The City of San Mateo is requesting that the San Mateo Foster City School District (SMFCSD) enter into a Compensation Agreement (Attachment 1) with the City regarding the disposition of the two former Redevelopment Agency properties in Downtown San Mateo at 480 E. 4th Avenue and 400 E. 5th Avenue. SMFCSD is one of 10 taxing entities that received a share of the property tax revenue from the former Redevelopment Agency of the City of San Mateo.

Background:

In 2012, the State of California enacted legislation requiring dissolution of approximately 400 Redevelopment Agencies (AB 26, AB1484). Pursuant to the Dissolution Law and the Health and Safety Code Section 34173, the Redevelopment Agency of the City of San Mateo (RDA) was dissolved. The City was elected to serve as the successor agency, responsible for paying the enforceable obligations, disposing of the properties and other assets, and unwinding the affairs of the Former RDA. Accordingly, ownership of the Former RDA's Properties transferred to the City for disposition.

As required by the Dissolution Law, the City prepared a Long Range Property Management Plan (LRPMP) to outline the terms of the disposition of the properties. The plan was approved by the Oversight Board and the California Department of Finance (DOF) in 2014. Under the LRPMP, before disposition of the properties for future development, the City must enter into a Compensation Agreement with the affected taxing entities and provide for any net proceeds of sale to be distributed as property taxes. The LRPMP also provides that the purchase price for the properties will be not less than their fair reuse value, considering the covenants, conditions, and development costs for the properties.

The Properties: 480 East 4^th Ave and 400 East 5^th Ave

The proposed project—a public-private partnership between the Developer and the City—includes developing 225 units of multi-family rental housing for low income households on 480 East 4th Avenue and a parking garage on 400 East 5th Avenue containing roughly 696 parking spaces, including 164 spaces for exclusive use of the housing development, 235 replacement public parking spaces, and up to 297 additional public parking spaces for Downtown San Mateo. The public parking garage will be operated by the City. Through a competitive bidding process, the City selected MidPen Housing Corporation—a local non-profit affordable housing developer—to develop the properties.

The residential development will provide much needed affordable housing for San Mateo County in the transit and amenity-rich environment of Downtown San Mateo. The housing will serve a range of affordable income levels with the maximum allowed income being for households earning up to 80% of Area Median Income. Additionally, 25% of the housing units will have a preference for public employees, including employees from all the taxing entities.

The City and the Developer entered into a Disposition, Development, and Loan Agreement (DDLA) to govern the development of the project. Under the terms of the DDLA, the City will ground lease 480 East 4th Avenue to the Developer for one dollar per year for a term of 99-years for the construction of the low income housing, will retain ownership of 400 East 5th Avenue, and will enter into an appurtenant easement dedicating no less than 164 spaces in the parking garage constructed on 400 East 5th Avenue, for the term of the ground lease, to the Developer for use by the housing development. Disposition of the properties will become effective once the Developer obtains building permits and closes escrow on construction financing. Additionally, the Developer's construction and operation of the development is not financially feasible without the City's financial assistance.  The City will have to contribute $12.5 million in direct financial assistance to the project and to waive its internal development review and plan check fees, which total roughly $1.8 million.

Reuse Appraisal of the Properties:

In June 2020 the City commissioned a reuse appraisal of the Properties (Attachment 2) to estimate their fair reuse value. The appraisal concluded that the reuse value of the properties is zero and that without the City’s financial contribution to the project, the project would have a significant funding gap and a negative reuse value.  Given this, there will be no net disposition proceeds from the disposition of the properties to distribute among the taxing entities.  If there had been proceeds to distribute, it would have been done based on the percentage share of the property tax from the former Redevelopment Area that each entity receives. SMFCSD’s share is 21.08%.

On August 17, 2020, the City Council approved the entitlement application and the DDLA. The City then sent out a letter requesting that the taxing entities approve the Compensation Agreement (Attachment 3). The Compensation Agreement has been reviewed and approved by the following taxing entities to date:  San Mateo County Office of Education, San Mateo County Mosquito and Vector Control District, Peninsula Health Care District, San Mateo County Harbor District, and the Bay Area Air Quality Management District.  The remaining taxing entities are still reviewing the agreement. If the Taxing Entities do not agree to the terms of the compensation agreement, the City will be in default of our obligations and the project will not be able to move forward.

As per Education Code Section 35120(c), “A member may be paid for any meeting when absent if the Board by Resolution duly adopted and included in its minutes finds that at the time of the meeting he or she is performing services outside the meeting for the school district or districts, he or she was ill or on jury duty, or the absence was due to a hardship deemed acceptable by the Board.

Trustee Noelia Corzo was absent from the November 19, 2020 Board meeting due to illness and has requested to receive the full monthly stipend.  

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES ADOPT RESOLUTION NO. 17/20-21 - COMPENSATION OF BOARD MEMBER FOR ABSENCE DUE TO ILLNESS.  

On July 16, 2020, the Board of Trustees approved the contract for GY Engineering Inc. for the  Multipurpose Building Heating System Project at Bayside Academy, per the bid on June11, 2020, in the amount of $267,800.00.

The District, in working with GY Engineering Inc. encountered a need for changes with the items listed in the attached change order.

The cost of Change Order No. 1 is $2,921.06, which is .11% of the original contract. The new contract amount for GY Engineering inc. is $270.721.06, which is funded by Routine Restrictive Maintenance.

On August 22, 2019, the Board of Trustees approved the contract for Beals Martin, Inc., as one of Measure X Projects for the Borel Middle School New Gym and Classrooms Increment #3 Project in the amount of $10,237,159.

The District, in working with Beals Martin, Inc., encountered unforeseen conditions, District and Architect's requests, necessary field changes, and corrections.

The cost of this Change Order, No. 3 is in the amount of $67,576 which is 1.9% of the original contract amount. To date, the cost of Change Orders 1-3 is $312,769, which is 3.06% of the original contract amount. 

The new contract amount for Beals Martin, Inc. is for $10,549,928.00, which is within the Measure X Original Budget. 

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES APPROVE CHANGE ORDER NO. 3 FOR BEALS MARTIN, INC. REGARDING THE BOREL MIDDLE SCHOOL NEW GYM AND CLASSROOMS INCREMENT 3 PROJECT.

$67,576 - Measure X Funds

On April 20, 2017, the Board of Trustees approved the contract for Crusader Fence,
as one of Measure L Projects for the Districtwide Security Fencing at San Mateo Park
Elementary School and Borel Middle School for $271,000.

The District, in working with American Asphalt encountered unforeseen conditions such as District and Architect's requests, necessary field changes, allowances, and corrections.

The cost of Change Order No. 1 to the original contract is ($32,690) (12.06%) of the
original contract, funded by Measure L.  The complete breakdown of Change Order #1,
with all the related costs, is included in the attachments.   

On, June 6, 2019, the Board of Trustees approved Resolution No. 38/18-19 designating SMFCSD as the Super USDA Food Cooperative Lead Agency. The District’s Child Nutrition Services is a member of the Super Co-Op, a USDA Foods cooperative for school districts in California. The Super Co-Op works with a Governing Council, which Andrew Soliz, Director of Child Nutrition, has served as the regional representative, and for school year 2020-21 as Lead Agency representative. One district member of the Super Co-Op serves as the Lead Agency for the cooperative to work with and oversee the cooperative’s contracted administrative agent and coordinates the ordering of USDA Foods based on member district requests. The Governing Council reselected San Mateo-Foster City School District to serve as the Lead Agency for the 2021-22 school year, and Mr. Soliz will continue to serve as the Lead Agency representative for the District.

For serving as the Lead Agency, the District Child Nutrition Services fund will receive $40,000 from the Super Co-Op membership funds. The District recommends approval of Resolution No. 13/20-21 redesignating San Mateo-Foster City School District as the Super USDA Foods Cooperative Lead Agency with Andrew Soliz serving as the District’s representative.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES APPROVE RESOLUTION NO. 13/20-21 REDESIGNATING THE DISTRICT AS THE LEAD AGENCY FOR THE SUPER USDA FOODS COOPERATIVE FOR THE 2021-22 SCHOOL YEAR.

Every year, the District participates in the E-Rate program which provides discounts on Internet and Network Services specifically for schools and libraries.  Administered by Universal Service and Administrative Company (USAC) with Oversight by the Federal Communication Commission (FCC), the district receives a discount of approximately 50% on the cost of services.  E-Rate Program calculates discounts based on the percentage of students eligible for free and reduced lunches under the National School Lunch Program (NSLP).

The 2020-2021 Fiscal year contract includes the following services:

• RFP for Internet Service Provider Services
• RFP for Data Services
• RFP of Wide Area Network Connections

Financial Impact will be known when proposals to the RFP’s come in.

As the Board of Trustees is aware from the informational reports provided during Board meetings about the planning underway to implement the Facilities Master Plan (FMP) for the New Decade projects funded by Measure T and other smaller sources of funding that may become available, the administration began the process to establish an Architect Pool. 

A Pool is a list of architects who are pre-qualified through a process which can be drawn from for the many different projects included in the FMP Immediate Priorities.  The District’s process for determining the Architect Pool included:

• A request for Statements of Qualifications advertised
• Individual scoring using a common rubric of Statements of Qualification by the CBO, Director of Facilities, three Construction Project Managers and the Advisor to the Superintendent for Facilities Projects
• Ranking of individual scores for each architectural firm to establish a group ranking of proposals from 1 to 25
• A discussion of the proposals

Twenty-five Statements of Qualifications were received and reviewed from architectural firms with offices within a 50 mile radius who had substantial experience in school projects (both requirements).  It was determined that all submittals of Statements of Qualifications (each was approximately 35 pages in length) were complete and met the District’s rubric.  Therefore, all architectural firms that submitted timely proposals are included in the recommended Architect Pool for projects going forward that will need arcitectural services, regardless of funding source. 

Depending on the nature of the specific project, the District may select one firm from the Architect Pool which the District staff feels is the best fit for that project or may elect to invite architectural firms in the Pool who meet specific qualifications to make an additional proposal for a specific project.  An example of a specific qualification might be completion of a specific number of school projects over $35 million within a specified recent timeframe.

The FMP Immediate Priorities Planning document that was reviewed with the Board at its last Board meeting indicated the administration’s plan in January 2021 to invite proposals for the selection of architects from the Pool for the four new elementary Multipurpose Rooms and the Bowditch Build, Rebuild, and Renovate Project.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES APPROVE THE ARCHITECTURAL FIRMS LISTED ON THE ATTACHMENT FOR THE ARCHITECT POOL. 

Per Board Policy 3312, the Board may, by a majority vote, delegate to the Superintendent or designee the authority to enter into contracts on behalf of the District.  To be valid or to constitute an enforceable obligation against the District, all such contracts must be approved and/or ratified by the Board.  Contracts are available for review upon request in the Business Services department.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES APPROVE THE LIST OF CONTRACTS AND CONSULTANTS OF $45,000 and UNDER.

Board Policy 3314 states the following: It shall be the practice of the administration to present the Board of Trustees with copies of all warrant registers for information and review at each regularly scheduled meeting of the Board of Trustees. As Policies 3100 (budget) and 3110 (transfer of funds) provide criteria for Board authorization of all expenditures, both personnel and non-personnel items, prior to the actual payment of the obligation, warrants will be distributed to the vendors and employees after audit by the County Superintendent of Schools.

Education Code Sections 42631-36 requires the Board of Trustees approve all expenditures made by the District.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES APPROVE THE ATTACHED DISTRICT EXPENDITURES.

None – Expenditure provided for in the 2020-2021 budget.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES RECEIVE AND DISCUSS UPDATES REGARDING THE REOPENING WORK PLAN AND PROVIDE DIRECTION TO STAFF.

The Human Resources Department updates the Certificated Seniority list on an annual basis and distributes it to all District sites for review.  Certificated staff has reviewed the list for accuracy during the 5 day mandated review period.  Corrections have been made and this list reflects the up-to-date information.

IT IS RECOMMENDED THAT THE BOARD OF TRUSTEES RENEW THE EMPLOYMENT CONTRACT OF THE ASSISTANT SUPERINTENDENT OF HUMAN RESOURCES.