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(a) Establishment and Purpose of the Fund. The Mission Bay Transportation Improvement Fund (the "Fund") is established as a category four fund, for the purpose of safeguarding monies in the General Fund to pay for: City services and capital improvements to address transportation and other needs of the community in connection with Warriors basketball games and other events (collectively, "Events") at the Golden State Warriors Event Center and Mixed Use Project (the "Event Center") on Blocks 29-32 in Mission Bay South (the "Project Site"), including, but not limited to, measures included in the City's transportation services plan for the Event Center; and enhancements to multi-modal transportation serving Mission Bay South and surrounding areas, including the Potrero Hill and Dogpatch neighborhoods, beyond what is necessary to address the community's needs with regard to Events at the Event Center.
(b) Use of the Fund. In furtherance of the Fund's purpose under subsection (a) above, money received in the Fund as described in subsection (c) below shall be used exclusively to pay for the City's costs relating to Events at the Event Center (collectively, "Required Uses"):
(1) Costs of providing services to the Project Site and surrounding neighborhood, including, but not limited to, public transit services, special event shuttles, parking and traffic engineering and control services, pedestrian and bicycle access programs, parking enforcement programs, local access programs (including, without limitation, access to the University of California at San Francisco hospitals in Mission Bay South), police services, litter pick-up, street and sidewalk cleanup, and any other measures to improve services consistent with the purpose of this ordinance; and
(2) Costs of procuring transit equipment and making transportation infrastructure improvements, including, without limitation, Municipal Transportation Agency (MTA) costs to purchase additional Municipal Railway light rail vehicles, construct crossover tracks and loading platform improvements in the T-Third right of way, and make parking and traffic improvements (such as, without limitation, cameras, vehicle messaging signs, traffic signals, Municipal Railway and other transportation network upgrades, and power augmentation for light rail vehicles and related transportation services), bicycle and pedestrian access improvements, and other related street improvements, costs to study the feasibility of a ferry landing and service for Mission Bay South and other surrounding areas, and any financing and soft costs related to such equipment purchases or infrastructure improvements.
(c) Deposits to the Fund. Deposits to the Fund shall be determined through the process set out below, and appropriated under the Charter's budgetary and fiscal provisions:
(1) Beginning in fiscal year 2016-2017, and subject to approval from its Board of Directors in accordance with the public hearing process described in subsection (d)(3) below, the MTA will prepare and submit to the Mayor budgets to pay for all measures that are part of MTA's transportation services plan for the Event Center and all transportation improvement measures, consistent with its two-year budget process under the Charter and MTA Board Resolution No. 15-154 (the "MTA Resolution"). The budget proposal will include two components. In one component, the MTA will provide for expenditure for Required Uses of City revenues and development impact fees from the Project Site or Events at the Event Center that are dedicated under the City Charter or otherwise by operation of law to the MTA's Municipal Transportation Fund (collectively, "MTA Dedicated Funds"). In the other component of its budget proposal, the MTA will propose how the remaining costs (net of those to be paid from MTA Dedicated Funds) for the Required Uses for the upcoming budget cycle will be paid for from the Fund. In any fiscal year before the fiscal year in which the Controller anticipates that the Event Center will open, the MTA budget will include any funds then required to finance capital expenditures, including hard and soft costs, not to exceed the sum of discretionary, unrestricted General Fund revenues and MTA Dedicated Funds that the Controller determines that the Event Center has generated or will likely generate for that fiscal year. Also, beginning with the fiscal year in which the Controller anticipates that the Event Center will open, the Department of Public Works and the Police Department, shall prepare budget proposals to pay for those expenditures for City services and capital improvements related to the Event Center that qualify as Required Uses under subsection (b), and, no later than March 1 of each year, submit those budgets to the Mayor and Board of Supervisors. The budgets that such departments prepare shall be sufficient to cover all the costs of the department's respective services to address community needs relating to the use and operation of the Event Center and pay for Required Uses consistent with the purpose of the Fund.
(2) The Mayor and Board of Supervisors shall include in the City's annual budget monies for deposit into the Fund sufficient to meet the budgeted expenditures in the proposals, provided that for the first five years of operation of the Event Center, the annual deposit shall be at least the amount specified in subsection (c)(3) below and further provided that, for any fiscal year, the total annual deposit in the Fund, plus the Overlapping Event Reserve (described in subsection (c)(4) below), shall not exceed 90% of the total amount that the Controller estimates to be the annual General Fund revenues from the Project site and events at the Event Center as determined through the financial assessment described in subsection (d)(1) below. That 90% shall be the "Maximum Annual Funding Amount" for the Fund.
(3) Subject to the Maximum Annual Funding Amount, the required City deposit the first five fiscal years of operation of the Event Center, beginning in the fiscal year in which the Event Center opens to the public, shall be as follows:
(A) First fiscal year: the deposit into the Fund shall be no less than $8,100,000.
(B) Second fiscal year: the deposit into the Fund shall be no less than $8,300,000.
(C) Third fiscal year: the deposit into the Fund shall be no less than $8,500,000.
(D) Fourth fiscal year: the deposit into the Fund shall be no less than $8,800,000.
(E) Fifth fiscal year: the deposit into the Fund shall be no less than $9,100,000.
(4) In addition to the annual deposit described in subsections (c)(2) and (c)(3) above, beginning in the fiscal year in which the Event Center is open, there shall be a reserve in the Fund of $1,000,000, for the term of the Fund (the "Designated Overlapping Event Reserve"). The sum of the annual deposit plus the Designated Overlapping Event Reserve shall not exceed the Controller's determination of the Maximum Annual Funding Amount. Monies in the Designated Overlapping Event Reserve shall be immediately available to the MTA to pay for enhancements to multi-modal transportation serving Mission Bay South and surrounding areas beyond what is needed to address effects from operation of the Event Center, including, but not limited to, operational measures and capital improvements, relating to pre-event peak periods on weekday evenings when an Event, other than a Warriors basketball game, with attendance anticipated by the MTA (based on information provided by the Event Center's operator) of more than 12,500 people occurs at the Event Center and a San Francisco Giants baseball game also occurs at AT&T Park. The Advisory Committee referenced in subsection (d)(2) below shall make recommendations to the MTA about expenditure of such funds before the MTA determines how to expend the funds. If the MTA, at either the MTA Board of Directors or MTA Director level, determines not to follow any such recommendations, the MTA will articulate its reasons for its decision. To the extent the MTA draws on monies in the Designated Overlapping Event Reserve during the first five fiscal years of the Event Center's operation, the annual deposit to the Fund for the following year shall include funds to bring the Designated Overlapping Event Reserve to its full funding level, again provided that the annual deposit, plus the Designated Overlapping Event Reserve, do not exceed the Maximum Annual Funding Amount. In addition, if the Advisory Committee determines, based on review of travel time data collected by the MTA for routes to the Event Center, that any considerable additional traffic congestion affecting access by hospital employees to the University of California at San Francisco hospitals at Mission Bay occurs in the pre-event peak period during weekday evenings when there is an event-other than a Warriors game-with more than 12,500 people at the Event Center and a Giants game at AT&T Park, and the Advisory Committee recommends using, in addition to the Designated Overlapping Event Reserve, any balance in the Fund that is not budgeted for other purposes under this ordinance, for services or capital projects to address such occurrence, then the Director of Transportation will consider approving such recommendations, which approval the Director will not unreasonably withhold or delay, and the Director will take such actions as are necessary to seek any required approvals and implement such recommendations, all as provided in the MTA Resolution.
(5) After the first five fiscal years of operation of the Event Center, if at the end of any fiscal year during the remaining term of the Fund as described in subsection (e) below, the balance in the Fund exceeds expenditures, then, in addition to the Designated Overlapping Event Reserve, such excess monies shall carry forward as a reserve for Required Uses consistent with the Fund's purpose to the extent such excess monies do not exceed 25% of the total expenditures from the Fund for the previous fiscal year. Before the end of the first five fiscal years, 100% of any such Fund balance shall carry forward.
(6) The Fund may receive and use for the Required Uses any grants, gifts, or other contributions of money or property that the owner of the Event Center or any other person or entity may offer the City to support the City in furthering the purpose of the Fund. Subject to any applicable legal restrictions, the City may use such grants, gifts, or other contributions of money or property to make its annual deposit to the Fund or to find the Designated Overlapping Event Reserve.
(d) Reports, Public Review, and Accountability.
(1) For the fiscal year in which the Controller anticipates that the Event Center will open to the public, and for every five years after the Event Center opens, the Controller shall conduct a financial assessment of the economic impact of the Project. This assessment shall include an estimate of discretionary, unrestricted General Fund revenues that the City and County of San Francisco expects to receive from the Project site and from events at the Event Center. These revenue estimates shall be net of City revenues and development impact fees dedicated for specific purposes under the Charter, Municipal Code, or state law, including, but not limited to, MTA Dedicated Funds. The Controller shall, in the assessment, include separate estimates of revenues generated on the Project Site and revenues attributable to demand from Events that are generated off the Project Site. The Controller may conduct such assessment more frequently if the Controller considers it appropriate to do so to monitor the Maximum Annual Funding Amount.
If at any time during the term of the Fund the Controller determines that the sum of the annual deposit for the year and the Designated Overlapping Event Reserve exceeds the adjusted Maximum Annual Funding Amount, then the Controller shall make pro rata reductions to the deposit and the Reserve to reflect the amount of the reduction in the Maximum Annual Funding Amount; provided that nothing in this ordinance shall limit the authority of the Board of Supervisors and Mayor to appropriate other monies from the General Fund to make up any such reductions.
If in any year City expenditures for Required Uses exceed the Maximum Annual Funding Amount for the year, regardless of the source of the funds for those expenditures, the City shall be entitled to a credit, distributed on a pro rata basis between the annual deposit and the Overlapping Event Designated Reserve, against its funding obligations under this Section 10.100-364 for the following year, in the same total amount that those expenditures exceeded the Maximum Annual Funding Amount, unless the Board of Supervisors and the Mayor waive that credit as part of the budgetary process.
(2) In developing the proposed annual budgets for uses of the Fund, the MTA, in coordination with the Department of Public Works and the Police Department, will seek the input and recommendations from the Warriors Event Center Community Improvement Measures Fund Advisory Committee established in Administrative Code Chapter 5, Article XXIII.
(3) As provided in the MTA Resolution, before submitting to the Mayor the MTA's proposed budget for expenditures from the Fund, the MTA Board of Directors will hold a public hearing on the proposed budget. In the hearing the MTA Board of Directors will consider the recommendations of the Advisory Committee.
(4) In any fiscal year after the fiscal year in which the Event Center opens, before the Mayor or Board of Supervisors make any reduction in the annual budgeted expenditures from the Fund, there shall be a public hearing before the Board of Supervisors or one of its committees regarding such proposed reduction.
(e) Term of the Fund. The Fund shall remain in effect for as long as Events are held at the Event Center.
(Added by Ord. 230-15 , File No. 150995, App. 12/18/2015, Eff. 1/17/2016)