4. A communication transmitted from Louis A. DePasquale, City Manager, relative to the Harvard Square Conservation District Study Committee report.
Referred to Ordinance Committee

Date: Feb 18, 2020
To: Louis A. DePasquale, City Manager
From: Charles M. Sullivan, Executive Director
Re: Harvard Square Conservation District Study Committee report

Attached please find the Final Report of the 2017-2019 Harvard Square Conservation District Study Committee dated Dec 31, 2019. On December 5 the Cambridge Historical Commission voted unanimously to support the recommendations of the Study Committee. Additionally, the Planning Board reviewed the recommendations at its December 17 meeting and offered positive comments though it did not take a formal vote.

The Study Committee was appointed in August 2017 and met regularly through July 2019. The Committee’s recommendations focus on refinements to the goals and guidelines of the district and matters of jurisdiction. The report concludes with a proposed amendment to the Order establishing the district with revised goals, guidelines, and standards for review. The report also repeats the recommendation of the 2000 Committee that the Harvard Square Conservation District Goals and Guidelines be incorporated into the Harvard Square Overlay District.

Please contact me with any questions.

6. Transmitting Communication from Louis A. DePasquale, City Manager, relative to the appropriation of $15,000,000 from Free Cash to the Affordable Housing Trust to assist in preserving affordability of units at Fresh Pond Apartments at 362 and 364 Rindge Avenue.
Order Adopted 9-0

Mar 2, 2020
To the Honorable, the City Council:

I am hereby requesting an appropriation of $15,000,000 from Free Cash to the Affordable Housing Trust to assist in preserving affordability of units at Fresh Pond Apartments at 362 and 364 Rindge Avenue. Under terms of the restrictions in place here, affordability of the 504 units is set to expire on Dec 31, 2020. I am pleased to inform you that after multiple years of work, we are now entering the final phase of our plan to preserve the affordability of 504 units at Fresh Pond Apartments, and this special additional appropriation will ensure that the Trust has the funding necessary to extend affordability commitments here.

The Affordable Housing Trust is preparing to make available up to $40 million to ensure the continued affordability of Fresh Pond Apartments. This commitment will include providing financing to the owner to reflect the value discount needed to continue affordability, and a rent reserve which will be used to assist in transitioning some residents to a new affordable rent structure over the next ten years. Details of the preservation plan are further described below.

The City, in conjunction with the Affordable Housing Trust and Mayor Sumbul Siddiqui, have been extremely focused on a timely solution to the preservation of affordability at Fresh Pond Apartments. In addition to being a key Council goal, Fresh Pond Apartments is home to hundreds of Cambridge families, representing students in our schools, people who work throughout the City and individuals who otherwise would not be able to continue living in Cambridge, making this effort an advisable use of the City’s Free Cash resources.

Requesting that the City Council approve a Free Cash appropriation has been part of our plan to fund this preservation effort. With the approval of this request, the City will have used $74.3 million in Free Cash in FY20, the highest amount in the City’s history and significantly higher than the five-year average of $43.6 million. These Free Cash appropriations have supported City Council priorities and highlights the importance of having a significant Free Cash balance to address one-time City priorities.

The City has appropriated $20.3 million in FY20 to the Affordable Housing Trust from all sources (Community Preservation Act, Building Permit Revenue and Property Taxes). With the approval of this request, the total amount of City funding appropriated to the Trust will increase to more than $35.3 million in FY20, more than $61.7 million over the past three years, and more than $219 million since its inception. The Trust has used these funds to preserve or create more than 3,075 affordable homes in our community (not including Fresh Pond Apartments). The Trust will use these funds to supplement the combined $25 million of Community Preservation Act, City budget, and incentive zoning funds that the Trust has set aside for this effort.

Preserving the affordability of Fresh Pond Apartments will allow the City to achieve our expiring use preservation goal. In 2009, the City identified 1,094 units at 10 privately-owned properties where affordability commitments were set to expire by 2021. Affordability has been successfully preserved at nine of these properties, including buildings that for decades have offered affordable housing options for residents in Harvard Square, Inman Square, the Port, Riverside, and West Cambridge. Reaching an agreement to preserve affordability of Fresh Pond Apartments caps our successful efforts to preserve every one of these affordable homes for current and future residents.

Preservation Approach

As the Fresh Pond Apartments include two types of subsidized units, the plan to preserve affordability involves two different strategies. Two-thirds of the property (338 units) has been kept affordable through Section 8 funding received directly from HUD (“Section 8 Units”). The remaining 166 units have been kept affordable according to the requirements of a now defunct HUD program called the Below Market Interest Rate program (“BMIR Units”). The underlying affordability restriction, which outlines requirements for both types of units, is due to expire on 12/31/2020.

Section 8 Units

The HUD Section 8 rental assistance contract can be renewed directly with HUD. Last year, the owner, Schochet Companies, submitted an application to HUD to enter into a new long-term rental assistance contract with HUD. We are pleased to report that the new contract has been approved by HUD and will be finalized shortly, thereby extending affordability of all 338 Section 8 units at the property for another 20 years. The owner is now finalizing this renewal with HUD and will soon communicate this exciting news to residents. Residents in Section 8 Units will continue to pay rent based on 30% of household income.

BMIR Units

The preservation of the BMIR units is more complicated as there are no similar HUD provisions for extending affordability of the BMIR Units. The preservation plan for these units will require that the City provide the owner the difference in the value of these units if they were to be converted to market-rate housing and the value of the units if they were restricted as affordable housing. After a lengthy negotiation, it has been agreed that the value difference for these units is $35 million, assuming affordability levels that are based on the income profile of existing BMIR tenants. In exchange for this “value differential” funding, the owner will maintain affordability of these units for another 50 years.

Residents living in BMIR Units currently pay rents set by HUD under the BMIR program. Unlike rents for Section 8 tenants, which are adjusted annually to equal 30% of individual household income, rents under the BMIR program are flat and are not tied to income. BMIR rents have been capped at low enough levels that most BMIR tenants are currently paying less than 30% of household income for rent. The preservation of the BMIR units involves establishing a new set of affordable requirements going forward. The new affordability framework will be set to reflect the income profiles of existing BMIR tenants. The BMIR program allows tenants to avoid income recertification in exchange for paying a higher rent, so we may find that there are more higher income tenants at Fresh Pond than currently assumed once we begin the process of certifying tenant incomes. The new affordability requirements for the BMIR Units are expected to be set as follows:

• 84% of current BMIR units will be affordable to households earning less than 80% AMI

• 10% of current BMIR units will be affordable to households earning between 80% and 100% AMI

• 6% of current BMIR units will be affordable to households earning between 100% and 120% AMI

When combined with the 338 HUD Section 8 units, the overall breakdown of affordability for all 504 units at Fresh Pond is expected to be:

• 95% of Fresh Pond units will be affordable to households earning less than 80% AMI

• 3% of Fresh Pond units will be affordable to households earning between 80% and 100% AMI

• 2% of Fresh Pond units will be affordable to households earning between 100% and 120% AMI

Rents for the BMIR units will be set at target amounts in each affordability tier that are affordable to households in that income range.

We recognize that many households currently living in BMIR Units will see rent increases when transitioning to the new affordability structure. Funds being made available by the Affordable Housing Trust will include up to $5 million to establish a rent phase-in reserve which will allow for moderated rent increases for residents as they transition to the new tiered rents. This reserve will be sized to enable the most gradual rent increases for eligible low-income or cost-burdened households, reasonable rent increases for moderate- and middle-income households, and steeper increases for higher income or overhoused households. Our plan is for this reserve to offer up to ten years of assistance to current residents, with small rent increases beginning in 2021. We are exploring whether and how we might be able to bring in new housing vouchers, in partnership with the Cambridge Housing Authority, to assist lower income households. Details of the rent phase-in process are still being formulated and will require that we get a better understanding of the income and make-up of households living in BMIR units so we can finalize this plan.

Next Steps

The next phase of our plan to preserve affordability at Fresh Pond will require participation of residents as we prepare for the transition from the BMIR affordability program to a new affordability program made possible with funding from the City. Over the coming weeks and months, staff from CDD and the City Manager’s Office will be working with Mayor Siddiqui’s Office, the Housing Committee co-chairs, the property owner, and housing advocates to update and discuss the preservation plan with the residents at Fresh Pond Apartments. We envision having resident meetings there with the owner beginning in March after funding commitments are in place.

I would like to acknowledge the staff of the Community Development Department, especially the Housing Director, and the entire City Council for the continued support and commitment during this length process to preserve the affordability of the 504 units at Fresh Pond Apartments.

Very truly yours, Louis A. DePasquale, City Manager

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Agenda Item Number 6     Mar 2, 2020
ORDERED: That the City Council appropriate $15,000,000 from Free Cash to the Affordable Housing Trust to assist in preserving affordability of units at Fresh Pond Apartments located at 362 and 364 Rindge Avenue.

7. A communication transmitted from Louis A. DePasquale, City Manager, relative to the City of Cambridge retaining its AAA rating from the nation's three major credit rating agencies.
Placed on File

Mar 2, 2020
To the Honorable, the City Council:

I am pleased to inform you, the taxpayers, and all our residents that the City of Cambridge has retained its noteworthy distinction of being one of approximately 32 cities in the United States with three AAA ratings from each of the nation’s three major credit rating agencies. Each year since 1999, the City has received these ratings from Moody’s Investors Service, S&P Global Ratings, and Fitch Ratings.

This achievement allows the City to finance important projects throughout Cambridge with the most favorable interest rate, which means property tax savings to our taxpayers. This is especially important as we embark on funding for our third school project (Tobin Montessori & Vassal Lane Upper Schools) with an estimated cost of $250 million. Overall, including the Tobin Montessori & Vassal Lane Upper Schools project, the City is projected to spend a total of $505 million for the three school projects. These projects are financed through bond proceeds and without any State reimbursement to the City. In addition, our bonding schedule includes significant obligations for renovations to Fire Headquarters and other stations and other City Buildings, sewer reconstruction, street and sidewalk reconstruction projects.

The rating agencies highlighted the City’s strong financial position, including significant reserve levels; a large and diverse tax base; ample excess levy capacity under Proposition 2½; and a strong and experienced management team. We should expect to receive these favorable ratings in the future if we manage our debt issuance prudently, continue to consistently follow our management and fiscal practices and policies, produce positive annual balance sheets, plan to fund our long-term obligations (pensions and OPEB) and continue to have a vibrant local economy.

Depending on the severity of potential economic impacts in the United States reflected in the recent volatility in the stock market, rating agencies may adjust their ratings, or put on credit watch, municipalities which are not in as strong of a position as a AAA community such as Cambridge.

These ratings are in conjunction with the City’s sale of $53.7 million in General Obligation bonds. The competitive sale will take place on Mar 5, 2020.

Capital projects funded in this bond issuance include the King Open/Cambridge Street Upper School and Community Complex, Tobin Montessori & Vassal Lane Upper Schools design, sewer reconstruction, street and sidewalk reconstruction, and other municipal building renovations.

Based on this ongoing recognition from the rating agencies, the City Council can be justly proud of its sound fiscal policies. Additionally, I would like to thank the City’s Finance Team and Department Heads and staff for their commitment to prudently managing their expenditure and revenue operating and capital budgets and programs. The City is fortunate to have such a strong and dedicated team.

Listed below are highlights from the Moody’s, Standard & Poor’s and Fitch credit reports. Attached are the individual rating opinions.

Moody’s Investor Services

Summary
Cambridge (Aaa stable) benefits from a sizable and diverse tax base that continues to experience double digit annual growth. The city's economy is driven largely by the presence of Harvard University (Aaa stable) and Massachusetts Institute of Technology (MIT, Aaa stable) and the impressive research and development sector. Cambridge's financial position is strong with very healthy liquidity and reserves that are maintained by formal policies and conservative fiscal management. Both the debt burden and long-term liabilities for pension and OPEB are conservatively managed and will remain manageable over the near term.

Credit strengths
» Large and diverse tax base anchored by institutional presences and robust commercial sector

» Healthy financial position guided by formal policies

» Strong fiscal management

» Ample operating flexibility with excess levy capacity under Proposition 2½ and below average residential and commercial tax rates

» Expected to fully fund pension liability by 2026

Credit challenges
» High regional cost of living and cost of business

» Taxpayer concentration in research and development

Rating outlook
The stable outlook reflects the city’s strong fiscal management that is committed to maintaining a healthy financial position given conservative multi-year budget forecasting and adherence to formally adopted fiscal policies. The outlook also incorporates the stabilizing presence of Harvard University and MIT as well as the long historical trend of positive valuation growth in the tax base.

Factors that could lead to a downgrade
» Material growth in the debt burden or unfunded pension liability

» Deterioration in the tax base or weakening of the local economy

» Trend of operating deficits that lead to significant reduction in cash and reserves

Environmental, Social and Governance and Management (ESG) Considerations
• Environmental
The city is committed to addressing environmental risk associated with flooding and heat exposure. To date, the most comprehensive mitigation projects include improving natural barriers around the Alewife neighborhood as well as heat mitigation efforts through its urban canopy-public shade tree investment program. Longer term the city expects to release its Climate Change Preparedness and Resilience Plan in 2020 that includes net zero action plan for government, residential and commercial development.

• Social
Cambridge leverages its strong credit profile by focusing on significant community initiatives. These initiatives currently include a robust bike ordinance, participatory budgeting that gives residents a voice in capital and other spending, the city providing a proportional share of funding towards the MBTA green line extension and offering a small business personal property tax exemption. Additionally, the city continues to increase its funding towards affordable housing projects.

• Governance and Management
The city's experienced management team is very strong, as evidenced by the maintenance of very healthy liquidity and reserves as well as adherence to formal fiscal policies, conservative multiyear budgeting and capital planning.

Financial operations and reserves: very healthy financial position expected to be maintained through conservative fiscal management.
The city's financial position will likely remain healthy over the near term given ample liquidity and reserves that are maintained by conservative fiscal management. The fiscal 2019 audited financials reflect an operating surplus of $19 million attributable to positive variance in excise taxes, investment income and other revenue as well as expense savings in all major departments.

Standard and Poor’s

Outlook
The stable outlook reflects S&P Global Ratings' opinion of Cambridge's stable and growing economic bases, which, along with a very strong financial management environment, has led to predictable financial performance. While retirement costs could rise, along with an increasing debt burden, we expect management will incorporate these costs into the budget with no material effect on financial results over the long term. The rating is further supported by the city's very strong reserves levels, excess levy capacity, and very strong liquidity profile. We do not expect to change the rating during the two-year outlook period.

Downside scenario
While unlikely, if economic growth were to stagnate, along with rising fixed costs, leading to significant reserve drawdowns, we could lower the rating.

Credit Overview
Cambridge is an affluent suburb immediately adjacent to Boston. Home to both Harvard and the Massachusetts Institute of Technology (MIT), the city is at the epicenter of biotech, pharmaceutical, and other knowledge-based sectors, which continue to generate growth in the tax base. The city faces challenges in addressing housing, transportation, and other infrastructure needs. However, it has a history of significant forward-looking financial planning and a track record of consistently outperforming the budget. We expect Cambridge to remain a desirable location to live and work, sustaining economic growth that will assist management in meeting future challenges.

The long-term rating further reflects our view of the following factors:
• Very strong economy, with access to a broad and diverse metropolitan statistical area (MSA);

• Very strong management, with strong financial policies and practices under our Financial Management Assessment (FMA) methodology;

• Strong budgetary performance, with operating surpluses in the general fund and at the total governmental-fund level in fiscal 2019;

• Very strong budgetary flexibility, with available fund balance in fiscal 2019 of 53% of operating expenditures, coupled with the flexibility to raise additional revenue despite commonwealth-wide tax caps;

• Very strong liquidity, with total government available cash at 61.0% of total governmental-fund expenditures and 6.8x governmental debt service, and access to external liquidity we consider strong;

• Adequate debt-and-contingent-liability position, with debt service carrying charges at 9.0% of expenditures and net direct debt that is 56.5% of total governmental-fund revenue, as well as low overall net debt at less than 3% of market value and rapid amortization, with 81.9% of debt scheduled to be retired within 10 years, but significant medium-term debt plans and a large pension and other-postemployment-benefit (OPEB) obligation; and

• Strong institutional framework score.

Very strong economy
We consider Cambridge's economy very strong. The city, with an estimated population of 113,682, is in Middlesex County, directly across the Charles River from Boston. It is in the Boston-Cambridge-Newton MSA, which we consider to be broad and diverse. The city has a projected per capita effective buying income of 173% of the national level and per capita market value of $483,347. Overall, market value grew by 12.2% over the past year to $54.9 billion in 2020. The county unemployment rate was 2.7% in 2018.

Very strong management
We view the city's management as very strong, with strong financial policies and practices under our FMA methodology, indicating financial practices are strong, well embedded, and likely sustainable.

We believe Cambridge's greatest credit risks are threats to its vibrant and growing economy. In particular, rising sea levels from climate change could directly affect taxable properties. The city has a history of proactively addressing future challenges, and, to this end, management maintains a number of long-term plans that generate shorter term decision-making.

The city is currently developing a "Climate Change Preparedness & Resilience (CCPR) Plan," described by management as its blueprint for reducing greenhouse gas emissions and addressing flood risk and storm water management. Management expects to complete this plan in the spring of 2020. In addition, Cambridge conducted a "Climate Change Vulnerability Assessment" to identify its specific vulnerabilities and inform the CCPR. Finally, the city has also undertaken efforts to reduce residential trash disposal, plant and maintain new trees throughout the city, and expand curbside organics collection.

While these plans outline long-term roadmaps for a number of major challenges, the city's annual budget development process supports the overarching goals. The annually updated five-year financial plan and five-year CIP outline immediate fiscal challenges while determining and prioritizing immediate capital needs. Management uses historical trend analysis to develop line-item and departmental expenditure and revenue assumptions.

Fitch Ratings

Summary
The city's 'AAA' general obligation bond rating and Issuer Default Rating reflect Fitch's expectation for Cambridge to maintain a high level of financial flexibility through economic cycles, consistent with a history of strong operating performance and budget controls. The ratings further reflect the city's wealthy and growing property tax base, moderate expenditure growth and its demonstrated ability to reduce expenditures during economic downturns.

Fitch expects long-term liabilities to remain low based on the city's capital needs, very rapid pace of principal amortization, continued growth in economic resources, and a practice of fully funding actuarially determined pension contributions.

Key Rating Drivers

• Revenue Framework: 'aaa'
Revenues are derived primarily from property taxes. Total general fund revenue growth of more than 5% annually over the past 10 fiscal years has exceeded both U.S. GDP and CPI for the same period reflective of strong growth in Cambridge's economy and tax base. The city maintains significant excess levy capacity under the state's Proposition 2 1/2 law and Fitch expects revenue growth to remain strong.

• Expenditure Framework: 'aa'
The natural pace of spending growth is expected by Fitch to be in line with to below natural revenue growth over time. Carrying costs for debt and retiree benefits claim a moderate proportion of governmental spending. Fitch expects carrying costs to remain moderate even with future debt issuances and annual increases in other-post employment benefit (OPEB) and pension contributions. The city maintains strong legal control over headcount and other key employment terms as provided by state statute.

• Long-Term Liability Burden: 'aaa'
Cambridge's combined direct debt, net of water and sewer debt paid from user charges, and Fitch-adjusted net pension liabilities (NPL), are low at approximately 7.5% of residents' personal income. Fitch anticipates Cambridge's long-term liability burden will remain in line with the 'aaa' assessment based on expected growth in the city's population and personal income, future debt plans, and a rapid pace of principal amortization. OPEB liabilities compared to personal income are somewhat high based on a conservative interest rate assumption, but management is actively managing these costs.

• Operating Performance: 'aaa'
Careful expenditure management combined with moderate tax levy increases and conservative financial forecasting has led to the maintenance of considerable reserves over the past decade. Fitch expects the city will continue to demonstrate a high level of financial resilience and gap-closing ability throughout economic cycles.

Rating Sensitivities

• Financial Management Practices: Fitch expects management to continue to manage growth in expenditures in line with future revenue growth while maintaining its financial flexibility.

As noted earlier, the City Council and staff can be justly proud of our sound fiscal policies with the continued affirmation of our triple A ratings and the positive impact it has on our residents.

Very truly yours, Louis A. DePasquale, City Manager

8. A communication transmitted from Louis A. DePasquale, City Manager, relative to an update on the proposed Eversource substation on Fulkerson Street.
Placed on File

Mar 2, 2020
To the Honorable, the City Council:

I am pleased to provide you with an update on the proposed Eversource substation on Fulkerson Street.

Following months of discussions initiated by the City, Eversource, Boston Properties, and Alexandria Properties have reached a proposal that will lead to the relocation of the substation out of the East Cambridge neighborhood into the MXD district. I want to thank Eversource, Boston Properties (BXP), Alexandria Properties, and Cambridge Redevelopment Authority (CRA) for joining us in hearing the concerns of the community and for investing significant time and efforts to identify an alternative site that will meet the future electric needs of the City. I also want to thank Robert Reardon, who was working on behalf of the City Manager’s Office, for facilitating discussions between the private parties involved in this proposal.

As you will see in the attached report from Mr. Reardon, “the proposed relocation site is on a portion of Boston Properties Blue Garage, which runs between Binney Street and Broadway, and will need to be completely demolished for construction of the substation and replacement parking. This process will be led by the Cambridge Redevelopment Authority which will ensure that it can be designed to have minimal impact in the Kendall Square Urban Renewal Plan (KSURP). The cost of redeveloping this site is extremely high and will require zoning relief to offset these costs. It is anticipated based upon the projected costs that two 400,000 square foot commercial buildings would need to be approved under the KSURP which is similar in total size to the most recent zoning change in the MXD zoning district.”

Additionally, Tom Evans, Executive Director of the CRA, has expressed support for this proposal in a memo submitted to me on February 26, 2020. Mr. Evans notes in this communication that “In addition to the state's regulatory process for the siting of the substation, the alternative CRA site would require an amendment to the KSURP, new MXD zoning, and revisions to the development agreement with BXP in order to allow for the additional development required to finance this alternative location. It is expected the MXD and KSURP amendments will be similar in scope to the MXD zoning amendments approved by the City in 2015 after a months-long public process.”

I want to thank the City Council for their leadership on this issue over the past months as the private parties involved investigated all available options to relocate the proposed substation from Fulkerson Street. Finally, I want to thank the residents of East Cambridge and Wellington-Harrington, especially the stakeholder group that I have been meeting with, for their patience, input, trust, and advocacy.

The fact that the City has been able to facilitate private parties reaching an agreement to relocate the substation from Fulkerson Street into the MXD district is a significant achievement. I want to express my sincere thanks for the patience and cooperation demonstrated by all parties involved in this process.

Ultimately for this project to move forward, the needed zoning amendment to the MXD district will require City Council approval.

Very truly yours, Louis A. DePasquale, City Manager

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Feb 27, 2020
Louis A. DePasquale
City Manager
Cambridge City Hall
795 Massachusetts Avenue, Cambridge/ MA 02139
RE: 135 Fulkerson Street Site

Dear City Manager DePasquale,

After a long complicated process I am pleased to report that an alternative site has been located for the relocation of the proposed Ever source substation. This site selection is subject to several additional regulatory and zoning approvals to be finalized which will include public engagement. This alternative site proposal could not have come together without a unique public and private cooperative effort which will ultimately lessen the impact on the residential neighborhood and the public school students who would have abutted the original site at 135 Fulkerson Street site.

This process which began approximately one year ago with a series of meetings with stakeholders to determine what, if anything, could be done to relocate the proposed substation to an alternative site. In cooperation with the business community numerous sites were vetted to determine if they would be feasible for a relocation. The possibility of having two smaller sites was also investigated and determined to be more adverse than one site.

This process was necessarily long because of the requirements that a new potential site be feasible for construction of the substation which has now been determined thanks to engineering completed by Eversource Energy. This proposed substation will be able to meet the electric infrastructure needs of the City of Cambridge and to meet carbon reduction goals. The patience shown by the stakeholders and the City Council has allowed this process to proceed in a manner which offers a realistic solution. The Cambridge Redevelopment Authority, Alexandria Properties/ Boston Properties and Eversource Energy have all agreed to be a part of this complicated plan which is highlighted below as well as outlined in more detail from the participants.

• The proposed relocation site is on a portion of Boston Properties Blue Garage/ which runs between Binney Street and Broadway/ and will need to be completely demolished for construction of the substation and replacement parking. This process will be led by the Cambridge Redevelopment Authority which will ensure that it can be designed to have minimal impact in the Kendall Square Urban Renewal Plan (KSURP). The cost of redeveloping this site is extremely high and will require zoning relief to offset these costs. It is anticipated based upon the projected costs that two 400/000 square foot commercial buildings would need to be approved under the KSURP which is similar in total size to the most recent zoning change in the MXD zoning district.

• Eversource Energy has conducted enough testing and engineering to determine that the alternative site would be feasible. Given the regulatory requirements^ the cost of the relocated site must be reasonable as an alternative.

• In order to offset the additional cost to be incurred by Boston Properties, zoning relief to provide additional development capacity is essential to make this project possible.

• Zoning relief will be needed to temporarily accommodate the displaced parking from the Blue Garage which is under contract by Boston Properties to Biogen. Alexandria has entered into a MOA with Boston Properties to provide interim parking and other parking related costs for the displaced vehicles from the Blue Garage during reconstruction.

• Provided the necessary approvals are granted Eversource would sell the existing Fulkerson Street site to Alexandria Properties with funds being used to purchase the Boston Properties site.

• As set forth in the most recent version of their Commitment Letter to the City Council, Alexandria Properties will convey the Fulkerson Street parcel to the City after it is acquired from Eversource.

• Binney Street (Pork Chop) Park will not be impacted as part of the relocation.

If you have any questions or require additional information please do not hesitate to contact me.

Sincerely,
Robert P. Reardon

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CAMBRIDGE REDEVELOPMENT AUTHORITY
cambridgeredevelopment.org

Feb 26, 2020
Louis A. DePasquale, City Manager
Cambridge City Hall
795 Massachusetts Avenue, Cambridge, MA 02139

Dear Mr. City Manager,
The Cambridge Redevelopment Authority (CRA) has begun to work with designers and engineers from Boston Properties (BXP) and Eversource to understand alternative site options for the Eversource substation originally planned for Fulkerson Street. The technical teams have been working diligently to test the feasibility of an alternative site that utilizes the Blue Parking Garage parcel between Binney Street and Broadway in the Kendall Square Urban Renewal Plan (KSURP). The CRA is supportive of the effort to relocate the substation if, and only if it can be designed in a manner that has minimal impact to the KSURP area and, in particular, to the long-awaited development of previously permitted housing in the MXD district.

In addition to the stale's regulatory process for the siting of the substation, the alternative CRA site would require an amendment to the KSURP, new MXD zoning, and revisions to the development agreement with BXP in order to allow for the additional development required to finance this alternative location, it is expected the MXD and KSURP amendments will be similar in scope to the MXD zoning amendments approved by the City in 2015 after a months-long public process.

in connection with this proposal, the CRA will evaluate opportunities to further improve and enliven the northern block of the MXD district, and enhance other elements of the public realm in the KSURP. We will undertake a collaborative planning and urban design process with City departments as has been conducted recently through the Infill Development Concept Plan approvals. The CRA looks forward to engaging with the community to discuss the proposed redesign of the northern MXD block, and will begin planning a series of public meetings in the immediate future.

Sincerely,
Thomas Evans, Executive Director

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Feb 27, 2020
Louis A. DePasquale
City Manager
City of Cambridge
795 Massachusetts Avenue
Cambridge, Massachusetts 02139

Dear City Manager DePasquale:
As you are aware, there is an urgent need for additional electric infrastructure to maintain the reliable and safe delivery of electricity to the City of Cambridge's residents, businesses and institutions and to enable the City to meet its aggressive carbon reduction goals in the future. Eversource has been exploring various solutions to meet this demand and, in 2016, secured a parcel of land at 135 Fulkerson Street in Cambridge as a potential site for a new substation. Based on feedback from the city and the community, approximately eight months ago, Eversource began to engage property owners to determine if there was a more desirable site to locate the substation.

After a series of discussions and meetings with multiple parties, including your office, Cambridge City Councilors, the Cambridge Redevelopment Authority, and community stakeholders, we have preliminarily identified a parcel of land, currently owned by Boston Properties within the Kendall Square MXD District, on which the proposed Eversource substation could potentially be located. The parcel is currently the site of a structured parking facility between Broadway and Binney Street known as the "Blue Garage." We can also report that thus far, while our joint feasibility analysis is ongoing, preliminary engineering efforts have identified no terminal impediments to the potential relocation. From an Eversource perspective, we can't stress enough that while the site has potential, the Company will require certain assurances to make this a reality, including the following:

• Boston Properties provides adequate space within the parcel to, not only install ail the electrical substation infrastructure and associated the power line duct banks, but to ensure the ongoing safe operation and maintenance of such equipment;

• the City works collaboratively and expeditiously with Eversource to identify and provide adequate space beneath existing city streets to install and maintain 8-10 high-voltage transmission lines that connect the new substation to the electric grid at existing substations in Cambridge and other nearby municipalities including the potential relocation of City utilities;

• the City works collaboratively and expeditiously with Eversource to provide adequate space for as many as 50 lower voltage distribution lines that distribute the electricity to residences and businesses in East Cambridge;

• the City supports and facilitates the location and the design of the proposed substation and the power lines in all permitting proceedings including in local and state forums;

• the City recognizes the potential need for an interim measure to maintain reliable service in Cambridge prior to energizing the substation and lines and agrees to similarly work collaboratively and expeditiously to permit an additional transformer and distribution lines; and

• Eversource does not incur significant additional costs as a result of the relocation. Although the concept is still in its preliminary stages, we are pleased that we have been able to work together to identify a potential alternative location for the Eversource substation currently planned to be located at Fulkerson Street. Eversource has agreed to pause engineering work on the Fulkerson Street location and will continue to do so provided that there is community support for the alternative Blue Garage location. We look forward to working expeditiously with all stakeholders to address the logistical, technical, functional, and permitting needs to advance this concept toward a viable project.

Very truly yours,
Jim Hunt

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Feb 26, 2020
Louis A. DePasquale
City Manager
City of Cambridge
795 Massachusetts Avenue
Cambridge, Massachusetts 02139

Dear City Manager DePasquale:
This letter is to confirm in response to a request from your office that Boston Properties has been working with Eversource over the past eight months to identify a parcel of land within the MXD District to which the proposed Eversource substation could potentially be relocated from the 135 Fulkerson Street site in Cambridge. The parcel is currently the site of a structured parking facility between Broadway and Binney Street known as the "Blue Garage," and has already been slated for redevelopment as part of a master planning process that has taken place over the past several years through approvals issued by the Planning Board and the Cambridge Redevelopment Authority (CRA) In order for the site to be developed for the proposed substation, Boston Properties would have to demolish the approximately 1000-space Blue Garage in its entirety and replicate this parking underground, at significant cost to the company. Additional construction work will also be necessary to prepare the site to accommodate the substation.

In addition to the aforementioned construction activity, it will also be necessary for the existing zoning for the MXD District to be amended in order to allow for more modifications to the Special Permit PB#315 issued by the Planning Board in 2017 approving an Infill Development Concept Plan for this parcel. Similarly, approvals from the CRA will be required to modify portions of the Kendall Square Urban Renewal Plan and the existing Development Agreement between the CRA and Boston Properties.

The design, engineering and construction costs associated with this relocation effort are considerable. In order to make this project economically feasible, we have engaged in preliminary discussions with the CRA about the filing of a zoning petition to increase the existing GFA thresholds in the MXD District similar to the petition filed by them in 2015 that created the Infill Development Concept Plan. The intent of the zoning petition would allow for the future construction of two commercial buildings of approximately 400,000 square feet each and to facilitate the phased development of the Eversource project and the Boston Properties project.

We should also acknowledge the efforts and commitments of the team at Alexandria Real Estate Equities to arrange for temporary parking for our tenants following the demolition of the Blue Garage and during the construction period of the relocated substation, and for their commitment to purchase the Eversource Fulkerson Street parcel to facilitate the relocation transaction.

Although this project is still in its preliminary stages, we are pleased to have been able to offer our site as a proposed alternative to Fulkerson Street and we look forward to working with all of the stakeholders to continue to advance this plan.

Very truly yours,
BOSTON PROPERTIES LIMITED PARTNERSHIP
Name: David C. Provost
Title: Senior Vice President, Development

COMMUNICATIONS AND REPORTS FROM CITY OFFICERS
1. A communication was received from Mayor Sumbul Siddiqui, transmitting information regarding preserving the affordability of the Fresh Pond Apartments.   Mayor Siddiqui
Placed on File

To: Cambridge City Council
From: Sumbul Siddiqui, Mayor
Date: Feb 27, 2020
Subject: Preserving affordability at Fresh Pond Apartments to the Honorable, the City Council:

It is exciting to be moving forward with the vital preservation work to retain the affordability of Fresh Pond Apartments, located at 362-364 Rindge Avenue through the appropriation of $15,000,000 from Free Cash to the Affordable Housing Trust. The 504 apartments, known to those living there (and those who grew up there such as myself) as “Rindge Towers”, are home to individuals and families who represent an important part of the community and culture of North Cambridge and the city at large.

This preservation effort brings great relief to hundreds of families with whom I have been in constant contact through community meetings and office hours, as they waited to hear if they would be faced with the impossible task of leaving their homes, and ultimately, their schools, healthcare resources, places of worship, and workplaces.

I am pleased with the progress the City has made on preserving the affordability of Fresh Pond Apartments and I will continue my commitment to keeping our residents informed as we enter the final phases of the process. Attached is a one-page summary prepared by my office last term that will be updated to reflect this exciting news.

I look forward to working with everyone as we embark on the final phase of preserving the affordability at Fresh Pond Apartments.

Sincerely,
Mayor Siddiqui

O-4     Mar 2, 2020
VICE MAYOR MALLON
MAYOR SIDDIQUI
COUNCILLOR ZONDERVAN
COUNCILLOR CARLONE
WHEREAS: At the Economic Development and University Relations Committee Hearing that was held on Apr 30, 2019, the Committee discussed strategies to address vacant storefronts; and
WHEREAS: The City Council later adopted a Policy Order on June 24, 2019 asking the City Manager to work with the Community Development Department, the Assessor’s Office, and the City Solicitor’s Office to develop a Vacant Storefront Registration Policy; and
WHEREAS: The City has a vested interest in mitigating the effects of long-term storefront vacancies by creating a Vacant Storefront Registration Policy, as vacant storefronts are harmful to the vitality of our local Squares and business districts, and can hurt other small retailers and restaurants, while negatively impacting customer experience; and
WHEREAS: According to the Retail Strategy of the City of Cambridge, published in August 2017, the retail vacancy rate is expected to increase in the coming years, so it is crucial that the City Council begins to address this issue before the situation becomes dire for our local business community; now therefore be it
ORDERED: That the City Manager be and is hereby requested to confer with the Economic Development Division of the Community Development Department to prepare a report on any steps it has taken to work towards developing a Vacant Storefront Registration Policy; and be it further
ORDERED: That the City Manager be and hereby is requested to report back during the Economic Development and University Relations Committee on the matters above by its next hearing to be scheduled this spring.

O-5     Mar 2, 2020  Amended
COUNCILLOR ZONDERVAN
COUNCILLOR SIMMONS
COUNCILLOR SOBRINHO-WHEELER
MAYOR SIDDIQUI
WHEREAS: The City Council recognizes that Cambridge is a city of great diversity with a rich cultural heritage; and
WHEREAS: The City Council recognizes the history of racism in our country which has led to ongoing disparities in education, job attainment, housing, public health, and many quality of life indicators for people of color; and
WHEREAS: The City Council recognizes that racial inequities have long been ingrained and institutionalized in the policies and practices of many agencies, governmental and otherwise; and
WHEREAS: The City Council recognizes that census and neighborhood profile data from the city shows that the black population of the Port has declined by 7.4% since 2013; and
WHEREAS: The City Council recognizes that racial disparities persist in the educational outcomes of children attending Cambridge Public Schools, as measured by MCAS results, including a 2019 grade 3 literacy rate of 44% for black students and 80% for white students; and
WHEREAS: The City Council recognizes that the most recent data available from the Cambridge Health Alliance shows significant racial disparities in health outcomes for black men in the city, specifically a higher overall death rate, a higher death rate due to cancer, a higher hospitalization rate due to diabetes, and a higher HIV infection rate; and
WHEREAS: The City Council recognizes that there is only one black-owned liquor license in the entire city, and that black and brown-owned businesses are an unacceptably low percentage of total businesses in the city, representing at most 33 out of 136, or less than 25% of the businesses in the self-reported diversity directory; and
WHEREAS: The City Council recognizes that issues of racial equity must be addressed proactively and deliberately in the course of decision-making, and past City Councils have actually discussed the need for the City to proactively view all decision-making through the lens of asking how each decision might impact the City’s minority communities; and
WHEREAS: The City Council recognizes the need to unpack seemingly neutral policies and practices to determine whether they are contributing to racial inequity or improving racial equity; and
WHEREAS: The City Council is interested in exploring and instituting methods that have worked in cities around the country to update, eliminate, or create government policies, practices, and programs specifically to dismantle existing racial disparities; and
WHEREAS: The City Council acknowledges that it might not always be clear what the potential impacts of their decisions will be on racial equity, but is committed to applying a racial equity lens in a systematic way in its decision-making processes with the goal of continuing to build a more inclusive, equitable, vibrant, and healthy community for all Cambridge residents; now therefore be it
RESOLVED: That the City Council go on record committing itself to systematically and deliberately applying a racial equity lens in its decision-making henceforth; and be it further
ORDERED: That the City Manager be and hereby is requested to direct staff to begin including a “Racial Equity Impact Statement” on all relevant agenda items including, but not limited to, appointments, appropriations, ordinances, legal opinions, policies, procedures and regulations, beginning on Mar 9, 2020.

O-6     Mar 2, 2020
MAYOR SIDDIQUI
COUNCILLOR CARLONE
COUNCILLOR MCGOVERN
COUNCILLOR SIMMONS
WHEREAS: The creation and preservation of affordable housing continues to be a top priority of the Cambridge City Council, as many residents continue to struggle with continually rising housing costs in the city; and
WHEREAS: The City Council has increased funding for the Affordable Housing Trust in recent years to provide the Trust needed resources to carry out its mission of creating and preserving affordable housing, and has expressed interest in identifying new sources of funding for the Affordable Housing Trust; and
WHEREAS: There is now legislation before the General Court which would establish flexible local options that allow for cities and towns to charge fees on the transfer of real estate to generate funding for municipal affordable housing trusts; and
WHEREAS: Legislation before the General Court includes H.2457 “An Act empowering cities and towns to impose a fee on home sales over one million dollars to support affordable housing”, and H.2552 “An Act establishing local options for generating housing monies” in addition to pending consensus legislation drafted by the sponsors of H.2552 and H.2457; and
WHEREAS: The adoption of such legislation which would establish provisions through which the City Council might establish real estate transfer fees in Cambridge if that were advisable to increase funding for the Affordable Housing Trust; now therefore be it
RESOLVED: That the City Council go on record in support of legislation which would allow for the adoption of fees on the transfer of real estate for use in creating new funding for affordable housing trusts, including H.2457, H.2552, and the consensus bill; and be it further
RESOLVED: That the City Clerk be and hereby is requested to forward suitably engrossed copies of this resolution to the Cambridge Legislative Delegation.