Finance Committee - October 18, 2011

PDF version of Agenda

AGENDA

FINANCE COMMITTEE

Meeting Notice

Date:                  11:00 a.m., Tuesday, October 18, 2011
Location:                Room 263, City Hall
Commissioners:     Commissioners Mar (Chair), Elsbernd (Vice Chair), Cohen, Farrell, Kim and Mirkarimi (Ex Officio)
Clerk:                      Erika Cheng

 

1.                   Roll Call

2.                  Approve the Minutes of the September 20, 2011 Meeting - ACTION* attachment

3.                  Recommend Authorizing the Executive Director to Execute a Memorandum of Agreement with the City and County of San Francisco, through the San Francisco Municipal Transportation Agency, San Francisco Planning Department, and San Francisco Department of the Environment, for a Three-Year Period, in an Amount Not to Exceed $434,746, for the San Francisco Integrated Travel Demand Management Public-Private Partnership Project, and Authorizing the Executive Director to Negotiate Terms and Conditions - ACTION* attachment

In October 2010, the Metropolitan Transportation Commission awarded a $750,000 Bay Area Climate Initiatives grant to the Authority for the San Francisco Integrated Travel Demand Management Public-Private Partnership Project (Partnership Project). The Authority appropriated Prop K and Transportation Fund for Clean Air local match funds in June 2011 and approved the award of consultant contracts for the project in July 2011.   The purpose of the Partnership Project is to create an innovative and mutually-reinforcing set of travel demand management policies at the community-level, and to undertake pilot projects in order to measurably reduce emissions of greenhouse gases and criteria pollutants.  As lead agency for the project, the Authority will coordinate and collaborate with the San Francisco Municipal Transportation Agency (SFMTA), the San Francisco Department of the Environment (DOE), and the San Francisco Planning Department (collectively as City Agencies).  The Authority and City Agencies wish to execute a Memorandum of Agreement (MOA) in order establish the overall project management approach and grant administration protocols including invoicing and reimbursement procedures.  We are seeking a recommendation to authorize the Executive Director to execute a MOA with the City and County of San Francisco, through the SFMTA, Planning Department, and the DOE, for a three-year period, in an amount not to exceed $434,746, for the Partnership Project, and to authorize the Executive Director to negotiate terms and conditions.

 

 

4.                  Recommend Seeking that the Treasure Island Development Authority (TIDA) Board and the San Francisco Board of Supervisors designate the Authority as the Treasure Island Mobility Management Agency (TIMMA) to Implement the Treasure Island Transportation Program, Authorizing the Executive Director to Execute a Memorandum of Agreement between the Authority and TIDA, and Authorizing the Executive Director to Negotiate Initial Operating Contracts and Develop TIMMA Formation Documents with TIDA for Consideration by the Authority Board by March 31, 2012 - ACTION* attachment

Assembly Bill No. 981, the Treasure Island Transportation Management Act, authorizes the Board of Supervisors (BOS) of the City and County of San Francisco to designate a board or agency to act as the transportation management agency (TMA) for Treasure Island. Following the approval of the Treasure Island/Yerba Buena Island Development Project (Project) in June 2011, the Treasure Island Development Authority (TIDA) and Authority, together with Treasure Island Community Development, LLC (TICD), the private development partner for the Project, have explored the possibility of the Authority being designated as the TMA for Treasure Island. Based on an initial assessment by the group of substantial benefits of such a partnership, the Authority has worked jointly with TIDA to prepare a Memorandum of Agreement (MOA) regarding the potential designation of the Authority as the Treasure Island Mobility Management Agency (TIMMA), in fulfillment of the TMA role.  The MOA describes the intent of TIDA Board of Directors to recommend to BOS formal designation of the Authority as the TIMMA and of the Authority to accept the designation, and lays out the responsibilities of the parties for the implementation of a comprehensive and integrated transportation program to manage travel demand on the island as development occurs. We are seeking a recommendation to obtain through the TIDA Board and the BOS the designation of the Authority as the TIMMA to implement the Treasure Island Transportation Program, to authorize the Executive Director to execute a MOA between the Authority and TIDA, and to authorize the Executive Director to negotiate initial operating contracts and develop TIMMA Formation Documents with TIDA for consideration by the Authority Board by March 31, 2012.

5.                  Recommend Authorizing the Executive Director to Enter into Funding Agreements for Phase II of the Presidio Parkway Project with the California Department of Transportation and the Golden Gate Bridge, Highway and Transportation District and to Negotiate Agreement Terms and Conditions - ACTION* attachment

The Authority has been leading the effort in close cooperation with the California Department of Transportation (Caltrans) to replace the existing Doyle Drive structure.  Construction of the Presidio Parkway project to replace Doyle Drive is organized into two phases.  Phase I is being delivered under a traditional design-bid-build process and Phase II is being delivered as a public-private partnership (P3).  In November 2008, the Authority entered into a Memorandum of Understanding (MOU) with the Metropolitan Transportation Commission (MTC) and the Golden Gate Bridge, Highway and Transportation District that identified sources and amounts of funding for the Presidio Parkway.  In order to provide documentation to support financial close of Phase II of the project, funding agreements are required that more specifically identify when funds are to be provided and funds sources.  For instance, the Authority must enter into a cooperative agreement with Caltrans that codifies the commitments to secure funds as shown in Attachment 2, conditional upon the controlling agency taking necessary action to make the funds available.  The Authority's direct contribution to the project remains at $171,773,000 (Resolution 11-47, approved March 29, 2011).  We are seeking a recommendation authorizing the Executive Director to enter into funding agreements for the Presidio Parkway project with the California Department of Transportation and the Golden Gate Bridge, Highway and Transportation District and to negotiate agreement terms and conditions.

6.                  Recommend Accepting $750,000 from the Civic Center Commons Associate LLC to Waive the Lease Extension Option and to Terminate the Workspace Lease at 100 Van Ness Avenue; Executing a 13-Year Workspace Lease with Hudson 1455 Market, LLC for Offices Located at 1455 Market Street, with One Five-Year Extension Option, in an Annual Amount Not to Exceed $685,272, Plus Operating Expenses and Annual Rent Increases; and Authorizing the Executive Director to Negotiate the Terms and Conditions - ACTION* attachment

The Authority's offices have been at 100 Van Ness Avenue since October 1993. The Authority could stay in the building another five years by exercising a final option on the current lease. That option started in August 2011. However, the new owner of the building has residential development plans for 100 Van Ness Avenue and has offered the Authority a very sizeable lease termination incentive to vacate the building. If the Authority does not accept the lease termination incentive and vacate the building, the property managers will exercise their right to relocate the Authority to another floor in the building. In that case, the Authority would be responsible for an estimated $824,000 in tenant improvement costs, and there would be no option to renew the lease further, making it hard to reasonably amortize such a large investment in a leased space over only five years. This situation, coupled with a deterioration of conditions in the otherwise vacant building, the prospect of ongoing construction noise and other impacts, and the likelihood of significantly higher rents in the area five years from now, based on current trends, prompted us to proactively look at options for relocating our offices. After examining four comparable properties in the Civic Center area, we determined that the property at 1455 Market Street is the only available building to meet all four criteria.  The owners of that building have made an offer of $1.7 million that would result in zero costs for tenant improvements and nine months of free rent. This, combined with our current landlord's financial incentive, fully covers the cost of our move. There are additional ongoing costs resulting from the larger size of the space, but there is also flexibility to lease out any surplus space and to absorb reasonable growth in operating space needs over the life of the lease. We are seeking a recommendation for accepting $750,000 from Civic Center Commons Associates LLC to waive the lease extension option and to terminate the workspace lease at 100 Van Ness Avenue; for executing a 13-year workspace lease with Hudson 1455 Market, LLC for offices located at 1455 Market Street, with one five-year extension option, in an annual amount not to exceed $685,272, plus operating expenses and annual rent increases; and for authorizing the Executive Director to negotiate the terms and conditions.

7.                  State and Federal Legislative Update - INFORMATION* attachment

8.                  Introduction of New Items - INFORMATION

9.                  Public Comment

10.               Adjournment

 

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