o The addition of a neutral third-party contractor for meter maintenance/data The agreement provides an incentive for Hillsborough to reduce infiltration and inflow and thereby reduce capacity requirements. The installation of a new meter in Hillsborough will provide reliable data for the look back “true up”. As projected, if the Town meets the conditions of the “look back” at 5 years with a maximum flow of 4.8 mgd and a blended 3.5% interest rate (the project has several layers of debit financing) over 30 years, the total payments would be a maximum of $47,715,870.
BACKGROUND:
The operative agreement among the City of San Mateo, the Town, the County of San Mateo, and the Crystal Springs Sanitary Sewer District for the treatment of sewage dates back to 1989. In it, the parties agreed to base treatment charges on measured flows. Subsequent amendments for certain projects used peak wet weather flow studies as the basis for allocating costs. The 1989 Agreement provides that any capital expenditures over $20,000 must be approved by the parties.
In 2009, the Regional Quality Control Board issued Cease and Desist Order No. R2-2009- 0020 requiring the City, the Town, and the District to take specific action to eliminate the occurrence of sanitary sewer overflows. To comply with the Cease and Desist Order, the City developed a preliminary, 10-year Integrated Wastewater Master Plan (referred to as the Clean Water Program) calling for a major upgrade of the existing WWTP and improvements to the City's collection system. Current estimated costs are $1.0 billion.
The WWTP is co-owned by Foster City/Estero Municipal Improvement District (24.88%) and San Mateo (75.12%) The WWTP is operated by San Mateo's Public Works Department. San Mateo and Foster City have formed a Public Financing Authority to issue bonds and take out loans to pay for the Clean Water Program.
The City of San Mateo did not finalize an amendment to the original 1989 Agreement when it designed the new WWTP. The Town and the City of San Mateo began discussions after the design was essentially complete and capacity had already been determined, and construction started. Initially, the capacity allocated to the Town for capital cost reimbursement purposes was more than twice the Town's historic maximum flow contributions. Over time the parties have reached agreement on a reduced capacity with the 5-year true up based on actual flow over a five-year monitoring period.
The new Wastewater Treatment Plant will significantly increase treatment capacity. The effective treatment capacity of the current plant is 40 million gallons per day (MGD). The new plant is designed to treat wet weather flows up to 78 MGD. Also, a new upstream retention system will create additional effective capacity, allowing for a total of 86.2 MGD of sewage to be treated daily, more than double the current state.
FISCAL IMPACT: The Town’s initial payments will be $2,402,979 per year. If the Town exceeds the 2-hour incident during the five-year period thus exceeding the capacity that has been constructed, the Town will then continue to pay $2,402,979 per year for 30 years. If during the five- -184-
Agenda Staff Report – Hillsborough City Council
June 13, 2022
year “look back” there is no 2-hour incident overages, the Town converts to a lower payment of $1,337,827 per year in Year Six with a credit for additional interest that was paid during the first five years.
The payments in the payment plan will be adjusted periodically to account for changes in the interest rates. The annual payment amount may go up or down, depending on the blended rates.
Additionally, if the Town meets the conditions of the “look back,” there will be a credit against the first five years for the higher payment which would be applied to the annual payments starting in Year Six.
ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment. The proposed action is also exempt on an independent basis pursuant to CEQA Guideline 15301 as the operation and potential minor alteration of an existing public utility. It is exempt on an independent basis pursuant to CEQA Guideline 15303 which allows for the installation of small facilities as a small water meter will be installed as part of the implementation of the agreement.
ATTACHMENTS:
1. Resolution
2. Interim Agreement and Exhibits
PREPARED BY:
Ann Ritzma, City Manager
Mark Hudak, Assistant City Attorney
Paul Willis, Public Works Director
RECOMMENDATION: Adopt the resolution approving and authorizing the City Manager to execute an Interim Agreement with the City of San Mateo for payment of capital costs of clean water program projects.
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RESOLUTION NO. 22-
RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERIM
AGREEMENT WITH THE CITY OF SAN MATEO FOR PAYMENT OF CAPITAL
COSTS OF CLEAN WATER PROGRAM PROJECTS
WHEREAS, the Town of Hillsborough (“Town”) has been a party to the Sanitary Sewage Agreement between the City of San Mateo, Crystal Springs County Sanitation District, and the County of San Mateo since 1955 and entered into an agreement in 1989; and
WHEREAS, the parties have executed three Amendments to the 1989 Agreement to provide for the costs for the design and construction of improvements to the system; and
WHEREAS, the parties, under the Cease and Desists Order and NPDES permit special provisions required a comprehensive capital improvement known as the Clean Water Program; and
WHEREAS, the Town of Hillsborough and the City of San Mateo have agreed to an interim agreement for payment of capital costs of clean water program projects of which the components benefit the Town; and
WHEREAS, the Town acknowledges its responsibility to pay for its share of the capital costs of the Clean Water Program and is willing to make payments toward such capital costs on an interim basis until the fourth amendment is finalized between all parties.
NOW THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby approves and authorizes the City Manager to execute the Interim Agreement with the City of San Mateo for payment of capital costs of clean water program projects.
_______
Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of June 2022, by the following vote of the members thereof:
AYES: Councilmembers:
NOES: Councilmembers:
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ATTACHMENT 1
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
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INTERIM AGREEMENT FOR PAYMENT OF CAPITAL COSTS
OF CLEAN WATER PROGRAM PROJECTS
This Interim Agreement for Payment of Capital Costs of Clean Water Program Projects (this “Interim Agreement”) is entered into by and between the City of San Mateo (the “City”) and the Town of Hillsborough (“Hillsborough”) and is based on the following:
A. The City and Hillsborough are parties to a Sanitary Sewage Agreement entered into as of July 18, 1989 (the “1989 Agreement”). The County of San Mateo (the “County”) and the Crystal Springs County Sanitation District (the “District”) are also parties to the 1989 Agreement. The 1989 Agreement has been the subject of three prior amendments. The 1989 Agreement governs the operation of certain shared facilities for the transportation and treatment of sanitary sewage, allocation of costs for maintenance and improvement of the shared facilities, and allocation of treatment costs.
B. The wastewater generated by the City, Hillsborough, the County, and the District is subject to regulation under a National Pollution Discharge Elimination System permit (the “NPDES permit”).
C. The City, Hillsborough, the County, and the District are subject to Cease and Desist Order R2-2009-0020, which required certain improvements to the shared facilities.
D. The City has begun construction on a comprehensive suite of capital improvements referred to as the “Clean Water Program,” including capital improvements to the sewage treatment plant owned by the City and Foster City and operated by the City (the “Wastewater Treatment Plant” or “WWTP”).
E. The City, Hillsborough, the County, and the District have been negotiating a fourth amendment to the 1989 Agreement to allocate capital costs for the Clean Water Program and provide for the installation of a new meter along Polhemus Road. The fourth amendment has not been finalized. The City, County, and District continue to discuss terms unrelated to Hillsborough which need to be resolved in order to finalize the fourth amendment.
F. Hillsborough acknowledges its responsibility to pay for its share of the capital costs of the Clean Water Program and is willing to make payments toward such capital costs on an interim basis until the fourth amendment is finalized. Hillsborough’s Percentage Share consists of Project Costs incurred by City beginning in October 2014 through the completion of construction of Clean Water Program Projects.
G. The City desires to receive the interim payment of capital costs from Hillsborough and cooperate on other procedures between the two agencies until the fourth amendment can be finalized.
Now, therefore, for good and valuable consideration, the City and Hillsborough agree as follows:
//
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ATTACHMENT 2
AGREEMENT
Section 1. Definitions
The following definitions apply to the terms used in this Amendment. “Clean Water Program” means the suite of capital improvement projects to the City’s sewer collection system and WWTP that are necessary for capacity assurance and reliability, and to meet regulatory compliance requirements contained in the Cease and Desist Order and NPDES permits.
“Clean Water Program Projects” means those projects listed in Exhibit A which provide a benefit to Hillsborough and for which Hillsborough and others will be responsible for a share of capital costs.
“District Meter” means the existing meter located along Polhemus Road owned and maintained by the District which currently measures flows from the Polhemus Trunk Sewer from the City/County/District and into the Crystal Springs/El Cerrito Trunk Sewer. “Effective Date” means the date on which this Amendment is last signed by the parties. “El Cerrito Meter” means the flow meter installed at El Cerrito Avenue near Gramercy Drive, which measures sewage flows contributed by the City/Town/District/County. “Maximum Allowable Flow” means the maximum volume of wastewater, expressed in millions of gallons per day (MGD), that Hillsborough is authorized to convey through the El Cerrito Meter and the Yew/Borel Trunk Sewer. Based on a Technical Memorandum prepared by Jacobs as revised October 12, 2020, the Maximum Allowable Flows for Hillsborough is 7.1 MGD (Including 0.3 MGD for the Yew/Borel Trunk Sewer) for purposes of this Interim Agreement.
“Metered Flows” refers to the calculation of each party’s flows through various meters, as set forth in Section 5 (Calculation of Flows) of the 1989 Agreement. “New Polhemus Meter” means the meter to be installed by Hillsborough at or near Polhemus Road to measure flows coming into the Crystal Springs/El Cerrito Trunk Sewer from the Polhemus Trunk Sewer.
“Percentage Share” means Hillsborough’s share of Project Costs and is calculated by dividing Hillsborough’s Maximum Allowable Flow by the maximum capacity at which a collection system or treatment facility is designed to operate. The Percentage Share for various Project Costs is set forth in Exhibit A, and is subject to adjustment as set forth in this Interim Agreement. The general methodology for calculating the parties’ percentage shares based on Maximum Allowable Flows is illustrated in the excerpts from the Technical Memorandum -189-
attached to this Amendment as Exhibit A-1; provided, that the provisions in the body of this Amendment shall control over the contents of Exhibit A-1. “Project Costs” means all costs incurred by City to develop, finance, implement, and complete construction of Clean Water Program Projects, including costs of construction contracts, professional consultant services, material and equipment procurement, compliance with regulatory requirements and mitigation measures, real property acquisitions, legal services, finance and economic consultants, and staff costs. In addition, Project Costs include any liability the City incurs in performing the work associated with Clean Water Program Projects and any claims adjusting, claims investigation, and costs incurred in defending claims (including reasonable attorney fees) brought by any consultant, contractor or third party for damages arising out of the prosecution of the Clean Water Program Projects. “Project Costs” does not include components of the Clean Water Program which do not benefit Hillsborough and the costs for which are not allocated to it under this Interim Agreement.
Section 2. Interim Payment of Capital Costs
All financial participation requirements established in previous amendments to the 1989 Agreement and the 1989 Agreement remain in force and are not modified by this Interim Agreement.
City and Hillsborough acknowledge that City is responsible for acquiring financing for Clean Water Program Costs, and has done so through a line of credit, a series of sewer revenue bonds issued in 2019, and loans through programs administered under the Federal Water Infrastructure Finance and Innovation Act. City anticipates securing additional funding through additional sewer revenue bonds and/or the Clean Water State Revolving Fund program.
For purposes of calculating its payments under this Interim Agreement, Hillsborough’s Percentage Share of Project Costs shall be:
WWTP Project Costs 7.6%
Dale Avenue Pump Station Projects 8.2%
Underground Flow equalization System Projects 8.2%
Program Management Office 5.7%
Subject to Section 3 below, Hillsborough agrees to reimburse the City for Project Costs incurred in accordance with these percentage shares as follows:
Hillsborough will make an initial payment of $2,415,000.00, which shall be due and payable within 30 days of the Effective Date. Thereafter, Hillsborough shall make quarterly payments in accordance with Exhibit B (Scenario One – Full Flow) until this Interim Agreement is replaced with the fourth amendment or other permanent arrangement. These interim payments shall be in addition to the periodic charges for wastewater treatment services.
Exhibit B amortizes the remaining Project Costs after the initial payment on a 30-year basis.
Hillsborough may prepay its share of the remaining Project Costs, in whole or in part and -190-
from time to time, without penalty. Hillsborough agrees it shall provide the City with at least 30 days advance notice should it intend to prepay any of its share of the remaining Project Costs in any amount exceeding the scheduled payments described in Exhibit B. Hillsborough and the City will thereafter amend Exhibit B accordingly to reflect Hillsborough’s said prepayment of its share of Project Costs over the remaining years of the original 30-year amortization period pursuant to Section 9 of this Interim Agreement.
Prior invoices for capital costs issued by the City to Hillsborough and any payments by Hillsborough for such costs have been incorporated into Exhibit B.
Hillsborough acknowledges the Percentage Share was developed using a hydraulic model of Hillsborough’s Maximum Allowable Flow and the design capacity of the facilities to be constructed as part of the Clean Water Program and intended to be used for capital planning over the course of the Clean Water Program. Hillsborough’s Percentage Share will remain unchanged, even if actual flows do not exceed Maximum Allowable Flow, except as detailed in Section 3.
The City shall provide an annual report to Hillsborough regarding the progress of the Clean Water Program including percentage of completion of components of the Clean Water Program and expected completion dates, Project Costs, interest rates, cost overruns, design changes, and other pertinent financial information. The report shall be provided within 60 days of the end of each fiscal year while the Clean Water Program Improvements are being constructed and at the end of the Clean Water Program.
Section 3. Alternative Allocation of Project Costs
The City agrees to provide for an alternative allocation of Project Costs that will apply under the circumstances described in this section.
If during the five years from the Effective Date the Metered Flows from Hillsborough at the El Cerrito Meter exceed the rolling average rate of 4.5 MGD (excluding the 0.3 MGD from the Yew/Borel Trunk Sewer) for any two-hour period, then Hillsborough’s share of Project Costs shall be determined pursuant to the provisions of Section 2. If during the five years from the Effective Date the Metered Flows at the El Cerrito Meter from Hillsborough never exceed the rolling average rate of 4.5 MGD for any two-hour period, then Hillsborough’s share of Project Costs shall be:
WWTP Project Costs 5.2%
Dale Avenue Pump Station Projects 5.6%
Underground Flow Equalization System Projects 5.6%
Program Management Office 3.9%
Hillsborough’s rolling average over a two-hour period shall be calculated by the City using the one-minute interval flow data of the preceding two hours recorded at the El Cerrito Meter, less the one-minute interval flows recorded at the District Meter (until the New Polhemus Meter has been installed and calibrated, and thereafter by the New Polhemus Meter) for the comparable period that accounts for the lag time between the two meters. The -191-
calculations for these flows shall be verified by a third-party consultant acceptable to the parties.
Hillsborough agrees to pay the City its share of Project Costs as calculated pursuant to Section 2 beginning at the Effective Date of this Interim Agreement.
If Hillsborough’s share of the Project Costs is to be adjusted pursuant to the provisions of this section, Hillsborough shall make payments in the amounts as shown in Scenario II – Reduced at 5 Year of Exhibit B. Hillsborough will receive a credit for the amount by which the payments under Scenario I exceeded the amounts under Scenario II prior to adjustment, and this credit will be applied to payments due under Scenario II until exhausted.
The five-year period established under this Section 3 shall be carried forward in the fourth amendment or other modification of the 1989 Agreement.
Section 4. Metering
The parties acknowledge and agree that accurate measurement of flows is essential to the allocation of both Project Costs and treatment costs.
(a) The City is agreeable to a new permanent flow meter to be installed at a new, more level location near Polhemus Road as selected by Hillsborough, within Hillsborough’s municipal boundaries (the “New Polhemus Meter”). The New Polhemus Meter shall be owned by Hillsborough. The selection of the New Polhemus Meter will be recommended by a consultant acceptable to the parties. Hillsborough shall provide the plans and specifications for the New Polhemus Meter to the City for engineering review and approval. Approval shall not be unreasonably withheld by the City. Any comments or objections shall be provided to Hillsborough within 10 working days. If Hillsborough determines that installation of the New Polhemus Meter involves modifications to the District’s facilities, Hillsborough shall at its earliest opportunity inform the District and coordinate the modifications, including scheduling and design, with the District. The City shall not be responsible for any design, scheduling, or construction of modifications to the District’s facilities, if any are required. Hillsborough acknowledges it is solely responsible for satisfying all conditions for the installation of the New Polhemus Meter. Until the New Polhemus Meter is installed and calibrated, the current District Meter shall continue to be used as the meter of record for measuring Hillsborough’s flows and as a basis for billing treatment costs to Hillsborough under the 1989 Agreement. Once it is installed, the New Polhemus Meter will be calibrated to manufacturer’s standards and put into service and thereafter shall be the meter of record for Hillsborough’s flows and treatment costs for the duration of this Interim Agreement. Hillsborough will pay the cost of installing the New Polhemus Meter and the initial calibration. Thereafter, the City may utilize the District Meter for comparative purposes.
(b) Within 60 days of the Effective Date, the El Cerrito Meter will be calibrated to manufacturer’s standards by a consultant acceptable to the parties. Thereafter, the El Cerrito and New Polhemus Meter will be read and maintained by a third-party consultant acceptable to the parties. The City/District/County/Hillsborough shall have on-line access to the meter data from the El Cerrito and New Polhemus Meters on a real-time basis. Meter calibration records shall be -192-
shared amongst the City/District/County/Hillsborough.
(c) Following the installation and calibration of the New Polhemus Meter and the calibration of the El Cerrito Meter, the meters shall be calibrated not less than annually and shall be replaced when recommended by the third-party consultant.
(d) Except as provided in Section 4(a)-(c) above, the cost of calibrating the El Cerrito and New Polhemus Meters shall be shared equally by the City and Hillsborough for the duration of this Interim Agreement. Maintenance and reading costs of said meters shall continue pursuant to the 1989 Agreement.
Section 5. Payment
Hillsborough agrees to pay its Percentage Share of Project Costs incurred by the City for Clean Water Program Projects. Hillsborough agrees to pay its Percentage Share of Project Costs to City in installments as set forth in Exhibit B for the duration of this Interim Agreement.
Installment payments will commence 30 days after the Effective Date and continue until the full amount of Project Costs and interest has been paid, not exceeding 30 years from the Effective Date, as provided in this Interim Agreement. The amount of the installments will be based on the cost estimates for the Clean Water Program Projects on the effective date of this Interim Agreement, plus interest based on the weighted average of any financing and refinancing obtained for the Clean Water Program Projects. Installment payment amounts will be reduced by the initial payment, as identified in Section 2, and by the amounts paid to the City by Hillsborough for the flow-based percentage of actual costs incurred in connection with Clean Water Program Projects during the period between October 2014 and the Effective Date. The installment schedules in Exhibit B shall be adjusted for differing interest rates when achieved.
Upon completion of construction of the Clean Water Program Projects, the City will recalculate the amount of the installments to reflect the final Project Costs, plus interest as provided in this section, and re-amortize these costs for the balance of time remaining in Exhibit B. Hillsborough acknowledges that the amount of the installments may increase or decrease based on actual Project Costs; however, in no case may the time for payment of the full amount of Project Costs and interest exceed 30 years from the Effective Date unless otherwise agreed for in any subsequent amendment or agreement.
The City and Hillsborough will meet and confer on any new projects in addition to those described in Exhibit A that will have a material effect on the Project Costs payable by them.
Section 6. Late Payment
For any amounts invoiced and not paid to the City within 60 days, Hillsborough agrees to pay to City a late charge equal to 1.5% of the overdue amount. This late charge is a reasonable sum that takes into consideration all the circumstances existing on the date of this Interim -193-
Agreement and is a fair and reasonable estimate of the costs and expenses that will be incurred by City due to Hillsborough's failure to make timely payments. The parties agree that it would be impracticable or extremely difficult to fix the actual damages resulting to City from Hillsborough's failure to make timely payments.
Section 7. Payment Required During Dispute
The City and Hillsborough agree to comply with their respective obligations under this Interim Agreement, including full payment of Project Costs as invoiced, while resolution of any disputes under this Interim Amendment or the 1989 Agreement are pending.
Section 8. Survival
In the event that the 1989 Agreement is terminated or found to be unenforceable, the provisions of this Interim Agreement shall remain in effect as the funding mechanism for Hillsborough’s share of the Clean Water Program Projects as defined herein.
Section 9. Amendments and Amendment to Conform to New Agreement In the event that the City agrees to financial terms with the District and/or County in a subsequent modification of the 1989 Agreement or another agreement that are more favorable than those set forth in this Interim Agreement, Hillsborough shall be entitled to the benefit of the same terms, which shall be applied retroactively and prospectively.
In the event Hillsborough prepays its share of Project Costs as described in Section 2 of this Interim Agreement, the City Managers of the City and Hillsborough are hereby authorized to amend Hillsborough’s payment schedule(s) as reflected in Exhibit B. Any other amendment to this Interim Agreement unrelated to the payment schedule shall continue to require approval from the parties’ respective legislative bodies.
Section 10. Limitations
The terms of the 1989 Agreement, as amended, shall continue in full force and effect, including its procedures for quarterly billing and annual reconciliation for operation and maintenance costs, except that the City and Hillsborough agree to modify their rights and obligations with respect to each other as provided in this Interim Agreement and do not intend to affect the rights or obligations of the County or District. This Interim Agreement shall not affect the allocation of costs for non-CWP capital improvement costs, or other services under the 1989 Agreement except as provided in Section 4.
This Amendment affects the cost allocation for the Clean Water Program as designed as of the Effective Date. Any future capital projects, including modifications to the WWTP or sewage transmission lines, shall be the subject of an amendment to the 1989 Agreement.
In the event of a conflict between the terms of this Interim Agreement and the terms of the 1989 Agreement, as amended, the terms in this Interim Agreement shall control. -194-
ATTEST: City of San Mateo
Patrice M. Olds
City Clerk
Drew Corbett Date
City Manager
APPROVED AS TO FORM:
Prasanna W. Rasiah
City Attorney
ATTEST: Town of Hillsborough
Lisa Natusch
City Clerk
Ann Ritzma Date
City Manager
APPROVED AS TO FORM:
City Attorney
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Exhibit A – Full Flow based Town/District/County Clean Water Program Project Costs with Percentage Share % EAC % EAC % EAC
469981
Program Management
Clean Water Program
(CWP)
Implementation of the CWP including establishment of the Program Management Office (PMO), management of staff and resources, Program Controls, construction management oversight, permitting, environmental documentation, document controls, change and risk management, and development and implementation of design guidelines and standards. $ 72,672,093 87.94% 63,907,839 $ 5.7% 3,642,746.80 $ 3.9% 2,492,405.70 $ 0.3% 191,723.52 $ 46T002
WWTP Immediate Action
projects (IAP) Package 1
Replacement, repair, and modification to provide redundancy of various existing Wastewater Treatment Plant (WWTP) components including rehabilitation and improvements to the secondary clarifiers and solids handling system, replacement of motor control centers (MCC), and SCADA system improvements $ 18,621,628 75.88% 14,130,091 $ 7.6% 1,073,886.94 $ 5.2% 734,764.75 $ 0.4% 56,520.37 $ 46T003
Nutrient Removal and
Wet Weather Flow
Management Upgrade
and Expansion Project
Construction of a new preliminary and primary treatment facility and the replacement of an existing secondary treatment process at the WWTP to elimina SSOs as directed by a Cease and Desist Order issued by the Regional Water Quality Control Board. State of the art technologies, including membrane bioreactor and biological nutrient removal will be used to operate in peak flows, as well as produce a high‐quality effluent, addressing requirements of the NPDES permit. The project includes a new administration building that will house the SCADA system, a new warehouse for equipment and parts storage, and the conversion of the existing aeration basin to an equalization basin. $ 75.88% 409,886,086 540,176,708 $ 7.6% 31,151,342.54 $ 5.2% 21,314,076.47 $ 0.4% 1,639,544.34 $ 46T009 WWTP IAP Package 2
Replacement, repair, and modification to provide redundancy of various existing WWTP components including installation of bar screens and rehabilitation and improvements to the effluent pump station and solids handling system. $ 13,914,127 75.88% 10,558,040 $ 7.6% 802,411.01 $ 5.2% 549,018.06 $ 0.4% 42,232.16 $ 46T010 WWTP IAP Package 3
Replacement, repair, and modification to provide redundancy of various existing WWTP components at the effluent pump station including replacement of MCCs, variable frequency drives (VFD), valves, and HVAC equipment. $ 14,950,765 75.88% 11,344,640 $ 7.6% 862,192.68 $ 5.2% 589,921.31 $ 0.4% 45,378.56 $ 46T090
Annual Major
Components (Recurring
Project) – WWTP
An annual recurring budget, during the CWP, used to address priority projects including replacement, repair, and modification to provide redundancy to influent flow meters, the effluent pump station, dichlorination system, solids handling system, HVAC and odor control, site drainage, aeration basin blowers, primary sludge pumps, dewatering equipment, and electrical equipment. $ 8,826,138 75.88% 6,697,274 $ 7.6% 508,992.79 $ 5.2% 348,258.22 $ 0.4% 26,789.09 $ 469942
DAPS Wet Well
Rehabilitation
Repair and rehabilitation to allow for improved operation and reliability of DAPS including repair to concrete, relining of wet wells, replacement of existing gates, conduits, and piping, improvements for maintenance access, and improvements for operational flexibility. $ 1,744,140 100.00% 1,744,140 $ 8.2% 143,019.48 $ 5.6% 97,671.84 $ 0.4% 6,976.56 $ 46S003
Basin 2 & 3 ‐ DAPS
Improvements
Replacement of existing pumps and installation of VFDs to improve DAPS capacity and reliability, replacement of existing control panels and generator, modifications and enhancements to the SCADA system, and modifications and enhancements to wetwell. Rehabilitation of the existing forcemains. $ 29,629,424 100.00% 29,629,424 $ 8.2% 2,429,612.79 $ 5.6% 1,659,247.76 $ 0.4% 118,517.70 $ 46S003
Basin 2 & 3 –
Underground Flow
Equalization System
Construction of a 5.3 million gallon below grade tank for in‐system equalization storage at the San Mateo County Event Center, associated diversion sewers, force mains, and pump station $ 84,679,710 100.00% 84,679,710 $ 8.2% 6,943,736.23 $ 5.6% 4,742,063.77 $ 0.4% 338,718.84 $ TOTAL $ 632,577,244 785,214,733 $ 47,557,941 $ 32,527,428 $ 2,466,401 $ Shared SM Costs
with Regional
Customers
Project Town District County
Number Project Name Project Description Estimate at Completion* San Mateo
Share (vs
Foster City)
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Exhibit B
Town of Hillsborough Clean Water Program Costs
Scenario I ‐ Full Flow
Years 1‐5 Years 6‐30
Max El Cerrito Flow (mgd) 6.8 4.5 4.5
Clean Water Program Costs1 $ 47,557,941 47,557,941 $ 32,527,428 $ Clean Water Program Payments2 $ 3,362,249 3,362,249 $ 10,478,018 $ Clean Water Program Contribution3 $ 44,195,692 44,195,692 $ 22,049,410 $ Interest Rate4 3.50% 3.50% 3.50%
Installment Years 30 5 25
Annual Installment Payment $ (2,402,979) (2,402,979) $ (1,337,827) $ Payment Year Annual Payment Amount Annual Payment Amount Annual Payment Amount 2022 (2,402,979) $ (2,402,979) $ 2023 (2,402,979) $ (2,402,979) $ 2024 (2,402,979) $ (2,402,979) $ 2025 (2,402,979) $ (2,402,979) $ 2026 (2,402,979) $ (2,402,979) $ 2027 (2,402,979) $ (1,337,827) $ 2028 (2,402,979) $ (1,337,827) $ 2029 (2,402,979) $ (1,337,827) $ 2030 (2,402,979) $ (1,337,827) $ 2031 (2,402,979) $ (1,337,827) $ 2032 (2,402,979) $ (1,337,827) $ 2033 (2,402,979) $ (1,337,827) $ 2034 (2,402,979) $ (1,337,827) $ 2035 (2,402,979) $ (1,337,827) $ 2036 (2,402,979) $ (1,337,827) $ 2037 (2,402,979) $ (1,337,827) $ 2038 (2,402,979) $ (1,337,827) $ 2039 (2,402,979) $ (1,337,827) $ 2040 (2,402,979) $ (1,337,827) $ 2041 (2,402,979) $ (1,337,827) $ 2042 (2,402,979) $ (1,337,827) $ 2043 (2,402,979) $ (1,337,827) $ 2044 (2,402,979) $ (1,337,827) $ 2045 (2,402,979) $ (1,337,827) $ 2046 (2,402,979) $ (1,337,827) $ 2047 (2,402,979) $ (1,337,827) $ 2048 (2,402,979) $ (1,337,827) $ 2049 (2,402,979) $ (1,337,827) $ 2050 (2,402,979) $ (1,337,827) $ 2051 (2,402,979) $ (1,337,827) $ Total (72,089,359) $ $ (33,445,667) (12,014,893) $ Total (45,460,560) $
1 Estimated share of CWP project costs as of 4/2022 estimates; subject to change based on final actual costs. 3 Share of CWP project costs less project payments.
4 The final interest rate will be based on the weighted average of the financings and refinancings obtained for the CWP Projects. Debt service payments will be revised accordingly.
2 Payments made toward the CWP project costs as of 2/18/22 + payment of $2,415,000 pending receipt. For the reduced flow scenario, the payments made account for extra principal paid in the first 1‐5 years.
Scenario II ‐ Reduced at 5yr
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TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
16 INFORMATIONAL
CITY COUNCIL MEETING
JUNE 13, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: STATUS UPDATE ON THE HOUSING ELEMENT UPDATE PROJECT SUMMARY: The Housing Element is a chapter of the General Plan that outlines a community’s housing plans and the polices the community has in place to ensure that they will achieve their plan’s goals. Under California law every jurisdiction in the State is required to update the Housing Element (HE) of its General Plan every eight years to reflect the jurisdiction’s Regional Housing Needs Allocation (RHNA) numbers. RHNA numbers represent the number of residential units in various income categories that the jurisdiction must provide capacity for. Jurisdictions do not build housing, but they do need to demonstrate to the State that they have created the capacity for and have the supporting policies and programs in place to ensure achievement of their RHNA target within the current cycle. The Bay Area is currently in RHNA Cycle 5 (2015-2022) and in the process of planning for RHNA Cycle 6, known as “RHNA 6” (2023-2031). The Town’s RHNA 6 allocation is outlined in the table below:
Consultant Selection
At the September 13, 2021 City Council meeting, Council approved a professional services contract with the consulting firm of Houseal Lavigne and the establishment of a non-legislative ad hoc City Council Subcommittee (CCSC) to ensure that staff are supported in achieving the directive to protect the Town’s unique character while simultaneously meeting the State’s mandate.
Town staff, the CCSC and the project consultant make up the project team.
Community Outreach
In an effort to prepare the community for the update effort and ensure a transparent and robust update process, the Building & Planning Department has provided several reports on the Housing Element Update since Mid-2020, as outlined in the following timeline:
• May 2020
o City Council Meeting: Requested for authorization from Council to apply for a Local Early Action Planning (LEAP) grant to partially fund the Housing Element Update • September 2020
o City Council Meeting: Informational report on the update process and anticipated draft RHNA allocation numbers
• October 2020
o City Council Meeting: Request for authorization from Council to enter into the countywide Housing Element Update Cooperative Agreement with 21 Elements • January 2021
o Special City Council Meeting: Update on the forthcoming Housing Element Update process as a part of the FY 21/22 budget planning work session -199-
Agenda Staff Report - Hillsborough City Council
June 13, 2022
• February 2021
o Special City Council Meeting: Update on anticipated timeline of Housing Element and Update Process as a part of the FY 21/22 goal setting work session • March 2021
o City Council Meeting: Presentation on the CY 2020 Housing Element Annual Progress Report
o Citizen Communications Advisory Committee (CCAC) Special Meeting: Overview of the Housing Element update process
o Let’s Talk Housing Kick Off: Meeting co-presented with the 21 Elements consortium kicking off the countywide “Let’s Talk Housing” campaign • April 2021
o City Council Meeting: Update to Council on the status of the Housing Element Update process
o Coffee with the City Manager: Discussion about the Housing Element Update process
o Let’s Talk Housing – Hillsborough Specific: Meeting co-presented with the 21 Elements consortium re: the countywide “Let’s Talk Housing” campaign • May 2021
o Architecture and Design Review Board (ADRB) Meeting: Informational presentation to the ADRB on the Housing Element Update Process
• June 2021
o Hillsborough City School District (HCSD) Meeting: Informational presentation to the HCSD on the Housing Element Update Process
o City Council Meeting: Update on the proposed Housing Element Update Work Plan • September 2021
o City Council Meeting: Request for approval of contract with the Housing Element Update consultant, Houseal Lavigne; Request for establishment of an ad hoc City Council Housing Element Update Subcommittee
• November 2021
o Community Visioning Workshop: Community-wide Housing Element Update Visioning Workshop meeting
• December 2021
o Light Up the Town: Town staff attended the event and distributed information on the Update effort.
• May 2022
o Celebrate May: Town staff attended the event and distributed information on the Update effort.
Housing Element Advisory Committee (HEAC)
On June 14, 2021, the City Council reviewed the proposed work plan for the Housing Element Update process, including the formation of an advisory committee to help the Town update its Housing Element. In October 2021 the project team began accepting applications for the Town’s Housing Element Advisory Committee (HEAC), and in December 2021 the seventeen-member committee (15 standing members and two alternate members) was established. The committee is comprised of a variety of Hillsborough community members, and includes representatives from the Hillsborough City School District (HCSD), the Burlingame Country Club (BCC), and private schools -200-
Agenda Staff Report - Hillsborough City Council
June 13, 2022
located within Town limits. This ad-hoc group serves in advisory capacity to the Director of the Department of Building and Planning, and has held four meetings to date.
The HEAC has held four meetings to date, as outlined below:
• HEAC Meeting #1 - January 25, 2022
o Housing Element Introduction
o HEAC Roles & Responsibilities
o Visioning Workshop Feedback Overview
o Next Steps & How to Spread the Word
• HEAC Meeting #2 - February 15, 2022
o Public Safety and Land Use Element Intro
o Housing Legislation Overview
• HEAC Meeting #3 - March 21, 2022
o Review of pre-meeting reading
o Discussion about the “how, what, and where” of housing to meet RHNA requirement in Hillsborough
o Discussion about housing types, densities, constraints, and other considerations specific to Hillsborough
o Next steps & project timeline
• HEAC Meeting #4 - May 23, 2022
o Policies & Programs Feedback
o Reaching RHNA; methods, counting ADUs, income category distribution o Subdivision options
Looking Forward – Next Steps
• June 2022
o City Council Meeting: Update on the Housing Element Update Work Plan o HEAC Meeting #4.5: Due to the depth of the conversation that took place at Meeting #4, an additional HEAC meeting is being scheduled on either June 21 or 22 to continue the discussion about methods to reach RHNA.
• August 2022
o HEAC Meeting #5: August 2, 2022
o City Council Meeting: Update on Housing Element Update Work Plan o Community Open House: Review of Public Draft
• December 2022
o HEAC Meeting #6: December 8, 2022
Ways to be involved and informed
In February 2021 the Department launched the Housing Element Update website and created a 2022 Housing Element e-subscription option on the Town’s “NotifyMe” webpage. These pages may be accessed via the links below:
• Housing Element Update page
o https://www.hillsborough.net/553/2023-2031-Housing-Element-Update • NotifyMe e-subscription page
o https://www.hillsborough.net/list.aspx
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Agenda Staff Report - Hillsborough City Council
June 13, 2022
Updates along with all presentations, meetings recordings, and other documents related to all public housing element update meetings are available for public review on the Town’s Housing Element Update page. Notice of Town meetings will be posted on Town bulletin boards, on the online Town calendar, and sent out in the Town's e-announcements and newsletter.
The Town has a dedicated email account for the Update effort ([email protected]) and has established a dedicated section in the Town’s weekly e-Announce to keep the community apprised of upcoming meetings and events related to the Update effort.
FISCAL IMPACT: There is no fiscal impact related to receiving this report.
ENVIRONMENTAL ISSUES: California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) provide that ongoing administrative activities and organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a “project” as defined by the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.) and are therefore exempt from CEQA and no further environmental review is required. Environmental review of the Housing Element will occur as a part of that project and is not included in this CEQA determination.
ATTACHMENTS: None
PREPARED BY: Sarah Fleming, Director of Building and Planning RECOMMENDATION: Receive the status update on the Housing Element update project. -202-
TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
17 INFORMATIONAL
CITY COUNCIL MEETING
JUNE 13, 2022
AGENDA STAFF REPORT
ITEM SUBJECT: CITY MANAGER'S UPDATE
SUMMARY: The City Manager will provide an informational update related to Town projects, events and activities of interest to the community.
FISCAL IMPACT: There is no fiscal impact associated with this agenda item.
ENVIRONMENTAL ISSUES: This informational item is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS: None
PREPARED BY: Ann Ritzma, City Manager
RECOMMENDATION: For information only; no action required. -203-