Agenda packet, regular meeting — San Mateo City Council, July 17, 2023 (part 2 of 4)

of the Agency may be endorsed onto the Vendor’s Cyber Liability Policy as covered property as follows:

If the Vendor maintains broader coverage and/or higher limits than the minimums shown above, the Entity requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Entity.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The Entity, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Vendor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

Primary Coverage
For any claims related to this contract, the Vendor’s insurance coverage shall be primary and non-contributory.

Coverage for commercial liability shall be at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Vendor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess policies.

Notice of Cancellation
Each insurance policy required above shall state that coverage shall not be canceled, except with notice to the Entity.

Waiver of Subrogation
Vendor hereby grants to Entity a waiver of any right to subrogation which any insurer of said Vendor may acquire against the Entity by virtue of the payment of any loss under such insurance. Vendor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Entity has received a waiver of subrogation endorsement from the insurer.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the CONSULTANT to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A-:VII, unless otherwise acceptable to the Entity.

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Verification of Coverage
Vendor shall furnish the Entity with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the Entity before work commences.

However, failure to obtain the required documents prior to the work beginning shall not waive the Vendor’s obligation to provide them. The Entity reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Subcontractors
Vendor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Vendor shall ensure that Entity is an additional insured on insurance required from subcontractors.

Special Risks or Circumstances
Entity reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 16 Section Name: CONSENT CALENDAR Account Number: 10-2311 File ID: 23-7705 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Human Resources Department
MEETING DATE: July 17, 2023
SUBJECT:

Community Development Department and Police Department – Job Specification Updates RECOMMENDATION:

Adopt a Resolution to approve the revisions to the job specifications for the classifications of Deputy Building Official and Dispatcher I-II.

BACKGROUND:

Community Development Department: Deputy Building Official job specification The License/Certificate requirement in the job specification for the Deputy Building Official classification has been revised to allow 12 months’ time to obtain the required certification from the date of appointment to align with the California Health and Safety Code, which allows 12 months between date of appointment and date of certification. The previous version specified the successful candidate would possess the certificate upon appointment, which is more stringent than that for the higher position of Building Official and beyond what the Code requires. The job specification has been revised to state that, possession of a Plans Examiner Certificate issued by the International Code Council or Building Official Certificate, or other equivalent state, national, or international association is required within one year of appointment.

Additional changes to job specification have been made to accurately reflect the definition, supervision received and exercised, essential duties and qualifications required of the position.

Police Department: Dispatcher I-II job specification
Commission Regulation 1957 of the California Code of Regulations mandates that, “Every public safety dispatcher candidate shall demonstrate verbal, reasoning, memory, and perceptual abilities at levels necessary to perform the job.

Satisfactory completion of this requirement may occur at any time prior to appointment”. The two primary testing options for hiring Dispatchers are the POST Entry-Level Dispatcher Selection Test Battery and the CritiCall. A passing score in either of these test batteries has been proven to be predictive of job success and training proficiency. The job specification has been revised to state that, verification of successful completion of the P.O.S.T. Entry-Level Dispatcher Selection Test Battery Examination with a minimum passing “T-score” of 48 or higher or verification of successful completion of a CritiCall Examination with a minimum passing score of 50 or higher is required. Additional changes to the job specification have been made to accurately reflect the supervision received and exercised of the position.

BUDGET IMPACT:

There is no budget impact associated with the revisions to the job specifications for the classifications of Deputy Building Official and Dispatcher I-II.

ENVIRONMENTAL DETERMINATION:

These job specification revisions are exempt from CEQA review because it can be seen with certainty that there is no

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CITY OF SAN MATEO
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possibility that this activity may have a significant effect on the environment. (CEQA Guidelines Section 15061(b)(3).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution
Exhibit A - Job Specifications
Att 2 - Job Specifications with tracked changes

STAFF CONTACT
Lourdes Coles, Senior Human Resource Analyst
[email protected]
(650) 522-7264

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CITY OF SAN MATEO
RESOLUTION NO. __ (2023)

JOB SPECIFICATION UPDATES

COMMUNITY DEVELOPMENT DEPARTMENT AND POLICE DEPARTMENT
WHEREAS, pursuant to the San Mateo Municipal Code Section 2.57.030(d), approval of new classifications and related job specifications, salary schedules, compensation changes, elimination or reinstatement of positions, reallocation of positions, reclassifications, and revisions of job specifications must be approved by City Council Resolution; and
WHEREAS, the proposed changes as detailed below are in response to Community Development Department and Police Department’s requests to revise the job specifications for the classifications of Deputy Building Official and Dispatcher I-II to accurately reflect the requirements of the classifications.

WHEREAS, the job specifications for the classifications of Deputy Building Official and Dispatcher I- II are attached hereto as Exhibit A, and incorporated by reference; and WHEREAS, the employee associations representing the impacted classifications have been informed of the job specification updates and have not brought forth any objections or concerns.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:

1. The revisions to the job specifications for the classifications of Deputy Building Official and Dispatcher I-II are not subject to CEQA because it can be seen with certainty that they will not cause a physical change in the environment; and

2. The revisions to the job specifications for the classifications of Deputy Building Official and Dispatcher I-II are approved and attached as Exhibit A.

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Exhibit A

DEPUTY BUILDING OFFICIAL

DEFINITION
Under the direct supervision of the Building Official: assist in the administration of the Building Division including, but not limited to; assigning, supervising, coordinating, and participating in the daily operations of the Building Division staff; provides technical guidance and training to technical and office staff; performs the more complex plan check, inspection, permit center, and enforcement work related to compliance with building codes, ordinances, rules and regulations; and performs related duties as required.

SUPERVISION RECEIVED AND EXERCISED
Exercises direct supervision over Building Division staff and other technical staff, as assigned.

Receives direction from the Building Official, Deputy Director, or Director.

EXAMPLES OF IMPORTANT AND ESSENTIAL DUTIES
Develop methods and procedures to ensure efficient and proper operation of permit applications, plan checking, permit issuance, and inspection processes.

Supervise the inspection of residential, commercial, and industrial construction to ensure compliance with all applicable building and safety codes, ordinances, rules, and regulations.

Supervise and assist in reviewing and resolving difficult and complex plan review, inspection, and enforcement problems, issues, and conflicts.

Provide technical information regarding codes and compliance methods to contractors, developers, architects, engineers, other City Staff, and the general public.

Prepare and submit a variety of reports, memos, and correspondence on code compliance and inspection related matters.

Compile and maintain statistics on plan check inspection activities and performance.

Perform field inspections on special and the more complex code enforcement assignments.

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Assist in budget preparation and administration of division budget.

Supervise, train, and evaluate assigned staff.

Serve as acting Building Official when assigned.

Assists and supervises plan check and permit staff in the review of commercial, industrial and multi-family residential projects, responds to public counter inquiries, and issues building permits on as needed basis.

JOB RELATED AND ESSENTIAL QUALIFICATIONS
Knowledge of:

Adopted Building Code and related codes, ordinances, and state and federal regulations related to construction.

Building construction and materials, and accepted safety standards.

Principles and techniques of structural, electrical, plumbing, and mechanical building inspections.

Basic engineering principles.

Building inspection practices.

Principles of supervision, training, and performance evaluation.

Ability to:

Communicate clearly and effectively with builders, engineers, architects, City staff and the general public, both orally and in writing.

Complete the implementation of department goals, objectives, policies, procedures and programs.

Make oral and written reports to the Development Review Board, City Council and other citizen committees as assigned.

Assign and supervise the work of others.

Prepare detailed reports and present information in a complete and effective manner.

Analyze, interpret, and accurately check building plans and specifications.

Experience and Training Guidelines:

Any combination of sufficient education, training and/or work experience that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge, skills, and abilities would be:

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Training:

Equivalent to a Bachelor's degree from an accredited college or university with major course work in structural, mechanical architecture, or a related field is preferred.

License or Certificate
Possession of a Plans Examiner Certificate issued by the International Code Council or Building Official Certificate, or other equivalent state, national, or international association is required within one year of appointment.

ADA Special Requirement:

Essential duties require the following physical abilities and work environment:

Work in an office and construction site environment; exposure to dust, noise, and construction site hazards; will require some climbing, stooping, kneeling, reaching, twisting, and extended periods of sitting, standing, or walking.

ADOPTED CC: 4-12-81, 10-21-13
REVISED CC: 12-16-85, 4-22-97, 6-21-04, 7-17-23
FORMER TITLES:

BARGAINING UNIT: MANAGEMENT UNIT
FLSA: EXEMPT
DOT: NO
PRE APPT MEDICAL: YES
SAFETY SENSITIVE: YES
FORM 700: YES
JOB CODES: 2091
ABOLISHED: 6-16-08, 7-1-19

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DISPATCHER I/II

DEFINITION
To receive all incoming calls for police and fire assistance for a number of local jurisdictions and dispatch necessary units using a computer aided dispatch system; to perform a variety of general support duties related to communications activities; and to do related work as required.

DISTINGUISHING CHARACTERISTICS
Dispatcher I - This is the entry-level class in the Dispatcher series. This class is distinguished from the Dispatcher II in that incumbents of this class are trained in department policies, procedures and systems. Generally, work is observed and reviewed both during performance and upon completion.

Since this class is typically used as a training class, employees may have only limited or no directly related work experience.

Dispatcher II - This is the journey level class within the Dispatcher series. Employees within this class are distinguished from the Dispatcher I by the greater independence with which an incumbent is expected to operate. Employees at this level receive only occasional instruction or assistance as new or unusual situations arise, and are fully aware of the operating procedures and policies of the work unit. Positions in this class are flexibly staffed and are normally filled by advancement from the lower class of Dispatcher I, or, when filled from the outside, require prior public safety emergency dispatch experience. Appointment to the higher class requires that the employee be performing the full range of duties assigned to the class.

SUPERVISION RECEIVED AND EXERCISED
Dispatcher I
Receives immediate supervision from a Dispatch Supervisor.

Dispatcher II
Receives general supervision from a Dispatch Supervisor.

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May exercise technical or functional supervision to new employees.

EXAMPLES OF DUTIES - Depending upon assignment, duties may include, but are not limited to, the following:

Process emergency calls from the public requesting police, fire, ambulance or other emergency service within a number of local jurisdictions on computer aided dispatch terminal.

Determine nature, location, and priority of emergency; coordinate response of police, fire, ambulance or other emergency units through computer aided mobile data terminals in accordance with established procedures.

Maintain contact with all units on assignment; maintain status and location of police field units and fire units using computer status display.

Answer non-emergency calls; relay information and assistance requests involving other law enforcement and fire fighting agencies.

Assist in training new employees in dispatch, including complaint desk and teletype operation.

Operate teletype machine to retrieve information from teletype networks relating to wanted persons, stolen property, vehicle registration, stolen vehicles and other information.

Contact relatives of victims of traffic collisions or crimes for identification of subjects.

Contact district attorney's office, probation officers, state parole officers, police agencies and fire agencies regarding various emergency and non-emergency incidents.

Coordinate countywide roadblocks with the sheriff's department during major crime incidents; contact agencies outside the county regarding suspect information.

Perform a variety of record keeping, filing, indexing, and other general clerical work.

Test and inspect equipment as required.

Compile statistics on calls received.

May testify in court regarding activities leading to legal proceedings.

May act as shift supervisor in the absence of the Senior Dispatcher.

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QUALIFICATIONS
Dispatcher I
Knowledge of:

English usage, spelling, grammar and punctuation.

Standard radio or telephone communications receiving and transmitting equipment. Modern office procedures, methods and computer equipment.

Ability to:

Communicate clearly and concisely, both orally and in writing.

Learn standard broadcasting procedures and rules.

Learn to operate a sophisticated computer aided dispatch system quickly and accurately.

Learn the uses and capabilities of the City's computer aided dispatch system.

Work under pressure, exercise good judgment, and make sound decisions in emergency situations with a minimum amount of supervision.

Learn geographic features and streets within the area served and other user agencies.

Learn department procedures and policies pertaining to the dispatching of City emergency equipment and those of other user agencies.

Effectively elicit information from irate and upset citizens.

Establish and maintain cooperative working relationships with those contacted in the course of work.

Type at a speed necessary for adequate job performance.

Understand and follow oral and written instructions.

Learn to operate a computerized dispatch teletype and other office equipment.

Learn public safety classification codes and computer commands.

Spell accurately.

Work various shifts as assigned.

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Experience and Education Guidelines
Any combination of experience and training that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:

Experience:

Some telephone or dispatch experience is highly desirable.

Education:

Equivalent to completion of the twelfth grade.

License or Certificate
Verification of successful completion of the P.O.S.T. Entry-Level Dispatcher Selection Test Battery Examination with a minimum passing “T-score” of 48 or higher or verification of successful completion of a CritiCall Examination with a minimum passing score of 50 or higher.

Possession of, or ability to attain, a POST (Peace Officer Standards & Training) Written Examination Certificate
Dispatcher II
In addition to the qualifications of Dispatcher I:

Knowledge of:

Uses and capabilities of the City's computer aided dispatch system.

Standard radio broadcasting procedures and rules.

Procedures and policies pertaining to the dispatching of emergency equipment.

Public safety classification codes and computer commands.

Ability to:

Operate a sophisticated computer aided dispatch system quickly and accurately. Assist in training new employees.

Operate a computerized dispatch teletype and other office equipment quickly, accurately and, at times, concurrently.

Experience and Education Guidelines
Any combination of experience and training that would likely provide the required knowledge and

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abilities is qualifying. A typical way to obtain the knowledge and abilities would be:

Experience:

One year of public safety dispatch experience comparable to that of a Dispatcher I in the City of San Mateo.

Education:

Equivalent to the completion of the twelfth grade.

ADA Special Requirement:

Essential duties require the following physical abilities and work environment:

Ability to work in a standard office environment with some ability to sit for long periods of time, twist, and reach.

ADOPTED CC: 4-12-81
REVISED CC: 9-07-88, 6 21-99, 6-18-07, 7-17-23
FORMER TITLES:

BARGAINING UNIT: POA-NS
FLSA: NON EXEMPT
PERFORMANCE APPRAISAL: DISPATCHER
DOT: NO
PRE APPT MEDICAL: YES
SAFETY SENSITIVE: YES
FORM 700: NO
JOB CODES: DISPATCHER I – 4555, DISPATCHER II - 4556
ABOLISHED:

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DEPUTY BUILDING OFFICIAL

DEFINITION

Under the direct supervision of the Building Official: assist in the administration of the Building Division including, but not limited to; assigning, supervising, coordinating, and participating in the daily operations of the Building Division staff; provides technical guidance and training to technical and office staff; performs the more complex plan check, inspection, permit center, and enforcement work related to compliance with building codes, ordinances, rules and regulations; and performs related duties as required.

SUPERVISION RECEIVED AND EXERCISED

Exercises direct supervision over plan checkBuilding Division staff and other technical staff, as assigned.

Receives direction from the Building Official, Deputy Director, or Director.

EXAMPLES OF IMPORTANT AND ESSENTIAL DUTIES

Develop methods and procedures to ensure efficient and proper operation of permit applications, plan checking, permit issuance, and inspection processes.

Supervise the inspection of residential, commercial, and industrial construction to ensure compliance with all applicable building and safety codes, ordinances, rules, and regulations.

Supervise and assist in reviewing and resolving difficult and complex plan review, inspection, and enforcement problems, issues, and conflicts.

Provide technical information regarding codes and compliance methods to contractors, developers, architects, engineers, other City Staff, and the general public.

Prepare and submit a variety of reports, memos, and correspondence on code compliance and inspection related matters.

Compile and maintain statistics on plan check inspection activities and performance.

Perform field inspections on special and the more complex code enforcement assignments.

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City of San Mateo
Deputy Building Official

Page 2 ends

Assist in budget preparation and administration of division budget.

Supervise, train, and evaluate assigned staff.

Serve as acting Building Official when assigned.

JOB RELATED AND ESSENTIAL QUALIFICATIONS

Knowledge of:

Adopted Building Code and related codes, ordinances, and state and federal regulations related to construction.

Building construction and materials, and accepted safety standards.

Principles and techniques of structural, electrical, plumbing, and mechanical building inspections.

Basic engineering principles.

Building inspection practices.

Principles of supervision, training, and performance evaluation.

Ability to:

Deal and cCommunicate clearly and effectively with builders, engineers, architects, City staff and the general public, both orally and in writing. while eliciting their cooperation.

Complete the implementation of department goals, objectives, policies, procedures and programs.

Make oral and written reports to the Development Review Board, City Council and other citizen committees as assigned.

Communicate clearly and concisely, orally and in writing.

Assign and supervise the work of others.

Prepare detailed reports and present information in a complete and effective manner.

Analyze, interpret, and accurately check building plans and specifications.

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City of San Mateo
Deputy Building Official

Page 3 ends

Experience and Training Guidelines:

Experience:

Five years of increasingly responsible experience in plan check and/or inspection of residential, commercial and industrial construction, with supervisory experience.

Training:

Equivalent to a Bachelor's degree from an accredited college or university with major course work in structural, mechanical architecture, or a related field is preferred.

License or Certificate

Possession of a Plans Examiner Certificate issued by the International Code Council or Building Official Certificate, or other equivalent state, national, or international association is required within one year of appointment.

ADA Special Requirement:

Essential duties require the following physical abilities and work environment:

ADOPTED CC: 4-12-81, 10-21-13
REVISED CC: 12-16-85, 4-22-97, 6-21-04
FORMER TITLES:

BARGAINING UNIT: MANAGEMENT UNIT
FLSA: EXEMPT
DOT: NO
PRE APPT MEDICAL: YES
SAFETY SENSITIVE: YES
FORM 700: YES
JOB CODES: 2091
ABOLISHED: 6-16-08, 7-1-19

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DISPATCHER I/II

DEFINITION

To receive all incoming calls for police and fire assistance for a number of local jurisdictions and dispatch necessary units using a computer aided dispatch system; to perform a variety of general support duties related to communications activities; and to do related work as required.

DISTINGUISHING CHARACTERISTICS

Dispatcher I - This is the entry-level class in the Dispatcher series. This class is distinguished from the Dispatcher II in that incumbents of this class are trained in department policies, procedures and systems. Generally, work is observed and reviewed both during performance and upon completion.

Since this class is typically used as a training class, employees may have only limited or no directly related work experience.

Dispatcher II - This is the journey level class within the Dispatcher series. Employees within this class are distinguished from the Dispatcher I by the greater independence with which an incumbent is expected to operate. Employees at this level receive only occasional instruction or assistance as new or unusual situations arise, and are fully aware of the operating procedures and policies of the work unit. Positions in this class are flexibly staffed and are normally filled by advancement from the lower class of Dispatc her I, or, when filled from the outside, require prior public safety emergency dispatch experience. Appointment to the higher class requires that the employee be performing the full range of duties assigned to the class.

SUPERVISION RECEIVED AND EXERCISED

Dispatcher I

Receives immediate supervision from a Dispatch SupervisorSenior Dispatcher.

Dispatcher II
Receives general supervision from a Dispatch Supervisora Senior Dispatcher.

May exercise technical or functional supervision to new employees.

EXAMPLES OF DUTIES - Depending upon assignment, duties may include, but are not limited to, the following:

Process emergency calls from the public requesting police, fire, ambulance or other emergency service within a number of local jurisdictions on computer aided dispatch terminal.

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Maintain contact with all units on assignment; maintain status and location of police field units and fire units using computer status display.

Answer non -emergency calls; relay information and assistance requests involving other law enforcement and fire fighting agencies.

Assist in training new employees in dispatch, including complaint desk and teletype operation.

Operate teletype machine to retrieve information from teletype networks relating to wanted persons, stolen property, vehicle registration, stolen vehicles and other information.

Contact relatives of victims of traffic collisions or crimes for identification of subjects.

Contact district attorney's office, probation officers, state parole officers, police agencies and fire agencies regarding various emergency and non-emergency incidents.

Coordinate countywide roadblocks with the sheriff's department during major crime incidents; contact agencies outside the county regarding suspect information.

Perform a variety of record keeping, filing, indexing, and other general clerical work.

Test and inspect equipment as required.

Compile statistics on calls received.

May testify in court regarding activities leading to legal proceedings.

May act as shift supervisor in the absence of the Senior Dispatcher.

QUALIFICATIONS
Dispatcher I

Knowledge of:

English usage, spelling, grammar and punctuation.

Standard radio or telephone communications receiving and transmitting equipment.

Modern office procedures, methods and computer equipment.

Ability to:

Communicate clearly and concisely, both orally and in writing. Learn standard broadcasting procedures and rules.

Learn to operate a sophisticated computer aided dispatch system quickly and accurately. Learn the uses and capabilities of the City's computer aided dispatch system.

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Work under pressure, exercise good judgment, and make sound decisions in emergency situations with a minimum amount of supervision.

Learn geographic features and streets within the area served and other user agencies.

Learn department procedures and policies pertaining to the dispatching of City emergency equipment and those of other user agencies.

Effectively elicit information from irate and upset citizens.

Establish and maintain cooperative working relationships with those contacted in the course of work.

Type at a speed necessary for adequate job performance.

Understand and follow oral and written instructions.

Learn to operate a computerized dispatch teletype and other office equipment.

Learn public safety classification codes and computer commands.

Spell accurately.

Work various shifts as assigned.

Experience and Education Guidelines

Any combination of experience and training that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:

Experience:

Some telephone or dispatch experience is highly desirable.

Education:

Equivalent to completion of the twelfth grade.

License or Certificate

Verification of successful completion of the P.O.S.T. Entry-Level Dispatcher Selection Test Battery Examination with a minimum passing “T-score” of 48 or higher or verification of successful completion of a CritiCall Examination with a minimum passing score of 50 or higher.

Possession of, or ability to attain, of a POST (Peace Officer Standards & Training) Written Examination Certificate.

Dispatcher II

In addition to the qualifications of Dispatcher I:

Knowledge of:

Uses and capabilities of the City's computer aided dispatch system. Standard radio broadcasting procedures and rules.

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Procedures and policies pertaining to the dispatching of emergency equipment. Public safety classification codes and computer commands.

Ability to:

Operate a sophisticated computer aided dispatch system quickly and accurately. Assist in training new employees.

Operate a computerized dispatch teletype and other office equipment quickly, accurately and, at times, concurrently.

Experience and Education Guidelines

Any combination of experience and training that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:

Experience:

One year of public safety dispatch experience comparable to that of a Dispatcher I in the City of San Mateo.

Education:

Equivalent to the completion of the twelfth grade.

ADA Special Requirement:

Essential duties require the following physical abilities and work environment:

Ability to work in a standard office environment with some ability to sit for long periods of time, twist, and reach.

ADOPTED CC: 4-12-81
REVISED CC: 9-07-88, 6 21-99, 6-18-07
FORMER TITLES:

BARGAINING UNIT: POA-NS
FLSA: NON EXEMPT
PERFORMANCE APPRAISAL:

DIS
PATCHER DOT: NO
PRE APPT MEDICAL: YES
SAFETY SENSITIVE: YES
FORM 700: NO
JOB CODES: DISPATCHER I – 4555, DISPATCHER II - 4556
ABOLISHED:

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 17 Section Name: CONSENT CALENDAR Account Number: 18-6114 File ID: 23-7694 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: July 17, 2023
SUBJECT:

Senior Catered Lunch Services Rendered for Fiscal Year 2022-2023 and Fiscal Years 2023-2026 – New Agreement and Amendment
RECOMMENDATION:

Adopt a Resolution to approve an alternative purchasing method for services already rendered and approve an agreement in an amount not to exceed $21,455.38 with Corporate Cuisine, Inc. (“Corporate Cuisine”) for senior lunch services delivered during fiscal year 2022-23; approve Amendment No. 1 to the agreement approved on May 15, 2023, with Corporate Cuisine for fiscal years 2023-26 to include tax; and authorize the Park and Recreation Director to execute both documents in substantially the form presented.

BACKGROUND:

On June 7, 2021, the City Council approved a one-year contract (with an optional one year renewal term) with Corporate Cuisine to provide lunch services to seniors for fiscal year 2021-22. On July 7, 2022, at the Parks and Recreation Director’s discretion, the City exercised its option to extend the contract by one more year. In fiscal year 2022-23, costs for food escalated from the contracted $10.00 a meal to $11.25 a meal. In addition, the original contract did not include tax. The original contract was for $91,950 but actual costs for fiscal year 2022-23 were $113,405.38. The per meal cost, including tax, for fiscal year 2022-23 is $12.34, and about 9,195 meals were delivered during this time. To reflect accurate food costs and tax, a new contract for the difference is required for services rendered from July 1, 2022 through June 30, 2023.

Therefore, staff recommends the approval of the fiscal year 2022-23 agreement in an amount not to exceed $21,455.38.

Pursuant to San Mateo Municipal Code Section 3.60.050(b), the City may use any purchasing procedures approved by the City Council if it makes a finding concurrent with the award of the contract that the procedures are in the best interest of the City. This agreement is for services already rendered that were related to an existing vendor who has completed the competitive bid process. Thus, calling for bids is impracticable, unavailing, or impossible because services have already been rendered.

In addition, staff recommends approval of Amendment No. 1 to the agreement with Corporate Cuisine for the current fiscal year through 2026, which the City Council approved on May 15, 2023. This agreement did not include tax in the payment terms. The proposed amendment adds the then current tax to the per meal cost for all fiscal years, which should not exceed the approved annual amount ($150,000) for all fiscal years.

BUDGET IMPACT:

The Parks and Recreation Department is expected to be able to absorb all additional costs related to this action within its current budget authority and with support from approved Measure K funds, which subsidizes meals at the Dr. Martin Luther King Jr. Center through the San Mateo County Aging and Adult Services Department. As such, no additional budget appropriations are needed.

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ENVIRONMENTAL DETERMINATION:

This is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Agreement for Fiscal Year 2022-23
Att 3 – Amendment No 1. for Fiscal Years 2023-26
Att 4 – Agreement for Fiscal Years 2023-26

STAFF CONTACT
Stephanie Douglas, Community Services Manager
[email protected]
(650) 522-7442

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CITY OF SAN MATEO
RESOLUTION NO. (2023)

APPROVING ALTERNATIVE PURCHASING PROCEDURE FOR AN AGREEMENT WITH CORPORATE CUISINE, INC. FOR SENIOR LUNCHES RENDERED FOR FISCAL YEAR 2022-23 WHEREAS, the City of San Mateo entered into a one-year (with a one-year option to renew) contract on July 8, 2021 with Corporate Cuisine, Inc. (“Corporate Cuisine”) to provide senior lunches; WHEREAS, Corporate Cuisine delivered lunches at a cost of $10.00 a meal for fiscal year 2021-22 and $11.25 a meal for fiscal year 2022-23, after contract renewal for an additional year; WHEREAS, the original contract did not include tax and food costs are a taxable item; WHEREAS, based on lunches served for fiscal year 2022-23, the City’s original contract was for $91,950 and actual services rendered amounted to a total of $113,405.38, resulting in a $21,455.38 difference; WHEREAS, the City requests additional contract authority from City Council in an amount not to exceed $21,455.38 for services rendered in fiscal year 2022-23; WHEREAS, Municipal Code Sections 3.60.050(b) provides that exceptions to the City Council Award Procedures are possible if the Council makes a finding concurrent with the award that calling for bids for that particular agreement is impracticable, unavailing, or impossible; and WHEREAS, City staff recommends approval of the additional agreement with Corporate Cuisine for services rendered in 2022-23 in an amount not to exceed $21,455.38.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY FINDS and RESOLVES that:

1. This is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

2. Pursuant to Municipal Code Section 3.60.050(b), calling for bids would be impracticable, unavailing, or impossible because Corporate Cuisine has already rendered services for fiscal year 2022-23.

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AGREEMENT WITH CORPORATE CUISINE, INC.

FOR
SENIOR CATERED LUNCH SERVICES RENDERED 2022-2023
This Agreement, made and entered into this day of____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and CORPORATE CUISINE INC, DBA: CREEKSIDE GRILL a CALIFORNIA CORPORATION ("CONTRACTOR"), whose address is CREEKSIDE GRILL, 9000 CROW CANYON ROAD, SUITE #610, DANVILLE, CA 94506.

RECITALS:

A. CITY desires certain catering services hereinafter described.

B. CITY desires to engage CONTRACTOR to provide these catering services by reason of its qualifications and experience for performing such services and CONTRACTOR has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES
.

The scope of services to be performed by CONTRACTOR under this Agreement is as described in Exhibit A to this Agreement, which is attached and incorporated by reference.

SECTION 2 - DUTIES OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONTRACTOR under this Agreement. CONTRACTOR shall, without additional compensation, correct or revise any errors or deficiencies in its work.

CONTRACTOR represents that it is qualified to furnish the services described under this Agreement.

CONTRACTOR shall be responsible for employing or engaging all persons necessary to perform the services of CONTRACTOR.

CONTRACTOR agrees to comply with the City’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.

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SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.

CITY shall examine documents submitted by CONTRACTOR and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONTRACTOR'S work.

SECTION 4 - TERM
Services rendered from July 1, 2022 and be completed on June 30, 2023.

SECTION 5 - PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR a fee in an amount of $1.25 per meal served in FY 22-23 + 9.63% tax. Total dollar amount per contracted year shall not exceed $21,455.38 pursuant to rates stated in Exhibit B, attached and incorporated by reference.

SECTION 6 - TERMINATION
Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONTRACTOR. CONTRACTOR agrees to cease all work under this Agreement upon receipt of said written notice.

SECTION 7 - OWNERSHIP OF DOCUMENTS
All documents prepared by CONTRACTOR in the performance of this Agreement are and shall be the property of CITY, whether the project for which they are made is executed or not.

SECTION 8 - CONFIDENTIALITY
All reports and documents prepared by CONTRACTOR in connection with the performance of this Agreement are confidential until released by CITY to the public. CONTRACTOR shall not make any such documents or information available to any individual or organization not employed by CONTRACTOR or CITY without the written consent of CITY before any such release.

SECTION 9 - INTEREST OF CONTRACTOR
CONTRACTOR covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement.

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SECTION 10 - CONTRACTOR'S STATUS
It is expressly agreed that in the performance of the services required under this Agreement, CONTRACTOR shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONTRACTOR an agent or employee of CITY while providing services under this Agreement.

SECTION 11 - INDEMNITY
CONTRACTOR agrees to hold harmless and indemnify CITY, its elected and appointed officials, employees, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONTRACTOR’s performance of this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONTRACTOR agrees to defend City, its elected and appointed officials, employees, and agents against any such claims. The CONTRACTOR’S duty to indemnify shall survive expiration or early termination of this Agreement.

SECTION 12 - INSURANCE
Contractor shall procure and maintain for the duration of the contract the insurance specified in Exhibit C to this Agreement
SECTION 13 - NONASSIGNABILITY
Both parties hereto recognize that this Agreement is for the personal services of CONTRACTOR and cannot be transferred, assigned, or subcontracted by CONTRACTOR without the prior written consent of CITY.

SECTION 14 - RELIANCE UPON SKILL OF CONTRACTOR
It is mutually understood and agreed by and between the parties hereto that CONTRACTOR is skilled in the performance of the work agreed to be done under this Agreement and that CITY relies upon the skill of CONTRACTOR to do and perform the work in the most skillful manner, and CONTRACTOR agrees to thus perform the work. The acceptance of CONTRACTOR's work by CITY does not operate as a release of CONTRACTOR from said obligation.

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SECTION 15 - WAIVERS
The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.

SECTION 16 - COSTS AND ATTORNEY FEES
Attorney fees in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of this Agreement. The above $5000 limit is the total of attorney fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this provision that neither party shall have to pay the other more than $5000 for attorney fees arising out of an action, or actions to enforce the provisions of this Agreement.

SECTION 17 - NON-DISCRIMINATION
CONTRACTOR warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONTRACTOR nor any of its subcontractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act.

SECTION 18 - MEDIATION
Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the State Mediation and Conciliation Service, or other agreed-upon service. The mediator shall be selected by a blind draw.

The cost of mediation shall be borne equally by the parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.

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SECTION 19 - LITIGATION
CONTRACTOR shall testify at CITY's request if litigation is brought against CITY in connection with CONTRACTOR's services under this Agreement. Unless the action is brought by CONTRACTOR, or is based upon CONTRACTOR's wrongdoing, CITY shall compensate CONTRACTOR for preparation for testimony, testimony, and travel at CONTRACTOR's standard hourly rates at the time of actual testimony.

SECTION 20 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:

To CITY: Parks and Recreation Department
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403
To CONTRACTOR: CORPORATE CUISINE, INC
DBA: Creekside Grill
Attn: Stanley Gedeon
9000 Crow Canyon Road #610
Danville, CA 94506
SECTION 21 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONTRACTOR and supersedes all prior negotiations, representations, and agreements, either written or oral.

This document may be amended only by written instrument, signed by both CITY and CONTRACTOR.

SECTION 22 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, CITY OF SAN MATEO and CORPORATE CUISINE INC. have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Joanne Magrini
Director Parks and Recreation
Date Stan Gedeon
Its Authorized Agent
Chief Executive Officer
If a Corporation, can be either 1)
President or 2) Vice President plus
an additional corporate officer
(i.e., Secretary, Treasurer) who
shall sign below.

Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)
Mazarin Vakharia
Assistant City Attorney
Date Date
Attachments:

Exhibit A: Scope of Services
Exhibit B: Payment Rates
Exhibit C: Insurance Requirements

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EXHIBIT A

SCOPE OF SERVICES
The Contractor/Caterer shall provide the following number of meals:

Monday/Wednesday/Friday – Senior Center 35 meals
Tuesday/Thursday – King Community Center 40 meals
Any revisions (reduction or increase in meal counts) will be provided to the vendor in writing at least one week prior to meal service date.

Meal Component Requirements:

Each meal must include all of the following:
-Salad
-Vegetables – ½ - 1 cup cooked or 1 cup raw leafy vegetable -Fruit – ½ cup serving (when served as dessert)
-Vitamin A - 233 mcg/day
-Vitamin C – 25 mg/day
-Bread/Grain - 1-2 servings, at least ½ whole grain
-Fiber – 7 grams/day
-Fortified Milk – 8 oz, low fat
-Sodium – No higher than 760mg to comply with County limit Food Delivery
•Food will be transported to the San Mateo Senior Center or King Community Center by approximately 11:30am for final preparation by caterer and/or brought to the appropriate temperature for serving as required by the San Mateo County Dietician and Environmental Health Agency. Food should arrive no earlier than 11:15am and typically not after 11:45am.
•Delivery Method: Food to be delivered in either a warming box, chilled box or in a fully operable catering van. Upon delivery, Contractor shall transfer food to either the steam table or refrigerator (whichever is appropriate.)

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EXHIBIT B

PAYMENT RATES
City shall pay Contractor per meal delivered as follows:

An additional $1.25 per meal + 9.63% tax for a total of $12.34 per meal.

Total compensation for this contract shall not exceed $21,455.38.

Month
# of
Days
# of lunches per
day
Total
Lunches
Cost per
lunch Total Cost
Tax

9.63%
Total with
Tax
July 2022 SR CTR 12 35 420 $11.25 $4,725.00 $455.02 $5,180.02 July 2022 KING 8 40 320 $11.25 $3,600.00 $346.68 $3,946.68 Aug 2022 SR CTR 14 35 490 $11.25 $5,512.50 $530.85 $6,043.35 Aug 2022 KING 9 40 360 $11.25 $4,050.00 $390.02 $4,440.02 Sept 2022 SR CTR 11 35 385 $11.25 $4,331.25 $417.10 $4,748.35 Sept 2022 KING 9 40 360 $11.25 $4,050.00 $390.02 $4,440.02 Oct 2022 SR CTR 13 35 455 $11.25 $5,118.75 $492.94 $5,611.69 Oct 2022 KING 8 40 320 $11.25 $3,600.00 $346.68 $3,946.68 Nov 2022 SR CTR 11 35 385 $11.25 $4,331.25 $417.10 $4,748.35 Nov 2022 KING 8 40 320 $11.25 $3,600.00 $346.68 $3,946.68 Dec 2022 SR CTR 10 35 350 $11.25 $3,937.50 $379.18 $4,316.68 Dec 2022 KING 9 40 360 $11.25 $4,050.00 $390.02 $4,440.02 Jan 2023 SR CTR 11 35 385 $11.25 $4,331.25 $417.10 $4,748.35 Jan 2023 KING 9 40 360 $11.25 $4,050.00 $390.02 $4,440.02 Feb 2023 SR CTR 11 35 385 $11.25 $4,331.25 $417.10 $4,748.35 Feb 2023 KING 8 40 320 $11.25 $3,600.00 $346.68 $3,946.68 Mar 2023 SR CTR 14 35 490 $11.25 $5,512.50 $530.85 $6,043.35 Mar 2023 KING 9 40 360 $11.25 $4,050.00 $390.02 $4,440.02 Apr 2023 SR CTR 12 35 420 $11.25 $4,725.00 $455.02 $5,180.02 Apr 2023 KING 8 40 320 $11.25 $3,600.00 $346.68 $3,946.68 May 2023 SR CTR 13 35 455 $11.25 $5,118.75 $492.94 $5,611.69 May 2023 KING 9 40 360 $11.25 $4,050.00 $390.02 $4,440.02 Jun 2023 SR CTR 13 35 455 $11.25 $5,118.75 $492.94 $5,611.69 June 2023 KING 9 40 360 $11.25 $4,050.00 $390.02 $4,440.02 FY 22-23 Grand
Total: 248 900 9195 11.25 $103,443.75 $9,961.68 $113,405.38 Original Contract
Total: 248 900 9195 10.00 $91,950.00 $0.00 $91,950.00
Differential: 248 900 9195 11.25 $11,493.75 $9,961.68 $21,455.38

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EXHIBIT C

INSURANCE REQUIREMENTS

MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:

1.Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2.Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3.Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

If the contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the contractor.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its elected and appointed officials, employees, and agents are to be covered as insureds on the auto policy for liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary insurance as respects the City, its elected and appointed officials, employees, and agents. Any insurance or self- insurance maintained by the City, its elected and appointed officials, employees, or agents shall be excess of the Contractor’s insurance and shall not contribute with it.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City.

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Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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AMENDMENT NO. 1 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
CORPORATE CUISINE, INC., DBA CREEKSIDE GRILL A CALIFORNIA CORPORATION FOR

SENIOR CATERED LUNCH SERVICES
WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and (“Corporate Cuisine Inc, DBA Creekside Grill”), entered into an Agreement for Senior Catered Lunch Services (“Agreement”) on June 2, 2023; and
WHEREAS, City and Corporate Cuisine Inc, DBA Creekside Grill wish to amend the Agreement effective ___________________ to increase the price per lunch provide and include the tax applicable for the duration of this Agreement.

NOW, THEREFORE, the parties agree as follows:

Section 5 of the Agreement is amended to read:

Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR a fee in an amount of $11.25-$12.50 per meal, plus current tax. Total dollar amount per contracted year shall not exceed $150,000 per fiscal year pursuant to rates stated in Exhibit B, attached and incorporated by reference.

Exhibit B of the Agreement is amended to read:

City shall pay Contractor per meal, delivered as follows:

Contracted Years:

July 1, 2023 – June 30, 2024: $11.25 per meal, plus current tax July 1, 2024 – June 30, 2025 $11.50 per meal, plus current tax July 1, 2025-June 30, 2026: $12.00 per meal, plus current tax Additional Optional Years:

July 1, 2026-June 30, 2027: $12.25 per meal, plus current tax July 1, 2027-June 30, 2028: $12.50 per meal, plus current tax Total compensation shall not exceed $150,000 per fiscal year.

2. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, CITY OF SAN MATEO and Corporate Cuisine Inc., DBA Creekside Grill have executed this Agreement on ___________________ .

CITY OF SAN MATEO CONTRACTOR – Corporate
Cuisine Inc,
Joanne Magrini
Director, Parks and Recreation
Date Stan Gedeon
Its Authorized Agent
Chief Executive Officer
If a Corporation, can be either 1)
President or 2) Vice President plus
an additional corporate officer
(i.e., Secretary, Treasurer) who
shall sign below.

Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)
Mazarin Vakharia
Assistant City Attorney
Date Date

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 18 Section Name: CONSENT CALENDAR Account Number: 10-6143 File ID: 23-7312 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: July 17, 2023
SUBJECT:

East Hillsdale Park Professional Consultant Services Agreement – Amendment RECOMMENDATION:

Approve Amendment No. 1 to the agreement with Callander Associates Landscape Architecture to add compensation up to $232,624; establish a contingency reserve of $25,000 to the original agreement amount for additional services and optional Construction Management and related services, for a total not to exceed amount of $440,004; and authorize the Park and Recreation Director to execute the amendment in substantially the form presented.

BACKGROUND:

On August 15, 2022, the City Council approved an agreement with Callander Associates Landscape Architecture (CALA) for professional consultant services for the playground and associated work at East Hillsdale Park for $167,380 with a $15,000 contingency. The initial scope included refined design, construction document, bid assistance, and construction observation for project work, such as repaving the perimeter path, landscaping, lighting, and upgrading other park infrastructure.

In February 2023, the Department identified further permitting requirements and design refinement for lighting options, drainage, and retention work as well as management and coordination of geotechnical work, which resulted in the need for external expertise and assistance. The Department’s current personnel constraints limit its ability to expedite tasks in house. Staff recommends approval of Amendment No. 1, for additional services not contained within in the initial scope of work, including building permit submittal and processing for a total of $68,718. The Department also requests approval for construction management services for a maximum of $163,906, as the Department is currently recruiting for an in-house Project Manager and may require further assistance.

BUDGET IMPACT:

The costs for the reconstruction and rehabilitation of East Hillsdale Park have been budgeted from the Parks and Recreation Capital Improvement Fund. Approximately $1.7 million has been set aside and this amount includes the Proposition 68 Per Capita Fund Grant of approximately $241,821, claimable upon completion.

ENVIRONMENTAL DETERMINATION:

This amendment approval is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

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ATTACHMENTS
Att 1 – Amendment No. 1

STAFF CONTACT
Nicholas Tsiorvas, Business Manager
[email protected]
(650) 522-7408

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AMENDMENT NO. 1 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND

CALLANDER ASSOCIATES LANDSCAPE ARCHITECTURE
WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and Callander Associates Landscape Architecture, entered into an Agreement for landscape architecture services (“Agreement”) on September 2, 2022; and
WHEREAS, City and Callander Associates Landscape Architecture wish to amend the Agreement effective ___________________ to modify the indemnity provision, add scope of work, and increase compensation.

NOW, THEREFORE, the parties agree as follows:

1. Section 11 – Indemnity, of the Agreement is deleted in its entirety and replaced with the following:

SECTION 11 - INDEMNITY
CONSULTANT agrees to hold harmless and indemnify CITY, its elected and appointed officials, employees, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONSULTANT’s negligence, recklessness or willful misconduct to the maximum extent permitted by state law. To the extent permitted by Civil Code section 2782.8, CONSULTANT agrees to defend City, its elected and appointed officials, employees, and agents against any such claims. The CONSULTANT’S duty to indemnify shall survive expiration or early termination of this Agreement.

2. The following is added to Exhibit A, Scope of Work:

5.1.1 DESIGN DEVELOPMENT SUBMITTAL UPDATES

1. Public Presentation Package: Compile updated swing design and play area color options (previously completed) into a package for the City’s use in presenting to the public.

2. Additional Effort and Inefficiency: During the Task 1 phase, additional effort was required to clarify the project process and design direction. Tasks included back and forth email correspondence, the project clarification meeting on 2/24/23 including preparation and follow up, as well as changing direction on what should be included within the additional services proposal which required coordination with our subconsultant team.

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5.1.2 PW AND GEOTECH REPORT COORDINATION

1. Public Works Coordination: Includes an additional virtual meeting held on 1/4/23. It is assumed that all future meetings with PW will be grouped into a single meeting with all other reviewing parties and no separate meetings or coordination will be required.

2. Geotech Report Coordination and Review: Includes sixteen (16) hours of previous Geotechnical Engineer coordination above and beyond the original scope and Twenty-six (26) hours ongoing coordination with the Geotechnical Engineer and design team to help finalize the Geotech report. Ongoing coordination includes virtual conference calls (up to 2 total), report reviews and comments, phone calls as necessary, and email correspondence.

Based on the Geotech Report, update the arborist report to coordinate with the Geotech’s recommendations. Allow for four (4) hours of updates.

5.1.3 CONSTRUCTION DOCUMENT INCORPORATION

1. 90%, 100% and Bid Submittal PS&E’s: Based on above decisions, incorporate the proposed lighting design for the entire site and associative design impacts into the construction documents packages. This includes review of the fixture specification provided, identification of any fatal flaws, and preparation of construction documents that will detail the removal and replacement of the heads only.

5.1.4 BUILDING PERMIT SUBMITTAL

1. Building Permit Submittal Kick-off Meeting (Optional Service): Facilitate an in-person meeting with you and Building Department staff to the confirm the building permit application requirements and schedule. The goal of the meeting is to confirm the building permit process and requirements. Prepare a meeting summary.

2. Building Permit Submittal: Based on above decisions incorporate additional information required by Building Department into building permit submittal package (Bid submittal PS&E). The package would utilize the bid submittal package with an updated name on the cover sheet, title block and specifications and include additional information as required by the Building Department including structural
calculations for lighting footings. The City is responsible for all application forms and fees associated with the building permit submittal.

3. Building Permit Processing: Based upon the Building Department’s and Parks & Rec’s comments on the above submittal, provide response to comments and revisions to the building permit submittal. We are assuming up to two rounds of comments including review meetings for each round of comments. Additional submittals and/or plans not stated

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above will require additional services. For each round of revisions provide an electronic copy of the planning application to you for delivery to City Building Department.

4. DMA Maps and C.3 Reports (Optional Service): Based on Building Department requirements, develop a drainage management area map, additional C.3 calculations and water quality treatment report. Allow for 2 rounds of comments.

5. Finalize Bid Submittal: Based on approved building permit submit, update package for public bid. Updates include renaming of cover sheet, title block and specifications. Submit one (1) digitally sign pdf copy of bid package to the City for bidding purposes.

6. Encroachment Permit: No additional services provided. If required, it’s assumed the contractor will be required to submit the encroachment permit application and required documents.

5.2.1 CONSTRUCTION MANAGEMENT SERVICES AND ADDITIONAL ARBORIST REVIEWS (OPTIONAL SERVICE)

1.Bidding Phase: CALA will provide the following services during the bidding phase of the project.
a.Requests for Information: Respond to questions during the bid period and issue addenda as necessary.
b.Pre-Bid Meeting: Prepare for and facilitate a pre-bid meeting. Including preparing agenda, facilitating meeting, and preparing meeting summary. c.Bid Analysis: Review bids, provide analysis, and make recommendations to the city.
d.Preconstruction Conference: Conduct pre-construction conference. Including preparing agenda, facilitating meeting, and preparing meeting summary.

2.Construction Phase: CALA will provide the following services during the construction phase of the project. We are assuming 23 combined (multiple staff levels) hours per week for a 7- month duration.
a.Coordination Meetings: Conduct weekly or bi-weekly progress meetings as necessary based upon the construction schedule. Review shall include review of current and look ahead operations, critical path items, submittal logs, etc.

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Including preparing agenda, facilitating meeting, and preparing meeting summary.
b.Site Visits: Conduct weekly site visits to review progress followed by written field reports.
c.Requests for Information: Review and respond to contractor’s requests for information (RFI’s) as related to the contract documents. d.Coordination of Related Work: Coordinate testing and inspection services. e.Submittals: Review and process required submittals and samples. Maintain submittal log.
f.Photo Log: Retain a digital pictorial logbook of construction activities. g.Schedule: Review Contractor’s construction schedule, request updates as appropriate, and track delays or accelerations based on actual Contractor operations.
h. Working Day Statement: Maintain and provide Working Day Statements. i.Change Orders: Review, negotiate and prepare change orders as necessary and review with the city for approval.
j.Payment Requests: Receive and process contractor payment requests and submit to the city for payment.
k.Substantial Completion Review: Upon notification from the contractor that the project is substantially complete, perform and site walk through and provide “punch list” items and follow-up with corrective measures.

3.Post Construction Phase: CALA will provide the following services during the postconstruction phase of the project. We are assuming 4 combined (multiple staff levels) hours per week for a 3-month duration.
a.Final Review: Upon completion of the maintenance period, conduct a final site review with all pertinent parties. Review completion of punch list items. Submit field report with any outstanding issues. Continue reviews until work is deemed complete.
b.Final Payment: Process and recommend final payment request.

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c.Record Drawings: Review record drawings with Contractor. Preparation of final record drawings has been previously included.
d.Close-out Documents: Review and forward all close-out documents.

4.Additional Arborist Construction Reviews: During construction, allow for sixty (60) hours of on-site observations by our arborist during trenching, grading and other construction activities that could affect the existing trees.

3. The following is added to Exhibit B, Payment Terms:

SUMMARY BASIC SERVICES (FEES 5.1.1 to 5.1.4)
Hrs CALA SEC Wilsey Ham TOTAL

5.1.1 Design Development Submittal
Updates (hourly) 35.50 $6,450.00 $ - $ - $6,450.00

5.1.2 PW and Geotech Report
Coordination (hourly) 64.00 $11,180.00 $550.00 $2,172.00 $13,902.00

5.1.3 Construction Documents
Incorporation (hourly) 11.00 $1,812.00 $1,760.00 $ - $3,572.00

5.1.4 Building Permit Submittal
(hourly) 124.00 $19,611.00 $2,970.00 $8,660.00 $31,241.00 Reimbursables $1953.00 $ - $25.00 $1,978.00
TOTAL BASIC SERVICES 234.50 $41,006.00 $5,280.00 $10,857.00 $57,143.00 SUMMARY OPTIONAL SERVICES (FEES 5.1.4.1 AND 5.1.4.4)
Hrs CALA SEC Wilsey Ham TOTAL

5.1.4.1 Building Permit Submittal Kick-off
Meeting 9.00 $1,583.00 $ - $ - $1,583.00

5.1.4.4 DMA Maps and C.3 Reports 2.00 $342.00 $- $9,553.00 $9,895.00 Reimbursables (allowance) $97.00 $ - $ - $97.00
TOTAL BASIC SERVICES 11.00 $2,022.00 $ - $9,553.00 $11,575.00 TOTAL BASIC + OPTIONAL $68,718.00

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SUMMARY OPTIONAL CONSTRUCTION MANAGEMENT SERVICES (FEES 5.2.1) Hrs CALA TOTAL

5.2.1 Construction Management Services and Additional
Arborist Reviews (hourly) 860.00 $152,470.00 $152,470.00 Reimbursables $11,436.00 $11,436.00
TOTAL BASIC SERVICES 860.00 $163,906.00 $163,906.00

4. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, CITY OF SAN MATEO and have executed this Agreement on ___________________.

CITY OF SAN MATEO CONSULTANT
Joanne Magrini
Director, Parks and Recreation
Date Brian Fletcher
Its Authorized Agent
President
If a Corporation, can be either 1)
President or 2) Vice President plus
an additional corporate officer
(i.e., Secretary, Treasurer) who
Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)
Mazarin Vakharia
Assistant City Attorney
Date Date

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 19 Section Name: CONSENT CALENDAR Account Number: 10-2021 File ID: 23-7702 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Finance Department
MEETING DATE: July 17, 2023
SUBJECT:

Bay Meadows Community Facilities District – Special Tax Levy for Fiscal Year 2023-24 RECOMMENDATION:

Adopt a Resolution to authorize levy of special taxes for fiscal year 2023-24 for the Community Facilities District No. 2008- 1 (Bay Meadows).

BACKGROUND:

There are various annual reporting requirements with different reporting dates related to the City of San Mateo Community Facilities District (CFD) No. 2008-1 (Bay Meadows). The requirements include City Council approval of the “Annual Levy of Special Tax” resolution authorizing the levy of special taxes within CFD No. 2008-1. The annual levy is necessary to pay debt service on the outstanding bonds and to pay for certain public services. Approval is due each year prior to the County of San Mateo’s July 31st deadline for the inclusion of such special taxes on the consolidated property tax bills pursuant to Government Code Section 53340 of the Mello-Roos Community Facilities Act of 1982 (the “Act”), or in the case of direct billing, at a different time or manner if necessary to meet its financial obligations.

CFD No. 2008-1 special taxes are for public facilities within the district that encompasses a planned 1,066 residential units (832 units on residential parcels and 234 units on mixed-use parcels), 68 below market-rate rental units, 770,000 square feet of office space, 85,000 square feet of retail space, 31,500 square feet of professional space above ground floor retail, and approximately 135,000 square feet of high school campus and commercial space. The special tax levy is authorized pursuant to Section 53340 of the Government Code and Ordinance No. 2012-1.

BUDGET IMPACT:

The special taxes being levied hereunder are at the same rate or at a lower rate than provided by the Ordinance. The total fiscal year 2023-24 Special Tax Levy for CFD No. 2008-1 is $4,941,384.75.

ENVIRONMENTAL DETERMINATION:

This community facilities special district special tax is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 - CFD No. 2008-1 (Bay Meadows) FY 2023-24 Special Tax Requirement

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CITY OF SAN MATEO

STAFF CONTACT
Rich Lee, Director, Finance
[email protected]
(650) 522-7102

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CITY OF SAN MATEO
RESOLUTION NO. ____ (2023)
APPROVING THE FISCAL YEAR 2023-24 LEVY OF SPECIAL TAXES AND APPROVING AND AUTHORIZING RELATED

ACTIONS AND DOCUMENTS
WHEREAS, the Council (the "City Council") of the City of San Mateo (the "City") conducted proceedings under and pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5 (beginning with Section 53311) of the Government Code of the State of California (the "Act"), to form its Community Facilities District No. 2008-1 (Bay Meadows), City of San Mateo, County of San Mateo, State of California (the "CFD”), to authorize the levy of special taxes (the “CFD Special Taxes”) to finance the acquisition and construction of certain public facilities, the payment of certain governmental development impact fees and the provision of certain services, and to authorize the issuance of debt to finance the facilities and fees, and to establish the appropriations limit for the CFD, all as set forth in the City Council's Resolution No. 85 (2008) (the "Resolution of Formation") and Resolution No. 86 (2008) (the "Resolution Deeming it Necessary to Incur Bonded Indebtedness," and together with the Resolution of Formation, the "Formation Resolutions"), both adopted on August 11, 2008; and WHEREAS, the authorizations contained in the Formation Resolutions were submitted to the landowner qualified elector of the CFD at a special mailed-ballot election on August 11, 2008; and WHEREAS, the landowner qualified elector within the CFD approved the authorizations contained in the Formation Resolutions by a unanimous vote; and
WHEREAS, the City Council commenced proceedings to change the authorizations contained in in the Formation Resolutions (the "2011 Change Proceedings") by adopting its Resolution No. 113 (2011) ("Resolution of Consideration") on October 3, 2011; and
WHEREAS, the Proposed Amendments contained and defined in the Resolution of Consideration were submitted to the landowner qualified elector of the CFD at a special mailed-ballot election on November 21, 2011; and
WHEREAS, the landowner qualified elector within the CFD approved the Proposed Amendments contained in the Resolution of Consideration by a unanimous vote; and WHEREAS, the City Council levies special taxes in the CFD pursuant to Ordinance No. 2012-1, which was adopted by the City Council on January 3, 2012, which requires City Council approval of each fiscal year’s levy of CFD Special Taxes; and
WHEREAS, the Formation Resolutions authorized the issuance of up to $120,000,000 in special tax bonds; and
WHEREAS, the 2011 Change Proceedings reduced this authorization to $92,000,000; and WHEREAS, pursuant to the Act the City issued three series of bonds for the CFD (the “Prior Bonds”):

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(i) $31,800,000 aggregate principal amount of City of San Mateo Community Facilities District No. 2008-1 (Bay Meadows) Special Tax Bonds, Series 2012 (the “2012 Bonds”); and (ii) $26,000,000 aggregate principal amount of City of San Mateo Community Facilities District No. 2008-1 (Bay Meadows) Special Tax Bonds, Series 2013 (the “2013 Bonds”); and (iii) $28,475,000 aggregate principal amount of City of San Mateo Community Facilities District No. 2008-1 (Bay Meadows) Special Tax Bonds, Series 2014 (the "2014 Bonds"); and WHEREAS, as a result of the issuance of the Prior Bonds in the aggregate principal amount of $86,275,000, the remaining authorization for the issuance of special tax bonds for the CFD (not including refunding bonds as defined in the Act) is $5,725,000; and WHEREAS, for the purpose of refunding the Prior Bonds and achieving debt service savings, the City issued on June 30, 2022 its $72,345,000 City of San Mateo Community Facilities District No. 2008-1 (Bay Meadows) Special Tax Refunding Bonds, Series 2022 (the “2022 Refunding Bonds”); and WHEREAS the Amended and Restated Rate and Method of Apportionment for the CFD (the “RMA”) provides that the City may not levy less than 100% of the Assigned Special Tax on Developed Property (as those terms are defined in the RMA) unless the City Council has covenanted that it will not issue any additional bonds for the CFD except refunding bonds; and
WHEREAS, in connection with the issuance of the 2022 Refunding Bonds, City staff worked with the Bay Meadows master developer, Wilson Meany, to confirm that all infrastructure improvements to be financed by the CFD have been made and that no additional CFD bonds will need to be issued in the future, except to refinance the outstanding bonds for savings; and
WHEREAS, the Council adopted City Council's Resolution No. 83 (2022) covenanting not to issue additional bonds for the CFD except refunding bonds, which will allow the City to pass to property owners in the CFD the economic benefit of the refunding of the Prior Bonds; and WHEREAS, staff has prepared the proposed Fiscal Year 2023-24 levy of CFD Special Taxes and recommends that the Council approve the proposed levy;
WHEREAS, the CFD encompasses approximately 800 projected residential units and a significant amount of non-residential square footage in the Bay Meadows project area; and WHEREAS, approval of the special tax roll prior to the County of San Mateo’s July 31st deadline for inclusion of special taxes on consolidated property tax bills is required pursuant to Government Code Section 53340 of the Mello-Roos Community Facilities Act of 1982; and WHEREAS, City of San Mateo Ordinance No. 2012-1 (the “Ordinance”) authorizes the Public Works Director to determine the special tax amount in accordance with the Rate and Method of Apportionment, prepare the annual special tax roll, and present the roll to the City Council for consideration; and

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WHEREAS, the Ordinance requires that the Public Works Director be authorized to send the special tax, special tax roll, and all necessary and appropriate information to the County of San Mateo Auditor to be included in the County secured property tax rolls for collection each fiscal year; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA HEREBY FINDS AND RESOLVES that:

1. This City Council action is not subject to CEQA review because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4)).

2. The City Council finds and determines that the foregoing recitals are true and correct.

3. The City Council hereby approves the proposed Fiscal Year 2023-24 levy, as presented by staff to Council, and authorizes the Public Works Director to effect the levy in accordance with the Act and Ordinance No. 2012-1.

4. The City's officers and staff are hereby authorized and directed, jointly and severally, to do all things and to execute and deliver all documents and contracts they deem necessary or advisable to accomplish the purposes of this Resolution. All such actions previously taken by City officers and staff are hereby ratified, confirmed, and approved.

5. The Controller is hereby authorized to place up to the assessment, charge, or tax on the property tax roll with the following per unit, per square foot, or per acre amounts identified in the table below:

Furthermore, the lowest per parcel assessment is $0.00, and the expected higher per parcel amount will not exceed $500,000. The total Fiscal Year 2023-24 Special Tax Levy for CFD No. 2008-1 is $4,941,384.75.

6. This Resolution shall take effect from and after its date of adoption.

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DTA Page 1
Remaining Fiscal Year 2022-2023 Sources of Funds: $2,909,793.75 Debt Service on 2022 Bonds $2,883,885.06
Prefunded Administrative Expenses $25,908.69
Remaining Fiscal Year 2022-2023 Obligations: ($2,909,793.75) Interest Due September 1, 2023 ($1,874,793.75)
Principal Due September 1, 2023 ($995,000.00)
Anticipated Administrative Expenses ($40,000.00)
Fiscal Year 2022-2023 Surplus / (Draw on Reserve Fund) $0.00 Series 2022 Refunding Bonds ($4,839,837.50)
Interest Due March 1, 2024 ($1,849,918.75)
Interest Due September 1, 2024 ($1,849,918.75)
Principal Due September 1, 2024 ($1,140,000.00)
Administrative Expense Obligations ($40,000.00)
Direct Levy for Payment of Authorized Services ($38,047.25) Levy for Anticipated Special Tax Delinquencies (0.5%) ($23,500.00) Fiscal Year 2023-2024 Special Tax Requirement $4,941,384.75 City of San Mateo
Community Facilities District No. 2008-1 (Bay Meadows)
Fiscal Year 2023-2024 Special Tax Requirement

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2012 2024
Land FY 2011-12 FY 2023-24
Use Residential Floor Maximum Maximum
Class Description Area (square feet) Location Special Tax Special Tax [1] $2
1 Greater than 2,300 NA $5,405.00 $6,854.85
2 2,151 to 2,300 NA $5,288.00 $6,706.46
3 2,001 to 2,150 NA $4,989.00 $6,327.26
4 Residential Property 1,851 to 2,000 NA $4,973.00 $6,306.97 5 Residential Property 1,701 to 1,850 NA $4,917.00 $6,235.94 6 1,551 to 1,700 NA $4,557.00 $5,779.38
7 1,401 to 1,550 NA $4,069.00 $5,160.48
8 Residential Property 1,251 to 1,400 NA $3,701.00 $4,693.76 9 Residential Property 1,101 to 1,250 NA $3,482.00 $4,416.02 10 951 to 1,100 NA $3,158.00 $4,005.11
11 801 to 950 NA $2,572.00 $3,261.92
12 Less than 801 NA $2,332.00 $2,957.54
13 Greater than 1,400 NA $1,344.00 $1,704.52
14 801-1,400 NA $1,344.00 $1,704.52
15 Less Than 801 NA $1,139.00 $1,444.53
16 NA NA $60,000.00 $76,094.51
17 NA NA $1.77 $2.240
18 NA NA $0.52 $0.660
NA NA NA $132,693.00 $168,286.81
2010
Land Units / Maximum * Step 1 * * Step 2 * * Step 2 * FY 2023-24 Percent Use Acreage as FY 2023-24 Special Special Special Special Tax Levy of Class of 5/1/2023 Special Taxes Tax Levy Tax Levy Tax Levy Per Unit/Acre Maximum$2 1 75 $514,113.75 $415,504.15 NA $5,540.06 80.82%
2 38 $254,845.48 $205,964.83 NA $5,420.13 80.82%
3 24 $151,854.24 $122,727.83 NA $5,113.66 80.82%
4 45 $283,813.65 $229,376.76 NA $5,097.26 80.82%
5 61 $380,392.34 $307,431.17 NA $5,039.86 80.82%
6 58 $335,204.04 $270,910.22 NA $4,670.87 80.82%
7 101 $521,208.48 $421,238.07 NA $4,170.67 80.82%
8 121 $567,944.96 $459,010.26 NA $3,793.47 80.82%
9 16 $70,656.32 $57,104.08 NA $3,569.01 80.82%
10 31 $124,158.41 $100,344.20 NA $3,236.91 80.82%
11 21 $68,500.32 $55,361.61 NA $2,636.27 80.82%
12 5 $14,787.70 $11,951.34 NA $2,390.27 80.82%
13 24 $40,908.48 $33,062.03 NA $1,377.58 80.82%
14 25 $42,613.00 $34,439.61 NA $1,377.58 80.82%
15 2 $2,889.06 $2,334.92 NA $1,167.46 80.82%
16 5.306 $403,757.47 $326,314.76 NA $61,499.20 80.82%
17 1,039,952 $2,329,492.48 $1,882,684.10 NA $1.81 80.80% 18 10,545 $6,959.70 $5,624.79 NA $0.53 80.30%
Undev 4.831 $813,019.66 NA $0.00 $0.00 NA
TOTAL NA $6,927,119.54 $4,941,384.75 $0.00 NA NA
Residential Property
Residential Property
Residential Property
Residential Property
Below Market-Rate Units
[1] The Maximum Special Tax is subject to 2% escalation through fiscal year 2060-61.

Fiscal Year 2023-2024 Special Tax Levy
Residential Property
Below Market-Rate Units
Undeveloped Property
Below Market-Rate Units
Apartment Property [2]
Non-Residential Property - Office Floor Area
Non-Residential Property - Retail Floor Area
[2] Pursuant to the Rate and Method, any Assessor’s Parcels or portions of Assessor’s Parcels that would ordinarily be classified as Apartment Property that are created after the first 5.306 Acres of Apartment Property have already been established will be classified as Residential Property with Condominium Units or BMR Units located on them, and each dwelling unit located on such Residential Property will be subject to the same Assigned Special Taxes and Backup Special Tax rates as are assigned to Condominium Units or BMR Units, as applicable.

Residential Property
City of San Mateo
Community Facilities District No. 2008-1 (Bay Meadows)
Fiscal Year 2023-2024 Maximum Special Tax Rates
Residential Property
Residential Property

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CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 20 Section Name: CONSENT CALENDAR Account Number: 10-2031 File ID: 23-7713 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Finance Department
MEETING DATE: July 17, 2023
SUBJECT:

Enterprise Resource Planning System Replacement – Amendment RECOMMENDATION:

Approve Amendment No. 2 to the agreement with Plante & Moran, PLLC for the purpose of a no-cost time extension through June 30, 2024; and authorize the City Manager to execute the Amendment No. 2 in substantially the form presented and issue future no-cost time extensions, if necessary.

BACKGROUND:

The City entered into an agreement with Plante & Moran, PLLC (Plante Moran) on July 24, 2020 to provide professional consultant services related to selection of an enterprise resource planning (ERP) system. The City Council approved Amendment No. 1 on February 22, 2022 to extend the term, modify the scope of services, and increase compensation related to project management and subject matter expertise to support implementation of the Workday ERP. With the extension of Phase II of the ERP implementation, which includes human capital management and payroll, from June 2023 to December 2023, the term of the agreement with Plante Moran is necessary to align the support services with the go- live date and post-go-live support needs.

BUDGET IMPACT:

Amendment of the agreement is solely for extension of the term. As such, there is no additional budget impact.

ENVIRONMENTAL DETERMINATION:

This agreement amendment is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Amendment No. 2

STAFF CONTACT
Rich Lee, Director, Finance
[email protected]
(650) 522-7102

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AMENDMENT NO. 2 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND

PLANTE & MORAN, PLLC FOR

PROFESSIONAL CONSULTANT SERVICES
($201,020 [Original Amount] / $740,000 [Amendment No. 1] / $0 [Amendment No. 2]) WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and Plante & Moran (“Plante Moran”), entered into an Agreement for professional consultant services for financial system replacement support (“Agreement”) on July 24, 2020; and WHEREAS, on February 24, 2022, the City and Plante Moran executed Amendment No. 1 to modify the scope of services, increase compensation, and extend the term of the Agreement until September 30, 2023; and
WHEREAS, City and Plante Moran wish to amend the Agreement effective July 17, 2023 to further extend the term of the Agreement.

NOW, THEREFORE, the parties agree as follows:

1. Section 4 of the Agreement is amended to read:

The services to be performed under this Agreement shall commence on July 21, 2020 and be completed on June 30, 2024.

2. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, CITY OF SAN MATEO and Plante & Moran, PLLC have executed this Amendment No. 2 on ___________________ [insert date of last signature].

CITY OF SAN MATEO CONTRACTOR
Christina Horrisberger
Interim City Manager
Date Mike Riffel
Its Authorized Agent
Partner
If a Corporation, can be either 1)
President or 2) Vice President plus
an additional corporate officer
(i.e., Secretary, Treasurer) who
shall sign below.

Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)
Linh Nguyen
Assistant City Attorney
Date

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 21 Section Name: CONSENT CALENDAR Account Number: 10-2021 File ID: 23-7733 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Finance Department
MEETING DATE: July 17, 2023
SUBJECT:

Investment Advisory Services – Amendment
RECOMMENDATION:

Approve Amendment No. 1 to the agreement with Chandler Asset Management for investment advisory services in an amount not to exceed $465,000 for Fiscal Years 2022-23 through 2024-25; extend the term of the agreement through June 30, 2025; and authorize the City Manager to execute Amendment No. 1 in substantially the form presented.

BACKGROUND:

On February 18, 2020, City Council approved an agreement with Chandler Asset Management (Chandler) for investment advisory services for an initial three-year term until March 31, 2023, with an option to extend the agreement for an additional two-year term to March 31, 2025. During the time that the agreement was executed, the City’s Finance Director/City Treasurer managed approximately 78% of the City's cash and investment portfolio, which averaged $205 million during that past year, and included investment pools through San Mateo County, the State of California's Local Agency Investment Fund (LAIF), and California Asset Management Program (CAMP). At this time, the annual cost to the City for investment advisory fees was estimated to be approximately $55,000 per year.

Since that time, the City has shifted management of the non-pooled investments to Chandler to leverage their industry expertise, which empowered Treasury Division staff to focus on cash flow, cash receipts, and other service demands. As a result of the shift in business practice, Chandler has more assets under management, and consequently increased fees for investment advisory services. City staff has been satisfied with Chandler’s services and recommends continuing this practice. As such, Amendment No. 1 establishes a not-to-exceed amount by fiscal year to request agreement budget authority for the remainder of the term, and based on Chandler's exceptional performance, extending the term through June 30, 2025 to align the term with the City’s fiscal year.

BUDGET IMPACT:

No additional budget appropriations are required. The Finance Department anticipates that the cost of services will be offset by investment returns for the portion of assets under the firm's management.

ENVIRONMENTAL DETERMINATION:

NOTICE PROVIDED
All meeting noticing requirements were met.

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4 3

ATTACHMENTS
Att 1 - Amendment No. 1

STAFF CONTACT
Rich Lee, Director, Finance
[email protected]
(650) 522-7102

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AMENDMENT NO. 1 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND

CHANDLER ASSET MANAGEMENT FOR

INVESTMENT ADVISORY SERVICES
WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and Chandler Asset Management (“Consultant”), entered into an Agreement for investment advisory services (“Agreement”) on February 18, 2020; and
WHEREAS, City and Consultant wish to enter into Amendment No. 1 to the Agreement effective July 17, 2023 to establish a not-to-exceed amount for fiscal years 2022-23, 2023-24, and 2024-25 of this Agreement and extend the term to June 30, 2025.

NOW, THEREFORE, the parties agree as follows:

1. Section 4, “Term,” of the Agreement is amended to read:

The services to be performed under this Agreement shall commence on April 1, 2020 and be completed on June 30, 2025.

2. Section 5, “Payment,” of the Agreement is amended to read:

Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performances of the services set forth in Exhibit A, CITY agrees to pay CONSULTANT fees pursuant to rates stated in Exhibit B of this Agreement, attached and incorporated by reference.

The total amount of the Agreement by fiscal year shall not exceed the amounts as follows:
a. FY 2022-23: $125,000
b. FY 2023-24: $165,000
c. FY 2024-25: $175,000

3. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, CITY OF SAN MATEO and CINTAS have executed this Amendment No. 1 on ___________________.

CITY OF SAN MATEO CONSULTANT
Christina Horrisberger
Interim City Manager
Date Nicole Dragoo
Its Authorized Agent
Chief Executive Officer
If a Corporation, can be either 1)
President or 2) Vice President plus
an additional corporate officer
(i.e., Secretary, Treasurer) who
shall sign below.

Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)
Linh Nguyen
Assistant City Attorney
Date

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 22 Section Name: CONSENT CALENDAR Account Number: 10-4679 File ID: 23-7673 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Public Works Department
MEETING DATE: July 17, 2023
SUBJECT:

Intent to Initiate Proposition 218 Process for Stormwater Fee; Balloting Procedures and Fee Report – Approval RECOMMENDATION:

Adopt a Resolution to initiate a proceeding for the approval of a stormwater fee; adopt a Resolution approving ballot procedures; and approve the Stormwater Fee Report.

BACKGROUND:

The City operates and maintains a stormwater system, which provides vital services to safeguard neighborhoods from flooding and protects local waterways from pollution. The system consists of complex infrastructure including surface drains, underground pipes and conduits, pump stations, creeks and channels, and the Marina Lagoon, which captures approximately three-fourths of the City’s drainage before it enters San Francisco Bay.

The City’s stormwater system requires long-overdue improvements to address flood control limitations and aging infrastructure. Unlike the sanitary sewer system, the stormwater system does not have a dedicated funding source and relies on the General Fund. In 2019, the Public Works Department began working with SCI Consulting Group (SCI) on a financial analysis of the City’s stormwater activities to understand the funding needs and options for revenue generation.

Staff presented an overview of stormwater activities to the Sustainability and Infrastructure Commission (SIC) in December 2020 and continued to work with SCI on the funding analysis. At the February 2021 SIC meeting, staff presented a draft Stormwater Funding Analysis Report. Along with feedback from the SIC, the Stormwater Funding Analysis Report was presented to the City Council on May 17, 2021. Council directed staff to proceed with the next steps towards implementing a potential stormwater fee.

SCI’s scope of work included tasks for public opinion surveys, development of a fee report, public outreach, and assistance with a potential mailed balloting effort pursuant to Proposition 218. Through a public opinion survey conducted earlier in 2023, two fee rates were tested: $8 and $19/month (for an average single-family home) to assess the community’s willingness to pay. The $19/month fee would generate sufficient revenue to fully fund the stormwater needs, while the $8/month fee would provide partial funding. The surveys indicated ballot support for a new stormwater fee at the rate of $8 per month for an average single-family home, which would generate $4 million annually.

The public support at the $8/month rate is not adequate to create a fully funded, $9 million-per-year enterprise. However, if the current stormwater funding of approximately $3.2 million that is provided through other City sources remains in place, the net stormwater need would be $5.8 million ($9 million - $3.2 million). While the $4 million potential revenue falls short of the full amount, it would fund almost 70% of the shortfall. Staff presented the survey results to Council on June 5, 2023 and received direction to initiate the ballot process with the $8/month fee.

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Stormwater Fee Report
A fee report is necessary to meet Proposition 218 requirements and must be based on the final stormwater fee rate proposed in the mailed ballot proceeding. The Stormwater Fee Report (Attachment 1) completed by SCI updates the previous funding analysis work and serves as the basis for the Proposition 218 Property Related Fee Balloting. The revenues required to fund the proposed stormwater utility, including baseline Operations and Maintenance, additional operating needs, and annual capital projects are approximately $9 million.

Based on the overall stormwater needs and community priorities and support levels, it is recommended that a FY 23-24 revenue stream of $4 million be used as a basis of the proposed rate structure with a $8/month fee. The Stormwater Fee Report illustrates that although the revenue falls short of the fully self-funded enterprise goal of $9 million, it can accomplish many of the most important goals when combined with the existing funding structure of approximately $3.2 million. This revenue requirement has the following advantages:
•Funding for additional Operations and Maintenance work •Funding of the for critical infrastructure strengthening and improvements •Funding of Marina Lagoon dredging
Rate Structure
The goal of implementing the stormwater rate is two-fold. First, to address the operating service level, capital improvement, and regulatory needs as described in the Stormwater Fee Report; and second, to ensure that the fee charged continues to reflect how properties within the City interact with the stormwater infrastructure. The proposed rate structure uses surveys conducted on property types, sizes and characteristics to develop a basic unit of measure, the single-family equivalent or “SFE” unit. This basic unit of measure is then used to calculate the units of measure for all types of land uses.

The annual revenue requirement for the utility is divided by the total SFEs to calculate the per- year and per-month cost for each SFE. The per-month, per SFE cost is then multiplied by the SFEs per parcel or per acre, for each land use category, to determine the stormwater rate for that parcel. The proposed rates included in the Stormwater Fee Report are summarized below.

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Table 1 – Stormwater Fee Schedule
Rate Credits: Low Impact Development
The City’s Stormwater National Pollutant Discharge Elimination System permit requires that certain properties be designed to capture stormwater onsite, reducing runoff and pollutants from entering the stormwater system. This type of design, also known as low impact development (LID), reduces a parcel’s stormwater runoff, which in turn reduces the interaction of that parcel with the stormwater infrastructure. As part of the Stormwater Fee Report, parcels that meet the strict criteria for LID, would receive a 25% credit of their stormwater fee.

Consumer Price Index-U (CPI-U), or Annual Cost Banking
Under state law, rate structures may be developed with annual increases when tied to CPI, or other price indexes. Staff has confirmed this following discussion at the prior study session. Part of the recommendation from SCI includes the concept of CPI “banking.” The stormwater fee would be subject to an annual adjustment tied to the CPI-U for the San Francisco Bay Area in December each year. The maximum adjustment would not exceed 3% in any year. However, if CPI-U banking was utilized, for the years that the CPI-U exceeds 3%, the amount over would be “banked” as unused CPI and could be used to offset occasions when the annual CPI-U increase was below 3%. As an example, if the CPI-U is 4% one year, the increase for the rate would only be the maximum allowed of 3%. The 1% over the maximum would be “banked” and in a future year where the CPI-U was only 2% the City could use the “banked” 1% and increase the rate the maximum of 3% if the fund update showed the need for the additional 1% in revenue.

Compliance with Proposition 218
In 1996, California Voters passed Proposition 218, also the “Right to Vote on Taxes” Act. Proposition 218 requires that the City mail a written notice of any proposed stormwater fee increases to affected property owners at least 45 days prior to a scheduled public hearing, during which time, property owners may submit written protests opposing proposed rate increases. At the public hearing, currently scheduled for October 16, 2023, Council will consider all protests related to the proposed rates. If a majority of parcel owners protest the rate increases, the new fee cannot be approved.

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Additionally, Proposition 218 requires that jurisdictions obtain voter approval (by a majority vote) for new or increased property related fees, unless those fees are for sewer, water or refuse collection services. Fees associated with sewer, water, and refuse collection services can be enacted through a majority protest process. However, stormwater system fees continue to be treated differently than sewer, water, and refuse fees, requiring a majority approval vote from property owners prior to the implementation of fees, and this is unlikely to change within the timeframe that implementation of a City-wide stormwater fee is needed.

Next Steps
After receiving approval from Council, the Proposition 218 Notice will be distributed, initiating the rate setting process for the coming fiscal years. In order to provide a minimum 45-day review period, the required Proposition 218 public hearing is tentatively scheduled for the October 16, 2023 Council regular meeting, at which time the Council will determine whether a majority of parcel owners protest the proposed rate increases. A summary of the next steps is below:

1. Return to City Council in mid-October for a Public Hearing, and if a majority protest is not received, potential authorization to initiate a mail balloting process pursuant to Proposition 218.

2. Mail the ballots in Late October/Early November 2023.

3. Return to Council in January 2024 with results.

If the mailed ballot proceeding is successful, the final fee approval would be in January 2024 with fees levied on tax bills in fall 2024.

BUDGET IMPACT:

If the proposed rates are approved, the annual stormwater fee revenues will be approximately $4,000,000 in the first year.

ENVIRONMENTAL DETERMINATION:

This action is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution Initiating Fee Process
Att 2 – Proposed Resolution Adopting Prop 218 Balloting Procedures Att 3 – Stormwater Fee Report

STAFF CONTACT
Azalea Mitch, Director of Public Works
[email protected]
650-522-7303

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2 CITY OF SAN MATEO
RESOLUTION NO. ____ (2023)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MATEO

DECLARING ITS INTENTION TO INITIATE A PROCEEDING TO OBTAIN APPROVAL OF THE CITY’S STORMWATER FEE, A PROPERTY-RELATED FEE CONFORMING TO ARTICLE XIII D, SECTION 6 OF THE STATE CONSTITUTION WHEREAS, the City of San Mateo (“City”) is initiating the Stormwater Fee Initiative; and WHEREAS, the City maintains and manages a municipal storm drainage system that includes capital improvements, maintenance and operations, and activities to ensure compliance with all state and federal regulations associated with the National Pollutant Discharge Elimination System (“NPDES”); and
WHEREAS, the City’s comprehensive storm drainage system includes man-made drainage elements such as curbs and gutters, ditches, culverts, pipelines, manholes, catch basins (inlets), and outfall structures in addition to the City’s natural creek system and Marina Lagoon that serves as an integral part of the system (“Facilities”); and
WHEREAS, the City, through its storm drainage system, provides stormwater services (“Services”) that include, but are not limited to, collecting, conveying, and managing stormwater runoff from properties within the City; and
WHEREAS, the City does not have adequate funding to pay for all of its storm drainage system needs, and in order to finance these needs the City would need to enact the Stormwater Fee in compliance with Article XIII D of the Constitution, which would require a ballot proceeding; and
WHEREAS, the City Council authorized SCI Consulting Group to perform a rate study and draft a Stormwater Fee Report (“Fee Report”) to determine the amount of the fees on various parcels of land that would, in compliance with Article XIII D of the Constitution, finance certain capital improvements, operations and maintenance needs and NPDES clean water compliance needs.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO HEREBY RESOLVES AS FOLLOWS:

Section 1. Intention to Seek Approval of a Property Related Fee. The City intends to seek property owner approval of a proposed property related fee to fund the Services (“Stormwater Fee”), pursuant to Article XIII D, Section 6 of the California Constitution.

Section 2. Fee Study. SCI Consulting Group has prepared and submitted to the City a Fee Report concerning the proposed Stormwater Fee. The Fee Study report has been made, filed with the City, and duly considered by the City Council, and is hereby deemed sufficient and approved. The Fee Study shall stand as the Fee Study for all subsequent proceedings under and pursuant to this Resolution. Reference is hereby made to the Fee Study for the following: (a) a description of the

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2 Services; (b) the identification of the parcels upon which the stormwater Fee is proposed; (c) the proportional cost of the Services attributable to each parcel; (d) the amount of the Fee proposed for each parcel; and (e) the basis upon which the amount of the proposed Fee was calculated.

Section 3. Total Amount of Stormwater Fee. The amount of the proposed Stormwater Fee, if approved, that would be collected in Fiscal Year 2024-25 would be approximately $4.0 million.

Section 4. Stormwater Capital Improvements and Services. The proposed Stormwater Fee will provide funds for capital improvements, operations, and maintenance activities as outlined in the Fee Report, as well as activities to help ensure City compliance with all state and federal clean water requirements under the National Pollutant Discharge Elimination System permits issued by the San Francisco Bay Regional Water Quality Control Board.

Section 5. Public Hearing. A noticed public hearing shall be held before this Council at the City Council chambers at 330 West 20th Avenue, San Mateo, CA 94403, and is tentatively planned on October 16, 2023, at 7:00 p.m. for the purpose of conducting a hearing and to consider all protests of property owners regarding the proposed Stormwater Fee and this Council’s determination whether the public interest, convenience and necessity require the Facilities and Services. The date set forth above for the public hearing may be delayed without returning for additional approval by the Council, provided that such date is not less that forty-five (45) days after the mailing of the notice required and described in Section 6 below.

Section 6. Notice of Public Hearing. The City Clerk is hereby directed to cause a notice of the hearing ordered hereof (“Notice”) to be given in accordance with law by mailing, postage prepaid in the United States mail, and such Notice shall be deemed to have been given when so deposited in the mail. The Notice shall be mailed to all record owners, who shall be those persons whose names and addresses appear on the last equalized secured property tax assessment roll for the County of San Mateo, or in the case of any public entity, the representative of such public entity at the address thereof known to the City Clerk or SCI Consulting Group. The Notice shall be mailed not less than forty-five (45) days before the date of the public hearing.

Section 7. Majority Protest. If written protests against the proposed Stormwater Fee are presented to the Council by a majority of owners of the identified parcels before the end of the public hearing, the Fee shall not be imposed. Otherwise, this Council may authorize the City to proceed with a property owner ballot proceeding.

Section 8. Description of the Proposed Stormwater Fee. Information regarding the Stormwater Fee, including but not limited to the amount of the Fee proposed to be imposed upon each parcel, the basis upon which the amount of the proposed Fee was calculated, the reason for the Fee, and other elements of the Fee shall be described in the Fee Report, Notice of Public Hearing, Ballot Guide and/or Ballot.

Section 9. Fiscal Controls. All revenues received from the proposed Stormwater Fee shall be spent only to fund the Facilities and Services. Stormwater Fee revenues received will be deposited into a separate account or fund.

Section 10. Cost-of-Living Adjustment Mechanism. If approved by property owners, the Stormwater Fee shall be imposed annually. The maximum rate of the Stormwater Fee may be

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2 adjusted in future years by an amount equal to the annual change in the San Francisco-Oakland- Hayward Consumer Price Index (“CPI”) for All Urban Consumers, not to exceed 3% (three percent) per year without a further vote or balloting process, and any excess CPI may be “banked” to be used in future years when the CPI is less than 3%.

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CITY OF SAN MATEO
RESOLUTION NO. ___ (2023)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MATEO

ADOPTING BALLOT PROCEDURES FOR A PROPOSED STORMWATER FEE WHEREAS, Proposition 218 was adopted on November 6, 1996, adding Articles XIII C and XIII D to the California Constitution; and
WHEREAS, Article XIII D of the California Constitution imposes certain procedural and substantive requirements relating to property-related fees; and WHEREAS, barring a protest by a majority of affected property owners, the City of San Mateo (“City”) intends to conduct a ballot proceeding to obtain approval of a proposed property- related fee, called the “Stormwater Fee” consistent with the procedures established in Article XIII D of the California Constitution. If approved, the Stormwater Fee would raise revenue to pay for services provided by the City that are necessary to repair, replace, operate and maintain pipes and other infrastructure to prevent system failure and sinkholes, protect clean drinking water, comply with mandated clean water standards, and protect the City against future flooding; and WHEREAS, the City is initiating the process necessary to adopt the Stormwater Fee.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Mateo as follows:

SECTION 1. Statement of Legislative Intent. In adopting this resolution, it is the Council’s intent to adopt property-related fee ballot proceedings for adoption of a proposed Stormwater Fee that are consistent and in compliance with Article XIII D of the California Constitution.

SECTION 2. Definition of Property-Related Fee. Article XIII D, section 2(e), of the California Constitution defines “fee” as “any levy other than an ad valorem tax, a special tax, or an assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership, including a user, or charge for a property related service.” SECTION 3. Property-Related Fee Ballot Proceeding. Article XIII D, section 6(c), of the California Constitution states “[a]n agency may adopt procedures similar to those for increases in assessments in the conduct of elections” for a property-related fee. The following procedures shall be used to conduct a ballot proceeding to seek property owner approval of the proposed Stormwater Fee:

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A.Providing Notice and Receiving and Tabulating Written Protests: The City shall follow the procedures for providing notice and receiving and tabulating written protests pursuant to California Constitution Article XIII D, Section 6(a), and all applicable laws.

B.Property-Related Fee Ballots: The following guidelines shall apply to the property-related fee ballots:

1. The record owner(s) of each parcel to be subject to the Stormwater Fee shall be determined from the last equalized property tax roll.

2. The ballot shall be designed in such a way that, once sealed, its contents are concealed.

3. The ballot and/or ballot guide provided by this section shall contain the following information:
a. The total amount to be charged to parcels City-wide; b. The amount to be charged to the owner’s particular parcel(s); c. The duration of Fee payments;
d. The reason for the proposed Fee;
e. The basis upon which the amount of the proposed Fee was calculated; f. A summary of the procedures for the completion, return and tabulation of the ballots; g. A statement that the failure to receive a majority of ballots in support of the proposed Fee will result in the Fee not being imposed;
h. On the face of the envelope in which the notice of election and ballot are mailed, there shall appear in substantially the following form in no smaller than 16-point bold type:
“OFFICIAL BALLOT ENCLOSED”; and
i. The ballot shall include the City’s address for return of the ballot, the date and location where the ballots will be tabulated, and a place where the person returning it may indicate his or her name, a reasonable identification of the parcel, and his or her support or opposition to the proposed Fee.

4. Failure of any person to receive a ballot(s) shall not invalidate the proceedings.

5. All ballots must be returned either by mail or by hand delivery not later than the date for return of ballots stated on the ballot described in this section. Mailed ballots must be returned to the City Clerk at the address shown on the ballot and pre-printed on the ballot return envelope. Hand delivered ballots must be returned to the City Clerk, at 330 West 20th Avenue, San Mateo, CA 94403.

6. Each ballot must be signed under penalty of perjury.

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7. Only one vote will be counted per parcel. If more than one vote per parcel is submitted, then only the ballot with the most recent date will be counted and any previous votes submitted for the same parcel will not be accepted or counted. If more than one vote per parcel is submitted and the ballots for that parcel are not dated, the replacement ballot will be counted and any other votes for the same parcel will not be accepted or counted.

8. The City will only accept official ballots issued by the City.

9. If a Stormwater Fee ballot is lost, withdrawn, destroyed or never received, the City will mail or otherwise provide a replacement ballot to the owner upon receipt of a request delivered to the City. The replacement ballot will be marked to identify it as a replacement ballot. Any request for a replacement ballot to be mailed to another location must include evidence, satisfactory to the City, of the identity of the person requesting the ballot. The same procedure applies to replacement ballots which are lost, withdrawn, destroyed, or never received.

10. If a Stormwater Fee ballot is returned by the United States Post Office as undeliverable, the City may mail a redelivered ballot to the current property owner, if updated ownership and/or owner mailing address can be determined. The redelivered ballot will be marked to identify it as a replacement ballot.

11. A property-related fee ballot is a disclosable “public record” as that phrase is defined by Government Code section 7920.530 during and after tabulation of the ballots.

12. To complete a Stormwater Fee ballot, the owner of the parcel or his or her authorized representative must (1) mark the appropriate box supporting or opposing the proposed Stormwater Fee, and (2) sign, under penalty of perjury, the statement on the ballot that the person completing the ballot is the owner of the parcel or the owner's authorized representative. Only one box may be stamped or marked on each ballot. All substantially incomplete or improperly marked ballots shall be disqualified from the tabulation. The Tabulator will retain all such invalid ballots.

13. After returning a Stormwater Fee ballot to the City Clerk, the person who signed the ballot may withdraw the ballot by submitting a written statement to the City directing the City to withdraw the ballot. Such statement must be received by the City prior to the close of the balloting period. When ballots for the Stormwater Fee are tabulated, the City Clerk will segregate withdrawn ballots from all other returned ballots. The City will retain all withdrawn ballots and will indicate on the face of such withdrawn ballots that they have been withdrawn.

14. In order to change the contents of a ballot that has been submitted, the person who has signed that ballot may (1) request that such ballot be withdrawn, (2) request that a replacement ballot be issued, and (3) return the replacement ballot fully completed. Each of these steps must be completed according to the procedures set forth above.

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B.Tabulating Ballots. The following guidelines shall apply to tabulating Stormwater Fee ballots:

1. Stormwater Fee ballots shall remain sealed until tabulation commences after the conclusion of the balloting period.

2. The ballots shall be tabulated in a location accessible to the public.

3. The City Clerk shall oversee the tabulation of the Stormwater Fee ballots, and may be assisted by technical staff from a third party. The City Clerk shall follow the rules and procedures of the laws of the State of California, this resolution and any other rules and procedures of the Council or the City. All ballots shall be accepted as valid and shall be counted except those in the following categories:
a. A photocopy of a ballot, a letter or other form of a ballot that is not an official ballot issued by the City or on behalf of the City;
b. An unsigned ballot, or ballot signed by an unauthorized individual; c. A ballot which lacks an identifiable mark in the box for a “yes” or “no” vote or with more than one box marked;
d. A ballot which appears tampered with or otherwise invalid based upon its appearance or method of delivery or other circumstances; e. A ballot for which the parcel number is damaged or obstructed, unless the parcel number or property ownership information is legible and allows the Tabulator to clearly determine the property(s) identified on the ballot; f. A ballot received by the City Clerk after the close of the balloting time period; and g. A ballot which has been withdrawn, or a ballot for a parcel for which a later (or replacement) ballot has been counted.

4. The City Clerk’s decision shall be final and may not be appealed to the City.

5. In the event of a dispute regarding whether the signer of a ballot is the owner of the parcel to which the ballot applies, the City will make such determination from the official County Assessor records and any evidence of ownership submitted to the City prior to the conclusion of the balloting period. The City will be under no duty to obtain or consider any other evidence as to ownership of property and its determination of ownership will be final and conclusive.

6. In the event of a dispute regarding whether the signer of a ballot is an authorized representative of the owner of the parcel, the City may rely on the statement on the ballot signed under penalty of perjury that the person completing the ballot is the owner's authorized representative, and any evidence submitted to the City prior to the conclusion of the balloting period. The City will be under no duty to obtain or consider any other

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evidence as to whether the signer of the ballot is an authorized representative of the owner and its determination will be final and conclusive.

7. A property owner who has submitted a Stormwater Fee ballot may withdraw the ballot and submit a new or changed ballot up until the conclusion of the balloting period.

8. A property owner’s failure to receive a Stormwater Fee ballot shall not invalidate the proceedings conducted under this section and Article XIII D, Section 6 of the California Constitution.

9. The City shall retain all Stormwater Fee ballots for a period of two (2) years from the date of the close of the balloting period.

10. The period of time in which ballots may be submitted (balloting period) shall end at 5:00 p.m. on the closing date of the balloting. All Stormwater Fee ballots must be received by this date and time to be tabulated.

11. After the conclusion of the balloting period, the Tabulator shall tabulate the ballots at the direction of the City Council.

12. The ballot tabulation may be continued to a different time or different location accessible to the public, provided that the time and location are announced at the location at which the tabulation commenced and posted by the City in a location accessible to the public. The City Clerk may use technological methods to tabulate the ballots, including, but not limited to, punch card or optically readable (bar-coded) ballots.

13. Each ballot shall count for as many votes as there are parcels with a fee greater than zero listed on that ballot. If, according to the final tabulation of the ballots, votes submitted against the Stormwater Fee exceed the votes submitted in favor of the Stormwater Fee, the City Council shall not impose the Stormwater Fee.

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2023

City of San Mateo
Stormwater Fee Report
July 2023
Final Report

4745 Mangels Boulevard
Fairfield, California 94534
707.430.4300
www.sci-cg.com

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Stormwater Fee Report
Final Report, July 2023
Page ii

City of San Mateo - Acknowledgements
City Council
Amourence Lee, Mayor
Lisa Diaz Nash, Deputy Mayor
Adam Loraine, Council Member
Rob Newsom Jr., Council Member
Rich Hedges, Council Member
Senior Staff
Drew Corbett, City Manager
Azalea Mitch, P.E., Director of Public Works
Consultant Team (SCI Consulting Group & LWA)
Edric Kwan, P.E., Vice President/Senior Engineer (SCI)
Jerry Bradshaw, P.E., Senior Engineer (SCI)
Chris Coulter, Senior Consultant/Project Manager (SCI)
Karen Ashby, Vice President (LWA)

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Stormwater Fee Report
Final Report, July 2023
Page iii

Table of Contents
Introduction ................................................................................................................. 1 Background ................................................................................................................................ 1 Legal Requirements of Property-Related Fees .......................................................................... 2 Financial Needs & Revenue Requirements ................................................................... 4 Summary of Financial Needs ..................................................................................................... 7 Annual Revenue Requirement .................................................................................................. 8 Rate Structure Analysis .............................................................................................. 12 Single-Family Residential Parcels as Benchmark ..................................................................... 12 Non-Residential Parcels ........................................................................................................... 14 Rate Credits ............................................................................................................................. 16 Summary of SFEs and Revenues by Rate Category ................................................................. 17 Stormwater Fee Calculation .................................................................................................... 18 Billing Methodologies .............................................................................................................. 19 Annual Cost Indexing ............................................................................................................... 20 Management and Use of Stormwater Funds .......................................................................... 20 Appendices ................................................................................................................ 21 Appendix A – PDP Rate Credit Basis ........................................................................................ 22 Appendix B – Stormwater Rates in Other Cities ...................................................................... 26

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Stormwater Fee Report
Final Report, July 2023
Page iv

List of Tables
Table 1 - Total Stormwater Program Costs ...................................................................................... 6 Table 2 –Capital Improvement Program .......................................................................................... 7 Table 3 – Estimated Revenue Needs ............................................................................................... 8 Table 4 – Needs Summary and Financial Scenarios ......................................................................... 9 Table 5 - SFE Summary for Residential Parcels .............................................................................. 13 Table 6 - SFE Summary for Non-Residential Parcels ...................................................................... 14 Table 7 - Allocation of Revenue by Category ................................................................................. 18 Table 8 - Stormwater Fee Schedule ............................................................................................... 19 Table 9 – Recent Stormwater Fee Ballot Measures & Outcomes .................................................. 26 Table 10 – Samples of Stormwater Rates Around the State ......................................................... 27

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Stormwater Fee Report
Final Report, July 2023

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Introduction
Background
Stormwater Funding Background
The City of San Mateo, through its Public Works Department, operates and maintains various stormwater and storm drain facilities and performs activities necessary to prevent flooding, preserve surface water quality, enhance recreation, and ensure compliance with all legal requirements. Facilities include surface water features such as creeks, channels, and Marina Lagoon, underground stormwater conveyance and pumping systems, and trash capture devices.

Necessary activities include operations, maintenance, capital improvement master planning, infrastructure and green infrastructure construction, compliance with the Municipa l Regional Stormwater Permit, and overall system management and administration.

Through the years of the City’s growth and up to the early 1990s, the City’s storm water system was primarily viewed as a drainage system that collected rainwater and conveyed i t away from developed areas. However, beginning in the early 1990s the City was required to comply with newly-enacted environmental laws that have evolved over the past three decades into a comprehensive set of regulations. These regulations, embodied by the Municipal Regional Stormwater Permit, have significantly changed how the City and private property owners approach land use decisions. This new paradigm has placed stormwater management at the leading edge of land use practices – on par with other community priorities such as transportation, housing, and major utility services. The result is that many municipalities across the state and nation are now considering storm drainage as a major utility.

As the scope of stormwater management has grown, so, too, have the costs of these activities.

Stormwater management has historically been funded through the City’s General Fund – unlike the City’s other utilities (water, wastewater and garbage) that all rely on separate, dedicated user fees to fund necessary activities. As the cost of stormwater management grows, it places greater stress on the General Fund where it must compete with a wide range of other priorities such as public safety and community services.

Project Background
On July 1, 2019, the City i ssued a Request for Proposals for a Storm System Activities Funding Analysis (“Analysis”). SCI Consulting Group (“SCI”) was selected and awarded a professional services agreement by City Council on October 19, 2019 to develop the Analysis consisting of three tasks: 1) evaluate projected financial needs; 2) evaluate potential funding sources; and 3) develop revenue options and recommendations.

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At the May 17, 2021 Council study session, staff presented an overview of the Analysis, which recommended the devel opment of a storm drain utility fee to fund the activities needed to operate, maintain, and improve the system. On August 16, 2021, SCI’s agreement was amended with the additional tasks: 4) conduct statistically valid community polling; 5) prepare a Proposition 218-compliant property-related fee engineering and nexus/justification report (“Fee Report”); 6) implement a Proposition 218 -compliant fee ballot measure process ; and 7) assist with public information and educational outreach strategies. On March 20 , 2023, SCI’s agreement was amended with the additional task: 8) conduct statistically valid community polling.

Legal Requirements of Property -Related Fees
Property-related fees are subject to the requirements of Articles XIIIC and D of the State Constitution, which were approved by voters in 1996 through Proposition 218, as well as the Proposition 218 Omnibus Implementation Act (Government Code Sections 53750 – 53758).

Any property-related fee must comply with the requirements of Article XIIID, Section 6. These include the following:
 Revenues derived from the fee shall not exceed the funds required to provide the property-related service.
 Revenues derived from the fee shall not be used for any purpose other than that for which the fee was imposed.
 The amount of a fee upon any parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel.  No fee may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. Fees based on potential or future use of service are not permitted. Standby charges, whether characterized as charges or assessments, shall be classified as assessments and shall not be imposed without compliance with the assessment section of the code.  No fee may be imposed for general governmental services including, but not limited to, police, fire, ambulance or library services where the service is available to the public at large in substantially the same manner as it is to the property owners.

The procedural requirements of Proposition 218 require that new or increased property -related fees submit to the following two-step process: 1) a 45-day public protest period culminating in a public hearing, and 2) a ballot proceeding whereby it must be approved by a 50% simple majority of property owners (or a two -thirds supermajority of registered voters) voting before new or increased fees could be authorized. However, fees for water, sewer and refuse collectio n are exempt from the second step.

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In the years following the passage of Proposition 218, there was uncertainty whether stormwater fees qualified as a type of sewer fee and therefore were not subject to the ballot proceeding requirement. The California Sixth Appellate District Court clarified the question in a 2002 ruling 1 that found stormwater fees did not qualify as a type of sewer fee, and new or increased fees must be approved through a ballot proceeding.

This voter approval requirement creates a significant barrier for municipalities to set stormwater fees. As a result, municipalities typically look for other, non-balloted funding options to assist in the funding for stormwater activities.

Despite these barriers, a property-related fee is the most common type of dedicated, sustainable funding source used by stormwater utilities throughout the State (indeed, throughout the Country). Other balloted mechanisms typically require a higher approval threshold (i.e., two - thirds majority). Non -balloted funding mechanisms are worth pursuing but are typically considered as supplement funding sources since they can rarely generate the level of revenue required to support the enterprise.

1 Howard Jarvis Taxpayers Association v. City of Salinas, No. H022665.Sixth Dist. June 3, 2002.

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Financial Needs & Revenue Requirements
As part of the Funding Analysis task, the SCI team conducted an analysis of the City’s Stormwater and drainage needs . A report titled “ Stormwater Funding Analysis ” was presented to the City Council on May 17, 2021 and is referenced herein. This analysis reviewed the City’s stormwater services and related financial accounts and presented options for funding the City’s resources required to conduct all necessary and beneficial stormwater activities.

This Fee Report is intended to update the previous Funding Analysis work and serve as the Fee Study and basis for a potential Proposition 218 Property Related Fee Balloting. For the purpose of conducting this study, the SCI Team created a proposed stormwater utility that would fund the City’s stormwater activities. The r evenues required to fund the proposed stormwater utility are based on the previous Funding Analysis work and comprise all of the City’s stormwater system activities and needs identified to date.

This comprehensive stormwater ut ility included basic drainage and flood control aspects of the stormwater program. In addition, the City is also required to comply with state and federal clean water regulations in accordance with the National Pollution Discharge Elimination System (“NPDES”); a framework of laws and regulations governed by the federal Clean Water Act. In the San Francisco Bay region, these regulations are embodied in the Municipal Regional Permit (“MRP”) which is issued to 76 cities on a five-year cycle. Those cost elements are also included in the proposed stormwater utility.

For purposes of this Report, those costs and needs were divided into three elements: Operations and maintenance ("O&M"), additional operating needs, and capital projects (“CIP”). These costs were then used to develop a 30-year forecasting tool, or model, that enabled the Team to create various cost/revenue scenarios and perform various analyses.

The recommended revenue requirement of $4 million described below was based on a 30-year model that produced various scenarios for expenditures among the three cost elements, allowing the City to implement stormwater system projects based on a new fee revenue source of $4 million in the first year.

Storm Water Operations and Maintenance Needs
This section a ddresses the O&M needs as well as projected additional operating needs. That includes the eight baseline budget elements and the additional needs identified as part of Funding Analysis task work and updated for Fiscal Year 2023-24 (“FY 24"), as shown in Table 1.

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The first step was to forecast costs for the current level of effort, or baseline costs. The total revenue required for baseline operating costs of the stormwater system was estimated to be $3.2 million for FY 22. Costs for the succeeding fiscal years have been increased by a factor of 3% annually to account for inflation , resulting in baseline operating costs of approximately $3.2 million for FY 24. These cost trends are then escalated at 3% per year for future years.

The second step was to incorporate the City’s true costs of compliance with the MRP. The MRP compliance evaluation estimated the costs at $841,000 for FY 22 and this figure has been increased to $892,000 for FY 24. It should be noted that these costs are included in the $3. 2 million estimated for all operating costs; they are not additive. Therefore, the MRP compliance effort represents 28% of all baseline operating costs.

The third step established additional needs that should be included in the proposed stormwater utility structure. As shown in the Funding Analysis Report, the work identified as critical additional needs can be categorized as protection from flooding, and mitigation and removal of trash and pollution. The estimated costs for these additional op erating needs for FY 24 are summarized as follows:
 $305,750 for Operations and Maintenance
2  2.2 full-time equivalent Maintenance Worker II for creek and inlet cleaning  Green infrastructure maintenance (contract services)
 $238,800 for MRP Trash Capture Compliance3
 $118,000 for other MRP Compliance
 Additional industrial / commercial inspections
 Allowance for MRP renewal costs
The results of that analysis showed that approximately $6 63,000 additional funding would be needed annually by FY 24. This, combined with the baseline operating costs, would bring the total FY 24 operating budget to $3.9 million. The financial review produced a 30-year forecasting tool, or model, that would enable the Team to create various cost/revenue scenarios and perform various analyses. The result of th is analysis for operations and maintenance of the stormwater system is shown in Table 1.

2 Based on information from Operations staff in an email dated April 29, 2020. 3 From LWA memo, Appendix A, Table 2

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Table 1 - Total Stormwater Program Costs
in thousands
Fund
Prog
#
Sub-
Prog Program FY 22 FY 23 FY 24
10 4676 1 Stormwater Pollution 466$ 480$ 495$ 10 4677 1 Marina Lagoon 499 514 529
10 4679 1 Storm and Flood 189 195 201 21 4678 1 Waste Mgt - Disposal 393 405 417 21 4678 2 Waste Mgt - Special Events 35 36 37 72 4672 1 Envir Compl - Pollution Prev 232 239 247 72 4675 3 Sewer Mtce - Pump Repair 312 321 331 72 4675 5 Storm Sewer Mtce 887 913 941 Baseline Costs 3,014$ 3,104$ 3,197$
Additional Needs -$ - 663
TOTAL OPERATING COSTS 3,014$ 3,104$ 3,860$

Table 1 shows a 3-year cost window; however, these costs were forecast for 30 years as part of the 30-year rate model discussed in a later section.

Capital Project Needs
The Funding Analysis task work evaluated Capital costs using information from three primary sources: 1) The FY 21 Capital Improvement Program (“CIP”); 2) The 2018 Marina Lagoon Dredging Assessment; and 3) The 2004 Storm Drain Master Plan. Cost estimates for the latter were escalated from 2004 to 2024 using the Construction Cost Index published by the Engineering News Record. Capital costs for a full enterprise program were compiled into a single Capital Improvement Program (“CIP”) totaling $139 million (FY 22), and escalated to $174 million (FY 24).

However, as discussed in the 2021 Financial Analysis, the Marina Lagoon project was restructured to include an initial dredging project estimated at $9.7 million and the remaining work placed into a capital maintenance program based on annualized life-cycl e costs of $2.0 million (FY 24) . The $9.7 million project has been escalated to approximately $12 million for FY 24. The result of the CIP analysis is shown in table 2.

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Table 2 –Capital Improvement Program
in thousands in thousands
Project FY 20 Cost FY 24 Cost * Tier 1 Tier 2 Tier 3
Storm Drain Condition Assessment 1,000$ 1,232$ 1,232$ -$ -$ Storm Drain Master Plan Update 115 142 142 - - Green Infrastructure Program ** na 1,733 1,733 - - Pacific Blvd Drainage Channel Rehab 600 739 739 - - Creek & Lagoon Routine Mtce Permitting 380 468 468 - - First Lagoon Dredging 9,700 11,951 - 11,951 - 16th Avenue Drainage Area 9,521 11,730 5,764 - 5,967 19th Avenue Drainage Area 11,972 14,750 7,254 - 7,496 Laurel Creek Drainage Area 9,567 11,788 7,178 - 4,610 Coyote Point Drainage Area 17,050 21,006 14,098 - 6,909 Detroit Drive Drainage Area 5,728 7,057 4,907 - 2,150 San Mateo Creek Drainage Area 2,620 3,229 999 - 2,229 Total Revenue Requirement 68,253$ 85,825$ 44,513$ 11,951$ 29,361$ * Costs were escalated based on the three-year rise in ENR Construction Cost Index from 12,764.52 to 14,977.94 plus 5% estimated for the current year. ** Green Infrastructure Program was added to CIP after the 2021 Financial Analysis.

By converting the Marina Lago on dredging project to an annual program, its large, one-time capital cost can be removed from the CIP which resulted in an adjusted CIP of $68 million and has been escalated to $86 million (FY 24) . This amount was then incorporated into the 30 -year financial model resulting in an annual capital cost beginning at approximately $3.1 million.

Summary of Financial Needs
Total stormwater program costs, including baseline Operations and Maintenance, additional operating needs, and annual capital projects costs result in a total annual funding need beginning at approximately $9 million. A summary of the financial needs is shown in Table 3.

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Table 3 – Estimated Revenue Needs
in thousands
Baseline O&M 3,197$
Additional O&M Needs 663
Subtotal Operating Costs 3,860$
Lagoon Capital Maintenance (annualized) 2,016
Capital Improvement Program*
Tier 1: High Priority Projects 1,622
Tier 2: First Lagoon Dredging 436
Tier 3: Medium- and High-Priorty Projects 1,070
TOTAL REVENUE Requirement 9,004$
* CIP is amortized over 30 years
Estimated FY 24 Revenue Needs

Annual Revenue Requirement
As part of the overall effort to implement a stormwater fee designed to provide projects best suited to the community’s priorities , and overall needs of the stormwater program , the City directed SCI to conduct public opinion surveys to better understand community values and priorities, e ffectiveness of messaging strategies, and willingness to pay for various levels of service. The survey s projected current ballot support for a new stormwater fee at a maximum rate of $8 per month for an average single family home. An $8 per month fee woul d generate annual revenues at a maximum of $4 million in the first year. While this level of support is not adequate to create a fully self -funded, $9 million -per-year enterprise, the community’s current willingness to pay can fund most of the enterprise w hen combined with current stormwater funding.

Revenue Scenarios
The financial needs discussed above can be broken down into two categories : annual costs for operations and one -time costs for the CIP. In order to develop an annual cash flow model, the one-time CIP costs must be annualized. The method for doing this is a 30 -year rate model developed by SCI. This comprehensive model inputs an assumed FY 2 4 revenue stream and balances those with annual costs including operations, pay-as-you-go (“PayGo”) capital, resulting in a fund balance that also serves as the fund reserves (assumed to be 2 0% of annual operating costs). The annual PayGo capital serves to spend down the backlog of CIP needs such that by year 31 the backlog is near zero.

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According to the Community Polling task work, the community is willing to pay $4 million annually towards the full stormwater enterprise annual revenue need of $9 million . However, the costs for the existing baseline levels of service shown in Table 1 of approximately $3.2 million are already funded through other City sources. If that funding remains in place, the net stormwater need would be ($9 million - $3.2 million =) $5.8 million. While the $4 million revenue pote ntial falls short of that amount, it funds almost 70% of that need.

The City has indicated that the highest priority needs are the additional O&M and the annualized lagoon costs, or $663,000 and $2,016,000, respectively, leaving approximately $1,353,000 annually for CIP needs. However, the true costs of lagoon dredging are somewhat unknown at this time. The estimates shown in this report are based on the 2018 dredging analysis done for the City, which identified two sets of costs base d on what type of soi l is found in the bottom of the lagoon. If soil contaminates are under certain levels, the soil can be hauled to a nearby landfill (about 15 miles away). However, if the contaminates are above certain levels, the soil will need to be hauled to a specialt y landfill that would likely be much further away and require more stringent containment and transportation requirements thereby doubling the costs. The annualized dredging costs of $2 million are for the more stringent case. The true annualized costs could be $1 million, $2 million, or somewhere in between. The contamination amounts will not be known until dredging begins and testing is done on the soil.

Table 4 – Needs Summary and Financial Scenarios
in thousands
Scenario 1 Scenario 1 Scenario 1
Baseline Costs 3,197$ -$ -$ -$ Additional Needs 663 663 663 663 Subtotal Operating Costs 3,860$ 663$ 663$ 663$ Marina Lagoon Dredging 2,016 2,016 1,512 1,008 Capital Improvement Program*
Tier 1: High Priority Projects 1,622 1,353 1,622 1,622 Tier 2: First Lagoon Dredging 436 - 235 436 Tier 3: Medium- and High-Priorty Projects 1,070 - - 303 TOTAL REVENUE Requirement 9,004$ 4,032$ 4,032$ 4,032$ g
* CIP is amortized over 30 years Funded from other sources Deferred Funding g
Partially Deferred Fundingy g
Estimated FY 24 Needs

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If the lagoon costs are reduced, there would be more of the $4 million revenue available for other CIP needs. For the purposes of the 30 -year financial model, three levels of lagoon funding are modeled and are shown in Table 4. Figure 1 illustrates how a lower lagoon cost allows for more of the CIP need to be met for the three scenarios.

Figure 1 – Comparison of Lagoon Scenarios

These scenarios show that there is flexibility in how the $4 million revenue stream can be programmed. The City typically evaluates its operating and capital priorities annually during the budget cycle where this flexibility will be useful. An enhanced Operations and Maintenance program providing increased protection from flooding and property damage is enabled by full funding for additional operational needs, while CIP investment toward infrastructure rehabilitation provides needed strengthening of the City’s aging storm drain system. While the scenarios are not binding, they are illustrative of what the City could provide in future years. The scenarios include only PayGo capi tal instead of debt financing. Recent sensitivity analyses have shown that the costs associated with debt financing decreases the overall CIP capacity by approximately $10 million depending on amount and length of debt.

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Revenue Requirement Recommendation s
Based on the overall Stormwater needs and community priorities and support levels, it is recommended that a FY 24 revenue stream of $4 million be used as a basis of the proposed rate structure. The compa rison of the three scenarios shown above illustrate that, although the revenue falls short of the fully self -funded enterprise goal of $9 million, it can accomplish many of the most important goals when combined with the existing funding structure of approximately $3.2 million. This revenue requirement has the following advantages:
• Funding for additional Operations and Maintenance work • Funding of the CIP for critical infrastructure strengthening and improvements • Funding of Marina Lagoon dredging

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Rate Structure Analysis
Proposition 218 states that the amount of a fee upon any parcel shall not exceed the proportional costs of the service attributable to that parcel. It also states that no fee may be imposed for a service unless that service is actual ly used by, or immediately available to, the owner of the property. In compliance with Proposition 218, the proposed Stormwater Fee, if approved by property owners, will only be imposed on properties that shed water, directly or indirectly, into the City’s system or are otherwise served by the system. Additionally, the amount of use attributed to each parcel is proportionate to the amount of stormwater runoff contributed by the parcel, which is, in turn, proportionate to the amount of impervious surface area on a parcel (such as building roofs and pavements).

The impervious surface area method of apportioning the cost of Stormwater management has become the industry standard over recent decades. It is accepted across the nation as the best and most equitable method. However, there is variability in how impervious surface area is put to use, depending on the types of data and technology available for measuring or estimating this variable.

Single -Family Residential Parcels as Benchmark
The most widely used meth od of establishing storm drainage rates is to use the average single - family residential parcel (“SFR”) as the basic unit of measure, or benchmark, which is called the single-family equivalent, or “SFE.” Since the metric for this fee structure is impervious surface area, a benchmark amount of impervious surface area (“IA”) must be established.

The City has a wide range of sizes of SFR parcels, which have varying percentages of impervious area (“%IA”). Generally, smaller, denser parcels tend to have a higher proportion of impervious area than larger, less dense parcels, which tend to have a lower percentage of impervious area. (This can be best visualized by the fact that larger residential properties tend to have a larger proportion of pervious landscaping, a nd therefore a smaller proportion of impervious area.) A random sample of 385 SFR parcels was selected across all lot sizes , and the IA of each sample parcel was measured using aerial photographs. This sample data forms the basis for determining the average IA, which will then be the basis for determining the SFE.

The range of SFR parcels was grouped into four size categories based on trends that emerged in the IA data (small, medium, large and extra-large). For each size group, the total IA on the sampled parcels were divided by the number of parcels sampled to arrive at the average amount of IA for each size group. For the medium SFR category, 273 parcels were sampled with a total of 859,960 square feet of IA, resulting in an average IA of 3,150 SF. This will be used as the benchmark (1 SFE) for all other size categories and other non-residential land uses.

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Condominiums
Condominium units are particularly difficult to categorize as they are often on very small individual parcels yet share larger common areas that are made up of landscaped (pervious) areas, parking lots and shared roofs, and other recreational uses (either pervious or impervious). The data for these variables is not readily available, so some assumptions are made about their characteristics.

Condominiums can be grouped into two categories: Medium-density where there is only one level of residential units (e.g., townhomes) and high -density where there are multiple levels of residential units (similar to apartment buildings).

In numerous prior st udies, a strong trend emerged for these two types of condominiums where the medium density IA was approximately two-thirds that of a medium SFR, and the high density IA was approximately one-third that of a medium SFR. Since the medium SFR is benchmarked as one SFE, the SFE values for these types of condominiums are set at 0.6694 SFE and 0.33870 SFE, respectively.

Additionally, most condominium sites include common parcels for parking areas, greenbelts, and other common facilities. Since these represent aspects that are also common to SFR parcels (driveway/garage for parking, front/back yards), these common parcels are considered included in the rate for each residential unit. In some cases where a condominium site includes extraordinary improvements on common parcels such as sport courts , swimming pools, or recreation centers, they may be charged separately.

Table 5 shows a summary of the SFEs for residential parcels.

Table 5 - SFE Summary for Residential Parcels
# of
Parcels A Acres A
Average
IA (sf)
SFE per
Parcel
Small under 0.11 under 4,792 2,137 165.01 2,187 0.6943
Medium 0.11 to 0.17 4,793 to 7,405 13,795 1,800.70 3,150 1.0000 Large 0.18 to 0.23 7,406 to 10,019 2,218 441.20 3,906 1.2399 Very Large Over 0.23 over 10,019 1,419 507.37 4,362 1.3848 Condo - 1 Level na 1,641 163.34 2,109 0.6694
Condo - 2+ Levels na 5,384 538.40 1,067 0.3387
TOTAL 26,594 3,616
A
Square FootageAcres
Parcel Size Range
Numbers of Parcels and Acres do not factor into the basis of the SFE calculation; they are shown for informational purposes only.

Lot Type

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Non -Residential Parcels
Unlike the residential parcels, non-residential parcels can vary widely in size as well as impervious characteristics. For this reason, the parcels have been grouped into land use categories according to their %IA characteristics. The SFE for each land use category is based on a per -acre basis, so size can be a variable in the calculation of the fee. The SFE -per-acre can be computed for each category using the following formula:
(43,560 sf / acre) x % I A
3,150 sf / SFE = SFE per Acre

where 3,150 square feet is the amount of IA in one SFE. Table 6 shows a summary of SFEs for each non-residential land use category.

Table 6 - SFE Summary for Non-Residential Parcels
# of
Parcels A Acres A
% Imperv
Area
SFE per
Acre
Commercial / Retail / Industrial 976 570.24 90.8% 12.562 Office / Apt / Institutional 1,062 912.76 74.0% 10.228
School w/Playfield 27 305.35 64.4% 8.905
Park 56 437.78 5.0% 0.691
Vacant (developed) 51 33.45 5.0% 0.691
Open Space / Agricultural 0 0.00
TOTAL 2,172 2,259.58
A
not charged
Land Use Category
Aggregate numbers of Parcels and Acres do not factor into the basis of the SFE c alc ulation; they ar e shown for infor mational pur poses only .

Each individual parcel’s SFE is then calculated by multiplying the parcel size (in acres) times the SFE per acre for that land use category, as shown in the following formula:

Parcel Size (acres) x SFE per Acre = SFE

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Non -Residential Condominiums
Non-residential condominium parcels such as commercial or office condominiums cannot be charged on the acreage of the individual unit because that would omit the acreage of the common areas, which are often parking lots with high %IA. In turn, the common area acreage data is sometimes duplicative of the acreages assigned to the individual units. For these reasons, the full site acreage for each complex of condominiums has been apportioned to the individual units, prorated on the basis of the individual unit’s floor space (when available). From that, their SFEs are calculated in the normal method.

Graded Vacant Parcels
Graded vacant parcels are devoid of obvious structures or improvements but are distinguished from natural open space by one of several characteristics. Typically, a graded vacant parcel has been graded to be ready for building construction (possibly as part of the original subdivision or adjacent street grading). I n some cases, the parcel previously contained a structure or improvement that has been removed, but its fundamental alteration from a natural state remains.

Although graded vacant parcels may have significant vegetative cover, the underlying soil conditions resulting from grading work or previous improvements usually cause some rainfall to runoff into the storm drainage system. The %IA for developed vacant parcels is reasonably assumed to be 5%, which is also used as a minimum value of imperviousness for any land use type (excluding open space and agricultural land – see next section). Vacant parcels that h ave significant impervious paving remaining from prior improvements may be classified as Commercial or some other classification best representing the %IA of the parcel.

Open Space and Agricultural Parcels are Not Charged
The City’s storm drain system was developed in response to land development over many decades. Tracts of land that have not yet been developed, or have been used primarily for agricultural purposes, have not created an impact on the system beyond the natural condition, and are therefore co nsidered to receive no service from the system. In practical terms, these parcels generate no additional storm runoff beyond the natural condition. For these reasons, open space and agricultural parcels are not charged a Fee.

Hybrid Parcels
Some parcels ma y have improvements as well as significant open space areas. For such hybrid parcels that contain a residence, the open space acreage does not increase the fee because residential parcels are not charged on a per -acre basis. Rather, they are charged based on the average IA for that size category.

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For such parcels that contain non -residential improvements (which are charged on a per -acre basis), the chargeable acreage should be adjusted downward to reflect the improved area only, leaving the open space area “invisible” to the fee calculation. Where parcels have been found in this category, that acreage adjustment has been made.

Other Parcels
Parcels that do not fall within the land use descriptions listed above may be placed into the category having the closest %IA characteristics.

Other Non -Charged Parcels
Parcels such as streets, detention basins, or rights of way for drainage appurtenances are considered part of the drainage system and thus are not charged a Stormwater fee.

Other parcels that may not be charged include sliver parcels that function as part of another parcel or railroad rights of way that contain established internal drainage retention features (ballast).

Rate Credits
Low Impact Development Rate Credit
The City's NPDES Permit requires certain properties to install structural BMPs 4 intended to treat Stormwater runoff and attenuat e Stormwater flows. These facilities are typically designed to capture a portion of the storm flows, retain them, and enable them to filter through a landscape, be used as an alternative water supply, or infiltrate into the ground. While this is intended to help filter pollut ants from the water, it also can reduce the parcel’s stormwater runoff quantity to some extent, which in turn can reduce a parcel’s impact on the system. In addition to Permit - required measures, other parcel owners may elect to follow these guidelines voluntarily.

4 BMP is an acronym for "best management practices." In this context, BMPs refer to permanent facilities built on-site that mitigate Stormwater impacts of certain regulated development projects.

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The section of the NPDES Permit that requires structural BMPs is Provision C.3 (New Development and Redevelopment)). Compliance with C.3 is a well-established and convenient metric on which to base customer activities that further Program goals an d affect Program costs. C.3 compliance can reduce impacts on many of the Program elements. Based on a detailed study 5 done for a similar city in the Bay Area, it has been determined that compliance with Provision C.3 equates to a reduction of Program impacts of approximately 25% based on the overall Program costs. Based on that analysis, C.3-compliant parcels shall receive a credit of 25% of their otherwise -calculated fee.

Some non -residential parcels may implement structural BMPs for only a portion of the parcel acreage. Since that effort and reduction in impacts to the City’s storm drainage system should be recognized, those parcels should receive a partial credit. For any parcel that implements structural BMPs for 26% to 50% of the site acreage, the credit shall be 12.5%. For any parcel that implements structural BMPs for 25% or less of the site acreage, the credit shall be 6.3%.

Summary of SFEs and Revenues by Rate Category
SFEs are calculated for each parcel according to the methodology described above. The allocation of revenues is reflected by the SFEs. A summary of those revenues/SFEs is shown by Rate Category in Table 7. In addition, the number of parcels and acreage for each rate category is shown.

5 A study was conducted for the City of Cupertino on Santa Clara County. Excerpts from that study are included in Appendix A.

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Table 7 - Allocation of Revenue by Category
Category Parcels % Acres % SFEs %
Small 2,137 7.4% 142,376 2.8% 1,483.08 3.5% Medium 13,795 48.0% 1,324,320 30.6% 13,795.00 32.6% Large 2,218 7.7% 264,031 7.5% 2,750.32 6.5% X-Large 1,419 4.9% 188,671 8.6% 1,965.32 4.6% Condo 1 1,641 5.7% 105,392 2.8% 1,097.83 2.6% Condo 2+ 5,384 18.7% 175,217 9.2% 1,825.18 4.3% Residential Totals 26,594 92.4% 2,200,006 61.5% 22,916.73 54.2% Comm / Indust 976 3.4% 687,684 9.7% 7,163.37 16.9% Office / Apt / Institutional 1,062 3.7% 882,234 15.5% 9,189.94 21.7% Institutional w/ Field 27 0.1% 261,037 5.2% 2,719.14 6.4% Park 56 0.2% 29,040 7.5% 302.50 0.7% Graded Vacant 51 0.2% 2,219 0.6% 23.11 0.1% Non-Residential Totals 2,172 7.6% 1,862,214 38.5% 19,398.06 45.8% TOTAL 28,766 4,062,220 42,314.79

Stormwater Fee Calculation
The primary metric in this analysis is the SFE as illustrated above. To arrive at the fee amount for the various land use categories, the total City-wide SFEs must be divided into the total revenue requirement to arrive at the rate per SFE. The $4,032,000 revenue requirement was used for this calculation. Using the analysis above, that calculation is represented by the following formula:
= $96 per Year
( = $8 per Month )
Annual Revenue Req't
Total SFEs
$4,032,000
42,315
=SFE Rate
=

This SFE rate amount is then multiplied by the SFEs per parcel or per acre for the various land use categories to arrive at the Stormwater Fee Rate Schedule shown in Table 8.

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Table 8 - Stormwater Fee Schedule
Residential *
Small Under 0.11 ac 5.55$ per parcel
Medium 0.11 to 0.17 ac 8.00$ per parcel
Large 0.18 to 0.23 ac 9.92$ per parcel
Extra Large Over 0.23 ac 11.08$ per parcel
Condominium - 1 Level 5.35$ per parcel
Condominium - 2+ Levels 2.71$ per parcel
Non-Residential **
Commercial / Industrial 100.50$ per acre
Office / Apartment / Institutional 81.82$ per acre Institutional w/ Field 71.24$ per acre
Park 5.53$ per acre
Vacant (developed) 5.53$ per acre
Open Space / Agricultural
* Single-Family Residential category also includes du- tri- and four-plex units Land Use Category
not charged
Proposed Monthly Fee
FY 2024-25
** Non-SFR parcels size is calculated to a hundredth of an acre Appendix B has informa tion about stormwater rate initiatives implemented by other municipalities and rates adopted by other municipalities.

Billing Methodologies
The proposed rate structure is recommended to be billed once a year through the property tax bill system. There are many upsides to this system.
 The recommended structure is not dependent on monthly water consumption. It is reliant on property imperviousness that is derived from land use and statistical analyses (already done for this Report). These factors rarely change from year to year, and when they do change (new construction or development being the primary cause), those changes are easy to incorporate on an annual basis from other existing data sets (e.g., City building permits, county tax assessor use code changes).  As an annual billing, there is less administrative action needed prior to the July/August deadline for tax bill charges.

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 Delinquencies are virtually a non-factor since property owners typically pay their tax bills promptly and routinely. While property tax bill delinquencies do occur, the County's Teeter Plan ensures that direct charges are paid to the local agencies despite the delinquency.6
 Third-party agencies are relieved of the burden of billing on behalf of the City.  There is no additional work needed to conform to a tax bill format. The data for this Report has been developed at the parcel level because the Proposition 218 balloting procedures require that each affected parcel receive a ballot. Therefore, the data is already in the correct format for the annual property-tax billing method.

On the downside, the County charges the local agencies for the convenience of collecting such charges on the property tax bill, in the amount of $1.42 per parcel. For the City, that would amount to approximately $40,000 annually, or approximately one percent.

Annual Cost Indexing
The 2025 Stormwater Fee is subject to an annual adjustment tied to the Consumer Price Index-U for the San Francisco Bay Area as of December of each succeeding year (the “CPI”), with a maximum annual adjustment not to exceed 3%. Any change in the CPI in excess of 3% shall be cumulatively reserved as the “Unused CPI” and shall be used to increase the maximum authorized rate in years in which the CPI is less than 3%. The ma ximum authorized rate is equal to the maximum rate in the first fiscal year the Fee was approved adjusted annually by the lower of either 3% or the change in the CPI plus any Unused CPI as described above.

Management and Use of Stormwater Funds
The City shall deposit into a separate account(s) all Stormwater Fee revenues collected and shall appropriate and expend such funds only for the purposes outlined by this Report. The specific assumptions utilized in this Report, the specific programs and projects lis ted, and the division of revenues and expenses between the two primary categories (O&M and CIP) are used as a reasonable model of future revenue needs and are not intended to be binding on future use of funds.

6 The County has a sophisticated procedure in place for delinquencies, that may include foreclosure on a property.

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Appendices
The following appendices are provided:

Appendix A – PDP Rate Credit Basis
Appendix B – Stormwater Rates in Other Cities

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Appendix A – PDP Rate Credit Basis
On the following pages is an analysis done for the City of Cupertino in February 2019 that estimated the extent that structural BMPs (referred to as “ low impact development ”, or “LID”) reduces the impact on the City’s storm drain system. Cupertino is similar to the City of San Mateo in that both are mid -sized cities with similar land use patterns, storm drainage systems, and magnitude of costs and needs.

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Appendix B – Stormwater Rates in Other Cities

Table 9 – Recent Stormwater Fee Ballot Measures & Outcomes

Agency Year Type
Support
Level
City of Sacramento 2022 207$ Fee 52%
Vallejo Flood & Storm 2022 54$ Fee 32%
City of Davis 2021 157$ Fee 61%
City of San Bruno 2021 154$ Fee 36%
City of Alameda 2019 129$ Fee 57%
City of Cupertino 2019 56$ Fee 51%
City of Los Altos 2019 88$ Fee 44%
City of Berkeley 2018 96$ Fee 61%
Los Angeles County 2018 83$ Tax 69%
Town of Moraga 2018 120$ Fee 48%
City of Palo Alto 2017 164$ Fee 64%
City of Culver City 2016 99$ Tax 74%
Recent Stormwater Fee Ballot Measures
Annual
Amount
NOTE: Brown font indicates a failed ballot measure

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Table 10 – Samples of Stormwater Rates Around the State Municipality

Annual
Rate Type of Fee
Alameda 134$ Property-Related Fee
Bakersfield 200$ Property-Related Fee
Culver City 99$ Special Tax
Davis 85$ Property-Related Fee
Elk Grove 70$ Property-Related Fee
Hayward 29$ Property-Related Fee
Los Angeles 27$ Special tax
Los Angeles County 83$ Special tax
Palo Alto 164$ Property-Related Fee
Redding 16$ Property-Related Fee
Sacramento (City) 136$ Property-Related Fee
Sacramento (County) 70$ Property-Related Fee
San Bruno 46$ Property-Related Fee
San Clemente 60$ Property-Related Fee
San Jose 92$ Property-Related Fee
Santa Cruz 109$ Special Tax
Stockton * 221$ Property-Related Fee
Vallejo Sanitation and Flood
Control District 24$ Property-Related Fee
West Sacramento 144$ Property-Related Fee
Woodland 6$ Property-Related Fee
* This is the calculated average rate for the City of Stockton, which has 15 rate zones with rates ranging from $3.54 to $651.68 per year.

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 23 Section Name: PUBLIC HEARING Account Number: 10-1311 File ID: 23-7603 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: City Manager's Office
MEETING DATE: July 17, 2023
SUBJECT:

Outdoor Dining Standards and Permits – Amendments
RECOMMENDATION:

Adopt a Resolution to approve amendments to the standards for the various outdoor dining permit programs to allow for parklets to be constructed in the downtown pedestrian malls, amend the fee schedule to create a new fee for parklets in the pedestrian malls, and authorize the City Manager to make further minor administrative amendments to these program standards.

BACKGROUND:

In June 2021, the City Council adopted a permanent Parklet Permit Program (“Program”) and on March 21, 2022, City Council revised its existing sidewalk dining encroachment permit to include pedestrian mall dining. Both programs went into effect when the City’s Temporary Outdoor Dining Permit Program expired on April 30, 2022. City staff worked with businesses to process their applications and issue permits under the Program.

At the May 15, 2023, City Council meeting, the City Council directed staff to revisit the guidelines related to the ability of businesses to have a parklet platform on the pedestrian mall blocks. Following Council’s guidance, staff drafted amendments to the outdoor dining permit guidelines to allow parklet platforms within the pedestrian mall. For clarity to the businesses since the rules vary depending on the location of the outdoor dining, staff created separate guidelines that represent the different iterations of outdoor dining installations and the specific standards and fees that apply to each permit type. Descriptions of each set of standards are listed below. •Pedestrian Mall Parklet Platform Encroachment Permit: Allows ground-floor food service businesses located within the Pedestrian Mall (B Street between 1st and 3rd Avenue) to construct a dining platform in the closed street directly in front of their business.
•Parklet Encroachment Permit: Allows ground-floor food service businesses to construct a dining platform within on-street parking spaces directly in front of their business. Parklets are allowed City-wide in commercial districts. •Sidewalk and Pedestrian Mall Furnishings Encroachment Permit: Allows ground-floor food service businesses to provide outdoor seating and related furniture along the sidewalk in commercial districts and on the street within the Pedestrian Mall (B Street between 1st and 3rd Avenue). This permit is not required for furnishings provided on parklet platforms or in conjunction with a parklet permit.

In order to add in a new encroachment permit for a Pedestrian Mall Parklet Platform, staff had to create the standards for the Pedestrian Mall Parklet Platforms. In addition, staff made a few amendments to the other pre-existing Outdoor Dining

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Standards, which include the following:
•Added a description of each of the 3 permit options for outdoor dining on each of the program standards. •Replaced the term ”Guidelines” with ”Standards” to clarify that the standards are requirements and must be followed as opposed to suggested approaches.
•Clarified criteria regarding utilities, storm drains, sidewalk underdrains, and street paving.

Comprehensive Fee Schedule Amendments
According to the Fiscal Year 2023-2024 Comprehensive Fee Schedule, businesses that want to install a parklet are subject to both a one-time permit application review fee of $530.00, as well as an annual permit fee of $265.00 per parking space used in the parklet. Businesses who are interested in obtaining an encroachment permit for sidewalk or pedestrian outdoor dining are subject to an annual permit fee of $408.21.

With Council’s direction to add a Pedestrian Mall Parklet Platform Encroachment Permit, staff must amend the City’s fee schedule to include permit fees for the parklets in the Pedestrian Mall. Staff recommends that the Pedestrian Mall Parklet Platform Encroachment Permit have a one-time application review fee of $530.00, the same as the other parklet program and an annual fee of $408.21, the same as the annual outdoor furnishings fee, for any business within the Pedestrian Mall interested in constructing a parklet platform.

BUDGET IMPACT:

Allowing parklets to be constructed in the pedestrian malls will have no impact on City revenue since the spaces are no longer available for metered parking. The City is creating a new fee for review of the pedestrian mall parklet permit applications which is set at $530.00 and is anticipated to cover the cost of staff time for reviewing and processing permits.

ENVIRONMENTAL DETERMINATION:

In accordance with California Environmental Quality Act (CEQA) Guidelines, the amendments to the Outdoor Dining Parklet Program Standards and Permits are categorically exempted from CEQA under the category of ”existing facility” because it consists of a minor alternation to the operation of an existing City Street involving negligible or no expansion of the former use. (CEQA Guidelines Section 15301).

The amendments to the Outdoor Dining Parklet Program Standards fee schedule to include permit fees for the parklets in the Pedestrian Mall is not a project subject to CEQA, because it is a government administrative activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Resolution
Att 2 – Proposed Public Comment

STAFF CONTACT
Denise Garcia, Management Analyst II
[email protected]
(650) 522-7277

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RESOLUTION NO. ___ (2023)

APPROVING AMENDMENTS TO VARIOUS OUTDOOR DINING ENCROACHMENT PERMIT PROGRAM

STANDARDS AND ADDING PEDESTRIAN MALL PARKLET PLATFORM ENCROACHMENT FEES TO THE MASTER COMPREHENSIVE FEE SCHEDULE FOR THE FISCAL YEAR 2023-2024

WHEREAS, the City of San Mateo adopted a permanent Parklet Permit Program on June 21, 2021, to allow for outdoor dining in commercial districts in public parking spaces through a Parklet Encroachment Permit; and

WHEREAS, the City of San Mateo adopted a Sidewalk and Pedestrian Mall Outdoor Dining Permit Program on March 21, 2022, to expand the existing sidewalk dining permit to include outdoor dining installations on the City’s Pedestrian Malls on B Street; and

WHEREAS, the City of San Mateo wishes to allow businesses within the Pedestrian Mall to construct Parklet Platforms and will require a Pedestrian Mall Parklet Platform Encroachment Permit; and

WHEREAS, the City created a Pedestrian Mall Parklet Platform Encroachment Permit along with a new set of standards to allow businesses to construct parklet platforms within the Pedestrian Mall; and

WHEREAS, the City made administrative updates to the standards for the Parklet Encroachment Permit and Sidewalk and Pedestrian Mall Furnishings Encroachment Permit to clarify the distinction between the various outdoor dining permit programs and standards; and

WHEREAS, the City needs to add the Pedestrian Mall Parklet Platform Encroachment Permit application and annual fees to the City’s Master Comprehensive Fee Schedule; and

WHEREAS, further administrative updates may be needed to the standards for the various outdoor dining permit programs to ensure that they remain current; and

WHEREAS, City staff requests the authority to make minor administrative updates to the standards for the various outdoor dining permit programs with the approval of the City Manager; and

WHEREAS, any significant substantive changes to the standards for the various outdoor dining permit programs will require City Council review and approval.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:

1. In accordance with California Environmental Quality Act (CEQA) Guidelines, the amendments to the Outdoor Dining Parklet Program Standards and Permits are categorically exempted from CEQA under the category of ”existing facility” because it consists of a minor alternation to the operation of an existing City Street involving negligible or no expansion of the former use. (CEQA Guidelines Section 15301).

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2. The amendments to the Comprehensive Fee Schedule to include permit fees for the parklets in the Pedestrian Mall is not a project subject to CEQA, because it is a government administrative activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

3. The City Council adopts the creation of the Pedestrian Mall Parklet Platform Encroachment Permit standards attached as Exhibit A.

4. The City Council adopts the administrative updates to the Parklet Encroachment Permit standards, attached as Exhibit B, and Sidewalk and Pedestrian Mall Furnishings Encroachment Permit standards, attached as Exhibit C, to this resolution.

5. The City Council adopts the amendments to the Compressive Fee Schedule for Fiscal Year 2023-2024 to add the Pedestrian Mall Parklet Platform Encroachment application review fee and the annual fee attached as Exhibit D and Exhibit E to this resolution.

6. The City Council authorizes the City Manager to approve minor administrative updates to any of the various outdoor dining permit program standards.

7. All outdoor dining installations must adhere to the standards for the various outdoor dining permit programs.

8. This resolution shall take effect immediately upon its adoption.

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FOR FOOD SERVING BUSINESSES LOCATED

WITHIN THE PEDESTRIAN MALL
B STREET BETWEEN 1ST AND 3RD AVENUES
July 2023
Exhibit A

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I. Introduction
Outdoor dining adds liveliness to City streets and supports local businesses. To that end, the City has created programs allowing businesses to expand their operations with additional seating in the public right of way, which includes City sidewalks and streets. The City of San Mateo created three distinct programs in order to provide the most flexibility for outdoor dining. All of the programs allow food service businesses the opportunity to expand a portion of their operations outdoors, directly in front of their business:

A. PEDESTRIAN MALL PARKLET PLATFORM ENCROACHMENT PERMIT– Allows ground-floor food service business located within the Pedestrian Mall (B Street between 1st and 3rd Avenue) to construct a dining platform in the closed street directly in front of their business.

B. PARKLET ENCROACHMENT PERMIT – Allows ground-food service businesses located outside the Pedestrian Mall (B Street between 1st and 3rd Avenue) to construct a dining platform within on- street parking spaces directly in front of their business. Parklets are allowed City-wide in commercial districts (except along El Camino Real, shopping centers, or private parking lots).

C. SIDEWALK AND PEDESTRIAN MALL FURNISHINGS ENCROACHMENT PERMIT – Allows ground- floor food service businesses to provide outdoor seating and related furniture along the sidewalk in commercial districts and inside the street within the Pedestrian Mall (B Street between 1st and 3rd Avenue) Sidewalk dining is not allowed along El Camino Real. This permit is not required for furnishings provided on parklet platforms or in conjunction with a parklet permit.

All three programs require an Encroachment Permit from the City of San Mateo. Encroachment permits are not available to food service businesses located in shopping centers or businesses on El Camino Real, because these locations are not under the City’s control. Only food service businesses with storefronts may apply for encroachment permits to serve food or drinks.

This set of standards apply to only businesses in the Pedestrian Mall (B street from 1st Avenue to 3rd Avenue) wishing to build a parklet platform. Due to the unique circumstances of each proposed parklet platform location, there may be instances where City staff requires additional design elements not covered in these standards. The City of San Mateo will review the application and will approve submittals that meet the requirements set forth by these standards.

Plans must be submitted by the business sponsor and permits must be issued by the City prior to any construction or modification. The Pedestrian Mall Parklet Platform applications will be subject to a one- time permit application review fee, an annual permit fee as defined in the City Fee Schedule, and an inspection fee from San Mateo Consolidated Fire as defined in the SMCF Fee Schedule.

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II. Location and Setback Criteria
The following criteria are for food service businesses that want to build parklets platforms along the two blocks in the Pedestrian Mall (B Street between 1st and 3rd Avenues). For businesses that wish to create an outdoor dining area without a platform on the closed street or sidewalk, please apply for the Sidewalk and Pedestrian Mall Furnishings Encroachment Permit.

A. Location Criteria
• Adjacency to Storefront – Parklet platforms or decks may only be installed along the frontage of the storefront applying for the permit. Platforms are not allowed to use the frontage of adjacent storefronts to expand their territory without written consent from the adjacent business owner. • Shared Parklet Platforms -- Adjacent storefronts may apply for a shared parklet platform or extension of a platform and will be considered on a case-by-case basis. The shared or extended parklet platform cannot exceed the frontage for the combined businesses. o Consent terms – Adjacent businesses must provide consent on an annual basis for parklet platforms to extend to neighboring frontage.
o Change of adjacent business owner – If the adjacent business ownership change, the consent carries through the existing annual period and the adjacent owner must inform the new owners of the existence of this consent
o Annual written renewal – adjacent business must affirm the use of their storefront during the annual renewal period for the parklet platform. If the renewal is not granted, it is the sole responsibility of the parklet owner to make any required adjustments to the parklet dimensions.

B. Parklet Platform Setbacks
• Emergency Vehicle Lane Setback – Emergency vehicle lane must be free of parklet platforms and associated outdoor dining furnishings at all times. • Parklet Width – Parklet platforms may be built up to the emergency vehicle lane.

C. Other Location Criteria
• Utilities – If a parklet platform is constructed over utilities assets such as but not limited to valves, access panels, or manholes, it should be noted on the plans and a hatch opening needs to be created for access. Parklet platforms proposed under overhead utility lines will be required to meet the minimum distance requirements as established by the CPUC. Parklet platform sponsors must provide access to any City or public utility company that may have underground conduits beneath the constructed parklet platform. If there is a maintenance need or an emergency, any parklet platforms covering utilities will be required to be removed and restored at the owner’s expense.
• Storm Drains – A minimum clearance of 4 feet from each side of the storm inlets/catch basins will be required to allow for maintenance access.

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• Sidewalk Underdrains –Parklet platforms that block the outlet of a sidewalk underdrain will be required to ensure the outlet is functional and flowing. Take a thorough inventory of utility access covers in the proposed parklet platform area.
• Fire Hydrants – Parklet platforms cannot be built in front of Fire Hydrants. A 15-foot clearance from the hydrant (7.5- foot each side) along the curb shall be maintained. A 3-foot circumference around the hydrant on all sides should also be maintained. • Fire Department Connections (FDCs) – To maintain access to FDCs, 5-foot wide openings should be provided between every 2 adjacent parklets platform (and no more than 75-feet apart).

III. Parklet Platform Design Elements
Parklet platforms generally consist of the following key elements:

A) A Platform that allows a level dining area to serve as an extension of the sidewalks.

B) Railings or enclosures that demarcate the exterior of the parklet from the emergency vehicle access lane and surrounding business dining areas.

D) Furnishings and fixtures that are property of the businesses used in day-to-day operations such as tables, chairs, and heaters.

A. Platform Design Criteria
• Materials – Parklet platforms must be constructed from durable materials that can withstand wear and tear of elements. Pouring concrete for parklet platforms is not allowed. You may use concrete pavers on a platform structure instead. Surface materials must be textured or treated with a non-skid coating to ensure a safe walking surface. Loose particles, such as sand or loose stone, are not permitted.
• Maintenance access – Parklet platforms must be designed to provide access underneath the platform to allow for maintenance (i.e. repairs or clearing debris). If the platform base is not a solid mass, access can be provided through access panels, removable pavers, or other means. • Platform Threshold - The parklet platform threshold must be flush and even with sidewalk and must not leave a gap greater than 1/2 inch, nor a vertical separation greater than 1/4 inch. • Drainage – Parklet platforms shall allow for curbside drainage flow. A 6-inch height by 12-inch width minimum clear gutter space must be provided along the entire length of the proposed platform. Openings at either end of the parklet platform may be covered with screens to prevent debris buildup beneath the platform and in the gutter. It is the responsibility of the parklet platform permittee to clean the cover or screen to prevent any backup of storm water.

All parklet platforms must provide access through the parklet platform or threshold to the gutter adjacent to the curb.
• Bolting Not Allowed - At no time may structures be bolted or affixed in any way to the roadway or any structure (including but not limited to buildings, fire hydrants, street trees, streetlight, parking meters, or traffic poles, etc.).

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Source: San Francisco Parklet Manual
• Sub-structure - Designs for the sub-structure of a parklet platform vary and depend on the slope of the street and overall design for the structure. The sub-structure must accommodate the crown of the road and provide a level surface for the parklet. “Bison pedestals” (pictured below) spaced under the surface and of different heights are a common application. Another method is to provide steel sub-structure and angled beams.

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• ADA Accessibility - All accessibility elements of the proposed platform shall be designed, constructed and/or conform to the applicable provisions, rules, regulations and standards of the California Building Code and Americans with Disabilities Act. ADA rules change periodically and it is the responsibility of the Owner with the outdoor dining platform to keep up with the changes and modify as necessary.
o Accessible Platform Surface - The portion of the parklet platform connected by the accessible path of travel to the wheelchair turning space and wheelchair resting space must be level. The accessible platform surface maximum cross slope (perpendicular to the sidewalk or curb) and running slope (parallel to the curb) cannot exceed a ¼ inch rise per foot in any direction.
o Street Crown - Note that given the crown of the street in many locations, in order to achieve an ADA compliant platform surface, the parklet platform may need to be higher than the adjacent sidewalk (as opposed to being flush with the sidewalk) and will require a ramp for access. (See the picture below for an example of how this can be achieved.)
o Accessible entry - Shall be a minimum of 48 inches wide. o Accessible path of travel - It must connect the sidewalk to the accessible entry, platform surface, wheelchair turning space, and wheelchair resting space. o Wheelchair turning space - Shall be 60 inches in diameter and located entirely within the platform; a 12-inch maximum overlap on the curb and sidewalk is acceptable.
o Wheelchair landing - A 30-inch by 48-inch clear floor area. It’s permitted to overlap with the wheelchair turning space by 24 inches maximum in any orientation.

B. Parklet Platform Railings/Enclosures
The parklet platform railing/enclosure marks the boundary between the parklet and the emergency vehicle access lane. It should serve as a safe edge while also being visually appealing, permeable, and inviting. The following standards and guidelines should inform your design.

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• Stable and sturdy enough not to fall over or be pushed over (must withstand 250-lbs of force). • The parklet platform should have an edge as a buffer from the emergency vehicle access lane.

This can take the form of planters, railing, cabling, or some other appropriate enclosure. • Openings in rails must prevent passage of 4-inch sphere. • The height should not exceed 36 inches from the parklet platform floor to the top of the railing. o If you wish to install wind barriers taller than 36 inches, the use of transparent materials like acrylic, plexiglass, plastic films, etc. is required. Posts to secure the transparent wind barrier is allowed around the material (both horizontally and vertically) but shall not exceed 2.5 inches in diameter.
o If transparent wind barrier materials are used, the height of the railing, including the transparent materials and any top rail, should not extend more than 6 feet from the floor platform.
o Any vertical posts securing the transparent wind barriers should have a minimum spacing of 6 feet apart on center to allow for adequate sight distance. • Parklet platforms near corners and intersections should not block the view of conflicting movements of traffic, including pedestrian traffic, nor block the view of traffic control devices such as traffic signs, traffic signals, and other traffic warning devices. • All railings/enclosures must have retro-reflective reflectors or retro-reflective tape on the corners of the parklet platform such that they are visible by pedestrians at night. Roofs, trellises, and tent shade structures are not allowed. The use of sail-style shades and retractable canopies may be considered but will require additional fortifications for support which will require additional staff review. Engineering calculations may be required as supporting documentation.

D. Furnishings and Fixtures
All furnishings and fixtures must be designed to be weighted down for wind protection. Items may need to be stored inside the business during periods of high winds. Please ensure that the weights used do not create tripping hazards for pedestrians.
• Portable Heaters –Space heaters are permitted if they are outdoor-use approved, used accordance with the manufacturer's recommendations, and located at least 2 feet from the edge of any umbrella canvas, any foliage, or any other flammable objects or materials. Heaters are not allowed under umbrellas but can be placed near them if clearances are maintained. • Umbrellas – Umbrellas shall be fire-retardant or manufactured of fire-resistant material. No portion of an umbrella shall be less than eighty (80) inches above the parklet platform. • Electrical connections – All wiring and electrical cords must be exterior rated, GFCI protected, and UL listed. Cords must not create tripping hazards on the sidewalk. If the cords cross above the sidewalk, they must provide a minimum clearance of 10 feet above the sidewalk and the platform of the parklet. The use of adapters is prohibited. Businesses are not allowed to tap into existing City electrical connections such as twinkle light outlets or streetlight poles.

Generators are not allowed in association with any outdoor dining encroachment permit. • Lighting – Lighting is encouraged and may be provided through electrical connections to the building. Solar powered lighting is strongly encouraged. Light strings must be hung to allow for a

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minimum clearance of 10 feet above the sidewalk and the platform of the parklet. Lighting cannot be attached or wrapped around City trees, signposts, light poles, or other City assets. • Signage – Signs are allowed provided the sign area does not exceed 6 square feet (24 inches by 36 inches). Illuminated signage is not allowed. Sign copy is limited to business identification, except if the parklet platform is meant to serve the general public, signage should reflect such. If the parklet platform is meant to serve as restaurant seating, signage should correlate in design with the signage on the primary building.

IV. Operational Standards
• Private Control – Parklet platforms will be considered private space under the control of the permit holder. The permit holder is responsible for securing the parklet platform and any fixtures and furnishings contained within it during hours when the associated business is not in operation.
• No Outdoor Food Preparation – Outdoor food preparation is not permitted. No heating, cooking or open flames are permitted in any outdoor dining area. Hotpots, barbecues, or other heating of food in the public right of way is not allowed. • No Open Flames - Candles and open flames are not allowed for any outdoor dining area. • Alcohol Service – Restaurants and food establishments licensed by the State of California’s Alcohol Beverage Control (ABC) will be permitted to sell and allow on-premise consumption of alcoholic beverages. Alcohol service is only allowed under full-service conditions and alcoholic beverages consumed in parklet platforms are not allowed to be provided in to-go containers.

Establishments that serve alcoholic beverages in the parklet platform area shall be required to meet all requirements of the Alcoholic Beverage Control Board and any other federal, state, or local laws and regulations governing the sale and consumption of alcoholic beverages. • Site Maintenance – Parklet platforms shall be maintained free of litter, refuse, and debris. The area shall be scrubbed and mopped to remove any food or drink stains on a daily basis by the permittee. Such cleaning shall be in accordance with the City’s Storm Water Management and Discharge Control Program, which prohibits any discharge other than rainwater into the storm water drainage system.
• ADA Compliance – Parklet platform seating areas must comply with all requirements of the Americans with Disabilities Act (ADA) and provide sufficient clearance and walkway space to allow safe access and egress.
• Hours of Operation – The parklet platform shall adhere to the same approved hours of operation as the associated business.
• Safety Inspections – The City will be making periodic safety inspections and reserves the right to require adjustments or removal of any elements, if deemed unsafe.

V. Permit Requirements
A. Permit Submittal Requirements
A Parklet platform Encroachment Permit is required for all installations. Permit applications must be submitted prior to the construction of any new parklet platform.

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The following submittals are required:
• Plan sets are required. Plans shall be drawn to scale and the minimum page size for submittals are 11 x 17 ledger paper. It is recommended that plans are prepared by a design professional, such as an architect or engineer. The submitted plans should show the proposed layout of the parklet platform including:
o The parklet platform location (business frontage and site address). o Dimensions of outdoor dining structure including platform, railings, stormwater access, and tress in the immediate area and in the proposed parklet platform. o Location of any adjacent public utilities in the street including curb drains, manhole covers, water shut-off valves, sidewalk utility boxes, streetlight poles, gutter drains, fire hydrants, mailboxes, etc.
o Plans must demonstrate ADA accessibility and show dimensions of required clearances. • Materials palette – Use color photo samples to demonstrate:
o Materials and plants to be used on platform
o Railing materials
o Platform materials
o Proposed sail shades or retractable canopies
• A valid City of San Mateo Business Tax Certificate, sometimes referred to as a business license. • Evidence of current insurance coverage including a Certificate of Liability Insurance and Endorsements.

Prior to submitting a parklet platform application and paying the fee for the permit review, businesses should first schedule a pre-submittal meeting with the City to go over their proposed submittal to ensure that their application is complete and is consistent with these standards. After review, the City may still require additional documents, drawings, or information.

B. Failure to Maintain
Parklet platform sponsors who fail to properly and sufficiently maintain the cleanliness, safety, and accessibility of their parklet may be subject to violations and fines. If maintenance issues are not resolved, the City may revoke the encroachment permit and parklet platform sponsors may be required by the City to remove the parklet platform at their own expense.

C. Street Repaving & Utility Maintenance and Public Safety Emergencies The City needs to repave the street every few years and because parklet platforms may sit atop buried utilities, there may be instances where your parklet platform will need to be removed to maintain the street or access the utility beneath it. In the event of necessary street infrastructure or utility maintenance or the unlikely event of a utility failure such as a gas leak or water main break that threatens public safety, the City or utility owner may remove parklets platforms with little or no notice.

Parklet platform sponsors are responsible for the cost of re-installing and restoring any damage to the parklet platform.

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D. Parklet Platforms Removal
If for some reason the parklet platform sponsor decides no longer wants to maintain a parklet platform, the parklet platform sponsor is responsible for notifying the City and removing it at the parklet platform sponsors’ own expense. Immediately upon removal the parklet platform area including the street shall be cleaned and restored to its previous condition to the satisfaction of the City.

E. Parklet Platforms are Nontransferable
If a business changes ownership and the new business wants to continue with the permit, the new business must submit a new application, pay fees, and provide insurance to the City within 30 days of ownership change.

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For More Information:

For questions or additional information regarding these Pedestrian Mall Parklet Platform Program Standards or the Pedestrian Mall Parklet Platform Encroachment Permit application, please contact:

Jennifer Chen, Economic Development Manager
[email protected]
(650) 522‐7009

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Outdoor Dining
Citywide Parklet
Program Standards
For Food Serving Businesses Located
in Commercial Districts
outside of the Pedestrian Mall
As
Revised
July 2023
Exhibit B

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B
. PARKLET ENCROACHMENT PERMIT– Allows ground-food service businesses located outside the Pedestrian Mall (B Street between 1st and 3rd Avenue) to construct a dining platform within on- street parking spaces directly in front of their business. Parklets are allowed City-wide in commercial districts (except along El Camino Real, shopping centers, or private parking lots).

C
. SIDEWALK AND PEDESTRIAN MALL FURNISHINGS ENCROACHMENT PERMIT – Allows ground- floor food service businesses to provide outdoor seating and related furniture along the sidewalk in commercial districts and inside the street within the Pedestrian Mall (B Street between 1st and 3rd Avenue) without building a flat platform. Sidewalk dining is not allowed along El Camino Real. This permit is not required for furnishings provided on parklet platforms or in conjunction with a parklet permit.

All three programs require an Encroachment Permit from the City of San Mateo. Encroachment permits are not available to food service businesses located in shopping centers or businesses on El Camino Real, because these locations are not under the City’s control. Only food service businesses with brick and mortar storefronts may apply for encroachment permits to serve food or drinks.

This set of standards applies to only businesses who wish to build a parklet in a commercial district outside of the Pedestrian Mall (B Street between 1st & 3rd Avenue). Due to the unique circumstances of each proposed parklet location, there may be instances where City staff requires additional design elements not covered in these standards. The City of San Mateo will review the application and will approve submittals that meet the requirements set forth by these standards.

Plans must be submitted by the business sponsor and permits must be issued by the City prior to any construction or modification. The Parklet applications will be subject to a one-time permit application review fee, an annual permit fee as defined in the City Fee Schedule, and an inspection fee from San Mateo Consolidated Fire as defined in the SMCF Fee Schedule.

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II. Location and Setback Criteria
Parklets are generally allowed in commercial districts along the curbside on public streets where on- street parking spaces exist. However, parklets are not allowed along El Camino Real because it is a State- controlled roadway and is not under the City’s jurisdiction.

Parklets can be considered in commercial districts where there are or would be space(s) for on-street parallel, angled, or perpendicular parking, including spaces with metered or unmetered parking. Parklets are not allowed in ADA/accessible parking spaces or red curb zones. Parklets proposed in loading zones and in 24-minute parking spaces will be considered on a case-by-case basis.

A. Location Criteria
• Adjacency to Storefront - Parklets may only be installed along the frontage of the storefront that is applying for the parklet. Parklets are not allowed to use the frontage of adjacent s
torefronts to expand their territory unless they receive the written consent of the adjacent business. However, minor encroachments on adjacent storefront frontages may be allowed depending on the dimensions of the parking stalls being used for the parklet installation.

Parklets shared with adjacent businesses will be considered on a case-by-case basis. The shared parklet area cannot exceed the frontage for the combined businesses. o Consent terms – Adjacent business must provide consent on an annual basis for the p
arklet to extend to neighboring frontage.
o Change of adjacent business owner – If the adjacent business ownership change, the consent carries through the existing annual period and the adjacent owner must inform the new owners of the existence of this consent.
o Annual written renewal – adjacent business must affirm the use of their storefront during the annual renewal period for the parklet. If the renewal is not granted, it is the s
ole responsibility of the parklet owner to make any required adjustments to the parklet dimensions.
• Maximum Parking Stalls - A maximum of two parallel parking spaces or four perpendicular or angl
ed parking spaces shall be used for each parklet.
• Parallel parking spaces - Parklets located in parallel parking spaces can be the length of one or two parallel parking spaces. A 4-foot inner buffer is required when adjacent to another parallel p
arking space. A 2-foot buffer is required when adjacent to a driveway, motorcycle parking, or a b
icycle corral.
• Perpendicular and angled parking spaces - Parklets located in perpendicular or angled parking spaces can utilize a maximum of two to four combined parking spaces. The edge of the parklet m
ust be set back 4 feet from the adjacent parking space on either side. • Corner locations - Parklets located adjacent to intersection crosswalks shall provide 25-foot s
etbacks from the nearest crosswalk. Parklets that cannot meet these setback requirements may be considered on a case-by-case basis based on whether sight distance and safety can be maintained. In addition, storefronts located at corner locations may only have one parklet.

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• Fronting driveways - Parklets may be installed in front of a driveway if the driveway has been abandoned or no longer provides access to off-street parking. The driveway may be leveled as part of the conditions for the parklet project. Parklets may not obstruct driveways or entrances to City-owned parking facilities.

B. P
arklet Setbacks
• Travel Lane Setback – Parklets shall have a 2-foot minimum setback from the travel lane m
easured from the parking striping adjacent to the travel lane (see Design and Parklet Placement diagrams below for more information).
• Side Setback – Parklets shall have a 4-foot minimum side setback to the nearest parking space (see Design and Parklet Placement diagrams below for more information).

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C. Other Location Criteria
• Utilities – If a parklet is constructed over utility assets, such as but not limited to valves, access p
anels, or manholes, it should be noted on the plans and a hatch opening needs to be created for access. Parklets proposed under overhead utility lines will be required to meet the minimum distance requirements as established by the CPUC. Parklet sponsors must provide access to any City or public utility company that may have underground conduits beneath the constructed parklet. If there is a maintenance need or an emergency, any parklet covering utilities will be required to be removed and restored at the owner’s expense. • Storm Drains – A minimum clearance of 4 feet from each side of the storm inlets/catch basins will be required to allow for maintenance access.
• Sidewalk Underdrains – Parklets that block the outlet of a sidewalk underdrain will be required to ensure the outlet is functional and flowing. Be sure to take a thorough inventory of utility access covers in your proposed parklet area by checking under parked cars. • Bike Lanes – Parklets cannot obstruct a bicycle lane or path. • Parklet Width – Parklets must stay within the designated parking stall area. • Fire Hydrants – Parklet platforms cannot be built in front of Fire Hydrants. A 15-foot clearance from the hydrant (7.5- foot each side) along the curb shall be maintained. A 3-foot buffe r
a
round the hydrant on all sides should also be maintained. • F
ire Department Connections (FDCs) – To maintain access to FDCs, 5-foot wide openings should be provided between every 2 adjacent parklets (and no more than 75 feet apart).

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III. Parklet Design Elements
Parklets generally consist of the following key elements:

A) A Platform that allows the parklet to serve as an extension of the sidewalks.

B) Railings or enclosures that demarcate the exterior of the parklet from the street and surrounding p
arking spaces.

C) Traffic safety protections to reduce the potential for auto-related damage.

D) F
urnishings and fixtures that are property of the businesses used in day-to-day operations such as, but not limited to, tables, chairs, umbrellas, and heaters.

A. Platform Design Criteria
• Materials - Platforms must be constructed from durable materials that can withstand wear and tear of elements. Pouring concrete for parklet platforms is not allowed. You may use concrete p
avers on a platform structure instead. Surface materials must be textured or treated with a non-skid coating to ensure a safe walking surface. Loose particles, such as sand or loose stone, are not permitted.
• Maintenance access - Parklets must be designed to provide access under the platform to allow for maintenance (i.e. repairs or clearing debris). If the platform base is not a solid mass, access can be provided through access panels, removable pavers, or other means. • Platform Threshold - The platform threshold must be flush and even with sidewalk and must not leave a gap greater than 1/2 inch, nor a vertical separation greater than 1/4 inch. • Drainage - Platforms should allow for curbside drainage flow. A 6-inch height by 12-inch width minimum clear gutter space must be provided along the entire length of the proposed platform.

Openings at either end of the parklet may be covered with screens to prevent debris buildup beneath the platform and in the gutter. It is the responsibility of the parklet permittee to clean the cover or screen to prevent any backup of stormwater. All parklets must provide access through the parklet platform or threshold to the gutter adjacent to the curb. • Bolting Not Allowed - At no time may structures be bolted or affixed in any way to the roadway or any structure (including but not limited to buildings, fire hydrants, street trees, streetlights, parking meters, or traffic poles, etc.). An exception to this is that wheel stops for traffic protection must be bolted to the roadway as described in the Traffic Protection section of these S
tandards.

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Source: San Francisco Parklet Manual
• Sub-structure - Designs for the sub-structure of a parklet platform vary and depend on the slope of the street and overall design for the structure. The sub-structure must accommodate the c
rown of the road and provide a level surface for the parklet. “Bison pedestals” (pictured below) spaced under the surface and of different heights are a common application. Another method is to provide steel sub-structure and angled beams.

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• ADA Accessibility - All accessibility elements of the proposed platform shall be designed, constructed and/or conform to the applicable provisions, rules, regulations and standards of the C
alifornia Building Code and Americans with Disabilities Act. o A
ccessible Platform Surface — The portion of the parklet platform connected by the accessible path of travel to the wheelchair turning space and wheelchair resting space must be level. The accessible platform surface maximum cross slope (perpendicular to the sidewalk or curb) and running slope (parallel to the curb) cannot exceed a ¼ inch rise per foot in any direction.
o S
treet Crown — Note that given the crown of the street in many locations, in order to
achieve an ADA compliant platform surface, the parklet platform may need to be higher than the adjacent sidewalk (as opposed to being flush with the sidewalk) and will require a ramp for access. (See the picture below for an example of how this can be achieved.)
o Accessible entry — Shall be a minimum of 48 inches wide. o Accessible path of travel— The accessible path of travel must connect the sidewalk to the accessible entry, platform surface, wheelchair turning space, and wheelchair re
sting space.
o Wheelchair turning space —Shall be 60 inches in diameter and located entirely within the platform; a 12-inch maximum overlap on the curb and sidewalk is acceptable.
o Wheelchair landing — A 30-inch by 48-inch clear floor area. It’s permitted to overlap with the wheelchair turning space by 24 inches maximum in any orientation.

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B. Parklet Railings/Enclosures
The parklet railing/enclosure marks the boundary between the parklet and the street or sidewalk. It should serve as a safe edge while also being visually appealing, permeable, and inviting. The following standards and guidelines should inform your design.
• Stable and sturdy enough not to fall over or be pushed over (must withstand 250-lbs of force). • The parklet should have an edge as a buffer from the street. This can take the form of planters, railing, cabling, or some other appropriate enclosure.
• Openings in rails must prevent passage of 4-inch sphere. • The height should not exceed 36 inches from the parklet platform floor to the top of the railing. o If you wish to install wind barriers taller than 36 inches, the use of transparent materials like acrylic, plexiglass, plastic films, etc. is required. Glass, tempered glass, and frosted materials or similar materials are prohibited as wind barriers. Posts to secure the t
ransparent wind barrier is allowed around the material (both horizontally and vertically) but shall not exceed 2.5 inches in diameter. o If transparent wind barrier materials are used, the height of the railing, including the transparent materials and any top rail, should not extend more than 6 feet from the flo
or platform.
o Any vertical posts securing the transparent wind barriers should have a minimum spacing of 6 feet apart on the center to allow for adequate sight distance. • The enclosure should not block the view of conflicting movements of traffic, including pedestrian traffic, nor block the view of traffic control devices such as traffic signs, traffic signals, and other traffic warning devices.
• All railings/enclosures must have retro-reflective reflectors or retro-reflective tape on the corners of the parklet facing the travel lane such that they are visible to vehicle traffic at night. • Roofs, trellises, and tent shade structures are not allowed. The use of sail-style shades and retractable canopies may be considered but will require additional fortifications for support which will require additional staff review. Engineering calculations may be required as supporting documentation.

C. Traffic Protections
Parklets are required to provide the traffic protections outlined in this section of the standards. • Wheel Stops – To help protect against moving traffic and parking cars, parklets in parallel parking spaces must be buffered using a wheel stop at a distance of 4-foot from the parklet and 3-foot from the face of curb (see Design and Parklet Placement diagrams on Page 4 and 5 for additional detail). This buffer may also serve as a space for adjacent property owners to accommodate curbside trash collection. Parklets located in angled and perpendicular parking sp
aces do not require a wheel stop unless otherwise specified during the application review

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process. Applicants are required to repair any damages to the roadway caused by the installation of the parklet or wheel stops if later removed. Any repairs shall be performed under a separate encroachment permit and in accordance with applicable City standards for roadway construction.

W
heel stops may be purchased from any vendor but must meet these specifications:
o 3 feet long
o Black rubber with yellow stripes
o Mounted with bolts
o Installed 4 feet from outside ends of Parklet which occupies parallel parking spaces o Installed 3 feet from the curb
• Posts or Bollards – Parklets shall have vertical elements that make them visible to traffic, such as flexible posts or bollards both with retroreflective tape. One possible measure is safe hits posts (as shown in the picture below). These vertical elements shall be placed 2 feet from the edge of the parklet on both sides of the parklet not adjacent to the travel lane. Structural bollards may be required if deemed necessary by the City. • Travel Lane Clearance – Parklets shall provide a minimum 2-foot clearance from the edge of the travel lane (measured from the parking striping adjacent to the travel lane) to ensure safe separation from traffic.

Heaters are not allowed under umbrellas but can be placed near them if clearances are maintained.

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• Umbrellas – Umbrellas shall be fire-retardant or manufactured of fire-resistant material. No portion of an umbrella shall be less than eighty (80) inches above the parklet platform. • El
ectrical connections – All wiring and electrical cords must be exterior rated, GFCI protected, and UL listed. Cords must not create tripping hazards on the sidewalk. If the cords cross above the sidewalk, they must provide a minimum clearance of 10 feet above the sidewalk and the p
latform of the parklet. The use of adapters is prohibited. Businesses are not allowed to tap into existing City electrical connections such as twinkle light outlets or streetlight poles. Generators are not allowed in association with parklets.
• Lighting – Lighting is encouraged and may be provided through electrical connections to the building. Solar-powered lighting is strongly encouraged. Lighting shall not be directed towards the roadway to unintentionally cause glare for vehicles. Light strings must be hung to allow for a minimum clearance of 80” as measured from the parklet platform. Lighting cannot be attached or wrapped around city trees, light posts, sign poles, or other City assets. • S
ignage – Signs are allowed provided the sign area does not exceed 6 square feet (24 inches by 36 inches). Illuminated signage is not allowed. Sign copy is limited to business identification, except that if the parklet is meant to serve the general public, signage should reflect such. If the parklet is meant to serve as restaurant seating, signage should correlate in design with the signage on the primary building.

IV. Operational Standards
• Private Control – Parklets will be considered private space under the control of the permit h
older. The permit holder is responsible for securing the parklet and any fixtures and furnishings contained within it during hours when the associated business is not in operation. • No Outdoor Food Preparation – Outdoor food preparation is not permitted. No heating, cooking, or open flames are permitted in a parklet. Hotpots, barbecues, or other heating of food in the public right of way is not allowed.
• No Open Flames – Candles and open flames are not allowed on the parklets. • Alcohol Service – Restaurants and food establishments licensed by the State of California A
lcoholic Beverage Control (ABC) will be permitted to sell and allow on-premise consumption of alcoholic beverages. Alcohol service is only allowed under full-service conditions and alcoholic beverages consumed in parklets are not allowed to be provided in to-go containers.

Establishments that serve alcoholic beverages in the parklet area shall be required to meet all re
quirements of ABC and any other federal, state, or local laws and regulations governing the sale and consumption of alcoholic beverages.
• Site Maintenance – Parklets shall be maintained free of litter, refuse, and debris. The area shall b
e scrubbed and mopped to remove any food or drink stains on a daily basis by the permittee.

Such cleaning shall be in accordance with the City’s Storm Water Management and Discharge Control Program, which prohibits any discharge other than rainwater into the stormwater drainage system.

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• ADA Compliance – Parklet seating areas must comply with all requirements of the Americans with Disabilities Act (ADA) and provide sufficient clearance and walkway space to allow safe access and egress.
• Hours of Operation – The parklet shall adhere to the same approved hours of operation as the associated business.
• Safety Inspections – The City will be making periodic safety inspections and reserves the right to require adjustments or removal of any elements if deemed unsafe.

V. Permit Requirements
A. Permit Submittal Requirements
A Parklet Encroachment Permit is required for all parklet installations. Permit applications must be submitted prior to the construction of any new parklet.

The following submittals are required:
• Plan sets are required. Plans shall be drawn to scale and the minimum page size for submittals are 11 x 17 ledger paper. It is recommended that plans are prepared by a design professional, such as an architect or engineer. The submitted plans should show the proposed layout of the parklet including:
o The parklet location (business frontage, site address, parking space number, etc.) o Dimensions of parking stalls, parklet structure including platform, railings, stormwater access, and traffic travel lanes in the immediate area and in the proposed parklet. o Traffic protection measures and dimensions of the setbacks from adjacent parking spaces and adjacent traffic lanes.
o Location of any adjacent public utilities in the street including curb drains, manhole covers, water shut-off valves, sidewalk utility boxes, streetlight poles, parking meters, gutter drains, fire hydrants, parking meters, etc.
o Plans must demonstrate ADA accessibility and show dimensions of required clearances • Materials palette – Use color photo samples to demonstrate:
o Materials and plants to be used on the platform
o Railing materials
o Platform materials
o Proposed sail shades or retractable canopies
• A valid C
ity of San Mateo Business Tax Certificate, sometimes referred to as a business license. • Evidence of current insurance coverage including a Certificate of Liability Insurance and Endorsements

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Prior to submitting a parklet application and paying the fee for the permit review, businesses should first schedule a pre-submittal meeting with the City to go over their proposed submittal to ensure that their application is complete and is consistent with these standards.

B. Failure to Maintain
Parklet sponsors who fail to properly and sufficiently maintain the cleanliness, safety, and accessibility of their parklet may be subject to violations and fines. If maintenance issues are not resolved, the City may revoke the encroachment permit and parklet sponsors may be required by the City to remove the parklet at their own expense.

C. Street Repaving & Utility Maintenance and Public Safety Emergencies The City needs to repave the street every few years and because parklets may sit atop buried utilities, there may be instances where your parklet will need to be removed to maintain the street or access the utility beneath it. In the event of necessary street infrastructure or utility maintenance or the unlikely event of a utility failure such as a gas leak or water main break that threatens public safety, the City or utility owner may remove parklets with little or no notice. Parklet sponsors are responsible for the cost of re-installing and restoring any damage to the parklet.

D. Parklet Removal
If for some reason the parklet sponsor no longer wants to maintain a parklet, the parklet sponsor is responsible for notifying the City and removing it at the parklet sponsors’ own expense. Immediately upon removal the parklet area shall be cleaned and restored to its previous condition to the satisfaction of the City.

E. Parklets are Nontransferable
If a business changes ownership and the new business wants to continue with the permit, the new business must submit a new application, pay fees, and provide insurance to the City within 30 days of the ownership change.

For More Information:

For questions or ad ditional information regarding these Parklet Program Standards or the Parklet Encroachment Permit application, please contact:

J
ennifer Chen, Economic Development Manager
[email protected]
(650) 522-7 009

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Outdoor Dining
Sidewalk and Pedestrian Mall
Furnishings
Standards and Application
As Revised
June 2023
Exhibit C

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A. PE DESTRIAN MALL PARKLET PLATFORM ENCROACHMENT PERMIT – Allows ground-floor food service business located within the Pedestrian Mall (B Street between 1st and 3rd Avenue) to construct a dining platform in the closed street directly in front of their business.

B
. PARKLET ENCROACHMENT PERMIT– Allo w s ground-food service businesses located outside the Pedestrian Mall (B Street between 1st and 3rd Avenue) to construct a dining platform within on- street parking spaces directly in front of their business. Parklets are allowed City-wide in commercial districts (except along El Camino Real, shopping centers, or private parking lots).

C. SIDEWALK AND PEDESTRIAN MALL FURNISHINGS ENCROACHMENT PERMIT– Allows ground- floor food service businesses to provide outdoor seating and related furniture along the sidewalk in commercial districts and in the street within the Pedestrian Mall (B Street between 1st and 3rd Avenue) as applicable. Sidewalk dining is not allowed along El Camino Real. This permit is not required for furnishings provided on parklet platforms or in conjunction with a p
arklet permit.

Al
l three programs require an Encroachment Permit. Encr oachment permits are not available to food service businesses located in shopping centers or businesses on El Camino Real, because these locations are not under the City’s control. Only food service businesses with storefronts may apply for encroachment permits to serve food or drinks.

This set of standards ap plies to only businesses wishing to place furnishings on a City sidewalk or within the Pedestrian Mall (B Street Between 1st and 3rd Avenue) that are not being done in conjunction with the building of a parklet platform. Due to the unique circumstances of each proposed outdoor dining location, there may be instances where City staff requires additional design elements not covered in these standards. The City of San Mateo will review the application and will approve submittals that meet the requirements set forth by these standards.

Plans must be submitted by the business sponsor and permits must be issued by the City prior to any placement of dining furniture. The Sidewalk/Pedestrian Mall Furnishings permit will be subject to an annual permit fee as defined in the City Fee Schedule a nd an inspection fee from San Mateo
Consolidated Fire as defined in the SMCF Fee Schedule.

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II. S ubmittal Requirements
T
he following documents and fees are required in order to process a permit for use of the sidewalk or pedestrian mall for outdoor dining:

1. S
idewalk and Pedestrian Mall Furnishing Encroachment Permit Application

2. S
ite Plan Drawings and Photos of Business Frontage
Site plan drawings may be drawn by hand and must include the following information (see sample drawings provided as Attachment 1):
o Label the location of the business on diagram and storefront boundaries. o For sidewalk outdoor dining only: Show existing sidewalk obstructions (fire hydrants, trees, light poles, bike racks, utility boxes, manholes, newspaper racks, etc.) and dimensions between obstructions.
o For pedestrian mall outdoor dining only: show the location of the emergency access lane.
o Show the layout of all proposed furnishings (planters, tables, chairs, umbrellas, heaters, fencing, etc.).
o Photographs of the business frontage.

P
hotographs of the proposed sidewalk or pedestrian mall dining set-up may be submitted instead of a site plan drawing, but the applicant should still specify the distances between obstructions.

3. A
pplication Fee
The applicant is responsible to pay the annual permit fee prior to permit expiration. Fees are non-refundable. The current fee amount ($408.21 as of July 1, 2023) is set forth in the City’s Comprehensive Fee Schedule
.

4. C
ertificate of Liability Insurance
Applicants shall provide proof of commercial general liability (or comprehensive) and property damage insurance and endorsements showing the City of San Mateo as additional insured on the policy and stating that the insurance is primary. See attached insurance standards requirements. Encroachment Permits issued shall be valid only during the term of liability insurance coverage. Applicants are responsible to submit updated insurance documents prior to the expiration date and annual fee. Failure to do so will result in revocation of the permit.

P
lease submit all documents electronically by sending an email to [email protected] o r in person at the Public Works counter at San Mateo City Hall at 330 West 20th Avenue, San Mateo, CA 94403 between 8am to 12pm and 1pm to 4:30pm.

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III. TERMS AND CONDITIONS

1. G
eneral Conditions of Use. Outdoor seating proposed on public sidewalks and within the pedestrian mall areas must meet the following terms and conditions:
• Adjacency to Storefront. Outdoor seating must be located along the frontage of the storefront applying for the permit. Businesses will only be allowed to use a portion of the adjacent business owner’s frontage to expand their outdoor dining area if they obtain a l
etter from the current adjacent business owner stating that they have agreed to allow t
heir frontage to be used. Permission to use the space in front of an adjacent business can be revoked by that adjacent business at any time.
o Consent terms – Adjacent businesses must provide consent on an annual basis for the s
eating area to extend to neighboring frontage.
o Change of adjacent business owner – If the adjacent business ownership change, the consent carries through the existing annual period and the adjacent owner must inform the new owners of the existence of this consent.
o Annual written renewal – adjacent business must affirm the use of their storefront d
uring the annual renewal period. If the renewal is not granted, it is the sole r
esponsibility of the permit owner to make any required adjustments to the dimensions for outdoor dining.
• Sidewalk Clearance. Outdoor seating areas must maintain a minimum sidewalk clearance and pedestrian through zone of 4-feet from any physical obstruction. This includes light poles, parking meters, fire hydrants, FDCs, and other fire-related appurtenances, news racks, trees, entryways of adjacent businesses, or other barriers. Tables or seating may be placed near the curb if a minimum of 2-foot clearance to the curb is maintained. Tables or seating shall not be placed within the gutter.
• ADA Accessibility. All seating areas must conform to the applicable provi sions, rules, regulations and standards of the California Building Code ( Title 24, Chapter 11b) and Americans with Disabilities Act.
• Outdoor Cooking Not Allowed. No outdoor cooking is allowed. Examples of types of foods that are considered outdoor cooking are hotpots, table-top barbeques, raclettes, fondues, and similar. In addition, outdoor restaurant busing stations are not allowed. • Live Music. No amplified live music is allowed without a Special Community Events permit from the City of San Mateo.
2 . Furnishings. All outdoor furnishings (tables, chairs, umbrellas, planters, fencing, etc.) must be heavy enough to withstand high winds in order to protect guests and pedestrians. All furnishings may need to be stored inside the business from time to time to accommodate maintenance, cleaning, special events, or during periods of inclement or hazardous weather. Please ensure that weights used to anchor fixtures and furnishing do not create tripping hazards for pedestrians.

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• Bolting Not Allowed. At no time shall any seating, tables, or umbrellas be bolted or affixed in any way to the public sidewalk, roadway, landscaping, or any structure (including but not limited to buildings, fire hydrants, street trees, streetlights, parking meters, or traffic poles, etc.).
• Fences/Railings/Stanchions. Businesses wanting to mark the boundary between the outdoor seating area and pedestrian path of travel are allowed only if the materials can easily be removed at the request of the City for special events and/or required maintenance. The height of these installations should not exceed 36 inches from the ground to the top of the railing, fencing, or stanchions. • Umbrellas. Umbrellas shall be fire-retardant or manufactured of fire-resistant material. No portion of an umbrella shall be less than eighty (80) inches above the ground. • Canopies Not Allowed. Tents, canvas, roofs, or shade structures are not allowed on the sidewalk.
• Portable Heaters. Space heaters are permitted if they are an outdoor approved type, are lo
cated in accordance with the manufacturer's recommendations, and are located at least 2 feet from the edge of any umbrella canvas, any tree foliage, and any other flammable object or material. Heaters are not allowed directly under umbrellas but can be placed near them if clearances are maintained.
• Electrical connections. All wiring and electrical cords must be exterior rated, GFCI protected, and UL listed. Cords must not create tripping hazards on the sidewalk and must be hung to allow for a minimum clearance of 10 feet above the sidewalk and cannot be attached or wrapped around existing trees, light posts, sign poles, or other City assets. The u
se of generators is prohibited. Businesses are not allowed to tap into existing City electrical connections such as twinkle light outlets or streetlight poles. Utilization of existing City electrical connections shall be the cause of termination of the permit.

3. S
ite Maintenance. Outdoor seating areas shall be maintained free of litter, refuse, and debris. The area shall be swept, scrubbed, and mopped to remove any food or drink stains on a daily basis. Such cleaning shall be in accordance with the City’s Storm Water Management and Discharge Control Program, which prohibits any discharge other than stormwater into the stormwater drainage system.

Failure to maintain the site or complaints received by the City related to lack of cleaning or upkeep shall be cause for termination of the permit.

4. N
otice for Removal. The outdoor furnishings may need to be removed to allow for the City and/or u
tility companies to access the sidewalk or pedestrian mall area for maintenance, repairs, special ev
ents and/or other purposes. While the City and/or utility companies will try to give a 72-hour advance notice, it may not be possible when dealing with emergency repairs. Additionally, the City will n
ot cover business losses related to the loss of seating or business interruptions due to construction or s
pecial events.

6. T
ransfer. Applicant may only use the dining area for their business. Applicant may not lease/rent or

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receive funds for the seating area to another operator. If a business changes ownership and the new business wants to continue with the permit, the new business must submit a new application, pay fees, and provide insurance to the City within 30 days of ownership change.

7. Te
rm. The permit is valid for a maximum of one year. Applicant must renew permits annually and pay for permit fees and update insurance information.

8. Ce
rtificate of Liability Insurance. Applicants must provide proof of commercial general liability (or c
omprehensive), workers compensation, and property damage insurance including endorsements showing the City of San Mateo as an additional insured on the policy and stating that the insurance is primary with regard to the City of San Mateo. The detailed insurance standards are provided in Attachment 2 to these Terms and Conditions. It is the applicant’s responsibility to update insurance prior to permit expiration. Failure to do so will result in revocation of the encroachment permit.

9. Termination. The City reserves the right to terminate the permit without cause. In addition, the permit may be revoked due to failure to comply with the terms and conditions of the permit.

10. A
dditional Provisions for Outdoor Seating Located on the Pedestrian Mall:
• Canopies Not Allowed. Tents, canvas, and roofs are not allowed in the pedestrian mall even if t
hey are temporary/removable. Umbrellas are the only forms of shade protection allowed. • ADA Considerations. Due to the slope of the street within the pedestrian mall, restaurants placing dining in the street may also need to have tables available on the sidewalk in order to satisfy ADA accessibility requirements. It is the permittee’s responsibility to ensure ADA compliance.
• Maintenance and Special Events. When the City or other utilities need to perform street m
aintenance or when City-sponsored events are planned, the City will provide businesses with 72 hours advance notice to remove all furnishings from the pedestrian malls. If a business does not comply with this condition, its encroachment permit may be terminated and the City will re
move the furnishings at the permit-holders expense and the furnishings will not be returned.

Businesses wanting to host a special event will need to apply for a Special Community Events permit from the City.
• E
mergency Access Lane. The center access lane must be kept clear at all times for emergency vehicle access and for short-term commercial vehicle loading, which is allowed from midnight to 10 am daily.

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Attachment 1
Sample Site Plan (1 of 2)
Sidewalk Dining Si te Plan

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Sample Site Plan (2 of 2)
Pedestrian Mall Closed Street D ining Site Plan

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Attachment 2

CITY OF SAN MATEO

STANDARDS FOR INSURANCE

SIDEWALK AND PEDESTRIAN MALL FURNISHINGS ENCROACHMENT PERMIT Permittee shall procure and maintain for the duration of the permit insurance against claims for injuries to persons or damages to property which may arise from or in connection with Permittee’s operation and use of the public right-of-way. The cost of such insurance shall be borne by Permittee.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including liquor liability coverage, products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

Workers’ Compensation:

Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease. (for Applicants with employees).

Property Insurance: Property insurance against all risks of loss to any tenant improvements or betterments, at full replacement cost with no coinsurance penalty provision.

If Permittee maintains broader coverage and/or higher limits than the minimums shown above, the City of San Mateo requires and shall be entitled to the broader coverage and/or higher limits maintained. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of San Mateo.

OTHER INSURANCE PROVISIONS:

The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its elected and a ppointed officials, employees, and agents, are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or opera tions performed by or on behalf of the permittee including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Permittee’s insurance (at least as broad as ISO Form CG 20 10).

Primary Coverage

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For any claims related to this permit, the Permit tee’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its elected and appointed officials, employees, and agents. Any insurance or self -insurance maintained by City, its elected or appointed officials, employees, or agents shall be excess of the Permittee’s insurance and shall not contribute with it.

If Permittee will serve alcoholic beverages, the general liability insurance shall include liquor liability coverage covering the sale of alcohol. Permittee must have a valid liquor sales license.

Alcohol Service – Restaurants and food establishments licensed by the State of California Alcohol Beverage Control (ABC) will be permitted to sell and allow on-premise consumption of alcoholic beverages. Alcohol service is only allowed under full-service conditions and alcoholic beverages consumed in parklet platforms, sidewalks, and parklets are not allowed to be provided in to-go containers. Establishments that serve alcoholic beverages shall be required to meet all requirements of the Alcoholic Beverage Control Board and any other federal, state, or local laws and regulations governing the sale and consumption of alcoholic beverages.

Notice of Cancellation
Each insurance policy required above shall provide that c overage shall not be canceled, except with 30 days’ prior written notice to City.

Waiver of Subrogation
Permittee hereby grants to City a waiver of any right to subrogation which any insurer of said permittee may acquire against City by virtue of the payme nt of any loss under such insurance.

Permittee agrees to obtain any endorsement that may be necessary t o affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement f rom the insurer.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Self-I nsured Retentions
Self-insured retentions must be declared to and approved by the City. At the option of the City, either: the permittee shall obtain coverage to reduce or eliminate such self -insured retentions as respects the City, its elected and appointed officials, employees, and agents; or the permittee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. The policy language shall provide, or be endorsed to provide , that the self-insured retention may by satisfied by either the named insured or City.

Verification of C overage
Permittee shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy

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listing all policy endorsements to City before permitted activities begin. However, failure to obtain the required documents shall not waive the permittee’s obligation to provide them. The City reserves the right to require complet e, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.

Special Risks o
r Circumstances
City reserves the right to modify these requirements at any time, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Application on the following pages

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PERMIT APPLICATION
Property Owner Contact: _________________________________________________________ Property Owner Phone/email: ___________________________ Describe where the tables and chairs will be placed ___________________________________________ P
lease include the following attachments:

1. Site Plan- Drawn to scale, no smaller than 8.5’’ by 11”. Plans may be drawn by hand or d
imensions may be provided over printed photographs. Sample site plans are attached for r
eference.

Please include the following information on the site plan:
o Label the location of the business on diagram and storefront boundaries. o For sidewalk outdoor dining only: Show any existing sidewalk obstructions (fire hydrants, trees, light poles, bike racks, utility boxes, manholes, newspaper racks, etc.) a
nd dimensions between obstructions.
o For pedestrian mall outdoor dining only: show the location of the emergency access lane.
o Show the proposed layout of all proposed furnishings (planters, tables, chairs, umbrellas, heaters, fencing, etc.)
o Photographs of the business frontage

2. Evidence of Commercial General Liability (or Comprehensive) and property damage Insurance for one year endorsing the City of San Mateo as additional insured with the City’s address as the certificate holder. Insurance must be updated annually or the permit will be revoked. Insurance must meet the attached standards or a permit will not be issued.

3. P
ayment in the amount of $408.21 in the form of a check, money order, or credit card. All credit card transactions will incur a 3% non-refundable service charge.

Business Name San Mateo Business License Number
Address Contact Phone
City Zip Alternate Phone
Email address Type of business
Contact Person

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COMPLETE AND SUBMIT APPLICATION TO: [email protected] P ublic Works Department City of San Mateo
330 W. 20th e Avenue San Mateo, CA 94403
QU
ESTIONS MAY BE ANSWERED BY EMAILING OR CALLING:
[email protected] or 65 0 522.7009.

O
nce the encroachment permit is issued, the permittee must notify the Public Works inspector 72 hours prior to the initial start of work. Contact [email protected] 6 50- 522-7000 Ext. 6900 to schedule an inspection.

1. I [insert name] hereby affirm that I
have notified my landlord that I will be placing table and chairs in the sidewalk and/or pedestrian mall and ha ve confirmed that I am not prohibited by any lease or rental agreement from placing furnishings in front of my place of business and I agree to abide by the conditions and restrictions of Municipal Code Chapter 17.08 and 27.87.

2. I agr ee to abide by and the terms and conditions attached to the encroachment permit and all other applicable laws and regulations.

3. I
agree to hold harmless and indemnify the City of San Mateo (CITY), its elected and appointed officials, employees, and agents from and against any and all claims, loss, liability, damage, and expense arising out of Applicant’s activity, except for those claims arising out of C
ITY’s sole negligence or willful misconduct. I agree to defend CITY, its elected and appointed officials, employees, and agents against any such claims.

S
ignature of Applicant I understand and agree to comply with all conditions of this application for a Sidewalk and Pedestrian Mall F urnishings encroachment permit for outdoor restaurant seating in accordance with the City of San Mateo Municipal Code Chapters 17.08 and 27.87 and other local, state and federal laws governing accessibility as they apply to this permit.

S
ignature of Authorized Applicant Date
Reviewed and approved by Public Works staff Reviewed and approved by Public Works Inspector
Name Date Name Date

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Exhibit D

NEW USER FEES

DESCRIPTION OF SERVICES

REFERENCE

UNIT FEE PAGE
#
ITEM
#
Pedestrian Mall Parklet Platform
Encroachment Permit Application Fee

10.2 A (11) Per
Permit
application
$530.00
JUSTIFICATION:

The Pedestrian Mall Parklet Platform Encroachment Permit Application Fee is a one-time fee submitted at the time of initial application for a Pedestrian Mall Parklet Platform Encroachment Permit and is intended to cover the staff time and resources spent reviewing and inspecting a new parklet platform installation within the Pedestrian Mall. 2023-2024
(include CPI
adjustment)
DEPARTMENT:

Public Works A

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Exhibit E

NEW USER FEES

DESCRIPTION OF SERVICES

REFERENCE

UNIT FEE PAGE
#
ITEM
#
Pedestrian Mall Parklet Platform
Encroachment Permit Fee

10.2 A (11) Per Annual
Renewal
Fee
$408.21
JUSTIFICATION:

The Pedestrian Mall Parklet Platform Encroachment Permit Fee is an annual fee required to be paid by parklet sponsors to provide compensation for parklet platform installations within the Pedestrian Mall. (INCLUDE this revenue in your projections for 2023-2024.) 2023-2024
(include CPI adjustment)
General Fund:
$4,100
Special Fund:
$
DEPARTMENT:

Public Works
A

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From: Patrice Olds
To: Kathy Kleinbaum
Subject: FW: Please do not remove outdoor seating
Date: Tuesday, May 16, 2023 12:44:51 PM
For next time
-----Original Message-----
Sent: Tuesday, May 16, 2023 9:29 AM
To: City Council (San Mateo) <[email protected]> Subject: Please do not remove outdoor seating
Hello,
As a resident of the city of San Mateo and an avid patron of the local restaurants, I would be extremely saddened to see outdoor seating taken away, it gives local businesses an opportunity to thrive and residents so much joy to spend time outside. If anything, please EXPAND the ability for restaurants to open up seating outside! I have so many fond memories enjoying our city’s amazing weather and phenomenal food on B st, and it would be a huge shame to take that away. Not to mention those of us that enjoy taking our dogs out with us! Please do not restrict Wurstall or the many other restaurants from thriving in our city! Sincerely,
Madeleine Prangley

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From: Clerk
To: Kathy Kleinbaum; Jennifer Chen
Subject: FW: Please support outdoor dining downtown!
Date: Monday, June 5, 2023 8:25:56 AM
FYI
Martin McTaggart
Deputy City Clerk | City Clerk’s Department
330 W. 20th Ave., San Mateo, CA 94403
650-522-7044 | [email protected]

-----Original Message-----
From:

Sent: Sunday, June 4, 2023 10:42 AM
To: City Council (San Mateo) <[email protected]> Cc: Clerk <[email protected]>
Subject: Please support outdoor dining downtown!
I loved the outdoor Biergarten at Wursthall and I want it to come back. San Mateo should invest in and support outdoor spaces for businesses and residents to thrive!
Regards,
Adam Parker
Burlingame Resident

301 of 597

From: Patrice Olds
To: Kathy Kleinbaum
Subject: FW: Please support outdoor dining downtown!
Date: Wednesday, May 24, 2023 7:30:41 AM

Patrice M. Olds, MMC
City Clerk
City of San Mateo
330 W. 20th Avenue
San Mateo, CA
94403-1388
[email protected]
www.cityofsanmateo.org
(650) 522-7042

From: S
Sent: Wednesday, May 24, 2023 6:25 AM
To: City Council (San Mateo) <[email protected]> Cc: Clerk <[email protected]>
Subject: Please support outdoor dining downtown!

I loved the outdoor Biergarten at Wursthall and I want it to come back. San Mateo should invest in and support outdoor spaces for businesses and residents to thrive!

302 of 597

From: Patrice Olds
To: Kathy Kleinbaum
Subject: FW: Please support outdoor dining downtown!
Date: Wednesday, May 17, 2023 8:49:36 AM
-----Original Message-----
From:

Sent: Tuesday, May 16, 2023 10:10 PM
To: City Council (San Mateo) <[email protected]> Cc: Clerk <[email protected]>
Subject: Please support outdoor dining downtown!
I loved the outdoor Biergarten at Wursthall and I want it to come back. San Mateo should invest in and support outdoor spaces for businesses and residents to thrive!
Sent from my iPhone

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From: Patrice Olds
To: Kathy Kleinbaum
Subject: FW: Please support outdoor dining downtown!
Date: Monday, May 15, 2023 9:21:58 AM
-----Original Message-----
From:

Sent: Sunday, May 14, 2023 11:28 AM
To: City Council (San Mateo) <[email protected]> Cc: Clerk <[email protected]>
Subject: Please support outdoor dining downtown!
I really appreciated the outdoor Biergarten at Wursthall and I want it to come back. Downtown San Mateo should invest in and support outdoor spaces for businesses and residents to thrive! Aside from being a healthful amenity, dining outdoors is a suitable use of public space and promotes social and civic life. Streets should be for people, not just cars. Thank you for your consideration.

Sincerely
Wendy Chou
Resident of San Mateo

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From: Patrice Olds
To: Kathy Kleinbaum
Subject: FW: Please support outdoor dining downtown!
Date: Monday, June 5, 2023 11:19:23 AM
-----Original Message-----
From:

From: Patrice Olds
To: Kathy Kleinbaum
Subject: FW: Save the Pedestrian Mall!
Date: Friday, June 2, 2023 8:57:00 AM

Patrice M. Olds, MMC
City Clerk
City of San Mateo
330 W. 20th Avenue
San Mateo, CA
94403-1388
[email protected]
www.cityofsanmateo.org
(650) 522-7042

From:

Sent: Thursday, June 1, 2023 4:28 PM
To: City Council (San Mateo) <[email protected]> Subject: Save the Pedestrian Mall!

·
The City hasn’t done enough to make this space inviting and attractive. We should be helping those businesses to thrive, especially going into summer:

Reduce the onerous requirements for outdoor dining areas and parklet construction;
Provide financial support to build inviting outdoor spaces (funding source - market rate parking fees); and
Build an inviting space with lighting, greenery and seating

We shouldn’t make long-lasting policy based on the desires of less than 20 businesses with a high turnover rate. We should base long-term policy on the people who live, work, and recreate in San Mateo.

“So we beat on, boats against the current, borne back
ceaselessly into the past.”

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To: City Council (San Mateo)
Cc: Clerk
Subject: Please support outdoor dining downtown!
Date: Tuesday, May 23, 2023 9:40:55 PM
I loved the outdoor Biergarten at Wursthall and I want it to come back. San Mateo should invest in and support outdoor spaces for businesses and residents to thrive!
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THE FOLLOWING PUBLIC

COMMENTS WERE SUBMITTED

FOLLOWING THE PUBLICATION

OF THE AGENDA PACKET

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From: Jon New
To: City Council (San Mateo); Amourence Lee; Adam Loraine; Lisa Diaz Nash; Rob Newsom; Richard Hedges Cc: Clerk
Subject: Comment on Item 23: Outdoor Dining Standards and Permits – Amendments Date: Sunday, July 16, 2023 7:11:17 PM
Honorable Council, my name is Jonathan New, and last year I wrote an op-ed in the San Mateo Daily Journal about San Mateo's disappearing parklets. After strong enforcement, and onerous restrictions the non-B St. parklets in San Mateo dwindled from 25 to a paltry 4 today.

I don't know what the success metrics were for the implementation of these rules, but I can't imagine they included an 84% reduction in parklets.

I understand that the parklet item on the docket is largely just applying the existing parklet rules so they apply to B St. But, this seems like a good opportunity to revisit the necessity of some of the restrictions.
- The guidelines include a 25ft setback near crosswalks. This is a huge setback, which effectively eliminates parkets for corner businesses. This is even more unnecessary on streets that are closed.
- Fire hydrants require a 15ft clearance. Again, this seems like a lot. Do parked cars give them a 15ft clearance?
- There's a restriction that corner businesses can only have 1 parklet. What purpose does this serve? Let corner businesses have 2 parklets if they want! - Parklets are prohibited in red curb zones. In my experience, sometimes the curb is red just because there isn't enough room for a car to park there. If we can allow case-by-case access for parklets in loading and 20-minute zones, can we allow case-by-case for red zones? - Roofs, trellises, and tent shade structures are not allowed. If I recall, the reason for this is for safety in case of a car collision. If that's the reason, we should consider permitting these structures on B St since there are no cars to worry about. - I think we should reconsider if there's any way to allow heaters with roof coverings. Other cities seem to manage it ok.

It appears there's a lot of city staff review on a case-by-case basis. Since there's multiple approval steps, parklet owners have expressed frustration in how much this slows things down. It's taken businesses several months to approve the most basic of parklets. Consider a form-based approach or other ways to minimize the approval steps.

Thank you for your consideration.

Jonathan New
San Mateo

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Chris Homs
Partner
Lockehouse Retail Group

San Mateo City Council

July 17, 2023

Dear Honorable Mayor Lee and City of San Mateo Councilmembers:

The Street closures in downtown San Mateo are negatively impacting the ability to lease ground floor retail in the downtown core and at Brickline. In our leasing efforts at Brickline, several tenants have visited the trade area and expressed concerns over the negative impact of the closed streets. B Street is the heart of Downtown San Mateo. Closing two blocks has been a detractor. The Streets feel vacant, devoid of activity, and unwelcoming. Potential customers and patrons are overlooking these two closed streets as vehicular traffic is not allowed.

With the exception of a few restaurants that have added outdoor seating there is no visible gain in having the streets between 1st and 2nd, and 2nd and 3rd Avenues. Stronger restaurant operators have been able to succeed as food is more of a destination. The smaller ‘mom and pop’ food operators and especially the few remaining non-food retailers are experiencing challenges and declining sales. There has been a significant amount of turnover in this area.

Non-food retailers are really the hardest hit here. San Mateo is a market that most shoppers are still driving to in their vehicles or using ride share. Not having the ability to drive these two blocks in Downtown San Mateo cuts off many of these businesses from being seen by passing cars. An even larger issue is that downtown San Mateo is effectively divided into north and south San Mateo as cars are required to around on Ellsworth to the west, and Delaware to the East. We need to unite the downtown, not separate it.

In general, street closures are known to have a negative impact on the lease-ability of the area. I personally worked on the leasing of 135 S B Street. We had several potential non-food retailers that felt the street closures were a reason NOT to proceed.

I have been told by other retail brokers who work downtown San Mateo that their tenants feel the street closures are a negative impact to their sales.

Retail Vacancy rate in the San Mateo Downtown is approximately 6.7% in the Downtown Core. There are currently approximately 18 available retail spaces in the downtown core. Vacancy is not the only factor. Having space occupied is obviously important visually. What is more important is the success of the tenants and business owners within their leased spaces. There is still real vacancy in San Mateo. I am convinced that for the long term success of Downtown San Mateo, the closed streets need to be fully reopened to vehicular traffic.

The City led survey on the pedestrian mall that was the basis of the last City Council Meeting recommended reopening 1st to 2nd Avenue, yet the City chose to keep 1st to 2nd closed. I know I am not alone in saying both blocks should be reopened. The closures are dilutive to Downtown San Mateo.

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Chris Homs
Partner
Lockehouse Retail Group

We believe this decision should be reconsidered per all of the information outlined above. We believe a broader survey should be conducted. The survey should include:

- N. B Street, north of 1st Avenue
- B Street south of 3rd Avenue
- 1st, 2nd and 3rd Avenues
- Property owners, restaurant operators, and retailers

Thank you for your consideration of this matter.

Sincerely,
Chris Homs
Partner
Lockehouse Retail Group

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Outdoor Dining
Standards and Permit
Amendments
Denise Garcia & Jennifer Chen
Management Analyst & Economic Development Manager
City Manager’s Office

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Background
June 2021:

City Council adopted a
permanent parklet permit
program
March 2022:

City Council revised the
sidewalk encroachment
permit to include
pedestrian mall dining
May 2023:

City Council directed staff
to revisit the guidelines to
allow parklet platforms
within the pedestrian mall

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Allows ground-floor food service
businesses to construct a dining
platform within on-street parking
spaces directly in front of their
business. Parklets are allowed City-
wide in commercial districts.

Parklet
City-Wide
Sidewalk and Pedestrian Mall
Furnishings
Existing Outdoor Dining Permits

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Allows ground-floor food service
businesses to provide outdoor seating
and related furniture along the
sidewalk in commercial districts and
on the street within the Pedestrian
Mall.

A separate Sidewalk and Pedestrian Mall
Furnishings Encroachment Permit is not required
for parklet permits (whether citywide or on the
Pedestrian Mall).

Parklet
City-Wide
Sidewalk and Pedestrian Mall
Furnishings
Existing Outdoor Dining Permits

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Proposed Outdoor Dining Permit
Allows ground-floor food service
businesses located within the
Pedestrian Mall (B Street between 1st
and 3rd Avenue) to construct a dining
platform in the closed street directly in
front of their business.

Pedestrian Mall
Parklet Platform

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Amendments to the Standards
• Separated into 3 sets of standards and added
descriptions to each of the 3 outdoor dining options.
• Replaced the term ”Guidelines” with ”Standards”.
• Clarified criteria regarding utilities, storm drains, sidewalk underdrains, and street paving.
• Clarified not needing a separate Sidewalk & Ped Mall
Furnishings permit for parklet permit applicants.

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Permit Fees: Proposed Ped Mall Fees
Encroachment Permit
Name:

One-Time
Application Fee
Annual Fee
Parklet Encroachment Permit $530.00 $265.00 per
parking space used
in parklet
Sidewalk & Pedestrian Mall
Furnishings Permit
None $408.21
Proposed Pedestrian Mall
Parklet Permit
$530.00 $408.21

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Staff Recommendation:
Adopt a Resolution to:
(1) approve amendments to the standards for the various outdoor dining permit programs to allow for parklets to be constructed in the downtown pedestrian malls
(2) amend the fee schedule to create a new fee for parklets in the pedestrian malls
(3) and authorize the City Manager to make further minor administrative amendments to these program standards.

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Thank You
Denise Garcia & Jennifer Chen
Management Analyst & Economic Development Manager
City Manager’s Office

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CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 24 Section Name: PUBLIC HEARING Account Number: 25-3112 File ID: 23-7579 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Community Development Department
MEETING DATE: July 17, 2023
SUBJECT:

Zoning Code Amendments for City Projects, Modifications to Planning Applications, and Height Limitations and Exemptions – Ordinance Introduction
RECOMMENDATION:

Introduce an Ordinance to amend the San Mateo Municipal Code Sections 27.02.060 (Height Limitations and Exemptions),

27.02.140 (Exceptions), 27.06.020 (Zoning Administrator – Powers and Duties), 27.06.050 (Council Consideration and Determination), and 27.08.080 (Planning Application Modifications) to streamline the review process for city projects, clarify the modification process for approved planning applications, and clarify height limitations and exemptions; and determine the amendments qualify for exemption from further environmental review pursuant to California Environmental Quality Act (CEQA) Section 15061(b)(3).

BACKGROUND:

As part of the Community Development Department’s ongoing effort to update the City’s Zoning Code to address deficiencies, improve clarity, and streamline the review process, several amendments are proposed to clarify the review process for City projects, set thresholds for processing modifications to approved planning applications and update the definition for building height limitations and exemptions. Amendments to the Zoning Code require a recommendation from the Planning Commission and adoption by the City Council. The proposed amendments are described in more detail below, with the Draft Ordinance included as Attachment 1. To help explain existing and proposed language, a track- changes version of the proposed amendments is included as Attachment 2.

Government Code Section 65400 requires the City to implement the City’s adopted General Plan, so that it will serve as an effective guide for orderly growth and development. To implement the General Plan, Government Code Section 65860 requires City Zoning Code review processes and requirements to be compatible with the objectives, policies, and programs specified in the General Plan. State law and the City’s Zoning Code (SMMC 27.06.040(c)) requires the Planning Commission to review amendments to the zoning code and make a recommendation to the City Council.

On May 9, 2023, the Planning Commission held a duly noticed public hearing to receive a staff presentation, hear public comment, and review the proposed Zoning Code amendments. There were no public speakers on this item and the Commission expressed general support for the proposed amendments. Following discussion, the Planning Commission voted unanimously (5-0) to recommend that the Council adopt the ordinance as drafted.

DISCUSSION:

City Projects:

The proposed amendments to San Mateo Municipal Code (SMMC) Sections 27.02.140 (Exceptions), 27.06.020 (Zoning Administrator – Powers and Duties), and 27.060.050 (Council Consideration and Determination) are intended to clarify and update the review process for City projects. This includes an exemption for certain project types (such as play structures

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and pump stations), allowing for staff-level review of minor projects (such as ancillary structures) by the Zoning Administrator (ZA), and requiring fewer public hearings before multiple Commissions that make a recommendation to the City Council.

Under current provisions, a City project may be subject to multiple recommendation hearings (i.e., from Parks and Recreation Commission, Sustainability and Infrastructure Commission, and the Planning Commission), with an ultimate decision by City Council. Under the proposed amendments, one commission that is most applicable to the proposed project, would review and make a recommendation directly to City Council. The proposed amendments would not alter or limit the Council’s ability to direct review by additional commissions for City projects that may have broader community interest, unique design or site challenges, or for any other reason. However, the amendments would provide a streamlined path for the review of smaller, less complicated City projects.

Modifications to Approved Planning Applications:

The proposed amendments to SMMC Section 27.08.080 (Planning Application Modifications) are intended to distinguish between different levels of project changes and provide clear criteria for simple changes, minor modifications, and major modifications to projects with an approved planning application. These amendments would also allow for Zoning Administrator discretion in determining the level of modification required based upon the project changes, context, scale and proportion to original approval, and community or decisionmaker interest in the areas affected. The three modification levels are summarized below. The proposed code language can be viewed in the Draft Ordinance (Attachment 1).

Simple Modifications are changes that are substantially consistent with the original planning application approval and would be reviewed and approved through the building permit process. Examples include changes in tree species (due to blight/disease or supply issues), minor changes in parking lot layout with no reduction in parking spaces, revised exterior colors/materials that are similar to the original (due to issues with shipping supplies, original manufacturer being out of business), smaller windows on one or more elevations, or small changes in height or floor area layout, that are still compatible with the overall building design and consistent with applicable policy and code requirements.

Minor Modifications are changes that do not significantly change the nature of the approved use(s), do not significantly intensify the approve uses(s), and would not result in any new or substantially greater environmental effects than the original approved project. Minor Modifications would be reviewed administratively by the Zoning Administrator and may be appealed to the Planning Commission. Examples include change in multiple dwelling unit sizes or floor plans that do not alter the number of dwelling units and changes to site plans due to unavoidable conflicts with underground utilities.

Major Modifications are changes that are substantive changes to the approved site plan or project design; significant changes to the nature or intensification of the approved use; changes that would result in new or substantially greater environmental impacts than the originally approved project; or changes that involve major policy decisions or unique land use characteristics, as determined by the Zoning Administrator. Major Modifications would be subject to the review and approval of the Zoning Administrator, Planning Commission and/or City Council, depending upon the complexity of the changes and the original approving body. Examples include increase/decrease in the number of dwelling units, number of stories, major project redesigns, etc.

Height Limitations and Exemptions:

Currently, SMMC Section 27.02.060 (Use and Bulk) identifies the types of elements that are exempt from the height limit.

These include “parapet walls, chimneys, cooling towers, elevator bulkheads, fire towers, stacks, monuments, ornamental towers, FCC licensed radio transmitters, dish antennae, scenery lofts, spires, water towers, and necessary mechanical appurtenances shall be permitted to exceed the maximum bulk provisions.” This section was last updated in 1981 and is not reflective of roof top elements needed in newer developments, such as HVAC systems, photovoltaic arrays, or generators.

The proposed amendment would modify the title and purpose of this Zoning Code Section and clarify for staff, applicants, and members of the public, the different types of elements/features that are exempt from height standards. The

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amendment retitles the section from “Use and Bulk” to “Height Limitations and Exemptions,” and provides an updated list of exemptions that include:
a. Pergolas, trellises, skylights, attached flagpoles, parapet walls, roof gardens, screens, and similar features related to architectural style;
b. Roof top mechanical equipment (such as cooling towers), elevators (including related equipment and bulkheads), solar collectors, and other mechanical equipment required for the property’s use and size; c. Antennas mounted on a building or property by a public agency for public safety purposes; and d. Other accessory architectural features, subject to a Site Plan and Architectural Review (SPAR) planning application reviewed and approved by the Zoning Administrator.

These proposed amendments could also improve opportunities for rehabilitation or adaptive reuse by providing flexibility for existing and/or historic structures.

The proposed amendments also correct errors where codes are incorrectly cross-refenced and updates references to the chapter-level instead of citing specific code sections. This would reduce the likelihood of errors with future code amendments.

General Plan Consistency:

The proposed amendments are consistent with the general goals and policies of the General Plan in that they support City projects and help facilitate the rehabilitation or adaptable reuse of buildings by streamlining review process, clarifying modification levels and the review process, clarifying limitations and exemptions to building height, and includes clean-up of code cross-references.

NEXT STEPS:

If the Council approves introduction of the Ordinance at the public hearing, the item would be brought back for adoption at a subsequent City Council meeting. If adopted, the Ordinance would become effective 30-days later.

BUDGET IMPACT:

There is no impact to the General Fund. These code amendments are fully funded in the Community Development Department’s annual budget through the Advanced Planning Fund.

ENVIRONMENTAL DETERMINATION:

In accordance with California Environmental Quality Act (CEQA) Guidelines, section 15061(b)(3), introduction and adoption of these ordinance amendments are covered by the "common sense exemption" that CEQA applies only to projects which have the potential to cause a significant effect on the environment. Here, it can be seen with certainty that the ordinance amendments, which include updates to streamline review process for city projects, provide clarity regarding different types of project changes, and provide clarification regarding height limitations and exemptions for roof top elements, will not have a significant effect on the environment per Guidelines Section 15061(b)(3).

NOTICE PROVIDED:

In accordance with Government Code sections 65090 and 65091, and the City’s Municipal Code public noticing requirements, the notice for this public hearing was published in a local newspaper of general circulation, the San Mateo Daily Journal, posted at three public facilities (City Hall, Main Library and King Center), and noticed to the following parties at least ten (10) days in advance of public hearing:
•The City’s Planning “Notify Me” email list; and,
•The interested parties list which includes interested individuals who contacted the City and requested to be added to the project notification list.

PUBLIC COMMENTS:

As of the publication of this agenda report, staff has not received any public comments. Any public comments received after publication of this agenda report will be forwarded to the Council for consideration at the public hearing and will be

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posted to this item online as “Post Packet Public Comments.” There were no written or verbal public comments provided for the Planning Commission public hearing either.

ATTACHMENTS:

Att 1 - Proposed Ordinance
Att 2 - Proposed Ordinance (track changes)

STAFF CONTACT
Julia Klein, Principal Planner
[email protected]
(650) 522-7216

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CITY OF SAN MATEO

DRAFT ORDINANCE
San Mateo Municipal Code Amendments for City Projects, Modifications to Planning Applications, and Height Limitations and Exceptions
WHEREAS, the City wants to provide a clear and streamlined procedure for the review and processing of City projects; and
WHEREAS, the City wants to update the San Mateo Municipal Code (SMMC) regarding modifications to previously approved planning application projects to provide distinctions between different levels of project changes with clear criteria for simple changes, minor modifications, and major modifications; and WHEREAS, the exemptions from building height measurement are intended to clarify the types of roof top elements, equipment, and other features that shall be exempt from building height measurement; and WHEREAS, on May 9, 2023, the Planning Commission held a duly and properly noticed public hearing, received all written and oral public comments, and voted 5-0 to recommend that the City Council approve the Proposed Ordinance.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAN MATEO ORDAINS AS FOLLOWS:

Section 1. Legislative Findings.

At a duly noticed public hearing on ______________, the City Council of the City of San Mateo reviewed and considered the staff report dated ________________, and attachments thereto, the Categorical Exemption, together with comments received during the public review process, and hereby finds and determines that the proposed amendments are consistent with the adopted General Plan in that they support City projects and facilitate the rehabilitation and/or adaptable reuse of existing buildings including historic structures by 1) streamlining review process of City projects, 2) clarifying the process for changes or modifications of approved planning applications, and 3) clarifying height limitations and exemptions to building height.

Section 2. Section 27.02.060 of the San Mateo Municipal Code is amended as follows:

27.02.060 HEIGHT LIMITATIONS AND EXCEPTIONS.
(a) No building, structure, or land shall hereafter be used or occupied, and no building or part thereof, or other structure, shall be erected, raised, moved, reconstructed, extended, enlarged or altered except in conformance with the regulations specified for the district in which it is located, except as described in subsection (b).
(b) The following are exempt from maximum height limitations:
(1) Pergolas, trellises, skylights, attached flagpoles, parapet walls, roof gardens, screens (or similar features necessary to screen roof top mechanical equipment as described in subsection (2)), and

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other similar features related to architectural design or style and that are accessory to the primary structure in function and appearance provided that they do not add floor area. (2) Roof top mechanical equipment such as cooling towers, elevators (including related equipment and bulkheads), solar collectors, and other mechanical equipment required for the property’s use and size, provided that all roof top mechanical equipment shall be screened such that it is not visible from the adjacent public right-of-way(s).
(3) Antennas mounted on a building or property by a public agency for public safety purposes. (4) Other accessory architectural features, subject to a Site Plan and Architectural Review (SPAR) planning application reviewed and approved by the Zoning Administrator. (c) For any application exempt under subsection (b), the Zoning Administrator may determine that additional review by the Planning Commission is required based on the size, shape, location, or impacts of the proposed feature in relation to the rest of the development. (d) For improvements or additions to existing nonconforming buildings, the maximum height and bulk regulations set forth elsewhere in this Title shall not apply to:
(1) Improvements required for seismic retrofitting, Americans with Disability Act (ADA) accessibility, required life and safety upgrades, and historic preservation. (2) Mechanical upgrades, including but not limited to equipment upgrades, elevators (including related equipment and bulkheads), HVAC installation, and solar equipment installation; and any screening that may be necessary to screen the above, such that it is not visible from the public right-of- way.

Section 3. Section 27.02.140 of the San Mateo Municipal Code is amended as follows:

27.02.140 EXCEPTIONS.

The following uses in subsection (a) are exempted by this Title and allowed in any district. In addition, City projects that meet the criteria in subsection (b) below are also exempt:
(a) Poles, towers, wires, cables, conduits, vaults, laterals, pipes, mains, valves or any other similar distributing and transmitting equipment for telephone or television communications, electric power, gas, water and sewer lines provided that the installation shall conform when applicable with Federal Communications Commission, State Public Utilities Commission, and Federal Aviation Agency rules and regulations, or any other authorities having jurisdiction and subject to other provisions of this code, City ordinances, rules and regulations.
(b) The City project meets all of the following criteria:
(1) It is accessory and/or ancillary to an existing or approved principal development or use; and

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(2) It is fully or partially funded by the City; and
(3) The City has determined that the project is exempt from the provisions of the California Environmental Quality Act (CEQA).

Section 4. Section 27.06.020 of the San Mateo Municipal Code is amended as follows:

27.06.020 ZONING ADMINISTRATOR—POWERS AND DUTIES.

The Zoning Administrator shall enforce the provisions of this Title, and shall:
(a) Conduct such inspections of buildings, structures, and use of land as are necessary to determine compliance with the terms of this Title;
(b) Establish, with the approval of the Council, and administer rules for the conduct of the Zoning Administrator's office;
(c) Maintain permanent and current records of documents and proceedings under this Title; (d) Provide and maintain a continuing program of education and public information on zoning matters; (e) Recommend abatement of violations of this Title and aid in prosecution thereof; (f) Receive, file, and transmit to the appropriate approval body all planning applications and all appeals which the designated approval body is authorized to review or to take final action upon under the provisions of this Title;
(g) Interpret provisions of the zoning ordinance, subject to appeal of the decision to the Planning Commission;
(h) Have the authority to review and approve, conditionally approve, or disapprove the following types of projects, provided that the projects do not result in any significant impacts pursuant to the California Environmental Quality Act (CEQA), subject to public notice and to appeal of the final action to the Planning Commission:
(1) Site plan and architectural review for:
(A) Projects less than 6 residential dwelling units or 10,000 square feet of non- residential developments;
(B) Other minor site improvements including but not limited to parking lots, landscaping, recreation facilities, accessory structures, recycling collection areas, circular driveways in R-1, R-2 districts;
(C) Fences over 6 feet and those over 3 feet when located in a front yard setback or within forty-five (45) feet of a street intersection line, authorized by Chapter 27.84.

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(D) Freestanding signs.
(2) Site development permits for removal of major vegetation required for the construction of single-family or duplex dwellings, or grading of 5,000 cubic yards or less under Chapter 23.40. (3) Variances as authorized by Chapter 27.78, for single-family, accessory dwelling units, or duplex dwellings and for minor site improvements as described in subsection (h)(1) above. (4) Temporary use permits authorized by Chapter 27.74.
(5) Modifications authorized by Chapter 27.08.
(6) Special permits to allow the following:
(A) Recycling facilities subject to regulations established in Chapter 27.69; (B) Plumbing in detached accessory buildings in the R-1 zone, as authorized under Chapter 27.18;
(C) Substantial removal of existing residences in an R1 zoning district; (D) Temporary real estate sales offices, as authorized under Chapters 26.04 and 27.18; (E) Swimming pools, hot tubs, and spas located in required front or street side yards, as authorized under Chapter 27.18; and
(F) Additional floor area ratio in the R-3 District, as authorized under Chapter 27.22. (7) Concurrent development of two or more contiguous lots or parcels of real property in R-1 and R-2 districts.
(8) Parcel Maps without exceptions as authorized by Title 26 (Subdivision). (9) Single-Family Dwelling Design Review (SFDDR) Applications. (10) City projects that meet the following criteria:
(A) The project was conceptually approved as part of, or approved concurrent with, a Master Plan, program document, or project planning document that is in effect and has been previously approved by the City Council; and
(B) The project does not propose major changes from previous City Council approval; and
(C) The project would not result in a significant environmental impact pursuant to the California Environmental Quality Act (CEQA).

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(i) Notwithstanding the above, the Zoning Administrator may refer the application to the Planning Commission for hearing and action when it is unclear whether the necessary findings for project approval can be made.

Section 5. Section 27.06.050 of the San Mateo Municipal Code is amended as follows:

27.06.050 COUNCIL CONSIDERATION AND DETERMINATION.

The Council shall take final action on:
(a) Appeals from the decisions of the Planning Commission; (b) Reclassifications;
(c) Planned Developments;
(d) Site Plan and Architectural Review for buildings exceeding 55 feet in height; (e) General Plan Amendments;
(f) Historic Building Survey Amendment;
(g) Historic Building Demolition Permit;
(h) Every project which includes as part of the site any parcel of land which is in whole or in part subject to the tidelands trust provisions of State law;
(i) Projects that are fully or partially funded by the City; (j) Downtown Economic Development Permit; and
(k) The initiation and enaction of ordinances, including interim zoning ordinances/moratoria, without having to file a planning application.

Section 6. Section 27.08.080 of the San Mateo Municipal Code is amended as follows:

27.08.080 PLANNING APPLICATION MODIFICATIONS.

An applicant may request modifications to a previously approved planning application prior to or during construction. Examples of such modifications include alteration to an approved building or structure, change in configuration of site improvements, or modification or deletion of conditions of approval. For previously approved Special Use Permits, an applicant may also request a change of use after a project has been completed. A modification shall not automatically extend the approval expiration date beyond that of the original planning application.

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shall determine the type of modification required based on the criteria specified below. This decision shall be final.
(a) Substantial Conformance. Modifications that are in substantial conformance with the original planning application can be approved as part of the building permit review process. (1) Substantial conformance is generally defined as a modification or change that:
(A) Results in a project with reduced or inconsequential changes in size, scale, design, or intensity; or
(B) Is necessary to accommodate parking requirements, utility configurations or other mechanical or operational components of a project identified during building permit review or construction; or
(C) Cumulatively would not result in substantive changes to the overall project. (2) Public notification shall not be required for substantial conformance modifications. (b) Minor Modification. Modifications that result in minor changes to an approved planning application require review and approval by the Zoning Administrator. (1) Minor modification is generally defined as a modification where all of the following circumstances apply:
(A) The modification would not result in a Major Modification, as defined below, to the approved site plan or project design; and
(B) The modification would not significantly change the nature of the approved use(s); and
(C) The modification would not significantly intensify the approved use(s); and (D) The modification would not result in any new or substantially greater environmental effects than the originally approved project.
(2) Public notification to adjacent property owners and occupants is required for a minor modification. The Zoning Administrator shall determine whether additional property owners and occupants shall be notified depending on the nature of the modification, consistent with the notification procedures in Chapter 27.08.
(c) Major Modification. Modifications that result in a significant change require review and approval by the decision making body under Chapter 27.06.
(1) A modification to a project is considered major if any of the following circumstances apply:

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(A) The modifications involve substantive changes to the approved site plan or project design. A substantive change, for the purpose of this section, includes but is not limited to:
(i) A change that is visually conspicuous from the public right-of-way or adjacent properties; or
(ii) A change that results in non-conformance with City standards or policies in order to comply with updated Federal or State laws including. but not limited to, the Americans with Disability Act, Building Code requirements, or Fire Code requirements; or
(iii) A change that alters the intent of a project-specific condition of approval. (B) The modifications significantly change the nature of the approved use; or (C) The modifications significantly intensify the approved use; or (D) The modifications may result in new or substantially greater environmental impacts than the originally approved project; or
(E) The modifications involve major policy decisions or unique land use characteristics, as determined by the Zoning Administrator.
(2) Public notification is required when approval by the Zoning Administrator is required, pursuant to Chapter 27.08. If the original decision maker was the Planning Commission or City Council, whether in the first instance or on appeal, then public noticing and public hearing for approval by the Planning Commission are required. All recipients and interested parties of the previously approved planning application shall be notified.

Section 7. Environmental Determination. In accordance with California Environmental Quality Act (CEQA) Guidelines, section 15061(b)(3), adoption of these ordinance amendments is covered by the "common sense exemption" that CEQA applies only to projects which have the potential to cause a significant effect on the environment. Here, it can be seen with certainty that the ordinance amendments, which consist of updates to streamline review process for city projects, provide clarity regarding different types of project changes, and provide clarification regarding height limitations and exemptions for roof top elements, will not have a significant effect on the environment per Guidelines Section 15061(b)(3).

Section 8. Severability. In the event any section, clause or provision of this ordinance shall be determined invalid or unconstitutional, such section, clause or provision shall be deemed severable and all other sections or portions hereof shall remain in full force and effect.

Section 9. Publication. This Ordinance shall be published in summary in a newspaper of general circulation, posted in the City Clerk's Office, and posted on the City's website, all in accord with Section 2.15 of the City Charter.

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Section 10. Legislative History and Effective Date. This ordinance was introduced on Clerk to complete., and adopted on Clerk to complete., and shall be effective 30 days after its adoption.

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CITY OF SAN MATEO

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAN MATEO ORDAINS AS FOLLOWS:

Section 1. Legislative Findings.

Section 2. Section 27.02.060 of the San Mateo Municipal Code is amended to read as follows:

27.02.060 USE AND BULK REGULATIONSHEIGHT LIMITATIONS AND EXCEPTIONS.

No building, structure, or land shall hereafter be used or occupied, and no building or part thereof, or other structure, shall be erected, raised, moved, reconstructed, extended, enlarged or altered except in conformity with the regulations herein specified for the district in which it is located, except that parapet walls, chimneys, cooling towers, elevator bulkheads, fire towers, stacks, monuments, ornamental towers, FCC licensed radio transmitters, dish antennae, scenery lofts, spires, water towers, and necessary mechanical appurtenances shall be permitted to exceed the maximum bulk provisions when erected in accordance with all other provisions of this code.

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(a) No building, structure, or land shall hereafter be used or occupied, and no building or part thereof, or other structure, shall be erected, raised, moved, reconstructed, extended, enlarged or altered except in conformance with the regulations specified for the district in which it is located, except as described in subsection (b).
(b) The following are exempt from maximum height limitations:
(1) Pergolas, trellises, skylights, attached flagpoles, parapet walls, roof gardens, screens (or similar features necessary to screen roof top mechanical equipment as described in subsection (2)), and other similar features related to architectural design or style and that are accessory to the primary structure in function and appearance provided that they do not add floor area. (2) Roof top mechanical equipment such as cooling towers, elevators (including related equipment and bulkheads), solar collectors, and other mechanical equipment required for the property’s use and size, provided that all roof top mechanical equipment shall be screened such that it is not visible from the adjacent public right-of-way(s).
(3) Antennas mounted on a building or property by a public agency for public safety purposes. (4) Other accessory architectural features, subject to a Site Plan and Architectural Review (SPAR) planning application reviewed and approved by the Zoning Administrator. (c) For any application exempt under subsection (b), the Zoning Administrator may determine that additional review by the Planning Commission is required based on the size, shape, location, or impacts of the proposed feature in relation to the rest of the development. (d) For improvements or additions to existing nonconforming buildings, the maximum height and bulk regulations set forth elsewhere in this Title shall not apply to:
(1) Improvements required for seismic retrofitting, Americans with Disability Act (ADA) accessibility, required life and safety upgrades, and historic preservation. (2) Mechanical upgrades, including but not limited to equipment upgrades, elevators (including related equipment and bulkheads), HVAC installation, and solar equipment installation; and any screening that may be necessary to screen the above, such that it is not visible from the public right-of- way.

Section 3. Section 27.02.140 of the San Mateo Municipal Code is amended to read as follows:

27.02.140 EXCEPTIONS.

The following uses in subsection (a) are exempted by this titleTitle and permittedallowed in any district.

In addition, City projects that meet the criteria in subsection (b) below are also exempt:

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(a) Poles, towers, wires, cables, conduits, vaults, laterals, pipes, mains, valves or any other similar distributing and transmitting equipment for telephone or television communications, electric power, gas, water and sewer lines provided that the installation shall conform when applicable with Federal Communications Commission, State Public Utilities Commission, and Federal Aviation Agency rules and regulations, or any other authorities having jurisdiction and subject to other provisions of this code, City ordinances, rules and regulations.
(b)The City project meets all of the following criteria:
(1) It is accessory and/or ancillary to an existing or approved principal development or use; and (2) It is fully or partially funded by the City; and
(3) The City has determined that the project is exempt from the provisions of the California Environmental Quality Act (CEQA).

Section 4. Section 27.06.020 of the San Mateo Municipal Code is amended to read as follows:

27.06.020 ZONING ADMINISTRATOR—POWERS AND DUTIES.

The Zoning Administrator shall enforce the provisions of this Title, and shall:
(a) Conduct such inspections of buildings, structures, and use of land as are necessary to determine compliance with the terms of this Title;
(b) Establish, with the approval of the Council, and administer rules for the conduct of the Zoning Administrator's office;
(c) Maintain permanent and current records of documents and proceedings under this Title; (d) Provide and maintain a continuing program of education and public information on zoning matters; (e) Recommend abatement of violations of this Title and aid in prosecution thereof; (f) Receive, file, and transmit to the appropriate approval body all planning applications and all appeals which the designated approval body is authorized to review or to take final action upon under the provisions of this Title;
(g) Interpret provisions of the zoning ordinance, subject to appeal of the decision to the Planning Commission;
(h) Have the authority to review and approve, conditionally approve, or disapprove the following types of projects, provided that the projects are categorically exempt or require a negative declaration under the State CEQA Guidelinesdo not result in any significant impacts pursuant to the California Environmental Quality Act (CEQA), subject to public notice and to appeal of the final action to the Planning Commission:

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(1) Site plan and architectural review for:
(A) Projects less than 6 residential dwelling units or 10,000 square feet of non- residential developments;
(B) Other minor site improvements including but not limited to: parking lots, landscaping, recreation facilities, accessory structures, recycling collection areas, circular driveways in R-1, R-2 districts;
(C) Fences over 6 feet and those over 3 feet when located in a front yard setback or within thirty-five (35)forty-five (45) feet of a street intersection line, authorized by Section

27.66.050(1)(e), Structures in Required YardsChapter 27.84. (D) Freestanding signs.
(2) Site development permits for removal of major vegetation required for the construction of single-family or duplex dwellings, or grading of 5,000 cubic yards or less under Section

23.140.120(1)Chapter 23.40.
(3) Variances as authorized by Section 27.78.040Chapter 27.78, for single-family, secondaryaccessory dwelling units, or duplex dwellings and for minor site improvements as described in subsection (h)(1) above.
(4) Temporary use permits authorized by Section 27.74.030(b) and 27.74.040, Temporary Use PermitChapter 27.74.
(5) Modifications authorized by Section 27.08.080(a), ModificationsChapter 27.08. (6) Special permits to allow the following:
(A) Recycling facilities subject to regulations established in Chapter 27.69; (B) Plumbing in detached accessory buildings in the R-1 zone, as authorized under Section 27.18.020(1)Chapter 27.18;
(C) Substantial removal of existing residences in an R1 zoning district; (D) Temporary real estate sales offices, as authorized under Section

27.18.020(12)Chapters 26.04 and 27.18;
(E) Swimming pools, hot tubs, and spas located in required front or street side yards, as authorized under Section 27.18.020(13)Chapter 27.18; and (F) Additional floor area ratio in the R-3 District, as authorized under Section

27.22.050Chapter 27.22.

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(7) Concurrent development of two or more contiguous lots or parcels of real property in R-1 and R-2 districts authorized by Section 27.18.110(b)(8). (8) Parcel Maps without exceptions as authorized by Title 26 (sSubdivision).

Notwithstanding the above, if the Zoning Administrator finds that any planning application involves an unresolved city policy issue or that there is public controversy regarding the application, the Zoning Administrator shall refer the application to the Planning Commission for hearing and action. (9) R1Single-Family Dwelling Design Review (SFDDR) Applications. (10) City projects that meet the following criteria:
(A) The project was conceptually approved as part of, or approved concurrent with, a Master Plan, program document, or project planning document that is in effect and has been previously approved by the City Council; and
(B) The project does not propose major changes from previous City Council approval; and
(C) The project would not result in a significant environmental impact pursuant to the California Environmental Quality Act (CEQA).
(9)(i) Notwithstanding the above, the Zoning Administrator may refer the application to the Planning Commission for hearing and action when it is unclear whether the necessary findings for project approval can be made.

Section 5. Section 27.06.050 of the San Mateo Municipal Code is amended as follows:

27.06.050 COUNCIL CONSIDERATION AND DETERMINATION.

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(h) Every project which includes as part of the site any parcel of land which is in whole or in part subject to the tidelands trust provisions of State law;
(i) Every project which isProjects that are fully or partially funded by the City and which is subject to Planning Commission review under 27.06.040.;
(j) Downtown Economic Development Permit.; and
(k) The City Council may initiate and enactThe initiation and enaction of ordinances, including interim zoning ordinances/moratoria, without having to file a planning application.

Section 6. Section 27.08.080 of the San Mateo Municipal Code is amended as follows:

27.08.080 PLANNING APPLICATION MODIFICATIONS.

An applicant may request a modification of a previously approved planning application. (a) The zoning administrator has final decisional authority, subject to appeal, on the following modifications:
(1) Modifications to any applications which were originally granted final approval by the zoning administrator.
(2) Other modifications which involve minor site improvements such as parking lots and landscaping, or which include additions to existing structures, providing that the additions will not result in an increase of more than fifty (50) percent of the floor area of the structures before the addition, or two thousand five hundred (2,500) square feet, whichever is less, and providing that the modifications will not require modification of any condition previously imposed by the Planning Commission and/or City Council.
(b) The Zoning Administrator may refer modifications to the Planning Commission in cases involving major policy decisions, substantial public controversy or unique land use characteristics, or in cases involving the following:
(1) Changes to the conditions of approval implementing environmental mitigation measures; (2) Changes to conditions expressly imposed by the Planning Commission or City Council; (3) Building additions exceeding fifty (50) percent of the floor area of the original building size or 2,500 square feet, whichever is greater, or
(4) Changes in density which increase the number of dwelling units or permitted residential population by more than 10%.
(c) If additional permits are requested, the modification shall be reviewed by the approval body possessing the authority for final action for the permits.

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(d) A modification shall not extend the approval expiration date beyond that of the original application.

Modifications are classified in three ways based on the significance of the proposed change and amount of additional review required: (a) substantial conformance, (b) minor, or (c) major. The Zoning Administrator shall determine the type of modification required based on the criteria specified below. This decision shall be final.
(a) Substantial Conformance. Modifications that are in substantial conformance with the original planning application can be approved as part of the building permit review process. (1) Substantial conformance is generally defined as a modification or change that:
(A) Results in a project with reduced or inconsequential changes in size, scale, design, or intensity; or
(B) Is necessary to accommodate parking requirements, utility configurations or other mechanical or operational components of a project identified during building permit review or construction; or
(C) Cumulatively would not result in substantive changes to the overall project. (2) Public notification shall not be required for substantial conformance modifications. (b) Minor Modification. Modifications that result in minor changes to an approved planning application require review and approval by the Zoning Administrator. (1) Minor modification is generally defined as a modification where all of the following circumstances apply:
(A) The modification would not result in a Major Modification, as defined below, to the approved site plan or project design; and
(B) The modification would not significantly change the nature of the approved use(s); and
(C) The modification would not significantly intensify the approved use(s); and (D) The modification would not result in any new or substantially greater environmental effects than the originally approved project.

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(2) Public notification to adjacent property owners and occupants is required for a minor modification. The Zoning Administrator shall determine whether additional property owners and occupants shall be notified depending on the nature of the modification, consistent with the notification procedures in Chapter 27.08.
(c) Major Modification. Modifications that result in a significant change require review and approval by the decision making body under Chapter 27.06.
(1) A modification to a project is considered major if any of the following circumstances apply:
(A) The modifications involve substantive changes to the approved site plan or project design. A substantive change, for the purpose of this section, includes but is not limited to:
(i) A change that is visually conspicuous from the public right-of-way or adjacent properties; or
(ii) A change that results in non-conformance with City standards or policies in order to comply with updated Federal or State laws including. but not limited to, the Americans with Disability Act, Building Code requirements, or Fire Code requirements; or
(iii) A change that alters the intent of a project-specific condition of approval. (B) The modifications significantly change the nature of the approved use; or (C) The modifications significantly intensify the approved use; or (D) The modifications may result in new or substantially greater environmental impacts than the originally approved project; or
(E) The modifications involve major policy decisions or unique land use characteristics, as determined by the Zoning Administrator.
(2) Public notification is required when approval by the Zoning Administrator is required, pursuant to Chapter 27.08. If the original decision maker was the Planning Commission or City Council, whether in the first instance or on appeal, then public noticing and public hearing for approval by the Planning Commission are required. All recipients and interested parties of the previously approved planning application shall be notified.

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provide clarification regarding height limitations and exemptions for roof top elements, will not have a significant effect on the environment per Guidelines Section 15061(b)(3).

Section 10. Legislative History and Effective Date. This ordinance was introduced on Clerk to complete., and adopted on Clerk to complete., and shall be effective 30 days after its adoption.

Place attachments here

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City Council
Ordinance Introduction
City Projects, Modifications to PAs,
and Height Limitations & Exemptions
July 17, 2023
Julia Klein, Principal Planner
Community Development Department

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Agenda
• Introduction
• Proposed Ordinance
• City Projects
• Modifications to Approved Planning Applications
• Height Limitations and Exemptions
• Recommendation & Next Steps
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3 Clarify review process for City
projects:
• Exemption for certain projects,
• ZA-level review of minor projects; and
• Option for fewer public hearings by
Commissions in making
recommendation to City Council.

City Projects
Wastewater Treatment Plant

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4 • Distinguish different levels of
changes and review process:
• Simple Changes – substantial
conformance (Building Permit only)
• Minor Modifications – PA process
(Zoning Administrator (ZA) decision)
• Major Modifications – PA process,
(Planning Commission or Council
decision)
Allow for ZA discretion in determining the
type of modification required
Modifications to Approved Planning Applications (PA)
Station Park Green

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5 • Retitle section from “Use and Bulk” to
“Height Limitations and Exemptions,”
• Identify exemptions from height:
• Pergolas, trellises, flagpoles;
• Roof top mechanical equipment
(elevators, solar);
• Antennas by a public agency;
• Other accessory architectural features,
subject to planning application.

Height Limitations & Exemptions
601 Laurel Ave

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Collaboration and Public Comments
• Collaboration with multiple City departments
• Parks & Recreation, Public Works & City Manager
• Noticing for Policy and Code Amendments:
• Legal Notice Published in San Mateo Daily Journal
• Posting at City facilities
• What’s Happening project webpage
• Planning eNewsletter
• Public Comments
• No public comments
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Planning Commission Recommendation
7 • Planning Commission public hearing (May 9, 2023)
• No public speakers and no written comments,
• Voted unanimously (5-0) to recommend ordinance
as drafted.

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Recommendation & Next Steps
Recommendation to City Council:
• Introduce an Ordinance to amend the San Mateo Municipal Code Sections

27.02.060 (Height Limitations and Exemptions), 27.02.140 (Exceptions),

27.06.020 (Zoning Administrator – Powers and Duties), 27.06.050 (Council Consideration and Determination), and 27.08.080 (Planning Application Modifications) to streamline the review process for city projects, clarify the modification process for approved planning applications, and clarify height limitations and exemptions; and
• Determine the amendments qualify for exemption from further environmental review pursuant to California Environmental Quality Act (CEQA) Section 15061(b)(3)[common sense exemption].

Next Steps:
• 2nd reading at next scheduled meeting,
• Amended Ordinance would become effective 30-days after adoption 8 349 of 597

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 25 Section Name: PUBLIC HEARING Account Number: 26-3111 File ID: 23-7615 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Community Development Department
MEETING DATE: July 17, 2023
SUBJECT:

Municipal Code Amendments for New Development Parking Garage Security Requirements – Ordinance Introduction RECOMMENDATION:

Introduce an Ordinance to amend San Mateo Municipal Code Section 23.54.030 “Parking Garage Security” to update security requirements for residential parking garages to provide flexibility for mixed-use buildings, exempt projects with less than five dwelling units, and standardize video surveillance and lighting requirements; and determine the amendments qualify for a Categorical Exemption from further environmental review pursuant to California Environmental Quality Act (CEQA) Section 15061(b)(3).

BACKGROUND:

The City’s current Building Security Code, San Mateo Municipal Code (SMMC) Chapter 23.54 was adopted in 2008 with a purpose to safeguard property and to promote public welfare and safety by providing security standards to be used in the design, construction, and maintenance of buildings and vehicles and the quality of materials used. The Code applies to all new construction and alterations and sets minimum security measures and standards to ensure a safe environment for all development in the City.

To help support the ability of mixed-use projects to include a residential component and avoid the Building Security Code being a potential barrier, staff initiated this code amendment to update the security requirements for residential parking garages. This proposed amendment is also in response to an issue with the code identified with the new mixed-use project at 222 E. 4th Avenue (Draeger’s), approved by the City Council in December of 2022, which precluded the ability of the project to provide on-site parking that could be used by both the residential and office/retail tenants. Thus, the goal of the proposed amendment is to add flexibility for how a shared parking garage in a residential or mixed-use building can meet security requirements while continuing to ensure that all development in the City has a secure environment.

The Building Security Code is located within SMMC Title 23 (Building and Construction), and amendments to Title 23 require approval by the City Council. The existing and proposed code language are provided in the table below, with the Draft Ordinance included as Attachment 1.

Existing and Proposed Code Language
Existing Proposed

23.54.030 PARKING GARAGE SECURITY.

Parking garages serving residential uses shall be provided with electrically operated closures to allow passage of motor vehicles, except that required visitor parking shall have unrestricted access. The closures, whether overhead,

23.54.030 PARKING GARAGE SECURITY.

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sliding or swinging shall be provided with reopening
devices which will function to stop and reopen the closure in case the closure is obstructed when closing. Openings into the garage which are not for vehicular or human
passage shall be provided with security grilles or screens.

Digital keypads shall be provided to allow for entry by services and emergency services vehicles. Exterior doors or gates providing access to the secure areas of the parking garage shall remain locked at all times, and shall only be accessible through the use of keys furnished to the
building residents.
securing against unauthorized vehicle and pedestrian
access; allowing for emergency access for first responders and secure tenant-only access during specified hours;
installing and maintaining a surveillance video system and interior security lighting. Additional security measures may be required based on project-specific determinations by the Chief of Police or their designee. All required security measures shall be approved by the Chief of Police or their designee.

Existing Code Requirements
The existing code language in SMMC Section 23.54.030 “Parking Garage Security” applies to parking garages that serve residential uses and lists specific security measures including electronically operated gates, emergency access, and separation of residential parking at all times. The intent of the existing code was to provide an exclusive area in a garage for residents to be secure from all other uses. The existing code, which is very prescriptive, does not appear to have contemplated a mixed-use building with a shared parking environment, and has resulted in challenges for mixed-use projects being able to comply, including:
•Common parking garages serving both residential and other uses are not addressed. •Results in multiple security gates to separate residential parking in mixed-use garages given that residential parking must be separated from all other uses.
•Precludes the ability of a mixed-use project to share parking between residential and non-residential uses. •Precludes alternative measures that may be suitable for the development’s specific characteristics such as site design, location, and operations.

Proposed Amendment
The proposed amendment would update the scope and applicability of the Parking Garage Security Section to multi-family and mixed-use projects to add flexibility, codify existing practices that have been applied through Conditions of Approval, and reduce the prescriptive nature of these regulations while continuing to ensure that minimum security measures are provided. Staff anticipates the effects below, particularly when applied to mixed-use projects:
•Exempts small projects with less than five dwelling units from the requirements. •Removes the need for multiple security gates given that the regulations would apply to mixed-use developments and allow a single gate to secure the entire garage.
•Continues to require minimum security measures, including securing the garage (gates and other closures), emergency access, video surveillance, and interior security lighting. •Updates “building resident” to “tenant” to avoid separating residential parking from parking for other uses. •Eliminates the requirement for residential parking to be locked at all times and only accessible to building residents, and instead requires tenant-only access during specific hours, which would be determined for each development based on project-specific operations.
•Specifies that the Chief of Police or their designee has authority to review and approve the proposed security measures, which can allow for flexibility in compliance if there are project-specific conditions that merit consideration.

In addition, allowing both residential and commercial parking to be in a secured area together may create additional shared-use parking opportunities by allowing the allocation of residential parking spaces to other uses during different hours of the day, and visa-versa. This added flexibility would allow more efficient use of parking facilities where off-street parking may eventually become more limited through State law such as Assembly Bill 2097 (AB 2097). This law prevents the City from imposing minimum parking requirements for all developments (whether residential or not) that are within one-half mile of a major public transit stop, which are the City’s three Caltrain Stations.

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NEXT STEPS:

If the City Council introduces the proposed ordinance, it will be scheduled for adoption at a subsequent regular meeting on August 21, 2023. If adopted, the Ordinance would become effective 30 days later. Once effective, these changes to parking garage security requirements can be utilized by any project, even if they have already obtained a development approval or have submitted a building permit application, including the Draeger’s project at 222 E. 4th Avenue.

PUBLIC ENGAGEMENT AND COMMENTS:

An online community workshop focused on this amendment as well as other amendments being considered by the Police Department to the Building Security Code was held on May 25, 2023. Notice of this community workshop was provided a minimum of 10 days prior to the workshop through the San Mateo Daily Journal, posting at various public facilities, the City’s website, and the Citywide eNewsletter. Four community members attended the workshop. Comments and questions raised during the workshop addressed general security design methods but not specifically on the subject amendment. One public comment addressing the proposed amendment has been received, which specifically expresses support for allowing visitor parking to be within secured areas. This public comment has been included as Attachment 2.

Public comments received after the publication of this report will be forwarded to the City Council for consideration at the public hearing and will be posted to this item online as “Post Packet Public Comments.” NOTICE PROVIDED:

In accordance with Government Code sections 65090 and 65091, and the City’s Municipal Code public noticing requirements, the notice for this public hearing was published in a local newspaper of general circulation, the San Mateo Daily Journal, posted at three public facilities (City Hall, Main Library and King Center), and noticed to the following parties at least ten (10) days in advance of this City Council meeting:
•The City’s Planning “Notify Me” email list; and,
•The interested parties list which includes interested individuals who contacted the City and requested to be added to the project notification list.

BUDGET IMPACT:

Updates to the City’s Municipal Code are fully funded by the Community Development Department and Police Department’s annual budget with no additional impact to the General Fund.

ENVIRONMENTAL DETERMINATION:

In accordance with California Environmental Quality Act (CEQA) Guidelines, section 15061(b)(3), adoption of this ordinance amendment is covered by the "common sense exemption" in that CEQA applies only to projects which have the potential to cause a significant effect on the environment. Here, it can be seen with certainty that the ordinance amendment, which consist of updates to parking garage security measures, will not have a significant effect on the environment per Guidelines Section 15061(b)(3).

ATTACHMENTS
Att 1 - Proposed Ordinance
Att 2 - Public Comment

STAFF CONTACT
Rendell Bustos, Senior Planner
[email protected]
(650) 522-7211

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CITY OF SAN MATEO

DRAFT ORDINANCE
San Mateo Municipal Code Amendments to Update Parking Garage Security Requirements for Housing and Mixed-Use Development
WHEREAS, the City seeks to update the parking garage security requirements contained in Section

23.54.030 of the San Mateo Municipal Code to support housing production while maintaining a secure environment around the City; and
WHEREAS, multi-family residential buildings and mixed-use buildings that include residential uses need to meet minimum parking garage security requirements but should be allowed reasonable flexibility to account for project specific conditions; and
WHEREAS, the amendment is consistent with the City’s General Plan and supports implementation of the General Plan’s goals and policies; and
WHEREAS, the City Council held a public hearing on July 17, 2023, duly noticed, at which all public comments were considered.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAN MATEO ORDAINS AS FOLLOWS:

Section 1. The City Council approves an amendment to Section 23.54.030 of the San Mateo Municipal Code to read as follows:

23.54.030 PARKING GARAGE SECURITY
Multi-family residential uses with five or more units providing a common parking garage, whether solely for dwelling uses or in combination with other uses, shall provide the following minimum security measures:
securing against unauthorized vehicle and pedestrian access; allowing for emergency access for first responders and secure tenant-only access during specified hours; installing and maintaining a surveillance video system and interior security lighting. Additional security measures may be required based on project-specific determinations by the Chief of Police or their designee. All required security measures shall be approved by the Chief of Police or their designee.

Section 2. Environmental Determination. In accordance with California Environmental Quality Act (CEQA) Guidelines, section 15601(b)(3), this action is covered by the "common sense exemption" in that CEQA applies only to projects which have the potential to cause a significant effect on the environment. Here, it can be seen with certainty that the ordinance amendment, which consist of updates to parking garage security measures, will not have a significant effect on the environment per Guidelines Section 15061(b)(3).

Section 3. Severability. In the event any section, clause or provision of this ordinance shall be determined invalid or unconstitutional, such section, clause or provision shall be deemed severable and all other sections or portions hereof shall remain in full force and effect.

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Section 4. Publication. This Ordinance shall be published in summary in a newspaper of general circulation, posted in the City Clerk's Office, and posted on the City's website, all in accord with Section 2.15 of the City Charter.

Section 5. Legislative History and Effective Date. This ordinance was introduced on Clerk to complete., and adopted on Clerk to complete., and shall be effective 30 days after its adoption.

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2 * PRIVILEGE AND CONFIDENTIALITY NOTICE: This message, together with any attachments, is intended only for the use of the individual or entity to which it is addressed. It may contain information that is confidential and prohibited from disclosure. If you are not the intended recipient, you are hereby notified that any dissemination or copying of this message or any attachment is strictly prohibited. If you have received this message in error, please notify the original sender immediately by telephone or by return e-mail and delete this message along with any attachments from your computer. Thank you.

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THE FOLLOWING PUBLIC

COMMENTS WERE SUBMITTED

FOLLOWING THE PUBLICATION

OF THE AGENDA PACKET

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From:

Rendell Bustos
Sent: Monday, July 17, 2023 7:37 AM
To:

Cc: Brendan Bartholomew <[email protected]>; Matthew Lethin <[email protected]>; Manira Sandhir <[email protected]> Subject: RE: Clarification Question
Good morning Angelina,
Thank you for your question and for attending the May 25 th Community Workshop. To your
question – the revised code would give developments the flexibility to consider who is deemed “authorized” so that the City and the project applicant could collaborate on the final design and operation of the garage.

This could allow delivery personnel, visitors, and future tenants to be within the gated/secured areas of the garage. Or, applicants could propose locating these individuals outside of the secured areas of the garage, which is what the existing code actually requires.

I hope this helps clarify. I have cc’d Police Department staff in this response for their awareness.

Thanks,
Rendell

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Rendell Bustos
Senior Planner | Community Development Department
330 W. 20th Ave., San Mateo, CA 94403
650-522-7211 | [email protected]

From:

Angelina Soldatos
Sent: Friday, July 14, 2023 3:19 PM
To:

Rendell Bustos <[email protected]>
Subject: Clarification Question

Hi Rendell,

My name is Angelina Soldatos and I work for the California Apartment

Association (CAA) on
local issues here in San Mateo County. I attended your extremely thorough presentation at the May 25th Community workshop on security code amendments for the upcoming public hearing. I just had one clarifying question that was recently brought up by one of members I was hoping you would help me with.

I've highlighted a portion of the proposed amendment that there was a question on:

Multi-family residential uses with five or more units providing a common parking garage, whether solely for dwelling uses or in combination with other uses, shall provide the following minimum-security measures:
securing against unauthorized vehicle and pedestrian access; allowing for emergency access for first responders and secure tenant-only access during specified hours; installing and maintaining a surveillance video system and interior security lighting. Additional security measures may be required based on project-specific determinations by the Chief of Police or their designee. All required security measures shall be approved by the Chief of Police or their designee.

The question is, In a typical multi-use or residential building with resident parking there are spaces for visitors, delivery personnel, and future residents. Would these spaces or areas meet the safety criteria as stated in the ordinance?

If you need further details, please do not hesitate to reach out to me.

I thank you in advance and look forward to hearing from you.

Angelina Soldatos Director, Local Public Affairs
California Apartment Association

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Find out how we're working for you.

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Municipal Code Amendment for Parking
Garage Security Code Requirements
Ordinance Introduction
July 17, 2023
Rendell Bustos, Senior Planner
Community Development Department

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BACKGROUND
Purpose
Code Language
Public Outreach
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BACKGROUND
Purpose
Code Language
Public Outreach
3 Building Security Code, applicable to new
developments and alterations.

Amend Parking Garage Security
requirements Municipal Code 23.54.030.

Facilitate housing and parking production
in mixed-use projects.

To allow flexibility and maintain security
in developments.

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BACKGROUND
Purpose
Code Language
Public Outreach
4 EXISTING CODE LANGUAGE
Parking garages serving residential uses
shall be provided with electrically
operated closures to allow passage of
motor vehicles, except that required
visitor parking shall have unrestricted
access. The closures, whether overhead,
sliding or swinging shall be provided with
reopening devices which will function to
stop and reopen the closure in case the
closure is obstructed when closing.

Openings into the garage which are not
for vehicular or human passage shall be
provided with security grilles or screens.

Existing Code
Language Effects
Requires separation
of residential
parking
Results in multiple
security gates
Prevents mixed or
shared parking

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BACKGROUND
Purpose
Code Language
Public Outreach
5 Existing Code
Language
Requires separation
of residential
parking
Results in multiple
security gates
Prevents mixed or
shared parking
Proposed Code
Language Effects
Allows common
parking for
residential and non-
residential uses
Would allow a
single security gate
Would allow for
shared parking

PROPOSED CODE LANGUAGE
Multi-family residential uses with five or
more units providing a common parking
garage, whether solely for dwelling uses or
in combination with other uses, shall provide
the following minimum security measures:
securing against unauthorized vehicle and
pedestrian access; allowing for emergency
access for first responders and secure
tenant-only access during specified hours;
installing and maintaining a surveillance
video system and interior security lighting.

Additional security measures may be
required based on project-specific findings
by the Chief of Police or their designee. All
required security measures shall be
approved by the Chief of Police or their
designee.

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BACKGROUND
Purpose
Code Language
Public Outreach
6 Existing Code
Language Effects
Requires separation
of residential
parking
Results in multiple
security gates
Prevents mixed or
shared parking
Proposed Code
Language Effects
Allows common
parking for
residential and non-
residential uses
Would allow a
single security gate
Would allow for
shared parking

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BACKGROUND
Purpose
Code Language
Public Outreach
7 Community Meeting: May 25, 2023
• Provided overview of code amendment
• Discussed general security design
requirements
Public Comments
• One public comment submitted
• Discussed code language with two
commentors after packet release

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RECOMMENDATION
Introduce an Ordinance to amend San Mateo Municipal Code Section 23.54.040 “Parking Garage Security” and determine the amendments qualify for a Categorical Exemption.

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CODE LANGUAGE

EXISTING
Parking garages serving residential uses shall be
provided with electrically operated closures to allow
passage of motor vehicles, except that required visitor parking shall have unrestricted access. The closures,
whether overhead, sliding or swinging shall be provided with reopening devices which will function to stop and
reopen the closure in case the closure is obstructed
when closing. Openings into the garage which are not
for vehicular or human passage shall be provided with
security grilles or screens. Digital keypads shall be
provided to allow for entry by services and emergency
services vehicles. Exterior doors or gates providing
access to the secure areas of the parking garage shall
remain locked at all times, and shall only be accessible through the use of keys furnished to the building
residents.

PROPOSED
Multi-family residential uses with five or more units
providing a common parking garage, whether solely for
dwelling uses or in combination with other uses, shall
provide the following minimum security measures:
securing against unauthorized vehicle and pedestrian
access; allowing for emergency access for first responders and secure tenant-only access during specified hours;
installing and maintaining a surveillance video system and interior security lighting. Additional security measures may be required based on project-specific findings by the Chief of Police or their designee. All required security measures shall be approved by the Chief of Police or their designee.

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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 26 Section Name: PUBLIC HEARING Account Number: 26-3111 File ID: 23-7698 TO: City Council
FROM: Christina Horrisberger, Interim City Manager
PREPARED BY: Community Development Department
MEETING DATE: July 17, 2023
SUBJECT:

Concar Passage Mixed-Use Project - Vesting Tentative Map and Development Agreement Execution Extension Request – Ordinance Introduction
RECOMMENDATION:

Adopt a Resolution to approve a two-year extension of an approved Vesting Tentative Map and all other associated planning application approvals and a modification of Condition of Approval #61; and introduce an Ordinance for a two- year extension to execute the Development Agreement for the Concar Passage Mixed-Use Project located at 640, 666, 678, 690 Concar Drive; 1820, 1850 S. Grant Street; and 1855 S. Delaware Street, in accordance with Government Code Section 66452.6(e) and San Mateo Municipal Code Sections 26.48.135(b), 26.48.140(c), and 27.08.085(d).

BACKGROUND:

On August 17, 2020, the City Council adopted Resolution Number 94 (2020), approving Planning Application PA-2018-052, which included a Site Plan and Architectural Review (SPAR), Site Development Planning Application (SDPA), and Vesting Tentative Map to construct 961 residential units, 73 of which are designated affordable at the very-low income level, 40,000 square feet of commercial space, on-site parking, publicly accessible open space, and associated infrastructure improvements on the existing 14.5-acre site, which is currently developed as a shopping center. The approval included adoption of a Supplemental Environmental Impact Report (EIR) to the Rail Corridor Transit Oriented Development Plan EIR.

The Applicant, California Coastal Properties, requested a Development Agreement with the City, and the parties memorialized the terms and conditions in a Development Agreement, which was never executed, as further explained below. It should be noted that the project was granted all necessary Planning Application approvals and that it could proceed without the Development Agreement.

The Vesting Tentative Map was subject to expiration on August 17, 2022. However, the applicant requested a one-year extension; and on July 26, 2022, the Zoning Administrator approved PA-2022-042 (Attachment 3), extending the previously approved Vesting Tentative Map and all other associated Planning Application approvals for PA-2018-052 for one year in accordance with Government Code Section 66452.6(e) and San Mateo Municipal Code (SMMC) Sections 26.48.140(c),

26.48.135(b) and 27.08.085(d). The Zoning Administrator approval did not authorize any changes to either the Vesting Tentative Map or the approved project. With this approval, the Vesting Tentative Map now expires on August 17, 2023.

On May 30, 2023, the Applicant submitted a letter requesting an extension of the previously extended Vesting Tentative Map and Development Agreement for the Concar Passage Mixed-Use Project (PA-2018-052) for a period of two years.

This request was supplemented with additional information to support the extension request on June 15, 2023. Further, on July 11, 2023, the Applicant submitted a request to amend Condition of Approval #61 for consistency with both the Vesting Tentative Map and Development Agreement extensions. All three letters are included in Attachment 4.

The proposed revised Condition of Approval #61 (Exhibit A in Attachment 1) would extend the deadline for entering into

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the negotiated development agreement from three to five years before requiring that the Applicant pay $2.2 million to the City for its fair share of necessary traffic improvements. The revised condition of approval also includes an annual cost adjustment beginning August 17, 2023 (the current date of the Vesting Tentative Map expiration) to offset the effect of rising construction costs on the value of the fair share contribution.

The approved Concar Passage Development Agreement (Exhibit A in Attachment 2) provides that the Applicant must execute the Development Agreement by September 30, 2023, with the term of said agreement being 12 years from the date of execution. The Applicant has not yet obtained property rights to all of the subject properties. The Applicant must secure property rights prior to execution of the Development Agreement, and therefore desires to extend the deadline for execution by two years to September 30, 2025. The Applicant is not requesting an extension of the overall term of the Development Agreement. As a result, Article I, Paragraph B, would also be modified to reduce the term from 12 years to 10 years. These two amendments to the Concar Passage Development Agreement are shown in redline in Exhibit A of Attachment 2.

Site Description
The project site is located on Concar Drive, between South Grant Street and South Delaware Street and is approximately

14.5 acres and consists of eight parcels as shown on a location map in Attachment 5. The site is zoned TOD (Transit Oriented Development) and is currently occupied by Concar Shopping Center consisting of approximately 165,000 square feet of commercial development with tenants including Trader Joe’s, Ross Dress for Less, 7-Eleven, Peninsula Ballet Theatre, The Pantry, T.J. Maxx, and Shane Co. The western boundary of the site is approximately 0.3 miles from the Hayward Park CalTrain station, placing it within the Hayward Park Station Overlay Zone of the Rail Corridor Transit Oriented Development Plan (Rail Corridor Plan).

Project Description
The extension requests are related to the approved Concar Passage Mixed-Use Project (PA-2018-052) for a proposed mixed-use development consisting of 961 residential units, 73 of which are designated affordable at the very-low income level; 40,000 square-feet of commercial uses; on-site parking; publicly accessible open space; and infrastructure improvements on the 14.5-acre shopping center site. The Vesting Tentative Map would reconfigure the existing eight parcels into six in a new configuration, which aligns with the proposed building footprints and phasing schedule. The existing conditions and proposed conditions are shown in Attachment 6 and Attachment 7 respectively. Proposed commercial uses include Trader Joe’s, Peninsula Ballet Theatre, 7-Eleven, a food hall, a daycare facility, and other retail and restaurant uses. Project approval was granted by the City Council on August 17, 2020 through Resolution Number 94 (2020).

Applicable Code and Policy Review
Subdivision Code
SMMC Section 26.48.135 provides for the expiration and extension of tentative maps and Section 24.48.140 relates to vesting tentative maps. Subsection 26.48.135(b) provides for extensions of tentative maps in accordance with Government Code Section 66452.6(e) for up to three two-year extensions. To date, the Applicant has received approval for one one-year extension and is therefore eligible for the requested two-year extension.

Zoning Code
The Zoning Code provides for the extension of project entitlements when associated subdivision maps are extended.

SMMC Section 27.08.85(d) states that, “Projects with associated subdivision maps that remain in effect or have been extended by mandate of the state Subdivision Map Act or SMMC Section 26.48.135, 26.48.140, or 26.56.087” are exceptions to the two-year expiration from the date of final approval, and “those planning approvals remain effective for the term of the subdivision map approval, if required by State law.”

California Government Code
Government Code Section 66452.6(e) states that, “Upon application of the subdivider filed before the expiration of the approved or conditionally approved tentative map, the time at which the map expires pursuant to subdivision (a) may be

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extended by the legislative body or by an advisory agency authorized to approve or conditionally approve tentative maps for a period or periods not exceeding a total of six years. The period of extension specified in this subdivision shall be in addition to the period of time provided by subdivision (a). Before the expiration of an approved or conditionally approved tentative map, upon an application by the subdivider to extend that map, the map shall automatically be extended for 60 days or until the application for the extension is approved, conditionally approved, or denied, whichever occurs first. If the advisory agency denies a subdivider’s application for an extension, the subdivider may appeal to the legislative body within 15 days after the advisory agency has denied the extension.”

The effect of this code section is to grant an automatic extension of 60 days, in this case from August 17, 2023, to October 16, 2023, or until the extension request is approved.

Development Agreement Extension Request
The original Development Agreement, which was approved by City Council on August 17, 2020, secured project entitlements and vesting rights for a period of 12 years, along with an obligation to include 73 very-low income units in the project and a contribution of $7,500,000 toward traffic improvements. Other community benefits contained in the Development Agreement include construction and maintenance of a public mobility hub for public and private transportation services, construction of a daycare facility with outdoor play area with the space reserved for day care operations for the life of the project, and construction of a community performance theater reserved for community theater use for the life of the project unless a different use is approved pursuant to a subsequent planning application. In addition, pedestrian and bike improvements must be constructed, and publicly accessible parks and public spaces must be constructed and maintained as depicted in the project plans.

California Government Code Section 65868.5 requires that Development Agreements be recorded within 10 days of entering into the Agreement. In order for the Development Agreement to be executed, all parties must have signing authority. To date, the Applicant has not acquired the necessary signing authority from the current property owners or property rights. At the time of the August 17, 2020, public hearing before City Council, the Applicant stated that they anticipated acquiring the property within three years of that date. As a result, a deadline of September 30, 2023 for execution of the Development Agreement was included.

As outlined in the extension request letters (Attachment 4), the anticipated timeline for acquiring the properties and obtaining signing authority has not been met resulting in the Applicant seeking an additional two years to secure property rights and subsequently execute the Development Agreement. Along with the two-year extension to execute, there would be an amendment to adjust the term from 12 to 10 years to maintain the overall term of the original agreement, which concludes in 2035. No other changes to the Development Agreement are being requested. The original Development Agreement was approved by Ordinance, and an Ordinance amendment is required to make the requested changes. The Draft Ordinance is included as Attachment 2 and the Development Agreement amendments are included as Exhibit A.

Planning Commission Recommendation
The Planning Commission held a noticed public hearing on June 27, 2023 to review the extension requests for the Vesting Tentative Map and Development Agreement and provide a recommendation to the City Council. There were no public comments during the meeting. Following Planning Commissioner questions about the Applicant’s purpose behind the request and a discussion, which included implications of not approving the extension request, the Commission also discussed why granting the extension is in the best interest of the project and the City because of the associated community benefits. The Commission voted unanimously (5-0) to adopt a resolution recommending extension of the Vesting Tentative Map and recommending adoption of an Ordinance to amend the Development Agreement.

BUDGET IMPACT:

There are no direct fiscal implications to the City’s General Fund associated with this request.

PUBLIC COMMENTS:

A public comment received prior to the publication of this report is included in Attachment 8. This public comment included questions regarding a prior gasoline station that occupied the project site and not on the extension requests

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being considered at this public hearing. Public comments submitted after publication of this report will be forwarded to the City Council for review and consideration at the public hearing and posted to this item on the City’s Agendas & Minutes Public Meeting Portal as “Post Packet Public Comments.” ENVIRONMENTAL DETERMINATION:

This project received prior CEQA clearance, and a Final Supplemental Environmental Impact Report for the PA-2018-052 was certified by the City Council on August 17, 2020. Staff has determined that pursuant to CEQA Guidelines Section 15162, Subsequent EIRs and Negative Declarations, PA-2023-033 requires no further environmental review, as there have been no changes to the environmental character of the project site or the surrounding areas since the project (PA-2018- 052, Concar Passage Mixed-Use Project) was originally approved by City Council on August 17, 2020.

NOTICE PROVIDED
All meeting noticing requirements were met. All meeting noticing requirements were met. In accordance with Government Code Section 65091 and the City’s Municipal Code public noticing requirements, this public hearing was noticed to the following parties at least ten (10) days in advance of the City Council meeting:
•Property owners, residential tenants and business tenants within 1,000 feet of the project site; •The City’s “900 List” which contains nearly 100 Homeowner Associations, Neighborhood Associations, local utilities, media, and other organizations interested in citywide planning projects; •The City’s Planning “Notify Me” email list; and
•The interested parties list which includes interested individuals who contacted the city and requested to be added to the project notification list.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Draft Ordinance
Att 3 – Zoning Administrator Decision Letter (PA-2022-042) Att 4 – Applicant Extension Request and Supplemental Information Letter Att 5 – Location Map
Att 6 – Existing Conditions
Att 7 – Final Parcel Configuration
Att 8 – Public Comments

STAFF CONTACT
Rendell Bustos, Senior Planner
[email protected]
(650) 522-7211
Carol Johnson, Contract Planner
[email protected]

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CITY OF SAN MATEO
RESOLUTION NO. (2023)

RESOLUTION APPROVING A TWO-YEAR EXTENSION OF A PREVIOUSLY APPROVED VESTING TENTATIVE MAP

AND ALL OTHER ASSOCIATED PLANNING APPLICATION APPROVALS AND AMENDING CONDITION OF APPROVAL #61 FOR
PLANNING APPLICATION PA-2018-052 FOR THE CONCAR PASSAGE MIXED-USE PROJECT (PA-2023-033, CONCAR PASSAGE MIXED-USE PROJECT)
WHEREAS, California Coastal Properties (herein referred to as the “Applicant”) submitted a planning application PA- 2023-033 (herein referred to as “Project”) requesting a two-year extension to an approved Vesting Tentative Map associated with PA-2018-052, a proposed mixed-use development consisting of 961 residential units, 73 of which are devoted to the very-low income level; 40,000 square-feet of commercial uses; on-site parking; publicly accessible open space; and infrastructure improvements on the existing 14.5-acre site currently zoned Transit Oriented Development (TOD) District at 640, 666, 678, 690 Concar Drive; 1820, 1850 S. Grant St.; and 1855 S. Delaware St. (APNs 035-243-090, -140, -160, -170, -190, -200, -210, -220) in the City of San Mateo (“City”); and
WHEREAS, San Mateo Municipal Code (“SMMC”) Section 27.08.085(d) states that projects with associated subdivision maps that remain in effect or have been extended by mandate of the state Subdivision Map Act or SMMC section 26.48.135, 26.48.140, or 26.56.087 are exceptions to the two-year expiration from the date of final approval set forth in SMMC Section 27.08.85; and those planning approvals remain effective for the term of the subdivision map approval, if required by State law; and WHEREAS, SMMC Section 26.48.140(c) provides for expirations of vesting tentative maps and refers to Section 26.48.135(b), which provides for extensions of tentative maps for up to three two-year extensions, in accordance with Government Code Section 66452.6(e); and WHEREAS, the Applicant has previously sought and been granted a single one-year extension (PA-2022- 042), and is therefore eligible for the requested two-year extension to the Vesting Tentative Map; and WHEREAS, SMMC Section 27.08.040 authorizes the Planning Commission to approve, conditionally approve, deny, or continue planning applications; and
WHEREAS, approval of the applicant’s proposal is considered a “Project” for purposes of the California Environmental Quality Act, Pub. Resources Code §21000, et seq. (“CEQA”); and WHEREAS, the City finds that pursuant to CEQA Guidelines Section 15162, Subsequent EIRs and Negative Declarations, the Project requires no further environmental review, as there have been no changes to the environmental character of the project site or the surrounding areas since the project (PA-2018-052, Concar Passage Mixed-Use Project) was originally approved by City Council on August 17, 2020; and WHEREAS, the City finds the Project consistent with the applicable policies of the General Plan and other applicable policies; and
WHEREAS, the Planning Commission held a duly noticed public hearing for the Project on June 27, 2023, at which all public comments were considered; and

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WHEREAS, the Planning Commission voted 5-0 to recommend that the City Council approve the two-year extension for the Vesting Tentative Map.

NOW, THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA AS FOLLOWS:

1. The City Council finds on the basis of the whole record before it that there have been no changes to the environmental character of the project site or the surrounding areas since the project received prior CEDA clearance, and a Final Supplemental Environmental Impact Report for the subject project (PA-2018-052, Concar Passage Mixed-Use Project) was certified by the City Council on August 17, 2020;

NOW, THEREFORE, BE IT FURTHER RESOLVED THAT THE CITY COUNCIL OF THE CITY OF SAN MATEO, DOES

HEREBY APPROVE A TWO-YEAR EXTENSION TO THE VESTING TENTATIVE MAP AND ALL OTHER ASSOCIATED PLANNING APPLICATION APPROVALS AND A MODIFICATION TO CONDITION OF APPROVAL #61, AS SHOWN IN EXHIBIT A, PA-2023-033, FOR THE CONCAR PASSAGE MIXED-USE PROJECT AT 640, 666, 678, 690 CONCAR DRIVE; 1820, 1850 S. GRANT ST.; AND 1855 S. DELAWARE ST. (APNS 035-243-090, -140, -160, -170, -190, -200, -210, -220) BASED UPON THE FOLLOWING FINDINGS FOR APPROVAL:

1. The approved project is still consistent with the City’s General Plan:
a. The proposed Vesting Tentative Map is consistent with applicable general and specific plans in that the project site is designated for residential uses. b. The design or improvement of the proposed subdivision is consistent with applicable general and specific plans in that it meets all zoning standards for TOD, Transit Oriented Development. c. That the site is physically suitable for the type of development in that the site is currently developed with structures and is served by all required utilities and public services. d. That the site is physically suitable for the proposed density of development in that the site has a maximum density of 50 dwelling units per acre. However, the applicant is proposing

66.3 dwelling units per acre inclusive of State Density Bonus. e. That the design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat in that it redevelops a site located in an urban setting which has been previously improved with paving and other development.
f. That the design of the subdivision or type of improvements is not likely to cause serious public health problems in that City’s ordinances reduce potential air quality and noise impacts during construction, and the project will also contribute to public improvements roadways and public facilities and will otherwise not constrain the delivery of public services.

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i. That the design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision.

2. The approved project is still consistent with the City's Zoning Ordinance in that there have been no amendments to the Transit Oriented Development (TOD) zoning district or other applicable zoning regulations since the time of project approval on August 17, 2020.

3. The project site and its environs are in substantially the same condition as when the project was initially approved in that there has been no alteration of the existing buildings or improvements on the subject properties nor have there been any changes to the surrounding roadways.

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61. FAIR SHARE FOR TRAFFIC IMPROVEMENTS - Prior to issuance of the first building permit, applicant shall pay $2.2 million to the City for its fair share of necessary traffic improvements unless the negotiated development agreement is entered into within five years of project approval. The fair share amount shall be adjusted annually based on the Engineering News-Record (ENR) Construction Cost Index for San Francisco beginning August 17, 2023. (PUBLIC WORKS)

EXHIBIT A
REVISED CONDITION OF APPROVAL NUMBER 61
PA-2018-052, CONCAR PASSAGE MIXED USE PROJECT
(SPAR, SDPA, VESTING TENTATIVE MAP, DEVELOPMENT AGREEMENT) 640 CONCAR DR, SAN MATEO, CA 94402-2622; 1855 S DELAWARE ST, SAN MATEO, CA 94402-7012; 1820 S GRANT ST, SAN MATEO, CA 94402-2648; 666 CONCAR DR, SAN MATEO, CA 94402-2622; 1880 S GRANT ST, SAN MATEO, CA 94402-2648; 690 CONCAR DR, SAN MATEO, CA 94402-2622; 1850 S GRANT ST, SAN MATEO, CA 94402-2648
PARCEL # 035242200, 035242210, 035242170, 035242140, 035242220, 035242160, 035242190 AS APPROVED BY THE CITY COUNCIL ON _________.

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DRAFT ORDINANCE
Approve a Development Agreement Execution Extension for Concar Passage Mixed-Use Project (PA-2018-052) WHEREAS, California Coastal Properties (“Applicant”) requested land use entitlements for construction of up to 961 residential units, 40,000 square feet of commercial space and associated parking, landscaping, roadway improvements and common areas (the “Project”), which included a development agreement with the City (the “Agreement”); and
WHEREAS, the City Council considered the application on August 17, 2020, and adopted a Supplemental Environmental Impact Report to the Rail Corridor Plan Environmental Impact Report as adequate to analyze the environmental impacts of the Project; and
WHEREAS, the City Council adopted Resolution Number 94 (2020) on August 17, 2020 approving the Project, subject to the Findings for Approval and Conditions of Approval; and WHEREAS, the City Council adopted Ordinance 2020-13 on August 17, 2020, approving a development agreement with the Applicant providing authority to the City Manager to execute the Agreement on or before September 20, 2023, provided that the Applicant obtains fee or ground leasehold interests in all of the parcels needed for the Project; and
WHEREAS, the Applicant has informed City staff that they will not be able to obtain fee or ground leasehold interests in all of the properties that comprise the Project by September 30, 2023; and WHEREAS, the Applicant has submitted a request to the City Council seeking to extend the date to execute the Agreement by two years to provide additional time to acquire legal or equitable interest in all of the parcels needed for the Project; and
WHEREAS, the Applicant, in exchange for the two-year extension, has agreed to reduce the term of the Agreement set forth in Article 1, Paragraph B, Page 3, from twelve (12) to ten (10) years; and WHEREAS, the Planning Commission held a public hearing on June 27, 2023, duly noticed, at which all public comments were considered and recommended that the City Council approve the extension request; and WHEREAS, the City Council held a public hearing on July 17, 2023, duly noticed, at which all public comments were considered.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAN MATEO ORDAINS AS FOLLOWS:

Section 1. In accordance with Government Code section 65867.5, the Agreement is consistent with the City’s General Plan and the Rail Corridor Transit Oriented Development Plan for the reasons set forth in the Findings for Approval in the Administrative Report accompanying this Ordinance; and

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Section 2. The Agreement is compatible with the requirements of the City’s General Plan and Zoning Ordinance as outlined in the original project approval, and
Section 3. For the reasons set forth in the Administrative Report accompanying the original project approval, the Agreement provides substantial public benefits to persons residing or owning property outside the boundaries of the development project, beyond the exactions for public benefits required in the normal development review process under federal, state, or local law; and
Section 4. The Council approves the following amendments to the Agreement in substantially the form attached as Exhibit A to this Ordinance and authorizes the City Manager to execute the amended Development Agreement as follows:
(a) Recitals (Q.) The Applicant shall obtain fee or ground leasehold interests in all parcels needed to complete the Project and execute the Agreement by September 30, 2025. If the Applicant has not obtained legal or equitable interests in all of the parcels required to complete the Project by September 30, 2025, the approval terminates.
(b) Article 1 (B.) The term of this Agreement shall commence upon execution of the Agreement and shall expire ten (10) years after the effective date.

Section 5. Environmental Determination. A Supplemental Environmental Impact Report to the Rail Corridor Plan Environmental Impact Report was prepared for this Project in accordance with Public Resources Code section 21061.

Section 6. Severability. In the event any section, clause or provision of this ordinance shall be determined invalid or unconstitutional, such section, clause or provision shall be deemed severable and all other sections or portions hereof shall remain in full force and effect.

Section 7. Publication. This Ordinance shall be published in summary in a newspaper of general circulation, posted in the City Clerk's Office, and posted on the City's website, all in accord with Section 2.15 of the City Charter.

Section 8. Legislative History and Effective Date. This ordinance was introduced on Clerk to complete., and adopted on Clerk to complete., and shall be effective 30 days after its adoption.

Place attachments here

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1 RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

City of San Mateo
330 West 20th Avenue
San Mateo, CA 94403
Attention: City Manager
Space Above This Line Reserved for Recorder’s Use
Exempt from Recording Fee Per Government Code Section 27383

DEVELOPMENT AGREEMENT
by and between the

CITY OF SAN MATEO,
a California municipal corporation
and

CONCAR DEVELOPMENT PARTNERS, LLC,
a Delaware limited liability company
regarding the
Concar Passages Mixed-Use Project
City of San Mateo, California
Effective Date: ___________

EXHIBIT A

PROPOSED AMENDMENT

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Table of Contents
Page
ARTICLE 1 GENERAL PROVISIONS .........................................................................................3 A. City and State Laws .........................................................................................................3 B. Term .................................................................................................................................3 C. Life of Project Approvals ................................................................................................3 D. Development of Property .................................................................................................4 E. Commencement and Timing of Development .................................................................4 F. Vested Rights ...................................................................................................................4 G. No Waiver of Rights to Existing Uses or Structures .......................................................4 H. Police Powers ...................................................................................................................4 I. Covenant of Good Faith ...................................................................................................4 ARTICLE 2 DEFINITIONS ............................................................................................................5 ARTICLE 3 OBLIGATIONS OF DEVELOPER AND CITY .......................................................8 A. Obligations of Developer .................................................................................................8 B. Obligations of City ...........................................................................................................9 ARTICLE 4 DEVELOPMENT OF PROPERTY..........................................................................11 A. Applicable New City Laws ............................................................................................11 B. Initiative and Moratoria .................................................................................................11 C. Subsequent Discretionary Powers .................................................................................12 D. Subsequent Approvals ...................................................................................................12 E. Other Agency Subsequent Approvals; Authority of City ..............................................12 F. Application, Processing and Inspection Fees ................................................................13 G. No New Development Impact Fees or Exactions ..........................................................13 H. Subdivision Maps ..........................................................................................................13 I. Subsequent CEQA Review ............................................................................................14 J. Processing During Third-Party Litigation .....................................................................14 K. Cooperation in the Event of Third-Party Legal Challenge ............................................14 ARTICLE 5 AMENDMENT OR CANCELLATION ..................................................................15 A. Amendments to Agreement (Developer and City) ........................................................15 B. Superseding State or Federal Laws ................................................................................15 ARTICLE 6 INDEMNIFICATION ...............................................................................................15 ARTICLE 7 MORTGAGEE PROTECTION AND ESTOPPEL CERTIFICATES ....................16

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A. Mortgagee Protection .....................................................................................................16 B. Estoppel Certificates ......................................................................................................17 ARTICLE 8 ANNUAL REVIEWS ...............................................................................................17 A. Annual Reviews .............................................................................................................17 B. Notice of Default ...........................................................................................................17 C. Planning Commission Determination Regarding Good Faith Compliance ...................17 D. Planning Commission Determination Regarding a Health or Safety Danger ...............17 E. Action by City Council ..................................................................................................18 ARTICLE 9 DEFAULT; REMEDIES; TERMINATION ............................................................18 A. Events of Default and Remedies ....................................................................................18 B. Termination ....................................................................................................................19 C. Judicial Proceeding to Challenge Termination ..............................................................19 D. Rights and Remedies Are Cumulative ...........................................................................19 E. No Cross-Default ...........................................................................................................19 ARTICLE 10 MISCELLANEOUS ...............................................................................................20 A. Enforceability .................................................................................................................20 B. Default by Developer; Withholding of Building Permits ..............................................20 C. Covenants Run with the Land ........................................................................................20 D. No Waiver ......................................................................................................................20 E. Force Majeure ................................................................................................................20 F. No Joint Venture or Partnership ....................................................................................21 G. Applicable Law and Venue ............................................................................................21 H. Severability ....................................................................................................................21 I. Attorneys’ Fees ..............................................................................................................21 J. Recordation of Termination ...........................................................................................21 K. Counterparts; Entire Agreement ....................................................................................21 L. Incorporation of Recitals and Exhibits ..........................................................................21 ARTICLE 11 ASSIGNMENT AND TRANSFER ........................................................................22 A. Assignment and Transfer ...............................................................................................22 B. Pre-Approved Transferees .............................................................................................22 C. Assumption and Release ................................................................................................23 D. Successive Assignment ..................................................................................................23 ARTICLE 12 NOTICES ................................................................................................................23

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EXHIBITS
Exhibit A - Property Description
Exhibit B - Timing of Supplemental Transportation Fee Payment Contributions Exhibit C - Site Plans for Public Benefit Facilities
Exhibit D - Pedestrian and Bike Improvements
Exhibit E - Potential Off-site Locations for Use of Transportation Contributions Exhibit F - Impact Fees
Exhibit G - Form of Assumption Agreement

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1 DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT (this “Agreement”) is made and entered into as of the Execution Date (as defined in Article 2B below), by and between the CITY OF SAN MATEO, a California municipal corporation (“City”), and CONCAR DEVELOPMENT PARTNERS , LLC, a Delaware limited liability company (“Developer”), pursuant to the authority of Sections 65864 through 65869.5 of the Government Code of the State of California (the “Development Agreement Statutes”) and City Council Resolution No. 120 (the “Development Agreement Resolution”). City and Developer are sometimes referred to herein as the “Parties.”

RECITALS
A. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California enacted the Development Agreement Statutes, authorizing municipalities to enter into development agreements in connection with the development of real property within their jurisdiction with persons having a legal or equitable interest in such real property.

B. The purpose of the Development Agreement Statutes is to authorize municipalities, in their discretion, to establish certain development rights in real property for a period of years regardless of intervening changes in land use regulations.

C. As authorized by Government Code Section 65865(c), the City has adopted the Development Agreement Resolution establishing the procedures and requirements for the consideration of development agreements within the City.

D. Developer has contract rights to acquire a fee or ground leasehold interest in that certain real property located 640, 666, 678 and 690 Concar Drive; 1820 and 1850 S. Grant Street; and 1855 S.

Delaware Street , San Mateo, California (APNs 035-242-090, -140, -160, -170, -190, -200, -210, -220), and shown and more particularly described in Exhibit A attached hereto (the “Property”).

E. On July 6, 2005, the City Council of the City of San Mateo (the “City Council”) adopted the San Mateo Rail Corridor Transit-Oriented Development Plan (the “Corridor Plan”), a plan formulated with the express goal of pursuing transit-oriented development within the transportation corridor along the Caltrain right-of-way.

F. On May 7, 2007, the City Council adopted an ordinance amending the City’s zoning regulations by establishing a transit-oriented development district (the “TOD District”) in which all uses must be consistent with the development standards, policies and guidelines specified in the Corridor Plan, and by rezoning those properties (including the Property) designated as Transit Oriented Development in the Corridor Plan.

G. On October 18, 2010, the City Council adopted Ordinance No. 134-2010, which approved an update to the City’s General Plan (the “General Plan”).

H. The Property is designated as Transit-Oriented Development under the 2030 General Plan; is zoned TOD-Transit Oriented Development and located in Area 2 of the Hayward Park Station TOD Overlay Zone of the Corridor Plan; and is designated as Neighborhood/Commercial Retail/Residential

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2 with a band of Ground Floor Retail along Concar Drive and High‐Density Residential/Office along Delaware Street.

I. Developer desires to develop the Property into a transit-oriented, high-density mixed-use development as encouraged and permitted by the General Plan (as defined in Article 2C below), the Corridor Plan and the TOD District.

J. On September 18, 2018, Developer submitted Planning Application No. 18-052 (the “Planning Application”) for, among other things, a Site Plan and Architectural Review; Site Development Planning Application and Vesting Tentative Map to demolish the existing 165,000 square foot retail strip center and adjoining surface parking and develop the Property into a transit-oriented development consisting of 961 residential units (of which will be ten percent (10%) affordable) and 40,000 square feet of commercial space, with 3 acres of open space, circulation, parking, infrastructure and grading improvements, and one level of below-grade parking (the “Project”).

K. Developer has committed to contribute toward the development of significant public infrastructure and other improvements in excess of what Developer could otherwise be legally required to provide (collectively, the “Public Benefits”).

L. In exchange for the Public Benefits, Developer desires this Agreement with the City to assure that Developer shall, at the time of application, be entitled to proceed to construct and complete the Project at any time within the Term (as defined in Article 1B below), subject only to the terms and conditions set forth in this Agreement, including, without limitation, providing the Public Benefits in accordance with Article 3A.1 below. City finds a substantial public benefit in the provision of the Public Benefits and the other benefits set forth in this Agreement.

M. City has determined that the Project is a development for which a development agreement is appropriate. A development agreement will eliminate uncertainty in the City’s land use planning for the Property, assure installation of necessary improvements and mitigation appropriate to the development of the Project, assure attainment of the maximum effective utilization of resources within the City at the least economic cost to its citizens, secure public improvements and other amenities that could not otherwise be obtained, and otherwise achieve the goals and purposes for which the Development Agreement Resolution was enacted by the City.

N. City has examined the environmental effects of the Project and the Public Benefits, and this Agreement pursuant to the California Environmental Quality Act (“CEQA”) through preparation of an Initial Study and Supplemental Environmental Impact Report (“SEIR”), State Clearinghouse (“SCH”) No. 2019039072. Pursuant to CEQA Guidelines § 15152, the SEIR tiers from the Final Environmental Impacts Reports previously prepared and adopted by the City for the Corridor Plan (SCH # 2003042170) and the 2030 General Plan (SCH # 2009032009). The City issued a Notice of Availability for public comments for the SEIR on March 25, 2020, and filed a Notice of Completion (“NOC”) for the SEIR on March 26, 2020.

O. On August 17 , 2020, the City Council reviewed and adopted the SEIR, including a Mitigation Monitoring and Reporting Program (“MMRP”); as adequate to assess the environmental effects of the Project and the Public Benefits in addition to the Planning Application, including this Agreement. The terms and conditions of this Agreement are consistent with and within the scope of the SEIR. Except as potentially required for the exercise of Subsequent Discretionary Powers (as defined in Article 4C below), no further environmental documentation is anticipated.

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3 P. After conducting a duly noticed public hearing on July 28, 2020, the Planning Commission of the City (the “Planning Commission”) reviewed, considered, and recommended approval of (1) the SEIR, and (2) the Planning Application, including this Agreement, thereby authorizing development of the Project and provision of the Public Benefits.

Q. After conducting a duly noticed public hearing on August 17, 2020, and after independent review and consideration, the City Council introduced Ordinance No. _____ directing the City Manager to execute this Agreement upon Developer obtaining rights to acquire a fee or ground leasehold interest in the Property (the “Enacting Ordinance”), and, by resolution, the Planning Application, thereby authorizing development of the Project and provision of the Public Benefits. In the event that Applicant does not obtain fee or ground leasehold interests in the Property by September 30, 20232025, the City Council’s approval of, and authorization to execute, this Agreement will terminate. The City Council also found that the provisions of this Agreement are consistent with the City’s General Plan as well as the Corridor Plan, are compatible with the requirements of the City’s zoning ordinance and provide substantial public benefits to persons residing or owning property outside the boundaries of the Project, beyond the exactions for public benefits required in the normal development review process under federal, state, or local law. In exchange for providing these public benefits, Developer receives assurance from City that Developer shall be entitled to proceed with development of the Project and provision of the Public Benefits in accordance with the Planning Application and the Existing City Laws (as defined in Article 3B.2 below), subject only to the terms and conditions contained in this including, without limitation, Article 4C below. The Enacting Ordinance becomes effective thirty days after adoption and is incorporated herein by reference.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and the foregoing recitals, which are incorporated herein by reference and made a part of this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, City and Developer hereby agree as follows:

ARTICLE 1

GENERAL PROVISIONS
A. City and State Laws. This Agreement is subject to applicable law pertaining to development agreements, specifically the Development Agreement Resolution and the Development Agreement Statutes.

B. Term. The term of this Agreement (the “Term”) shall commence upon the Effective Date and shall expire Twelve (12) Ten (10) years after the Effective Date, unless terminated, modified or extended, as provided herein, or under the Development Agreement Statutes and the Development Agreement Resolution.

C. Life of Project Approvals. All Existing Approvals as well as all subdivision approvals (including, without limitation, the Subdivision Maps referenced in Article 4G below), Site Plan and Architectural Review (“SPAR”) permits, Site Development permits, use permits, grading permits, building permits, sewer and water connection permits, certificates of occupancy, lot line adjustments, parcel maps and/or subdivision maps, building plans and specifications, and any other land use and development approvals for the Project and the Public Benefits (including but not limited to any tentative or other subdivision maps) (collectively, “Subsequent Approvals”) granted, issued or approved by the City shall be effective and valid for the duration of the Term, unless a longer period is permitted under otherwise Applicable Law.

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4 D. Development of Property. City approves and consents to the development of the Property and to the construction of the Project in substantial conformity with the Planning Application at any time during the Term, but only on the condition that:

1. Developer complies with all conditions of approval of the Planning Application (“Conditions of Approval”);

2. Developer complies with its obligations with respect to Public Benefits; and

3. A building permit application or applications for the substantive components of the Project has or have been filed prior to expiration of the Term, which building permits may be extended administratively for up to eighteen (18) months beyond the expiration of the Term to ensure substantial completion of the Project by that time. This provision shall survive the expiration of the Term.

E. Commencement and Timing of Development. The Parties acknowledge that except for any express deadlines set forth in this Agreement, including the schedule for the provision of Public Benefits attached hereto as Exhibit B (the “Timing of Transportation Contributions”), and in the Conditions of Approval, Developer shall have the right to develop the Project in such order and at such rate and at such times as Developer deems appropriate within the exercise of its subjective business judgment. This includes, without limitation, using some portions of the Property as construction staging areas during construction on other portions of the Property. Should Developer cease development at any phase, within 90 days of cessation of work, Developer shall submit for approval by the City a plan that will address circulation and safety concerns within and adjacent to the project site.

F. Vested Rights. Developer shall have the vested right to develop the Property, construct the Project and provide the Public Benefits, in accordance with the Project Approvals, the terms of this Agreement, and the Existing City Laws (as defined in Article 3B.2 below), provided, however, that this Agreement shall not supersede, diminish or impinge upon vested rights secured pursuant to other Applicable Laws, including without limitation, vested rights secured in connection with the Vesting Tentative Map pursuant to the California Subdivision Map Act (Gov’t Code §§ 66410 et seq.).

G. No Waiver of Rights to Existing Uses or Structures. Notwithstanding anything set forth in this Agreement to the contrary, under no circumstances shall Developer be obligated to proceed with the Project or any portion of the Project, and, at any time Developer shall be entitled to apply to the City for approvals to develop different projects, and/or to make repairs, improvements, additions and renovations to the existing buildings, structures, landscaping and infrastructure at the Property (the “Existing Improvements”), in conformance with the San Mateo Municipal Code (the “Municipal Code”). City agrees not to unreasonably or arbitrarily withhold, condition, or delay consent to such repairs, improvements, additions and renovations to the Existing Improvements. City expressly acknowledges that Developer has not abandoned or relinquished any rights to the Existing Improvements or the existing uses at the Property.

H. Police Powers. Except as otherwise provided in this Agreement, the City reserves its police powers unto itself.

I. Covenant of Good Faith. The Parties shall cooperate with each other and act in good faith in complying with the provisions of this Agreement. In their course of performance under this Agreement, the Parties shall cooperate and shall undertake such actions as may be reasonably necessary to implement the Project as contemplated by this Agreement.

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5 ARTICLE 2

DEFINITIONS
A. “Applicable City Laws” means (1) all City policies, standards and specifications set forth in this Agreement and the Existing Approvals, including the specific conditions of approval adopted with respect to the Existing Approvals; (2) with respect to matters not addressed by this Agreement or the Existing Approvals but governing permitted uses of the Property, building locations, sizes, densities, intensities, design and heights, site design, setbacks, lot coverage and open space, and parking, those City ordinances, rules, regulations, official policies, standards and specifications in force and effect on the Effective Date; and (3) with respect to all other matters, including building, plumbing, mechanical and electrical codes, those City ordinances, rules, regulations, official policies, standards and specifications in force and effect as may be enacted, adopted and amended from time to time, including New City Laws, except those in conflict with this Agreement.

B. “Applicable Law” means: (1) all State and Federal laws and regulations applicable to the Property and the Project as enacted, adopted and amended from time to time; and (2) the Applicable City Laws.

C. “Applicable New City Laws” as defined in Article 4A.

D. “Assumption Agreement” as defined in Article 11C.

E. “Blocks” as defined in Article 4H.1.

F. “CEQA” as defined in Recital N above.

G. “City Council” as defined in Recital E above.

H. “City Laws” as defined in Article 3B.2.

I. “City Manager” as defined in Article 9B.

J. “Conditions of Approval” as defined in Article 1D.1 above.

K. “Corridor Plan” as defined in Recital E above.

L. “Effective Date” means the Execution Date.

M. “Election to Proceed” as defined in Article 7A.2.

N. “Enacting Ordinance” as defined in Recital Q above.

O. “Event of Default” as defined in Article 9A.1.

P. “Execution Date” means the date on which all signatures to this Agreement have been obtained. The Parties acknowledge that the Execution Date shall not occur until Developer has acquired a legal or equitable interest in the Property , which must be no later than September 30 , 2023 . After September 30 , 2023 , the City Council’s approval of, and authorization to execute, this Agreement terminates. The City Manager shall execute the Agreement within five (5) days of the Developer’s notice that it has acquired a legal or equitable interest in the Property.

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6 Q. “Exactions” is defined as those exactions that may be imposed by the City as conditions of developing the Project, including but not limited to requirements for acquisition, dedication or reservation of land, obligations to design, construct or fund on-site or off-site public and private infrastructure improvements such as roadways, utilities or other improvements necessary to support the Project, whether such exactions constitute subdivision improvements, mitigation measures in connection with environmental review of the Project, measures imposed for the protection of the public health or safety or impositions made under Applicable Law.

R. “Existing City Laws” as defined in Article 3B.2.

S. “Existing Improvements” as defined in Article 1G above.

T. “Existing Project Approvals” means the Resolution No. ______ approving the Planning Application and Ordinance No. _____ adopting the Development Agreement U. “Force Majeure” as defined in Article 10E.

V. “General Plan” means the City of San Mateo General Plan, adopted by the City Council on July 16, 1990, including subsequent amendments thereto, in effect on the Execution Date.

W. “Good Faith Compliance” as defined in Article 8A.

X. “Health or Safety Danger” as defined in Article 4B.

Y. “Indemnified Parties” as defined in Article 6.

Z. “Master Tentative Maps” as defined in Article 4H.1.

AA. “MMRP” as defined in Recital O above.

BB. “Mortgage” means: (1) any mortgage or deed of trust or other transaction in which the Property, or a portion thereof or a direct or indirect ownership or other interest therein, or any improvements thereon, is conveyed or pledged as security; or (2) a sale and leaseback arrangement in which the Property, or a portion thereof, or any improvements thereon, is sold and leased back concurrently therewith.

CC. “Mortgagee” means any holder of a beneficial interest (or the owner and landlord in the case of any sale and leaseback arrangement) under a Mortgage.

DD. “Municipal Code” as defined in Article 1G above.

EE. “NOC” as defined in Recital N above.

FF. “Open Spaces” as defined in Article 4H.1.

GG. “Other Agency Subsequent Approvals” means Subsequent Approvals to be obtained from entities other than City.

HH. “PCE” as defined in Article 3A.1.e.

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7 II. “Planning Application” as defined in Recital J above.

JJ. “Planning Commission” as defined in Recital P above.

KK. “Pre-Approved Transferees” as defined in Article 11B.

LL. “Processing Fees” means all fees imposed by the City and payable upon the submission of an application for a permit or approval, which cover only the estimated actual costs of processing that application, and are not only applicable to the Project but applied citywide.

MM. “Project” as defined in Recital J above.

NN. “Project Approvals” means the Existing Project Approvals and Subsequent Approvals.

OO. “Property” as defined in Recital D above.

PP. “Public Benefits” as defined in Recital K above.

QQ. “SCH” as defined in Recital N above.

RR. “SEIR” as defined in Recital N above.

SS. “SPAR” as defined in Article 1C above.

TT. “Streets” as defined in Article 4H.1.

UU. “Subsequent Approvals” means the approvals defined in Article 1C above.

VV. “Subsequent Discretionary Powers” as defined in Article 4C.

WW. “Subsequent Tentative Map” as defined in Article 4H.2.

XX. “Superseding State or Federal Laws” as defined in Article 5B.

YY. “Supplemental Transportation Fee Payment” as defined in Article 3A.1.h.

ZZ. “Term” as defined in Article 1B above.

AAA. “Timing of Supplemental Transportation Fee Payment Contributions” as defined in Exhibit B.

BBB. “TOD District” as defined in Recital F above.

CCC. “Transfer” as defined in Article 11A.

DDD. “Transferee” as defined in Article 11A.

EEE. “Transferred Parcel” as defined in Article 11A.

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8 ARTICLE 3

OBLIGATIONS OF DEVELOPER AND CITY
A. Obligations of Developer.

1. Public Benefits. Subject to the terms and conditions of this Agreement, Developer shall provide the following Public Benefits:
a. Public Mobility Hub. Construction and maintenance of on-site approximately mobility hub for public and private transportation services accessible to the public substantially in the form depicted on the site plan attached hereto as Exhibit C. Once constructed, the public mobility hub shall be reserved for the life of the Project.
b. Day Care Facility. Construction of day care facility with outdoor play area substantially in the form depicted on the site plan attached hereto as Exhibit C. The day care facility space shall be reserved for day care operations for the life of the Project c. Community Theater. Construction of a community performance theater substantially in the form depicted on the site plan attached hereto as Exhibit C. The community theater shall be reserved for community theater for the life of the Project, unless a different use is approved pursuant to a subsequent planning application.
d. Affordable Housing. As approved in the Project Approvals. e. Energy Provider. Procure energy from the Peninsula Clean Energy (“PCE”) 100% Renewable Program, to the extent PCE or its successor-in-interest remains an operational and/or solvent community choice aggregator during the Term of this Agreement. f. Parks and Public Spaces. Construction and maintenance of publically accessible parks and open space substantially in the form depicted on Exhibit C. g. Pedestrian and Bike Improvements. Construct the pedestrian and bike improvements as shown on Exhibit D.
h. Supplemental Transportation Fee Payment. In addition to City’s transportation impact fees levied against the Project, Developer shall pay Seven Million, Five Hundred Thousand Dollars ($7,500,000) to City to fund off-site traffic improvements (“Supplemental Transportation Fee Payment”). The City shall hold Supplemental Transportation Fee Payment fees in a designated special, interest-bearing account dedicated for improvements within one half (½) mile of the Property as well as potential improvements to Delaware to 28th and Fashion Island Blvd. to Mariner’s Island Blvd. The City will conduct further feasibility analyses, engineering and outreach to determine the improvements to be constructed. The City may use the fees for traffic improvements that may include, but shall not be limited to, the following improvements along the 19th Avenue Fashion Island Corridor as shown on Exhibit E:
i) Two way conversion (add west bound lanes)
ii) Delaware/19th Avenue and Grant/19th Avenue intersection and signal modification
iii) Add southbound US 101 on-ramp lane

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9 iv) Westbound right turn lane on Fashion Island Boulevard v) Lengthen eastbound left-turn pocket at Norfolk/Fashion Island Boulevard vi) Reversible lane on Bridge
vii) Signal coordination (entire corridor)
viii) Convert eastbound right-turn lane to one through lane and one through/right turn lane
i. Supplemental Transportation Fee Payment Timing. Developer shall provide the monetary payments for traffic improvements described above in accordance with the schedule contained at Exhibit B. The Parties acknowledge that the monetary amounts contained at Exhibit B were based on construction costs as of the Effective Date, and shall be annually adjusted based on the Engineering News- Record (ENR) Construction Cost Index for San Francisco. j. Sales Tax Point of Sale Designation. Developer shall include a provision in its construction documents requiring contractors to use diligent good faith efforts (but without increasing the cost of materials) to require all persons and entities providing bulk lumber, concrete, structural steel and pre- fabricated building components, such as roof trusses, to be used in connection with the construction and development of, or incorporated into, the Project, to either (1) obtain a use tax direct payment permit or (2) elect to obtain a sub-permit for the job site of a contract valued at Five Millions Dollars ($5,000,000) or more in order to have the local portion of the sales and use tax distributed directly to the City instead of through the countywide pool. The City shall facilitate Developer’s compliance with this provision by providing assistance from the City’s sales tax consultant. k. Grant Funding Partnership. If requested in writing by City, Developer shall cooperate in applying for grant funding in connection with pursuing funding for transportation improvements.

Developer shall not be obligated to reimburse City for costs associated with pursuing such funding

2. Timing. Except as provided in Exhibit B regarding the timing of the Supplement Transportation Fee Payment, public benefits shall be provided concurrently with construction of the improvements that are in the same final map.

3. Modifications. To the extent that a public benefit requires modification, the Developer may submit a request for a modification in accordance with the City’s development agreement procedures, unless such modification is authorized under this Agreement.

B. Obligations of City

1. Development Plan Shall Not Be Diminished or Impeded by City. City agrees that during the Term, the timing, size, scope, nature, and Conditions of Approval of the Project shall not be changed, affected, modified, delayed, or diminished, regardless of any increased burden of pending, proposed or future developments on public facilities, including, without limitation, roads, water systems, roadways, intersections, sanitary sewers, storm sewers, utilities, traffic signals, curb gutters, sidewalks, parks, amenities, recreation areas, landscaping, schools, landfill, and other off-site improvements, except for requirements imposed by State or Federal law, and that no further CEQA compliance will be required of the Project as described in the Planning Application. Without limiting the foregoing, City further agrees

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10 that during the Term, with the exception of Public Benefits and the Conditions of Approval, no construction or contribution toward funding additional infrastructure or other improvements shall be required of Developer by City in connection with the Project, except for requirements imposed by State or Federal law. City shall take no action nor impose any condition that would conflict with this Agreement or the implementation of the Project or the Planning Application, including, without limitation, by: (i) reducing the density or intensity of the Project (including but not limited to floor area ratios of commercial/retail building or residential density), or any part thereof; (ii) reducing the height or bulk of the Project, or any part thereof; (iii) forbidding or limiting any permitted land uses; (iv) controlling the rate, timing, phasing or sequencing of the development of the Project; (v) controlling the availability of or any privileges or rights to public utilities, services or facilities; (vi) impose requirements for reservation or dedication of land for public purposes or requirements for infrastructure, public improvements, or public utilities, other than as provided in the Project Approvals or pursuant to this Agreement (vii) impose conditions upon development of the Property other than as permitted by the Existing City Laws, Applicable New City Laws or Superseding State or Federal Laws, the Project Approvals and this Agreement; (viii) limit the location of building sites, grading or other improvements on the Property in a manner that is inconsistent with this Agreement or the Project Approvals; (ix) frustrate in a material way the intent or purpose of Project Approvals in relation to the Project ; (x) require the issuance of additional permits or approvals by the City other than those required by Applicable Law controlling rents, purchase prices, ownership association fees or common area charges within the Project; (xii) limiting the processing or procuring of applications for Subsequent Approvals; (xiii) or imposing any development impact fees other than Existing City Laws, except as specifically permitted under Article 4.G below.

2. Existing City Laws. Except as specifically provided herein, City’s charter, General Plan, Corridor Plan, ordinances, resolutions, codes, rules, regulations and official policies governing the permitted uses of land, density and intensity of use, maximum height, bulk, size, design, location, setbacks, lot coverage and open space, parking and construction standards and specifications applicable to the Project, the Property, the Public Benefits, and the property on which the Public Benefits will be constructed (collectively, the “City Laws”) shall be only those City Laws in effect as of the Effective Date, without regard to any amendments or modifications thereto that become effective after the Effective Date (the “Existing City Laws”). City acknowledges and agrees that under the Existing City Laws, Developer shall be entitled to build and occupy the Project on the Property. If Developer applies for changes to the Existing City Laws during the Term, City agrees that it will process such applications pursuant to State law and the Municipal Code.

3. Recording. Pursuant to Government Code section 65868.5, within ten (10) days after this Agreement is executed by the Parties hereto, the City shall submit a complete original of this Agreement to the Recorder’s Office of the County of San Mateo, California, to be recorded and shall provide Developer with a certified copy of such recordation. From and after the time of such recordation, this Agreement shall impart such notice thereof to all persons as is afforded by the recording laws of this State, and the burdens of this Agreement, including all its exhibits, shall be binding upon, and the benefits of this Agreement, including all exhibits, shall inure to, all successors in interest to the Parties. If the Parties or their successors-in-interest amend, modify, cancel or terminate this Agreement pursuant to its terms, City shall have notice of such action recorded with the Recorder’s Office of the County of San Mateo, California, within ten (10) days, and shall provide Developer with a certified copy of such recordation.

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11 ARTICLE 4

DEVELOPMENT OF PROPERTY
A. Applicable New City Laws. Notwithstanding Article 3Article 3B.2 above, City may apply the following new City Laws to the Project, the Property, the Public Benefits, and the property on which the Public Benefits will be constructed (“Applicable New City Laws”):

1. New City Laws that (a) are not inconsistent with and do not conflict with the Existing City Laws, the Planning Application, the Project, or the Conditions of Approval, (b) do not diminish any of Developer’s rights granted in this Agreement or increase any of Developer’s obligations with respect to the Project, including, without limitation, as provided under Article 3B above, and (c) are not inconsistent with and do not conflict with any of the terms or conditions of this Agreement provided such New City Laws are uniformly applied to all substantially similar types of development projects and;

2. New City Laws that are specifically mandated and required by changes in State or Federal laws and regulations; and

3. New City Laws that are applicable to the following situations and are in effect at the time that Developer submits an application for a building permit for the Project:
a. Procedural requirements for building and occupancy permit application submittal and issuance;
b. Construction standards pursuant to all Uniform Building Codes incorporated by the Municipal Code;
c. Engineering specifications for construction of any off-site public improvements such as curbs, gutters, and sidewalks;
d. Building security requirements adopted pursuant to Title 23 of the Municipal Code; e. Any requirements applicable upon issuance of a building permit for which City acts as an administering agent for any State or Federal agency; and f. Any Processing Fees, in accordance with Article 4E, below.

B. Initiative and Moratoria. In the event that any ordinance, resolution, general plan amendment, specific plan or specific plan amendment, or other measure is enacted, whether by action of the City, by initiative, referendum, or otherwise, which relates to the timing of development, the size or scope of all or any part of the Project, or the conditions, mitigation measures, exactions, or impact fees to be imposed on all or any part of the Project, City agrees that such ordinance, resolution, general plan, specific plan or other measure shall not apply to the Project, the Property, the Public Benefits, the property on which the Public Benefits will be constructed, or this Agreement; provided, however, the Parties acknowledge that City's approval of this Agreement is a legislative action subject to referendum. It is the desire of the Parties to avoid the result in Pardee Construction Co. v. City of Camarillo, 37 Cal.3d 465 (1984), in which the California Supreme Court held that because the parties there had failed to consider and expressly provide for the timing of development, a later-adopted initiative restricting the timing of development prevailed over the parties’ agreement. City shall reasonably cooperate with Developer and, at Developer’s expense, shall undertake such actions as may be necessary to ensure this Agreement

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12 remains in full force and effect. City shall use reasonable efforts to not support, adopt or enact any New City Laws that would violate any express provisions of this Agreement Subject to Applicable Law relating to the vesting provisions of development agreements, Developer and City intend that, except as otherwise provided herein, this Agreement shall vest the Project Approvals against subsequent City resolutions, ordinance, growth control measures and initiatives or referenda, other than a referendum that specifically overturns City’s approval of the Project Approvals, that would directly or indirectly limit the rate, timing, or sequencing of development, or would prevent or conflict with the land use designations, permitted or conditionally permitted uses on the Property, design requirements, density or intensity of uses as set forth in the Project Approvals, and that any such resolution, ordinance, initiative, or referendum shall not apply to the Project Approvals and the Project. Without limiting the foregoing, Article 3B above, City agrees that no moratorium or other limitation (whether relating to the timing or sequencing of the development, or the size, scope, conditions, or construction of all or any part of the Project) affecting building permits or other entitlements to use or development which are approved or to be approved, issued or granted within the City, or portions of the City, shall apply to the Project, the Property, the Public Benefits, the property on which the Public Benefits will be constructed, or this Agreement, unless such moratorium or other limitation has been adopted by City as an emergency ordinance on the basis of its finding that a significant public health or safety emergency exists such that the failure of the City to terminate or modify the provisions of this Agreement would place the residents of the City in a condition dangerous to their health or safety (a “Health or Safety Danger”), in which case the Term shall be extended automatically for a period of time equal to that of such emergency moratorium or other limitation affecting development of the Project. Developer reserves the right to challenge any such limitation in a court of law should it become necessary to protect or enforce the provisions and intent of this Agreement.

C. Subsequent Discretionary Powers. Developer acknowledges that the Existing City Laws contemplate the exercise of subsequent discretionary powers by the City, subject to City’s obligations under Article 3B . These constitute “Subsequent Discretionary Powers,” and may include, without limitation, Subsequent Approvals and finalization of the financing actions necessary to implement the monitoring and implementation of environmental mitigation measures. Except as otherwise expressly provided herein, the City shall not impose requirements or conditions upon Project development and construction that are inconsistent with the Project Approvals, Applicable New City Laws and the terms and conditions of this Agreement. Further, except as expressly provided herein, City shall not exercise discretion in determining whether or how to grant Subsequent Discretionary Powers in a manner that would prevent development of the Project for the uses and up to the maximum intensity of development set forth in the Existing Approvals.

D. Subsequent Approvals. All Subsequent Approvals shall be deemed incorporated herein and vested as of the Effective Date as long as such Subsequent Approvals are deemed to be in substantial conformance with the Project Approvals. Subsequent Approvals that are deemed to be modifications will be processed in accordance with Municipal Code Section 27.08.080 [Modifications] and vested as of the effective date of such approvals.

E. Other Agency Subsequent Approvals; Authority of City. City shall cooperate with Developer, to the extent appropriate and as permitted by law, in Developer's efforts to obtain, as may be required, Other Agency Subsequent Approvals. Developer agrees that City may review, modify, approve and/or reject any such materials or applications to ensure consistency with this Agreement and the Project Approvals and Developer shall incorporate any and all changes required by City prior to submitting such materials and applications to the other governmental or quasi-governmental entities for review and/or approval.

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13 F. Application, Processing and Inspection Fees. Processing Fees that are revised during the Term shall apply to the development of the Project pursuant to this Agreement provided that (1) such revised fees apply uniformly to similar private projects or works within City, (2) the application of such fees to development of the Project is prospective only, unless otherwise agreed to by Developer, and (3) the application of such fees to development of the Project would not require an amendment of this Agreement, including, without limitation, any of the exhibits incorporated herein.

G. No New Development Impact Fees or Exactions. City expressly agrees that Developer and its successors-in-interest shall have no obligation to participate in, pay, contribute, or otherwise provide as a condition or exaction of any Subsequent Approval by City, any new impact fees imposed on development, however described or defined, that did not exist under the Existing City Laws and as shown on 0F. This provision will not preclude increases or decreases to those development impact fees in existence under the Existing City Laws in accordance with the state Mitigation Fee Act, except as provided in 0F. The City shall not modify or renegotiate the development impact fees applicable to the Project as a result of any amendment to this Agreement or the Planning Application unless such amendment materially increases the density or intensity of the Project. The Parties acknowledge that the provisions contained in this Article 4F, are intended to implement the intent of the Parties that Developer has the right to develop the Project pursuant to specified and known criteria and rules, and that City receives the benefits which will be conferred as result of such development without abridging the right of City to act in accordance with its powers, duties and obligations. In addition, except as provided herein, in any Subsequent Approvals, the City will not impose and the Developers will not be required to comply with and/or pay for any exactions other than as provided in or contemplated by this Agreement and the Existing Approvals.

H. Subdivision Maps.

1. Developer shall have the right, from time to time or at any time, to apply for one (1) or more Tentative Maps (“Master Tentative Maps”), subdividing the Property or portions of the Property into parcels corresponding to the “Blocks,” “Streets” and/or “Open Spaces” (all, as specified in the Planning Application), as may be necessary in order to develop, sell, lease or finance any portion of the Property in connection with development of the Project consistent with the density and parcel sizes set forth in the Planning Application. Multiple final maps may be filed for any Master Tentative Map pursuant to Government Code Section 66456.1.

2. Developer shall have the right to apply for a subsequent Tentative Map (“Subsequent Tentative Map”) prior to the time that the Master Tentative Map has been approved and prior to the time that the Final Subdivision Map based on the Master Tentative Map has been approved and filed for record.

City may grant approval of a Master Tentative Map or of a Subsequent Tentative Map or Subsequent Tentative Maps with conditions as to the development of the parcel or parcels described on the Master Tentative Map or Subsequent Tentative Map. Conditions of approval of a Subsequent Tentative Map shall include that the conditions of the Master Tentative Map as to the parcel or parcels shown and described on the Subsequent Tentative Map have been fulfilled.

3. Each Master Tentative Map, Subsequent Tentative Map and Final Subdivision Map may be “for condominium purposes,” approving the portion of the Property described therein for a maximum number of condominium units. Any portion of the Property described on a Final Subdivision Map “for condominium purposes” may be divided into condominiums by a condominium plan in accordance with Civil Code Section 1351(e) and Government Code Section 66427. A Final Subdivision Map for a portion of the Property described in a Tentative Map may not be approved until the conditions of approval of the

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14 Tentative Map applicable to the portion of the Property described in the Final Subdivision Map have been satisfied.

4. Pursuant to Government Code Section 65867.5(c), City has determined that this Agreement is not subject to the provisions of Government Code Section 66473.7 for the following two (2) independent reasons: (a) the Project is a residential project proposed for a site that is within an urbanized area and has been previously developed for urban uses; and (b) the immediate contiguous properties surrounding the Property are, and previously have been, developed for urban uses, all within the meaning of Government Code Section 66473.7(i). Therefore, the maps referenced in this Article 4G shall be exempt from the requirements of Government Code Section 66473.7 concerning water verifications.

5. Notwithstanding that the Project Approvals and this Agreement apply to the entire Property and run with the land, if and to the extent that the Property is subdivided into separate parcels and any such parcels are transferred, following the execution of an Assumption Agreement in connection with a Transferred Parcel (as defined in Article 11A below) the obligations of a Transferee (as defined in Article 11A below) shall be limited to those provisions of the Project Approvals and this Agreement only insofar as they apply to the parcel owned by such Transferee. Without limiting the generality of the foregoing, the owner of such Transferred Parcel shall not be chargeable with any omission, commission, default or delay under the Project Approvals regarding any other parcels making up the Property that it does not own. This provision to make the undertakings with respect to each parcel making up the Property severable is included in order to facilitate the separate ownership, financing and/or development of parcels making up the Property without concern for any non-compliance attributable to the acts of others.

I. Subsequent CEQA Review. The SEIR, which has been certified by City as being in compliance with CEQA, addresses the potential environmental impacts of the entire Project as it is described in the Project Approvals. In the event that any additional CEQA documentation is legally required for any discretionary Subsequent Approval for the Project, then the scope of such documentation shall be focused, to the extent possible consistent with CEQA, on the specific subject matter of the Subsequent Approval.

J. Processing During Third-Party Litigation. The filing of any third-party lawsuit(s) against City or Developer relating to this Agreement, the Project Approvals, any other development permits or approvals, or issues affecting the Project or the Property, shall not give cause to the City to delay or stop the development, processing or construction of the Project, or the exercise by the City of any of its Subsequent Discretionary Powers, unless such third party obtains a court order preventing the activity.

City shall not stipulate to the issuance of any such order.

K. Cooperation in the Event of Third-Party Legal Challenge. City and Developer shall cooperate in the event of any legal action instituted by a third party or other governmental entity or official challenging the validity of any provision of this Agreement, any Project Approvals or the underlying environmental review and documents. To the extent that Developer determines, in its sole discretion, to contest such litigation challenges, Developer shall reimburse City, within thirty (30) days following City's written demand therefor, which may be made from time to time during the course of such litigation, all costs incurred by City in connection with the litigation challenge, including City's administrative, legal and court costs, provided that City shall either: (a) elect to joint representation by Developer’s counsel; or (b) retain an experienced litigation attorney, and require such attorney to (i) prepare and comply with a litigation budget that is mutually agreeable to City and Developer,; and (ii) provide Developer with monthly written updates of incurred and anticipated legal expenses. If Developer elects, in its sole and absolute discretion, not to contest such litigation, City shall have no obligation to contest such challenges.

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15 If the City elects to contest such challenges after Developer elects not to contest, the City shall do so at its sole cost.

ARTICLE 5

AMENDMENT OR CANCELLATION
A. Amendments to Agreement (Developer and City). This Agreement may be amended, or cancelled in whole or in part, at any time and from time to time by mutual consent of the Parties in writing, in accordance with the provisions of Government Code Section 65868 upon notice of intention to amend or cancel in the form required by Government Code section 65867, and adoption of an ordinance amending or cancelling this Agreement; provided, however, that following the execution of an Assumption Agreement in connection with a Transferred Parcel (as defined in Article 11A below), this Agreement may be so amended or cancelled as it relates solely to such Transferred Parcel without the consent of the owners of any other parcels within the Property. Developer shall record an appropriate notice of any Amendment, cancellation or termination with the San Mateo County Recorder not later than ten (10) days after the effective date of the action effecting such amendment, cancellation or termination, accompanied by a legal description of the Property.

B. Superseding State or Federal Laws. As provided in Government Code section 65869.5, in the event that State or Federal laws or regulations enacted after the Effective Date prevent or preclude compliance with one or more provisions of this Agreement or require changes in the Project Approvals (“Superseding State or Federal Laws”): (1) such Superseding State or Federal Laws shall be treated as a Force Majeure pursuant to Article 10E below; and (2) this Agreement shall be suspended, or, with Developer’s written consent, modified or its Term extended as necessary to comply with such Superseding State or Federal Laws. It is the intent of the Parties that any such modification or suspension be limited to that which is necessary, and to preserve to the extent possible the original intent of the Parties in entering into this Development Agreement Within two (2) months following the enactment of any such Superseding State or Federal Laws, Developer and the City shall meet and confer in good faith to determine the feasibility of any such modification, extension or suspension based on the effect such modification, extension or suspension would have on the purposes and intent of this Agreement and the cost to Developer of constructing and completing the Project; and if such modification, extension or suspension cannot be agreed upon, then Developer may terminate this Agreement on thirty (30) days’ notice to City. In addition, Developer shall have the right to challenge such Superseding State or Federal Laws, and in the event such challenge is successful, this Agreement shall remain unmodified and in full force and effect.

ARTICLE 6

INDEMNIFICATION
Developer agrees to defend, indemnify, release, and hold harmless the City, its elected and appointed officials, employees, and agents, from and against any litigation, claim, action, or court proceeding brought against any of the foregoing individuals or entities (“Indemnified Parties”), the purpose of which is to attack, set aside, void, or annul this Agreement, excepting suits and actions arising from the sole negligence or willful misconduct of City. This indemnification shall include, but not be limited to, damages, costs, expenses, attorney fees (including court-awarded attorney fees), or expert witness fees that may be asserted or incurred by Indemnified Parties, arising out of or in connection with the approval of this Agreement. If Developer is required to defend Indemnified Parties in connection with any litigation, claim, action, or court proceeding, the City shall retain the right to approve counsel retained by Developer as well as any and all settlements proposed by Developer, which approval shall not be unreasonably

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16 withheld, conditioned, or delayed. Developer shall also have the right to approve any and all settlements of any such matters proposed by the City and relating to this Agreement, which approval shall not be unreasonably withheld, conditioned, or delayed. City agrees to cooperate with Developer in the defense of the claim, action, or proceeding. Nothing in this Article shall be construed to mean that Developer shall defend, indemnify, release, or hold harmless, the Indemnified Parties from any claims of personal injury, death, or property damage arising from, or alleged to arise from the maintenance or repair by the Indemnified Parties of improvements that have been offered for dedication and accepted by City, or for the Indemnified Parties’ negligence or willful misconduct. This section shall sunset and have no further force or effect automatically and concurrently with the expiration of all applicable statutes of limitation for claims covered by this Article 6.

ARTICLE 7

MORTGAGEE PROTECTION AND

ESTOPPEL CERTIFICATES
A. Mortgagee Protection.

1. Mortgagee Protection. This Agreement shall be superior and senior to any lien placed now or hereafter upon the Property, or any portion thereof, including the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any such Mortgage made in good faith and for value, but all of the terms and conditions contained in this Agreement shall be binding upon and effective against any person or entity that acquires title to the Property, or any portion thereof, by foreclosure, trustee’s sale, deed in lieu of foreclosure or otherwise.

2. Mortgagee Not Obligated. Notwithstanding anything in this Agreement to the contrary, no Mortgagee shall have any obligation or duty under this Agreement to proceed with the Project, and unless such Mortgagee elects to proceed with the Project it shall not be obligated to provide the Public Benefits, indemnify the Indemnified Parties under Article 6 above or pay any applicable Processing Fees or development impact fees. However, in the event that Mortgagee both (a) takes possession of the Property as a result of a foreclosure or deed in lieu of foreclosure and (b) gives notice to the City that Mortgagee elects to proceed with the Project (“Election to Proceed”), then Mortgagee shall assume all the obligations imposed on Developer in connection with undertaking the Project, including, without limitation, the provision of Public Benefits, the indemnification of the Indemnified Parties under Article 6 above, and the payment of all applicable Processing Fees and development impact fees. Failure by Mortgagee to give notice to the City of its Election to Proceed within thirty (30) days of Mortgagee’s taking possession of the Property as a result of a foreclosure or deed in lieu of foreclosure shall constitute an Event of Default as described in Article 9A.1, in which case City shall retain the remedies against Developer set forth in Article 9A.3.

3. Notice of Default; Right to Cure. If City receives a written notice from a Mortgagee requesting a copy of any notice of default given to Developer hereunder and specifying the address for service thereof, then City shall deliver to such Mortgagee, concurrently with service thereon to Developer, any notice of default or determination of noncompliance given to Developer. Each Mortgagee shall have the right (but not the obligation) for a period of ninety (90) days after the receipt of such notice from City to cure or remedy the default claimed or the areas of noncompliance set forth in City’s notice. If such default or noncompliance is of a nature that it can only be cured or remedied by such Mortgagee upon obtaining possession of the Property, then such Mortgagee shall seek to obtain possession with diligence and continuity through a receiver or otherwise, and shall within ninety (90) days after obtaining possession cure or remedy such default or noncompliance. If such default or noncompliance cannot with diligence

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17 either be cured or remedied within such ninety-(90-) day period, then such Mortgagee shall have such additional time as may be reasonably necessary to cure or remedy such default or noncompliance if such Mortgagee commences such cure or remedy during such ninety- (90-) day period and thereafter diligently pursues completion of such cure or remedy to the extent possible.

B. Estoppel Certificates. Either Developer or City may, at any time, and from time to time, deliver written notice to the other party requesting such party to certify in writing that, to the actual knowledge of the certifying party: (1) this Agreement is in full force and effect and a binding obligation of the Parties; (2) this Agreement has not been amended or modified either orally or in writing (or else identifying any such amendments or modifications); (3) the requesting party is not in default in the performance of its obligations under this Agreement (or else describing the nature and amount of any such defaults); and (4) any other factual matters reasonably pertaining to this Agreement, the Project and the Public Benefits as may be reasonably requested. A party receiving a request hereunder shall execute and return such certificate to the requesting party or its designee within ten (10) days following the receipt thereof. The certification of City may be executed on behalf of City by the City Planning Director. City acknowledges that a certificate hereunder may be relied upon by existing or prospective Mortgagees, existing or prospective tenants of the Property, and Transferees (as defined in Article 11A below). City acknowledges a certificate hereunder issued in connection with the proposed transfer of the Property shall be binding and conclusive with respect to whether there is any Default of the prior owner under this Agreement.

ARTICLE 8

ANNUAL REVIEWS
A. Annual Reviews. Beginning on the Effective Date, at least once every 12 months during the Term, Developer shall contact the City and request the scheduling of a hearing before the Planning Commission in order to demonstrate that Developer has sufficiently followed the terms of this Agreement so as to carry out the intent of the Parties in entering into it (“Good Faith Compliance”). The City shall provide Developer with notice of such hearing and a copy of all staff reports and related exhibits as soon as available, but in no event later than five (5) business days prior to the hearing.

B. Notice of Default. If either of the Parties finds evidence of default by the other party during the course of any such review, it shall give written notice to the other party specifying the nature of the default and the manner in which it may be satisfactorily cured, and the Parties shall have the rights set forth in Article 9 below.

C. Planning Commission Determination Regarding Good Faith Compliance. If, as a result of any such review, the Planning Commission determines, on the basis of substantial evidence, that Developer is in Good Faith Compliance, such determination shall be subject to appeal in accordance with the procedures set forth in Municipal Code Section 27.08.090. Alternatively, if, as the result of any such review, the Planning Commission determines, on the basis of substantial evidence, that Developer is not in Good Faith Compliance, then the Planning Commission shall (1) specify on the record the respects in which Developer has failed to so comply with this Agreement, and (2) give notice to Developer of such determination and specification pursuant to Article 12 below, which notice shall serve as written notice by City to Developer of a default pursuant to Article 9A.1 below.

D. Planning Commission Determination Regarding a Health or Safety Danger. If, as a result of any such review, the Planning Commission determines, on the basis of substantial evidence, that, subject to Article 3B and Article 4 above, there exists a Health or Safety Danger, then the Planning

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18 Commission shall (1) specify on the record the factual basis for finding such Health or Safety Danger, (2) give notice to Developer of such determination and specification pursuant to Article 12 below, and (3) make recommendations to the City Council regarding modifications to or termination of this Agreement.

E. Action by City Council. In the event that either (1) an Event of Default arises pursuant to Article 9A.1 below, or (2) the Planning Commission makes recommendations to the City Council regarding modifications to or termination of this Agreement pursuant to Section D above regarding a Health or Safety Danger, the City Council shall hold a public hearing to consider terminating or modifying this Agreement. Notice of such hearing shall be given as set forth in Article 6 of the Development Agreement Resolution. If the City Council determines, on the basis of substantial evidence, that Developer is not in Good Faith Compliance, or that a Health or Safety Danger exists, then the City Council may terminate or, with Developer’s written consent and in accordance with Article 5A above, modify this Agreement. At such hearing City shall demonstrate on the record the grounds and basis on which it claims the right to terminate this Agreement, if any. Any challenge to the City’s termination of this Agreement on account of a Health or Safety Danger shall be subject to review in the Superior Court of the County of San Mateo.

ARTICLE 9
DEFAULT; REMEDIES; TERMINATION
A. Events of Default and Remedies.

1. Events of Default. Subject to any extensions of time by mutual written consent of the Parties, and subject to the provisions of Article 8E above regarding Good Faith Compliance, and Article 9A.2 below regarding Force Majeure, any failure by either party to perform any material terms or provision of this Agreement (including any failure to comply in good faith with the terms of this Agreement) shall constitute an event of default (an “Event of Default”): (a) if such defaulting party does not cure such failure within sixty (60) days after receiving written notice of default from the other party, where such failure is of a nature that can be cured within such sixty- (60-) day period; or (b) if such failure is not of a nature that can be cured within such sixty- (60-) day period, the defaulting party does not within such sixty- (60-) day period commence substantial efforts to cure such failure, or thereafter does not prosecute to completion with diligence and continuity the curing of such failure.

2. Enforced Delay Extension of Time of Performance. No party shall be deemed to be in default or noncompliance under this Agreement, or suffer a termination of this Agreement (or any rights hereunder), where the alleged default, noncompliance, or terminating event or delay is due to any Force Majeure, as described in Article 10E hereof. If written notice of any such default, noncompliance, or terminating event or delay is given to either party within thirty (30) days after the commencement thereof, an extension of time for such cause will be granted for the period of the enforced default, noncompliance, or terminating event or delay, or longer if the Parties mutually agree.

3. Remedies. If an Event of Default occurs, the nondefaulting party may not exercise any rights or remedies unless and until it has first requested in writing that the Parties schedule a meeting to occur before a neutral mediator to attempt to mediate and resolve the dispute. Within ten (10) days after expiration of the sixty- (60-) day cure period provided in Article 9A.1 above, the nondefaulting party shall submit: (a) a list of three neutral mediators, each of whom must have at least five (5) years experience with performance under development agreements made and entered into in the State of California pursuant to the Development Agreement Statutes; (b) and dates the mediators are available at the time it requests the meeting. Within ten (10) days of receiving such list, the defaulting party shall select one neutral

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19 mediator from the list provided. If the dispute is not resolved within sixty (60) days after the nondefaulting party has requested a meeting, and the nondefaulting party has provided at least three (3) available business days for such a meeting at which its own representative and the neutral mediator are available at a location within the City of San Mateo, regardless of whether the Parties have actually met to mediate the dispute, the nondefaulting party shall have the right to (a) bring any proceeding in the nature of specific performance, injunctive relief, declaratory relief or mandamus, and/or (b) bring any action at law or in equity to compensate the nondefaulting party for all the detriment proximately caused by the defaulting party’s Event of Default; provided, however, that (x) Developer’s sole remedy shall be specific performance and Developer shall not have the right to recover monetary damages (compensatory, consequential or punitive) against City other than attorneys’ fees to the extent provided in Article 10I below, and (y) City’s sole remedies, other than attorneys’ fees to the extent provided in Article 10I below, shall be specific performance of Developer’s obligation to provide the Public Benefits as specified herein or the right to receive and retain the Public Benefits in the total dollar amount of the “Supplemental Transportation Fee Payment” set forth in Exhibit B of this Agreement (subject to permitted annual adjustments) and specified in Article 3B.1 (h) as liquidated and agreed upon monetary damages. In addition, the non-defaulting party shall have the right to terminate this Agreement in accordance with the procedures set forth in Article 9B below, but any such termination shall not affect such party’s right to seek any remedy permitted by this Agreement on account of the Event of Default for which this Agreement has been terminated.

B. Termination. If either party determines that it has the right pursuant to Article 9A.3 above to terminate this Agreement as it relates to all or a portion of the Property or Project and elects to exercise that right, then it shall give written notice thereof to the other party pursuant to Article 12 below. If City is the party that delivers any such termination notice, the City Council shall hold a public hearing to consider terminating this Agreement. Notice of such hearing shall be given as set forth in Section 6 of the Development Agreement Resolution. At such hearing City shall demonstrate on the record the grounds and basis on which it claims the right to terminate this Agreement. Upon conclusion of such public hearing, the City Council shall direct the City Manager of the City or his or her designee (the “City Manager”) to take whatever action the City Council deems necessary or appropriate in connection with City’s termination notice, including terminating this Agreement. If Developer is the party that delivers any such termination notice, then this Agreement shall automatically terminate upon such delivery. The provisions of this Article 9B, shall not be construed so as to place additional noticing requirements upon the termination of this Agreement pursuant to Article 8D above, or Developer’s freeing itself from further obligations pursuant to Article 11B below.

C. Judicial Proceeding to Challenge Termination. Any challenge to a party’s termination of this Agreement on account of an Event of Default by the other party shall be subject to review in the Superior Court of the County of San Mateo.

D. Rights and Remedies Are Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by a Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by another Party, except as otherwise expressly provided herein.

E. No Cross-Default. Notwithstanding anything in this Agreement to the contrary, following the execution of an Assumption Agreement in connection with a Transferred Parcel (as defined in Article 11A below), the owner of such Transferred Parcel shall not be chargeable with any other parcel owner’s non-compliance with the Project Approvals or this Agreement, and City shall have no recourse under this

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20 Article 9 or otherwise against any such non-defaulting owner and no right under this Article 9 to terminate or modify this Agreement as it relates to any parcel of the Property, and any portion of the Project thereon, owned by any such non-defaulting developer. This provision to make the undertakings with respect to each parcel making up the Property severable is included in order to facilitate the separate ownership, financing and/or development of portions of the Property without concern for any so-called cross-default attributable to the acts of others.

ARTICLE 10

MISCELLANEOUS
A. Enforceability. Except as otherwise provided herein, the rights of the Parties under this Agreement shall be enforceable notwithstanding any change subsequent to the Execution Date in any applicable City Laws.

B. Default by Developer; Withholding of Building Permits. City may, at its discretion, refuse to issue a building permit for any Project-related structure within the geographical confines of the Property as the same is defined at the time of said application, if Developer has failed and refuses to complete any material requirement enumerated therefor in accordance with the terms of this Agreement. No building permit shall be issued or building permit application accepted for the building shell of any structure on the Property if the permit applicant owns or controls any property subject to this Agreement, and if such applicant or any entity or person controlling such applicant is in default of the terms and conditions of this Agreement as determined pursuant to Article 8 or Article 9 above; provided, however, that following the execution of an Assumption Agreement in connection with a Transferred Parcel (as defined in Article 11A below), the owner of such Transferred Parcel shall not be chargeable with any other parcel owner’s non- compliance with the Project Approvals or this Agreement, and the City shall have no recourse under this Section B against such non-defaulting Transferee by delaying or refusing to accept, process or approve a building permit application for such Transferred Parcel. This provision to make the undertakings with respect to each parcel making up the Property severable is included in order to facilitate the separate ownership, financing and/or development of portions of the Property without concern for any so-called cross-default attributable to the acts of others.

C. Covenants Run with the Land. The provisions of this Agreement shall constitute covenants which shall run with the land comprising the Property. The burdens and benefits hereof shall bind and inure to the benefit of all successors in interest and permitted assigns to the Parties hereto.

D. No Waiver. No failure, delay or omission by a party in exercising or asserting any right, power or remedy hereunder shall impair such right, power or remedy, and no failure, delay or omission by a party occurring upon the other party’s noncompliance with or failure to perform the terms and conditions of this Agreement shall be construed as a waiver thereof. A waiver by either party of any failure on the part of the other party to perform any of the terms or conditions to be performed by such other party shall not be construed as a waiver of any succeeding failure of the same or other terms or conditions hereof, nor shall any failure, delay or omission by a party in asserting any of its rights or remedies hereunder deprive such party of its right to institute and maintain any action or proceeding which it may deem necessary to protect, assert or enforce any such rights or remedies.

E. Force Majeure. In the event any party to this Agreement is unable to perform or fulfill any of the terms or conditions of this Agreement on account of acts of God, enemy action, terrorism, war, insurrection, strikes, labor disputes, unavailability of labor or materials, walk-outs, riots, governmental actions or restrictions (including, without limitation, Superseding State or Federal Laws), administrative

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21 appeals or legal challenges to this Agreement, the Project Approvals, or any other approval required for the Project or any initiatives or referenda regarding the same, moratorium, judicial orders, third-party actions, floods, earthquakes, fires, casualties, unusually inclement weather of a magnitude in excess of seasonally anticipated conditions for the subject climate and time of year, any act or omission caused by the other party, acts or failures to act of any public or governmental agency or entity (except that acts or failures to act of City shall not excuse performance by City), epidemics; quarantine restrictions; freight embargoes; environmental conditions, pre-existing or discovered, delaying the construction or development of the Property or any portion thereof (“Force Majeure”), the party obligated to so perform or prevented from performing thereby shall be excused from said performance until such time as said party shall no longer be prevented from performing on account of any such Force Majeure, and the Term shall be extended automatically for a period of time equal to that of such Force Majeure. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and Developer.

F. No Joint Venture or Partnership. Nothing contained herein or in any document executed in connection herewith shall be construed as making City and Developer joint venturers or partners, or render either party liable for any obligations of the other.

G. Applicable Law and Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California. In the event of litigation, venue will be in the County of San Mateo or the US District Court, Northern California District.

H. Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect.

I. Attorneys’ Fees. Should any legal action be brought by any party because of breach of this Agreement or to enforce any provision of this Agreement, each party shall bear their own attorney's fees and such other costs as may be incurred: The prevailing party in any action or actions to enforce the provisions of this Agreement shall be limited to recovering attorney’s fees as deemed reasonable by a court or arbiter of competent jurisdiction.

J. Recordation of Termination. Upon expiration or termination of this Agreement, a written statement acknowledging such expiration or termination shall be recorded by City in the Official Records of San Mateo County, California.

K. Counterparts; Entire Agreement. This Agreement may be executed in counterparts, each of which will be deemed to be an original, but all of which, taken together, will constitute one and the same agreement. This Agreement constitutes the final and exclusive understanding and agreement of the Parties and supersedes all negotiations or previous agreements of the Parties with respect to all or any part of the subject matter hereof.

L. Incorporation of Recitals and Exhibits. Each of the following exhibits attached hereto, as well as the recitals set forth above, are incorporated herein by this reference and made a part hereof for all purposes:

Exhibit A Property Description
Exhibit B Timing of Supplemental Transportation Fee Payment Contributions

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22 Exhibit C Site Plan for Public Benefit Facilities
Exhibit D Pedestrian and Bike Improvements
Exhibit E Potential Off-site Locations for Use of Transportation Contributions 0 Impact Fees
0 Form of Assumption Agreement
ARTICLE 11

ASSIGNMENT AND TRANSFER
A. Assignment and Transfer. At any time during the Term, Developer and its successors-in- interest shall have the right to sell, assign or transfer all or a portion of its rights, title and interests in the Property and/or this Agreement (a “Transfer”) to any person or entity (a “Transferee”). The Parties acknowledge that transfer of any portion of the Property that is less than the entire Property would require subdivision approval by the City, and such portion so transferred constitutes a “Transferred Parcel.” Except in regard to Transfers to Pre-Approved Transferees (which does not require any consent by the City as provided in Section B below), prior to consummating any Transfer, Developer shall obtain from the City Manager written consent to the Transfer, which consent shall not be unreasonably withheld, delayed or conditioned. The City Manager shall respond in writing to Developer’s written request for any such written consent within ten (10) business days after the City’s receipt thereof in accordance with Article 12 below. Developer’s written request shall provide reasonably sufficient detail and any non- confidential, non-proprietary supporting evidence necessary for the City Manager to consider and respond to Developer’s request. Any failure by the City Manager to respond within the ten- (10) business day period, as well as any decision by the City Manager to withhold, delay or condition consent to any Transfer, shall be promptly reviewed by the City Council in accordance with the appeal provisions set forth in San Mateo Municipal Code section 27.08.090.

B. Pre-Approved Transferees. Notwithstanding anything in this Agreement to the contrary, the following Transferees constitute “Pre-Approved Transferees,” for which no City consent shall be required:

1. An entity owned or controlled by Developer or Brian Myers.

2. Any Transferee that certifies that either: (a) The Transferee or its affiliates (i) have the financial resources necessary to develop or complete development of the Transferred Parcel, in accordance with the terms and conditions of this Agreement and the Conditions of Approval, (ii) have experience and expertise in developing projects similar in size and scope to that portion of the Project planned to occur at the Transferred Parcel, and (iii) are not involved in litigation with the City relating to any other development project; or (b) it is acquiring the Transferred Parcel for the purpose of occupying a majority of the rentable area thereof upon completion for its own use or the use of its affiliates;

3. A Mortgagee or any designee of a Mortgagee; and

4. Any financial institution or other lender from which any Developer has borrowed funds for use in constructing the improvements contemplated in this Agreement or otherwise developing the Property.

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23 C. Assumption and Release. Without the requirement of any public hearing, Developer or its successors-in-interest may free themselves from their obligations relating to the Property or to a Transferred Parcel, provided that the Transferee expressly assumes such obligations and agrees to be bound by the other terms and conditions respecting the Property or such Transferred Parcel under this Agreement, by way of an assignment and assumption agreement (an “Assumption Agreement”), materially in the form of 0G attached hereto (or such other written agreement reasonably acceptable to the City), executed by and between the City, Developer and such Transferee. Developer and City acknowledge and agree that the rights and obligations under this Agreement may be assigned and assumed by Transferees that either: (i) acquire fee title to the Property or Transferred Parcels (“Fee-Assignee”), or (ii) enter into a ground lease or similar instrument with Developer with respect to the Property or Transferred Parcels (“Lessee-Assignee”). With respect to a Transfer of a Transferred Parcel, to the extent that Developer’s obligations under this Agreement are not clearly allocated or attributed to such Transferred Parcel, such allocation or attribution shall be made in the Assumption Agreement. City agrees to assist the assignor and assignee (including attendance at meetings), at assignor's expense, in determining how each obligation and right set forth in this Agreement and the other Project Approvals can be described and allocated in the assignment and assumption agreement so as to avoid confusion later regarding what obligations and rights have and have not been assigned. Upon delivery by Developer to City of any proposed Assumption Agreement, City staff shall review the Assumption Agreement and determine, within thirty (30) business days, whether the rights and obligations have been properly allocated between the assignor and assignee. Upon City staff’s determination that the rights and obligations have been properly allocated, the City shall consider the Assumption Agreement on the next available consent calendar. Within seven (7) days after approval by the City Council of any Assumption Agreement, City Manager or its designee shall execute and return such Assumption Agreement to Developer. Upon the full execution of an Assumption Agreement with a Fee-Assignee, such Fee-Assignee shall thenceforth be deemed to be the “Developer” hereunder with respect to the Property or the Transferred Parcel; and upon execution, (i) any default by such Fee Assignee of any rights, duties, obligations or interests so assigned and assumed by the Transferee shall not thereby constitute a default or breach by the assignor with respect to the rights, duties, obligations or interests not assigned and (ii) any default by the assignor of any rights, duties, obligations or interests not so assigned shall not thereby constitute a default or breach by the Fee Assignee with respect to the rights, duties, obligations or interests so assigned and assumed. Upon the full execution of an Assumption Agreement with a Lessee-Assignee, such Lessee-Assignee shall thenceforth be deemed to be the “Developer” hereunder with respect to the Property or the Transferred Parcel, provided, however, that any default by such Lessee-Assignee of any material obligation assigned under the Assumption Agreement shall remain an obligation of the assignor, as guarantor, and subject to the assignor’s reasonable opportunity to cure. Under no circumstance shall a default of a Lessee-Assignee constitute a default or breach by assignor with respect to the rights, duties, obligations or interests not assigned under the Assumption Agreement. The Assumption Agreement shall be recorded on the portion of the Property to which the assignment applies.

D. Successive Assignment. In the event there is more than one Assignment under the provisions of this Article 11 the provisions of this Article 11 shall apply to each successive Assignment and Assignee.

ARTICLE 12

NOTICES
Any notice or communication hereunder must be in writing and may be given either by personal service or by registered or certified mail, postage prepaid. Any notice or communication personally served shall

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24 be deemed given and received on the date of personal service (evidenced by signed receipt) on the party noticed at the appropriate address designated below, and any notice or communication sent by registered or certified mail, return receipt requested, properly addressed to the appropriate address designated below, with postage prepaid, shall be deemed given and received on the date of receipt, as evidenced by the return receipt card. Any party hereto may at any time and from time to time, in the manner provided herein, designate any other address in substitution of the address to which such notice or communication shall be given. All such notices or communications shall be given to the Parties to their addresses hereinafter set forth:

IF TO CITY:

City Clerk, City of San Mateo
City Hall
330 West 20th Avenue
San Mateo, CA 94403
ATTN: Director of Community Development
WITH A COPY TO:

City Attorney
330 West 20th Avenue
San Mateo, CA 94403
ATTN: City Attorney
IF TO DEVELOPER:

Concar Development Partners, LLC
c/o California Coastal Properties, LLC
4 Embarcadero, Suite 1400
San Francisco, CA 94111
ATTN: Brian J. Myers

WITH A COPY TO:

Holland & Knight, LLP
50 California Street, Suite 2800
San Francisco, CA 94111
ATTN: Chelsea Maclean

[SIGNATURE PAGE FOLLOWS]

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25 IN WITNESS WHEREOF, this Agreement was executed by the Parties thereto on the dates set forth below:
[SIGNATURES MUST BE NOTARIZED FOR RECORDED DOCUMENT]

CITY OF SAN MATEO:

DEVELOPER:

Drew Corbett Name:

Title: City Manager

City of San Mateo

Name:

Title:

Concar Development Partners, LLC
a Delaware limited liability company,
By: California Coastal Properties, LLC
Its Developer-Member

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EXHIBIT A

PROPERTY DESCRIPTION
[FINAL LEGAL DESCRIPTIONS TO BE INSERTED PRIOR TO EXECUTION]

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EXHIBIT B

TIMING OF SUPPLEMENTAL TRANSPORTATION FEE PAYMENT CONTRIBUTIONS Phase Amount1 Timing
Improvement Planning2 $750,000 At recordation of first Final Map.

Phase 1 (first 458 units) $3,250,000 Issuance of first Building Permit or functional equivalent (e.g., grading permit)
for Phase 1
Phase 2 (next 229 units) 1,600,000 Issuance of first Building Permit or functional equivalent (e.g., grading permit)
for Phase 2
Phase 3 (final 274 units) 1,900,000 Issuance of first Building Permit or functional equivalent (e.g., grading permit)
for Phase 3

1 The amounts reflected herein are based on construction costs as of the Effective Date, and shall be subject to annual adjustments consistent with the Engineering News-Record (ENR) Construction Cost Index for the San Francisco Bay Area. 2 City may use Improvement Planning funds to fund improvements in City’s discretion (e.g., design soft costs or improvements costs). Further, in the event that the City secures separate funding for design soft costs in advance of the Developer’s first payment, the City may later use the Developer’s first payment to reimburse the City’s earlier expenditure for design soft costs.

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EXHIBIT C

SITE PLAN FOR PUBLIC BENEFIT FACILITIES

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EXHIBIT D

PEDESTRIAN AND BIKE IMPROVEMENTS

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EXHIBIT E

POTENTIAL OFF-SITE LOCATIONS FOR USE OF

TRANSPORTATION CONTRIBUTIONS

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1 EXHIBIT F

IMPACT FEES

1. WWTP Phase II Expansion Fee. Developer shall pay fee in effect at time when due as provided in the Project Approvals.

2. Transportation Impact Fees. Developer shall pay fee in effect at time when due as provided in the Project Approvals; notwithstanding the foregoing, Developer shall receive a credit for the Supplemental Transportation Fee Payment made pursuant to this Agreement as identified in Article

3.A.1.h in the event that the (i) City increases the Transportation impact fees in an amount more than the annual increase in accordance with the Engineering News-Record (ENR) Construction Cost Index for the San Francisco Bay Area and (ii) the increase in the City’s Transportation Impact Fee funds improvements already funded by the Supplement Transportation Fee payment.

3. South Trunk Area Sewer Improvement Fee. Developer shall pay fee in effect at time when due as provided in the Project Approvals.

4. Central Parking Improvement District Per Space In-Lieu Fee. This fee is not applicable to the Project.

5. Art in Public Place Fee. Developer shall provide on-site in lieu improvements based on the fee in effect at time when due as provided in the Project Approvals.

6. Park and Landscape Resources. Developer shall pay fee in effect at time when due as provided in the Project Approvals. Developer may also request a park fee credit pursuant to San Mateo Municipal Code 26.64.030 [Private Park and Recreational Facility Space Credit].

7. Child Care Development Fee. The Parties agree that the estimated construction costs of the on-site child care facility as described in the Planning Application are approximately Four Million Dollars ($4,000,000). Therefore, in exchange for provision of an on-site child care facility as described in the Planning Application for the life of the Project, Developer will receive a full credit against the applicable child care development impact fee.

8. Commercial Linkage Fee. Developer shall pay fee, if any is due, in effect at time when due as provided in the Project Approvals.

9. Below Market Rate Fee. Based on the provision of affordable housing fees, the Developer shall not be subject to a Below Market Rate Fee. Further, it is acknowledged that at the time the City Council adopted Resolution No. 14 on February 3, 2020, the Resolution provided that “a development that has submitted a Planning Application or a Planning Pre-application will be exempt from these requirements unless the project changes significantly in the future, which is defined as an increase in number of units or square footage of 20% or more.” As the Developer had already submitted a Planning Application on September 18, 2018, the Project is therefore subject to the prior requirement that a developer of rental projects must provide 10% of the units affordable to Very Low-Income households or 15% affordable to Low-Income households, and for ownership projects provide 10% of the units to Low-Income households or 15% affordable to Moderate Income households.

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2 EXHIBIT G

FORM OF ASSUMPTION AGREEMENT

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

City of San Mateo
330 West 20th Avenue
San Mateo, CA 94403
Attention: City Manager
Space Above This Line Reserved for Recorder’s Use
Exempt from Recording Fee Per Government Code Section 27383

ASSIGNMENT AND ASSUMPTION AGREEMENT
This Assignment and Assumption Agreement (this “Assignment”) is entered into as of ____________, by and between CALIFORNIA COASTAL PROPERTIES, LLC, a Delaware limited liability company (“Developer”), _______________, a ____________ (“Assignee”) and the CITY OF SAN MATEO, a political subdivision of the State of California (“City”).

RECITALS
A. City and Developer entered into that certain Development Agreement dated as of _____________, 2020, and recorded on ____________ as Instrument No. ___________ in the Official Records of San Mateo County (the “Development Agreement”) with respect to the development of the “Project” (as defined in the Development Agreement) on certain real property located in the City, as more particularly described in Exhibit A attached hereto (the “Property”).

B. Pursuant to, and subject to the terms and conditions set forth in, that certain [Purchase and Sale Agreement or Ground Lease] dated as of _________________ by and between Developer and Assignee (the “Purchase Agreement”) [or (the “Ground Lease”)], Developer shall (i) convey a legal and equitable property interest in [IN THE CASE OF THE ENTIRE PROPERTY -- the Property] [IN THE CASE OF A PORTION OF THE PROPERTY -- that portion of the Property described in Exhibit B attached hereto (the “Transferred Parcel”)] to Assignee and (ii) assign and transfer certain of its rights and obligations as “Developer” under the Development Agreement and the other Project entitlements, approvals, and conditions of approval described therein (together with the Development Agreement, the “Project Approvals”) to Assignee to the extent described in the Purchase Agreement.

C. Pursuant to this Assignment, Developer intends to assign and transfer, and Assignee intends to assume, such rights and obligations of Developer to the extent described herein.

D. Pursuant to Article 11 of the Development Agreement, City has the right to reasonably consent to certain assignments and transfers of Developer’s rights and obligations under the Development Agreement.

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3 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and the foregoing recitals, which are incorporated herein by reference and made a part of this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:
[1. ADD IF CITY CONSENT TO TRANSFER IS REQUIRED UNDER DA — City Consent to Transfer. Subject to Assignee acquiring fee title to, or entering into a ground lease or similar instrument with respect to, the {Property} {Transferred Parcel} pursuant to the [Purchase Agreement or Ground Lease], City hereby consents to Developer assigning and transferring the Transferred Rights and Obligations (as defined in Section 2 below) to Assignee.] [1. ADD IF CITY CONSENT TO TRANSFER IS NOT REQUIRED UNDER DA (USE FOR PRE-APPROVED TRANSFEREES) — City Acknowledgment of Pre-Approved Transferee. Subject to Assignee acquiring fee title to, or entering into a ground lease or similar instrument with respect to, the {Property} {Transferred Parcel} pursuant to the [Purchase Agreement or Ground Lease], City hereby acknowledges that Developer’s assignment and transfer of the Transferred Rights and Obligations (as defined in Section 2 below) to Assignee constitutes a Transfer to a Pre-Approved Transferee (as those terms are defined in the Development Agreement) for which no City consent is required under the Development Agreement.]

2. Assignment and Assumption. Subject to Assignee acquiring fee title to, or entering into a ground lease or similar instrument with respect to, the [Property] [Transferred Parcel] pursuant to the [Purchase Agreement or Ground Lease], (i) Developer hereby assigns its rights and obligations under the Development Agreement to Assignee pertaining to the [Property] [Transferred Parcel], as more fully described in Exhibit C attached hereto (the “Transferred Rights and Obligations”), and (ii) Assignee hereby assumes the Transferred Rights and Obligations and agrees to be bound by the terms and conditions of the Development Agreement with respect to the [Property] [Transferred Parcel].

3. Release. City and Assignee each acknowledge and agree that subject to Assignee acquiring fee title to the [Property] [Transferred Parcel] pursuant to the [Purchase Agreement], Developer is hereby released from and is no longer obligated to perform or fulfill the Transferred Rights and Obligations.

4. Effectiveness; Recording. Each party hereto acknowledges and agrees that (i) Developer’s assignment and transfer, (ii) Assignee’s assumption and release, and (iii) City’s [consent and] release, each as contemplated by this Assignment, are contingent upon Assignee acquiring fee title to, or entering into a ground lease or similar instrument with respect to, the [Property] [Transferred Parcel] pursuant to the [Purchase Agreement or Ground Lease], and that if such conveyance does not occur, this Assignment shall not be recorded and shall be of no further force or effect. Concurrently with the close of escrow for such acquisition or at any time thereafter, any of the parties hereto shall have the right to instruct [INSERT ESCROW HOLDER’S NAME AND ADDRESS] (“Escrow Holder”), the escrow holder under the Purchase Agreement, to record this Assignment in the Official Records of San Mateo County. If so delivered, Escrow Holder shall record this Assignment.

5. Estoppel. City hereby confirms that, to its actual knowledge, (i) the Development Agreement is in full force and effect and a binding obligation of the parties thereto, (ii) the Development Agreement has not been amended or modified either orally or in writing, and (iii) Developer is not in default in the performance of its obligations under the Development Agreement.

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4 6. Covenants Running with the Land. The provisions of this Assignment shall constitute covenants which shall run with the land comprising the [Property] [Transferred Parcel], and the burdens and benefits hereof shall extend to, bind and inure to the benefit of each party hereto and to all successors- in-interests and assigns to the parties hereto.

7. Severability. If any term, provision, covenant or condition of this Assignment is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining terms, provisions, covenants and conditions of this Assignment shall continue in full force and effect.

8. Amendments. No amendment, supplement or other modification to this Assignment shall be effective or enforceable against the parties hereto unless such amendment, supplement or other modification is in writing and executed by all of the parties hereto.

9. Applicable Law and Venue. This Assignment shall be construed and enforced in accordance with the laws of the State of California. In the event of litigation, venue will be in the County of San Mateo.

10. Counterparts; Headings; Defined Terms. This Assignment may be executed in counterparts, each of which shall be an original, but all of which together shall constitute one Assignment.

The headings to sections of this Assignment are for reference only and shall not be used in interpreting this Assignment. Unless otherwise defined herein, all capitalized terms in this Assignment shall have the meanings assigned to them in the Development Agreement.

11. Waiver. No waiver by any of the parties hereto of any of the terms or conditions of this Assignment or any of their rights under this Assignment shall be effective unless such waiver is in writing and signed by the waiving party.

12. Further Assurances. Each party hereto agrees, upon the reasonable request of another party hereto, to perform any further acts and to execute and deliver such further documents which may be reasonably necessary to carry out the terms of this Assignment.

List of Exhibits:

Exhibit A Legal Description of the Property
[Exhibit B Legal Description of the Transferred Property] Exhibit C Transferred Rights and Obligations

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IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first above written,
DEVELOPER:

California Coastal Properties, LLC,
a Delaware limited liability company
By:

Name:

Title:

ASSIGNEE:

By:

Name:

Title:

CITY:

CITY OF SAN MATEO, a political subdivision of
the State of California
By:

Name:

Title:

APPROVED AS TO FORM:

Shawn Mason Prasanna Rasiah, City Attorney
ATTEST:

City Clerk

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CONSENT, JOINDER AND SUBORDINATION OF LENDER
The undersigned, ____________________, a California chartered bank (“Lender”), is the owner and holder of that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement dated ____________, 20___, which is recorded in the Recorder’s Office of the County of _____________, California, as Instrument No. ____-_______ (the “Deed of Trust”).

Lender, as the owner and holder of the Deed of Trust, hereby joins in, consents to, and subordinates the Deed of Trust to the Development Agreement by and between The City of San Mateo and California Coastal Properties, LLC, relative to the development known as the Concar Passages Mixed-Use Project (the “Development Agreement”) to which this Consent, Joinder and Subordination of Lender is attached.

Lender agrees that all of its right, title, interest and estate in and to the real property and any improvements thereon described in the Deed of Trust shall be and is hereby bound by, subject to and subordinate to all of the terms and provisions of the Development Agreement, and the Development Agreement (and all of the terms and provisions thereof) shall fully survive any foreclosure, deed in lieu of foreclosure and/or any exercise by Lender of any right or remedy under or pursuant to the Deed of Trust.

LENDER:
,
a chartered bank

Name, Title
[SIGNATURES MUST BE NOTARIZED FOR RECORDED DOCUMENT]

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July 26, 2022

Brian Myers
4 Embarcadero, Suite 1400
San Francisco, CA 94111
Via Email: [email protected]

Subject: PA-2022-042, Concar Passage Vesting Tentative Map Extension 640, 666, 690 Concar Drive; 1820, 1880 S. Grant St.; 1855 S. Delaware St.

APNs 035-242-090, -140, -160, -170, -190, -200, -210, -220

Dear Brian:

This letter is a follow up to your Planning Application submittal of June 2, 2022, as referenced above.

Enclosed is a copy of the Zoning Administrator's decision to approve the application as well as a copy of the Planning Commission approved Conditions of Approval for Planning Application PA-2018-052. The expiration of the Vesting Tentative Map and associated approvals in Planning Application PA-2018-052 are extended to August 17, 2023 unless appealed within ten (10) calendar days of the date of this approval. You will be contacted if an appeal is filed.

If the approval expires, a new Planning Application must be resubmitted subject to all codes and policies in effect at the time of the new submittal. Please also note that the time within which judicial review may be sought is governed by Code of Civil Procedure Section 1094.6. In addition, the time within which the imposition of fees, dedications, reservations, or other exactions may be challenged is governed by Government Code Section 66020. Please contact me at (650) 522-7211 or via email at [email protected] for any questions.

Sincerely,

Rendell Bustos, Senior Planner

Enclosure: Decision of the Zoning Administrator and Conditions of Approval (PA-2018-052)

Cc: Project Planner (Email Distribution)
Development Review Board Members (Email Distribution)
Planning Manager (Email Distribution)
Zoning Administrator (Email Distribution)
City Clerk (Email Distribution)
Bcc: Planning Commission (Email Distribution)

CITY OF SAN MATEO

COMMUNITY DEVELOPMENT DEPARTMENT

330 W. 20th Avenue
San Mateo, CA 94403
www.cityofsanmateo.org
(650) 522-7000

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DECISION OF THE ZONING ADMINISTRATOR

PA#: PA-2022-042

PA NAME: Concar Passage Vesting Tentative Map Extension

ZONING CLASSIFICATION: TOD

ADDRESS/APN: 640, 666, 690 Concar Drive; 1820, 1880 S. Grant St.; 1855 S. Delaware St.

APNs 035-242-090, -140, -160, -170, -190, -200, -210, -220

PROJECT DESCRIPTION: Extension of one year of a previously approved Vesting Tentative Map and all other associated Planning Application approvals for Planning Application PA-2018-052 for Concar Passage Mixed Use Project in accordance with Government Code Section 66452.6(e) and San Mateo Municipal Code Sections 26.48.135(b) and 27.08.085(d). No changes to the Vesting Tentative Map or to the approved project are proposed.

PLANNING APPLICATION APPROVALS:

X VESTING TENTATIVE MAP EXTENSION

PROJECT PLANNER: Rendell Bustos

APPROVAL DATE: 07/26/2022

CITY OF SAN MATEO

COMMUNITY DEVELOPMENT DEPARTMENT

330 W. 20th Avenue
San Mateo, CA 94403
www.cityofsanmateo.org
(650) 522-7000

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FINDINGS FOR APPROVAL:

I. CEQA CLEARANCE

A Final Supplemental Environmental Impact Report for the subject project (PA-2018-052, Concar Passage Mixed Use Project) was certified by the City Council on August 17, 2020.

II. PLANNING APPROVAL EXTENSION (Municipal Code §27.08.087)

The Vesting Tentative Map and all other associated Planning Application approvals for Planning Application PA-2018-052 are extended to August 17, 2023 based on the finding that the project complies with all applicable zoning, planning, and General Plan regulations and conditions. The original findings and conditions of approval remain applicable to this extension.

ZONING ADMINISTRATOR DECISION:

X APPROVED CEQA CLEARANCE: Final Supplemental
Environmental Impact Report certified by the
City Council on August 17, 2020.

CONDITIONS OF APPROVAL : See Attached – Conditions of Approval as adopted on August 17, 2020 in Planning Application PA-2018-052.

SIGNATURE Julia Klein
Julia Klein, Deputy Zoning Administrator

DATE: 07/26/2022 *

* This decision is final unless appealed in writing within ten (1 0) calendar days of the above date.

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CITY OF SAN MATEO
RESOLUTION NO. 94 (2020)

APPROVING THE SITE PLAN AND ARCHITECTURAL REVIEW (SPAR), SITE DEVELOPMENT PLANNING APPLICATION (SDPA), AND VESTING TENTATIVE MAP TO CONSTRUCT UP TO 961 RESIDENTIAL UNITS, 40,000

SQUARE FEET OF COMMERCIAL SPACE AND ASSOCIATED PARKING, LANDSCAPING ROADWAY

IMPROVEMENTS AND COMMON AREAS, AND ADOPT THE ENVIRONMENTAL IMPACT REPORT FOR THE RAIL

CORRIDOR PLAN AS REVISED BY THE SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT WHEREAS, California Coastal Properties has requested construction of up to 961 residential units, 40,000 square feet of commercial space and associate parking, landscaping, roadway improvements and common areas (the "Project");
WHEREAS, San Mateo City Charter and Municipal Code Section 27.06.050 requires final action from the City Council for projects which includes a Development Agreement and which are subject to Planning Commission review under 27.06.040;
WHEREAS, the Planning Commission considered the application on July 28, 2020, and recommended adoption of the Supplemental Environmental Impact Report for the Project (PA-2018-052) and Environmental Impact Report for the Rail Corridor Plan as adequate to analyze the environmental impacts of the project; and WHEREAS, the Planning Commission recommended approval of the construction of 961 residential units, 40,000 square feet of commercial space associate parking, landscaping, roadway improvements and common areas, subject to the Findings for Approval and Conditions of Approval; and WHEREAS, the City Council held a public hearing on August 17, 2020, duly noticed, at which all public comments were considered;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY FINDS AND RESOLVES that:

1. In accordance with CEQA Guidelines Section 15163, a Supplemental Environmental Impact Report has been prepared in accordance with the California Environmental Quality Act, because only minor additions or changes were necessary to make the previous Environmental Impact Report prepared for the Rail Corridor Plan adequate to analyze the impacts of the proposed project.

2. The Planning Commission and City Council have reviewed and considered the information in the Supplemental Environmental Impact Report as well as the Environmental Impact Report prepared for the Rail Corridor Plan prior to recommending approval of the project.

3. The Supplemental Environmental Impact Report and Environmental Impact Report prepared for the Rail Corridor Plan reflect the City's independent judgment and analysis.

4. The Supplemental Environmental Impact Report and Environmental Impact Report prepared for the Rail Corridor Plan concluded that the project would not have any significant effects with the incorporation of the mitigated measures which have been included in the project's Conditions of Approval.

5. The City Council finds on the basis of the whole record before it that there is no substantial evidence that the project will have a significant on the environment and the Supplemental Environmental Impact Report and Environmental Impact Report prepared for the Rail Corridor Plan reflect the lead agency's independent judgement and analysis.

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Patrice M. Olds, clity Clerk
Resolution No. 94 (2020)

Page 2 of 70 ends

San Mateo City CouncilJuly 17, 2023

San Mateo City Council
July 17, 2023