San Francisco County Municipal Code Art. IV Leases When City Is Landlord

Sec. 23.30. Lease of Real Property. Sec. 23.31. Year-to-Year or Shorter Leases. Sec. 23.32. Advisory Review by Director of Property. Sec. 23.33. Competitive Bidding Procedures. Sec. 23.34. Lease Reporting. Sec. 23.35. Re-Lease Real Property to Existing Tenant on a Negotiated Basis. Sec. 23.36. Lease of Real Property under Recreation and Parks Commission and Public Utilities Commission Jurisdiction. Sec. 23.37. Real Estate Department to Collect Rents.

Sec. 23.38. Agreements for Private Use of City Property; Possessory Interest Taxes. Sec. 23.39. Taxable Possessory Interests in Tax-Exempt Real Property; Report of Agreement and Change of Ownership or Extension of Agreement. Sec. 23.40. Sale or Lease of Park Land; Use of Certain Park Land for the Construction of Water Quality and Sewerage Facilities. Sec. 23.41. Transfer of Park and Other Lands to the National Park Service of the United States Department of the Interior. Sec. 23.42. Prohibition on Leasing of City-Owned Land for the Extraction of Fossil Fuels.

Except as provided by Sections 4.112, 4.113, 4.114, 4.115, and B3.581 of the Charter and by Sections 2A.173 and 23.36 of this Code, or as otherwise provided by the Charter or this Code, the Director of Property shall have the charge of the Lease of Real Property owned by the City. When the head of any department in charge of Real Property reports to the Director of Property that certain land is not required for the purposes of the department, the Board of Supervisors, by resolution, may authorize the Lease of such Real Property. The Director of Property shall determine the Market Rent of such Lease based on a review of available and relevant data. If the Market Rent of the Lease is more than $45 per square foot per year as base rent, the Director of Property shall obtain an Appraisal for such Lease. If an Appraisal determines the Market Rent of the Lease exceeds $60 per square foot per year as base rent, the Director of Property shall obtain an Appraisal Review for such Appraisal. Any Appraisal or Appraisal Review shall have an effective date of value that is not earlier than nine months before the date legislation for the proposed Lease is submitted to the Board of Supervisors. The Director of Property shall arrange for such Lease to the highest responsible bidder in accordance with Competitive Bidding Procedures and for no less than the Director of Property's opinion of Market Rent if there is no Appraisal, or for no less than the Market Rent stated in the Appraisal if there is an Appraisal, unless the Board of Supervisors has by resolution found that (a) such Competitive Bidding Procedures are impractical or impossible or has authorized other means of award in furtherance of a proper public purpose, or (b) a lesser sum which furthers a proper public purpose. The Director of Property shall collect rents due under such Lease. under such Lease. When the Public Utilities Commission, the Recreation and Park Commission, the Port Commission, or the Municipal Transportation Agency require approval of the Board of Supervisors to a proposed Lease of Real Property owned by the City, the applicable Commission or Agency shall determine the Market Rent of such Lease based on a review of available and relevant data. If the Market Rent of the Lease is more than $45 per square foot per year as base rent, the applicable Commission or Agency shall, through the Director of Property, obtain an Appraisal of the Market Rent for the Lease unless the Executive Director of the Port determines, for Real Property under Port jurisdiction, that the rental rate for the proposed Lease meets or exceeds the Port Commission's annually adopted parameter rental rate for such Real Property, and such Lease shall be for no less than the Market Rent established in the Appraisal unless (1) the Commission or Agency determines that applying the Market Rent requirement would interfere with its capacity in discharging one of its core functions under the City Charter, (2) the Board of Supervisors has found by resolution that a lesser sum will further a proper public purpose, or (3) the Commission or Agency determines, with Director of Property concurrence, that an independent, appropriately qualified real estate economic expert is better suited than an Appraiser to perform the rental analysis. If an Appraisal determines the Market Rent of the Lease exceeds $60 per square foot per year as base rent, the applicable Commission or Agency shall, through the Director of Property, obtain an Appraisal Review for the Appraisal. Any Appraisal or Appraisal Review shall have an effective date of valuation that is not earlier than nine months before the date legislation for the proposed Lease is submitted to the Board of Supervisors. The requirements in this Section 23.30 for Board of Supervisors approval by resolution shall not apply to Core Initiative Leases approved under Administrative Code Chapter 21B.3. 1 (Added by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 103-16 , File No. 160361, App. 6/24/2016, Eff. 7/24/2016; Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025) (Former Sec. 23.30 redesignated as Sec. 23.48 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001) CODIFICATION NOTE

1. So in Ord. 10-25.

If any department in charge of City-owned Real Property requests the Director of Property to Lease City-owned Real Property, the Director of Property shall have the authority to enter into the following Leases on behalf of the City as Landlord: (a) on a year-to-year or shorter tenancy, where such Real Property has a fair market rental value of $15,000 or less per month, and (b) where the term of a Lease will not exceed 31 days, including without limitation month-to-month Leases. In addition, where, in the opinion of the Director of Property, the Leasing of such Real Property for landscaping or gardening serves a public purpose, the Director of Property may Lease

such Real Property at a nominal rental, on a year-to-year or shorter tenancy, and on such other terms and conditions as the Director of Property may require. Within 10 days after entering into any Lease under this Section 23.31, the Budget and Finance Committee of the Board of Supervisors shall be notified by the Director of Property as to the terms and conditions of such Leases. (Added as Sec. 23.22; amended by Ord. 323-86, App. 8/8/86; Ord. 284-90, App. 7/24/90; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 103-16 , File No. 160361, App. 6/24/2016, Eff. 7/24/2016) (Former Sec. 23.31 redesignated as Sec. 23.50 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

Any commission, board or department that, under the Charter or this Code, is given exclusive power to Lease Real Property under its control and management may submit any proposed Lease to the Director of Property for review and advisory recommendations and may request the Director of Property to determine fair market rental rates to aid and assist in negotiating, extending or renewing such Leases. It is the City's policy that all commissions, boards and departments that negotiate and administer such Leases submit all proposed Leases which have a term, including extension options, of five years or more, or which would produce more than $500,000 in revenue over such term, to the Director of Property for review and advisory recommendations before final approval of any such Lease and, as to such Leases, request the Director of Property to determine fair market rental rates to aid and assist in negotiating, extending or renewing such Leases. The purpose of this policy is to achieve greater consistency and coordination in the City's Leasing practices, to increase the financial return to the City from its Leases and to avoid unnecessary duplication of effort and expense in the Leasing of City Real Property. (Added as Sec. 23.23 by Ord. 323-86, App. 8/8/86; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 278-04, File No. 041352, App. 11/18/2004) (Former Sec. 23.32 redesignated as Sec. 23.51 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

To the extent that any ordinance, Code provision, or Charter provision gives the City, or any of its commissions, boards, or departments, power to award Leases without competitive bidding, it shall be City policy that, notwithstanding such power, all such Leases that are expected to produce more than $2,500 per month in revenue be awarded in accordance with Competitive Bidding Procedures, unless such Competitive Bidding Procedures are impractical or impossible. It shall also be City policy that any and all Leases awarded without following the Competitive Bid Procedures shall be in an amount not less than the fair market value of the leased property. If any City department wishes to award a Lease of City-owned property for less than fair market value, it shall make a finding of the public purpose to be served by such Lease, and such Lease and finding shall be subject to the prior approval of the Mayor and the department head, as well as the applicable commission. If there is no commission approval, then such Lease and finding shall also be subject to the prior approval of the Board of Supervisors. The Lease shall also require that the tenant will use the leased premises in accordance with the stated public purpose for the entire lease term. The provisions of this Section 23.33 shall be applied subject to Administrative Code Chapter 21B.3(b) 1 and shall not apply to any leases awarded pursuant to Administrative Code Chapter 23A. (Added as Sec. 23.24 by Ord. 323-86, App. 8/8/86; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 278-04, File No. 041352, App. 11/18/2004; Ord. 10-25, File No. 250040, App. 2/12/2025, Eff. 3/15/2025) (Former Sec. 23.33 redesignated as Sec. 23.52 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001) CODIFICATION NOTE

1. So in Ord. 10-25.

Each commission, board and department that is empowered by the Charter, City ordinance, this Code or State statute to Lease City- owned Real Property shall, within 10 days after the close of each quarter of a fiscal year ("fiscal quarter"), file with the Budget Analyst for the Board of Supervisors and post on the commission, board or department website a written report of all Leases of City-owned Real Property awarded during the preceding fiscal quarter which were less than fair market value or which were not submitted for approval by the Board of Supervisors. The report shall contain the following information for each Lease: 1. Tenant's name.

2. Term of the Lease, including any extension options.
   3. Rental amount, including, any percentage rent and rent escalation or adjustment provisions, and, if applicable, the finding of public purpose for why the rent was set at less than fair market value.
   4. Location of Leased Real Property.
   5. If unimproved Real Property, dimensions and area of Real Property.
   6. If improved Real Property, description of improvements and floor area of Leased space.
   7. Use to be made of premises by the tenant. The Budget Analyst shall review each report and may report his or her comments and recommendations to the Board of Supervisors, as the Budget Analyst deems appropriate. (Added as Sec. 23.25 by Ord. 323-86, App. 8/8/86; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. 278-04, File No. 041352, App. 11/18/2004) (Former Sec. 23.34 redesignated as Sec. 23.53 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

Notwithstanding any other provision in this Chapter, where the City Acquires Real Property which at the time of Acquisition is under a Lease to a tenant from the previous owner, the Director of Property may, subject to the approval by resolution of the Board of Supervisors, upon expiration of such Lease, negotiate at a fair market rental a new Lease for such Real Property with the same tenant on a term designated by the Board of Supervisors, until such time as required for the purposes of the department in charge of such Real Property. (Added by Ord. 15-01, File No. 001965, App. 2/2/2001) (Former Sec. 23.35 redesignated as Sec. 23.54 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

PUBLIC UTILITIES COMMISSION JURISDICTION. In addition to the delegation of authority set forth in Sections 4.112, 4.113, 4.114, 4.115, and B3.581 of the Charter and by Section 2A.173 of this Code, (i) pursuant to Charter Section 4.113, the Recreation and Parks Commission shall have the power to Lease Real Property under its jurisdiction subject to approval by the Board of Supervisors as required by Charter Section 9.118 and any other applicable provision of the Charter or this Code, and (ii) pursuant to Charter Section 4.112, the Public Utilities Commission shall have exclusive power to Lease Real Property under its jurisdiction, subject to approval by the Board of Supervisors as required by Charter Section 9.118 and any other applicable provision of the Charter or this Code. (Added by Ord. 15-01, File No. 001965, App. 2/2/2001) (Former Sec. 23.35 redesignated as Sec. 23.55 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

The Real Estate Department is authorized and directed to collect all rents due under Leases of City-owned Real Property, except as otherwise provided in the Charter or this Code. All moneys received by the Real Estate Department in payment of rents shall be deposited in the proper funds to the credit of the various departments having control of the City-owned Leased Real Property. (Added by Ord. 15-01, File No. 001965, App. 2/2/2001) (Former Sec. 23.37 redesignated as Sec. 23.56 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

All agreements permitting the use for private gain Real Property situated in the City and County of San Francisco and owned by the

City, including any agency thereof, shall contain a clear and unequivocal understanding that a possessory interest subject to taxation may be created and that the party with the right to use such Real Property shall pay any and all possessory interest taxes levied upon his or her interest therein pursuant to an assessment made by the Assessor. However, the Board of Supervisors may by resolution specifically authorize and approve to be included in such agreement a provision for the City's assumption of the payment of such possessory interest taxes, in whole or in part, or for an offset against revenues otherwise due and payable to the City under such agreement in an amount equal to all or a portion of such possessory interest taxes. Such agreement shall also provide that the holder of such interest shall, upon request, furnish the information required in Section 23.39 of this Code to the City within 30 days of any transaction that is subject to the reporting requirements of such Section. Within 60 days after execution of an agreement pertaining to the use of City Real Property as described above, the agency executing such agreement on behalf of the City shall forward or cause the holder of such interest to forward, a copy of the agreement to the Assessor of the City and County of San Francisco, as required in Section 23.39 below. As used in this section and in Section 23.39 below, the term "agreement" shall mean any written contract, instrument or other document permitting the possession, occupancy or use of City Real Property including, but not limited to, Leases, concession agreements, franchise agreements and management agreements. (Added by Ord. 15-01, File No. 001965, App. 2/2/2001)

AGREEMENT AND CHANGE OF OWNERSHIP OR EXTENSION OF AGREEMENT. In accordance with Revenue and Taxation Code Section 480.5, every owner of tax-exempt Real Property shall report to the assessor of the City and County of San Francisco the creation, renewal, extension, assignment, sublease or other transfer of any interest granted under an agreement to use such Real Property, within 60 day of the transaction. The report shall be on such form as the Assessor may prescribe and shall include, at a minimum, all of the following: (a) The name and address of the owner. (b) The names and addresses of all other parties to the transaction, including an identification of each party and of his or her interest under the agreement. (c) The type of transaction, whether creation, renewal, extension, sublease, assignment, transfer or otherwise. (d) A description of the Real Property, which is the subject of the agreement. (e) The effective date of the transaction. (f) A summary of the essential terms of the transaction, including, but not limited to, all of the following: (1) The consideration for the interest, whether paid in money or otherwise. (2) The term of the agreement, including any renewal or extension option. (3) If a sublease or other agreement subject to an underlying agreement, the original terms, remaining term and consideration paid for the master lease or other master agreement. (4) If an assignment or other transfer, the original term, remaining term, and the consideration paid for the underlying Lease or agreement. (Added by Ord. 15-01, File No. 001965, App. 2/2/2001)

CONSTRUCTION OF WATER QUALITY AND SEWERAGE FACILITIES. (a) Whenever lands that are or shall be used or intended for use for parks or squares are no longer needed for park or recreational purposes, the City may dispose of such lands or may abandon or discontinue their use for park purposes, provided that nothing herein shall be construed to authorize the discontinuance or abandonment of the use of such lands, or any change in the use thereof that will cause the reversion of such lands to private ownership, or cause the forfeiture of the ownership thereof in fee by the City, or to authorize the discontinuance of the use of park lands acquired in any proceeding wherein a local assessment based on benefits was or shall be levied to provide funds for such acquisition; and provided further that the general laws of the State of California authorizing municipal corporations to abandon or to discontinue the use of land for park purposes, authorizing the disposition of such lands, and providing procedures therefor and for matters relating thereto, shall be applicable to the City and to all lands held or used by it for park purposes and shall govern and control exclusively in respect thereto. For the purposes of this subsection, all lands, including but not limited to, playgrounds, athletic facilities, and lands purchased with open space acquisition and park renovation funds, but excluding the Great

Highway, the land described in Subsection (b) below, and lands administered by the Recreation and Park Department pursuant to agreements with other City departments or entities, placed under the jurisdiction of the Recreation and Park Department shall be deemed used or intended for use for park purposes. (b) Upon approval by the Recreation and Park Commission, that parcel of land south of the Zoo and between the Great Highway Extension and Skyline Boulevard set forth and described in parcel map entitled "Parcel Map Showing Certain Park Land Proposed to be Used Jointly," recorded August 12, 1975 in Parcel Map Book Number One at page 96 in the office of the Recorder of the City and County of San Francisco, may be used for the construction of water quality and sewerage facilities, and any facilities so constructed shall be under the control, management, and direction of the Department of Public Works. Any recreation or zoo facilities constructed on said parcel shall remain under the control, management, and direction of the Recreation and Park Commission. (Added as Sec. 23.25-2 by Ord. 439-96, App. 11/8/96; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

UNITED STATES DEPARTMENT OF THE INTERIOR. (a) Upon approval by the Recreation and Park Commission, the Board of Supervisors may by resolution authorize transfer by deed to the National Park Service of the United States Department of the Interior for inclusion in the Golden Gate National Recreation Area as presently defined and delimited by Public Law 92-589, 86 Stat. 1299, of any interest which the City has in lands restricted to use for recreation or park purposes or otherwise under the exclusive control, management or direction of the Recreation and Park Commission, except the premises and grounds of the Palace of the Legion of Honor and Lincoln Park Golf Course, provided that such deed shall be executed under the restriction that the transferred lands be reserved in perpetuity for recreation or park purposes by the National Park Service of the United States Department of the Interior and shall grant the City a power of termination upon a breach of such restriction, and provided further that said transfer shall be executed under such conditions and restrictions as shall prevent the reversion of any portion of such lands to any person or entity other than the City. (b) Upon approval of the officer, board or commission in charge of the department responsible for the administration of any interest which the City has in Real Property not referred to in Subsection (a), the Board of Supervisors may by resolution authorize transfer of such interest by deed to the National Park Service of the United States Department of the Interior for inclusion in the Golden Gate National Recreation Area as presently defined and delimited by Public Law 92-589, 86 Stat. 1299, provided that said deed shall be executed under the restriction that said lands be reserved by the National Park Service of the United States Department of the Interior in perpetuity for recreation or park purposes with a power of termination upon breach of said restriction, and provided further that said transfer shall be executed under such conditions and restrictions as shall prevent the reversion of any portion of said lands to any person or entity other than the City. (Added as Sec. 23.25-3 by Ord. 439-96, App. 11/8/96; redesignated and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)

FUELS. (a) Title. This Section 23.42 may be cited as the “San Francisco Keep It in the Ground Ordinance.” (b) Findings. (1) The 2014 Fifth Assessment Report of the Intergovernmental Panel on Climate Change, a group of independent scientific experts from 195 countries under the auspices of the United Nations, states: (A) “Warming of the climate system is unequivocal, and since the 1950s, many of the observed changes are unprecedented over decades to millennia. The atmosphere and ocean have warmed, the amounts of snow and ice have diminished, and sea level has risen . . . . The period from 1983 to 2012 was very likely the warmest 30-year period of the last 800 years in the Northern Hemisphere, where such assessment is possible (high confidence) and likely the warmest 30-year period of the last 1400 years. (B) “Human influence on the climate system is clear, and recent anthropogenic emissions of green-house gases are the highest in history. Recent climate changes have had widespread impacts on human and natural systems. (C) “Without additional mitigation efforts beyond those in place today, and even with adaptation, warming by the end of the 21st century will lead to high to very high risk of severe, wide-spread and irreversible impacts globally (high confidence).” (2) The World Meteorological Organization announced that 2015 is likely to be the warmest year on record and that the years 2011- 2015 have been the warmest five-year period on record. (3) The San Francisco Bay Conservation and Development Commission’s 2011 report, “Living with a Rising Bay,” found that a 55- inch sea level rise by the end of the century would cause substantial impacts to San Francisco and California, including: putting $62 billion of Bay Area shoreline development at risk, increasing the number of people at risk of flooding in the Bay Area to 270,000; and requiring at least $14 billion worth of static structures to protect California’s shorelines.

(4) At the 2015 United Nations Climate Change Conference (COP 21), 196 parties including the United States, negotiated the Paris Agreement that reaffirms the goal of limiting global temperature increase well below 2 degrees Celsius while urging efforts to limit the increase to 1.5 degrees. (5) Climate scientists have published several studies of the world’s remaining “carbon budget,” which is the maximum amount of future carbon that can be emitted into the atmosphere to provide a certain probability of limiting global temperature increase to 2 degrees Celsius, including: (A) The International Energy Association’s “World Energy Outlook 2012” estimates that “no more than one-third of proven reserves of fossil fuels can be consumed prior to 2050 if the world is to achieve the 2 degrees Celsius goal.” (B) The Carbon Tracker Initiative’s 2014 report, “Unburnable Carbon,” estimated that “to reduce the chance of exceeding 2 degrees Celsius warming to 20%,” the remaining global carbon budget from 2011 to 2050 was 565 gigatons of carbon out of the 2,795 gigatons of currently known fossil fuel reserves. (6) Senator Jeff Merkley and Congressman Jared Huffman have introduced the “Keep it in the Ground Act” to permanently prohibit new leases for the extraction of fossil fuels on all federal public lands and in federal waters. (7) Prohibiting fossil fuel leases on all City-owned property is consistent with Chapter 9, Section 900(f) of the Environment Code, “Greenhouse Gas Emissions Targets and Departmental Action Plans,” which states the intent of the Mayor and the Board of Supervisors to protect the health and welfare in a manner that complements state and federal efforts to improve air quality by exercising a leadership role in mandating local actions to reduce global warming. (c) Prohibition. The City shall not enter into any lease, or extend any existing lease, that provides for or allows the extraction of fossil fuel from City-owned land. For purposes of this Section 23.42, “fossil fuel” shall mean coal, petroleum, kerosene, oil, tar sands, oil shale, gas, and other petroleum or hydrocarbon products that emit carbon dioxide as a byproduct of combustion. (d) Fossil Fuel Remediation and Constructive Future Use. Regarding any City-owned property that is or was previously leased for fossil fuel extraction: (1) Within six months of the effective date of this Section 23.42, the Director of Property, in coordination with the Department of the Environment, shall inspect such property to ensure that any current or former lessee complies with, or complied with, all applicable federal, state, and local environmental laws. Within 30 days of such inspection, the Director of Property shall submit a report regarding the state of the property to the Board of Supervisors, including whether the Director recommends additional inspections or further action; (2) Upon the termination of any existing lease, the Director of Property, in coordination with the Department of the Environment and the San Francisco Public Utilities Commission, shall inspect such property to conduct an ecological evaluation of the property and ensure that the lessee has removed all equipment and that the state of the property complies with all applicable federal, state, and local environmental laws. Within 30 days of such inspection, the Director of Property shall submit a report regarding the state of the property to the Board of Supervisors, including a report on the value of the property as habitat and potential for restoration, and whether the Director recommends additional inspections or further action; and (3) Within 90 days of the inspection required under subsection (d)(2), the Director of Property, in coordination with the Department of the Environment and the San Francisco Public Utilities Commission, shall submit to the Board of Supervisors a “Just Transition Plan” for the property. The Just Transition Plan shall evaluate possible constructive future uses for such property, including renewable electricity generation, recreation, and habitat protection and restoration. The Just Transition Plan shall also assess adverse impacts to workers from the termination of the lease and identify mechanisms to minimize or eliminate those impacts, including potential job creation from the possible constructive future uses. (e) Prospective Effect. The prohibition in this Section 23.42 is intended to have prospective effect only, and shall not be interpreted to impair the obligations of any existing lease entered into by the City before the effective date of this Section, or any reserved rights held by the State of California or other person or entity in a deed or other instrument. (f) Exclusive Jurisdiction Departments. This Section 23.42 shall not apply to any department of the City that has exclusive jurisdiction over its real property to the extent application to that department would violate the Charter or interfere with the department’s ability to carry out its core functions under the Charter. The Board of Supervisors urges departments of the City that have exclusive jurisdiction over real property to adopt policies consistent with the prohibition set forth in this Section. (g) Undertaking for the General Welfare. In enacting and implementing this Section, the City is assuming an undertaking only to promote the general welfare. It is not assuming, nor is it imposing on its officers and employees, an obligation for breach of which it is liable in money damages to any person who claims that such breach proximately caused injury. (Added by Ord. 236-16, File No. 160222, App. 12/9/2016, Eff. 1/8/2017) ARTICLE V:

LOT LINE WINDOW AGREEMENTS

Sec. 23.45. Authority of Director of Property. Sec. 23.46. Determination of Value. Sec. 23.47. Requirements for Lot Line Window Agreements. Sec. 23.48. Fees and Fee Payments.

An owner of Real Property adjoining Real Property of the City may request that the City consent to openings in building walls on the owner's Real Property that are closer to the common property line than the distances prescribed in the San Francisco Building Code by filing with the Director of Property an original and two copies of a written application, together with plans, specifications and other supporting documents, and paying the required application fee. Upon such filing, the Director of Property shall investigate the application and consult with the department that has jurisdiction over the Real Property. Copies of the application and its supporting documents shall be delivered by the Director of Property to the Department of City Planning and the Bureau of Building Inspection for review and comment as that department and that bureau may deem appropriate. If the department having jurisdiction over the Real Property approves and the Director of Property concludes that it is in the best interest of the City to give the requested consent, the Director of Property is authorized to approve and execute a lot line window agreement which complies with all of the provisions of this Article. (Formerly Sec. 23.27; added by Ord. 559-85, App. 12/27/85; amended and renumbered by Ord. 15-01, File No. 001965, App. 2/2/2001)

The Director of Property shall determine a monthly fee for the privilege of installing the openings in building walls that are made possible by the City's consent. The monthly fee shall be based upon an appraisal by the Director of Property of the enhancement in fair market value of the building owner's Real Property that will result from installation of the proposed openings in building walls. If the original monthly fee based upon the Director of Property's appraisal is more than $50 the agreement shall provide for payment by the building owner, in advance, of the monthly fee so determined by the Director of Property. The monthly fee may, at the Director of Property's discretion, be payable monthly, quarterly, semiannually or annually. The agreement shall contain a provision for annual adjustment of the monthly fee to reflect increases or decreases in the Consumer Price Index for all Urban Consumers for the San Francisco-Oakland Metropolitan Area and a provision for a redetermination of the monthly fee by the Director of Property, upon the same appraisal basis as the original fee determination, at the end of each five-year period. If the original monthly fee based upon the Director of Property's appraisal is $50 or less, a one-time fee of $1,000 shall be paid by the building owner and no monthly fees shall be payable. (Formerly Sec. 23.28; added by Ord. 559-85, App. 12/27/85; amended and renumbered by Ord. 15-01, File No. 001965, App. 2/2/2001)

All lot line window agreements shall comply with the following requirements: 1. The building to which the agreement relates shall comply with the Building Code and all other applicable codes, ordinances and regulations of the City and with all applicable federal and State laws and regulations. 2. The building shall be constructed or remodeled in conformity with the plans and specifications submitted with the application for a lot line window agreement and shall be used for the purposes stated in the application. 3. The agreement shall be terminable at any time, with or without cause and without penalty, by either party. The termination will not be effective, however, unless the terminating party gives at least 90 days prior written notice of termination which is mailed or delivered to the other party. The notice of termination shall contain the legal descriptions of both properties and shall be acknowledged by the terminating party. The notice of termination may be recorded by either party at any time and, after the termination date, the

recorded notice shall be conclusive proof of termination of the agreement. 4. The building owner shall agree that, in the event the agreement is revoked, the openings consented to by the agreement shall be protected or closed, as required by the Building Code, and the building otherwise modified as may be necessary to comply with those Building Code requirements that become applicable because of protecting or closing the openings. 5. The building owner shall indemnify the City, its officers, employees and agents, against all liabilities that may result from or be connected with the agreement. 6. During the life of the agreement, the building owner shall maintain comprehensive personal liability insurance with limits satisfactory to the Risk Manager of the City and with the City, its officers, agents and employees named as additional insureds. 7. The agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns. 8. The agreement shall be executed by both parties and shall contain the legal descriptions of both properties. The Director of Property shall execute the agreement for and on behalf of the City, provided the agreement has been previously approved by the City Attorney and the head of the department having jurisdiction over the City's Real Property. The agreement shall be acknowledged by both parties and the Director of Property shall cause the agreement to be recorded. (Formerly Sec. 23.29; added by Ord. 559-85, App. 12/27/85; amended and renumbered by Ord. 15-01, File No. 001965, App. 2/2/2001)

The application fee which is to accompany each application shall be $2,500 unless changed by appropriate action of the Board of Supervisors. If the Director of Property determines, after his investigation of the application, that the application fee is inadequate to cover the cost of preparing and processing an agreement, the Director of Property shall notify the building owner of the additional amount that is required. The additional amount shall be paid by the building owner as a prerequisite to preparation and processing of an agreement by the Real Estate Department. The Real Estate Department is authorized to collect the fees due under lot line window agreements and shall deposit such fees to the credit of the department having jurisdiction over the City's Real Property. The application fees and any additional amounts required to cover the cost of preparing and processing agreements shall be deposited to the credit of the Real Estate Department. (Formerly Sec. 23.30; added by Ord. 559-85, App. 12/27/85; amended and renumbered by Ord. 15-01, File No. 001965, App. 2/2/2001)