Mayor
City Council Meeting Agenda Report Item # _____
Meeting Date: November 24, 2025
Subject: Fiscal Year 2025 Annual Report on Collection and Use of Developer Public Facility Fees
Recommended Action
It is recommended that the City Council a pprove the annual report on the collection and use of Developer Public Facility Fees for Fiscal Year 2025.
Discussion
AB 1600 Developer Public Facility Fees are revenues derived from developer fees that are restricted to infrastructure expenditures for expansion and enhancements, necessitated by new development .
The fees generate funding for use for the following infrastructure elements:
• Police facilities and equipment
• Public Library facilities
• Fire facilities and equipment
• Recreation facilities
• City administrative facilities
• City street and sidewalk improvements
• Water production and distribution facilities
• Wastewater collection and treatment facilities
• Storm drain collection and dispersal facilities
The use of the fees is established in the City’s Capital Budget during each budget cycle. These fees provide a portion of funding for various eligible projects in priorities established by the adopted budgets.
State law requires the City to segregate its public facility fee revenue and not commingle it with other City funds. To meet this requirement, the City has established a separate Public Facility Fees Fund specifically to track the collection and use of public facility fees and to allocate interest earned. State law also requires this annual report be brought before the governing body for approval.
In November 2024, Council approved an updated nexus study and rates for all fees except for the hotels. Any current open applications at the time for Building were grandfathered in to keep the same rate while any new applications taken after January 27, 2025 would start to be collected at the new rates. As of June 30, 2025, no revenue received was utilizing the new rates . Staff will continue to evaluate these fees to provide Council an update once these new fees begin to be collected.
Fiscal Impact
The balance in this fund as of June 30, 2024, was $5,015,446. During Fiscal Year 2025, r evenues totaling $760,767 were received from developer fees and interest of $248,963 was earned. A total of $941 was transferred out of the AB1600 fund to the capital improvement fund for storm drain use ; and $95,919 was transferred back to the AB1600 fund from projects that did not end up utilizing all the funds. The ending balance in the fund as of June 30, 2025, was $6,120,153.
Attached is a summary of the activity in the fund. Complete details on all capital projects funded by Public Facility Fees can be found in the City's Capital Budget.
City Council Agenda Report
Fiscal Year 2025 Annual Report on Collection and Use of Developer Public Facility Fees Meeting Date: November 24, 2025
Summary/Conclusion
Staff recommends the City Council approve the annual report on the collection and use of developer Public Facility Fees for Fiscal Year 2025.
Staff is available to provide any additional information desired by the Mayor or Councilmembers.
Respectfully submitted,
Timothy J. Nevin
Assistant City Manager/ Interim Director of Finance &
Administrative Services
Attachment: Fiscal Year 2025 Public Facility Fees Annual Report
City of Daly City
Fiscal Year 2025 Public Facility Fees Annual Report
July 1, 2024 though June 30, 2025
Received
through
6-30-24*
Expended
through
06-30-24
06-30-24
BALANCE
2024-2025
Revenue**
Interest
Earned
Interfund
Transfers Out
6-30-25
BALANCE
General Fees:
Water Improvement Fees 3,793,803 1,056,063 2,737,740 62,698 89,898 - 2,890,336 Administration/Citywide Fees 1,861,060 1,803,566 57,494 32,819 2,899 - 93,212 Fire Fees 1,032,307 1,601,200 (568,893) 20,472 - - (548,421) Police Fees 2,567,923 2,363,094 204,829 84,880 9,300 - 299,009 Library Fees 2,256,818 1,763,496 493,322 84,345 18,544 - 596,211 Sewer System Improvements 310,267 249,177 61,090 - 1,961 - 63,051 Parks & Rec Fees 2,443,594 3,731,809 (1,288,215) 112,461 - - (1,175,754) Sub-Total 14,265,772 12,568,405 1,697,367 397,674 122,602 - 2,217,643 Storm Drain Fees:
South Palisades 11,123 56,806 (45,684) 33 - - (45,651) Bayshore 567,004 820,526 (253,522) 140,845 - 941 (113,619) Colma Creek 1,572,284 286,934 1,285,350 6,170 41,459 - 1,332,979 Crocker 749,973 49,200 700,773 6,478 22,704 - 729,954 Vista Grande/Lake Merced 990,453 979,863 10,589 1,759 396 - 12,744 Sub-Total 3,890,835 2,193,330 1,697,506 155,284 64,560 941 1,916,408 Roadway Fees:
Street Zone 1- Bayshore 315,605 - 315,605 69,937 12,376 - 397,918 Street Zone 2 - Pen. Gateway 1,665 1,674 (9) - - - (9) Street Zone 4 - Crocker 373,166 288,565 84,601 1,038 2,749 - 88,388 Street Zone 5 - Crocker St 33,217 33,395 (178) - - - (178) Street Zone 8 - Crocker St 148,534 149,248 (714) - - - (714) Street Zone - Citywide 6,286,414 5,065,145 1,221,269 136,834 46,676 (95,919) 1,500,698 Sub-Total 7,158,601 5,538,028
1,620,573 207,808 61,802 (95,919) 1,986,102 Total Public Facility Fee Fund 20: 25,315,208 20,299,762 5,015,446 760,767 248,963 (94,978) 6,120,153 - -
Project
AB1600 Funds
Expended
Interfund
Transferred
Storm Drain Master Plan 941 941 Return unspent funds- John Daly Streetscape - (87,980) Return unspent funds - Serramonte Callan Signals - (7,939) Total 941 (94,978)
Complete details on all capital projects funded by public facility fees can be found in the City's Capital Budget. *Includes interest earned and rounding adjustments.
**Still collecting for projects that were grandfathered into rates prior to update in January 2025
City Council Agenda Report Item # _____
Meeting Date: November 24, 2025
Subject: Authorize City Manager to Execute Amendment No. 2 to the Funding Agreement with the City/County Association of Governments of San Mateo County for the Construction Phase of the Smart Corridor Extension Project
Recommended Action
Staff recommends the City Council authorize the City Manager to execute Amendment No. 2 to the Funding Agreement with the City/County Association of Governments of San Mateo County (C/CAG) for the construction phase of the Smart Corridor Extension Project.
Background
C/CAG is sponsoring the San Mateo County Smart Corridor Project, an Intelligent Transportation Systems (ITS) project that extends along El Camino Real and major local streets in San Mateo County connecting to US 101 and I-280. The project enables cities and the California Department of Transportation (Caltrans) to proactively manage daily traffic and non-recurring traffic congestion caused by diverted traffic due to major incidents on the freeway.
The current phase of the Smart Corridor Project will extend north into Daly City, Brisbane and Colma. The project will include the deployment of an interconnected traffic signal system, closed circuit video cameras, trailblazer/arterial dynamic message signs and vehicle detection systems.
These ITS elements will allow agencies to deploy incident response plans to manage traffic congestion on the Junipero Serra Boulevard and Bayshore Boulevard, the two primary parallel corridors to I-280 and US 101, respectively.
Discussion
On January 8, 2024, City Council authorized the funding agreement with C/CAG for the construction phase of the Smart Corridor Project, which will reimburse Daly City for costs up to $5,795,308 the City will incur to lead the construction phase of the project within the limits of City of Daly City and Town of Colma. The City will administer and manage selected civil contractor, provide construction inspection services and prepare project reporting to the various grantors.
On September 9, 2024, City Council authorized Amendment No. 1 to allocate an additional $1,038,596 for a total not-to-exceed amount of $6,833,904 to cover project construction costs.
The original funding agreement is set to expire on December 31, 2025. Construction of the project is ongoing, and additional time is needed to complete the construction and system integration. The term of the proposed Amendment No. 2 is for an additional 12-month period ending on December 31, 2026.
Authorize City Manager to Execute Amendment No. 2 to the Funding Agreement with the City/County of Association of Governments of San Mateo County for the Smart Corridor Extension Project Meeting Date: November 24, 2025
Fiscal Impact
There is no fiscal impact associated with this recommendation. Sufficient funds are available in the Capital Project San Mateo County Northern Cities Expansion project to fully fund the construction phase.
Summary/Conclusion
Staff recommends the City Council authorize the City Manager to execute Amendment No. 2 to the Funding Agreement with C/CAG for the construction phase of the Smart Corridor Extension Project.
Staff is available to provide any additional information desired by the Mayor or City Council Members.
Respectfully submitted,
Shirley Chan Richard Chiu, Jr.
Acting City Engineer Director of Public Works
Attachment: Amendment No. 2 to the Funding Agreement between C/CAG and City of Daly City and Town of Colma for Construction Phase of the Smart Corridor Extension Project
AMENDMENT NO. 2 TO THE FUNDING AGREEMENT
BETWEEN
CITY/COUNTY ASSOCIATION OF GOVERNMENTS OF SAN MATEO COUNTY AND
CITY OF DALY CITY
AND
TOWN OF COLMA
FOR
CONSTRUCTION PHASE OF THE SMART CORRIDOR EXTENSION PROJECT
WHEREAS, the City/County Association of Governments of San Mateo County (hereinafter referred to as “C/CAG”), the City of Daly City (hereinafter referred to as “City”), and the Town of Colma (hereinafter referred to as “Town”) (each a “Party” and collectively the “Parties”) are Parties to an Agreement dated March 1, 2024, specifying each Party’s obligations and responsibilities for the construction phase of the Smart Corridor extension project (hereinafter referred to as the “Agreement”); and
WHEREAS, C/CAG provided the City and Town a total of $5,795,308 in funding to cover project construction and related costs under the Agreement; and
WHEREAS, C/CAG and the City and the Town executed Amendment No. 1 on September 13, 2024 to allocate an additional amount of $1,038,596 for a total not-to-exceed amount of $6,833,904 to cover the high construction and related costs; and
WHEREAS, the Agreement term ends on December 31, 2025;
WHEREAS, the Parties have determined that additional time is needed to complete construction and system integration;
WHEREAS, the Parties desire to amend the Agreement as set forth herein.
IT IS HEREBY AGREED by the Parties as follows:
1. The term of the Agreement, as provided in Section 3 “Time of Performance,” shall be extended through December 31, 2026.
2. Except as expressly amended herein, all other provisions of the Agreement shall remain in full force and effect.
3. This amendment shall take effect on January 1, 2026.
[Signatures on the following page]
CITY OF DALY CITY TOWN OF COLMA
By: ___________________________ By: ___________________________ Thomas J. Piccolotti Daniel Barros
City Manager City Manager
Approved as to Form:
_______________________________ _______________________________ Rose Zimmerman Christoper Diaz
City Attorney City Attorney
CITY/COUNTY ASSOCIATION OF GOVERNMENTS OF SAN MATEO COUNTY
By: ___________________________
Sean Charpentier
C/CAG Executive Director
Approved as to Form:
By: ___________________________
Melissa Andrikopoulos
Legal Counsel for C/CAG
City Council Meeting Agenda Report Item # _____
Meeting Date: November 24, 2025
Subject: Accept and Appropriate $2,500 from North East Medical Services for Sponsorship of the Walk-About Program
Recommended Action
It is recommended the City Council accept a $2,500 sponsorship from North East Medical Services (NEMS), via Serramonte Center, and appropriate the funds for supplies and items needed to run the Walk-About Program provided in partnership by the City of Daly City – Department of Recreation Services, Serramonte Center and NEMS.
Background/Discussion
This past year NEMS became a partner with the City of Daly City – Department of Recreation Services and Serramonte Center to provide the Walk-About Program, a free walking and light exercise program to Active Adult/Seniors ages 50 and older to promote health, wellness, and social engagement in a safe and climate-controlled environment. The program is held at the Serramonte Center Food Court, near the indoor entrance to Dick’s Sporting Goods. It runs from 8:00am through 9:30am, every Friday from January - October. NEMS provided sponsorship monies in the total amount of $5,000 to the Walk-About Program, and of those funds $2,500 is ear-marked to assist with program supplies and materials to enhance the participant experience through the Department of Recreation Services.
Fiscal Impact
The $2,500 sponsorship from NEMS was not anticipated in the current Fiscal Year budget and will be appropriated into account number 10115700-52014 for Fiscal Year 2025-26.
Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or City Council.
Respectfully submitted,
Denise Brown
Director
City Council Meeting Agenda Report Item # _____
October
Meeting Date: November 24, 2025
Subject: Adopt Resolution to Supersede and Amend Recurrent and Part-Time Hourly Rates Schedule in Accordance with City Council Adopted Minimum Wage
Recommended Action
That the City Council adopt a resolution to amend the Recurrent and Part-Time Hourly Rates Schedule to reflect the City’s adopted minimum wage of $17.07/hour effective January 1, 2025, supersede Resolution No. 24-161, and establish the process for the 2026 minimum wage adjustment in accordance with Ordinance No. 1425.
Background
On November 12, 2024, the City Council adopted Resolution No. 24-161, updating the Recurrent and Part-Time Hourly Rate Schedule in anticipation of a potential state-mandated minimum wage increase under Proposition 32, which was then pending on the November 5, 2024 ballot.
Resolution 24-161 included projected wage rates based on the assumption that Proposition 32 would pass, which would have raised the statewide minimum wage to $18.00/hour effective January 1, 2025.
However, Proposition 32 did not pass, and therefore the minimum wage adjustment reverted to the City's local standard established by Ordinance No. 1425, which governs annual adjustments based on the Consumer Price Index (CPI) for the San Francisco-Oakland-San Jose region.
Discussion
In accordance with Ordinance No. 1425, the minimum wage is adjusted each January by the lesser of 3.5% or the CPI increase. Based on CPI data from August 2023 to August 2024, the applicable CPI increase was 2.7%, resulting in a 2025 minimum wage of $17.07/hour.
Although Resolution 24-161 anticipated a different rate, staff implemented and enforced the correct wage of $17.07/hour as of January 1, 2025, consistent with the ordinance. The wage schedule in effect complies with the law, but for administrative clarity and to ensure alignment between City records and actual implementation, staff recommends superseding Resolution 24-161.
This resolution will also reaffirm the City’s compliance with Ordinance No. 1425 and provide direction for adjusting the wage for calendar year 2026 using the same CPI-based process.
Based on CPI data from August 2024 to August 2025, the applicable CPI increase was 2.5%, resulting in a minimum wage of $17.50/hour effective January 1, 2026.
City Council Agenda Report
Subject: Adopt Resolution to Supersede and Amend Recurrent and Part-Time Hourly Rates Schedule in Accordance with City Council Adopted Minimum Wage Meeting Date: November 24, 2025
Fiscal Impact
Hourly rates have been increased to meet Daly City’s Minimum Wage Ordinance requirements.
Summary/Conclusion
The recommended resolution provides an accurate administrative record of the minimum wage in effect, ensures compliance with Daly City’s local wage ordinance, and prepares the City for the upcoming 2026 adjustment.
Staff recommends adoption of the resolution superseding Resolution 24-161, confirming the 2025 wage of $17.07 hour, setting the process for 2026 wage adjustment and amending the Recurrent and Part-Time Hourly Rates schedule. Staff is available to provide any additional information desired by the Mayor or Councilmembers.
Respectfully submitted,
Natalie Sakkal Rose Zimmerman
Director of Human Resources City Attorney
Attachments
• Draft Resolution Superseding 24-161 and Confirming Wage Adjustment Protocol • Ordinance No. 1425
• Recurrent and Part-Time Hourly Rates schedule
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DALY CITY TO AMEND THE
RECURRENT AND PART-TIME HOURLY RATES SCHEDULE IN ACCORDANCE WITH THE CITY COUNCIL ADOPTED MINIMUM WAGE, SUPERSEDE RESOLUTION NO. 24- 161, AND ESTABLISH THE 2026 MINIMUM WAGE ADJUSTMENT PURSUANT TO ORDINANCE NO. 1425
WHEREAS, The City of Daly City adopted Ordinance No. 1425, establishing a local minimum wage ordinance and providing for annual wage adjustments based on the lesser of 3.5% or the percentage change in the Consumer Price Index (CPI) for the San Francisco-Oakland-San Jose region; and WHEREAS, On November 12, 2024, the City Council adopted Resolution No. 24-161, which amended the Recurrent and Part-Time Hourly Rate Schedule in anticipation of Proposition 32 passing, which would have increased the minimum wage to $18.00 hour effective January 1, 2025; and
WHEREAS, Proposition 32 did not pass in the November 5, 2024 election, and the City’s local minimum wage defaulted to the rate calculated under Ordinance No. 1425, based on the 2.7% CPI increase between August 2023 and August 2024, resulting in a legally applicable minimum wage of $17.07/hour effective January 1, 2025; and
WHEREAS, The City has implemented the minimum wage of $17.07 hour in accordance with Ordinance No. 1425; and
WHEREAS, The City Council desires to supersede Resolution No. 24-161 and adopt an updated hourly wage schedule based on the correct minimum wage, and to establish the process for calculating and implementing the minimum wage effective January 1, 2026, as required by Ordinance No. 1425; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Daly City:
Section 1. The City Council amends the Recurrent and Part-Time Hourly Rates Schedule, effective January 1, 2025, in accordance with the City’s adopted minimum wage of $17.07/hour, as established by Ordinance No. 1425 and based on the 2.7% CPI increase.
Section 2. Resolution No. 24-161 is superseded in its entirety to reflect the correct minimum wage implementation and to ensure consistency in the administrative record.
Section 3. The amended Recurrent and Part-Time Hourly Rate Schedule, attached hereto as Exhibit A, reflects wage adjustments consistent with the $17.07/hour minimum wage and is hereby adopted.
Section 4. The City Council directs the Human Resources Department to prepare the minimum wage for January 1, 2026, using CPI data from August 2024 to August 2025 and to publish and implement the new wage in accordance with Ordinance No. 1425.
I hereby certify the foregoing to be a true copy of a Resolution adopted by the City Council of Daly City, California, at a regular meeting thereof held on the day of , 2025, by the following vote of the members thereof:
AYES, and in favor thereof, Councilmembers:
NOES, Councilmembers: None
ABSENT, Councilmembers: None
CITY CLERK OF THE CITY OF DALY CITY
APPROVED:
MAYOR OF THE CITY OF DALY CITY
STEP 1STEP 2STEP 3STEP 4STEP 5
Range H101
Kitchen Aide 17.50 18.38 19.29 20.26 21.27
Police Intern
Recreator I
RANGE H102
Library Page 18.11 19.02 19.97 20.97 22.02
RANGE H103
Clerical Aide 19.13 20.08 21.09 22.14 23.25
Delivery Clerk
Materials and Supplies Delivery Clerk
Recreator II
RANGE H104
Public Works Aide 19.42 20.39 21.41 22.48 23.60
Senior Library Page
RANGE H105
Food Services Assistant 20.34 21.36 22.42 23.55 24.72
Information Services Student
Library Aide
Lunch Program Assistant
Nutrition Site Manager
Police Cadet
Recreation Leader
Recreator III
Video Technician
RANGE H106
Utility Worker Aide 21.06 22.11 23.21 24.37 25.59
RANGE H107
Engineering Intern I 23.80 24.99 26.24 27.55 28.93
ISD Intern I
Recreator IV
RANGE H108
Engineering Intern II 26.91 28.25 29.66 31.15 32.70
ISD Intern II
Nutrition Education Coordinator
Swim Team Coach
DRAFT
RECURRENT AND PART TIME HOURLY RATES
Effective January 1, 2026
STEP 1STEP 2STEP 3STEP 4STEP 5
DRAFT
RECURRENT AND PART TIME HOURLY RATES
Effective January 1, 2026
RANGE H109
Police Intern II 30.41 31.93 33.52 35.20 36.96
Recreator V
RANGE H110
Recreator VI 38.32 40.23 42.24 44.36 46.58
Greenhouse/Nursery Specialist
RANGE H111
46.25 48.56 50.99 53.53 56.21
RANGE H112
Administrative Support Technician 57.33 60.19 63.20 66.36 69.68 After School Education and Safety (ASES) Program Teacher Court Liaison
Financial Administrator/Grants
Per Diem Police Officer
Rangemaster
Red Light Photo Enforcement Program Administrator
Resolution 25 - xxx adopted by City Council on November 24, 2025
City Council Meeting Agenda Report Item # _____
Meeting Date: November 24, 2025
Subject: Set Time and Place of Public Hearing – Amending Chapter 2.16 of the Daly City Municipal Code re: Arts and Culture Commission
Recommended Action
Staff recommends that the City Council set December 8, 2025 at 7:00 p.m. as the date and time for a public hearing to amend Daly City Municipal Code Chapter 2.16 Arts and Culture Commission.
Background
The Arts & Culture Commission was established by the Daly City Council in December 2013 to develop and encourage programs in the fine arts and to promote and celebrate the cultural diversity of the community. It was envisioned that the Commission could:
1. Serve as a liaison between the City Council and local fine arts and cultural-based groups;
2. Provide stewardship for the public display of art in the Octagon Gallery at City Hall; and
3. Assist in planning annual cultural events.
After celebrating its 10th Anniversary as a Commission on April 8, 2025, the Commission undertook a self-reflective process, revisiting its ordinance-based duties and discussing how effectively they meet the needs of Daly City’s increasingly diverse population.
The Arts & Culture Commission recognizes it has grown in scope and impact since its creation.
The role of the Commission has expanded beyond advising on fine arts—it has evolved into building bridges, amplifying marginalized voices, and intentionally using culture to address social issues.
Summary/Conclusion
Staff recommends that the City Council set December 8, 2025 at 7:00 p.m. as the date and time for a public hearing to amend Daly City Municipal Code Chapter 2.16 Arts and Culture Commission.
Staff is available to provide any additional information desired by the Mayor or Councilmembers.
Respectfully submitted,
Leilani Ramos
Assistant to the City Manager
City Council Meeting Agenda Report Item # _____
Meeting Date: November 24, 2025
Subject: Set Time and Place of Public Hearing – Amend Chapter 2.20 of the Daly City Municipal Code RE: Recreation Commission
Recommended Action
Staff recommends that the City Council set December 8, 2025 at 7:00 p.m. as the date and time for a public hearing – Amend Chapter 2.20 of the Daly City Municipal Code RE: Recreation Commission.
Background
In 2017, the Youth Advisory Committee was established through Resolution 17-75 to create a platform for youth voices in Daly City. The Daly City Youth Advisory Committee (DCYAC) was intended to offer school-aged residents an opportunity to serve on a board, observe and participate in local government, and gain valuable experience that would help prepare them to become civically engaged and empowered citizens.
The goals of the DCYAC were to represent the youth voice and provide meaningful feedback to promote a healthier, more connected community by:
1. Providing opportunities and resources for Daly City teen residents
2. Promoting education, healthy living, and social awareness
3. Preparing teens for the future through community outreach, events, workshops, and related activities
Over time, the Committee struggled to maintain a quorum due to extracurricular commitments and scheduling conflicts, including after-school sports. As regular attendance declined, enthusiasm and engagement diminished, resulting in the Committee becoming inactive.
At prior City Council Budget Priorities Study Sessions, it was identified that the Youth Advisory Committee be transitioned into a Youth Commission. Given the challenges discussed above, staff now proposes repealing and replacing Daly City Municipal Code Chapter 2.20 (Recreation Commission) to include one Youth Advisory Member (“Youth Commissioner”) and an alternate.
Youth Commissioners must be residents of Daly City, between 13 and 17 years of age at the time of appointment and enrolled in middle school and/or high school. They will serve in an advisory capacity only and will not count toward the Commission’s quorum. Each Youth Commissioner shall serve at the pleasure of the City Council for a term of up to two years, and until their successor is appointed and qualified.
Summary/Conclusion
Staff recommends that the City Council set December 8, 2025 at 7:00 p.m. as the date and time for a public hearing – Repeal and Replace Daly City Municipal Code Chapter 2.20 Recreation Commission.
Staff is available to provide any additional information desired by the Mayor or Councilmembers.
City Council Agenda Report
Subject: Set Time and Place of Public Hearing – Amend Chapter 2.20 of the Daly City Municipal Code RE: Recreation Commission
Meeting Date: November 24, 2025
Respectfully submitted,
Denise Brown Edgardo Bolaños
Director of Recreation Services Administrative Assistant III
City Council Meeting Agenda Report Item # _____
props
Meeting Date: November 24, 2025
Subject: Authorize Real Estate Purchase Agreement with City and County of San Francisco for Land Required of the Vista Grande Drainage Basin Improvement Project
Recommended Action
Authorize the City Manager to execute a Real Estate Purchase Agreement with the City and County of San Francisco (SFPUC) for the construction and operation of the Vista Grande Drainage Basin Improvement Project.
Background
The Vista Grande Drainage Basin Improvement Project (Project) is a multi-benefit stormwater management project that will manage, treat, and reuse stormwater in the Vista Grande Drainage Basin while also providing regional water quality, water supply, and recreational benefits.
The Vista Grande storm drain system drains the northwestern portion of Daly City (City) and an unincorporated portion of San Mateo County – areas originally within the watershed of Lake Merced. In the 1890’s, the Vista Grande Canal and Tunnel were built to divert storm water away from the lake to an outlet at the Pacific Ocean. The existing Canal and Tunnel do not have adequate hydraulic capacity to convey peak storm flows, and this periodically causes backup of Tunnel flows into the Canal and flooding during peak storm events in adjacent low-lying residential areas and along John Muir Drive. This Project will allow the City and SFPUC to work collaboratively to alleviate flooding in the Vista Grande Drainage Basin and Lake Merced Tract and facilitate augmentation and management of Lake Merced water levels using sustainable supplies of the City’s stormwater.
Discussion
This agreement is made with reference to the following facts and circumstances:
A. The Canal and Tunnel carry stormwater for both San Francisco and Daly City via Daly City’s Vista Grande storm drain system, which is a regional stormwater system that drains the northwestern portion of Daly City and an unincorporated portion of San Mateo County. The Tunnel and Canal are operated exclusively by Daly City.
B. On July 2, 2007, the Parties entered into a ground lease, which superseded certain SFPUC revocable permits held by Daly City for the use of the Tunnel. The Daly City Lease allows Daly City to operate, maintain, and repair the Tunnel. The Lease expired in 2017 and is currently in holdover status. The Parties will terminate the Lease at the close of escrow of the purchase and sale contemplated by this Agreement through the Form of Termination of Lease.
C. The Vista Grande Canal and Tunnel do not have adequate hydraulic capacity to convey peak storm flows to the Pacific Ocean, resulting in storm-related flooding within the Vista Grande Watershed. The flooding has caused property damage in adjacent low-lying residential areas within the northern portion of Daly City, as well as uncontrolled overflows into Lake Merced from the Vista Grande Canal across John Muir Drive, causing damage to John Muir Drive and associated areas in San Francisco.
D. The SFPUC and Daly City are working collaboratively towards Daly City’s implementation of the Vista Grande Basin Drainage Improvement Project to route storm water from the Vista Grande Canal to South Lake Merced as well as to the Pacific Ocean to alleviate the storm-
City Council Agenda Report
Subject: Authorize Real Estate Purchase Agreement with City and County of San Francisco for Land Required of the Vista Grande Drainage Basin Improvement Project
Meeting Date: November 24, 2025
related flooding in Daly City and San Francisco, reduce uncontrolled overflows from the Vista Grande Canal into Lake Merced, and also facilitate the augmentation and management of Lake Merced water levels, which have steadily declined, using sustainable supplies of Daly City’s stormwater, and further the restoration of the drainage basin’s natural hydrology.
E. The Project will route storm water from the Vista Grande Canal through a culvert that will be constructed on Parcel No. 55; replace the upstream portion of the Vista Grande Canal with a collection box, a box culvert, a debris screening device, and a diversion structure to handle flows (dry and wet) year-round; construct a treatment wetland; and expand the Tunnel’s capacity in order to better manage the transportation of stormwater to the Pacific Ocean.
F. To facilitate the Project, Daly City intends to acquire from San Francisco the following real estate interests, easements, and licenses:
1. Existing Tunnel Easements. Daly City proposes to purchase the SFPUC’s interests in the existing Tunnel Easements to expand and use the Tunnel for drainage purposes. Daly City, in coordination with San Francisco has also negotiated forms of Amended and Restated Easement Agreements with the Park Service and The Olympic Club to acquire the SFPUC’s interest in, restate, and amend the existing Tunnel Easements.
2. New Easements on Parcel No. 55. Daly City proposes to purchase from San Francisco the following non-exclusive permanent easements on Parcel No. 55:
a. An easement to access, install, repair, replace, and maintain a treatment wetland, diversion structure, drainage tunnel, and related appurtenances (“Wetland and Stormwater Facilities Easement”), within an approximately 157,448-square-foot easement area on a portion of Assessor’s Parcel No. 7283-004;
b. An easement to access, install, and maintain new box culverts and a storm water outlet (“Box Culvert and Storm Water Outlet Easement”), within an approximately 12,404-square-foot easement area, on a portion of Assessor’s Parcel No. 7283-004;
c. An easement to access, install, and maintain a wetland force main (“Wetland Force Main Easement”), within an approximately 2,057- square-foot easement area, on a portion of Assessor’s Parcel No. 7283- 004;
d. An easement to access and maintain three (3) existing armored spillway areas (“Armored Spillway Easement”) totaling approximately 6,644 square feet, on a portion of Assessor’s Parcel No. 7283-004; and e. An easement to access, install, and maintain a floating and fan-shaped pipeline and facility over Lake Merced (“Floating and Fan-Shaped Easement”), within an approximately 1,457-square-foot easement area, on a portion of Assessor’s Parcel No. 7283-004.
3. License to Operate Overflow Facilities. A fifty (50)-year license to use an approximately 9,286-square-foot area on Parcel No. 55 to construct, install,
City Council Agenda Report
Subject: Authorize Real Estate Purchase Agreement with City and County of San Francisco for Land Required of the Vista Grande Drainage Basin Improvement Project
Meeting Date: November 24, 2025
access, operate, repair, replace, and maintain an SFPUC overflow pipeline into Lake Merced (“Overflow License”).
4. Habitat Restoration Sites License. A License Amendment dated _____increasing the term of License No. P4703, dated August 18, 2025, to ten (10) years, allowing Daly City to use certain portions of Parcel No. 55 for the ongoing operation, inspection, maintenance, and repair of twelve (12) Habitat Mitigation Sites that are required for Daly City to satisfy conditions of the California Coastal Commission’s Coastal Development Permit No. 2-23-0862 for the Project (the “Mitigation License Amendment”).
5. Temporary Construction Staging License. A 48-month license to access and use certain portions of Parcel No. 55 for construction related activities, including: (i) daily contractor parking; (ii) the storage of equipment, materials, and supplies; (iii) the relocation of existing above-ground and subsurface utilities (i.e., AT&T communications cables, PG&E gas transmission pipelines, and a 33-inch treated effluent gravity pipeline); and (iv) temporary workspace adjacent to the Easements to facilitate the construction and installation work (the “Construction Staging License”).
Fiscal Impact
Sufficient funds are available in the Sanitation Fund 87 fund balance to cover the $71,000 purchase price.
Summary/Conclusion
Authorize the City Manager to execute a Real Estate Purchase Agreement with the City and County of San Francisco (SFPUC) for the construction and operation of the Vista Grande Drainage Basin Improvement Project.
Staff is available to provide any additional information desired by the City Council members.
Respectfully submitted,
Joshua Cosgrove Rose Zimmerman
Director of Water and Wastewater Resources City Attorney
Attachment: Draft Agreement for Sale of Real Estate
5145459.5
AGREEMENT FOR SALE OF REAL ESTATE
by and between
the CITY AND COUNTY OF SAN FRANCISCO,
acting by and through its PUBLIC UTILITIES COMMISSION,
a California municipal corporation,
as Seller
and
the CITY OF DALY CITY,
a California municipal corporation,
as Buyer
for the sale and purchase of
approximately ________ square feet of perpetual easement interests in, under, upon and/or across portions of
Assessor’s Parcel Nos. 7283-004, 7284-001, 7284-003, 7282-005, 7282-006
located in San Francisco,
California
___________________, 2026
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TABLE OF CONTENTS
Page
1. SALE AND PURCHASE 4
1.1 Property Included in Sale 4
2. PURCHASE PRICE 4
3. TITLE 5
3.1 Conditions of Title 5
3.2 Intentionally Omitted. 5
3.3 Deed Restrictions 5
3.4 Reservation of Rights 5
3.5 Buyer’s Responsibility for Title Insurance 5
4. “AS-IS” PURCHASE; RELEASE OF SAN FRANCISCO 6
4.1 Buyer’s Independent Investigation 6
4.2 Property Disclosures 6
4.3 Entry and Indemnity 7
4.4 “As-Is” Purchase 8
4.5 Release of San Francisco 8
5. CONDITIONS PRECEDENT 9
5.1 Buyer’s Conditions Precedent 9
5.2 Contingency Period 9
5.3 San Francisco’s Condition Precedent 10
5.4 Failure of San Francisco’s Conditions Precedent 10
6. ESCROW AND CLOSING 10
6.1 Escrow 10
6.2 Closing Date 11
6.3 Deposit of Documents 11
6.4 Intentionally Omitted 12
6.5 Title Company as Real Estate Reporting Person 12
7. INTENTIONALLY OMITTED 12
8. EXPENSES 12
8.1 Expenses 12
8.2 Brokers 12
9. INTENTIONALLY OMITTED 12
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10. GENERAL PROVISIONS 12
10.1 Notices 12
10.2 Successors and Assigns 13
10.3 Amendments 13
10.4 Authority of Buyer 13
10.5 Buyer’s Representations and Warranties 14
10.6 Governing Law 14
10.7 Merger of Prior Agreements 14
10.8 Parties and Their Agents 14
10.9 Interpretation of Agreement 14
10.10 Time of Essence 15
10.11 No Merger 15
10.12 Non-Liability of San Francisco Officials, Employees and Agents 15
10.13 Conflicts of Interest 15
10.14 Notification of Limitations on Contributions 15
10.15 Sunshine Ordinance 16
10.16 Tropical Hardwood and Virgin Redwood Ban 16
10.17 No Recording 16
10.18 Effective Date 16
10.19 Severability 16
10.20 Acceptance by Buyer 16
10.21 Counterparts 16
10.22 Cooperative Drafting 17
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LIST OF EXHIBITS
EXHIBIT A-1 DESCRIPTION PARCEL NO. 55
EXHIBIT A-2 DEPICTION PARCEL NO. 55
EXHIBIT B EXISTING TUNNEL EASEMENTS DESCRIPTION AND DEPICTION
EXHIBIT C QUITCLAIM DEED FOR EXISTING TUNNEL EASEMENTS
EXHIBIT D-1 DESCRIPTION AND DEPICTION OF WETLAND AND STORMWATER
FACILITIES EASEMENT
EXHIBIT D-2 DESCRIPTION AND DEPICTION OF BOX CULVERT AND
STORMWATER OUTLET EASEMENT
EXHIBIT D-3 DESCRIPTION AND DEPICTION OF WETLAND FORCE MAIN
EASEMENT
EXHIBIT D-4 DESCRIPTION AND DEPICTION OF ARMORED SPILLWAY EASEMENT EXHIBIT D-5 DESCRIPTION AND DEPICTION OF FLOATING AND FAN-SHAPED
EASEMENT
EXHIBIT E FORM OF EASEMENT DEED FOR D-1 through D-5 EASEMENTS
EXHIBIT F TERMINATION OF LEASE FORM
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AGREEMENT FOR SALE OF REAL ESTATE
(Vista Grande Tunnel Easements,
Portions of Assessor’s Parcel Nos. 7283-004, 7284-001, 7284-003, 7282-005, 7282-006 San Francisco, California)
THIS AGREEMENT FOR SALE OF REAL ESTATE (this “Agreement”) dated for reference purposes only as of _____________, 2026, is by and between the CITY AND COUNTY OF SAN FRANCISCO, a California municipal corporation (“City” or “San Francisco”), acting by and through its PUBLIC UTILITIES COMMISSION (“SFPUC”), and the CITY OF DALY CITY, a California municipal corporation (“Daly City” or “Buyer”). San Francisco and Daly City sometimes are referred to collectively in this Agreement as the “Parties” or singularly as “Party.”
THIS AGREEMENT IS MADE WITH REFERENCE TO THE FOLLOWING FACTS AND CIRCUMSTANCES:
A. In 1907, Spring Valley Water Works, the predecessor in interest to the Spring Valley Water Company, built settling ponds, flumes, the subsurface Lake Merced Drainage Canal (also known as the Vista Grande Canal and referred to in this Agreement as the “Canal”) and the Lake Merced Drainage Tunnel (also known as the Vista Grande Tunnel and referred to in this Agreement as the “Tunnel”) near Lake Merced in San Francisco.
B. In 1917, Spring Valley Water Works sold the western portion of the Lake Merced area to the federal government (the “Fort Funston Property”), reserving for itself and its successors the Tunnel and “the right to maintain, repair, reconstruct, renew and operate” the existing Tunnel (“1917 Reservation”). Per the 1917 Reservation, the Spring Valley Water Company retained ownership rights to an approximately 928-foot-long segment of the Tunnel across the Fort Funston Property.
C. In 1930, the Spring Valley Water Company sold all of its “Water System Properties,” including all of its easements and the 1917 Reservation, to San Francisco. Through this transaction, San Francisco, through the SFPUC, owns real property located in the City and County of San Francisco, described as SFPUC Parcel No. 55 and designated as a portion of Assessor’s Parcel No. 7283-004, running north along the east and west sides of John Muir Drive (“Parcel No. 55”). Parcel No. 55 is located adjacent to portions of the existing Canal. Parcel No. 55 is more particularly described in the attached Exhibit A-1 and shown generally on the map attached as Exhibit A-2.
D. San Francisco, through the SFPUC, owns the above-mentioned easements for the Tunnel on, across and through Assessor’s Parcel Nos. 7284-001, 7284-003, 7282-005 and 7282- 006, running west from the Tunnel portal located on Parcel No. 55 to the Tunnel’s terminus at the Pacific Ocean. The Tunnel’s path runs beneath property where a portion of the fee is owned by:
(i) San Francisco, (ii) The Olympic Club, a California nonprofit corporation, and (iii) the United States Department of the Interior, acting by and through its National Park Service (“Park Service”). The Tunnel easements are collectively referred to in this Agreement as the “Tunnel Easements” and are described and depicted in the attached Exhibit B.
E. On July 23, 1993, San Francisco quitclaimed approximately 17.35 acres of SFPUC Parcel No. 55 to The Olympic Club (“Olympic Club Property”). San Francisco reserved permanent easements to access, construct, reconstruct, maintain, operate, replace, and repair the portions of the Tunnel and the Canal situated on The Olympic Club Property, as well as the right to access the Canal (“Olympic Club Easements”).
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F. San Francisco quitclaimed the Olympic Club Easements to Daly City through an Assignment and Assumption of Easements Agreement dated July 13, 1993 (“Daly City Easements”). The Daly City Easements govern the use of the Canal upon Olympic Club Property.
G. The Canal and Tunnel carry stormwater for both San Francisco and Daly City via Daly City’s Vista Grande storm drain system (“Vista Grande Stormwater System”), which is a regional stormwater system that drains the northwestern portion of Daly City and an unincorporated portion of San Mateo County. The Tunnel and Canal are operated exclusively by Daly City.
H. On July 2, 2007, the Parties entered into a ground lease (“Daly City Lease”), which superseded certain SFPUC revocable permits held by Daly City for the use of the Tunnel. The Daly City Lease allows Daly City to operate, maintain, and repair the Tunnel. The Lease expired in 2017 and is currently in holdover status. The Parties will terminate the Lease at the close of escrow of the purchase and sale contemplated by this Agreement through the Form of Termination of Lease in the attached Exhibit F.
I. The Vista Grande Canal and Tunnel do not have adequate hydraulic capacity to convey peak storm flows to the Pacific Ocean, resulting in storm-related flooding within the Vista Grande Watershed. The flooding has caused property damage in adjacent low-lying residential areas within the northern portion of Daly City, as well as uncontrolled overflows into Lake Merced from the Vista Grande Canal across John Muir Drive, causing damage to John Muir Drive and associated areas in San Francisco.
J. The SFPUC and Daly City are working collaboratively towards Daly City’s implementation of the Vista Grande Basin Drainage Improvement Project (“Project”) to route storm water from the Vista Grande Canal to South Lake Merced as well as to the Pacific Ocean to alleviate the storm-related flooding in Daly City and San Francisco, reduce uncontrolled overflows from the Vista Grande Canal into Lake Merced, and also facilitate the augmentation and management of Lake Merced water levels, which have steadily declined, using sustainable supplies of Daly City’s stormwater, and further the restoration of the drainage basin’s natural hydrology.
K. The Project will route storm water from the Vista Grande Canal through a culvert that will be constructed on Parcel No. 55; replace the upstream portion of the Vista Grande Canal with a collection box, a box culvert, a debris screening device, and a diversion structure to handle flows (dry and wet) year-round; construct a treatment wetland; and expand the Tunnel’s capacity in order to better manage the transportation of stormwater to the Pacific Ocean (collectively, “Project Improvements”).
L. To facilitate the Project, Daly City intends to acquire from San Francisco the following real estate interests, easements, and licenses:
1. Existing Tunnel Easements. Daly City proposes to purchase the SFPUC’s interests in the existing Tunnel Easements to expand and use the Tunnel for drainage purposes. Daly City, in coordination with San Francisco has also negotiated forms of Amended and Restated Easement Agreements with the Park Service and The Olympic Club to acquire the SFPUC’s interest in, restate, and amend the existing Tunnel Easements.
2. New Easements on Parcel No. 55. Daly City proposes to purchase from San Francisco the following non-exclusive permanent easements on Parcel No. 55 (to be collectively referred to in this Agreement, with the Tunnel Easements, as the “Easements” or the “Property”):
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a. An easement to access, install, repair, replace, and maintain a treatment wetland, diversion structure, drainage tunnel, and related appurtenances (“Wetland and Stormwater Facilities Easement”), within an approximately 157,448-square-foot easement area as more particularly described and depicted in the attached Exhibit D-1, on a portion of Assessor’s Parcel No. 7283-004;
b. An easement to access, install, and maintain new box culverts and a storm water outlet (“Box Culvert and Storm Water Outlet Easement”), within an approximately 12,404-square-foot easement area as more particularly described and depicted in the attached Exhibit D-2, on a portion of Assessor’s Parcel No. 7283-004; c. An easement to access, install, and maintain a wetland force main (“Wetland Force Main Easement”), within an approximately 2,057-square-foot easement area as more particularly described and depicted in the attached Exhibit D-3, on a portion of Assessor’s Parcel No. 7283-004;
d. An easement to access and maintain three (3) existing armored spillway areas (“Armored Spillway Easement”) totaling
approximately 6,644 square feet, which easement areas are more particularly described and depicted in the attached Exhibit D-4, on a portion of Assessor’s Parcel No. 7283-004; and
e. An easement to access, install, and maintain a floating and fan- shaped pipeline and facility over Lake Merced (“Floating and Fan-Shaped Easement”), within an approximately 1,457-square- foot easement area as more particularly described and depicted in the attached Exhibit D-5, on a portion of Assessor’s Parcel No. 7283-004.
3. License to Operate Overflow Facilities. A fifty (50)-year license to use an approximately 9,286-square-foot area on Parcel No. 55 to construct, install, access, operate, repair, replace, and maintain an SFPUC overflow pipeline into Lake Merced (“Overflow License”).
4. Habitat Restoration Sites License. A License Amendment dated _______________ increasing the term of License No. P4703, dated August 18, 2025, to ten (10) years, allowing Daly City to use certain portions of Parcel No. 55 for the ongoing operation, inspection, maintenance, and repair of twelve (12) Habitat Mitigation Sites that are required for Daly City to satisfy conditions of the California Coastal Commission’s Coastal Development Permit No. 2-23- 0862 for the Project (the “Mitigation License Amendment”).
5. Temporary Construction Staging License. A 48-month license to access and use certain portions of Parcel No. 55 for construction related activities, including:
(i) daily contractor parking; (ii) the storage of equipment, materials, and supplies; (iii) the relocation of existing above-ground and subsurface utilities (i.e., AT&T communications cables, PG&E gas transmission pipelines, and a 33-inch treated effluent gravity pipeline); and (iv) temporary workspace adjacent to the Easements to facilitate the construction and installation work (the “Construction Staging License”).
The purchase and sale contemplated by this Agreement will only include San Francisco’s sale of the Easements to Daly City. San Francisco will issue, and Daly City will pay for the Licenses described in subsections 3 through 5 above in one or more separate transactions.
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M. Daly City, as Lead Agency under the California Environmental Quality Act (“CEQA”), and the United States Department of the Interior, acting by and through its National Park Service (the “Park Service”), as Lead Agency under the National Environmental Policy Act (NEPA), have prepared a joint Final Environmental Impact Report and Environmental Impact Statement (“FEIR/FEIS”), pursuant to the provisions of CEQA, which was released for agency review on September 8, 2017 (State Clearinghouse Number 2013032001). Daly City certified the FEIR/FEIS and approved the Vista Grande South Lake Merced Alternative described in the FEIR/FEIS via City Council Res. No. 17-200, dated December 11, 2017, adopting the mitigation measures included in the FEIR/FEIS and set forth in the Environmental Commitments Record, and assumed responsibility for their implementation. On June 9, 2025, the City of Daly City adopted an Addendum to the previously certified Final EIR/EIS for the Project to address minor revisions and additions to the Project that occurred after Project approval.
N. San Francisco is a responsible agency under CEQA for review and approval of aspects of the Project. San Francisco has reviewed and considered the FEIR/FEIS and the Project approval documents and has approved this Agreement and adopted findings required under CEQA.
O. Daly City desires to purchase the Easements, and City is willing to sell the Easements, subject to approval by City’s Board of Supervisors and Mayor, on the terms and conditions set forth below.
ACCORDINGLY, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. SALE AND PURCHASE
1.1 Property Included in Sale
Subject to the terms, covenants and conditions set forth in this Agreement, San Francisco agrees to sell to Buyer, and Buyer agrees to purchase from San Francisco, the Easements.
2. PURCHASE PRICE
(a) The purchase price for the existing Tunnel Easements is FIVE THOUSAND SIX HUNDRED EIGHTY-EIGHT DOLLARS ($5,688).
(b) The purchase price for the Wetland and Stormwater Facilities Easement is SIXTY THOUSAND TWO HUNDRED TWENTY-FOUR DOLLARS ($60,224). (c) The purchase price for the Box Culvert and Storm Water Outlet Easement is EIGHT HUNDRED THIRTY-TWO DOLLARS ($832).
(d) The purchase price for the Wetland Force Main Easement is TWO HUNDRED SIXTY-TWO DOLLARS ($262).
(e) The purchase price for the Armored Spillway Easement is TWO THOUSAND FIVE HUNDRED FORTY-TWO DOLLARS ($2,542).
(f) The purchase price for the Floating and Fan-Shaped Easement is ONE THOUSAND ONE HUNDRED SEVENTY-SEVEN DOLLARS ($1,177).
Accordingly, the total combined purchase price for the Easements is SEVENTY THOUSAND SEVEN HUNDRED SIXTEEN DOLLARS ($70,716), rounded to SEVENTY- ONE THOUSAND DOLLARS ($71,000) (the “Purchase Price”).
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Buyer will pay the Purchase Price, by depositing the Purchase Price into escrow with Fidelity National Title Group, National Commercial Services, 44 Montgomery, Suite 1650, San Francisco, CA 94104, Attention: Mary Pat Noeker (the “Title Company”), at the consummation of the purchase and sale contemplated by this Agreement (the “Closing”).
All sums payable under this Agreement will be paid in immediately available funds of lawful money of the United States of America.
3. TITLE
3.1 Conditions of Title
At the Closing San Francisco will quitclaim interest in and to the Tunnel Easements to Buyer by quitclaim deed in the form attached as Exhibit C (the “Quitclaim Deed”). San Francisco will sell and convey the Wetland and Stormwater Facilities Easement, Box Culvert and Storm Water Outlet Easement, Wetland Force Main Easement, Armored Spillway Easement, and the Floating and Fan-Shaped Easement to Buyer by a duly executed and acknowledged easement deed in the form attached as Exhibit E (the “Easement Deed”).
The Easements will be conveyed subject to (a) [intentionally omitted], (b) all existing exceptions and encumbrances, whether or not disclosed by a current preliminary title report or the public records or any other documents reviewed by Buyer pursuant to Section 5.1 [Buyer’s Conditions Precedent] below, and any other exceptions to title that would be disclosed by an accurate and thorough investigation, survey, or inspection of the Property, (c) all items of which Buyer has actual or constructive notice or knowledge, (d) the deed restrictions described in Section 3.3 [Deed Restrictions] below, and (g) the rights that will be reserved as further provided in Section 3.4 [Reservation of Rights] below. All of the foregoing exceptions will be referred to collectively as the “Conditions of Title.”
3.2 Third Party Rights in Easement Areas.
City agrees that, from the Effective Date until the Closing, City will not enter into any agreements or otherwise grant any rights in the Easement Areas to third parties that would be likely to materially interfere with the Easements.
3.3 Deed Restrictions
Buyer acknowledges and agrees that Buyer will not interfere with or impede San Francisco’s use of its real property surrounding the easement areas as defined in the Easement Deed and Agreement in the attached Exhibit E (“Easement Areas”) or unreasonably interfere with San Francisco’s use of the Easement Areas in accordance with Section 4 [Subject to San Francisco’s Uses] in the Easement Deed and Agreement. Buyer will not do anything in, on, under, or around the Easement Areas that damages, endangers, or unreasonably interferes with any existing San Francisco or SFPUC facilities within or adjacent to the Property.
3.4 Reservation of Rights
With the exception of the Tunnel Easements to be quitclaimed under this Agreement, San Francisco reserves the right to make use of the Easement Areas that are located on the Property for the purpose of ingress and egress within, over, and across the Easement Areas to allow San Francisco and its Agents (defined in Section 10.8 [Parties and Their Agents] below) sufficient access to the Property and to any of its utility facilities located on or about the Easement Areas.
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3.5 Buyer’s Responsibility for Title Insurance
Buyer understands and agrees that the rights and interests provided in the Easements will not exceed those vested in San Francisco, and San Francisco is under no obligation to furnish any policy of title insurance in connection with this transaction. Buyer recognizes that any fences or other physical monument of the Property’s boundary lines may not correspond to the legal description of the Property. San Francisco will not be responsible for any discrepancies in the parcel area or location of the property lines or any other matters that an accurate survey or inspection might reveal. It is Buyer’s sole responsibility to obtain a survey from an independent surveyor and a policy of title insurance from a title company, if desired.
4. “AS-IS” PURCHASE; RELEASE OF SAN FRANCISCO
4.1 Buyer’s Independent Investigation
Buyer represents and warrants to San Francisco that Buyer has performed a diligent and thorough inspection and investigation of each and every aspect of the Property, either independently or through agents of Buyer’s choosing, including the following matters (collectively, the “Property Conditions”):
(a) All matters relating to title including the existence, quality, nature, and adequacy of San Francisco’s interest in the Property and the existence of physically open and legally sufficient access to the Property.
(b) The zoning and other legal status of the Property, including the compliance of the Property or its operation with any applicable codes, laws, regulations, statutes, ordinances, and private or public covenants, conditions, and restrictions, and all governmental and other legal requirements such as taxes, assessments, use permit requirements, and building and fire codes. (c) The quality, nature, adequacy, and physical condition of the Property, including, but not limited to, any structural elements, foundation, roof, interior, landscaping, parking facilities, and the electrical, mechanical, HVAC, plumbing, sewage and utility systems, facilities and appliances, and all other physical and functional aspects of the Property. (d) The quality, nature, adequacy, and physical, geological and environmental condition of the Property (including soils and any groundwater), and the presence or absence of any Hazardous Materials in, on, under, or about the Property or any other real property in the vicinity of the Property. As used in this Agreement, “Hazardous Material” means any material that, because of its quantity, concentration, or physical or chemical characteristics, is now or hereafter deemed by any federal, state, or local governmental authority to pose a present or potential hazard to human health or safety or to the environment. (d) The Leases and other agreements as defined in Section 5.1, and all matters in connection therewith, including the ability of the tenants to pay the rent under the Leases. (e) The suitability of the Property for Buyer’s intended uses. Buyer represents and warrants that its intended use of the Property is to facilitate the Project, which will upgrade the Vista Grande Stormwater System.
(f) The economics and development potential, if any, of the Property. (g) All other matters of material significance affecting the Property.
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4.2 Property Disclosures
(a) California law requires sellers to disclose to buyers the presence or potential presence of certain Hazardous Materials. Accordingly, Buyer is hereby advised that occupation of the Property may lead to exposure to Hazardous Materials such as, but not limited to, gasoline, diesel and other vehicle fluids, vehicle exhaust, office maintenance fluids, tobacco smoke, methane, and building materials containing chemicals, such as formaldehyde. By execution of this Agreement, Buyer acknowledges that the notices and warnings set forth above satisfy the requirements of California Health and Safety Code Section 25359.7 and related statutes. (b) On November 2, 2015, the Federal Emergency Management Agency (“FEMA”) issued a preliminary Flood Insurance Rate Map (“FIRM”) that identifies Special Flood Hazard Areas along San Francisco’s shoreline, with designations of “Zone A” (areas subject to coastal flooding) and “Zone V” (areas subject to coastal flooding and hazards that accompany wave action). The affected San Francisco property includes its waterfront piers, parts of Mission Bay, Hunters Point Shipyard, Candlestick Point, Treasure and Yerba Buena Islands, and an area adjacent to Islais Creek. FEMA expects to finalize the FIRM in late 2016, which may have significant impacts for developing new structures and reconstructing or repairing existing structures in the identified areas.
(c) According to the United States Geological Survey, roughly one-quarter of the San Francisco Bay region may be exposed to liquefaction. More information about the potential areas of liquefaction may be found at https://www.usgs.gov/programs/earthquake- hazards/science/san-francisco-bay-area-liquefaction-hazard-maps.
4.3 Entry and Indemnity
In connection with any entry by Buyer or its Agents (defined in Section 10.8 [Parties and Their Agents] below) onto the Property prior to the Closing, Buyer will give San Francisco reasonable advance written notice of such entry and will conduct such entry and any inspections in connection therewith so as to minimize, to the extent possible, interference with uses being made of the Property and otherwise in a manner and on terms and conditions acceptable to San Francisco. All entries by Buyer or its Agents onto the Property to perform any testing or other investigations that could affect the physical condition of the Property (including soil borings) or the uses thereof will be made only pursuant to the terms and conditions of a permit to enter in form and substance satisfactory to San Francisco. Without limiting the foregoing, prior to any entry to perform any on-site testing, Buyer will give San Francisco written notice thereof, including the identity of the company or persons who will perform such testing, the precise time and location of the testing, and the proposed scope of the testing. San Francisco will have the right to approve, disapprove, or condition and limit the proposed testing, in San Francisco’s sole discretion, within ten (10) business days after receipt of such notice. If Buyer or its agents, employees or contractors take any sample from the Property in connection with any approved testing, Buyer will provide to San Francisco a portion of such sample being tested to allow San Francisco, if it so chooses, to perform its own testing. San Francisco or its representative may be present to observe any testing or other inspection performed on the Property. Buyer will promptly deliver to San Francisco copies of any reports relating to any testing or other inspection of the Property performed by Buyer or its agents, employees or contractors, but will not deliver copies of any such reports to any other person or entity without Buyer’s prior written approval. Buyer will keep all test results and information strictly confidential, and will indemnify, reimburse, defend and hold San Francisco harmless from and against any loss, cost, expense, or damage resulting from Buyer’s failure to keep any information obtained from an inspection or testing of the Property strictly confidential; provided, however, Buyer will not be liable if and to the extent Buyer is required to disclose such information pursuant to a court order or any other law, statute, ordinance, rule, regulation, policy, order, edict, and the like (collectively, “Laws”) of any governmental or other regulatory entity
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with jurisdiction over Buyer or the Property. Buyer will comply with all Laws in connection with any entry onto or testing of the Property.
Buyer will maintain, and will require that its Agents maintain, public liability and property damage insurance in amounts and in form and substance adequate to insure against all liability of Buyer and its Agents, arising out of any entry or inspection of the Property in connection with the transaction contemplated by this Agreement, and Buyer will provide San Francisco with evidence of such insurance coverage upon request from San Francisco.
To the fullest extent permitted under law, Buyer will indemnify, defend and hold harmless San Francisco, its Agents, and each of them, from and against any liabilities, costs, damages, losses, liens, claims and expenses (including reasonable fees of attorneys, experts and consultants and related costs) arising out of or relating to any entry on, under or about the Property by Buyer, its Agents, contractors and subcontractors in performing the inspections, testing, or inquiries provided for in this Agreement, whether prior to the date of this Agreement or during the term hereof, including any injuries or deaths to any persons (including Buyer’s Agents) and damage to any property, from any cause whatsoever; provided, however, that the foregoing indemnity obligation shall not apply to the extent that any liabilities, costs, damages, losses, liens, claims and expenses arise from (i) the mere discovery of a condition that existed prior to Buyer’s inspection of the Property, (ii) or the gross negligence or willful misconduct of Seller or its Agents. The foregoing indemnity will survive beyond the Closing, or, if the sale is not consummated, beyond the termination of this Agreement.
4.4 “As-Is” Purchase
BUYER SPECIFICALLY ACKNOWLEDGES AND AGREES THAT SAN
FRANCISCO IS SELLING AND BUYER IS PURCHASING CERTAIN EASEMENT INTERESTS ON AN “AS-IS WITH ALL FAULTS” BASIS. BUYER IS RELYING SOLELY
ON ITS INDEPENDENT INVESTIGATION AND NOT ON ANY REPRESENTATIONS OR
WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, FROM SAN
FRANCISCO OR ITS AGENTS AS TO ANY MATTERS CONCERNING THE PROPERTY, ITS SUITABILITY FOR BUYER’S INTENDED USES OR ANY OF THE PROPERTY CONDITIONS. SAN FRANCISCO DOES NOT GUARANTEE THE LEGAL, PHYSICAL,
GEOLOGICAL, ENVIRONMENTAL OR OTHER CONDITIONS OF THE PROPERTY, NOR
DOES IT ASSUME ANY RESPONSIBILITY FOR THE COMPLIANCE OF THE PROPERTY OR ITS USE WITH ANY STATUTE, ORDINANCE OR REGULATION. IT IS BUYER’S
SOLE RESPONSIBILITY TO DETERMINE ALL BUILDING, PLANNING, ZONING, AND
OTHER REGULATIONS RELATING TO THE PROPERTY AND THE USES TO WHICH IT MAY BE PUT.
4.5 Release of San Francisco
As part of its agreement to purchase the Property in its “As-Is With All Faults” condition, Buyer, on behalf of itself and its successors and assigns, waives any right to recover from, and forever releases and discharges, San Francisco, its officers, employees, agents, contractors, and representatives, and their respective heirs, successors, legal representatives, and assigns, from all demands, claims, legal or administrative proceedings, losses, liabilities, damages, penalties, fines, liens, judgments, costs, or expenses whatsoever (including attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, that may arise on account of or in any way be connected with (a) Buyer’s and its Agents and customer’s past, present and future use of the Property, (b) the physical, geological, or environmental condition of the Property, including any Hazardous Material in, on, under, above or about the Property, and (c) any federal, state, local, or administrative law, rule, regulation, order or requirement applicable thereto, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”, also commonly known as the “Superfund” law), as amended by Superfund Amendments and
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Reauthorization Act of 1986 (“SARA”) (42 U.S.C. Sections 9601-9657), the Resource Conservation and Recovery Act of 1976, as amended by the Solid Waste and Disposal Act of 1984 (collectively, “RCRA”) (42 U.S.C. Sections 6901-6987), the Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977 (collectively the “Clean Water Act”) (33 U.S.C.
Section 1251 et seq.), the Toxic Substances Control Act (“TSCA”) (15 U.S.C. Sections 2601- 2629), Hazardous Materials Transportation Act (49 U.S.C. Section 1801 et seq.), the Carpenter- Presley-Tanner Hazardous Substance Account Law (commonly known as the “California Superfund” law) (California Health and Safety Code Sections 25300-25395), Hazardous Waste Control Act (California Health and Safety Code Section 25100 et seq.), Hazardous Materials Release Response Plans and Inventory Law (commonly known as the “Business Plan Law”) (California Health and Safety Code Section 25500 et seq.), Porter-Cologne Water Quality Control Act (California Water Code Section 13000 et seq.), and the Safe Drinking Water and Toxic Enforcement Act of 1986 (commonly known as “Proposition 65”) (California Health and Safety Code Section 25249.5 et seq.).
In connection with the foregoing release, Buyer expressly waives the benefits of Section 1542 of the California Civil Code, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT
THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR
HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
BY PLACING ITS INITIALS BELOW, BUYER SPECIFICALLY ACKNOWLEDGES AND
CONFIRMS THE VALIDITY OF THE RELEASES MADE ABOVE AND THE FACT THAT
BUYER WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS AGREEMENT WAS MADE, THE CONSEQUENCES OF THE ABOVE RELEASES.
INITIALS: BUYER: ________________
5. CONDITIONS PRECEDENT
5.1 Buyer’s Conditions Precedent
Buyer’s obligation to purchase the Easements is conditioned upon the following (“Buyer’s Conditions”):
(a) Buyer’s review and approval of an updated preliminary title report, together with copies of the underlying documents.
(b) Buyer’s review and approval of all tenant leases and any other occupancy agreements (hereinafter collectively referred to as the “Leases”), if any, affecting the Property. (c) Buyer’s review and approval of the physical condition of the Property. (d) Buyer’s review and approval of all zoning, land use, building, environmental and other statutes, rules, or regulations applicable to the Property. (e) Buyer’s review and approval of soils reports and other documents of significance to the Property in San Francisco’s possession. San Francisco will make available to Buyer at San Francisco’s Real Estate Division’s offices, without representation or warranty of any kind whatsoever, all non-privileged items in its files relating to the Property for Buyer’s review and inspection, at Buyer’s sole cost, during normal business hours. Notwithstanding the foregoing,
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Buyer’s review will not include a review of any of San Francisco’s internal memoranda or reports, any privileged or confidential information, or San Francisco’s appraisals of the Property, if any.
5.2 Contingency Period
Buyer will have until 5:00 p.m. San Francisco Time on the date that is ten (10) business days after the Effective Date to review and approve, waive or disapprove Buyer’s Conditions (such period being referred to in this Agreement as the “Contingency Period”). If Buyer elects to proceed with the purchase of the Property, then Buyer shall, before the expiration of the Contingency Period, notify San Francisco in writing that Buyer has approved all such matters. If, before the end of the Contingency Period, Buyer fails to give San Francisco such written notice and fails to object to any of Buyer’s Conditions, then Buyer will be deemed to have waived Buyer’s Conditions and elected to proceed with the Closing. Notwithstanding the foregoing, if Buyer objects to any of the matters contained within Section 5.1 within the Contingency Period, then San Francisco may, but will have no obligation to remove or remedy any objectionable matter. If San Francisco agrees to remove or remedy the objectionable matter, it will notify Buyer within ten (10) days following Buyer’s notice of objection, and the Closing Date will be delayed for so long as San Francisco diligently pursues such removal or remedy. If and when San Francisco elects not to remove or remedy the objectionable matter, which San Francisco may do at any time including following an initial election to pursue remedial or corrective actions, this Agreement will automatically terminate and neither party will have any further rights or obligations under this Agreement except as provided in Section 4.3 [Entry and Indemnity], Section 8.2 [Brokers], or Section 10.4 [Authority of Buyer] or as otherwise expressly provided in this Agreement.
5.3 San Francisco’s Condition Precedent
The following are conditions precedent to San Francisco’s obligation to sell the Property to Buyer (“San Francisco’s Conditions Precedent”):
(a) Buyer will have performed all of its obligations pursuant to or in connection with this Agreement and all of Buyer’s representations and warranties will be true and correct. (b) A resolution approving and authorizing the transactions contemplated by this Agreement and finding that the public interest or necessity demands, or will not be inconvenienced by the sale of the Property, will have been adopted by San Francisco’s Board of Supervisors and Mayor, in their respective sole and absolute discretion. (c) Title Company will have agreed to be the real estate reporting person for the Closing in compliance with the Reporting Requirements (defined in Section 6.5 [Title Company as Real Estate Reporting Person] below).
5.4 Failure of San Francisco’s Conditions Precedent
Each of San Francisco’s Conditions Precedent are intended solely for the benefit of San Francisco. If any of San Francisco’s Conditions Precedent are not satisfied as provided above, San Francisco may, at its option, terminate this Agreement. Upon any such termination, neither party will have any further rights or obligations under this Agreement except as provided in Section 4.3 [Entry and Indemnity], Section 8.2 [Brokers], or Section 10.4 [Authority of Buyer] or as otherwise expressly provided in this Agreement.
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6. ESCROW AND CLOSING
6.1 Escrow
On the date the Parties execute this Agreement, or as soon thereafter as reasonably possible, Buyer and San Francisco will deposit an executed counterpart of this Agreement with the Title Company, and this instrument will serve as the instructions to the Title Company as the escrow holder for consummation of the purchase and sale contemplated by this Agreement. San Francisco and Buyer agree to execute such supplementary escrow instructions as may be appropriate to enable the Title Company to comply with the terms of this Agreement; provided, however, in the event of any conflict between the provisions of this Agreement and any supplementary escrow instructions, the terms of this Agreement will control.
6.2 Closing Date
The Closing will be held, and delivery of all items to be made at the Closing under the terms of this Agreement will be made, at the offices of the Title Company on ______________, 20___, and before 1:00 p.m. San Francisco Time (a) the date that is _________________ (_______) days after the expiration of the Contingency Period and enactment of the Board of Supervisors’ resolution referred to in Section 5.3(b) above, or if such date is not a business day, then upon the next ensuing business day, before 1:00 p.m. San Francisco time or (b) such other date and time as the Parties may mutually agree upon in writing (the “Closing Date”). Such date and time may not be extended without the prior written approval of the Parties.
6.3 Deposit of Documents
(a) At or before the Closing, San Francisco will deposit into escrow the following items:
(i) the duly executed and acknowledged Quitclaim Deed and the duly executed and acknowledged Easement Deed conveying the Property to Buyer subject to the Conditions of Title;
(ii) a duly executed counterpart of the Overflow License; (iii) a duly executed counterpart of the Constructing Staging License; (iv) a duly executed counterpart of the Mitigation License Amendment; and
(v) a duly executed counterpart of the Notice of Termination of the Daly City Lease.
(b) At or before the Closing, Buyer will deposit into escrow the following items:
(i) the funds necessary to close this transaction;
(ii) an original Certificate of Acceptance of Property (“Certificate of Acceptance”) executed by Buyer and to be attached to the Quitclaim Deed and Easement Deed prior to recordation.
(iii) a duly executed counterpart of the Overflow License; (iv) a duly executed counterpart of the Mitigation License Amendment
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(v) a duly executed counterpart of the Constructing Staging License; and
(vi) a duly executed counterpart of the Notice of Termination of the Daly City Lease.
(c) San Francisco and Buyer will each deposit such other instruments as are reasonably required by the Title Company or otherwise required to close the escrow, issue title insurance (if applicable) and consummate the purchase of the Property in accordance with the terms hereof.
6.4 Prorations
Any assessments; water, sewer and utility charges; amounts payable under any service contracts; annual permits and/or inspection fees (calculated on the basis of the period covered); and any other expenses normal to the operation and maintenance of the Property, to the extent applicable to the Easements, if any, will all be prorated as of 12:01 a.m. on the date the Deed is recorded, on the basis of a three hundred sixty-five (365)-day year. The Parties by this Agreement agree that if any of the above described prorations cannot be calculated accurately on the Closing Date, then the same will be calculated as soon as reasonably practicable after the Closing Date and either party owing the other party a sum of money based on such subsequent proration(s) will promptly pay said sum to the other party.
6.5 Title Company as Real Estate Reporting Person
Section 6045(e) of the United States Internal Revenue Code of 1986 and the regulations promulgated thereunder (collectively, the “Reporting Requirements”) require that certain information be made to the United States Internal Revenue Service, and a statement to be furnished to San Francisco, in connection with the Closing. Buyer and San Francisco agree that if the Closing occurs, Title Company will be the party responsible for closing the transaction contemplated in this Agreement and is by this Agreement designated as the real estate reporting person (as defined in the Reporting Requirements) for such transaction. Title Company will perform all duties required of the real estate reporting person for the Closing under the Reporting Requirements, and Buyer and San Francisco will each timely furnish Title Company with any information reasonably requested by Title Company and necessary for the performance of its duties under the Reporting Requirements with respect to the Closing.
7. INTENTIONALLY OMITTED
8. EXPENSES
8.1 Expenses
Buyer will pay any transfer taxes applicable to the sale, escrow fees and recording charges, and any other costs and charges of the escrow for the sale.
8.2 Brokers
The Parties represent and warrant to each other that no broker or finder was instrumental in arranging or bringing about this transaction and that there are no claims or rights for brokerage commissions or finder’s fees in connection with the transactions contemplated by this Agreement.
If any person brings a claim for a commission or finder’s fee based on any contact, dealings, or communication with Buyer or San Francisco, then the party through whom such person makes a claim will defend the other party from such claim, and will indemnify the indemnified party from, and hold the indemnified party harmless against, all costs, damages, claims, liabilities, or expenses
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(including reasonable attorneys’ fees and disbursements) that the indemnified party incurs in defending against the claim. The provisions of this Section will survive the Closing, or, if the purchase and sale is not consummated for any reason, any termination of this Agreement.
9. INTENTIONALLY OMITTED
10. GENERAL PROVISIONS
10.1 Notices
Any notice, consent, or approval required or permitted to be given under this Agreement will be in writing and will be given by (a) hand delivery, against receipt, (b) reliable next-business- day courier service that provides confirmation of delivery, or (c) United States registered or certified mail, postage prepaid, return receipt required, and addressed as follows (or to such other address as either party may from time to time specify in writing to the other upon five (5) days’ prior, written notice in the manner provider above):
SAN FRANCISCO:
San Francisco Public Utilities Commission
525 Golden Gate Avenue, 10th Floor
San Francisco, CA 94102
Attn: Real Estate Director
Re: Vista Grande Sale of Easements,
Daly San Francisco
with a copy to:
Office of the City Attorney
City Hall, Room 234
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 94102
Attn: Real Estate Transactions Team
Re: Vista Grande Sale of Easements,
Daly City
BUYER:
City of Daly City
333 90th Street
Daly City, CA 94015
Attn: City Manager
Re: Vista Grande Tunnel Easements
San Francisco
with a copy to:
Marc Centor
Downey Brand LLP
455 Market Street, Suite 1500
San Francisco, CA 94105
Re: Vista Grande Tunnel Easements
San Francisco
A properly addressed notice transmitted by one of the foregoing methods will be deemed received upon the confirmed date of delivery, attempted delivery, or rejected delivery, whichever occurs first. Any e-mail addresses, telephone numbers, or facsimile numbers provided by one party to the other will be for convenience of communication only; neither party may give official or binding notice orally or by e-mail or facsimile. The effective time of a notice will not be affected by the receipt, prior to receipt of the original, of an oral notice or an e-mail or facsimile copy of the notice.
10.2 Successors and Assigns
This Agreement will be binding upon, and inure to the benefit of, the parties to this Agreement and their respective successors, heirs, legal representatives, administrators and assigns.
Buyer’s rights and obligations under this Agreement will not be assignable without the prior written consent of San Francisco; provided, however, even if San Francisco approves any such proposed assignment, in no event will Buyer be released of any of its obligations under this Agreement.
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10.3 Amendments
This Agreement may be amended or modified only by a written instrument signed by the Parties.
10.4 Authority of Buyer
Buyer represents and warrants to San Francisco that Buyer is a municipal corporation duly organized, validly existing, and in good standing under the laws of the State of California. Buyer further represents and warrants to San Francisco that this Agreement and all documents executed by Buyer, which are to be delivered to San Francisco at Closing: (a) are or at the time of Closing will be duly authorized, executed, and delivered by Buyer; (b) are or at the time of Closing will be legal, valid, and binding obligations of Buyer; and (c) do not and at the time of Closing will not violate any provision of any agreement or judicial order to which Buyer is a party or to which Buyer is subject. Notwithstanding anything to the contrary in this Agreement, the foregoing representations and warranties and all other representations and warranties of Buyer contained in this Agreement or in other agreements or documents executed by Buyer in connection herewith, will survive the Closing Date.
10.5 Buyer’s Representations and Warranties
Buyer makes the following representations as of the date of this Agreement and at all times throughout this Agreement:
(a) Buyer has duly authorized by all necessary action the execution, delivery, and performance of this Agreement. Buyer has duly executed and delivered this Agreement and this Agreement constitutes a legal, valid, and binding obligation of Buyer, enforceable against Buyer in accordance with the terms hereof.
(b) Buyer represents and warrants to San Francisco that it has not been suspended, disciplined, or disbarred by, or prohibited from contracting with, any federal, state, or local governmental agency. In the event Buyer has been so suspended, disbarred, disciplined, or prohibited from contracting with any governmental agency, it will immediately notify San Francisco of same and the reasons therefore together with any relevant facts or information requested by San Francisco. Any such suspension, debarment, discipline, or prohibition may result in the termination or suspension of this Agreement.
(c) No document or instrument furnished or to be furnished by the Buyer to San Francisco in connection with this Agreement contains or will contain any untrue statement of material fact or omits or will omit a material fact necessary to make the statements contained in this Agreement not misleading, under the circumstances under which any such statement will have been made.
10.6 Governing Law
This Agreement will be governed by, subject to, and construed in accordance with the laws of the State of California and San Francisco’s Charter and Administrative Code.
10.7 Merger of Prior Agreements
This Agreement, together with the exhibits to this Agreement, contain all representations, warranties, and covenants made by Buyer and San Francisco and constitutes the entire understanding between the Parties to this Agreement with respect to the subject matter hereof.
Any prior correspondence, memoranda, or agreements are replaced in total by this Agreement together with the exhibits to this Agreement.
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10.8 Parties and Their Agents
The term “Buyer” as used in this Agreement will include the plural as well as the singular.
If Buyer consists of more than one (1) individual or entity, then the obligations under this Agreement imposed on Buyer will be joint and several. As used in this Agreement, the term “Agents” when used with respect to either Party will include the agents, employees, officers, contractors, and representatives of such Party.
10.9 Interpretation of Agreement
The article, section, and other headings of this Agreement and the table of contents are for convenience of reference only and will not affect the meaning or interpretation of any provision contained in this Agreement. Whenever the context so requires, the use of the singular will be deemed to include the plural and vice versa, and each gender reference will be deemed to include the other and the neuter. This Agreement has been negotiated at arm’s length and between persons sophisticated and knowledgeable in the matters dealt with in this Agreement. In addition, each Party has been represented by experienced and knowledgeable legal counsel. Accordingly, any rule of law (including California Civil Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the party that has drafted it is not applicable and is waived. The provisions of this Agreement will be interpreted in a reasonable manner to effect the purposes of the Parties and this Agreement. Use of the word “including” or similar words will not be construed to limit any general term, statement, or other matter in this Agreement, whether or not language of non-limitation, such as “without limitation” or similar words, are used.
10.10 Time of Essence
Time is of the essence with respect to the performance of the Parties’ respective obligations contained in this Agreement.
10.11 No Merger
The obligations contained in this Agreement will not merge with the transfer of title to the Property but will remain in effect until fulfilled.
10.12 Non-Liability of San Francisco Officials, Employees and Agents Notwithstanding anything to the contrary in this Agreement, no elective or appointive board, commission, member, officer, employee, or agent of San Francisco will be personally liable to Buyer, its successors and assigns, in the event of any default or breach by San Francisco or for any amount that may become due to Buyer, its successors and assigns, or for any obligation of San Francisco under this Agreement.
10.13 Conflicts of Interest
Through its execution of this Agreement, Buyer acknowledges that it is familiar with the provisions of Article III, Chapter 2 of San Francisco’s Campaign and Governmental Conduct Code, and Section 87100 et seq. and Section 1090 et seq. of the Government Code of the State of California, and certifies that it does not know of any facts that constitute a violation of said provisions and agrees that if it becomes aware of any such fact during the term of this Agreement, Buyer will immediately notify San Francisco.
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10.14 Notification of Limitations on Contributions
Through its execution of this Agreement, Buyer acknowledges that it is familiar with Section 1.126 of the San Francisco Campaign and Governmental Conduct Code, which prohibits any person who contracts with San Francisco for the selling or leasing of any land or building to or from San Francisco whenever such transaction would require the approval by a San Francisco elective officer, the board on which that San Francisco elective officer serves, or a board on which an appointee of that individual serves, from making any campaign contribution to (a) San Francisco elective officer, (b) a candidate for the office held by such individual, or (c) a committee controlled by such individual or candidate, at any time from the commencement of negotiations for the contract until the later of either the termination of negotiations for such contract or twelve months after the date the contract is approved. Buyer acknowledges that the foregoing restriction applies only if the contract or a combination or series of contracts approved by the same individual or board in a fiscal year have a total anticipated or actual value of $100,000 or more. Buyer further acknowledges that the prohibition on contributions applies to each Buyer; each member of Buyer’s board of directors, and Buyer’s chief executive officer, chief financial officer and chief operating officer; any person with an ownership interest of more than twenty percent (20%) in Buyer; any subcontractor listed in the contract; and any committee that is sponsored or controlled by Buyer.
Additionally, Buyer acknowledges that Buyer must inform each of the persons described in the preceding sentence of the prohibitions contained in Section 1.126. Buyer further agrees to provide to San Francisco the names of each person, entity or committee described above.
10.15 Sunshine Ordinance
Buyer understands and agrees that under San Francisco’s Sunshine Ordinance (San Francisco Administrative Code, Chapter 67) and the State Public Records Law (Gov. Code Section 7920.000 et seq.), this Agreement and all records, information, and materials submitted to San Francisco under this Agreement are public records subject to public disclosure. Buyer by this Agreement acknowledges that San Francisco may disclose any records, information and materials submitted to San Francisco in connection with this Agreement.
10.16 Tropical Hardwood and Virgin Redwood Ban
The City and County of San Francisco urges companies not to import, purchase, obtain or use for any purpose, any tropical hardwood, tropical hardwood wood product, virgin redwood, or virgin redwood wood product except as expressly permitted by the application of Sections 802(b) and 803(b) of the San Francisco Environment Code.
10.17 No Recording
Neither this Agreement nor any memorandum or short form thereof may be recorded by Buyer.
10.18 Effective Date
As used in this Agreement, the term “Effective Date” will mean the date on which both parties will have executed this Agreement provided the Agreement and the transactions contemplated by the Agreement will have been authorized (a) in a manner required by law governing Buyer, (b) by a duly adopted resolution of San Francisco’s Public Utilities Commission, and (c) if required by San Francisco’s Charter, a duly adopted resolution of San Francisco’s Board of Supervisors and Mayor.
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10.19 Severability
If any provision of this Agreement or the application thereof to any person, entity, or circumstance will be invalid or unenforceable, the remainder of this Agreement, or the application of such provision to persons, entities or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this Agreement will be valid and be enforceable to the fullest extent permitted by law, except to the extent that enforcement of this Agreement without the invalidated provision would be unreasonable or inequitable under all the circumstances or would frustrate a fundamental purpose of this Agreement.
10.20 Acceptance by Buyer
This Agreement will be null and void unless it is accepted by Buyer and two (2) fully executed copies of this Agreement are returned to San Francisco on or before 5:00 p.m.
San Francisco time on ________________, 20___.
10.21 Counterparts
This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
This Agreement may be executed by a party’s signature transmitted by electronic mail in portable document format (“pdf”) or through an electronic signature/online signature service such as “Docusign” and copies of this Agreement executed and delivered by means of pdf signatures or by DocuSign or similar service shall have the same force and effect as copies hereof executed and delivered with original signatures. All parties hereto may rely upon pdf signatures as if such signatures were originals. Upon request by either Party, any Party executing and delivering this Agreement by pdf shall promptly thereafter deliver a counterpart of this Agreement containing said Party’s original signature. All Parties hereto agree that a pdf signature page may be introduced into evidence in any proceeding arising out of or related to this Agreement as if it were an original signature page.
10.22 Cooperative Drafting
This Agreement has been drafted through a cooperative effort of both Parties, and both Parties have had an opportunity to have the Agreement reviewed and revised by legal counsel. No party will be considered the drafter of this Agreement, and no presumption or rule that an ambiguity will be construed against the party drafting the clause will apply to the interpretation or enforcement of this Agreement.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS
AGREEMENT, BUYER ACKNOWLEDGES AND AGREES THAT NO OFFICER OR
EMPLOYEE OF SAN FRANCISCO HAS AUTHORITY TO COMMIT SAN FRANCISCO TO THIS AGREEMENT UNLESS AND UNTIL A RESOLUTION OF SAN FRANCISCO’S
BOARD OF SUPERVISORS WILL HAVE BEEN DULY ENACTED APPROVING THIS
AGREEMENT AND AUTHORIZING THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. THEREFORE, ANY OBLIGATIONS OR LIABILITIES OF SAN
FRANCISCO UNDER THIS AGREEMENT ARE CONTINGENT UPON THE DUE
ENACTMENT OF SUCH A RESOLUTION, AND THIS AGREEMENT WILL BE NULL AND VOID IF SAN FRANCISCO’S BOARD OF SUPERVISORS AND MAYOR DO NOT APPROVE THIS AGREEMENT IN THEIR RESPECTIVE SOLE DISCRETION. APPROVAL
OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT BY ANY
DEPARTMENT, COMMISSION OR AGENCY OF SAN FRANCISCO WILL NOT BE
DEEMED TO IMPLY THAT SUCH RESOLUTION WILL BE ENACTED NOR WILL ANY SUCH APPROVAL CREATE ANY BINDING OBLIGATIONS ON SAN FRANCISCO.
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[SIGNATURES ON FOLLOWING PAGE]
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The Parties have duly executed this Agreement as of the respective dates written below.
SAN FRANCISCO:
CITY AND COUNTY OF SAN FRANCISCO,
a municipal corporation
By: _______________________________
DENNIS J. HERRERA
General Manager
San Francisco Public Utilities Commission
Date: _______________________________
APPROVED AS TO FORM:
DAVID CHIU, City Attorney
By: _______________________________
Nancy Taylor
Deputy City Attorney
BUYER:
CITY OF DALY CITY
a California municipal corporation
By: _______________________________
THOMAS J. PICCOLOTTI
City Manager
Date: _______________________________
APPROVED AS TO FORM
ROSE ZIMMERMAN, City Attorney
By _________________________
Rose Zimmerman
City Attorney
A-1-1
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EXHIBIT A-1
PARCEL NO. 55 DESCRIPTION
All that certain real property located in the County of San Francisco, State of California, described as follows:
[NOTE: NO LEGAL DESCRIPTION PROVIDED BY TITLE COMPANY]
A-2-1
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EXHIBIT A-2
DEPICTION OF PARCEL NO. 55
[see attached]
5145459.5 B-1
EXHIBIT B
DESCRIPTION AND DEPICTION OF EXISTING TUNNEL EASEMENTS
[attached]
5145459.5 C-1
EXHIBIT C
QUITCLAIM DEED
RECORDING REQUESTED BY,
AND WHEN RECORDED RETURN TO:
Real Estate Division
City and County of San Francisco
25 Van Ness Avenue, Suite 400
San Francisco, CA 94102
Attn: Director of Property
and
San Francisco Public Utilities Commission
Real Estate Services
525 Golden Gate Avenue, 10th Floor
San Francisco, CA 94102
Attn: Real Estate Director
MAIL TAX STATEMENTS TO:
City of Daly City
Finance Dept., 2nd Fl
333 90th Street
Daly City, CA 94015
The undersigned hereby declares this instrument to be exempt from Recording Fees (CA Govt. Code §27383) and
Documentary Transfer Tax (CA Rev. & Tax Code §11922 and S.F. Bus. & Tax Reg. Code §1105)
APN: 7284-001, 7284-003, 7282-005, 7282-006 (Space above this line reserved for Recorder’s use only)
QUITCLAIM DEED
(Assessor’s Parcel No. 7284-001, 7284-003, 7282-005, 7282-006) FOR VALUABLE CONSIDERATION, the receipt and adequacy of which are hereby acknowledged, the CITY AND COUNTY OF SAN FRANCISCO, a California municipal corporation (“City”), by and through its Public Utilities Commission, pursuant to Resolution No. ______________, adopted by the Board of Supervisors on ______________, 20___ and approved by the Mayor on ____________, 20___, hereby RELEASES, REMISES AND QUITCLAIMS to the CITY OF DALY CITY, a California municipal corporation, all right, title, and interest City may have in and to the real property located in the County of San Francisco, State of California, described on the attached Exhibit 1 and made a part of this quitclaim deed, together with any and all improvements existing thereon and owned by City as of the date of this quitclaim deed, including but not limited to the Vista Grande Tunnel and all appurtenances thereto.
5145459.5 C-2
Executed as of this _____ day of ______________, 20__.
CITY AND COUNTY OF SAN FRANCISCO,
a municipal corporation
By: ________________________________
SARAH R. OERTH
Director of Property
APPROVED AS TO FORM:
DAVID CHIU
City Attorney
By: ________________________________
NANCY TAYLOR
Deputy City Attorney
DESCRIPTION CHECKED/APPROVED:
By: ________________________________
R. Edward Peterson
Chief Surveyor
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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
) ss
County of ______________ )
On ________________, before me, ____________________________, a notary public in and for said State, personally appeared _____________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature ________________________ (Seal)
5145459.5
Exhibit 1
Description of the Property
All that certain real property located in the County of San Francisco, State of California, described as follows:
5145459.5 D-1-1
EXHIBIT D-1
DESCRIPTION AND DEPICTION OF WETLAND AND STORMWATER FACILITIES
EASEMENT
[see attached]
5145459.5 D-2-1
EXHIBIT D-2
DESCRIPTION AND DEPICTION OF BOX CULVERT AND STORM WATER
OUTLET EASEMENT
[see attached]
5145459.5 D-3-1
EXHIBIT D-3
DESCRIPTION AND DEPICTION OF WETLAND FORCE MAIN EASEMENT
[see attached]
5145459.5 D-4-1
EXHIBIT D-4
DESCRIPTION AND DEPICTION OF ARMORED SPILLWAY EASEMENT
[see attached]
5145459.5 D-5-1
EXHIBIT D-5
DESCRIPTION AND DEPICTION OF FLOATING AND FAN-SHAPED EASEMENT
[see attached]
5145459.5 E-1
EXHIBIT E
EASEMENT DEED
RECORDING REQUESTED BY,
AND WHEN RECORDED RETURN TO:
Real Estate Division
City and County of San Francisco
25 Van Ness Avenue, Suite 400
San Francisco, CA 94102
Attn: Director of Property
and
San Francisco Public Utilities Commission
Real Estate Services
525 Golden Gate Avenue, 10th Floor
San Francisco, CA 94102
Attn: Real Estate Director
MAIL TAX STATEMENTS TO:
City of Daly City
Finance Dept., 2nd Fl
333 90th Street
Daly City, CA 94015
The undersigned hereby declares this instrument to be exempt from Recording Fees (CA Govt. Code §27383) and
Documentary Transfer Tax (CA Rev. & Tax Code §11922 and S.F. Bus. & Tax Reg. Code §1105)
Portions of Block 7283, Lot 004 (Space above this line reserved for Recorder’s use only)
EASEMENT DEED AND AGREEMENT
(Portions of Block 7283, Lot 004,
SFPUC Parcel No. 55)
THIS EASEMENT DEED AND AGREEMENT (this “Easement Deed”) is made by and between the CITY AND COUNTY OF SAN FRANCISCO, a California municipal corporation (“San Francisco” or “Grantor”), acting by and through its PUBLIC UTILITIES COMMISSION (“SFPUC”), and the CITY OF DALY CITY, a California municipal corporation (“Daly City” or “Grantee”). Grantor and Grantee sometimes are referred to collectively in this Easement Deed as the “Parties” or each singularly as a “Party.”
RECITALS
A. San Francisco, through the SFPUC, owns real property located in the City and County of San Francisco, described as SFPUC Parcel No. 55 and designated as a portion of Assessor’s Parcel No. 7283-004, running north along the east and west sides of John Muir Drive (“Property”). The Property is adjacent to portions of the existing Vista Grande Canal (“Canal”).
The Property is more particularly described in the attached Exhibit A-1 and shown generally on the map attached as Exhibit A-2. The Canal handles stormwater for both San Francisco and Daly City.
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B. San Francisco, through the SFPUC, owns easements for its Lake Merced Drainage Tunnel (known as the Vista Grande Tunnel or “Tunnel”) on and across Assessor’s Parcel Nos. 7284-001, 7284-003, 7282-005, 7282-006, running west from the Tunnel portal located on the Property to the Tunnel’s terminus at the Pacific Ocean.
C. The Vista Grande Stormwater System (as defined below) components include the Canal and the Tunnel. However, the existing Canal and Tunnel do not have adequate hydraulic capacity to convey peak storm flows, and this inadequate capacity periodically causes the backup of the Tunnel flows into the Canal and flooding during peak storm events in adjacent low-lying residential areas and along John Muir Drive.
D. Daly City seeks to implement the Vista Grande Basin Drainage Improvement Project (“Project”) to upgrade the Vista Grande storm drain system (“Vista Grande Stormwater System”), which is a regional stormwater system that drains the northwestern portion of Daly City and an unincorporated portion of San Mateo County. The Project would route storm water from the Vista Grande Canal to South Lake Merced as well as to the Pacific Ocean via the Tunnel to alleviate the storm-related flooding in Daly City and San Francisco, reduce uncontrolled overflows from the Vista Grande Canal into Lake Merced, and also facilitate augmentation and management of Lake Merced water levels, which have steadily declined, using sustainable supplies of Daly City’s stormwater, and further the restoration of the drainage basin’s natural hydrology.
E. The Project will route storm water from the Canal through a treatment wetland to be developed on the Property, replace the upstream portion of the Canal with a collection box, a box culvert, a debris screening device, and a diversion structure to handle flows (dry and wet) year-round, and expand the Tunnel capacity in order to better manage the transportation of stormwater to the Pacific Ocean (collectively, “Project Improvements”). The existing outfall from Lake Merced is through the Tunnel, which passes through The Olympic Club Golf Course and Golden Gate National Recreation Area lands.
F. San Francisco agrees to convey to Daly City certain non-exclusive perpetual easements in, under, upon, along, and/or across certain portions of the Property to facilitate the Project, which are defined in Section 1 below and referred to collectively in this Easement Deed as the “Easements.”
G. Daly City, as Lead Agency under the California Environmental Quality Act (“CEQA”), and the Park Service, as Lead Agency under the National Environmental Policy Act (NEPA), have prepared a joint Final Environmental Impact Report and Environmental Impact Statement (“FEIR/FEIS”), pursuant to the provisions of CEQA, which was certified by the State of California on September 8, 2017 (State Clearinghouse Number 2013032001). Daly City approved the Vista Grande South Lake Merced Alternative described in the FEIR/FEIS via City Council Res. No. 17-200, dated December 11, 2017, adopting the mitigation measures included in the FEIR/FEIS and set forth in the Environmental Commitments Record and assumed responsibility for their implementation. On June 9, 2025, the City of Daly City adopted an Addendum to the previously certified Final EIR/EIS for the Project to address minor revisions and additions to the Project that occurred after Project approval.
H. San Francisco is a responsible agency under CEQA for review and approval of aspects of the Project. San Francisco has reviewed and considered the FEIR/FEIS and the Project approval documents and has approved this Agreement and adopted findings required under CEQA.
I. The SFPUC Commission has recommended sale of the Easements pursuant to SFPUC Resolution No. ______ and the San Francisco Board of Supervisors has approved the sale pursuant to Resolution No. _______.
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NOW, THEREFORE, for good and valuable consideration, the amount and sufficiency of which are hereby acknowledged, the Parties agree as follows.
AGREEMENT
1. Easements. The Easements are perpetual, non-exclusive easements comprised of:
(i) the Wetland and Stormwater Facilities Easement defined in Section 1(a) below; (ii) the Box Culvert and Stormwater Outlet Easement defined in Section 1(b) below (iii) the Wetland Force Main Easement defined in Section 1(c) below; (iv) the Armored Spillway Easement defined in Section 1(d) below; and (v) the Floating and Fan-Shaped Easement defined in Section 1(e) below.
San Francisco hereby conveys to Daly City the Easements upon, over, under, across, and within the portions of the Property described below:
(a) An easement to construct, access, install, operate, repair, replace, and maintain a treatment wetland, diversion structure, box culverts, the eastern portal of the Vista Grande drainage tunnel, the Lake Merced overflow inlet, and related appurtenances, including perimeter fencing (“Wetland and Stormwater Facilities Easement”), upon, over, under, across, and within an approximately 157,448-square-foot easement area, which is more particularly described and depicted in the attached Exhibit 3 (“Wetland and Stormwater Facilities Easement Area”). The Wetland and Stormwater Facilities Easement Area is designated as a portion of Assessor’s Parcel No. 7283-004.
(b) An easement to construct, access, install, repair, replace and maintain new box culverts, a storm water outlet, and related appurtenances (“Box Culvert and Storm Water Outlet Easement”), upon, over, under, across, and within an approximately 12,404-square-foot easement area, which is more particularly described and depicted in the attached Exhibit 4 (“Box Culvert and Storm Water Outlet Easement Area”). The Box Culvert and Storm Water Outlet Easement Area is designated as a portion of Assessor’s Parcel No. 7283-004. (c) An easement to construct, access, install, repair, replace and maintain a wetland force main, pump station, vault and related appurtenances (“Wetland Force Main Easement”), upon, over, under, across, and within an approximately 2,057-square-foot easement area, which is more particularly described and depicted in the attached Exhibit 5 (“Wetland Force Main Easement Area”). The Wetland Force Main Easement Area is designated as a portion of Assessor’s Parcel No. 7283-004.
(d) An easement to access and maintain three (3) existing armored spillway areas (“Armored Spillway Easement”) upon, over, under, across, and within three easement areas designated as Parcel 1, Parcel 2, and Parcel 3. Parcel 1 comprises an approximate 407 square-foot portion of the Property, Parcel 2 comprises an approximate 2,918 square-foot portion of the Property, and Parcel 3 comprises an approximate 3,319 square-foot portion of the Property, all of which are more particularly described and depicted in the attached Exhibit 6 (“Armored Spillway Easement Area”). The Armored Spillway Easement Area is designated as a portion of Assessor’s Parcel No. 7283-004.
(e) An easement to construct, access, install, operate, repair, replace and maintain a floating pipeline, facility and appurtenances over Lake Merced (“Floating and Fan-Shaped Easement”), upon, over, under, across, and within an approximately 1,457-square- foot fan-shaped easement area, which is more particularly described and depicted in the attached Exhibit 7 (“Floating and Fan Shaped Easement Area”). The Floating and Fan-Shaped Easement Area is designated as a portion of Assessor’s Parcel No. 7283-004.
The foregoing easement areas are referred to collectively in this Easement Deed as the “Easement Areas.”
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2. Permitted Uses. The Easements include the right and privilege to maintain and repair each Easement, inclusive of all necessary supports, fences, protective barriers, and fixtures for use in connection with the Project. The Easements include the right to modify, remove, or replace the Project Improvements, provided that Daly City obtains San Francisco’s prior written approval of the proposed modification, removal and/or replacement, which approval will not be unreasonably withheld, conditioned, or delayed. In an emergency, however, Daly City may make such modifications as are reasonably necessary under the circumstances to preserve or restore the safe use of the Easements, without San Francisco’s prior approval, provided that Daly City will give San Francisco such notice of the modifications as is reasonable under the circumstances, which may be given retroactively. Further, the Easements include the right of ingress to and egress from the Easement Areas over and across the Property, provided that Daly City’s right of ingress and egress will not extend to any portion of the Property that is isolated from the Easements by any public road or highway now crossing or thereafter crossing the Property. San Francisco reserves the right to use said Easement Areas for purposes that will not interfere with Daly City’s full enjoyment of the rights granted by this Easement Deed; provided that neither San Francisco nor its successors or assigns will excavate, erect, place, or construct any permanent building or other structures, septic system, leach field, construct any fence, place underground utilities, drill, or operate any well, or construct any reservoir or other obstruction within said Easement Areas, or diminish or install anything that will interfere with the rights in this Easement Deed granted to Daly City within said Easement Areas. Daly City’s rights under this Easement Deed may be exercised by Daly City and its officials, employees, agents, contractors, subcontractors, consultants, licensees, invitees, or representatives, or by any other authorized persons acting for or on Daly City’s behalf (collectively, “Agents”).
3. San Francisco’s Retained Rights. San Francisco, on behalf of itself, its agents, contractors, subcontractors, suppliers, consultants, employees, invitees or other authorized persons acting for or on behalf of San Francisco, including but not limited to any lessee and its tenants, reserves the right to use the Property and the Easement Area in any way not inconsistent with the above Permitted Uses.
4. Subject to San Francisco’s Uses. Daly City is aware that the Easement Areas constitute portions of the SFPUC’s regional water, power transmission, and wastewater treatment systems. Notwithstanding anything to the contrary in this Easement Deed, all of Daly City’s Project activities under this Easement Deed will be subject and subordinate at all times to San Francisco’s existing and future access to and use of the Easement Areas for primary utility and directly related purposes, which may include construction of additional subsurface pipelines or facilities within the Easement Areas; provided that San Francisco will not do anything in, on or under the Easement Areas that causes damage to the Project Improvements or unreasonably interferes with the exercise of Daly City’s Easement rights, without prior written notice of at least one hundred eighty (180) days to Daly City, and San Francisco shall endeavor to reasonably coordinate any such actions with Daly City and shall take reasonable measures to minimize any damage to the Project Improvements or interference with the Easements. San Francisco will in no way be liable for any damage or destruction to the Easement Areas or the personal property of Daly City or its Agents resulting from any construction, accident, break, repair, assessment, or maintenance of any pipeline or other SFPUC facilities located on or about the Easement Areas.
Daly City acknowledges that San Francisco may use the open trench method for access to San Francisco’s existing or future facilities or pipelines located on or about the Easement Areas in the event of maintenance, repair, replacement, construction, or installation of any existing, future, or additional pipelines, conduits, transmission lines, tunnels, boxes, or other SFPUC facilities.
San Francisco also reserves the right to use the subsurface of the Property for the installation, operation, maintenance, repair, or replacement of public utilities, including pipes, cable, manholes, or other infrastructure typically required for utility lines. The rights granted to Daly City by this Easement Deed are subject to any prior and existing rights of third parties, if any. Daly City will be solely liable for any claims for the interference of any prior and existing third-party rights caused by Daly City’s use of the Easement Areas and the Property. San Francisco reserves the
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right to grant, at its sole and absolute discretion, nonexclusive rights to other third parties within the Easement Areas provided that such rights do not materially interfere with the Easements.
San Francisco will require such other third parties to consult with Daly City on design, location, and construction activities, but Daly City will have no rights of approval or disapproval.
5. Exercise of Due Care. Daly City will use and will cause its Agents (defined in Section 2 [Permitted Uses] above) to use, due care at all times to avoid any damage or harm to San Francisco’s water pipelines, facilities, or other property and to native vegetation and natural attributes of the Easement Areas and to minimize slope erosion. Except as permitted pursuant to Section 12 [Construction and Ownership of Project Improvements] below, Daly City will not disturb the surface of the Easement Areas or perform any excavation work without San Francisco’s prior written approval, which San Francisco may withhold at its sole discretion. San Francisco may condition and/or oversee any permitted excavation work. At its own expense, Daly City will mark the location of San Francisco’s utility pipelines or other facilities within the Easement Areas and will not use any pick, plow, or other sharp tool to remove the two feet (2′) of soil around the pipelines or other facilities, provided that Daly City may use hand shovels or pneumatic shovels in compliance with all other terms and conditions of this Easement Deed. Daly City will immediately inform San Francisco of any actual or potential damage to the coating of the pipeline, and any such damage will be promptly repaired by Daly City, at its own expense, to San Francisco’s satisfaction prior to backfilling; provided, at its sole discretion, San Francisco may elect to make any necessary repairs itself, at Daly City’s sole cost, by notifying Daly City of such fact. Upon completion of such repairs, San Francisco will send Daly City a bill therefor, which Daly City will pay within thirty (30) days following receipt. Under no circumstances will Daly City damage, harm, or take any rare, threatened, or endangered species present on or about the Easement Areas.
6. Assignment. Daly City will not assign its rights under this Easement Deed, in whole or in part, without San Francisco’s prior written consent. San Francisco will not unreasonably withhold, condition or delay its consent if Daly City proposes to transfer the Easements to any other agency or entity.
7. Indemnity. Daly City will indemnify, defend, reimburse and hold harmless San Francisco, its officers, agents, employees and contractors, and each of them, from and against all demands, claims, legal or administrative proceedings, losses, costs, penalties, fines, liens, judgments, damages and liabilities of any kind, including all costs and reasonable attorney’s fees in providing a defense to any claim arising therefrom (“Claims”), arising in any manner out of (a) injury to or death of any person or damage to or destruction of any property occurring in, on, or about the Easement Areas when such injury, death, damage, or destruction is caused by the person or property of Daly City, its Agents, its invitees, guests or business visitors (collectively, “Invitees”) relating to Daly City’s use or activity under this Easement Deed, (b) any failure by Daly City to observe or perform any of the terms, covenants, or conditions of this Easement Deed, (c) the use of the Easement Areas or any activities conducted thereon by Daly City or its Agents or Invitees, or (d) any release or discharge, or threatened release or discharge, of any Hazardous Material caused or allowed by Daly City or its Agents or Invitees, on, in, under, or about the Easement Areas, any improvements thereon, or into the environment; except solely to the extent arising out of or caused by the negligence or willful misconduct of San Francisco or San Francisco’s authorized representatives. Daly City’s obligations under this Section will survive the termination of the Easements, with respect to events occurring prior to such termination.
8. Insurance. Daly City must maintain in force, and cause each Agent performing work on the Easement Areas, to procure and keep in effect during the course of any work, appropriate amounts of insurance and add San Francisco as additional insured for those respective policies. Notwithstanding anything to the contrary above, Daly City and San Francisco each
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acknowledges that the other self-insures and will not be obligated to purchase any third-party commercial liability insurance or property insurance.
9. Restrictions on Use.
(a) Improvements. Except as otherwise expressly provided in this Easement Deed, Daly City will not construct or place any temporary or permanent structures or improvements in, on, under, or about the Easement Areas, nor will Daly City make any alterations or additions to any of existing structures or improvements on the Easement Areas or excavate any portion of the Easement Areas, unless Daly City first obtains San Francisco’s prior written consent, which San Francisco may give or withhold at its sole and absolute discretion. “Improvements” are defined as and include asphalt, concrete and cementitious concrete driveways, sidewalks and parking areas, structures, shacks, and storage facilities, and fences installed or constructed by or on behalf of Daly City in, on, under, or about the Easement Areas. (b) Dumping. Daly City will not cause, nor will Daly City allow any of its Agents or Invitees to cause the dumping or other disposal in, on, under, or about the Easement Areas of landfill, refuse, Hazardous Material (defined below), or any other materials, including materials that are unsightly or could pose a hazard to human health or safety, native vegetation or wildlife, or the environment.
(c) Hazardous Material. Daly City will not cause, nor will Daly City allow any of its Agents or Invitees to cause, any Hazardous Material (defined below) to be brought upon, kept, used, stored, generated, released, or disposed of in, on, under, or about the Easement Areas, or transported to, from, or over the Easement Areas, except that Daly City is permitted to bring onto the Easement Areas products and materials commonly used in or essential to the installation of the Project Improvements that may contain Hazardous Material, provided that any such products and materials will be handled and used in compliance with all applicable state, federal, or local laws, statutes, ordinances, rules, regulations, policies, orders, edicts, and the like (collectively, “Laws”) and only in such quantities as are necessary for the permitted uses of the Easements.
Daly City will immediately notify San Francisco if and when Daly City learns of, or has reason to believe that, a release of Hazardous Material has occurred in, on, under, or about the Easement Areas. In the event that any Hazardous Material brought to the Easement Areas by Daly City or any of its Agents or Invitees is spilled or leaked or otherwise released on the Easement Areas as a result of Daly City’s exercise of its rights under this Easement Deed, Daly City will promptly take all steps necessary to remove any contamination resulting from such activities.
Daly City accepts full responsibility for all activities and costs incurred related to cleaning up the Easement Areas from the effects of such spill or leak. With respect to Hazardous Material brought to the Easement Areas by Daly City or its Agents or Invitees, Daly City will be responsible for meeting, and possessing the means to satisfy, the requirements of all federal, state, and local controlling agencies, which may have jurisdiction over the region in which the Easement Areas are located or over the substance being used by Daly City on the Easement Areas. In the event that Daly City or its Agents or Invitees cause a release of Hazardous Material, at San Francisco’s discretion, Daly City will either remediate, at Daly City’s sole cost, such contaminated property to the satisfaction of the regulatory agency having jurisdiction over same or reimburse San Francisco for its reasonable costs in performing such remediation. Daly City will further comply with all applicable Laws requiring notice of such releases or threatened releases to governmental agencies, and will take all action necessary or desirable to mitigate the release or minimize the spread of contamination. In connection with any release of Hazardous Material on or about the Easement Areas, Daly City will afford San Francisco a full opportunity to negotiate and participate in any discussion with governmental agencies and environmental consultants regarding any settlement agreement, cleanup or abatement agreement, consent decree, or other compromise proceeding involving Hazardous Material, and any other abatement or clean-up plan, strategy, and procedure.
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For purposes of this Easement Deed, “Hazardous Material” means material that, because of its quantity, concentration, or physical or chemical characteristics, is at any time now or hereafter deemed by any federal, state, or local governmental authority to pose a present or potential hazard to public health, welfare, or the environment. Hazardous Material includes the following: any material or substance defined as a “hazardous substance, pollutant or contaminant” pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601 et seq., or pursuant to Section 25316 of the California Health & Safety Code or any other applicable Laws; a “hazardous waste” listed pursuant to Section 25140 of the California Health & Safety Code; any asbestos and asbestos-containing materials whether or not such materials are part of the Easement Areas or are naturally occurring substances in the Easement Areas; and any petroleum, including crude oil or any fraction thereof, natural gas or natural gas liquids, provided, the foregoing will not prohibit Daly City from traversing to, from, and across the Easement Areas in standard motor vehicles that do not exceed the weight limitations set forth below. The term “release” or “threatened release” when used with respect to Hazardous Material will include any actual or imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing in, on, under, or about the Easement Areas.
(d) Nuisances. Daly City will not conduct or allow any of its Agents or Invitees to conduct any activities in, on, under, or about the Easement Areas that constitute waste, nuisance, or unreasonable annoyance (including emission of objectionable odors, noises, or lights) to San Francisco, to the owners or occupants of neighboring property, or to the public, or that constitute waste or nuisance per se.
(e) Avoiding Damage to the Easement Areas. At its sole cost, Daly City will at all times maintain the Easement Areas in a good, clean, safe, secure, sanitary, and sightly condition, so far as the Easement Areas may be affected by Daly City’s activities under this Easement Deed. Daly City will not do anything in, on, under, or about the Easement Areas that could cause damage or interference to any pipelines or other property located in, on, under, or about the Easement Areas. Immediately following completion of any work permitted under this Easement Deed, at its sole expense, Daly City will remove all debris and any excess dirt and restore the Easement Areas as near as reasonably possible to its condition immediately prior to Daly City’s work under this Easement Deed to the reasonable satisfaction of San Francisco’s authorized representative.
If any portion of the Easement Areas or any San Francisco property located on or about the Easement Areas is damaged or threatened by any of the activities conducted by Daly City or its Agents or Invitees, at its sole cost, Daly City will immediately notify San Francisco of such damage or threat by (a) telephoning the SFPUC’s City Distribution Division by telephone at (415) 550-4900 of any emergency or incident requiring emergency response., and (b) providing written notice in accordance with Section 17 [Notices] below. At its option, San Francisco may remedy such damage or threat at Daly City’s sole cost, or San Francisco may elect to witness Daly City’s repair work. If San Francisco elects not to remedy such damage or threat, Daly City will repair all such damage and restore the Easement Areas or property to its previous condition subject to San Francisco’s inspection, review, and approval. San Francisco has no responsibility or liability of any kind with respect to any utilities that may be on, in, or under the Easement Areas.
Daly City is solely responsible for the location of any such utilities and other existing facilities and their protection from damage. Daly City will be solely responsible to arrange and pay directly for any utilities or services necessary for its activities pursuant to this Easement Deed; provided, Daly City will obtain San Francisco’s prior written approval to the provision of such services or utilities in, on, under, or through the Easement Areas. (f) Use of Adjoining Land. Daly City acknowledges that the privilege given under this Easement Deed will be limited strictly to the Easement Areas. Daly City will not
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traverse over or otherwise use any adjoining lands of San Francisco except as authorized by this Easement Deed.
(g) Ponding; Water Courses. Daly City will not cause any ponding on the Easement Areas or any flooding on adjacent land. Daly City will not engage in any activity that causes any change, disturbance, fill, alteration, or impairment to the bed, bank, or channel of any natural water course, wetland, or other body of water on, in, under, or about the Easement Areas, nor will Daly City engage in any activity that could pollute or degrade any surface or subsurface waters or result in the diminution or drainage of such waters. (h) Heavy Equipment and Vehicles. To prevent damage to San Francisco’s underground pipelines and wastewater utility facilities, Daly City’s use of vehicles and equipment within twenty feet (20′) of each side of the centerline of any San Francisco pipeline (measured on the surface) will be subject to the following restrictions:
(i) The depth of soil cover over the tops of San Francisco’s pipelines must be at least three feet (3′) for steel cylinder pipe and four feet (4′) for reinforced pre-stressed concrete cylinder pipe to accommodate the loading defined in subsection (ii) below. If any equipment with axle loading exceeds the loads stated in subsection (ii) below or if the depth of soil cover is less than stated above, Daly City will submit to San Francisco for review and approval, at San Francisco’s sole discretion, engineering calculations prepared by a licensed Professional Engineer licensed in California showing that San Francisco’s pipelines will not be adversely affected by Daly City’s proposed activities. If San Francisco’s pipelines may be adversely affected, Daly City will submit remedial measures for San Francisco’s approval to ensure that no adverse effect will occur.
(ii) The effects of vehicle and equipment loads to the pipeline must not exceed the effects of the “AASHTO Standard H-10 Loading.” H-10 loading is defined as loading caused by a two-axle truck with a gross weight of ten tons (20,000 lbs.), axles fourteen feet (14′) apart, and rear axle carrying eight tons (16,000 lbs.). Daly City will be responsible for providing adequate evidence to San Francisco that Daly City’s equipment and vehicles meet the foregoing requirements.
(iii) Daly City will not use vibrating compaction equipment without the SFPUC’s prior written approval, which approval may be given or withheld at the SFPUC’s sole discretion.
(iv) If the depth of the soil cover over the pipeline (determined by potholing or other proof procedure) is less than the minimum stated in subsection (i) above, unless an alternate method is approved by the SFPUC in writing, all excavation and grading over the pipeline will be performed manually. For any machinery or equipment excavation and grading over and/or within twenty feet (20′) of each side of the centerline of the pipeline (measured on the surface), Daly City will submit a written proposal together with all supporting calculations and data to the SFPUC for review and approval. In any case, the two feet (2′) of soil around the pipeline will be removed manually or by other methods approved by the SFPUC with due care as provided in Section 4 [Exercise of Due Care].
10. Cathodic and Other Protection. From time to time, San Francisco may adopt such reasonable rules and regulations with regard to Daly City’s facilities and operations under this Easement Deed as San Francisco may determine are necessary or appropriate, at San Francisco’s sole discretion, to safeguard against corrosion of, or other damage to, San Francisco’s pipelines and related facilities. After receipt of a copy of such rules and regulations, Daly City will comply promptly with them.
5145459.5 E-9
11. Compliance with Laws. At its expense, Daly City will conduct and cause to be conducted all activities on the Easement Areas allowed under this Easement Deed in a safe and reasonable manner and in compliance with all Laws of any governmental or other regulatory entity (including the Americans with Disabilities Act) and all covenants, restrictions, and provisions of record, whether presently in effect or subsequently adopted and whether or not in the contemplation of the Parties.
12. Maintenance. At its expense, Daly City will repair and maintain the Easement Areas as to wear and tear caused by the proportionate use of the Easement Areas by Daly City and its Agents, in San Francisco’s sole determination, but not the wear and tear caused by the use of the Easement Areas by others.
13. Construction and Ownership of Project Improvements. The Parties acknowledge that the Project Improvements, once constructed by Daly City within the Easement Areas in accordance with the plans and specifications that have been approved by City and are on file with the SFPUC’s San Francisco Water Division (“Approved Plans”), will belong to Daly City. Subject to the terms and conditions of this Easement Deed, at its sole cost and expense, Daly City may construct or cause the construction of modifications, additions, or replacements of such Project Improvements and will, at its sole cost and expense, maintain the Project Improvements in good, safe condition and repair.
14. Approval of Daly City’s Approved Plans. Daly City will construct and install the Project Improvements in the Easement Areas, including modifications, additions, or replacements to the Project Improvements, in strict accordance with the Approved Plans (including drawings) approved in advance and in writing by San Francisco. Any Approved Plans may be revised or amended only with San Francisco’s prior written approval, at its sole discretion, after the SFPUC’s Bureau of Environmental Management has determined that no further environmental review is required by CEQA as a result of any such revision or amendment. San Francisco’s consent to or approval of any improvements, equipment, or fixtures will not relieve Daly City or its Agents from any liability for negligence, errors, or omissions associated with the design and construction of the Project Improvements. In no event will San Francisco’s approval of the Approved Plans or any future revisions or amendments to the Approved Plans be deemed to constitute a representation or warranty by San Francisco concerning the suitability of the improvements, equipment, or fixtures for Daly City’s purposes or that the work called for in the Approved Plans complies with applicable Laws or industry standards nor will such approval release Daly City from Daly City’s obligation to supply plans and specifications that conform to any applicable Laws, including building codes, and industry standards. Within ninety (90) calendar days following final completion of any work performed under this Easement Deed, Daly City shall provide the SFPUC with as-built drawings to confirm the location of Daly City’s Project Improvements.
15. Permits and Approvals. Before beginning any work in the Easement Areas, Daly City will obtain all permits, licenses, and approvals (collectively, “Approvals”) of all regulatory agencies and other third parties that are required to commence, complete, and maintain the permitted work. Promptly upon receipt of such Approvals, Daly City will deliver copies of them to the SFPUC. Daly City recognizes and agrees that no approval by San Francisco or the SFPUC for purposes of Daly City’s work under this Easement Deed will be deemed to constitute the approval of any federal, state, or local regulatory authority with jurisdiction, and nothing in this Easement Deed will limited Daly City’s obligation to obtain all such regulatory Approvals required by Laws, at Daly City’s sole cost.
16. Cooperation with the SFPUC. Daly City and its Agents will cooperate with San Francisco or SFPUC personnel to minimize any potential disruption (even if temporary) of San Francisco’s facilities in, under, on, or about the Easement Areas and the SFPUC’s use thereof.
5145459.5 E-10
17. Restoration of Easement Areas. Immediately following completion of any work permitted under this Easement Deed, Daly City will remove all debris and any excess dirt, repair any damaged caused to the SFPUC’s facilities and adjacent property, and place the Easement Areas in the condition reflected in the Approved Plans. Any area that is not slated for modification in the Approved Plans, but altered by the work, will be returned to pre-work condition, to San Francisco’s reasonable satisfaction.
18. Notices. Any notice, consent, or approval required or permitted to be given under this License will be in writing and will be given by (a) hand delivery, against receipt, (b) reliable next business day courier service that provides confirmation of delivery, or (c) United States registered or certified mail, postage prepaid, return receipt required, and addressed as follows (or to such other address as either party may from time to time specify in writing to the other upon five (5) days’ prior, written notice in the manner provided above):
San Francisco or the SFPUC: Real Estate Services Division San Francisco Public Utilities Commission
525 Golden Gate Avenue, 10th Floor
San Francisco, California 94102
Attn: Real Estate Director
Re: Vista Grande Sale of Easements, Daly City
with a copy to: Office of the City Attorney of San Francisco 1 Dr. Carlton B Goodlett Place
San Francisco, California 94012
Attn: Real Estate/Finance Team
Re: Vista Grande Sale of Easements, Daly City
Daly City: Department of Water and Wastewater
City of Daly City
153 Lake Merced Blvd
Daly City, CA 94015
Attn: Director
Re: Vista Grande Tunnel Easements
with a copy to: City of Daly City
33 90th Street, Third Floor
Daly City, CA 94015
Attn: City Attorney
Re: Vista Grande Tunnel Easements
A properly addressed notice transmitted by one of the foregoing methods will be deemed received upon the confirmed date of delivery, attempted delivery, or rejected delivery, whichever occurs first. Any e-mail addresses, telephone numbers, or facsimile numbers provided by one party to the other will be for convenience of communication only; neither party may give official or binding notice orally or by e-mail or facsimile. The effective time of a notice will not be affected by the receipt, prior to receipt of the original, of an oral notice or an e-mail or telefacsimile copy of the notice.
19. Successors and Assigns. The Easements and the ancillary rights granted by San Francisco in this Easement Deed are granted to Daly City in gross, with the Property serving as the servient tenement and without any particular dominant tenement benefiting from the Easements. The provisions of this Easement Deed will run with the land, burden the Easement Areas, and inure to the benefit of and bind the respective successors and assigns of San Francisco and Daly City.
5145459.5 E-11
20. Counterparts. This Easement Deed may be executed in counterparts, each of which will be an original, but all counterparts will constitute one instrument.
21. General Provisions. (a) This Easement Deed may be amended or modified only by a writing signed by San Francisco and Daly City. (b) No waiver by any party of any of the provisions of this Easement Deed will be effective unless in writing and signed by an officer or other authorized representative of such party, and only to the extent expressly provided in such written waiver. (c) All approvals and determinations of San Francisco requested, required, or permitted under this Easement Deed may be made by the General Manager of the SFPUC. (d) This instrument (including the attached exhibits) contains the entire agreement between the Parties with regard to the Easements and all prior written or oral negotiations, discussions, understandings, and agreements are merged into this Easement Deed. (e) The section and other headings of this Easement Deed are for convenience of reference only and will be disregarded in the interpretation of this Easement Deed. (f) Time is of the essence. (g) This Easement Deed will be governed by California law and San Francisco’s Charter and Administrative Code. (h) The obligations of Daly City under this Easement Deed will be joint and several. (i) This Easement Deed has been drafted through a cooperative effort of San Francisco and Daly City, and both Parties have had an opportunity to have this Easement Deed reviewed and revised by legal counsel. No party will be considered the drafter of this Easement Deed, and no presumption or rule that an ambiguity will be construed against the party drafting the clause will apply to the interpretation or enforcement of this Easement Deed. (j) Use of the word “including” or similar words will not be construed to limit any general term, statement, or other matter in this Easement Deed, whether or not language of non-limitation, such as “without limitation,” “but not limited to,” or similar words, are used. (k) Notwithstanding anything to the contrary contained in this Easement Deed, San Francisco acknowledges and agrees that no officer or employee of San Francisco has authority to commit San Francisco to this Easement Deed unless and until a resolution approving this Easement Deed of San Francisco’s Public Utilities Commission and San Francisco’s Board of Supervisors and Mayor will have been duly adopted and approved. Therefore, any obligations or liabilities of San Francisco under this Easement Deed are contingent upon enactment of such a resolution and/or ordinance, and this Easement Deed will be null and void if San Francisco’s SFPUC, Board of Supervisors and Mayor do not approve this Easement Deed, at their respective sole discretion. (l) This Easement Deed shall be recorded in the Official Records of the City and County of San Francisco, California.
[SIGNATURES ON FOLLOWING PAGE]
5145459.5 E-12
Executed as of this _____ day of ______________, 202_.
CITY AND COUNTY OF SAN FRANCISCO,
a municipal corporation
By: ________________________________
SARAH R. OERTH
Director of Property
APPROVED AS TO FORM:
DAVID CHIU
City Attorney
By: ________________________________
Nancy Taylor
Deputy City Attorney
DESCRIPTION CHECKED/APPROVED:
By: ________________________________
R. Edward Peterson
Chief Surveyor
5145459.5 E-13
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
) ss
County of ______________ )
On ________________, before me, ____________________________, a notary public in and for said State, personally appeared _____________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature ________________________ (Seal)
5145459.5
Exhibit 1
Description of the Property
All that certain real property located in the County of San Francisco, State of California, described as follows:
[NOTE: DESCRIPTION TO COME FROM TITLE REPORT]
5145459.5
Exhibit 2
Depiction of the Property
[see attached]
5145459.5
Exhibit 3
Description and Depiction of Wetland and Stormwater Facilities Easement Area [see attached]
5145459.5
Exhibit 4
Description and Depiction of Box Culvert and
Storm Water Outlet Easement Area
[see attached]
5145459.5
Exhibit 5
Description and Depiction of Wetland Force Main Easement Area [see attached]
5145459.5
Exhibit 6
Description and Depiction of Armored Spillway Easement Area [see attached]
5145459.5
Exhibit 7
Description and Depiction of Floating and
Fan Shaped Easement Area
[see attached]
5145459.5 F-1
EXHIBIT F
LEASE TERMINATION AGREEMENT
This Lease Termination Agreement (the “Agreement”) is entered into ___________________, 202__, by and between the CITY AND COUNTY OF SAN FRANCISCO, a California municipal corporation (“City”), acting by and through its PUBLIC UTILITIES COMMISSION (“SFPUC”), and the CITY OF DALY CITY, a California municipal corporation (“Daly City”). City and Daly City sometimes are referred to collectively in this Agreement as the “Parties” or singularly as “Party.”
RECITALS
This Agreement is made with reference to the following facts:
A. On July 2, 2007, the Parties entered into a Ground Lease (“Daly City Lease”), for the Lake Merced Drainage Tunnel (also known as the Vista Grande Tunnel or “Tunnel”) near Lake Merced in San Francisco. The Daly City Lease allows Daly City to operate, maintain, and repair the Tunnel. The Daly City Lease is attached hereto as Attachment 1 and incorporated herein by reference.
B. The Daly City Lease expired in 2017 and is currently in holdover status.
C. The Parties desire to enter into this Agreement for the purpose of agreeing to terminate the Daly City Lease, effective as of the Closing Date (“Lease Termination Date”) as defined in the Agreement for Sale of Real Estate entered into by the Parties and dated _____________, 202__.
NOW, THEREFORE, the Parties hereby acknowledge and agree as follows:
AGREEMENT
1. Lease Termination. The Parties each acknowledges and agrees that the Daly City Lease and all of the Parties’ right, title and interest under the Daly City Lease shall be deemed terminated effective on the Lease Termination Date; provided, however, that any rights or obligations specifically identified in the Daly City Lease to survive lease termination shall so survive.
2. Successors and Assigns. The provisions of this Agreement will inure to the benefit of and bind the respective successors and assigns of Parties.
3. Counterparts. This Agreement may be executed in counterparts, each of which will be an original, but all counterparts will constitute one instrument.
4. General Provisions. (a) This Agreement may be amended or modified only by a writing signed by the Parties. (b) No waiver by any Party of any of the provisions of this Agreement will be effective unless in writing and signed by an officer or other authorized representative, and only to the extent expressly provided in such written waiver. (c) All approvals and determinations of the City requested, required, or permitted under this Agreement may be made by the General Manager of the SFPUC. (d) This instrument (including the attached exhibits) contains the entire agreement between the Parties with regard to the subject matter of this Agreement and all prior written or oral negotiations, discussions, understandings, and agreements are merged into this Agreement. (e) This Agreement will be governed by California law and San Francisco’s Charter and Administrative Code. (f) This Agreement has been drafted through a cooperative effort of the
5145459.5 F-2
City and Daly City, and both Parties have had an opportunity to have this Agreement reviewed and revised by legal counsel. No party will be considered the drafter of this Agreement, and no presumption or rule that an ambiguity will be construed against the party drafting the clause will apply to the interpretation or enforcement of this Agreement.
IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the respective dates written below.
CITY AND COUNTY OF SAN FRANCISCO,
a municipal corporation
By: _______________________________
DENNIS J. HERRERA
General Manager
San Francisco Public Utilities Commission
Date: _______________________________
APPROVED AS TO FORM:
DAVID CHIU, City Attorney
By: _______________________________
Nancy Taylor
Deputy City Attorney
CITY OF DALY CITY
a California municipal corporation
By: _______________________________
THOMAS J. PICCOLOTTI
City Manager
Date: _______________________________
APPROVED AS TO FORM
ROSE ZIMMERMAN, City Attorney
By: ______________________________
Rose Zimmerman
City Attorney
5145459.5 F-3
ATTACHMENT 1
DALY CITY LEASE
City Council Meeting Agenda Report Item # _____
props
Meeting Date: November 24, 2025
Subject: Authorize License Agreement with the City and County of San Francisco for the Construction Staging Area of the Vista Grande Drainage Basin Improvement Project
Recommended Action
Authorize the City Manager to execute a License Agreement with the City and County of San Francisco (SFPUC) for the construction staging area of the Vista Grande Drainage Basin Improvement Project.
Background
The Vista Grande Drainage Basin Improvement Project (Project) is a multi-benefit stormwater management project that will manage, treat, and reuse stormwater in the Vista Grande Drainage Basin while also providing regional water quality, water supply, and recreational benefits.
The Vista Grande storm drain system drains the northwestern portion of Daly City (City) and an unincorporated portion of San Mateo County – areas originally within the watershed of Lake Merced. In the 1890’s, the Vista Grande Canal and Tunnel were built to divert storm water away from the lake to an outlet at the Pacific Ocean. The existing Canal and Tunnel do not have adequate hydraulic capacity to convey peak storm flows, and this periodically causes backup of Tunnel flows into the Canal and flooding during peak storm events in adjacent low-lying residential areas and along John Muir Drive. This Project will allow the City and SFPUC to work collaboratively to alleviate flooding in the Vista Grande Drainage Basin and Lake Merced Tract and facilitate augmentation and management of Lake Merced water levels using sustainable supplies of the City’s stormwater.
Discussion
This agreement is made with reference to the following recitals:
A. San Francisco, through the SFPUC, owns real property located in the City and County of San Francisco, described as SFPUC Parcel No. 55 and designated as a portion of Assessor’s Parcel No. 7283-004, running north along the east and west sides of John Muir Drive.
B. Daly City seeks to implement its Vista Grande Drainage Basin Improvement Project to upgrade the Vista Grande storm drain system, which is a regional stormwater system that drains the northwestern portion of Daly City and an unincorporated portion of San Mateo County. The Project seeks to alleviate storm-related flooding in Daly City and San Francisco, reduce uncontrolled overflows from Daly City’s Vista Grande Canal into Lake Merced, and also facilitate the augmentation and management of Lake Merced water levels, which have steadily declined, by using sustainable supplies of Daly City’s stormwater.
C. The Project would route storm and non-storm water from the Canal through a diversion structure to be developed on the Property and then would either discharge stormwater to Lake Merced or route it through the Vista Grande Tunnel to be discharged into the Pacific Ocean.
Portions of the water would be routed through a treatment wetland to be developed on the property before being discharged into Lake Merced.
City Council Agenda Report
Subject: Authorize License Agreement with the City and County of San Francisco for the Construction Staging Area of the Vista Grande Drainage Basin Improvement Project
Meeting Date: November 24, 2025
D. To facilitate the Project, Daly City intends to acquire certain easements and licenses for the construction, operation, and maintenance of Project improvements on portions of the Property.
E. The Project will require the temporary use of portions of the Property for construction related activities, including: (i) daily contractor parking; (ii) the storage of equipment, materials, and supplies; (iii) the relocation of existing above-ground and subsurface utilities (i.e., AT&T communications cables, PG&E gas transmission pipelines, and a 33-inch treated effluent gravity pipeline); and (iv) temporary workspace adjacent to the Easements to facilitate the construction and installation work.
Fiscal Impact
Sufficient funds are available in the Sanitation Fund 87 fund balance to cover the $11,256 application and use fees.
Summary/Conclusion
Authorize the City Manager to execute a License Agreement with the City and County of San Francisco (SFPUC) for the construction staging area of the Vista Grande Drainage Basin Improvement Project.
Staff is available to provide any additional information desired by the City Council members.
Respectfully submitted,
Joshua Cosgrove Rose Zimmerman
Director of Water and Wastewater Resources City Attorney
Attachment: Draft License Agreement for Construction Staging Area
5144874.5 1 Rev. March 2025
SAN FRANCISCO PUBLIC UTILITIES COMMISSION
REVOCABLE LICENSE
(License #P4714)
THIS REVOCABLE LICENSE (this “License”) dated for reference purposes only as of ___________, 2026, is made by and between the CITY AND COUNTY OF SAN FRANCISCO, a municipal corporation (“City”), acting by and through its Public Utilities Commission (the “SFPUC”), and the CITY OF DALY CITY, a municipal corporation (“Licensee”). City and Licensee sometimes are referred to collectively in this License as the “Parties” or singularly as a “Party.”
RECITALS
A. San Francisco, through the SFPUC, owns real property located in the City and County of San Francisco, described as SFPUC Parcel No. 55 and designated as a portion of Assessor’s Parcel No. 7283-004, running north along the east and west sides of John Muir Drive (“Property”). The Property is more particularly described in the attached Exhibit A-1 and shown generally on the map attached as Exhibit A-2.
B. Daly City seeks to implement its Vista Grande Drainage Basin Improvement Project (“Project”) to upgrade the Vista Grande storm drain system, which is a regional stormwater system that drains the northwestern portion of Daly City and an unincorporated portion of San Mateo County. The Project seeks to alleviate storm-related flooding in Daly City and San Francisco, reduce uncontrolled overflows from Daly City’s Vista Grande Canal (“Canal”) into Lake Merced, and also facilitate the augmentation and management of Lake Merced water levels, which have steadily declined, by using sustainable supplies of Daly City’s stormwater.
C. The Project would route storm and non-storm water from the Canal through a diversion structure to be developed on the Property, and then would either discharge stormwater to Lake Merced or route it through the Vista Grande Tunnel (“Tunnel”) to be discharged into the Pacific Ocean. Portions of the water would be routed through a treatment wetland to be developed on the property before being discharged into Lake Merced.
D. To facilitate the Project, Daly City intends to acquire certain easements and licenses for the construction, operation, and maintenance of Project improvements on portions of the Property (collectively, the “Easements”).
E. The Project will require the temporary use of portions of the Property for construction related activities, including: (i) daily contractor parking; (ii) the storage of equipment, materials, and supplies; (iii) the relocation of existing above-ground and subsurface utilities (i.e., AT&T communications cables, PG&E gas transmission pipelines, and a 33-inch treated effluent gravity pipeline); and (iv) temporary workspace adjacent to the Easements to facilitate the construction and installation work.
F. Daly City, as Lead Agency under the California Environmental Quality Act (“CEQA”), and the United States Department of the Interior, acting by and through its National Park Service (the “Park Service”), as Lead Agency under the National Environmental Policy Act (NEPA), have prepared a joint Final Environmental Impact Report and Environmental Impact
5144874.5 2 Rev. March 2025
Statement (“FEIR/FEIS”), pursuant to the provisions of CEQA, which was released for agency review on September 8, 2017 (State Clearinghouse Number 2013032001). Daly City certified the FEIR/FEIS and approved the Vista Grande South Lake Merced Alternative described in the FEIR/FEIS via City Council Res. No. 17-200, dated December 11, 2017, adopting the mitigation measures included in the FEIR/FEIS and set forth in the Environmental Commitments Record, and assumed responsibility for their implementation. On June 9, 2025, the City of Daly City adopted an Addendum to the previously certified Final EIR/EIS for the Project to address minor revisions and additions to the Project that occurred after Project approval.
G. San Francisco is a responsible agency under CEQA for review and approval of aspects of the Project. San Francisco has reviewed and considered the FEIR/FEIS and the Project approval documents and has approved this Agreement and adopted findings required under CEQA.
NOW, THEREFORE, for and in consideration of the foregoing Recitals, which are incorporated into this License by this reference, the mutual covenants and obligation of the Parties contained in this License, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
BASIC LICENSE INFORMATION
The following is a summary of basic license information (the “Basic License Information”). Each item below will be deemed to incorporate all the terms set forth in this License pertaining to the item. In the event of any conflict between the information in this Section and any more specific provision of this License, the more specific provision will control.
City: CITY AND COUNTY OF SAN FRANCISCO, acting by and
through its Public Utilities Commission
Licensee: CITY OF DALY CITY
License Area (Section 1): Approximately 62,933 square feet of SFPUC Parcel No. 55 (“Lake Merced Tract”), designated as Assessor’s Parcel
No. 7283-004, located in San Francisco, California, as more particularly shown in the attached Exhibit B, together with any appurtenances. The License Area is comprised of eleven (11) temporary use parcels (each a “Temporary Use Parcel” and together, “Temporary Use Parcels”), as shown generally in the attached Exhibit B. The approximate square footage of each Temporary Use Parcel is stated in the attached Exhibit D.
Term (Section 2): Forty-eight (48) months commencing on the Commencement Date and expiring on the Expiration Date (“Term”).
Commencement Date: _______________
License Term Expiration Date: _______________
5144874.5 3 Rev. March 2025
Permitted Acts
(Section 4(a)):
(i) daily contractor parking; (ii) the storage of equipment, materials, and supplies; (iii) the relocation of existing above-ground and subsurface utilities (i.e., AT&T
communications cables, PG&E gas transmission pipelines, and a 33-inch treated effluent gravity pipeline); and (iv) temporary workspace, including without limitation office trailers, adjacent to the Easements to facilitate Licensee’s construction and installation work.
Application Fee
(Section 7(a)):
$2,500
Use Fee (Section 7(b)): $8,756
Security for Performance
(Section 3):
N/A
Remit All Payments To: City and County of San Francisco c/o Customer Service Bureau
Attn: Real Estate Billing
525 Golden Gate Avenue, 3rd Floor
San Francisco, CA 94102
Reference: License P4714
Licensee’s Share of
Property Taxes:
See Section 30 [Taxes, Assessments, Licenses, License Fees, and Liens].
Notices: See Section 31 [Notices].
Key Contact for City: SFPUC Real Estate Director
Telephone No. and Email: (415) 487-5210
[email protected]
Key Contact for Licensee: Joshua Cosgrove, Director of Water & Wastewater Resources Telephone No. and Email: (650) 991-8206
Email: [email protected]
Alternate Contact for
Licensee:
Anthony Tofiga, Senior Management Analyst, Department of Water & Wastewater Resources
Telephone No. and Email: (650) 991-8202
Email: [email protected]
Licensee’s Billing Address: Department of Water & Wastewater Resources City of Daly City
153 Lake Merced Blvd
Daly City, CA 94015
Attn: Joshua Cosgrove
5144874.5 4 Rev. March 2025
Re: Vista Grande Staging Area License
License P4714
City and Licensee agree as follows:
1. License. City confers to Licensee a revocable, personal, non-exclusive, and non-possessory privilege to enter upon and use portions of the Property owned by City situated in the County of San Francisco, State of California, shown generally on the drawings attached as Exhibit B (the “License Area”), for the limited purpose and subject to the terms, conditions, and restrictions set forth below. This License gives Licensee a license only and notwithstanding anything to the contrary in this License, it does not constitute a grant by City of any ownership, leasehold, easement, or other property interest or estate whatsoever in any portion of the License Area. Nothing in this License will be construed as granting or creating any franchise rights pursuant to any federal, state, or local laws.
THE PRIVILEGE GIVEN TO LICENSEE UNDER THIS LICENSE IS EFFECTIVE
ONLY INSOFAR AS THE RIGHTS OF CITY IN THE LICENSE AREA ARE CONCERNED,
AND LICENSEE WILL OBTAIN ANY FURTHER PERMISSION NECESSARY BECAUSE OF ANY OTHER EXISTING RIGHTS AFFECTING THE LICENSE AREA. WITHOUT LIMITING
THE FOREGOING, THIS LICENSE IS BEING ISSUED SUBJECT AND SUBORDINATE TO
ALL OF THE TERMS AND CONDITIONS OF THAT CERTAIN DEED DATED AND RECORDED MARCH 3, 1930 IN BOOK 2002, AT PAGE 1, OF OFFICIAL RECORDS OF SAN
FRANCISCO COUNTY, PURSUANT TO WHICH CITY ACQUIRED ITS INTEREST IN THE
LICENSE AREA, A COPY OF WHICH IS ATTACHED TO THIS LICENSE AS EXHIBIT C (THE “DEED”), AND ALL OTHER EXISTING AND FUTURE DOCUMENTS AND
INSTRUMENTS OF RECORD AFFECTING THE LICENSE AREA (COLLECTIVELY, WITH THE DEED, THE “RECORDED DOCUMENTS”). LICENSEE MUST SECURE ALL
ADDITIONAL NECESSARY APPROVALS, PERMITS, LICENSES, AND CONSENTS, AND
DELIVER ALL NECESSARY NOTICES, BEFORE COMMENCING WORK IN THE LICENSE
AREA, INCLUDING ANY APPROVALS, PERMITS, LICENSES, CONSENTS, OR NOTICES REQUIRED FROM OR TO THE GRANTOR UNDER THE RECORDED DOCUMENTS. FOR CITY’S BENEFIT, LICENSEE COVENANTS AND AGREES THAT LICENSEE WILL FULLY
COMPLY WITH THE TERMS AND CONDITIONS OF THE RECORDED DOCUMENTS AND
ANY OTHER RULES AND REGULATIONS PROMULGATED BY CITY AS THEY APPLY
TO ANY WORK TO BE PERFORMED OR FACILITIES TO BE INSTALLED BY LICENSEE
ON THE LICENSE AREA PURSUANT TO THIS LICENSE, AND CITY WILL HAVE NO RESPONSIBILITY OR LIABILITY OF ANY KIND WITH RESPECT THERETO. LICENSEE
ACKNOWLEDGES AND AGREES THAT NEITHER CITY NOR ANY OF ITS
DEPARTMENTS, COMMISSIONS, OFFICERS, DIRECTORS, AND EMPLOYEES, AND ALL
PERSONS ACTING BY, THROUGH, OR UNDER EACH OF THEM HAVE MADE, AND CITY
DISCLAIMS, ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,
CONCERNING THE PRESENT OR FUTURE SUITABILITY OF THE LICENSE AREA FOR LICENSEE’S INTENDED WORK OR FACILITIES, THE IMPACT OF ANY TERM OR CONDITION OF THE RECORDED DOCUMENTS ON LICENSEE’S RIGHTS UNDER THIS
LICENSE, OR THE ABILITY TO OBTAIN OR DELIVER, OR THE PROCEDURE FOR
OBTAINING OR DELIVERING, ANY NECESSARY APPROVALS, LICENSES, PERMITS,
CONSENTS OR NOTICES FROM OR TO THE GRANTOR UNDER THE RECORDED
DOCUMENTS OR ANY OTHER PARTY WITH RESPECT TO ANY MATTERS CONTAINED IN THIS LICENSE.
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2. Term of License; Revocability.
(a) Term. The privilege conferred to Licensee pursuant to this License will commence on the Commencement Date, as shown in the Basic License Information. The Commencement Date is the date that is the later to occur of (i) the date this License is fully executed and delivered by City following SFPUC authorization and approval and the receipt of all fees, insurance certificates, and security required to be provided by this License; or (ii) the date specified by Licensee in a written notice to the SFPUC of Licensee’s intended commencement of mobilization activities upon the License Area, which in no event shall be later than June 1, 2026. The Commencement Date shall be no less than fifteen (15) days after the SFPUC’s receipt of such notice. Following the Commencement Date, the Term of this License will immediately expire upon the earlier of: (i) forty-eight (48) months after the Commencement Date, or (ii) upon 30 days prior written notice from City revoking this License.
(b) Termination. This License may be terminated at any time without cause or liability, and without any obligation to pay any consideration to Licensee or return to Licensee any part of the license fee or, if applicable, the use fee. (c) Revocability. At its sole option, City may freely revoke this License at any time without cause or liability, and without any obligation to pay any consideration to Licensee or return to Licensee any part of the license fee or, if applicable, the use fee. Upon any revocation, Licensee will promptly surrender the License Area in the condition required by this License. The installation of facilities or the existence of other improvements to, or alterations of, the License Area, regardless of cost, will not in any way whatsoever limit City’s right to revoke this License.
3. Intentionally Omitted.
4. Use of License Area.
(a) Permitted Acts. Licensee may enter and use the License Area for the sole purpose of the Permitted Acts (as defined above), in strict accordance with Section 5(a) [Approval of Plans and Specifications] below, and for no other purpose whatsoever. (b) Subject to City Uses. Licensee is aware that the License Area constitutes a portion of City’s regional water system. Notwithstanding anything to the contrary in this License, all of Licensee’s activities pursuant to this License will be subject and subordinate at all times to City’s existing and future use of the License Area for municipal and other purposes. City will in no way be liable for any damage or destruction to Licensee’s property and/or improvements resulting from the condition of the License Area or use of the License Area by SFPUC for any utility purpose.
At City’s request, Licensee will immediately remove any of Licensee’s property or improvements from the License Area to allow City access to the SFPUC facilities. If City deems it necessary, at City’s sole discretion, City may remove any property or improvements, and City will not be responsible for restoring or returning the same to its prior condition.
5. Improvements to License Area, Conditions to Permitted Acts. Licensee may perform the permitted acts described in Section 4(a) [Permitted Acts] above on the License Area.
Licensee’s use of the License Area and its implementation or installation of any facilities, are subject to its satisfaction of all of the following conditions (to the extent applicable), which are for City’s sole benefit:
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(a) Approval of Plans and Specifications. Licensee will not install or implement any improvements or installation of any facilities within the License Area without City’s prior written consent. Licensee will only install or implement improvements or facilities in accordance with plans and specifications (including drawings) approved in advance and in writing by the SFPUC (the “Approved Plans”). The Approved Plans may be revised or amended only with the SFPUC’s prior written approval after the SFPUC’s Environmental Management Group has determined that no further environmental review is required by the California Environmental Quality Act (“CEQA”) as a result of any such revision or amendment. (b) Energy Service and Related Facilities. If Licensee seeks electrical service for use in the License Area, including for any improvements or facilities, Licensee will contact the Interconnection Services Department in the Power Enterprise of the SFPUC to arrange for service.
Licensee will purchase all electricity necessary for its operations at the License Area from the SFPUC, at the SFPUC’s standard rates charged to third parties, unless the SFPUC determines, in its sole judgment, that it is not feasible to provide service to the License Area. The SFPUC is the provider of electric services to City property, and the SFPUC’s Interconnection Services Department coordinates with Pacific Gas and Electric Company and others to implement this Section. Except as provided above with respect to any electricity services provided by the SFPUC, Licensee will arrange and pay for all utilities and services furnished to the License Area for use by Licensee or its contractors or agents, including gas, electricity, water, sewage, telephone, and trash collection services, and for all deposits, connection, and installation charges.
Except as otherwise provided in this License, the SFPUC has no responsibility or liability of any kind with respect to any utilities that may be on or about the License Area. Licensee has the sole responsibility to locate any utility facilities within the License Area and protect them from damage resulting from Licensee’s use of the License Area. (c) Permits, Licenses, and Approvals. Before beginning any permitted improvement or alteration work in the License Area, Licensee will obtain all permits, licenses, and approvals (collectively, “Approvals”) of all regulatory agencies and other third parties that are required to commence, complete, and maintain the permitted work. Promptly upon receipt of any Approvals, Licensee will deliver copies of them to the SFPUC. No approval by the SFPUC for purposes of Licensee’s work under this License will be deemed to constitute the approval of any federal, state, or other local regulatory authority with jurisdiction, and nothing in this License will limit Licensee’s obligation to obtain all regulatory Approvals, at Licensee’s sole cost. (d) Limits of City’s or SFPUC’s Consent. City’s or the SFPUC’s consent to or approval of any improvements, equipment, or fixtures within the License Area will not relieve Licensee or its engineers, architects, or contractors from any liability for negligence, errors, or omissions associated with the design and construction of any improvements, equipment, or fixtures. In no event will the SFPUC’s approval of plans or specifications be deemed to constitute a representation or warranty by City concerning the suitability of the improvements, equipment, or fixtures for Licensee’s purposes or that the work called for in the plans and specifications complies with applicable building codes or other applicable Laws (defined in Section 9 [Compliance with Laws] below), or industry standards, nor will the SFPUC’s approval release Licensee from its obligation to supply plans and specifications that conform to applicable building codes, other applicable Laws, and industry standards.
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(e) Exercise of Due Care. Licensee will use and will cause its Agents (defined in Section 19 [Indemnity] below) to use, due care at all times to avoid any damage or harm to City’s water system, facilities, or other property and to native vegetation and natural attributes of the License Area and to minimize slope erosion. Licensee will not disturb the surface of the License Area or perform any excavation work without City’s prior written approval, which City may withhold at its sole discretion. City may condition and/or oversee any permitted excavation work.
At its own expense, Licensee will mark the location of City’s water pipelines or other facilities within the License Area and will not use any pick, plow, or other sharp tool to remove the two feet of soil around the pipelines or other facilities, provided that Licensee may use hand shovels or pneumatic shovels in compliance with all other terms and conditions of this License. Licensee will immediately inform City of any actual or potential damage to the coating of the pipeline, and any damage will be promptly repaired by Licensee, at its own expense, to City’s satisfaction prior to backfilling; provided, at its sole discretion, City may elect upon notification to Licensee to make any necessary repairs itself, at Licensee’s sole cost. Upon completion of the repairs, City will send to Licensee an invoice therefor, which Licensee will pay within thirty (30) days following receipt.
Under no circumstances will Licensee damage, harm, or take any rare, threatened, or endangered species present on or about the License Area.
(f) Cooperation with Public Utilities Commission. Licensee and its Agents will work closely with City personnel to minimize any potential disturbance (even if temporary) of the natural features of the License Area and to avoid disruption (even if temporary) of City facilities, in, under, on, or about the License Area and City uses of its facilities. (g) Heavy Equipment. Licensee will not use any heavy construction equipment over or about City’s pipelines, except as otherwise expressly allowed in Section 6(i) [Heavy Equipment and Vehicles] below.
(h) Work Schedule and Notification for Future Work. Licensee must diligently perform and complete the Permitted Acts in accordance with the Work Schedule provided in the attached Exhibit D. At least ten (10) business days prior to the commencement of any work on a Temporary Use Parcel that deviates from the Work Schedule or any amended Work Schedule later provided to SFPUC, Licensee will notify City’s Peninsula and San Francisco Watershed Resource Manager (“Watershed Manager”), at (650) 652-3201, of the date the work will commence and the intended work schedule. Notification must also be given to Underground Service Alert at least two (2) days prior to the start of the work. Notwithstanding the approval of Licensee’s schedule by the SFPUC, the Watershed Manager will have the right to require Licensee to adjust its schedule from time to time, provided that the Watershed Manager will not unreasonably interfere with Licensee’s Permitted Acts, and the Term will be extended by one (1) business day for every business day of delay caused by requirements of the Watershed Manager. All work must be performed during regular working hours (Monday through Friday) between 7:00 a.m. and 7:00 p.m., exclusive of City holidays. Any work performed during any other time or day must be preapproved by the SFPUC at least ten (10) business days prior to commencing the work. In connection with its approval, City may charge Licensee additional inspection fees payable prior to the SFPUC’s approval of the request. Notwithstanding the work hours set forth above, Licensee will comply with any applicable local ordinance that imposes later start times and/or earlier cessation times for construction activities and will be solely responsible for addressing and resolving any and all complaints from the public or neighboring properties related to the work performed under this Agreement.
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(i) Restoration of License Area. Promptly following completion of any work permitted under this License, Licensee will remove all debris and any excess dirt, to City’s reasonable satisfaction. Licensee will restore any damage caused to existing roads and may be required to restore excavated areas with new vegetation (including irrigation and maintenance until established) and erosion control netting, all as requested by City, and will comply with all applicable regulations of the regulatory agency with jurisdiction. (j) Pipeline Depth/Installation of Above-Ground Markers. Before commencing any excavation work in the License Area, Licensee will measure the depth of City’s pipelines, if any, located in the License Area by potholing and forward the information to City. Any potholing authorized by this License will be subject to the requirements of Section 5(m) [Potholing] below.
Upon completion of work, Licensee will promptly notify City in writing of the depth of City’s pipeline and related facilities in the License Area. Licensee will install above-ground markers identifying the location of any underground facilities installed pursuant to this License. The location, type, and installation of markers and identifying information on the markers will be subject to the SFPUC’s prior written approval.
(k) As-Built Drawings/Reports. Promptly upon completion of any improvements or facilities, Licensee will furnish the SFPUC with two (2) complete copies of final as-built drawings for the improvements or facilities, which drawings will include sufficient detail so as to allow City to precisely locate the improvements or facilities. If Licensee or any of its Agents or consultants prepares any environmental, seismic, geophysical, or other written report relating to the License Area and/or any work performed on the License Area, Licensee will furnish to City a complete copy of the report, including any schedules, exhibits, and maps, promptly upon completion of the same.
(l) Contractors. Licensee will not accept and release its contractor for work authorized or required by this License before securing the SFPUC’s written approval. (m) Potholing. Any potholing authorized by this License will be subject to the direction of City’s Watershed Manager. Potholing using the soft dig method (vacuum soil extraction system) is preferred. If Licensee wishes to use any other mechanical method such as digging with a backhoe, License must submit a written request to the SFPUC at least five (5) business days prior to commencing the work and obtain the SFPUC’s prior written consent.
Notwithstanding the foregoing, the last two feet (2’) above the top of the pipe must be dug manually, without the use of any machines.
6. Restrictions on Use. The following uses (by way of example only) of the License Area by Licensee, or any other person claiming by or through Licensee, are inconsistent with the limited purpose of this License and are strictly prohibited as provided below:
(a) Improvements. Except as otherwise expressly provided in this License, Licensee will not construct or place any temporary or permanent structures or improvements in, on, under, or about the License Area, nor will Licensee make any alterations or additions to any existing structures or improvements on the License Area, unless Licensee first obtains the SFPUC’s prior written consent, which the SFPUC may give or withhold at its sole and absolute discretion. For purposes of this License, the term “improvements” includes asphalt, concrete, and cementitious driveways, sidewalks, and parking areas, shacks, storage facilities, and fences.
5144874.5 9 Rev. March 2025
(b) Trees and Other Plantings. Licensee will not plant any trees or other vegetation in or on the License Area, except as otherwise expressly provided in this License and except in accordance with detailed plans consistent with the SFPUC’s Vegetation Management Policy, if applicable, which may be amended from time to time and as approved by the SFPUC in writing in advance.
(c) Dumping. Licensee will not cause or permit the dumping or other disposal in, on, under, or about the License Area of landfill, refuse, Hazardous Material (defined in subsection (d) [Hazardous Material] below), or any other materials, including materials that are unsightly or could pose a hazard to the human health or safety, native vegetation or wildlife, or the environment. (d) Hazardous Material. Licensee will not cause, nor will Licensee allow any of its Agents or Invitees (defined in Section 19 [Indemnity] below) to cause, any Hazardous Material to be brought upon, kept, used, stored, generated, released, or disposed of in, on, under, or about the License Area, or transported to, from, or over the License Area. Licensee will immediately notify City when Licensee learns of or has reason to believe that a release of Hazardous Material has occurred in, on, under, or about any part of the License Area. Licensee will further comply with all applicable Laws requiring notice of releases or threatened releases to governmental agencies and will take all action necessary or desirable to mitigate the release or minimize the spread of contamination. If Licensee or its Agents or Invitees cause a release of Hazardous Material, Licensee will promptly return the License Area to the condition immediately prior to the release, without cost to City, in accordance with all Laws, and using the highest and best technology available. In connection with any remedial action, Licensee will afford City a full opportunity to participate in any discussion or negotiations with governmental agencies and environmental consultants regarding any settlement agreement, cleanup or abatement agreement, consent decree, or other compromise proceeding involving Hazardous Material, and any other abatement or cleanup plan, strategy, and procedure. For purposes of this License, “Hazardous Material” means material that, because of its quantity, concentration, or physical or chemical characteristics, is at any time now or hereafter deemed by any applicable federal, state, or local governmental authority to pose a present or potential hazard to public health, welfare, or the environment.
Hazardous Material includes the following: any material or substance defined as a “hazardous substance, pollutant or contaminant” pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq., or pursuant to Section 78075 of the California Health & Safety Code or any other applicable federal, state, or local Law; a “hazardous waste” listed pursuant to Section 25140 of the California Health & Safety Code; any asbestos and asbestos-containing materials whether or not those materials are part of the License Area or are naturally occurring substances in the License Area; and any petroleum, including crude oil or any crude-oil fraction, natural gas, or natural gas liquids, provided, the foregoing will not prohibit Licensee from traversing to, from, and across the License Area in standard motor vehicles that do not exceed the weight limitations set forth below. The term “release” or “threatened release” when used with respect to Hazardous Material will include any actual or imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing in, on, under, or about the License Area. (e) Nuisances. Licensee will not conduct any activities in, on, under, or about the License Area that constitute waste, nuisance, or unreasonable annoyance (including emission of objectionable odors, noises, or lights) to City, to the owners or occupants of neighboring property, or to the public, or that constitute waste or nuisance per se.
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(f) Damage. Licensee will not do anything in, on, under, or about the License Area that could cause damage to or interference with any pipelines, facilities, or other property located in, on, under, or about the License Area. Licensee will compensate City for all damage caused to the License Area and City facilities resulting from the activities of Licensee and its Agents and Invitees, including damage resulting from defective work. (g) Use of Adjoining Land. Licensee acknowledges that the privilege given under this License will be limited strictly to the License Area. Licensee will not traverse over or otherwise use any adjoining lands of City.
(h) Ponding; Water Courses. Licensee will not cause any ponding on the License Area or any flooding on adjacent land. Licensee will not engage in any activity that causes any change, disturbance, fill, alteration, or impairment to the bed, bank, or channel of any natural water course, wetland, or other body of water on, in, under, or about the License Area, nor will Licensee engage in any activity that could pollute or degrade any surface or subsurface waters or result in the diminution or drainage of such waters.
(i) Heavy Equipment and Vehicles. To prevent damage to City’s underground pipelines, Licensee’s use of heavy vehicles and equipment within twenty feet (20′) of each side of the centerline of any City pipeline (measured on the surface) will be subject to the following restrictions:
(i) The depth of soil cover over the tops of City’s pipelines must be at least three feet (3′) for steel cylinder pipe and four feet (4′) for reinforced pre-stressed concrete cylinder pipe to accommodate the loading defined in subsection (ii) below. If any equipment with axle loading exceeds the loads stated in subsection (ii) below or if the depth of soil cover is less than stated above, Licensee will submit to the SFPUC for review and approval, at the SFPUC’s sole discretion, engineering calculations prepared by a licensed Professional Engineer licensed in California showing that City’s pipelines will not be adversely affected by Licensee’s proposed activities. If City’s pipelines may be adversely affected, Licensee will submit remedial measures for City’s approval to ensure that no adverse effect will occur. (ii) The effects of vehicle and equipment loads on the pipeline must not exceed the effects of the “AASHTO Standard H-10 Loading.” H-10 loading is defined as loading caused by a two-axle truck with a gross weight of ten tons (20,000 lbs.), axles fourteen feet (14′) apart, and rear axle carrying eight tons (16,000 lbs.). Licensee will be responsible for providing the SFPUC adequate evidence that its equipment and vehicles meet the foregoing requirements. (iii) Licensee will not use vibrating compaction equipment without the SFPUC’s prior written approval, which approval may be given or withheld at the SFPUC’s sole discretion. (iv) If the depth of the soil cover over the pipeline (determined by potholing or other proof procedure) is less than the minimum stated in subsection (i) above, unless an alternate method is approved by the SFPUC in writing, all excavation and grading over the pipeline must be performed manually. For any machinery or equipment excavation and grading over and/or within twenty feet (20′) of each side of the centerline of the pipeline (measured on the surface), Licensee will submit a written proposal together with all supporting calculations and data to the SFPUC for review and approval. In any case, the two feet (2′) of soil around the pipeline must be
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removed manually or by other methods approved by the SFPUC with due care as provided in Section 5(e) [Exercise of Due Care] above.
(j) Intentionally Omitted.
(k) Cathodic and Other Protection. City may adopt from time-to-time rules and regulations with regard to any facilities, Licensee’s prior improvements or alterations, and Licensee’s operations under this License as City may determine are necessary or appropriate, at City’s sole discretion, to safeguard against corrosion of, or other damage to, City’s pipelines and other facilities. Licensee will immediately comply with all rules and regulations upon receipt of a copy of any rules and regulations.
7. License Fee(s).
(a) Processing Fee. Licensee will pay to City a one-time non-refundable license fee in the amount of Two Thousand Five Dollars ($2,500) to cover City’s processing, inspection, and other administrative costs. Such fee is payable when Licensee signs and delivers this License to City. Payment will be made by good check payable to the City and County of San Francisco and delivered to City in care of the SFPUC Real Estate Director at the address for notices to City specified in Section 31(a) [Notices] below, or such other place as City may designate in writing. (b) Use Fee. In addition, Licensee will pay to City a use fee in consideration of Licensee’s use of the License Area. The use fee payable for the entire Term will be in the amount of Eight Thousand Seven Hundred and Fifty-Six Dollars ($8,756) (“Use Fee”). The Use Fee will be paid to City, without prior demand and without any deduction, setoff, or counterclaim whatsoever. If this License is superseded by a new license as contemplated in Section 2(a)(ii), any Use Fee paid by Licensee under this License will be credited against the use fee due and payable under any new license. All sums payable by Licensee to City pursuant to this License will be paid in cash or by good check to the City and County of San Francisco and delivered to City in care of the Customer Service Bureau, Attn: Real Estate Billing, 525 Golden Gate Avenue, 3 rd Floor, San Francisco, California, 94102, or such other place as City may designate in writing. City’s acceptance of a third-party check or other payment will not be deemed as City’s acceptance or acknowledgement of any assignment of this License and will not be deemed to establish a relationship between City and that third party. Any sum tendered by a third party will be deemed a use fee tendered on behalf of Licensee and not on behalf of the third party regardless of whether it contains a restrictive endorsement. (c) Intentionally Omitted.
(d) Intentionally Omitted.
8. Required Insurance Coverages. Licensee’s compliance with the provisions of this Section 8 will in no way relieve or decrease Licensee’s indemnification or other obligations under this License. Licensee must maintain in force, during the full Term of this License, insurance in the amounts and coverages listed below. In addition, Licensee will cause each Agent (defined in Section 19 [Indemnity] below) performing work on the License Area to procure and keep in effect during the course of any work appropriate amounts of insurance and add City as additional insured for those respective policies.
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(a) Commercial General Liability Insurance with limits not less than $3,000,000 each occurrence for Bodily Injury and Property Damage, including Contractual Liability, Personal Injury, Independent Contractors, Explosion, Collapse, and Underground (XCU), Broad Form Property Damage and Products, and Completed Operations. (b) Commercial Automobile Liability Insurance with limits not less than $2,000,000 each occurrence, “Combined Single Limit” for Bodily Injury and Property Damage, including Owned, Non-Owned, and Hired auto coverage, as applicable. (c) Workers’ Compensation, in statutory amounts, with Employers’ Liability Limits not less than $1,000,000 each accident, injury, or illness. (d) Pollution Liability Insurance applicable to Licensee’s activities and responsibilities under this License with limits not less than $1,000,000 each occurrence combined single limit, including coverage for on-site third-party claims for bodily injury and property damage. (e) Additional Insured Endorsements.
(i) The Commercial General Liability and Pollution Liability policies must be endorsed to name as Additional Insured the City and County of San Francisco, its Officers, Agents, and Employees.
(ii) The Commercial Automobile Liability Insurance policy must be endorsed to name as Additional Insured the City and County of San Francisco, its Officers, Agents, and Employees.
(f) Waiver of Subrogation Endorsements. The Workers’ Compensation policy(ies) and all Liability Policies referenced above will be endorsed with a waiver of subrogation in favor of City for all work performed by Licensee or its Agents. (g) Primary Insurance Endorsements.
(i) The Commercial General Liability policy will provide that the policy is primary insurance to any other insurance available to the Additional Insureds, with respect to any claims arising out of this License, and that the insurance applies separately to each insured against whom claim is made or suit is brought.
(ii) The Commercial Automobile Liability Insurance policy will provide that the policy is primary insurance to any other insurance available to the Additional Insureds, with respect to any claims arising out of this License, and that the insurance applies separately to each insured against whom claim is made or suit is brought.
(iii) The Pollution Liability Insurance policy will provide that the policy is primary insurance to any other insurance available to the Additional Insureds, with respect to any claims arising out of this License, and that the insurance applies separately to each insured against whom claim is made or suit is brought.
(iv) The policies will also provide for severability of interests and that an act or omission of one of the named insureds that would void or otherwise reduce coverage will not reduce or void the coverage as to any other insured and will afford coverage for all claims based
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on acts, omissions, injury, or damage that occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period.
(h) Other Insurance Requirements.
(i) Thirty (30) days’ advance written notice will be provided to City of cancellation, intended non-renewal, or reduction in coverages, except for non-payment for which no less than ten (10) days’ notice will be provided to City. Notices will be sent to the City address set forth in Section 31(a) [Notices].
(ii) If any of the required insurance is provided under a claims-made form, Licensee will maintain coverage continuously throughout the Term of this License and, without lapse, for a period of three years beyond the expiration of this License, to the effect that, should occurrences during the License Term give rise to claims made after expiration of the License, those claims will be covered by the claims-made policies.
(iii) If any of the required insurance is provided under a form of coverage that includes a general annual aggregate limit or provides that claims investigation or legal defense costs be included in the general annual aggregate limit, the general annual aggregate limit must be double the occurrence or claims limits specified above. (iv) If any required insurance lapses during the Term of this License, requests for payments originating after the lapse will not be processed until City receives satisfactory evidence of reinstated coverage as required by this License, effective as of the lapse date. If insurance is not reinstated, City may, at its sole option, terminate this License effective on the date the insurance lapses.
(v) Prior to the Commencement Date, Licensee will furnish to City certificates of insurance and additional insured policy endorsements with insurers with ratings comparable to A-, VIII or higher, that are authorized to do business in the State of California, and that are satisfactory to City, in form evidencing all coverages set forth above. Licensee and its contractors will submit or cause their respective insurance brokers to submit requested information through the TenantShield insurance verification program designated by City or any successor program used by City for verification of Licensee and contractor insurance coverage. Approval of the insurance by City will not relieve or decrease Licensee’s liability hereunder. If Licensee fails to procure the required insurance, or to deliver policies or certificates, at its option, City may procure the same for the account of Licensee, and Licensee will reimburse City for any costs paid by City within five (5) business days after delivery to Licensee of an invoice therefor. (vi) If Licensee will use any subcontractor(s) to perform the Permitted Acts, Licensee will require the subcontractor(s) to provide all necessary insurance and to name the City and County of San Francisco, its officers, agents and employees, and the Licensee as additional insureds.
(vii) Upon City’s request, Licensee and City will periodically review the limits and types of insurance carried pursuant to this Section. If the general commercial practice in the City and County of San Francisco is to carry liability insurance in an amount or coverage materially greater than the amount or coverage then being carried by Licensee for risks comparable to those associated with the License Area, then, at its sole discretion, City may require Licensee to increase
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the amounts or coverage carried by Licensee hereunder to conform to the general commercial practice.
(i) Self-Insurance.
Licensee will have the right to self-insure with respect to any of the insurance requirements required under this License, to the extent permitted by applicable law. If Licensee elects to self-insure with respect to any of the insurance requirements required under this License, before the Commencement Date and upon written request by the SFPUC, within thirty (30) days of the commencement of each year thereafter, Licensee will submit to the SFPUC a certificate of self-insurance signed by a duly authorized representative of Licensee, such certificate evidencing that Licensee’s self-insurance program is adequately funded, in full force and effect and in compliance with and subject to all the terms, agreements, covenants, conditions and provisions of this License. If Licensee elects to self-insure, Licensee will give City prompt written notice of any significant change in or the depletion of its self-insurance fund. Notwithstanding the foregoing, Licensee is also responsible for causing any contractors, subcontractors, and/or Agents to maintain commercially reasonable insurance coverages and coverage limits as required under this License.
Any deductibles or self-insured retentions must be declared. All deductibles and self-insured retentions will be paid by Licensee.
With respect to any claim, loss, or liability that would have been covered by the insurance policies (including the status as an “additional insured” thereunder of City, the SFPUC, and their respective Agents and Employees) required by this License to be maintained by Licensee but within the self-insured retention or deductible amount, Licensee will cover such claim, loss, or liability on the same basis as the insurance arrangements or deductibles on such insurance policies, including such insurance carrier responsibility to protect City, the SFPUC, and their respective Agents and Employees as an “additional insured.”
9. Compliance with Laws. At its expense, Licensee will conduct and cause to be conducted all activities on the License Area permitted by this License in a safe and reasonable manner and in compliance with all laws, statutes, ordinances, rules, regulations, policies, orders, edicts, and the like (collectively, “Laws”) of any governmental or other regulatory entity with jurisdiction (including the Americans with Disabilities Act) and all applicable covenants, restrictions, and provisions of record, whether presently in effect or subsequently adopted and whether or not in the contemplation of the Parties. At its sole expense, Licensee will procure and maintain in force at all times during its use of the License Area all business and other licenses or approvals necessary to conduct the activities allowed by this License. City is entering into this License in its capacity as a property owner with a proprietary interest in the License Area and not as a regulatory agency with police powers. No approval by City for purposes of this License will be deemed to constitute approval of any federal, state, City, or other local regulatory authority with jurisdiction, and nothing in this License will limit Licensee’s obligation to obtain all regulatory approvals at Licensee’s sole cost, or limit in any way City’s exercise of its police powers.
Licensee will keep itself fully informed of City’s Charter, codes, ordinances and regulations and all state and federal laws, rules and regulations affecting the performance of Licensee’s operations pursuant to this License and will at all times comply with those laws and regulations. Licensee agrees to maintain its good standing as a corporation, nonprofit, limited liability company, partnership, joint venture, or similar legal entity at all times during the Term of
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this License. Licensee’s obligation to maintain good standing includes, without limitation, Licensee’s continued timely submission of all required information and payments when due to the California Secretary of State, Franchise Tax Board, Internal Revenue Service, California Attorney General’s Registry of Charitable Trusts, or any other applicable agency or entity. Licensee will immediately notify City of any voluntary or involuntary change to its good standing status or in its eligibility, rights and privileges as a statutory entity. Upon City’s request, Licensee will provide documentation demonstrating its compliance with all applicable Laws. If Licensee will use any contractors to perform the Permitted Acts, Licensee is responsible for ensuring they comply with all applicable Laws at the time Licensee contracts with those contractors and for the duration of that agreement. Any failure by Licensee or any of its contractors to remain in good standing with applicable Laws will be a material breach of this License.
10. Covenant to Maintain License Area and Facilities. Licensee will be solely responsible for repairing and maintaining any facilities and improvements or alterations made in or on the License Area pursuant to prior agreements in good, clean, safe, secure, sanitary, and sightly condition, and City will have no duty whatsoever for any repair or maintenance of the License Area or any facilities, or other Licensee improvements or alterations. Throughout the Term of this License, at its sole cost, Licensee will maintain the License Area at all times in a good, clean, safe, secure, sanitary, and sightly condition, so far as the License Area may be affected by Licensee’s activities under this License. Licensee will notify City in writing not less than five (5) days before performing any repair or maintenance work in the License Area, except in the case of an emergency when Licensee will notify City telephonically and in writing as soon as reasonably possible.
11. Monuments.
(a) By its execution and delivery of this License, Licensee acknowledges that the monuments shown on the attached Exhibit B, if any, are in place and in good condition. During the installation of any facilities and at all times during Licensee’s use of the License Area, Licensee will protect and safeguard City’s monuments. Licensee will promptly notify City if Licensee becomes aware of any change in the condition of City’s monuments, regardless of the cause of the change.
(b) If Licensee damages a monument necessitating resurvey, repair, or replacement, as determined by City at its sole discretion, Licensee will survey, file a land surveyor’s map in the Official Records of the County of San Francisco, and install a replacement monument within thirty (30) days of completion of work authorized under this License, all at Licensee’s expense and to City’s satisfaction. A recorded surveyor’s map will be furnished by Licensee to the SFPUC for its records.
(c) During the Term of this License, City may replace missing monuments or install new monuments. When City replaces missing monuments or installs new monuments, City will give Licensee written notice of the replacement or installation. Upon deposit of the notice in the U.S. mail by City, postage prepaid, Licensee will assume the protection and replacement responsibilities set forth in this License.
12. Removal or Alteration of Facilities or Improvements. Without limiting City’s rights under this License, at City’s written request, Licensee will promptly alter or remove, at its sole expense, all facilities, improvements, plantings, or other property owned by Licensee or installed
5144874.5 16 Rev. March 2025
or placed in, on, under, or about the License Area by Licensee, as may be necessary to avoid any actual or potential interference with the installation, construction, maintenance, operation, repair, replacement, or removal of any of City’s pipelines, power lines, facilities, or other structures now or later constructed or with any other operations or land uses by City. In the request, City may specify reasonable time limits for completion of the work. If, after the written notice, Licensee fails to complete the requested work within the prescribed time limits, City may perform the requested work and charge Licensee all costs and expenses so incurred by City. City’s costs and expenses will be due and payable upon City’s demand. In the event of an emergency, at City’s sole option, at Licensee’s sole expense, and without notice, City may, alter, remove, or protect all facilities, improvements, plantings, or other property installed or placed in, on, under, or about the License Area by Licensee. Upon City’s written or oral notice that an emergency exists, the owner of any utility facilities must take immediate action at its sole expense to protect, remove, or relocate the utility facilities as required by City to address the emergency.
13. Intentionally Omitted.
14. Signs. Except for any pipeline markers required by City or any regulatory agency with jurisdiction, Licensee will not place, erect, or maintain any sign, advertisement, banner, or similar object in, on, or about the License Area without City’s prior written consent, which City may give or withhold at its sole discretion; provided, however, that, without City’s prior written consent, if necessary for Licensee’s construction use, Licensee may place in the License Area a temporary sign of less than thirty (30) days’ duration that does not penetrate the ground surface.
15. Surrender. Upon the expiration of this License or within ten (10) days after any earlier revocation or other termination of this License, Licensee will surrender the License Area in the same condition as received, and broom clean, free from hazards, and clear of all debris. At that time, Licensee will remove all of its property from the License Area and any signs, and, upon City’s request, any facilities and any other structures, improvements, or alterations placed on the License Area during the Term of this License, and will repair, at its cost, any damage to the License Area caused by the removal. Licensee’s obligations under this Section will survive any termination of this License.
16. Repair of Damage. If any portion of the License Area or any City property located on or about the License Area is damaged or threatened by any of the activities conducted by Licensee or anyone acting by or through Licensee during the Term, at its sole cost, Licensee will immediately notify City of the damage or threat by (a) calling the SFPUC’s dispatch operator as specified in Section 31(b) [Emergency Contacts] below, and (b) providing written notice in accordance with Section 31(a) [Notices] below. City may, but will not be obligated to, remedy the damage or threat at Licensee’s sole cost, or City may elect to observe Licensee’s repair work. If City elects not to remedy the damage or threat, Licensee will repair all damage and restore the License Area or property to its previous condition subject to City’s inspection, review, and approval. City has no responsibility or liability of any kind with respect to any utilities that may be on, in, or under the License Area. Licensee is solely responsible for the location of any utilities and other existing facilities and their protection from damage. Licensee will be solely responsible to arrange and pay directly for any utilities or services necessary for its Permitted Acts; provided, Licensee will obtain City’s prior written approval for the provision of any services or utilities in, on, under, or through the License Area.
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17. City’s Right to Cure Defaults by Licensee. If Licensee fails to perform its obligations under this License to restore the License Area, remove or alter any facilities and other Licensee improvements or alterations, or repair damage, or if Licensee defaults in the performance of its other obligations under this License, then, at its sole option, City may remedy the failure for Licensee’s account and at Licensee’s expense after first providing Licensee with (i) five (5) business days’ prior written notice of City’s intention to cure the default (except that no prior notice will be required in the event of an emergency as determined by City), and (ii) the opportunity for Licensee to cure the default within the notice period or such other longer period of time agreed upon by City. City’s action will not be construed as a waiver of City’s rights or remedies under this License, and nothing in this License will imply any duty of City to do any act that Licensee is obligated to perform. Licensee will pay to City upon demand, all costs, damages, expenses, or liabilities incurred by City, including reasonable attorneys’, experts’, and consultants’ fees, in remedying or attempting to remedy the default. Licensee’s obligations under this Section will survive the termination of this License.
18. No Costs to City. Licensee will bear all costs or expenses of any kind or nature in connection with its use of the License Area and will keep the License Area free and clear of any liens or claims of lien arising out of or in any way connected with its use of the License Area.
19. Indemnity. Licensee will indemnify, defend, reimburse, and hold harmless City, its officers, agents, employees, and contractors, and each of them, from and against all demands, claims, legal or administrative proceedings, losses, costs, penalties, fines, liens, judgments, damages, and liabilities of any kind (“Claims”), arising in any manner out of (a) any injury to or death of any person or damage to or destruction of any property occurring in, on, or about any part of the License Area, whether such injury, death, damage, or destruction is caused by the person or property of Licensee, its officers, directors, members, employees, agents, consultants, contractors, or subcontractors (collectively, “Agents”), or its invitees, guests, or business visitors (collectively, “Invitees”), or third persons, relating to any use or activity under this License, (b) any failure by Licensee to faithfully observe or perform any term, covenant, or condition of this License, (c) the use of the License Area or any activities conducted on the License Area by Licensee, its Agents, or Invitees, (d) any release or discharge, or threatened release or discharge, of any Hazardous Material caused or allowed by Licensee, its Agents, or Invitees, on, in, under, or about the License Area, any improvements or into the environment, or (e) any failure by Licensee to faithfully observe or perform any terms, covenants, or conditions of the Recorded Documents to the extent that the terms, covenants, or conditions relate to or are triggered by the work to be performed or facilities or other Licensee improvements or alterations on the License Area; except solely to the extent of Claims resulting directly from the gross negligence or willful misconduct of City or City’s authorized representatives. In addition to Licensee’s obligation to indemnify City, Licensee has an immediate and independent obligation to defend City from any claim that actually or potentially falls within this indemnity provision even if the allegation is or may be groundless, fraudulent, or false, which obligation arises at the time the claim is tendered to Licensee by City and continues at all times thereafter. The foregoing indemnity will include reasonable attorneys’, experts’, and consultants’ fees and costs, investigation and remediation costs, and all other reasonable costs and expenses incurred by the indemnified parties, including damages for decrease in the value of the License Area and claims for damages or decreases in the value of adjoining property. Licensee’s obligations under this Section will survive the expiration or other termination of this License.
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20. Waiver of Claims.
(a) Neither City nor any of its commissions, departments, boards, officers, agents, or employees will be liable for any damage to the property of Licensee, its officers, agents, employees, contractors, or subcontractors, or their employees, or for any bodily injury or death to these persons, resulting or arising from the condition of the License Area or its use by Licensee, or Licensee’s Agents or Invitees.
(b) Because this License is freely revocable by City, Licensee expressly assumes the risk of making any expenditure in connection with this License, even if the expenditures are substantial. Without limiting any indemnification obligations of Licensee or other waivers contained in this License and as a material part of the consideration for this License, Licensee fully RELEASES, WAIVES, AND DISCHARGES forever all claims, demands, rights, and causes of action against, and covenants not to sue, City, its departments, commissions, officers, directors, and employees, and all persons acting by, through, or under each of them, under any present or future Laws, including any claim for inverse condemnation or the payment of just compensation under law or equity, if City exercises its right to revoke or terminate this License. (c) Licensee acknowledges that it will not be a displaced person at the time this License is terminated or revoked or expires by its own terms, and Licensee fully RELEASES, WAIVES, AND DISCHARGES forever all claims, demands, rights, and causes of action against, and covenants not to sue, City, its departments, commissions, officers, directors, and employees, and all persons acting by, through, or under each of them, under any present or future Laws related to displaced persons or relocation assistance, including all claims for relocation benefits or assistance from City under federal and state relocation assistance laws. (d) The fees payable pursuant to this License do not take into account any potential City liability for any consequential or incidental damages including lost profits and arising out of disruption to or any facilities or other Licensee improvements or alterations on the License Area; or Licensee’s uses of the License Area permitted by this License. City would not be willing to grant this License in the absence of a waiver of liability for consequential or incidental damages resulting from the acts or omissions of City or its departments, commissions, officers, directors, and employees, and by all persons acting by, through, or under each of them, and Licensee expressly assumes the risk with respect thereto. Accordingly, without limiting any indemnification obligations of Licensee or other waivers contained in this License and as a material part of the consideration for this License, Licensee fully RELEASES, WAIVES, AND DISCHARGES forever all claims, demands, rights, and causes of action against for consequential and incidental damages (including lost profits) and covenants not to sue for consequential or incidental damages City, its departments, commissions, officers, directors, and employees, and all persons acting by, through, or under each of them, arising out of this License or the uses authorized under this License, including any interference with uses conducted by Licensee pursuant to this License, regardless of the cause, and whether or not due to the negligence of City or its departments, commissions, officers, directors, and employees, and all persons acting by, through, or under each of them, except for the gross negligence and willful misconduct of City or its departments, commissions, officers, directors, and employees, and all persons acting by, through, or under each of them.
(e) As part of Licensee’s agreement to accept the License Area in its “As Is” condition as provided below, and without limiting its agreement, Licensee, on behalf of itself and its
5144874.5 19 Rev. March 2025
successors and assigns, waives its right to recover from, and forever releases and discharges, City and its officers, agents, and employees, and their respective heirs, successors, administrators, personal representatives, and assigns, from all Claims, whether direct or indirect, known or unknown, foreseen and/or unforeseen, that may arise on account of or in any way be connected with the physical or environmental condition of the License Area and any related improvements or any applicable Laws or the suitability of the License Area for Licensee’s intended use. (f) In connection with the foregoing releases, Licensee acknowledges that it is familiar with Section 1542 of the California Civil Code, which reads:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
Licensee acknowledges that the releases contained in this License include all known and unknown, disclosed and undisclosed, and anticipated and unanticipated claims. Licensee realizes and acknowledges that it has agreed upon this License in light of this realization and, being fully aware of this situation, it nevertheless intends to waive the benefit of California Civil Code Section 1542, or any statute or other similar law now or later in effect. The releases contained in this License will survive any termination of this License.
21. As Is Condition of License Area; Disability Access; Disclaimer of Representations.
Licensee accepts the License Area in its “AS IS” condition, without representation or warranty of any kind by City, its departments, commissions, officers, directors, and employees, and all persons acting by, through, or under each of them, and subject to all applicable Laws governing the use of the License Area. Without limiting the foregoing, this License is made subject to all existing and future covenants, conditions, restrictions, easements, encumbrances, and other title matters affecting the License Area, whether foreseen or unforeseen, and whether these matters are of record or would be disclosed by an accurate inspection or survey.
City discloses (a) City has not been issued a disability access inspection certificate as described in California Civil Code Section 55.53(e), (b) pursuant to California Civil Code Section 1938, that City has not ordered, performed, or caused to be performed, a Certified Access Specialist (“CASp”) inspection of the License Area (sometimes referred to as “premises” or “subject premises” for the herein disclosures), and (c) City makes the following statutory disclosure per California Civil Code Section 1938 (the required “CASp Disclosure”):
“A Certified Access Specialist (“CASp”) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction- related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties will mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.”
5144874.5 20 Rev. March 2025
22. No Assignment. This License is personal to Licensee and will not be assigned, conveyed, or otherwise transferred by Licensee under any circumstances. Any attempt to assign, convey, or otherwise transfer this License will be null and void and cause the immediate termination and revocation of this License.
23. Cessation of Use. Licensee will not terminate its activities on and use of the License Area pursuant to this License without prior written notice to City.
24. No Joint Ventures or Partnership; No Authorization. This License does not create a partnership or joint venture between City and Licensee as to any activity conducted by Licensee on, in, or relating to the License Area. Licensee is not a state actor with respect to any activity conducted by Licensee on, in, under, or around the License Area. City’s provision of this License does not constitute City’s authorization or approval of any activity conducted by Licensee on, in, around, or relating to the License Area.
25. Intentionally Omitted.
26. Intentionally Omitted.
27. Intentionally Omitted.
28. Notification of Prohibition on Contributions. Licensee acknowledges that it is familiar with Section 1.126 of the San Francisco Campaign and Governmental Conduct Code, which prohibits any person who contracts with City for the selling or leasing of any land or building to or from City whenever the transaction would require the approval by a City elective officer, the board on which that City elective officer serves, or a board on which an appointee of that individual serves, from making any campaign contribution to (a) the City elective officer, (b) a candidate for the office held by such individual, or (c) a committee controlled by that individual or candidate, at any time from the commencement of negotiations for the contract until the later of either the termination of negotiations for the contract or twelve months after the date the contract is approved.
Licensee acknowledges that the foregoing restriction applies only if the contract or a combination or series of contracts approved by the same individual or board in a fiscal year have a total anticipated or actual value of $100,000 or more. Licensee further acknowledges that (i) the prohibition on contributions applies to each Licensee; each member of Licensee’s board of directors, and Licensee’s chief executive officer, chief financial officer, and chief operating officer, if applicable; any person with an ownership interest of more than ten percent (10%) in Licensee; any subcontractor listed in the contract; and any committee that is sponsored or controlled by Licensee; and (ii) within thirty (30) days of the submission of a proposal for the contract, the City department seeking to enter into the contract must notify the Ethics Commission of the parties and any subcontractor to the contract. Additionally, Licensee certifies it has informed each of the persons described in the preceding sentence of the prohibitions contained in Section 1.126 by the time it submitted a proposal for the contract to City, and has provided the names of the persons required to be informed to the City department seeking to enter into that contract within thirty (30) days of submitting its contract proposal to the City department receiving that submittal, and acknowledges the City department receiving that submittal was required to notify the Ethics Commission of those persons.
29. Intentionally Omitted.
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30. Taxes, Assessments, Licenses, License Fees, and Liens. (a) Licensee recognizes and understands that this License may create a possessory interest subject to property taxation and that Licensee may be subject to the payment of property taxes levied on that interest. Licensee further recognizes and understands that any transfer or assignment permitted under this License and any exercise of any option to renew or extend this License may constitute a change in ownership for purposes of property taxation and therefore may result in a revaluation of any possessory interest created hereunder. (b) Licensee will pay taxes of any kind, including possessory interest taxes, that may be lawfully assessed on the interest created by this License and will pay all other taxes, excises, licenses, permit charges, and assessments based on Licensee’s usage of the License Area that may be imposed upon Licensee by law, all of which will be paid when the same become due and payable and before delinquency.
(c) Licensee will not allow or suffer a lien for any taxes or charges to be imposed upon the License Area or upon any equipment or property located on the License Area without promptly discharging the same, provided that Licensee may contest the validity of the same by paying under protest or posting adequate (at City’s sole discretion) security during any contest. (d) San Francisco Administrative Code Sections 23.38 and 23.39 require that City report certain information relating to this License, and any renewals of this License, to the County Assessor within sixty (60) days after any renewal, and that Licensee report certain information relating to any assignment of or transfer under this License to the County Assessor within sixty (60) days after any assignment or transfer transaction. Licensee will provide this information as may be requested by City to enable City to comply with this requirement.
31. Notices.
(a) Except as otherwise expressly provided in this License, service of notices and demands given under this License will be effective only if in writing and given by delivering the notice in person, by sending it first class mail or certified mail with a return receipt requested, or next-business-day courier, to City or to Licensee, as applicable, at the addresses specified below.
Properly addressed notices issued pursuant to this License will be deemed given on the date personal delivery is made or, if sent by a method that provides confirmation of delivery, on the earliest of confirmed delivery or confirmed attempted delivery:
City or the SFPUC: Real Estate Services Division
San Francisco Public Utilities Commission
525 Golden Gate Avenue, 10th Floor
San Francisco, CA 94102
Attn: Real Estate Director
Re: Vista Grande Staging Area License
License P4714
Telephone No.: (415) 487-5210
Licensee: Department of Water & Wastewater Resources
City of Daly City
153 Lake Merced Blvd
5144874.5 22 Rev. March 2025
Daly City, CA 94015
Attn: Joshua Cosgrove, Director of Water and
Wastewater Resources
Re: Vista Grande Staging Area License
License P4714
Telephone No.: (650) 991-8206
Email: [email protected]
Telephone numbers and email addresses are provided for convenience of communication and do not constitute sufficient methods for delivering notices. Each party may change its address for notices from time to time by giving notice to the other in the manner described above. (b) Emergency Contacts. Licensee will immediately notify the SFPUC’s City Distribution Division facility by phone at (415) 550-49000 of any emergency or incident requiring emergency response.
32. Prohibition of Tobacco Sales and Advertising. No advertising or sale of cigarettes or tobacco products is allowed on the License Area. This advertising prohibition includes the placement of the name of a company producing cigarettes or tobacco products or the name of any cigarette or tobacco product in any promotion of any event or product.
33. Prohibition of Alcoholic Beverage Advertising. No advertising of alcoholic beverages is allowed on the License Area. For purposes of this Section, “alcoholic beverage” will be defined as set forth in California Business and Professions Code Section 23004, and will not include cleaning solutions, medical supplies, and other products and substances not intended for drinking.
This advertising prohibition includes the placement of the name of a company producing alcoholic beverages or the name of any alcoholic beverage in any promotion of any event or product.
34. Restrictions on the Use of Pesticides. Chapter 3 of the San Francisco Environment Code (the Integrated Pest Management Program Ordinance or “IPM Ordinance”) describes an integrated pest management (“IPM”) policy to be implemented by all City departments. Licensee will not use or apply or allow the use or application of any pesticides on the License Area or contract with any person or entity to provide pest abatement or control services to the License Area without first receiving City’s written approval of an IPM plan that (a) lists, to the extent reasonably possible, the types and estimated quantities of pesticides that Licensee may need to apply to the License Area during the Term of this License, (b) describes the steps Licensee will take to meet City’s IPM Policy described in Section 300 of the IPM Ordinance and (c) identifies, by name, title, address, and telephone number, an individual to act as the Licensee’s primary IPM contact person with City. Licensee will comply, and will require all of Licensee’s contractors to comply, with the IPM plan approved by City and will comply with the requirements of Sections 300(d), 302, 304, 305(f), 305(g), and 306 of the IPM Ordinance, as if Licensee were a City department. Among other matters, the provisions of the IPM Ordinance: (i) provide for the use of pesticides only as a last resort, (ii) prohibit the use or application of pesticides on property owned by City, except for pesticides granted an exemption under Section 303 of the IPM Ordinance (including pesticides included on the most current Reduced Risk Pesticide List compiled by City’s Department of the Environment), (iii) impose certain notice requirements, and (iv) require Licensee to keep certain records and to report to City all pesticide use at the License Area by Licensee’s staff or contractors.
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If Licensee or Licensee’s contractor will apply pesticides to outdoor areas at the License Area, Licensee must first obtain a written recommendation from a person holding a valid Agricultural Pest Control Advisor license issued by the California Department of Pesticide Regulation (“CDPR”) and any pesticide application will be made only by or under the supervision of a person holding a valid, CDPR-issued Qualified Applicator certificate or Qualified Applicator license. City’s current Reduced Risk Pesticide List and additional details about pest management on City property can be found at the San Francisco Department of the Environment website, http://sfenvironment.org/ipm.
35. Conflict of Interest. Licensee acknowledges that it is familiar with the provisions of Section 15.103 of City’s Charter, Article III, Chapter 2 of City’s Campaign and Governmental Conduct Code, and Section 87100 et seq. and Section 1090 et seq. of the California Government Code and certifies that it does not know of any facts that would constitute a violation of said provisions. If Licensee becomes aware of any fact that would constitute a violation of these provisions during the Term of this License, Licensee will immediately notify City.
36. Disclosure. City’s Sunshine Ordinance (San Francisco Administrative Code Chapter 67) and the State Public Records Act (Gov’t Code Section 7920.000 et seq.), apply to this License and all records, information, and materials related to this License submitted to City in connection with this License. Accordingly, all records, information, and materials may be subject to public disclosure in accordance with City’s Sunshine Ordinance and the State Public Records Act.
Licensee authorizes City to disclose any records, information, and materials submitted to City in connection with this License.
37. Intentionally Omitted.
38. Severability. If any provision of this License, or its application to any person, entity, or circumstance, will be held to be invalid or unenforceable by a court of competent jurisdiction, the remainder of this License, or the application of any provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this License will be valid and be enforceable to the fullest extent permitted by law, except to the extent that enforcement of this License without the invalidated provision would be unreasonable or inequitable under all the circumstances or would frustrate a fundamental purpose of this License.
39. Cooperative Drafting. This License has been drafted through a cooperative effort of both Parties, and both Parties have had an opportunity to have the License reviewed and revised by legal counsel. No Party will be considered the drafter of this License, and no presumption or rule that an ambiguity will be construed against the Party drafting the clause will apply to the interpretation or enforcement of this License.
40. Intentionally Omitted.
41. San Francisco Packaged Water Ordinance. Licensee will comply with San Francisco Environment Code Chapter 24 (“Chapter 24”). Licensee will not sell, provide, or otherwise distribute Packaged Water, as defined in Chapter 24 (including bottled water), in the performance of this License or on City property unless Licensee obtains a waiver from City’s Department of the Environment. If Licensee violates this requirement, City may exercise all remedies in this
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License and the Director of City’s Department of the Environment may impose administrative fines as set forth in Chapter 24.
42. General Provisions. (a) This License may be amended or modified only by a writing signed by City and Licensee. (b) No waiver by any Party of any of the provisions of this License will be effective unless in writing and signed by an officer or other authorized representative of such Party, and only to the extent expressly provided in a written waiver. No waiver will be deemed a subsequent or continuing waiver of the same, or any other, provision of this License. (c) The exhibits referenced in and attached hereto are incorporated into this License. (d) This License contains the entire agreement between the Parties regarding the subject matter of this License, and supersedes all prior written or oral negotiations, discussions, understandings, and agreements between the Parties regarding such subject matter. (e) The Section and other headings of this License are for convenience of reference only and will be disregarded in the interpretation of this License. (f) Time is of the essence in all matters relating to this License. (g) This License will be governed by California law and City’s Charter. (h) If either Party commences an action against the other or a dispute arises under this License, the prevailing party will be entitled to recover from the other reasonable attorneys’ fees and costs. For purposes of this License and the indemnifications set forth in this License, reasonable attorneys’ fees of City will be based on the fees regularly charged by private attorneys in San Francisco with comparable experience notwithstanding City’s use of its own attorneys. (i) If Licensee consists of more than one person then the obligations of each person will be joint and several. (j) Licensee may not record this License or any memorandum of this License. (k) Subject to the prohibition against assignments or other transfers by Licensee hereunder, this License will be binding upon and inure to the benefit of the Parties and their respective heirs, representatives, successors, and assigns. (l) Any sale or conveyance of the property burdened by this License by City will automatically revoke this License. (m) Except as expressly provided to the contrary, all approvals, consents, and determinations to be made by City under this License may be made at City’s sole and absolute discretion. (n) Whenever this License requires City’s or the SFPUC’s consent or approval, the General Manager of the SFPUC, or their designee, will be authorized to provide such consent or approval, except as otherwise provided by applicable Laws, including City’s Charter, or by the SFPUC’s Real Estate Guidelines. No consent, approval, election, or option will be effective unless given, made, or exercised in writing. (o) This License may be executed in two or more counterparts, each of which will be deemed an original, but all of which taken together will constitute one and the same instrument. (p) Use of the word “including”, or similar words will not be construed to limit any general term, statement, or other matter in this License, whether or not language of non-limitation, such as “without limitation” or similar words, are used. (q) Each person executing this License on Licensee’s behalf does hereby represent and warrant that Licensee has full right and authority to enter into this License, and that each person signing on behalf of Licensee is duly authorized to bind Licensee to the terms and conditions of this License.
Upon City’s request, Licensee will provide documentation confirming the foregoing representations and warranties.
[SIGNATURES ON FOLLOWING PAGE]
5144874.5 25 Rev. March 2025
LICENSEE REPRESENTS AND WARRANTS TO CITY THAT IT HAS READ AND
UNDERSTANDS THE CONTENTS OF THIS LICENSE, HAS HAD AN OPPORTUNITY TO
REVIEW AND DISCUSS IT WITH COUNSEL OF ITS CHOOSING, AND AGREES TO COMPLY WITH AND BE BOUND BY ALL OF ITS PROVISIONS.
LICENSEE:
CITY OF DALY CITY,
a municipal corporation
By: ____________________________________
Its: ____________________________________
Date: ____________________________________
CITY:
CITY AND COUNTY OF SAN FRANCISCO,
a municipal corporation
By: ____________________________________
DENNIS J. HERRERA
General Manager
San Francisco Public Utilities Commission
(authority pursuant to SFPUC Resolution
No. 24-0185)
Date: ____________________________________
APPROVED AS TO FORM:
DAVID CHIU
City Attorney
By: ____________________________
Nancy Taylor
Deputy City Attorney
5144874.5
EXHIBIT A-1
Description of License Area
All that certain real property located in the County of San Francisco, California, described as follows:
Portions of SFPUC Parcel No. 55 (“Lake Merced Tract”), according to SFPUC records and as shown on the drawing attached as Exhibit B and made a part of this License.
5144874.5
EXHIBIT A-2
Depiction of the Property
[see attached]
5144874.5
EXHIBIT B
Depiction of License Area
[see attached]
5144874.5
EXHIBIT C
Deed
[see attached]
5144874.5
EXHIBIT D
Work Schedule
Temporary Use Parcel: Approx.
Area (in
square
feet)
Duration
(Months):
Estimated Occupancy Dates
Temporary Use Parcel No. 1 1,765 10 Summer 2026 to Early 2027 Temporary Use Parcel No. 2 1,802 10 Summer 2026 to Early 2027 Temporary Use Parcel No. 3 2,427 2 Late 2026/early 2027 or Winter/Spring 2028 (timing is
flexible)
Temporary Use Parcel No. 4 4,001 2 Late 2026/early 2027 or Winter/Spring 2028 (timing is
flexible)
Temporary Use Parcel No. 5 38,873 48 Early 2026 to Late 2029 Temporary Use Parcel No. 6 1,319 6 Late 2028 to Early 2029 Temporary Use Parcel No. 7 595 6 Late 2028 to Early 2029 Temporary Use Parcel No. 8 4,454 6 Late 2028 to Early 2029 Temporary Use Parcel No. 9 4,605 6 Late 2028 to Early 2029 Temporary Use Parcel No. 10 1,457 26 Fall 2027 to Winter 2029 Temporary Use Parcel No. 11 1,635 26 Fall 2027 to Winter 2029
City Council Meeting Agenda Report Item # _____
props
Meeting Date: November 24, 2025
Subject: Authorize License Agreement with the City and County of San Francisco to Construct a new Lake Merced Overflow Structure for the Vista Grande Drainage Basin Improvement Project
Recommended Action
Authorize the City Manager to execute a License Agreement with the City and County of San Francisco (SFPUC) to construct a new Lake Merced Overflow Structure for the Vista Grande Drainage Basin Improvement Project.
Background
The Vista Grande Drainage Basin Improvement Project (Project) is a multi-benefit stormwater management project that will manage, treat, and reuse stormwater in the Vista Grande Drainage Basin while also providing regional water quality, water supply, and recreational benefits.
The Vista Grande storm drain system drains the northwestern portion of Daly City (City) and an unincorporated portion of San Mateo County – areas originally within the watershed of Lake Merced. In the 1890’s, the Vista Grande Canal and Tunnel were built to divert storm water away from the lake to an outlet at the Pacific Ocean. The existing Canal and Tunnel do not have adequate hydraulic capacity to convey peak storm flows, and this periodically causes backup of Tunnel flows into the Canal and flooding during peak storm events in adjacent low-lying residential areas and along John Muir Drive. This Project will allow the City and SFPUC to work collaboratively to alleviate flooding in the Vista Grande Drainage Basin and Lake Merced Tract and facilitate augmentation and management of Lake Merced water levels using sustainable supplies of the City’s stormwater.
Discussion
This agreement is made with reference to the following recitals:
A. San Francisco, through the SFPUC, owns real property located in the City and County of San Francisco, described as SFPUC Parcel No. 55 and designated as a portion of Assessor’s Parcel No. 7283-004, running north along the east and west sides of John Muir Drive. The Property constitutes a portion of the SFPUC’s regional water delivery system and contains SFPUC water supply and wastewater facilities and associated utility rights of way.
B. Daly City seeks to implement the Vista Grande Basin Drainage Improvement Project to upgrade the Vista Grande storm drain system, which is a regional stormwater system that drains the northwestern portion of Daly City and an unincorporated portion of San Mateo County. SFPUC staff and consultants worked for several years with Daly City staff and consultants to develop the Project. The Project seeks to alleviate storm-related flooding in Daly City and San Francisco, reduce uncontrolled overflows from Daly City’s Vista Grande Canal into Lake Merced, and also facilitate the augmentation and management of Lake Merced water levels, which have steadily declined, by using sustainable supplies of Daly City’s stormwater.
C. The Project would route storm water from the Canal through a treatment wetland to be developed on the Property and then would either discharge stormwater to South Lake Merced via
City Council Agenda Report
Subject: Authorize License Agreement with the City and County of San Francisco to Construct a new Lake Merced Overflow Structure for the Vista Grande Drainage Basin Improvement Project
Meeting Date: November 24, 2025