Agenda packet — Daly City City Council, March 27, 2023 (part 2 of 2)

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/25/26/27/i255/49/44/42/i255/36/43/44/45/i255/26/43/46/47/45 /48/40/50/53/52/68/57/69
/25/26/27/i255/31/54/54/55/i255/26/43/46/47/45
/48/40/56/57/52/68/57/69
/25/39/27/51/58/59/i255/36/43/44/45/i255/60/54/61/61/62/i255/26/43/46/47/45 /48/40/40/49/52/68/51/57/69
/49/52/68/56/69 /51/40/52/68/57/69/48 /51/49/52/68/51/51/69/48 /51/57/52/68/49/69/48 /70/39/33/29/29/70/32/37/26/67/i255/31/33/33/36
/25/26/27/i255/32/30/31/38/37/39/35
/71/72/73/74/75/76/77/78/73/79
/10/80/81/i255/82/83/64/10/84/85/86/80/64/87/i255/82/83/88/89/83/88/81/86/80/83/64 /90/20/91/17/i255/92/80/10/10/80/83/64/i255/10/86/88/1/1/86 /10/81/64/i255/93/88/81/64/82/80/10/82/83/i255/82/81/i255/94/90/19/19/65 /86/1/85/16/i255/0/90/19/91/2/i255/95/90/19/96/19/65/94/65/i255/18/i255/93/81/97/16/i255/0/90/19/91/2/i255/98/90/94/96/19/65/91/65 /99/100/101/102/103/104/105/i255/107/108/109/103
/86/110/9/5/9/i255/111/13/11/112/113/9/14/6/5/i255/4/114/9/i255/115/114/13/115/9/114/6/116/i255/13/117/i255 /10/80/81/i255/82/83/64/10/84/85/86/80/64/87/i255/4/14/111/i255/4/114/9/i255/14/13/6/i255/6/13/i255 /118/9/i255/115/114/13/111/112/11/9/111/i255/11/110/4/14/119/9/111/i255/13/114/i255/11/13/115/12/9/111/i255 /120/12/6/110/13/112/6/i255/6/110/9/i255/9/121/115/114/9/5/5/9/111/i255/120/114/12/6/6/9/14/i255 /11/13/14/5/9/14/6/i255/13/117/i255/10/80/81/i255/82/83/64/10/84/85/86/80/64/87/i255 /1/64/87/80/64/1/1/88/10/96/i255/i255
/122/123/124/125/126/i255/128/129
/122/130/131/132/133/126/i255/128/129
/122/124/134/130
/135/136/128/i255/126/136/137
/131/138/130/130/134/i255/126/136/137
/40/40/68/51/139/50/140
/30/45/141/38/45
/31/45/38/45
/142/143/144/145/i255/131/146/147/147/132/148/124/126/i255/124/148/130 /57/50/149/57/50/149/40/57/40/40
/30/68/50/45/51/25/26/27/i255/150/i255/25/39/27
/26/151/58/59/68/152/46/58/59/i255/66/46/59/153/54/41/58 /154/155/103/103/105/i255/105/156/105/157/103
/122/124/147/129/i255/158/132/134/129/159/i255/158/124/i255/160/145/161/142/162 /122/124/134/130 /51/40/149/40/49/149/40/57/40/40
/132/131/131/146/130/131/i255/163/i255/123/130/148/132/131/132/136/126/131 /51/40/49/50/63/56/140/53/139 /51 /57
/51/57/139/53/140/56/63/50/49/40/51
/30
/164
/29
/67
/26
/36
/36
/26
/67
/29
/164
/30

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January 23, 2023

Mr. Nelson Tong
c/o Crime Watch Systems, Inc.
1320 Marin Street
San Francisco, CA 94124

Re: Parking Study for the Proposed Residential Development Located at 1784 Sullivan Avenue in Daly City, California

Dear Mr. Tong:

Hexagon Transportation Consultants, Inc. has completed a parking study for the proposed residential development at 1784 Sullivan Avenue in Daly City, California. We understand that the project proposes 14 dwelling units with 14 parking spaces. We further understand that the project needs a parking variance from Daly City.

Parking Analysis
Hexagon has conducted extensive residential parking occupancy counts at existing apartment and condominium projects in the following cities: San Jose, Mountain View, Cupertino, San Mateo, Palo Alto, Foster City, Redwood City, Los Altos, Santa Clara, and Sunnyvale.

The number of units for each apartment/condominium complex ranged between 103 and 2,762 units. The number of bedrooms per unit ranged in size from 1-bedroom to 4-bedroom units. Table 1 shows the names and locations of apartments and the results of the parking counts. These counts were conducted between midnight and 2AM, which is typically when parking demand is at its highest in residential complexes. The table shows the number of occupied parking spaces at each apartment complex. In every case the parking supply exceeded the number of occupied spaces, i.e., there were vacant spaces. Therefore, we can assume that the maximum parking demand was counted.

Hexagon developed a parking ratio based on the number of units and number of bedrooms. The ratio of occupied spaces per bedroom has less variation. This is due to the variance in the number of bedrooms that each apartment complex could have for each unit. To provide adequate parking, the parking demand ratio was determined on the number of spaces occupied during the highest parking demand per total number of bedrooms. The results show a total of 20,766 total bedrooms with 16,681 occupied parking spaces. Thus, the average parking demand ratio is 0.80 occupied spaces per bedroom.

Based on the data, the 14 parking spaces at 1784 Sullivan Avenue would support a development with 18 bedrooms.

We appreciate the opportunity to provide this parking study. If you have any questions, please do not hesitate to call.

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Mr. Nelson Tong
January 23, 2023

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Sincerely,
HEXAGON TRANSPORTATION CONSULTANTS, INC.

Gary K. Black
President

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Mr. Nelson Tong
January 23, 2023

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Table 1
Bay Area Apartments Parking Demand

Table 1 (continued)
Bay Area Apartments Parking Demand

All Sites
Average
River-
view North Park
The
Shadows
Apartments
Central Park
Apartments
Park Place
Apartments
North Park
Apartments
Avalon
Mountain
View
Avalon
Towers on
the Peninsula
Madera
Apartments
1 bedroom units 814 1340 92 68 181 98 117 90 116
2 bedroom units 494 1301 64 204 186 90 75 115 87
3 bedroom units 0 121 24 82 6 0 56 6
4 bedroom units 0 0
Total Apartment Units 13,615 1308 2762 180 354 373 188 248 211 203 Total Bedrooms 20,766 1,802 4,305 292 722 571 278 435 338 290 Bedrooms to units ratio 1.53 1.38 1.56 1.62 2.04 1.53 1.48 1.75 1.60 1.43 Occupied Parking Spaces 16,681 1,570 3,265 219 490 339 215 301 247 206 Occupied spaces to units ratio 1.23 1.20 1.18 1.22 1.38 0.91 1.14 1.21 1.17 1.01 Occupied spaces to bedrooms ratio 0.80 0.87 0.76 0.75 0.68 0.59 0.77 0.69 0.73 0.71 San Jose Mountain View
San Mateo Palo Alto
Markham
Apartments
Siena
Apartments
Arioso
Apartments
Archstone
Cupertino
Biltmore
Apartments Verandas
The
Metropolitan
Altaire
Apartments
1 bedroom units 259 36 81 145 78 115 5
2 bedroom units 245 92 120 152 93 91 2
3 bedroom units 0 0 0 14 8 12 63
4 bedroom units 0 0 0 0 0 0 33
Total Apartment Units 504 128 201 311 179 120 218 103
Total Bedrooms 749 220 321 491 288 240 333 330
Bedrooms to units ratio 1.49 1.72 1.60 1.58 1.61 2.00 1.53 3.20 Occupied Parking Spaces 575 182 275 385 276 188 305 194 Occupied spaces to units ratio 1.14 1.42 1.37 1.24 1.54 1.57 1.40 1.88 Occupied spaces to bedrooms ratio 0.77 0.83 0.86 0.78 0.96 0.78 0.92 0.59 Cupertino

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Mr. Nelson Tong
January 23, 2023

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Table 1 (continued)
Bay Area Apartments Parking Demand

Weekday Weekend Weekday Weekend Weekday Weekend Weekday Weekend Weekday Weekend 1 bedroom units 129 129 114 114 118 118 85 85 502 502
2 bedroom units 160 160 145 145 104 104 88 88 494 494
3 bedroom units 0 0 0 0 0 0 0 0 4 4
4 bedroom units 0 0 0 0 0 0 0 0 0 0
Total Apartment Units 289 289 259 259 222 222 173 173 1000 1000 Total Bedrooms 449 449 404 404 326 326 261 261 1502 1502 Bedrooms to units ratio 1.55 1.55 1.56 1.56 1.47 1.47 1.51 1.51 1.50 1.50 Occupied Parking Spaces 353 364 317 314 274 271 212 219 1,317 1285 Occupied spaces to units ratio 1.22 1.26 1.22 1.21 1.23 1.22 1.23 1.27 1.32 1.29 Occupied spaces to bedrooms ratio 0.79 0.81 0.78 0.78 0.84 0.83 0.81 0.84 0.88 0.86 Park Central Mansion Grove
Santa Clara
Hearth North Hearth South Cobalt
The Plaza,
Foster City
Township,
Redwood
City
Colonnade,
Los Altos
Weekday Weekend
1 bedroom units 150 71 100 550 550
2 bedroom units 138 58 67 216 216
3 bedroom units 19 3 0 0 0
4 bedroom units 0 0
Total Apartment Units 307 132 167 766 766
Total Bedrooms 483 196 234 982 982
Bedrooms to units ratio 1.57 1.48 1.40 1.28 1.28
Occupied Parking Spaces 442 140 191 882 868
Occupied spaces to units ratio 1.44 1.06 1.14 1.15 1.13 Occupied spaces to bedrooms ratio 0.92 0.71 0.82 0.90 0.88 Sunnyvale
Spruce Apartments

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Agenda
City Council Water Subcommittee Meeting
March 20, 2023
•Introductions
oCity Council
▪Vice Mayor Juslyn Manalo – in attendance
▪Councilmember Dr. Rod Daus-Magbual – in attendance
oStaff
▪City Manager Thomas J. Piccolotti – in attendance
▪City Attorney Rose Zimmerman – in attendance
▪Director of Finance Tim Nevin – in attendance
▪Director of Water and Wastewater Resources Joshua Cosgrove – in attendance
▪Senior Management Analyst Anthony Tofiga – in attendance ▪Acting Assistant Director of Water and Wastewater Resources Kaila DeFries – in attendance
oFinancial Consultants
▪John Farnkopf – HF&H Consultants – in attendance
▪Geoff Michalczyk – HF&H Consultants – in attendance
•Daly City Draft Water Rate Study and Model - Joshua Cosgrove gave an introduction and brief history on the current and previous Water Rate Studies
•PowerPoint Presentation by HF&H - John Farnkopf and Geoff Michalczyk presented the Water Rate Study and Model to the Water Subcommittee and recommended 4% rate increases in each of the next 5 fiscal years

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oQuestions and comments were made by Vice Mayor Juslyn Manalo, Councilmember Dr. Rod Daus Magbual, and City Manager Thomas J.

Piccolotti
oAnswers were provided by John Farnkopf, Geoff Michalczyk, and Joshua Cosgrove
oUnder the direction and guidance of the Water Subcommittee 1) More detail will be provided on the Capital Improvement Program 2) Additional details on what the ratepayers are paying for & why 3) Discussion of the recent storms and damage to water
infrastructure
•Discussion of Proposition 218 Process and Hearing Dates oCity Council Meeting 4/10/23
oMail Prop 218 Notices by 4/28/23
oPublic Hearing 6/12/23
oRates Effective 7/1/23
•Vista Grande Project Update – not presented

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Water Rate Study
Preliminary Results
March 20, 2023

CITY OF DALY CITY

WATER SUBCOMMITTEE

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PRESENTATION OUTLINE
• Rate-making Objectives
• Current Rates
• Revenue Requirement Projections
• Capital Improvement Plan
• Debt Service
• Cash Balance Projections
• Preliminary Revenue Adjustments
• Proposed Rates and Customer Impacts
• Sample Bi-monthly Bills
• Comparisons with Neighboring Agencies
• Key Issues
• Next Steps

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RATE-MAKING OBJECTIVES
• Update rates to provide sufficient, reliable revenue
• Fund projected operating and capital costs
• Reflect latest SFPUC wholesale water cost projections • Maintain debt coverage ratio of at least 1.25 times
• Meet reserve requirements
• 10-year planning period
• Set rates for up to the next five years
• Confirm that current rate structure does not exceed the cost of service

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CURRENT RATES
• Two Components (billed bi-
monthly)
• Base charge increases with size of
meter
• Three-tier unit charge based on actual
water use (per unit or hcf = hundred
cubic foot = 748 gallons)
• Current rate structure in effect
since FY 2018-19
• Most recent rate increase of 9.5%
effective 7/1/2022

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REVENUE REQUIREMENT PROJECTIONS
• Annual revenue shortfalls
are covered by rate
increases and reserves
• Current Revenue includes:
rate revenue, connection
fee revenue from growth,
non-operating revenue,
interest revenue
• Water Supply cost based
on SFPUC projections and
City pumpage
• Contribution to Capital
Reserve for pay-as-you-go
capital projects

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CAPITAL IMPROVEMENT PLAN
Includes pay-as-you-go (PAYGo) projects funded from capital reserves

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DEBT SERVICE
• Current debt service
• Series 2012 Refunding Bonds fully retired in FY 2023-24 • No debt service in FY 2024-25 and FY 2025-26
• City considering debt service
• $40 million Citrus Pump Station
• Potential issuance in FY 2026-27
• 30-year term at estimated 4.0% interest
• $2.3 million annual debt service

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CASH BALANCE PROJECTIONS
Reserves drawn down to target balance and then stabilized by FY 2027-28 with series of revenue increases

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5-YEAR RATE ADJUSTMENT SUMMARY

PRELIMINARY REVENUE ADJUSTMENTS
• Current rates reflect 9.5% rate adjustment in FY 2022-23 • Revenue generated from rates projected to increase 4.0% in each of the next five years
• Adequate debt coverage through planning period with rate adjustments • Inflationary revenue increase (2.0-3.0%) from FY 2028-29 through FY 2032-33 (not shown in table)

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5-YEAR RATE ADJUSTMENT SUMMARY

PROPOSED RATES
• Proposed rates maintain current structure based on cost of service • Adjusted across-the-board based on projected 4% increases annually

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SAMPLE BI-MONTHLY BILLS – FY 2023-24

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COMPARISON WITH NEIGHBORING AGENCIES

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KEY ISSUES
• Projected revenue increases
• 4.0% annually through FY 2027-28
• Inflationary increases beginning FY 2028-29
• Reserves drawn down $10 million but remain above target • Rates adjusted across-the-board to maintain cost of service • No change in structures of base charge or unit charges • SFPUC wholesale rate pass through adjustment
• Annual adjustments as needed to track actual SFPUC wholesale rate • Rate adoption period
• As many as five years up to FY 2027-28
• Factors affecting rate adoption
• Timing for potential Citrus Pump Station debt issuance

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Questions & Discussions

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NEXT STEPS
• City Council Meeting 4/10/2023
• Mail Prop 218 Notices by 4/28/2023
• Public Hearing 6/12/2023
• Effective Date 7/1/2023

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Daly City City CouncilMarch 27, 2023

Daly City City Council
March 27, 2023