Agenda — Menlo Park City Council, June 13, 2023 (part 1 of 3)

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov City Council

REGULAR MEETING AGENDA
Date: 6/13/2023
Time: 6:00 p.m.

Locations: Zoom.us/join – ID# 814 7839 7160 and
City Council Chambers
751 Laurel St., Menlo Park, CA 94025
City Councilmember Combs will be participating from:
621 St. Lous St.

New Orleans, LA 70130
City Councilmember Doerr will be participating from:
1001 16th Street NW
Washington, DC 20036
Members of the public can listen to the meeting and participate using the following methods. If you have issues viewing the meeting, please email the city clerk at [email protected].

How to participate in the meeting
• Submit a written comment online up to one-hour before the meeting start time:
• [email protected]
• Access the meeting real-time online at:

Zoom.us/join – Meeting ID 814 7839 7160
• Access the meeting real-time via telephone at:
(669) 900-6833
Meeting ID 814 7839 7160
Press *9 to raise hand to speak
Watch meeting:
• Cable television subscriber in Menlo Park, East Palo Alto, Atherton and Palo Alto:

Channel 26
• City Council Chambers
Subject to Change: The format of this meeting may be altered or the meeting may be cancelled. You may check on the status of the meeting by visiting the city website menlopark.gov. The instructions for logging on to the webinar and/or the access code is subject to change. If you have difficulty accessing the webinar, please check the latest online edition of the posted agenda for updated information (menlopark.gov/agendas)
Regular Session
A. Call To Order
B. Roll Call
C. Agenda Review
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov City Council Regular Meeting Agenda
June 13, 2023

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D. Report from Closed Session
E. Public Comment
Under “Public Comment,” the public may address the Commission on any subject not listed on the agenda. Each speaker may address the Commission once under Public Comment for a limit of three minutes. The Commission cannot act on items not listed on the agenda and, therefore, the Commission cannot respond to non-agenda issues brought up under Public Comment other than to provide general information.

F. Presentations and Proclamations
F1. Proclamation: Recognizing Juneteenth Day (Attachment) Not a California Environmental Quality Act (CEQA) project.

F2. Proclamation: Recognizing June 2023 as Pride Month (Attachment) Not a CEQA project.

G. Consent Calendar
G1. Accept the City Council meeting minutes for April 25, 2023 (Attachment) Not a CEQA project.

G2. Authorize the city manager to enter into a professional services agreement for investment advisory services (Staff Report #23-133-CC)
Not a CEQA project.

G3. Adopt a resolution approving the list of projects eligible for fiscal year 2023-24 funds from Senate Bill 1: The Road Repair and Accountability Act of 2017 (Staff Report #23-138-CC) Not a CEQA project.

G4. Authorize the city manager to execute a construction contract to McGuire and Hester for the Haven Avenue Streetscape project (Staff Report #23-139-CC)
Not a CEQA project.

H. Public Hearing
H1. Public hearing on proposed fiscal year 2023-24 budget and capital improvement plan (Staff Report #23-141-CC)
Not a CEQA project.

I. Regular Business
I1. Adopt a resolution renewing Chapter 2.70 of the Menlo Park Municipal Code entitled military equipment use ordinance, Menlo Park Military Equipment Use Policy, and finding that the 2022 Menlo Park Police Department annual military equipment report complies with the standards of approval set forth in Menlo Park Police Department policy 708.7 and Government Code §7071(d) (Staff Report #23-135-CC) (Presentation)
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov City Council Regular Meeting Agenda
June 13, 2023

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I2.

I3.

Not a CEQA project.

Waive the first reading and introduce an ordinance adding Chapter 1.15 “Administrative Citations” and amending Chapter 8.04 “Nuisances” to add additional “Enumerated” nuisances to subsection

8.04.010 (Staff Report #23-136-CC) (Presentation)
Not a CEQA project.

Waive the first reading and introduce an ordinance adding Menlo Park Municipal Code Chapter

8.05 to require the use of zero emission landscaping equipment (ZELE) (Staff Report #23-134-CC) (Informe de Personal #23-134-CC) (Presentation)
Not a CEQA project.

J. Informational Items
J1. City Council agenda topics: June 20 – July 11 (Staff Report #23-140-CC) Not a CEQA project.

J2. Transmittal of city attorney billing (Staff Report #23-132-CC) Not a CEQA project.

J3. Police department quarterly update – Q1 January 2023 – March 2023 (Staff Report #23-137-CC) Not a CEQA project.

K. City Manager Report's
L. City Councilmember Reports
M. Closed Session
M1. Closed session conference with labor negotiators pursuant to Government Code §54957.6 regarding labor negotiations with the Service Employees International Union Local 521 (SEIU), American Federation of State, County, and Municipal Employees Local 829 (AFSCME), and Confidential employees
Agency designated representatives: City Manager Justin I.C. Murphy, Administrative Services Director Brittany Mello, Assistant City Manager Stephen Stolte, City Attorney Nira Doherty, Special Counsel Charles Sakai
Not a CEQA project.

N. Adjournment
At every regular meeting of the commission, in addition to the public comment period where the public shall have the right to address the commission on any matters of public interest not listed on the agenda, members of the public have the right to directly address the commission on any item listed on the agenda at a time designated by the chair, either before or during the commission’s consideration of the item.

At every special meeting of the commission, members of the public have the right to directly address the commission on any item listed on the agenda at a time designated by the chair, either before or during consideration of the item.

For appeal hearings, appellant and applicant shall each have 10 minutes for presentations.

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov City Council Regular Meeting Agenda
June 13, 2023

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If you challenge any of the items listed on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City of Menlo Park at, or before, the public hearing.

Any writing that is distributed to a majority of the commission by any person in connection with an agenda item is a public record (subject to any exemption under the Public Records Act) and is available by request by emailing the city clerk at [email protected]. Persons with disabilities, who require auxiliary aids or services in attending or participating in commission meetings, may call the City Clerk’s Office at 650-330-6620.

Agendas are posted in accordance with California Government Code §54954.2(a) or §54956. Members of the public can view electronic agendas and staff reports by accessing the city website at menlopark.gov/agendas and can receive email notification of agendas by subscribing at menlopark.gov/subscribe. Agendas and staff reports may also be obtained by contacting the city clerk at 650-330-6620. (Posted: 6/8/2023)

PROCLAMATION
Recognizing Juneteenth on June 19, 2023
WHEREAS, during the Civil War, after the Union Army captured New Orleans in 1862, slave owners in Confederate states migrated to Texas with more than 150,000 enslaved Black persons, keeping them deprived of their freedom and basic dignity, even after President Abraham Lincoln issued the Emancipation Proclamation; and WHEREAS, June 19, 1865, — nearly three years after President Lincoln declared all enslaved persons free — Major General Granger and Union Army troops marched to Galveston, Texas to enforce the Emancipation Proclamation and free the last enslaved Black Americans; and WHEREAS, those who were freed from bondage celebrated their long-overdue emancipation June 19, and today, our Nation commemorates Juneteenth as a chance to celebrate human freedom, reflect on the grievous and ongoing legacy of slavery, and rededicate ourselves to rooting out the systemic racism that continues to plague our society as we strive to deliver the full promise of America to every American; and
WHEREAS, Juneteenth, recognized as a federal holiday in 2021 and celebrated in the Black community for over 150 years, commemorates African-American freedom, emphasizes education and achievement, symbolizes freedom, celebrates the abolishment of slavery, and reminds all of the significant contributions of African-Americans to our society; and WHEREAS, this year, on Juneteenth, we recognize the power and resilience of Black Americans, who have endured generations of oppression in the ongoing journey toward equal justice, equal dignity, equal rights, and equal opportunity in America and pay tribute to those, then and now, who fought so long and worked so hard to make the dream of equality a reality; and
WHEREAS, this year, on Saturday, June 17, 2023, all are encouraged to join us for a Juneteenth celebration at Karl E. Clark Park, to gather together, enjoy live music and delicious food, and learn more about this most important day in the history of our Nation; and NOW THEREFORE, BE IT PROCLAIMED that I, Jen Wolosin, Mayor of the City of Menlo Park, do hereby proclaim June 2023 as the month to celebrate Juneteenth Day in Menlo Park, California, and urge all people to become more aware and continually educated on the significance of this celebration in Black History and in the heritage of our nation.

Jen Wolosin, Mayor
June 13, 2023
AGENDA ITEM F-1
Page F-1.1

PROCLAMATION
Pride Month – June 2023
WHEREAS, the City Council of Menlo Park recognizes and proclaims the month of June 2023 as Lesbian, Gay, Bisexual, Transgender and Queer (LGBTQ+) “Pride Month” throughout the City of Menlo Park; and
WHEREAS, Menlo Park joins the County of San Mateo to observe Pride Month, honor the history of the LGBTQ+ liberation movement, and to support the rights of all residents to experience equality and freedom from discrimination; and WHEREAS, the rainbow flag is widely recognized as a symbol of pride, inclusion, and support for social movements that advocate for LGBTQ+ people in society; and WHEREAS, all human beings are born free and equal in dignity and rights. LGBTQ+ individuals have had immeasurable impact to the cultural, civic and economic successes of our country; and
WHEREAS, the City of Menlo Park is committed to supporting visibility, dignity and equality for LGBTQ+ people in our diverse community; and
WHEREAS, while society at large increasingly supports LGBTQ+ equality, it is essential to acknowledge that the need for education and awareness remains vital to end discrimination, prejudice and violence against the LGBTQ+ community; and WHEREAS, celebrating Pride Month influences awareness and provides support and advocacy for San Mateo County’s LGBTQ+ community, and is an opportunity to take action and engage in dialogue to strengthen alliances, build acceptance and advance equal rights; and NOW, THEREFORE BE IT RESOLVED, that the rainbow flag, raised on June 1, recognizes and celebrates all LGBTQ+ residents whose influential and lasting contributions to our neighborhoods make Menlo Park a vibrant community in which to live, work and visit; and NOW, THEREFORE, BE IT PROCLAIMED that I, Jen Wolosin, Mayor of the City of Menlo Park, on behalf of the City Council and City, hereby proclaim the month of June 2023 as Pride Month in support of the LGBTQ+ community and call upon members of the Menlo Park community to strive to eliminate prejudice and to embrace the beautiful rainbow of human experience that encompasses all people everywhere.

Jen Wolosin, Mayor
June 13, 2023
AGENDA ITEM F-2 Page F-2.1
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov City Council
REGULAR MEETING MINUTES – DRAFT
Date: 4/25/2023
Time: 6:00 p.m.

Locations: Teleconference and
City Council Chambers
751 Laurel St., Menlo Park, CA 94025
A. Call To Order
Mayor Wolosin called the meeting to order at 6:04 p.m.

B. Roll Call

Present: Combs, Doerr (remote – AB 2449 Just Cause, exited at 10:58 p.m.), Nash, Taylor, Wolosin

Absent: None
Staff: City Manager Justin I. C. Murphy, City Attorney Nira F. Doherty, Assistant to the City Manager/City Clerk Judi A. Herren
C. Agenda Review
The City Council pulled item I5.

D. Report from Closed Session
No reportable action.

E. Public Comment
 Alheli spoke in support of a smoke-free multi-unit housing ordinance.  Patrick Killelea spoke in opposition of masks and masking requirements in city facilities.  Millie spoke in support of naming the new community center after Onetta Harris.  Herbert Barkus spoke in opposition of overnight parking enforcement.  Candice Buttler spoke in support of naming the new community center after Onetta Harris.  Jennifer Fairily spoke in support of naming the new community center after Onetta Harris.  Onetta Harris spoke in support of naming the new community center after Onetta Harris.  Linh Dan Do spoke in support of urgent action to address climate change and requested a report on the Climate Action Plan (CAP) updates.
 Kelly Kirby spoke in support of naming the new community center after Onetta Harris.  Chester Palesoo spoke in support of naming the new community center after Onetta Harris.  Diane Bailey spoke in support of Love Our Earth festival and requested a report on the CAP updates
 Ken Harris spoke in support of naming the new community center after Onetta Harris and described the difference between economic and fiscal currencies.  Raquel Harris spoke in support of naming the new community center after Onetta Harris.  Rhona Harris spoke in support of naming the new community center after Onetta Harris.  John McKenna spoke in support of prioritize climate change mitigation and adaptation.  Agnes Harris spoke in support of naming the new community center after Onetta Harris.

AGENDA ITEM G-1 Page G-1.1

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 Sheena Marie Castro read a letter to the record related to their resignation from Menlo Park.  Jayanta Dey spoke in support of accelerating the work on climate change.  JT Faraji spoke in support of naming the new community center after Onetta Harris.  Greg Goodwin spoke in support of naming the new community center after Onetta Harris.  James Pistorino spoke in support of reviewing the CAP and city efforts of electrification and the natural gas appliances ban.
 Yahsmeen Abdusami spoke in support of naming the new community center after Onetta Harris.  Warren Hayman spoke in support of naming the new community center after Onetta Harris.

The City Council received clarification on the status and process of the naming of the community center.

O. Closed Session
O1. Closed session conference with labor negotiators pursuant to Government Code §54957.6 regarding labor negotiations with the Service Employees International Union Local 521 (SEIU), American Federation of State, County, and Municipal Employees Local 829 (AFSCME), and Confidential employees
Attendees: City Manager Justin I.C. Murphy, Administrative Services Director Brittany Mello, Assistant City Manager Stephen Stolte. Legal Counsel Charles Sakai  Whit Loy, with donated time from Sokny Sy and Joanna Chen, spoke on employee pension subsidies or “cost-share” (Attachment).

The City Council received clarification on the acronyms and percentages listed in the attachment.

F. Presentations and Proclamations
F1. Proclamation: Recognizing April 28, 2023 as National Arbor Day (Attachment) Mayor Wolosin introduced the proclamation (Attachment).

G. Advisory Body Vacancies and Appointments
G1. Consider applicants and make appointments to fill vacancies on various advisory bodies (Staff Report #23-098-CC)

City Clerk Judi A. Herren made a presentation (Presentation).  Andrew Ehrich spoke in support on their serving on the Planning Commission.  Brian Kissel spoke on their application to the Environmental Quality Commission.

The City Council discussed the voting process for the various appointments.

The City Council directed staff to pursue Option No. 3 for the Finance and Audit Committee, which included three appointments tonight, extending the recruitment period and returning to fill the remaining two vacancies.

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April 25, 2023

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The City Council made appointments to fill vacancies on the Complete Streets, Environmental Quality, Housing, Library, Parks and Recreation, Planning Commissions and the Finance and Audit Committee:

Planning Commission:

Andrew Ehrich – term expiring April 30, 2027
Katie Ferrick – term expiring April 30, 2027

Complete Streets Commission
Jacqui Cebrian – term expiring April 30, 2027
Ross Silverstein – term expiring April 30, 2024

Environmental Quality Commission
Brian Kissel – term expiring April 30, 2027
Eduardo Pelegri-Llopart – term expiring April 30, 2027
Finance and Audit Committee
Jeff Leroux – term expiring April 30, 2025
Matthew Normington – term expiring April 30, 2025
Carol Wong – term expiring April 30, 2025
Housing Commission
Virginia Portillo – term expiring April 30, 2027
Library Commission
Carol Orton – term expiring April 30, 2027
Jennifer Wise – term expiring April 30, 2027
Parks and Recreation Commission
Jessica Gilmartin – term expiring April 30, 2027
Wonman Lee – term expiring April 30, 2027

The City Council took a recess at 7:57 p.m.

The City Council reconvened at 8:04 p.m.

The City Council reordered the agenda.

J. Continued Public Hearing
J1. Consider the Planning Commission’s recommendation to approve the vesting tentative map extension and adopt a resolution to approve a two-year extension of a vesting tentative map to merge the existing SP-ECR/D (El Camino Real/Downtown Specific Plan) lots, abandon a portion of Alto Lane, and create a two-lot subdivision for condominium purposes, with 12 residential units, one restaurant space and up to three retail spaces on one lot in the SP-ECR/D zoning district, at 201 El Camino Real, and two townhouses on the second lot in the R-3 (Apartment) zoning district, Page G-1.3

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at 612 Cambridge Ave. (Staff Report #23-102-CC) – Continued from March 14, 2023 Associate Planner Matthew Pruter made a presentation (Presentation).

Applicant Nariman Teymourian made a presentation.

Mayor Wolosin opened the public hearing.

Mayor Wolosin closed the public hearing.

The City Council received clarification on the applicant’s meetings with the neighbors of the proposed project.

The City Council discussed community engagement with the property owner.

ACTION: Motion and second (Nash/ Taylor), to approve a tentative map extension request and adopt a resolution to approve a two-year extension of a vesting tentative map associated with a major subdivision to merge the existing SP-ECR/D (El Camino Real/Downtown Specific Plan) lots, abandon a portion of Alto Lane, and create a two-lot subdivision for condominium purposes, with 12 residential units, one restaurant space and up to three retail spaces on one lot in the SP-ECR/D zoning district, and two townhouses on the second lot in the R-3 (Apartment) zoning district, passed unanimously.

H. Study Session
H1. Provide direction on the Caltrain quiet zone study (Staff Report #23-097-CC) Assistant Public Work Director Hugh Louch made the presentation (Presentation).  John Woodell spoke in support of full grade separation.  Amy Mushlin spoke in support of pursuing quiet zones.  Adrian Brandt spoke in support of pursuing quiet zones and seeking funding from the California High Speed Rail Authority.
 Roland LeBrun provided information on train regulations from different agencies and grade separation.
 Marcy Abramowitz spoke in support of pursuing quiet zones.  Sally Cole spoke in support of pursuing quiet zones.
 Adina Levin spoke in support of pursuing quiet zones.  Jenny Michel spoke in opposition to pursuing quiet zones.

The City Council received clarification on commuter and freight train horn requirements, train crash data, bollards on the north side of tracks and potential south side mitigations, costs and possible funding, impacts to future grade separation, and the number of residential units near the tracks.

The City Council discussed the fiscal year 2023-24 budget process, impacts to timeline if direction is held until hearing the budget, safety elements, and suicide prevention signage.

The City Council directed staff to pursue an agreement with Caltrain to advance final design, Page G-1.4

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April 25, 2023

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pursuing four quadrant gates at two crossings to implement a quiet zone more quickly including design work and budget impacts for all four gates, drafting a letter to seek reimbursement from California High-Speed Rail Authority, and pursing a left-turn restrictions from Oak Grove Avenue to Merrill Street and Garwood Way including community outreach.

I. Consent Calendar
I1. Update City Councilmembers subcommittee appointments (Staff Report #23-099-CC)

I2. Adopt a resolution certifying compliance with State housing laws to be eligible for One Bay Area Grant funding for the Middle Avenue Caltrain crossing project (Staff Report #23-096-CC)  Adina Levin spoke on concerns related to the city’s eligibility for One Bay Area Grant funding for the Middle Avenue Caltrain crossing project.

The City Council received clarification on the city’s eligibility for One Bay Area Grant funding for the Middle Avenue Caltrain crossing project.

I3. Authorize the city manager to execute an amendment to the Belle Haven School Joint Use Agreement (Staff Report #23-095-CC)
 Pam Jones request more information on the proposed health clinic.

The City Council received clarification on the Ravenswood health clinic.

I4. Receive and file the Single Audit for the fiscal year ended June 30, 2022 (Staff Report #23-100-CC)

I5. Authorize the city manager to execute agreements with Sloan Sakai and Liebert Cassidy Whitmore for legal services related to human resources (Staff Report #23-101-CC)

The City Council discussed potentially updating the agreement term and lessening the not to exceed amount, request for qualification (RFQ) impacts to staff, and potential legal service disruption.

The City Council received clarification on the initial Sloan Sakai Yeung and Wong, LLP and Liebert Cassidy Whitmore not to exceed amounts and contract terms, as well as the triggers of an RFQ.

The City Council directed a RFQ for labor legal services to be returned to the City Council at a later time.

ACTION: Motion and second (Nash/ Taylor), authorize the city manager to execute an agreement with Sloan Sakai Yeung and Wong, LLP (Sloan Sakai) in the amount not to exceed $175,000 and with Liebert Cassidy Whitmore (LCW) in an amount not to exceed $100,000 for legal services related to human resources, including labor relations, employee relations, staff trainings, and workplace investigations over a three-year, two-month period to align with the end of the fiscal year, passed unanimously.

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ACTION: Motion and second (Wolosin/ Doerr), to approved the consent calendar with the exception of item I5., passed unanimously.

K. Regular Business
K1. Approve fiscal year 2023-24 budget principles, review five-year General Fund forecast (Staff Report #23-103-CC)
Administrative Services Director Brittany Mello and Interim Finance Director Marvin Davis made the presentation (Presentation).

The City Council received clarification on equity, impacts from lowering policy limits on reserve balances, and vacancy rates.

The City Council discussed equitable tools and action and revenue chart based on Districts.

The City Council directed updating the following budget principles:
 “Proactively maintain and improve existing infrastructure to minimize maintenance costs, decrease the City’s greenhouse gas emissions, and increase the City’s long-term disaster and climate resilience.”
 “Implement ordinances and City Council adopted initiatives and strategies to contribute to the quality of life in Menlo Park now and in the future.”
 “Strive to achieve City Council cost recovery goals for all fee-based services.” The City Council also directed staff to research if amendments are needed to the reserve policy.

ACTION: Motion and second (Wolosin/ Nash), to approve budget principles with edits as presented for fiscal year 2023-24 and review the five-year General Fund forecast, passed unanimously.

ACTION: By acclamation, the City Council continued the meeting beyond 11 p.m.

L. Informational Items
L1. City Council agenda topics: May 9 – May 23 (Staff Report #23-104-CC) L2. Transmittal of city attorney billing (Staff Report #23-105-CC)

L3. Update on City’s Housing Element Update project status and next steps (Staff Report #23-106-CC)
The City Council received clarification on the status of the below market rate (BMR) administration request for proposal and future meetings and public noticing requirements.

The City Council requested an opportunity to update the BMR policy.

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M. City Manager Report's
City Manager Justin Murphy reported out on Middlefield Road pilot.

N. City Councilmember Reports
City Councilmember Combs reported out on the annual egg hunt at Flood Park.

City Councilmember Nash reported out on Stanford Community Resources Group meeting.

Vice Mayor Taylor reported out on OneShoreline (Attachment), C/CAG, Peninsula Traffic Congestion Relief Alliance (Commute.org) (Attachment), and the Menlo Park Community Campus working group meetings.

City Councilmember Doerr reported out on the HEART Board Member Agency Committee and Bay Area Water Supply & Conservation Agency meetings.

Mayor Wolosin reported out on the Commute.org meeting and the Progress Seminar.

O. Closed Session
O1. Closed session conference with labor negotiators pursuant to Government Code §54957.6 regarding labor negotiations with the Service Employees International Union Local 521 (SEIU), American Federation of State, County, and Municipal Employees Local 829 (AFSCME), and Confidential employees
Attendees: City Manager Justin I.C. Murphy, Administrative Services Director Brittany Mello, Assistant City Manager Stephen Stolte. Legal Counsel Charles Sakai P. Adjournment
Mayor Wolosin adjourned to the closed session at 11:20 p.m.

Mayor Wolosin adjourned the meeting at 12:19 a.m.

Judi A. Herren Assistant to the City Manager/City Clerk Page G-1.7
Administrative Services
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov 6/13/2023
23-133-CC

STAFF REPORT
City Council
Meeting Date:

Staff Report Number:

Consent Calendar: Authorize the city manager to enter into a professional services agreement for investment
advisory services
Recommendation
Staff recommends City Council authorize the city manager to enter into a professional services agreement with Insight Investment as the City’s investment advisor (Attachment A).

Policy Issues
The fiscal year 2022-23 award authority and bid requirements requires professional service purchases in excess of the city manager’s threshold of $86,000 receive approval from the City Council (Policy #CC-21- 024). Also, the Award Authority and Bid Requirement Policy (Policy #CC-19-001) indicates the mechanism to follow when procuring given dollar amounts.

Background
It is a best practice to update professional services agreements every five years to ensure the City remains competitive in the use of public funds. Staff published the attached request for proposal (RFP) (Attachment B) outlining the City’s scope of service, requirements, selection process, and request for the firm’s compensation schedule, including a copy of the City’s investment policy. The RFP was published through the City’s PlanetBids portal. Several firms had follow-up questions and staff responded to these questions through this website. The City received timely proposals from the following six firms:
• Chandler Asset Management
• Insight Investment
• Meeder Public Funds
• PFM Asset Management, LLC
• Public Trust Advisors, LLC
• RCM Robinson Capital Management, LLC
Analysis
Staff evaluated the proposals based on the firm’s years of experience, size of assets managed, Economic Social Governance (ESG) scoring methodology, and fee schedule applicable to the City’s portfolio size. The size of assets under a firm’s management indicates the volume a firm is accustomed to handling. Relative to the firms evaluated, Insight Investment ranked second in this category. After an initial assessment of all proposals, staff conducted interviews with the three firms who met the proposal requirements: Chandler Asset Management, Insight Investment and PFM Asset Management. The remaining three firms did not include ESG scoring methodology as required in the RFPs. Of these three firms, Insight’s fee schedule was the most competitive. Currently, there is no industry standard among the major rating agencies (Fitch, AGENDA ITEM G-2 Page G-2.1
Staff Report #: 23-133-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Moody’s, Standard & Poor’s) for assigning an ESG rating to investments. Insight Investment’s methodology of ranking on a scale of 1-5, with one being the best investment, has proven to be an effective tool.

Insight Investment is experienced in the industry and has been performing these services for the City since 2004. Insight Investment is a proactive partner in communicating with the City and provides portfolio management recommendations in a timely manner. Staff is kept apprised of market trends and forecasts to achieve maximum yield in accordance with the City’s investment policy. Based upon the review of proposals, interview results, and a proven record of success, staff believes Insight Investment will continue to provide exceptional investment advisory services to the City.

Therefore, staff is seeking authority to enter into a three-year agreement, with two options to extend the agreement for one year at a time, for a total maximum term of five years.

Impact on City Resources
Investment advisory services to the City is budgeted annually in the non-departmental category of the General Fund. Given the current size of the City’s portfolio, we anticipate annual fees of approximately $90,000.

Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§ 15378 and 15061(b)(3) as it will not result in any direct or indirect physical change in the environment.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Investment advisory services professional services agreement B. RFPs – Investment Advisory Services (published Dec. 21, 2022) Report prepared by:

Marvin Davis, Interim Finance Director
Brittany Mello, Administrative Services Director
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PROFESSIONAL SERVICES AGREEMENT
City Manager’s Office
701 Laurel St., Menlo Park, CA 94025
tel 650-330-6620
Agreement #:

AGREEMENT FOR SERVICES BETWEEN

THE CITY OF MENLO PARK AND INSIGHT NORTH AMERICA LLC
THIS AGREEMENT made and entered into at Menlo Park, California, this _____________________, by and between the CITY OF MENLO PARK, a Municipal Corporation, hereinafter referred to as "CITY," and INSIGHT NORTH AMERICA LLC, hereinafter referred to as “FIRST PARTY.” WITNESSETH:

WHEREAS, CITY desires to retain FIRST PARTY to provide certain professional services for CITY in connection with that certain project called: Request for proposal dated December 21, 2022 WHEREAS, FIRST PARTY is licensed to perform said services and desires to and does hereby undertake to perform said services.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, PROMISES AND CONDITIONS of each of the parties hereto, it is hereby agreed as follows:

1. SCOPE OF WORK
In consideration of the payment by CITY to FIRST PARTY, as hereinafter provided, FIRST PARTY agrees to perform all the services as set forth in Exhibit "A," Scope of Services.

2. SCHEDULE FOR WORK
FIRST PARTY's proposed schedule for the various services required pursuant to this agreement will be as set forth in Exhibit "A," Scope of Services. CITY will be kept informed as to the progress of work by written reports, to be submitted monthly or as otherwise required in Exhibit "A.” Neither party shall hold the other responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents or other events beyond the control of the other, or the other's employees and agents.

FIRST PARTY shall commence work immediately upon receipt of a "Notice to Proceed" from CITY.

The "Notice to Proceed" date shall be considered the "effective date" of the agreement, as used herein, except as otherwise specifically defined. FIRST PARTY shall complete all the work and deliver to CITY all project related files, records, and materials within one month after completion of all of FIRST PARTY's activities required under this agreement.

3. PROSECUTION OF WORK
FIRST PARTY will employ a sufficient staff to prosecute the work diligently and continuously and will complete the work in accordance with the schedule of work approved by the CITY. (See Exhibit "A," Scope of Services).

ATTACHMENT A Page G-2.3
2 CC Rev 20210301

4. COMPENSATION AND PAYMENT
A. CITY shall pay FIRST PARTY an all-inclusive fee that shall not exceed $300,000 as described in Exhibit "A," Scope of Services. All payments shall be inclusive of all indirect and direct charges to the Project incurred by FIRST PARTY. The CITY reserves the right to withhold payment if the City determines that the quantity or quality of the work performed is unacceptable.

B. FIRST PARTY's fee for the services as set forth herein shall be considered as full compensation for all indirect and direct personnel, materials, supplies and equipment, and services incurred by FIRST PARTY and used in carrying out or completing the work.

C. Payments shall be monthly for the invoice amount or such other amount as approved by CITY. As each payment is due, the FIRST PARTY shall submit a statement describing the services performed to CITY.

This statement shall include, at a minimum, the project title, agreement number, the title(s) of personnel performing work, hours spent, payment rate, and a listing of all reimbursable costs. CITY shall have the discretion to approve the invoice and the work completed statement. Payment shall be for the invoice amount or such other amount as approved by CITY.

D. Payments are due upon receipt of written invoices. CITY shall have the right to receive, upon request, documentation substantiating charges billed to CITY. CITY shall have the right to perform an audit of the FIRST PARTY's relevant records pertaining to the charges.

5. EQUAL EMPLOYMENT OPPORTUNITY
A. FIRST PARTY, with regard to the work performed by it under this agreement shall not discriminate on the grounds of race, religion, color, national origin, sex, handicap, marital status or age in the retention of sub-consultants, including procurement of materials and leases of equipment.

B. FIRST PARTY shall take affirmative action to insure that employees and applicants for employment are treated without regard to their race, color, religion, sex, national origin, marital status or handicap.

Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment advertising; layoff or termination; rates of pay or other forms of compensation and selection for training including apprenticeship.

C. FIRST PARTY shall post in prominent places, available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause.

D. FIRST PARTY shall state that all qualified applications will receive consideration for employment without regard to race, color, religion, sex, national origin, marital status or handicap.

E. FIRST PARTY shall comply with Title VI of the Civil Rights Act of 1964 and shall provide such reports as may be required to carry out the intent of this section.

F. FIRST PARTY shall incorporate the foregoing requirements of this section in FIRST PARTY’s agreement with all sub-consultants.

6. ASSIGNMENT OF AGREEMENT AND TRANSFER OF INTEREST
A. FIRST PARTY shall not assign this agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of the CITY thereto, provided, however, that claims for money due or to become due to the FIRST PARTY from the CITY under this agreement may be assigned to a bank, trust company, or other financial institution without such approval. Notice of an intended assignment or transfer shall be furnished promptly to the CITY.

B. In the event there is a change of more than 30 percent of the stock ownership or ownership in FIRST PARTY from the date of this agreement is executed, then CITY shall be notified before the date of said change of stock ownership or interest and CITY shall have the right, in event of such change in stock ownership or interest, to terminate this agreement upon notice to FIRST PARTY. In the event CITY is not notified of any such change in stock ownership or interest, then upon knowledge of same, it shall be deemed that CITY has terminated this agreement.

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3 CC Rev 20210301

7. INDEPENDENT WORK CONTROL
It is expressly agreed that in the performance of the service necessary for compliance with this agreement, FIRST PARTY shall be and is an independent contractor and is not an agent or employee of CITY. FIRST PARTY has and shall retain the right to exercise full control and supervision of the services and full control over the employment, direction, compensation and discharge of all persons assisting FIRST PARTY in the performance of FIRST PARTY's services hereunder. FIRST PARTY shall be solely responsible for its own acts and those of its subordinates and employees.

8. CONSULTANT QUALIFICATIONS
It is expressly understood that FIRST PARTY is licensed and skilled in the professional calling necessary to perform the work agreed to be done by it under this agreement and CITY relies upon the skill of FIRST PARTY to do and perform said work in a skillful manner usual to the profession. The acceptance of FIRST PARTY's work by CITY does not operate as a release of FIRST PARTY from said understanding.

9. NOTICES
All notices hereby required under this agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid or by overnight courier service. Notices required to be given to CITY shall be addressed as follows:

Brittany Mello
Administrative Services Department
City of Menlo Park
701 Laurel St.

Menlo Park, CA 94025
650-330-6675
[email protected]
Notices required to be given to FIRST PARTY shall be addressed as follows:

Insight North America LLC
200 Park Avenue
New York, NY 10166
[email protected]
Provided that any party may change such address by notice, in writing, to the other party and thereafter notices shall be addressed and transmitted to the new address.

10. HOLD HARMLESS
The FIRST PARTY shall defend, indemnify and hold harmless the CITY, its subsidiary agencies, their officers, agents, employees and servants from all claims, suits or actions that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the FIRST PARTY brought for, or on account of, injuries to or death of any person or damage to property resulting from the performance of any work required by this agreement by FIRST PARTY, its officers, agents, employees and servants.

Nothing herein shall be construed to require the FIRST PARTY to defend, indemnify or hold harmless the CITY, its subsidiary agencies, their officers, agents, employees and servants against any responsibility to liability in contravention of Section 2782.8 of the California Civil Code.

Page G-2.5
4 CC Rev 20210301

11. INSURANCE
A. FIRST PARTY shall not commence work under this agreement until all insurance required under this Section has been obtained and such insurance has been approved by the City, with certificates of insurance evidencing the required coverage.

B. There shall be a contractual liability extending the FIRST PARTY's coverage to include the contractual liability assumed by the FIRST PARTY pursuant to this agreement. These certificates shall specify or be endorsed to provide that thirty (30) days' notice must be given, in writing, to the CITY, at the address shown in Section 9, of any pending cancellation of the policy. FIRST PARTY shall notify CITY of any pending change to the policy. All certificates shall be filed with the City.

1. Workers' compensation and employer's liability insurance:

The FIRST PARTY shall have in effect during the entire life of this agreement workers' compensation and Employer's Liability Insurance providing full statutory coverage. In signing this agreement, the FIRST PARTY makes the following certification, required by Section 18161 of the California Labor Code: "I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of the Code, and I will comply with such provisions before commencing the performance of the work of this agreement" (not required if the FIRST PARTY is a Sole Proprietor).

2. Liability insurance:

The FIRST PARTY shall take out and maintain during the life of this agreement such Bodily Injury Liability and Property Damage Liability Insurance (Commercial General Liability Insurance) on an occurrence basis as shall protect it while performing work covered by this agreement from any and all claims for damages for bodily injury, including accidental death, as well as claims for property damage which may arise from the FIRST PARTY's operations under this agreement, whether such operations be by FIRST PARTY or by any sub-consultant or by anyone directly or indirectly employed by either of them. The amounts of such insurance shall be not less than one million dollars ($1,000,000) per occurrence and one million dollars ($1,000,000) in aggregate, or one million dollars ($1,000,000) combined single limit bodily injury and property damage for each occurrence. FIRST PARTY shall provide the CITY with acceptable evidence of coverage. FIRST PARTY shall maintain Automobile Liability Insurance pursuant to this agreement in an amount of not less than one million dollars ($1,000,000) for each accident combined single limit or not less than one million dollars ($1,000,000) for any one (1) person, and one million dollars ($1,000,000) for any one (1) accident, and Three Hundred Thousand Dollars, ($300,000) property damage.

3. Professional liability insurance:

FIRST PARTY shall maintain a Certificate of Insurance of professional liability insurance, protecting it against claims arising out of the negligent acts, errors, or omissions of FIRST PARTY pursuant to this agreement, in the amount of not less than one million dollars ($1,000,000) per claim and in the aggregate. Said professional liability insurance is to be kept in force for not less than one (1) year after completion of services described herein.

C. CITY and its subsidiary agencies, and their officers, agents, employees and servants shall be named as additional insured on any such Certificate of Insurance of Commercial General Liability and Automobile Liability Insurance, (but not for the Professional Liability and workers' compensation), which shall also contain a provision that the insurance afforded thereby to the CITY, its subsidiary agencies, and their officers, agents, employees, and servants shall be primary insurance to the full limits of liability of the policy, and that if the CITY, its subsidiary agencies and their officers and employees have other insurance against a loss covered by a policy, such other insurance shall be excess insurance only.

D. In the event of the breach of any provision of this Section, or in the event any notice is received which indicates any required insurance coverage will be diminished or canceled, CITY, at its option, may, notwithstanding any other provision of this agreement to the contrary, immediately declare a material breach of this agreement and suspend all further work pursuant to this agreement.

E. Before the execution of this agreement, any deductibles or self-insured retentions must be declared to and approved by CITY.

Page G-2.6
5 CC Rev 20210301

12. PAYMENT OF PERMITS/LICENSES
Contractor shall obtain any license, permit, or approval if necessary from any agency whatsoever for the work/services to be performed, at his/her own expense, before commencement of said work/services or forfeit any right to compensation under this agreement.

13. RESPONSIBILITY AND LIABILITY FOR SUB-CONSULTANTS AND/OR SUBCONTRACTORS Approval of or by CITY shall not constitute nor be deemed a release of responsibility and liability of FIRST PARTY or its sub-consultants and/or subcontractors for the accuracy and competency of the designs, working drawings, specifications or other documents and work, nor shall its approval be deemed to be an assumption of such responsibility by CITY for any defect in the designs, working drawings, specifications or other documents prepared by FIRST PARTY or its sub-consultants and/or subcontractors.

14. OWNERSHIP OF WORK PRODUCT
Work products of FIRST PARTY for this project, which are delivered under this agreement or which are developed, produced and paid for under this agreement, shall become the property of CITY. The reuse of FIRST PARTY’s work products by City for purposes other than intended by this agreement shall be at no risk to FIRST PARTY.

15. REPRESENTATION OF WORK
Any and all representations of FIRST PARTY, in connection with the work performed or the information supplied, shall not apply to any other project or site, except the project described in Exhibit "A" or as otherwise specified in Exhibit "A."

16. TERMINATION OF AGREEMENT
A. CITY may give thirty (30) days written notice to FIRST PARTY, terminating this agreement in whole or in part at any time, either for CITY's convenience or because of the failure of FIRST PARTY to fulfill its contractual obligations or because of FIRST PARTY's change of its assigned personnel on the project without prior CITY approval. Upon receipt of such notice, FIRST PARTY shall:

1. Immediately discontinue all services affected (unless the notice directs otherwise); and

2. Deliver to the CITY all data, drawings, specifications, reports, estimates, summaries, and such other information and materials as may have been accumulated or produced by FIRST PARTY in performing work under this agreement, whether completed or in process.

B. If termination is for the convenience of CITY, an equitable adjustment in the contract price shall be made, but no amount shall be allowed for anticipated profit on unperformed services.

C. If the termination is due to the failure of FIRST PARTY to fulfill its agreement, CITY may take over the work and prosecute the same to completion by agreement or otherwise. In such case, FIRST PARTY shall be liable to CITY for any reasonable additional cost occasioned to the CITY thereby.

D. If, after notice of termination for failure to fulfill agreement obligations, it is determined that FIRST PARTY had not so failed, the termination shall be deemed to have been effected for the convenience of the CITY. In such event, adjustment in the contract price shall be made as provided in Paragraph B of this Section.

E. The rights and remedies of the CITY provided in this Section are in addition to any other rights and remedies provided by law or under this agreement.

F. Subject to the foregoing provisions, the CITY shall pay FIRST PARTY for services performed and expenses incurred through the termination date.

Page G-2.7
6 CC Rev 20210301
G. The FIRST PARTY may give 30 days written notice to CITY, terminating this Agreement in whole or in part, at any time.

17. INSPECTION OF WORK
It is FIRST PARTY's obligation to make the work product available for CITY's inspections and periodic reviews upon request by CITY.

18. COMPLIANCE WITH LAWS
It shall be the responsibility of FIRST PARTY to comply with all State and Federal Laws applicable to the work and services provided pursuant to this agreement, including but not limited to compliance with prevailing wage laws, if applicable.

19. BREACH OF AGREEMENT
A. This agreement is governed by applicable federal and state statutes and regulations. Any material deviation by FIRST PARTY for any reason from the requirements thereof, or from any other provision of this agreement, shall constitute a breach of this agreement and may be cause for termination at the election of the CITY.

B. The CITY reserves the right to waive any and all breaches of this agreement, and any such waiver shall not be deemed a waiver of any previous or subsequent breaches. In the event the CITY chooses to waive a particular breach of this agreement, it may condition same on payment by FIRST PARTY of actual damages occasioned by such breach of agreement.

20. SEVERABILITY
The provisions of this agreement are severable. If any portion of this agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect unless amended or modified by the mutual consent of the parties.

21. CAPTIONS
The captions of this agreement are for convenience and reference only and shall not define, explain, modify, limit, exemplify, or aid in the interpretation, construction, or meaning of any provisions of this agreement.

22. LITIGATION OR ARBITRATION
In the event that suit or arbitration is brought to enforce the terms of this agreement, the prevailing party shall be entitled to litigation costs and reasonable attorneys' fees. The Dispute Resolution provisions are set forth on Exhibit "B," ‘Dispute Resolution’ attached hereto and by this reference incorporated herein.

The FIRST PARTY shall not be liable for any indirect, special or consequential loss or damage, any loss of profit or business opportunity, or any loss of goodwill, whether or not within the knowledge or contemplation of the FIRST PARTY.

23. RETENTION OF RECORDS
Contractor shall maintain all required records for three years after the City makes final payment and all other pending matters are closed, and shall be subject to the examination and /or audit of the City, a federal agency, and the state of California.

24. TERM OF AGREEMENT
This agreement shall remain in effect for the period of July 1, 2023 through June 30, 2026 unless extended, amended, or terminated in writing by CITY.

Page G-2.8
7 CC Rev 20210301

25. ENTIRE AGREEMENT
This document constitutes the sole agreement of the parties hereto relating to said project and states the rights, duties, and obligations of each party as of the document's date. Any prior agreement, promises, negotiations, or representations between parties not expressly stated in this document are not binding.

All modifications, amendments, or waivers of the terms of this agreement must be in writing and signed by the appropriate representatives of the parties to this agreement.

26. STATEMENT OF ECONOMIC INTEREST
Consultants, as defined by Section 18701 of the Regulations of the Fair Political Practices Commission, Title 2, Division 6 of the California Code of Regulations, are required to file a Statement of Economic Interests with 30 days of approval of a contract services agreement with the City of its subdivisions, on an annual basis thereafter during the term of the contract, and within 30 days of completion of the contract.

Based upon review of the Consultant’s Scope of Work and determination by the City Manager, it is determined that Consultant IS NOT required to file a Statement of Economic Interest. A statement of Economic Interest shall be filed with the City Clerk’s office no later than 30 days after the execution of the agreement.

27. THIRD PARTY CUSTODIAL
CITY shall select a custodian (the “Custodian”) to hold the portfolio assets in safekeeping for CITY and to take all necessary steps to settle purchases, sales and other transactions under this Agreement made by FIRST PARTY, including delivery of certificates, payment of funds, collection of income, dividends, and other distributions, and such other acts as may be necessary to fulfill such custodial responsibilities.

FIRST PARTY shall not have custody, possession or responsibility for the custody of the assets (including for purposes of the ‘custody rule’ under Rule 206(4)-2 of the Advisers Act), and shall not be liable for any act or omission of the Custodian.

CITY shall be solely responsible for all fees involved with any custodial arrangements. CITY acknowledges that the Custodian’s statements are the official books and records of the portfolio. FIRST PARTY shall give notice and proper instructions with respect to transactions in such reasonable manner as shall be agreed upon with the Custodian and CITY. In the event of a conflict between the provisions of this Agreement and the custody agreement between the Custodian and CITY, the terms of this Agreement shall control. CITY acknowledges and agrees FIRST PARTY has not recommended, requested or required the use of Custodian to CITY. CITY acknowledges that the Custodian’s statements are the official books and records of the portfolio.

SIGNATURE PAGE TO FOLLOW
Page G-2.9
8 CC Rev 20210301
IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first above written.

FOR FIRST PARTY:

Signature Date
Printed name Title
Tax ID#
APPROVED AS TO FORM:

Nira F. Doherty, City Attorney Date
FOR CITY OF MENLO PARK:

Justin I.C. Murphy, City Manager Date
ATTEST:

Judi A. Herren, City Clerk Date
Page G-2.10
9 CC Rev 20210301
EXHIBIT “A” – SCOPE OF SERVICES
A1.SCOPE OF WORK
FIRST PARTY agrees to provide consultant services for CITY’s Administrative Services Department. In the event of any discrepancy between any of the terms of the FIRST PARTY’s proposal and those of this agreement, the version most favorable to the CITY shall prevail. FIRST PARTY shall provide the following services:

Provide consultant services set forth in Exhibit A -1, attached hereto.

FIRST PARTY agrees to perform these services as directed by the CITY in accordance with the standards of its profession and CITY’s satisfaction.

A2.COMPENSATION
CITY shall pay FIRST PARTY an all-inclusive fee as described in Exhibit "A," Scope of Services. All payments, shall be inclusive of all indirect and direct charges to the Project incurred by FIRST PARTY.

The CITY reserves the right to withhold payment if the City determines that the quantity or quality of the work performed is unacceptable.

FIRST PARTY's fee for the services as set forth herein shall be considered as full compensation for all indirect and direct personnel, materials, supplies and equipment, and services incurred by FIRST PARTY and used in carrying out or completing the work.

Payments shall be monthly for the invoice amount or such other amount as approved by CITY. As each payment is due, the FIRST PARTY shall submit a statement describing the services performed to CITY.

Payments are due upon receipt of written invoices. CITY shall have the right to receive, upon request, documentation substantiating charges billed to CITY. CITY shall have the right to perform an audit of the FIRST PARTY's relevant records pertaining to the charges.

A3.SCHEDULE OF WORK
FIRST PARTY’S proposed schedule for the various services required will be set forth in Exhibit A-1.

A4.CHANGES IN WORK -- EXTRA WORK
In addition to services described in Section A1, the parties may from time to time agree in writing that FIRST PARTY, for additional compensation, shall perform additional services including but not limited to:
• Change in the services because of changes in scope of the work. • Additional tasks not specified herein as required by the CITY.

The CITY and FIRST PARTY shall agree in writing to any changes in compensation and/or changes in FIRST PARTY’s services before the commencement of any work. If FIRST PARTY deems work he/she has been directed to perform is beyond the scope of this agreement and constitutes extra work, FIRST PARTY shall immediately inform the CITY in writing of the fact. The CITY shall make a determination as to whether such work is in fact beyond the scope of this agreement and constitutes extra work. In the event that the CITY determines that such work does constitute extra work, it shall provide compensation to the FIRST PARTY in accordance with an agreed cost that is fair and equitable. This cost will be mutually agreed upon by the CITY and FIRST PARTY. A supplemental agreement providing for such compensation for extra work shall be negotiated between the CITY and the FIRST PARTY. Such supplemental agreement shall be executed by the FIRST PARTY and may be approved by the City Manager upon recommendation of the Administrative Services Director.

Page G-2.11
10 CC Rev 20210301
A5.BILLINGS
FIRST PARTY’s bills shall include the following information: A brief description of services performed, project title and the agreement number; the date the services were performed; the number of hours spent and by whom; the current contract amount; the current invoice amount; Except as specifically authorized by CITY, FIRST PARTY shall not bill CITY for duplicate services performed by more than one person. In no event shall FIRST PARTY submit any billing for an amount in excess of the maximum amount of compensation provided in Section A2.

The expenses of any office, including furniture and equipment rental, supplies, salaries of employees, telephone calls, postage, advertising, and all other expenses incurred by FIRST PARTY in the performances of this agreement shall be incurred at the FIRST PARTY’s discretion. Such expenses shall be FIRST PARTY’s sole financial responsibility.

Page G-2.12
11 CC Rev 20210301
EXHIBIT “B” - DISPUTE RESOLUTION
B1.0 All claims, disputes and other matters in question between the FIRST PARTY and CITY arising out of, or relating to, the contract documents or the breach thereof, shall be resolved as follows:

B2.0 Mediation
B2.1 The parties shall attempt in good faith first to mediate such dispute and use their best efforts to reach agreement on the matters in dispute. After a written demand for non-binding mediation, which shall specify in detail the facts of the dispute, and within ten (10) days from the date of delivery of the demand, the matter shall be submitted to a mutually agreeable mediator. The Mediator shall hear the matter and provide an informal opinion and advice, none of which shall be binding upon the parties, but is expected by the parties to help resolve the dispute. Said informal opinion and advice shall be submitted to the parties within twenty (20) days following written demand for mediation. The Mediator’s fee shall be shared equally by the parties. If the dispute has not been resolved, the matter shall be submitted to arbitration in accordance with Paragraph B3.1.

B3.0 Arbitration
B3.1 Any dispute between the parties that is to be resolved by arbitration as provided in Paragraph B2.1 shall be settled and decided by arbitration conducted by the American Arbitration Association in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association, as then in effect, except as provided below. Any such arbitration shall be held before three arbitrators who shall be selected by mutual agreement of the parties; if agreement is not reached on the selection of the arbitrators within fifteen (15) days, then such arbitrator(s) shall be appointed by the presiding Judge of the court of jurisdiction of the agreement.

B3.2 The provisions of the Construction Industry Arbitration Rules of the American Arbitration Association shall apply and govern such arbitration, subject, however to the following:

B3.3 Any demand for arbitration shall be writing and must be made within a reasonable time after the claim, dispute or other matter in question as arisen. In no event shall the demand for arbitration be made after the date that institution of legal or equitable proceedings based on such claim, dispute or other matter would be barred by the applicable statute of limitations.

B3.4 The arbitrator or arbitrators appointed must be former or retired judges, or attorneys at law with last ten (10) years’ experience in construction litigation.

B3.5 All proceedings involving the parties shall be reported by a certified shorthand court reporter, and written transcripts of the proceedings shall be prepared and made available to the parties.

B3.6 The arbitrator or arbitrators must be made within and provide to the parties factual findings and the reasons on which the decisions of the arbitrator or arbitrators is based.

B3.7 Final decision by the arbitrator or arbitrators must be made within ninety (90) days from the date of the arbitration proceedings are initiated.

B3.8 The prevailing party shall be awarded reasonable attorneys’ fees, expert and non-expert witness costs and expenses, and other costs and expenses incurred in connection with the arbitration, unless the arbitrator or arbitrators for good cause determine otherwise.

B3.9 Costs and fees of the arbitrator or arbitrators shall be borne by the non-prevailing party, unless the arbitrator or arbitrators for good cause determine otherwise.

B3.10 The award or decision of the arbitrator or arbitrators, which may include equitable relief, shall be final, and judgment may be entered on it in accordance with applicable law in any court having jurisdiction over the matter.

Page G-2.13
Investment advisory services professional services
agreement
Exhibit A
Scope of services
The Investment Advisor shall be a registered Investment Advisor as defined and regulated by the Securities and Exchange Commission (SEC) and shall be registered in the state of California (State). The Investment Advisor shall be either independent of any financial institution or securities brokerage firm or shall fully disclose any relationships with such financial institution and/or securities brokerage firm and shall describe the length and extent of such relationship.

Specific responsibilities of the selected investment adviser will include, but are not limited to the following:
• Advise the City on all matters pertaining to the investment of funds. • Assist the City with cash flow/maturity analysis.
• Provide non-discretionary investment advisory services:
• Execute investment trades on behalf of the City in accordance with the Investment Policy, all applicable statutes and bond covenants, if applicable.
• Solicit competitive quotes from financial institutions and broker/dealers for permitted investment securities and maintain written documentation of such quotes for review by the City, upon request. • Interface with the City’s custodian and staff to assure the coordination of investments, delivery of securities and availability of funds as needed. (All securities will be held by a third party custodian in the name of the City and all transactions will settle on a “delivery versus payment” basis. The advisor will not provide custodial services or safekeeping.)
• Monitor the portfolio in relation to the investment market to determine if investments should be repositioned. • Monitor the credit worthiness of financial institutions and investments in the portfolio. • Provide input regarding the appropriate measurement of portfolio performance and benchmarks to assess performance.
• Provide monthly reports on investment activity, earnings and the market value of the portfolio holdings. Provide quarterly reports showing the portfolio’s rate of return and sufficient detail for accounting (recording and management reporting) and financial statement (auditing) purposes. Rate the City’s investments based upon areasonable Environmental, Social, Governance (ESG) methodology. • Annually, review the City's Investment Policy and make recommendations for changes as appropriate. • Communicate regularly with City staff on investment decisions and strategy. • Provide information regarding current and forecasted market and economic conditions, as needed. • Attend meetings with City staff, Finance and Audit Committee, and City Council as requested.

This scope of work is a general guide to the work the city expects to be performed and is not a complete listing of all services that may be required or desired.

Compensation
Subject to a $2,500 monthly minimum per portfolio, the investment advisor fees shall be billed on a monthly basis in accordance with the following amount of assets managed for any given month. • Five basis points on the first $150 million
• Three basis points over $150 million
Page G-2.14
CD rev 20221028
RFP – INVESTMENT ADVISORY SERVICES
Mary Morris-Mayorga
Administrative Services Director – Retired Annuitant
[email protected]
Purpose
The City of Menlo Park seeks proposals for investment advisory services of the City’s investment portfolio and its related operations from qualified firms.

Background
The City of Menlo Park is a city of beautiful, tree-lined neighborhoods and active commercial districts. Located conveniently between the major metropolitan areas of San Francisco and San Jose, Menlo Park is home to approximately 36,000 residents in its 19 square miles. Menlo Park’s residents reflect a range of backgrounds and interests who tend to be actively engaged in community life. Known worldwide as the “Capital of Venture Capital,” Menlo Park is well situated to benefit from and help shape new technologies and markets originating from the Silicon Valley. The city hosts such major employers as Facebook, SRI International, Intersect ENT, Grail and Pacific Biosciences of California. Menlo Park, like many communities, is one in which disparities exist. The city is committed to acknowledging those disparities, as well as the history that produced them, and improving the quality of life of all residents.

Mission statement
“It is the mission of the city government to ensure that Menlo Park is a desirable and vibrant community in which to live and do business and to respond to the values and priorities of the residents so as to provide for the community’s current and future needs.”
Organizational structure
The City of Menlo Park is a full-service general law city. A five-member City Council, elected by district, serves as the governing body of the city. The City Council appoints a city manager to serve as the chief executive officer of the city and is responsible for its day-to-day operations. The City Council also appoints the city attorney. Fire services in Menlo Park and surrounding communities are delivered by the Menlo Park Fire Protection District, an independent special district.

The City’s fiscal year begins July 1 and ends June 30. For Fiscal Year 2022-23, the City of Menlo Park has a total adopted budget of approximately $123.6 million for all funds of which the General Fund makes up approximately $80.4 million of that total. While City operations generate revenue from various public services, such as licensing, permitting and building activity, the three primary sources of revenue for the General Fund are sales tax, property tax and transient occupancy tax (TOT). Visit menlopark.gov/budget for the most recent City Operating and Capital Improvement Program Budget and the Annual Comprehensive Financial Report (ACFR).

RFP schedule
Listed below are the events and target dates. The City reserves the right to change these events and dates at any time.

RFP issued Dec. 21, 2022
Proposals due 5 p.m., Jan. 17, 2023
Finalist notified Jan. 23, 2023
Contract awarded Feb. 14, 2023
Scope of services
The City of Menlo Park is seeking proposals from qualified firms interested in providing investment advisory services for the City’s investment portfolio which has a current value of approximately $173 million. Investments are guided by the City’s Investment Policy (Attachment A) in accordance with the objectives: preservation of invested funds; maintenance of sufficient cash to meet anticipated cash flow; and attainment of a market rate of return. Services will be provided pursuant to the City’s standard professional services agreement (Attachment B).

The Investment Advisor shall be a registered Investment Advisor as defined and regulated by the Securities and Exchange Commission (SEC) and shall be registered in the state of California (State). The Investment Advisor shall be either independent of any financial institution or securities brokerage firm or shall fully disclose any relationships with such financial institution and/or securities brokerage firm and shall describe the length and extent of such relationship.

ATTACHMENT B Page G-2.15
2 CD rev 20221028
• Execute investment trades on behalf of the City in accordance with the Investment Policy, all applicable statutes and bond covenants, if applicable.
• Solicit competitive quotes from financial institutions and broker/dealers for permitted investment securities and maintain written documentation of such quotes for review by the City, upon request. • Interface with the City’s custodian and staff to assure the coordination of investments, delivery of securities and availability of funds as needed. (All securities will be held by a third party custodian in the name of the City and all transactions will settle on a “delivery versus payment” basis. The advisor will not provide custodial services or safekeeping.)
• Monitor the portfolio in relation to the investment market to determine if investments should be repositioned. • Monitor the credit worthiness of financial institutions and investments in the portfolio. • Provide input regarding the appropriate measurement of portfolio performance and benchmarks to assess performance.
• Provide monthly reports on investment activity, earnings and the market value of the portfolio holdings. Provide quarterly reports showing the portfolio’s rate of return and sufficient detail for accounting (recording and management reporting) and financial statement (auditing) purposes. Rate the City’s investments based upon a reasonable Environmental, Social, Governance (ESG) methodology. • Annually, review the City's Investment Policy and make recommendations for changes as appropriate. • Communicate regularly with City staff on investment decisions and strategy. • Provide information regarding current and forecast market and economic conditions, as needed. • Attend meetings with City staff, Finance and Audit Committee, and City Council as requested.

This scope of work is a general guide to the work the city expects to be performed and is not a complete listing of all services that may be required or desired.

General requirements
The city reserves the right to reject any or all responses, to waive any informality in any responses, and to select the consulting firm that best meets the city’s needs.

Responses must be submitted no later than the date and time stated in this request for proposals.

Responses shall be reviewed and rated as set forth in the selection process section of this request for proposals. The City will then determine which consulting firm best meets the city requirements. The City reserves the right to negotiate final pricing with the most qualified consulting firm.

Upon award of the contract, it is expected that the successful proposer will accept the agreement terms and conditions “as is” without modification. Any contract modifications are to be stated upfront, at the time of submittal. The proposer shall furnish the City with such additional information as the City may reasonably require. All data, documents and other products used or developed during performance of the services will remain the property of the city.

Submittal requirements
All proposals must be submitted according to the specifications in the section above. Failure to adhere to these specifications may be cause for rejection of the proposal. Proposals shall be submitted electronically through the city bid portal at menlopark.gov/RFP.

NOTE: Proposals must be received no later than 5 p.m., Tuesday, Jan. 17, 2023. All proposals received after that time will not be considered. The proposer shall submit its proposal electronically in PDF format. No paper proposals will be accepted.

The City requests that responses be organized in a logical format that is relevant to these services. The responses shall also be concise, excluding excessive or irrelevant material.

All proposals submitted to the city must contain the following minimum information:
a. A cover letter with contact information.
b. Company and General Information
 Company name and address.
 Letter of transmittal signed by an individual authorized to bind the respondent, stating that the respondent has read and will comply with all terms and conditions of the RFP.  General information about the primary contact who would be able to answer questions about the proposal.

Include name, title, telephone number and email address of the individual. c. Qualifications and Experience of the firm
 Firm Background and Organization
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 Describe the organization, the type of services offered, ownership of your firm, and date founded. Specify the number of years your organization has been providing investment management services.  Describe the firm's sources of revenue, categorized by retail and institutional accounts.  Within the past three years, have there been any significant developments in your organization (changes in ownership, new business ventures)? Do you expect any changes in the near future?  Provide a copy of your firm's most recent audited financial statement as an appendix.  Is your firm a registered investment advisor under the Investment Advisor's Act of 1940? Please attach Part 2A of your most recent Form ADV as an appendix.
 Describe any SEC, regulatory censure or litigation involving your firm, any officer or employee at any time for the last 10 years.
 Fully describe the firm's professional/errors and omissions insurance coverage. d. Questions/Response to Scope of Services
 Key Proposed Personnel and Team Organization
- Provide the name, title, phone number and email address of the primary contact person(s) assigned to this account.
- Identify the investment professionals who will be involved in the decision-making process for the City's portfolio. Information must include:
- Proposed role with the City;
- Biographical information;
- Experience working with other California public agencies; - Number of years of experience in this field; and
- Number of years with your firm.
- What is the backup if the primary portfolio manager or client contact is away? - Describe the firm's in-house investment research and analytical capabilities. What outside investment and market resources are used by the firm on a regular basis? - Describe the firm's training and education efforts to keep the firm's investment professionals informed of developments relevant to government entities.
 Investment Philosophy/Approach
- Describe your firm's investment philosophy for public (government) clients. Briefly describe your firm's investment management philosophy regarding duration, maturity, investment types, credit quality and yield. - Describe the process you would recommend for establishing the investment objectives and constraints for the City's assets.
- Describe your firm's trading methodology and approach. - Describe your firm's decision-making process in terms of structure, such as committees and its membership, meeting frequency, responsibilities, integration of research ideas and portfolio management. - How are brokers/dealers selected? What process do you have in place to monitor brokers/dealers after they have been approved?
- Describe your firm's credit philosophy and review process. Who at the firm is responsible for conducting credit research and monitoring?
 Reporting/Performance Measurement
- Describe the records you would keep, the reports you would make to the City and the frequency of those reports. Provide samples of records and reports typically provided to clients. - Describe how you typically report performance. Include a copy of a quarterly performance report to a client similar to the City. (You do not need to identify the client and may redact any client names within the sample report.)
- Describe and indicate what national standards the firm uses to compute performance.  Control
- Describe the procedures used to ensure that client portfolios comply with investment objectives and policies. - Describe the firm's security environment. Specifically cover the physical and digital security and software safeguards that you have put in place to control access to portfolio reporting systems and client account information.
 Additional Information
- Briefly describe any additional feature, attributes, or conditions which the City should consider in the selection process
e. Fees
 Provide a complete fee schedule that would apply to this portfolio(s) to accomplish the requirements of the Scope of Services.
 What additional expenses not covered through the proposed fee structure will be expected in order to implement your investment advisory services?
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 Does the firm act as a broker or as a dealer in securities or receive any other form of additional compensation (including soft dollars) related to this project aside from the direct fee paid by the City? f. References
 Provide at least three public agency references for which you have provided the type of services the firm is proposing to provide. Include the date the(s) the services were furnished, the client name, address, and the name and phone number of the individual the City may contact. g. Required Appendices
 Audited Financial Statement
 Resumes of Key Investment Professionals
 Sample Reports
Selection process
The City will determine the process by which the proposals are reviewed. Proposed fee arrangements, experience, service delivery and other qualifications will all be important selection factors. The top-ranked firms/individual may be requested to be interviewed. Interviews will allow the designated firms or individuals an opportunity to answer any questions the City may have regarding their proposals. Participation in the interviews will be at no cost to the City. The City will make the final determination of the successful firm/individual.

The City reserves the rights and options to
• Reject any or all of the submittals
• Waive any of the provisions in the request for proposals • Issue subsequent requests for proposals
• Cancel the request for proposal process
• Waive any technical error in the responses it receives, and negotiate with any, all, or none of the respondents to the request for proposals in regard to statements or explanation of information that may reflect negatively on the consulting firm which the City may discover during the background process, i.e., disclosure of judgments or other findings against the firm or its personnel.

Communications and questions
Should discrepancies or omissions be found in this RFP or should there be a need to clarify this RFP, questions or comments regarding this RFP must be put in writing and received by the City. Written questions may be submitted before 5 p.m., Wednesday, Jan. 11, 2023, and submitted electronically through the city bid portal at menlopark.gov/RFP or via email to:
• Administrative Services Director – Retired Annuitant Mary Morris-Mayorga at [email protected] • Copy to: Interim Finance Director Marvin Davis at [email protected] Responses from the City will be communicated in writing to all recipients of this RFP. All addenda shall become part of this RFP. The City shall not be responsible for nor be bound by any oral instructions, interpretations or explanations issued by the City.

Compensation
All tasks within the enclosed Scope of Work shall be included within the proposal’s fee schedule and itemized according to required and optional tasks.

Proposals shall describe how the firm intends to bill for the services provided, special services subject to additional charges, and the rates that would be charged for those special services. If hourly billing rates would be charged and those rates would vary for different types of work, such as litigation, indicate what rates will be charged for each type of service. Proposals shall identify what charges the firm will impose for travel time.

Attachments
A. City Investment Policy
B. City’s standard professional services agreement
Page G-2.18
RESOLUTION NO. 6749

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK

ADOPTING THE INVESTMENT POLICY FOR THE CITY AND FORMER

COMMUNITY DEVELOPMENT AGENCY TO BECOME EFFECTIVE

IMMEDIATELY
The City of Menlo Park, acting by and through its City Council, having considered and been fully advised in the matter and good cause appearing therefore.

BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of Menlo Park that the City Council does hereby adopt and approve the Investment Policy, attached hereto as Exhibit A.

I, Judi A. Herren, City Clerk of the City of Menlo Park, do hereby certify that the above and foregoing City Council resolution was duly and regularly passed and adopted at a meeting of said City Council on the twenty-eighth day of June, 2022, by the following votes:

AYES: Combs, Nash, Taylor, Wolosin
NOES: None
ABSENT: Mueller
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this twenty-ninth day of June, 2022.

Judi A. Herren, City Clerk
Exhibits:

A. Investment Policy
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INVESTMENT POLICY
City Council Policy #CC-22-020
Adopted June 28, 2022
Resolution No. 6749
Purpose
The City of Menlo Park (the “City”), incorporated in 1927, is located between San Francisco and Oakland on the North, and San Jose on the South. The city is governed by five members elected by district to City Council.

The City Council has adopted this Investment Policy (the “Policy”) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the unexpended funds of the city. All such investments will be made in accordance with the Policy and with applicable sections of the California Government Code.

This Policy was endorsed and adopted by the City Council of the City of Menlo Park on the twenty-eighth of June 2022.

It replaces any previous investment policy or investment procedures of the city.

Scope
The provisions of this Policy shall apply to all financial assets of the city and the former Community Development Agency of Menlo Park as accounted for in the city’s comprehensive annual financial report, with the exception of bond proceeds, which shall be governed by the provisions of the related bond indentures or resolutions.

All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the contributing funds based upon the proportion of the respective average balances relative to the total pooled balance in the investment portfolio. Investment income shall be distributed to the individual funds on a quarterly basis.

Objectives
The city’s funds shall be invested in accordance with all applicable municipal codes and resolutions, California statutes, and federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:

1. Preservation of capital and protection of investment principal through diversification to mitigate risk.

2. Maintenance of sufficient liquidity to meet anticipated cash flows.

3. Attainment of a market value rate of return.

Delegation of authority
The management responsibility for the city’s investment program is delegated annually by the City Council to the chief financial officer (the “CFO”) pursuant to California Government Code Section 53607. The City’s administrative services director or designee serves as the CFO. In the absence of the CFO, the finance and budget manager is authorized to conduct investment transactions. The CFO may delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members.

The CFO shall maintain a list of persons authorized to transact securities business for the city. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.

The CFO shall develop written administrative procedures and internal controls, consistent with this Policy, for the operation of the city's investment program. Such procedures shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the city.

The city may engage the support services of outside investment advisors in regard to its investment program, so long as it can be clearly demonstrated that these services produce a net financial advantage or necessary financial protection of the city's financial resources.

Resolution No. 6749 EXHIBIT A

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INVESTMENT POLICY
City Council Policy #CC-22-020 2
Adopted June 28, 2022
Resolution No. 6749

Prudence
The standard of prudence to be used for managing the city's investments shall be California Government Code Section 53600.3, the prudent investor standard which states, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
The city's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The city recognizes that no investment is totally without risk and that the investment activities of the city are a matter of public record. Accordingly, the city recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the city.

The CFO and authorized investment personnel acting in accordance with written procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that the deviations from expectations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments.

Ethic and conflicts of interest
Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall disclose to the city manager any business interests they have in financial institutions that conduct business with the city and they shall subordinate their personal investment transactions to those of the city. In addition, the city manager, the assistant city manager and the administrative services director shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.

Authorized securities and transactions
All investments and deposits of the city shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that, pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds.

Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy or past city investment practices, the city may delay adherence to the new requirements when it is deemed in the best interest of the city to do so. In such instances, after consultation with the city’s attorney, the CFO will present a recommended course of action to the City Council for approval.

The city has further restricted the eligible types of securities and transactions as follows:

1. United States treasury bills, notes, bonds, or strips with a final maturity not exceeding five years from the date of trade settlement.

2. Federal agency debentures, federal agency mortgage-backed securities, and mortgage-backed securities with a final maturity not exceeding five years from the date of trade settlement.

3. Federal instrumentality (government-sponsored enterprise) debentures, discount notes, callable securities, step- up securities, and mortgage-backed securities with a final maturity not exceeding five years from the date of trade settlement. Subordinated debt may not be purchased.

4. Medium-term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Medium-term notes shall have a final maturity not exceeding five years from the date of trade settlement and shall be rated at least “A” or the equivalent by a nationally recognized statistical ratings organization (NRSRO), at the time of purchase.

5. Negotiable certificates of deposit with a maturity not exceeding five years from the date of trade settlement, in state or nationally chartered banks or savings banks that are insured by the FDIC, subject to the limitations of California Government Code Section 53638. Certificates of Deposits may be purchased only from financial institutions that meet the credit criteria set forth in the section of this Policy, “Selection of Banks and Savings Banks.” Depending on their maturity, Negotiable Certificates of Deposit shall have a short-term rating of at least A-1+ or Resolution No. 6749

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INVESTMENT POLICY
City Council Policy #CC-22-020 3
Adopted June 28, 2022
Resolution No. 6749

the equivalent by a NRSRO at the time of purchase.

6. Non-negotiable certificates of deposit and savings deposits with a maturity not exceeding five years from the date of trade settlement, in FDIC insured state or nationally chartered banks or savings banks that qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5. Deposits exceeding the FDIC insured amount shall be secured pursuant to California Government Code Section 53652.

7. Municipal and State obligations:

A. Municipal bonds with a final maturity not exceeding five years from the date of trade settlement. Such bonds include registered treasury notes or bonds of any of the 50 United States and bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the states. Such obligations must be rated at least “A”, or the equivalent, by a NRSRO at the time of purchase.

B. In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, include bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Such obligations must be rated at least “A”, or the equivalent, by a NRSRO at the time of purchase.

8. Prime commercial paper with a maturity not exceeding 270 days from the date of trade settlement with the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph A. or sub-paragraph B. below:

A. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500 million, and (3) have debt other than commercial paper, if any, that is rated in at least the " A" category or the equivalent by an NRSRO.

B. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program-wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond, and (3) have commercial paper that is rated at least “A-1” or the equivalent or higher by a NRSRO.

9. Eligible banker’s acceptances with a maturity not exceeding 180 days from the date of trade settlement, issued by a national bank with combined capital and surplus of at least $250 million, whose deposits are insured by the FDIC, and whose senior long-term debt is rated at least “A” or the equivalent by a NRSRO at the time of purchase.

10. Repurchase agreements with a final termination date not exceeding 30 days collateralized by the U.S. Treasury obligations, federal agency securities, or federal instrumentality securities listed in items #1 through #3 above, with the maturity of the collateral not exceeding five years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the city’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value of the funds borrowed. Collateral shall be held in the city's custodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily.

Repurchase agreements shall be entered into only with banks and with broker/dealers who are recognized as Primary Dealers with the Federal Reserve Bank of New York, or with firms that have a primary dealer within their holding company structure. Repurchase agreement counterparties shall execute a city approved Master Repurchase Agreement with the city. The CFO shall maintain a copy of the city's approved Master Repurchase Agreement along with a list of the banks and broker/dealers who have executed same.

11. State of California’s Local Agency Investment Fund (LAIF), pursuant to California Government Code Section 16429.1

12. Money market funds registered under the Investment Company Act of 1940 which (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in this Policy and (4) have a rating of at least “AAA” or the equivalent by at least two NRSROs.

Securities that have been downgraded to a level that is below the minimum ratings described herein may be sold or held at the city’s discretion.

It is the intent of the city that the foregoing list of authorized securities and transactions be strictly interpreted. Any deviation from this list must be preapproved by resolution of the City Council.

Resolution No. 6749

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INVESTMENT POLICY
City Council Policy #CC-22-020 4
Adopted June 28, 2022
Resolution No. 6749

Investment diversification
The city shall diversify its investments to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets, and the city’s anticipated cash flow needs.

Securities shall not exceed the following maximum limits as a percentage of the total portfolio:

Type of security Maximum percentage of the total portfolio U.S. Treasury obligations 100%
Federal agency securities 100%†
Federal instrumentality securities† 100% †
Repurchase agreements 100%
Local government investment pools 100%
Aggregate amount of Certificates of deposit, negotiable and non-negotiable
25%
Aggregate amount of prime commercial paper* 25%
Aggregate amount of money market funds * 20%
Aggregate amount of municipal bonds* 30%
Aggregate amount of eligible banker’s acceptances* 15%
Aggregate amount of medium-term notes* 30%
† No more than 20% of the city’s total portfolio shall be invested in mortgage-backed securities. *No more than 5% of the city’s total portfolio shall be invested in any one issuer/financial institution and/or its affiliates.

Portfolio maturities and liquidity
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The city will not invest in securities maturing more than five years from the date of trade settlement unless the City Council has, by resolution, granted authority to make such an investment at least three months prior to the date of investment. The sole maturity distribution range shall be from zero to five years from the date of trade settlement.

Selection of broker/dealers
The CFO shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the city to purchase securities only from those authorized firms. To be eligible, a firm must be licensed by the State of California as a broker/dealer as defined in Section 25004 of the California Corporations Code.

The city may engage the services of investment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved Broker/Dealers. The list of approved firms shall be provided to the city on an annual basis or upon request.

In the event that an external investment advisory firm is not used in the process of recommending a particular transaction, each authorized broker/dealer shall be required to submit and annually update a city approved Broker/Dealer Information Request form which includes the firm's most recent financial statements. The CFO shall maintain a list of the broker/dealers that have been approved by the city, along with each firm's most recent broker/dealer information request form. The city may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in Item 8 of the authorized securities and transactions section of this Policy.

Competitive transactions
Each investment transaction shall be competitively transacted with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction and their bid and offering prices shall be recorded.

If the city is offered a security for which there is no other readily available competitive offering, the CFO will then document quotations for comparable or alternative securities.

Resolution No. 6749

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INVESTMENT POLICY
City Council Policy #CC-22-020 5
Adopted June 28, 2022
Resolution No. 6749

Selection of banks and savings banks
The CFO shall maintain a list of authorized banks and savings banks that are approved to provide banking services for the city. To be eligible to provide banking services, a financial institution shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5 and must be a member of the FDIC.

The city shall utilize S& P Global Financial ratings to perform credit analyses on banks seeking authorization. The analysis shall include a composite rating and individual ratings of liquidity, asset quality, profitability and capital adequacy. Annually, the CFO shall review the most recent credit rating analysis reports performed for each approved bank. Banks that in the judgment of the CFO no longer offer adequate safety to the city shall be removed from the city’s list of authorized banks. Banks failing to meet the criteria outlined above, or in the judgment of the CFO no longer offer adequate safety to the city, will be removed from the list. The CFO shall maintain a file of the most recent credit rating analysis reports performed for each approved bank. Credit analysis shall be performed on a semi-annual basis.

Safekeeping and custody
The CFO shall select one or more financial institutions to provide safekeeping and custodial services for the city, in accordance with the provisions of Section 53608 of the California Government Code. Custodian banks will be selected on the basis of their ability to provide services for the city's account and the competitive pricing of their safekeeping related services. The CFO shall maintain a file of the credit rating analysis reports performed semi- annually for each approved financial institution. A Safekeeping Agreement approved by the city shall be executed with each custodian bank prior to utilizing that bank's safekeeping services.

The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. All securities shall be perfected in the name of the city. Sufficient evidence to title shall be consistent with modern investment, banking and commercial practices.

All investment securities purchased by the city will be delivered by book entry and will be held in third-party safekeeping by a city approved custodian bank, or its Depository Trust Company (DTC) participant account.

Portfolio performance
The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the city’s investments shall be compared to the average yield on the U.S. Treasury security that most closely corresponds to the portfolio’s actual weighted average effective maturity. When comparing the performance of the city’s portfolio, its rate of return will be computed net of all fees and expenses.

Portfolio review and reporting
Credit criteria and maximum percentages listed in this section refer to the credit of the issuing organization and/or maturity at the time the security is purchased. The city may, from time to time, be invested in a security whose rating is downgraded below the minimum ratings set forth in this Policy. In the event a rating drops below the minimum allowed rating category for that given investment type, the administrative services director shall notify the city manager and/or designee and recommend a plan of action. Appropriate documentation of such a review, along with the recommended action and final decision shall be retained for audit.

Quarterly, the CFO shall submit to the City Council a report of the investment earnings and performance results of the city’s investment portfolio. The report shall include the following information:

1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the city;

2. A description of the funds, investments and programs;

3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;

4. A statement of compliance with this Policy or an explanation for non-compliance; and

5. A statement of the ability to meet expenditure requirements for six months, as well as an explanation of why money will not be available if that is the case.

Policy review
This Policy shall be adopted by resolution of the City Council annually. It shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield and diversification and its relevance to current law and economic trends. Any amendments to the Policy shall be reviewed by the City’s Finance and Audit Committee prior to being forwarded to the City Council for approval.

Resolution No. 6749

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INVESTMENT POLICY
City Council Policy #CC-22-020 6
Adopted June 28, 2022
Resolution No. 6749

Procedure history
Action Date Notes
Procedure adoption January 14, 1997 Resolution No. 4784 Procedure adoption February 17, 1998 Resolution No. 4871 Procedure adoption February 2, 1999 Resolution No. 5064 Procedure adoption May 9, 2000 Adopted by minute order
Procedure adoption February 13, 2001 Resolution No. 5283 Procedure adoption February 5, 2002 Resolution No. 5362 Procedure adoption June 24, 2003 Resolution No. 5457
Procedure adoption June 20, 2004 Resolution No. 5545
Procedure adoption August 15, 2005 Resolution No. 5616
Procedure adoption July 25, 2006 Resolution No. 5960
Procedure adoption July 31, 2007 Resolution No. 5759
Procedure adoption September 23, 2008 Resolution No. 5825 Procedure adoption September 1, 2009 Resolution No. 5886 Procedure adoption August 31, 2010 Resolution No. 5957
Procedure adoption September 27, 2011 Resolution No. 6028 Procedure adoption September 18, 2012 Resolution No. 6103 Procedure adoption October 15, 2013 Resolution No. 6171 Procedure adoption August 19, 2014 Resolution No. 6221
Procedure adoption August 25, 2015 Resolution No. 6286
Procedure adoption September 13, 2016 Resolution No. 6343 Procedure adoption August 20, 2019 Adopted by minute order Procedure adoption August 11, 2020 Adopted by minute order Procedure adoption August 17, 2021 Resolution No. 6651
Procedure adoption June 28, 2022 Resolution No. 6749
Resolution No. 6749

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1 CC Rev 20210301
Choose agreement type
City Manager’s Office
701 Laurel St., Menlo Park, CA 94025
tel 650-330-6620
Agreement #:

AGREEMENT FOR SERVICES BETWEEN

THE CITY OF MENLO PARK AND FIRST PARTY
THIS AGREEMENT made and entered into at Menlo Park, California, this _____________________, by and between the CITY OF MENLO PARK, a Municipal Corporation, hereinafter referred to as "CITY," and FIRST PARTY, hereinafter referred to as “FIRST PARTY.” WITNESSETH:

WHEREAS, CITY desires to retain FIRST PARTY to provide certain professional services for CITY in connection with that certain project called: click here to enter text WHEREAS, FIRST PARTY is licensed to perform said services and desires to and does hereby undertake to perform said services.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, PROMISES AND CONDITIONS of each of the parties hereto, it is hereby agreed as follows:

1. SCOPE OF WORK
In consideration of the payment by CITY to FIRST PARTY, as hereinafter provided, FIRST PARTY agrees to perform all the services as set forth in Exhibit "A," Scope of Services.

FIRST PARTY shall commence work immediately upon receipt of a "Notice to Proceed" from CITY.

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2 CC Rev 20210301

4. COMPENSATION AND PAYMENT
A. CITY shall pay FIRST PARTY an all-inclusive fee that shall not exceed $enter amount as described in Exhibit "A," Scope of Services. All payments shall be inclusive of all indirect and direct charges to the Project incurred by FIRST PARTY. The CITY reserves the right to withhold payment if the City determines that the quantity or quality of the work performed is unacceptable.

C. FIRST PARTY shall post in prominent places, available to employees and applicants for employment, notices setting forth the provisions of this non-discrimination clause.

D. FIRST PARTY shall state that all qualified applications will receive consideration for employment without regard to race, color, religion, sex, national origin, marital status or handicap.

E. FIRST PARTY shall comply with Title VI of the Civil Rights Act of 1964 and shall provide such reports as may be required to carry out the intent of this section.

F. FIRST PARTY shall incorporate the foregoing requirements of this section in FIRST PARTY’s agreement with all sub-consultants.

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3 CC Rev 20210301

Department Head
Department
City of Menlo Park
701 Laurel St.

Menlo Park, CA 94025
650-330-xxxx
Email
Notices required to be given to FIRST PARTY shall be addressed as follows:

Name
Company
Address
City, State Zip
Phone
Email
Provided that any party may change such address by notice, in writing, to the other party and thereafter notices shall be addressed and transmitted to the new address.

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4 CC Rev 20210301

B. There shall be a contractual liability endorsement extending the FIRST PARTY's coverage to include the contractual liability assumed by the FIRST PARTY pursuant to this agreement. These certificates shall specify or be endorsed to provide that thirty (30) days' notice must be given, in writing, to the CITY, at the address shown in Section 9, of any pending cancellation of the policy. FIRST PARTY shall notify CITY of any pending change to the policy. All certificates shall be filed with the City.

1. Workers' compensation and employer's liability insurance:

2. Liability insurance:

The FIRST PARTY shall take out and maintain during the life of this agreement such Bodily Injury Liability and Property Damage Liability Insurance (Commercial General Liability Insurance) on an occurrence basis as shall protect it while performing work covered by this agreement from any and all claims for damages for bodily injury, including accidental death, as well as claims for property damage which may arise from the FIRST PARTY's operations under this agreement, whether such operations be by FIRST PARTY or by any sub-consultant or by anyone directly or indirectly employed by either of them. The amounts of such insurance shall be not less than one million dollars ($1,000,000) per occurrence and one million dollars ($1,000,000) in aggregate, or one million dollars ($1,000,000) combined single limit bodily injury and property damage for each occurrence. FIRST PARTY shall provide the CITY with acceptable evidence of coverage, including a copy of all declarations of coverage exclusions. FIRST PARTY shall maintain Automobile Liability Insurance pursuant to this agreement in an amount of not less than one million dollars ($1,000,000) for each accident combined single limit or not less than one million dollars ($1,000,000) for any one (1) person, and one million dollars ($1,000,000) for any one (1) accident, and Three Hundred Thousand Dollars, ($300,000) property damage.

3. Professional liability insurance:

FIRST PARTY shall maintain a policy of professional liability insurance, protecting it against claims arising out of the negligent acts, errors, or omissions of FIRST PARTY pursuant to this agreement, in the amount of not less than one million dollars ($1,000,000) per claim and in the aggregate. Said professional liability insurance is to be kept in force for not less than one (1) year after completion of services described herein.

C. CITY and its subsidiary agencies, and their officers, agents, employees and servants shall be named as additional insured on any such policies of Commercial General Liability and Automobile Liability Insurance, (but not for the Professional Liability and workers' compensation), which shall also contain a provision that the insurance afforded thereby to the CITY, its subsidiary agencies, and their officers, agents, employees, and servants shall be primary insurance to the full limits of liability of the policy, and that if the CITY, its subsidiary agencies and their officers and employees have other insurance against a loss covered by a policy, such other insurance shall be excess insurance only.

E. Before the execution of this agreement, any deductibles or self-insured retentions must be declared to and approved by CITY.

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5 CC Rev 20210301

1. Immediately discontinue all services affected (unless the notice directs otherwise); and

B. If termination is for the convenience of CITY, an equitable adjustment in the contract price shall be made, but no amount shall be allowed for anticipated profit on unperformed services.

E. The rights and remedies of the CITY provided in this Section are in addition to any other rights and remedies provided by law or under this agreement.

F. Subject to the foregoing provisions, the CITY shall pay FIRST PARTY for services performed and expenses incurred through the termination date.

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6 CC Rev 20210301

17. INSPECTION OF WORK
It is FIRST PARTY's obligation to make the work product available for CITY's inspections and periodic reviews upon request by CITY.

24. TERM OF AGREEMENT
This agreement shall remain in effect for the period of Select start date through Select end date unless extended, amended, or terminated in writing by CITY.

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7 CC Rev 20210301

All modifications, amendments, or waivers of the terms of this agreement must be in writing and signed by the appropriate representatives of the parties to this agreement.

Based upon review of the Consultant’s Scope of Work and determination by the City Manager, it is determined that Consultant Choose an item required to file a Statement of Economic Interest. A statement of Economic Interest shall be filed with the City Clerk’s office no later than 30 days after the execution of the agreement.

IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first above written.

FOR FIRST PARTY:

Signature Date
Printed name Title
Tax ID#
APPROVED AS TO FORM:

Nira F. Doherty, City Attorney Date
FOR CITY OF MENLO PARK:

Signature Authority, Title Date
ATTEST:

Judi A. Herren, City Clerk Date
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8 CC Rev 20210301
EXHIBIT “A” – SCOPE OF SERVICES
A1.SCOPE OF WORK
FIRST PARTY agrees to provide consultant services for CITY’s Department. In the event of any discrepancy between any of the terms of the FIRST PARTY’s proposal and those of this agreement, the version most favorable to the CITY shall prevail. FIRST PARTY shall provide the following services:

Provide general consultant services for projects as determined by the CITY. The detailed scope of work for each task the CITY assigns the consultant shall be referred to as Exhibit A -1, which will become part of this agreement. A notice to proceed will be issued separately for each separate scope of work agreed to between the CITY and FIRST PARTY.

FIRST PARTY agrees to perform these services as directed by the CITY in accordance with the standards of its profession and CITY’s satisfaction.

A2.COMPENSATION
CITY hereby agrees to pay FIRST PARTY at the rates to be negotiated between FIRST PARTY and CITY as detailed in Exhibit A-1. The actual charges shall be based upon (a) FIRST PARTY’s standard hourly rate for various classifications of personnel; (b) all fees, salaries and expenses to be paid to engineers, consultants, independent contractors, or agents employed by FIRST PARTY; and shall (c) include reimbursement for mileage, courier and plan reproduction. The total fee for each separate Scope of Work agreed to between the CITY and FIRST PARTY shall not exceed the amount shown in Exhibit A-1.

FIRST PARTY shall be paid within thirty (30) days after approval of billing for work completed and approved by the CITY. Invoices shall be submitted containing all information contained in Section A5 below. In no event shall FIRST PARTY be entitled to compensation for extra work unless an approved change order, or other written authorization describing the extra work and payment terms, has been executed by CITY before the commencement of the work.

A3.SCHEDULE OF WORK
FIRST PARTY’S proposed schedule for the various services required will be set forth in Exhibit A-1.

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9 CC Rev 20210301
A5.BILLINGS
FIRST PARTY’s bills shall include the following information: A brief description of services performed, project title and the agreement number; the date the services were performed; the number of hours spent and by whom; the current contract amount; the current invoice amount; Except as specifically authorized by CITY, FIRST PARTY shall not bill CITY for duplicate services performed by more than one person. In no event shall FIRST PARTY submit any billing for an amount in excess of the maximum amount of compensation provided in Section A2.

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10 CC Rev 20210301
EXHIBIT “B” - DISPUTE RESOLUTION
B1.0 All claims, disputes and other matters in question between the FIRST PARTY and CITY arising out of, or relating to, the contract documents or the breach thereof, shall be resolved as follows:

B3.2 The provisions of the Construction Industry Arbitration Rules of the American Arbitration Association shall apply and govern such arbitration, subject, however to the following:

B3.4 The arbitrator or arbitrators appointed must be former or retired judges, or attorneys at law with last ten (10) years’ experience in construction litigation.

B3.5 All proceedings involving the parties shall be reported by a certified shorthand court reporter, and written transcripts of the proceedings shall be prepared and made available to the parties.

B3.6 The arbitrator or arbitrators must be made within and provide to the parties factual findings and the reasons on which the decisions of the arbitrator or arbitrators is based.

B3.7 Final decision by the arbitrator or arbitrators must be made within ninety (90) days from the date of the arbitration proceedings are initiated.

B3.9 Costs and fees of the arbitrator or arbitrators shall be borne by the non-prevailing party, unless the arbitrator or arbitrators for good cause determine otherwise.

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Public Works
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 .menlopark.gov

STAFF REPORT
City Council
Meeting Date: 6/13/2023
Staff Report Number: 23-138-CC
Consent Calendar: Adopt a resolution approving the list of projects eligible for fiscal year 2023-24 funds from Senate
Bill 1: The Road Repair and Accountability Act of
2017
Recommendation
Staff recommends that the City Council adopt a resolution (Attachment A) approving the list of projects eligible for fiscal year 2023-24 to receive funds from Senate Bill 1: The Road Repair and Accountability Act.

Policy Issues
This action is consistent with the City Council’s goal of maintaining and enhancing the City’s municipal infrastructure and facilities. It is also consistent with the 2016 General Plan Circulation Element, which includes policies that seek to provide and maintain a safe, efficient, attractive, user-friendly intermodal circulation system. The circulation element promotes a healthy, safe and active community and quality of life throughout Menlo Park and increases accessibility for the use of streets by pedestrians, bicyclists and transit riders. The projects identified in this staff report are consistent with these policies.

Background
Senate Bill 1 (SB 1), also known as the Road Repair and Accountability Act of 2017 or Gas Tax, was enacted into law April 28, 2017. SB 1 created a $54 billion investment to fund road, bridge and freeway repair projects throughout the state over the next decade by increasing California’s gasoline and diesel taxes and vehicle fees. This investment was structured to be evenly allocated between cities, counties and the state’s highway system for repairs to local street and roads, bike and pedestrian projects, and local planning grants.

As of April 2023, the City has received $503,527 of $793,824 in projected funding for fiscal year 2022-23.

Funds were provided on a monthly basis starting July 1, 2022, and come from the SB 1 Road Maintenance and Rehabilitation Act (RMRA). For fiscal year 2023-24, the City is eligible to receive $844,369 in projected revenues.

The City is responsible for maintaining approximately 96 miles of streets and asphalt resurfacing is performed every two years to keep roadways at an appropriate level of service. The City uses StreetSaver, a pavement management software developed by the Metropolitan Transportation Commission, to generate an annual list of street sections for asphalt maintenance. StreetSaver helps allocate project funding by analyzing existing street conditions, estimated costs, and available funding to propose the type of maintenance needed at each street segment that has been identified for SB 1 funding. Both projects are described in the Analysis Section and Exhibit A to Attachment A.

AGENDA ITEM G-3 Page G-3.1
Staff Report #: 23-138-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Analysis
The intent of SB 1 is to provide additional funding for deferred street maintenance projects and not to replace the existing levels of general revenue spending by the City on such projects. Consequently, SB 1 requires that the City maintain “general fund” spending for street and road maintenance. As defined by the legislation, general fund expenditures are any unrestricted funds that the City or county may expend at its discretion, including vehicle in-lieu tax revenues and revenues from fines and forfeitures, expended for street, road and highway purposes.

In order to receive SB 1 funds, the City must submit a list of proposed eligible projects, adopted by resolution, to the California Transportation Commission (CTC) each year. For fiscal year 2023-24, the CTC must receive the list by July 1. Failure to submit an eligible project list to the CTC would result in forfeiture of the monthly apportionments. The list must include a project description, location, schedule, and an estimate of the projects useful life per program funding requirements and is attached hereto as Exhibit A to Attachment A.

For fiscal year 2023-24, the City identified the 2023 Street Resurfacing Project with 16 various locations and Haven Avenue between Marsh Road and the Atherton Channel as eligible for SB 1 funding. Both projects are described in the analysis section and Exhibit A to Attachment A. The scope of work in the 2023 Street Resurfacing Project includes installation of asphalt resurfacing, asphalt dig-out, sidewalk repair, valley gutter, curb and gutter, speed humps, striping, tree root repairs, and utility cover adjustments across 16 road segments citywide.

The 2023 Street Resurfacing project will begin construction mid-June. This project will be completed in fall 2023.

The Haven Avenue project spans from Marsh Road to Atherton Channel; this project is a carry-over from last fiscal year’s list for SB 1 funding. This project will be presented on the June 13 City Council agenda and is planned for construction tentatively from July 2023 through October 2024. Both projects are generally described in Table 1 below.

Table 1: Projects identified for SB 1 funding
Project name Project description Construction
estimate
2023 Street Resurfacing
Installation of asphalt resurfacing, asphalt dig-out,
sidewalk repair, valley gutter, curb and gutter, speed
humps, striping, tree root repairs, and utility cover
adjustment across 16 various road segments.
$2,843,558
Haven Avenue
Installation of rubberized asphalt resurfacing,
concrete sidewalks, driveways, a pedestrian and
bicycle bridge, traffic signal modifications, medians,
curb ramps and striping
$2,208,276
Staff recommends proceeding with City Council action on the resolution to ensure the City can remain eligible to receive SB 1 funds.

Page G-3.2
Staff Report #: 23-138-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Impact on City Resources
With the adoption of the resolution, the City would be eligible for SB 1 funding for fiscal year 2023-24. The assigned projects are improvements that the City Council funds through the annual budgeting process.

As described above, SB 1 would provide funding up to $844,369 for fiscal year 2023-24. Preliminary construction costs for 2023 Street Resurfacing and Haven Avenue is estimated at $5,052,434 combined.

Additional funding sources for these projects may include Highway User’s Tax, transportation impact fees, developer contributions, and the San Mateo County transportation sales tax measures (Measures A and W).

Environmental Review
This action is not a project within the meaning of the California Environmental Quality Act (CEQA) Guidelines §§ 15378 and 15061(b)(3) as it has no potential for resulting in any direct or indirect physical change in the environment.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Resolution
Report prepared by:

Mike Owyang, Associate Engineer
Reviewed by:

Tanisha Werner, Assistant Director of Public Works - Engineering Page G-3.3
RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK APPROVING THE LIST OF PROJECTS ELIGIBLE FOR FISCAL YEAR 2023- 24 FUNDS FROM THE ROAD REPAIR AND ACCOUNTABILITY ACT (SB 1) WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multimodal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City will receive an estimated $844,369 in RMRA funding in fiscal year 2023-24 from SB 1; and
WHEREAS, this is the seventh year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undertaken public outreach to ensure public input into our community’s transportation priorities through development of the Transportation Master Plan adopted on November 17, 2020; and
WHEREAS, the City used its pavement management program to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets, roads and drainage, throughout the City this year and many other similar projects into the future; and WHEREAS, the 2022 California statewide Local Streets and Roads Needs Assessment found that SB 1 is a critical funding source that has resulted in cities and counties stabilizing the average statewide local pavement condition, but significant challenges remain to ensure streets and roads are adequately maintained including limited construction capacity, increasing bid prices, and other infrastructure needs continuing to grow; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW THEREFORE BE IT RESOLVED, that the City of Menlo Park, acting by and through its ATTACHMENT A Page G-3.4
City Council, finds as follows:

1. The foregoing recitals are true and correct

2. The fiscal year 2023-24 list of projects planned to be funded with RMRA revenues include the projects in “Exhibit A”
I, Judi A. Herren, City Clerk of Menlo Park, do hereby certify that the above and foregoing City Council resolution was duly and regularly passed and adopted at a meeting of said City Council on the thirteenth of June, 2023, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this ___ of June, 2023.
____________________________
Judi A. Herren, City Clerk
Exhibits:

A. Fiscal year 2023-24 list of projects planned to be funded with RMRA revenues Resolution No. XXXX

Page 2 of 3 ends

Planned projects for road maintenance and rehabilitation account (RMRA) fiscal year 2023-24 revenues Fiscal Year 2023-24 proposed projects eligible for SB 1 funding Item Project name Project Description Project Location Estimated start date
Estimated
end date
Estimated
useful life
in years
1 2023 Street
Resurfacing
Installation of asphalt resurfacing, asphalt
dig-out, sidewalk repair, valley gutter,
curb and gutter, speed humps, striping,
tree root repairs, and utility cover
adjustments.

Chilco Street
Hill Avenue
Windermere Avenue
Central Avenue
East O’Keefe Street
Windermere Avenue
Van Buren Road
Burgess Drive
Windsor Drive
Windsor Way
Johnson Street
Hidden Oaks Drive
Blueridge Avenue
Clayton Drive
Eastridge Avenue
Garland Drive
6/2023 10/2023 12 to 15
2 Haven Avenue
Installation of rubberized asphalt
resurfacing, concrete sidewalks,
driveways, a pedestrian and bicycle
bridge, traffic signal modifications,
medians, curb ramps, and striping
Marsh Road to Atherton
Channel
7/2023 10/2024 12 to 15
Resolution No. XXXX

Page 3 of 3 ends

Public Works
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov

STAFF REPORT
City Council
Meeting Date: 6/13/2023
Staff Report Number: 23-139-CC
Consent Calendar: Authorize the city manager to execute a construction contract to McGuire and Hester for the
Haven Avenue Streetscape project
Recommendation
Staff recommends that the City Council authorize the city manager to execute a $1,983,401 contract to McGuire and Hester (Attachment A), approve a construction contingency in the amount of $198,000 (held by the City), and approve construction administration fees in the amount of $27,475 for construction of the Haven Avenue Streetscape project (Project).

Policy Issues
The Project is consistent with policies stated in the 2016 general plan circulation element. These policies seek to maintain a safe, efficient, attractive, user-friendly circulation system that promotes a healthy, safe, and active community and quality of life throughout Menlo Park. The Project is included in the 2022-23 capital improvement program (CIP).

Background
In the City’s 2015-2023 housing element, Haven Avenue was designated as a future site for higher-density housing development. Subsequently, 540 housing units were constructed along Haven Avenue between 3645 Haven Ave. (Elan Menlo Park) and 3639 Haven Ave. (Anton Menlo). The transportation requirements for these housing developments included pedestrian and bicycle improvements along Haven Avenue between Marsh Road and approximately 3715 Haven Ave. This area of Haven Avenue is under Caltrans jurisdiction. In June 2017, The City Council adopted Resolution No. 6389 to remove parking on both sides of Haven Avenue between 3715 Haven Ave. and Marsh Road and amended the existing maintenance agreement between the City and Caltrans.

The Haven Avenue streetscape project includes construction of a dedicated pedestrian/bicycle bridge over the Atherton Channel at Haven Avenue, addition of over 20 new trees, complete pavement rehabilitation, replacement of curb ramps and improvements to the existing median to provide a crossing refuge at the Marsh Road/Haven Avenue/Bayfront Expressway intersection, modification of the existing traffic signal, and installation and/or widening of sidewalks on both sides of the street.

Since 2020 design work on the Project has included coordination with Caltrans and renewing the Caltrans encroachment permit, work with the State Department of Fish and Game for permit to work in the vicinity of the Atherton Channel, and coordinating funding for the Project. Design work on the Project was completed in February 2023 and the Project was advertised for bidding March 17.

AGENDA ITEM G-4 Page G-4.1
Staff Report #: 23-139-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Analysis
On March 17 the City solicited bids from prospective contractors for the project. The project was advertised on PlanetBids, a procurement platform utilized by the City, and posted twice in a local newspaper.

Construction bids were opened April 10 and the bid results are shown in Table 1.

Of the two bids received, McGuire and Hester was identified as the apparent low bidder with a base bid price of $1,983,401, which was approximately 15% higher than the engineer’s estimate of $1,726,185. Upon review, staff confirmed that the engineer’s estimate utilized a lower unit price for asphalt. The 15% discrepancy can also be attributed to higher material procurement costs for the structural steel bridge, paving and traffic signal hardware.

Bid Alternate A provides for the substitution of rubberized asphalt for standard hot mix asphalt to comply with Council direction to solicit bid results for rubberized asphalt on all collector and arterial streets. Based on the small quantity of asphalt needed for this project, the use of rubberized asphalt results in a $100,000 premium. Based on the pricing and the budget constraints described further below, staff recommends proceeding with the base bid.

Staff has found the low bidder to be both responsive and responsible per public contracting code requirements. Subject to the City Council’s award of contract, the Project is tentatively scheduled for construction from July 2023 to October 2024.

Table 1: Bid results
Bidder Base bid subtotal Bid Alternate A Bid total
Engineers Estimate $1,726,185 $6,500 $1,732,685
McGuire and Hester $1,983,401 $102,000 $2,085,401
Granite Rock Co. $2,441,121 $71,100 $2,512,221
Impact on City Resources
This project is included in the fiscal year 2022-23 CIP, with $2,208,876 remaining in available funding from outside agencies, the transportation impact fee fund, and Measure W. Table 2 outlines the outside agency and grant funding sources. The estimated construction budget, including the base bid and bid alternates, is summarized in Table 3 and totals $2,208,876, including a 10% construction contingency and construction administration fees. Construction administration is estimated at approximately $27,000and includes construction management and inspection support.

Page G-4.2
Staff Report #: 23-139-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Table 2: Available funding
Agency Funding
Developer contributions $469,000
California Department of Transportation (Caltrans) $300,000 San Mateo County Transportation Authority (SMCTA) Measure A Pedestrian and Bicycle Program $170,000 California Department of Parks and Recreation grant $600,000 Measure W $250,000
Transportation impact fees $419,876
Total funds available $2,208,876
The project has sufficient funding to construct the Project. Therefore, staff is recommending that the City Council award a $1,983,401 construction contract, the base bid, to McGuire and Hester, approve a construction contingency in the amount of $198,000, and approve construction administration in the amount of $27,475 for the Haven Avenue Streetscape Project.

Table 3: Construction budget
Item Cost
Construction subtotal (base bid) $1,983,401
Contingency (10%) $198,000
Construction administration $27,475
Total budget $2,208,876
Available funding $2,208,876
Environmental Review
On Jan. 21, 2016, a mitigated negative declaration was published for this Project pursuant to provisions of the California Environmental Quality Act (CEQA). No further environmental action is required.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Construction contract
B. Site map
Page G-4.3
Staff Report #: 23-139-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 menlopark.gov Report prepared by:

Tanisha Werner, Assistant Public Works Director - Engineering Report reviewed by:

Nikki Nagaya, Deputy City Manager
Page G-4.4

CONSTRUCTION AGREEMENT
City Manager’s Office
701 Laurel St., Menlo Park, CA 94025
tel 650-330-6620
Agreement #:

AGREEMENT FOR SERVICES BETWEEN

THE CITY OF MENLO PARK AND MCGUIRE AND HESTER
THIS CONSTRUCTION CONTRACT (“Contract”) is made and entered into this ____ day of __________, ______ (“Execution Date”) by and between the CITY OF MENLO PARK, a California municipal corporation, (“City”) and MCGUIRE AND HESTER (“Contractor”).

RECITALS
A. Contractor is a California Corporation duly organized and in good standing in the State of California, License Number 95879. Contractor represents and warrants that it has the background and experience set forth in the Contractor’s responses to the notice inviting bids.

B. Contractor represents that it is duly licensed by the State of California and has the background, knowledge, experience and expertise to perform the obligations set forth in this Contract.

C. On March 17, 2023, the City issued a Notice to Contractors inviting bids for the Project. A copy of the Contractor’s Bid proposal and List of Subcontractors is attached herein and incorporated by this reference.

D. The City desires to retain Contractor as an independent contractor to provide the construction and other services identified in this Contract for the Project upon the terms and conditions contained herein.

AGREEMENT
NOW, THEREFORE, in consideration of performance by the parties of the promises, covenants and conditions contained herein, the parties hereby agree as follows:

1. DEFINITIONS. Capitalized terms used throughout the Contract Documents shall have the meanings set forth in this Contract and/or the Special Provisions. If there is a conflict between the definitions in this Contract and the Special Provisions, the definitions in this Contract shall prevail.

2. PROJECT. The project is the construction of Haven Avenue Street Improvement (“Project”). The work includes all labor, materials, equipment, services, permits, licenses and taxes, and all other things necessary for Contractor to perform its obligations and complete the Project, including, without limitation, any Change Orders executed by City and Contractor in accordance with the requirements of the Contract Documents (“Work”).

3. CONTRACT DOCUMENTS.

3.1 List of Documents. The Contract Documents (sometimes collectively referred to as “Agreement” or “Bid Documents”) consist of the following documents which are on file with the Public Works Page G-4.5 ATTACHMENT A
Department and are hereby incorporated by reference.
1) Change Orders
2) Field Orders
3) Contract
4) Bidding Addenda
5) Special Provisions
6) Project Plans and Drawings
7) Technical Specifications
8) City Standard Details
9) State of California Department of Transportation Specifications, 2006 Edition (Cal Trans specifications)
10) Notice to Contractors
11) Contractor's Bid
12 Bidder Certifications, Questionnaire and Statements
13) Reports listed in the Contract Documents
14) City of Menlo Park Waste Management Form, Waste Management Daily Transport Report 15) City of Menlo Park Truck Route Map and Regulations
16) Performance, Payment and Maintenance Bonds

3.2 Order of Precedence. For the purposes of construing, interpreting and resolving inconsistencies between and among the provisions of this Contract, the Contract Documents shall have the order of precedence as set forth in the preceding section. If a claimed inconsistency cannot be resolved through the order of precedence, the City shall have the sole power to decide which document or provision shall govern as may be in the best interests of the City.

4. PERMITS. Contractor, at its sole expense, shall obtain and maintain during the term of this Contract, all appropriate permits, licenses and certificates that may be required in connection with the performance of the Work, including, but not limited to, a City business license.

5. DEPARTMENT OF INDUSTRIAL RELATIONS. Contractor and any subcontractor performing Work on this Project shall be registered with the Department of Industrial Relations (“DIR”) pursuant to Labor Code Section 1725.5. No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the DIR pursuant to Labor Code Section 1725.5, with limited exceptions from this requirement for bid purposes only under Labor Code Section 1771.1(a). This Project is subject to compliance monitoring and enforcement by the DIR. It is the responsibility of the Contractor to ensure all DIR requirements and regulations are met and stay current. For more information see http://dir.ca.gov/Public-Works/SB854.html.

6. TERM. This Contract is effective on the Execution Date set forth in the initial paragraph of this Contract and shall remain in effect until the Project has been satisfactorily completed by Contractor, unless earlier terminated pursuant to the terms of this Contract.

7. TIME OF COMPLETION. Time is of the essence with respect to all time limits set forth in the Contract Documents. Contractor shall commence the Work on the date specified in the City’s Notice to Proceed. Contractor shall diligently prosecute the Work to Substantial Completion within 300 (threehundred) calendar days after the date specified in the City’s Notice to Proceed (“Contract Time”). The Contract Time may only be adjusted for extensions of time approved by the City and agreed to by Change Order executed by City and Contractor in accordance with the requirements of the Contract Documents.

Page G-4.6

8. COMPENSATION. The City agrees to compensate Contractor for its satisfactory completion of the Work in compliance with the Contract Documents for the not to exceed amount of one million, nine hundred eighty three thousand, four hundred and one ($1,983,401) (“Contract Sum”). Payment shall be as set forth in the Plans, Special Provisions and/or Technical Specifications. The Contract Sum may only be adjusted by Change Orders issued, executed and satisfactorily performed by Contractor in accordance with the requirements of the Contract Documents. The Contract Sum shall be adjusted (upward or downward) only to account for Change Orders. The Contract Sum is and shall be full compensation for all Work performed by Contractor. The Contract Sum shall cover all losses arising out of the nature of the Work or from the elements or any unforeseen difficulties or obstructions which may arise or be encountered in performance of the Work until its Acceptance by the City, all risks connected with the Work and any and all expenses incurred due to the suspension or discontinuance of the Work.

9. STANDARD OF PERFORMANCE. As a material inducement to the City to enter into this Contract, Contractor hereby represents and warrants that it has the qualifications and experience necessary to undertake the Work to be provided and the Project to be completed pursuant to this Contract.

Contractor agrees that the Work shall be performed by qualified, experienced and well-supervised personnel. The Work performed pursuant to this Contract shall be performed in a manner consistent with the standard of care under California law applicable to those who specialize in providing such services for projects of the type, scope and complexity of the Project.

10. COMPLAINCE WITH LAW. This Project constitutes a public work within the meaning of California Labor Code Section 1720 et. seq. and is subject to prevailing wage laws. The Work performed by Contractor pursuant to this Contract shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of the City, and any federal, state or local governmental agency having jurisdiction in effect at the time the work is rendered.

11. REPRESENTATIVE. Randy C. Somerday is hereby designated as the project manager/superintendent/foreman of Contractor authorized to act on its behalf with respect to the Work specified in this Contract. It is expressly understood that the experience, knowledge, capability and reputation of McGuire and Hester were a substantial inducement for City to enter into this Contract.

Therefore, Randy C. Somerday shall be responsible during the term of this Contract for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. The representative may not be changed by Contractor without the express written approval of the City.

12. LIQUIDATED DAMAGES.

12.1 Entitlement. City and Contractor acknowledge and agree that if Contractor fails to fully and satisfactorily complete the Work within the Contract Time, the City will suffer, as a result of Contractor’s failure, substantial damages which are both extremely difficult and impracticable to ascertain. Such damages may include, but are not limited to: (a) loss of public confidence in the City and its contractors; (b) loss of public use of public facilities; and (c) extended disruption to public.

12.2 Daily Amount. City and Contractor have reasonably endeavored, but failed, to ascertain the actual damage that the City will incur if the Contractor fails to achieve Substantial Completion of the Work within the Contract Time. Therefore, the parties agree that in addition to all other damages to which the City may be entitled other than delay damages, in the event the Contractor shall fail to achieve Substantial Completion of the Work within the Contract Time, Contractor shall pay City as liquidated damages the amount of Five Hundred Dollars ($500.00) per day for each calendar day after the expiration of the Contract Time until Contractor achieves Substantial Completion of the Work. The liquidated damages amount is not a penalty, but a reasonable estimate of the amount of damages the City will suffer.

Page G-4.7

12.3 Apportionment. Such liquidated damages shall be subject to reduction for delays for which Contractor is entitled to receive an extension of time under the Contract Documents (“Apportionment”).

Such Apportionment shall not be affected by the fact that liquidated damages may not be applied for periods of time during which delays have occurred that are caused by both City and Contractor. It is agreed that the liquidated damages shall not be applied for portions of the Work completed prior to the expiration of the Contract Time.

12.4 Exclusive Remedy. City and Contractor acknowledge and agree that this Section 11, Liquidated Damages, shall be the City’s only remedy for delay damages caused by the Contractor’s failure to achieve Substantial Completion of the Work within the Contract Time.

12.5 Damages upon Abandonment. In the event that the Contractor either abandons the Work or is terminated for default in accordance with the provisions of this Contract, City shall have the right, in its sole discretion exercised by written notice issued either before or after Substantial Completion, to elect to either assert or waive its right to liquidated damages. If City elects to assert its right to liquidated damages, then the liquidated damages shall be calculated from expiration of the Contract Time to the date that Substantial Completion of the Work is achieved by the City or its replacement contractor employed to complete Contractor’s performance. If City elects to waive its right to liquidated damages, then Contractor shall be liable to the City, in lieu of the liquidated damages, for all actual Losses (as defined in the General Conditions) proximately resulting from Contractor’s failure to complete the Work within the Contract Time.

12.6 Other Remedies. The parties further acknowledge and agree that the City is entitled to any and all available legal and equitable remedies City may have where City’s Losses are caused by any reason other than Contractor’s failure to achieve Substantial Completion of the Work within the Contract Time.

13. INDEPENDENT CONTRACTOR. Contractor is, and shall at all times remain as to the City, a wholly independent contractor and not an agent or employee of the City. Contractor shall receive no premium or enhanced pay for work normally understood as overtime, nor shall Contractor receive holiday pay, sick leave, administrative leave, or pay for any other time not actually worked. The intention of the parties is that Contractor shall not be eligible for benefits and shall receive no compensation from the City except as expressly set forth in this Contract. Contractor shall have no power to incur any debt, obligation, or liability on behalf of the City or otherwise act on behalf of the City as an agent. Neither the City, nor any of its agents shall have control over the conduct of Contractor, any of Contractor’s employees, or any subcontractors, except as set forth in this Contract. Contractor shall at no time, or in any manner, represent that it or any of its agents or employees or subcontractors are in any manner employees of the City. Contractor agrees to pay all required taxes on amounts paid to Contractor under this Contract, and to indemnify and hold the City harmless from any and all taxes, assessments, penalties, and interest asserted against the City by reason of the independent contractor relationship created by this Contract. Contractor shall fully comply with the worker’s compensation law regarding Contractor, Contractor’s employees and subconsultants. Contractor further agrees to indemnify and hold the City harmless from any failure of Contractor and any subconsultants to comply with applicable worker’s compensation laws.

14. CONFLICT OF INTEREST. Contractor covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the work to be performed by Consultant under this Contract, or which would conflict in any manner with the performance of its services hereunder. Contractor further covenants that, in performance of this Contract, no person having any such interest shall be employed by it. Furthermore, Contractor shall avoid the appearance of having any interest which would conflict in any manner with the performance of the work pursuant to this Contract. Contractor agrees not to accept any employment during the term of this Contract which is or Page G-4.8
may make Contractor financially interested, as provided in California Government Code Sections 1090 and 87100, in any decision made by the City on any matter in connection with which Contractor has been retained pursuant to this Contract. However, nothing herein shall preclude Contractor from accepting other engagements with the City.

15. INDEMNIFICATION.

15.1 To the fullest extent permitted by law, Contractor shall indemnify, defend, with independent counsel approved by the City, and hold harmless the City, and its elective or appointive boards, officers, employees agents and volunteers (“Indemnitee”) from and against any and all claims, losses, or liability that may arise out of or result from damages to property or personal injury received by reason of, or in the course of work performed under this Contract due to the acts or omissions of Contractor or Contractor’s officers, employees, agents or subcontractors. The indemnification provisions survive completion of the Work or the termination of this Contract. The acceptance of such services shall not operate as a waiver of such right of indemnification. Notwithstanding the foregoing, nothing contained herein shall be construed as obligating Contractor to indemnify any Indemnitee for any claims, losses or liability resulting from the sole or active negligence or willful misconduct of the Indemnitee. Contractor shall pay City for any costs incurred in enforcing this provision.

15.2 The City does not and shall not waive any rights that they may possess against Contractor because of the acceptance by the City or the deposit with the City of any insurance policy or certificate required pursuant to this Contract. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

15.3 Pursuant to Public Contract Code Section 9201, the City shall timely notify Contractor upon receipt of any third-party claim relating to the Contract.

16. ASSIGNABILITY. The parties agree that the experience and qualifications of Contractor as set forth in the Contractor’s Bid are material considerations for the City entering into this Contract. Consultant shall not assign or transfer any interest in this Contract, without the prior written consent of the City, and any attempt by Contractor to do so shall be void and of no effect and a breach of this Contract. For purposes of this section, the sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Contractor or of any general partner or joint venturer or syndicate member of Contractor, if a partnership or joint venture or syndicate or co-tenancy exists, which shall result in changing the control of Contractor, shall be construed as an assignment of this Construction Contract.

Control means more than fifty percent (50%) of the voting power of the corporation or other entity.

17. INSURANCE AND BOND REQUIREMENTS.

17.1 Prior to the commencement of any Work, the Contractor shall provide the City with evidence that it has obtained the insurance required by this Section and all bonds, including, but not limited to, payment and performance bonds, required in the Special Provisions. Failure to obtain and maintain the required insurance and bonds to so shall be deemed a material breach of this Contract.

17.2 Insurance Requirements. Contractor shall obtain the following insurance.

A. Worker’s Compensation and Employer’s Liability Insurance: The CONTRACTOR shall have in effect during the entire life of this Contract workers' compensation and Employer's Liability Insurance providing full statutory coverage. In signing this Contract, the CONTRACTOR makes the following certification, required by Section 18161 of the California Labor Code: "I am aware of the provisions of Section 3700 Page G-4.9
of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of the Code, and I will comply with such provisions before commencing the performance of the work of this Contract." B. Commercial General Liability Insurance: The CONTRACTOR shall take out and maintain during the life of this Contract such Bodily Injury Liability and Property Damage Liability Insurance (Commercial General Liability Insurance) on an occurrence basis as shall protect it while performing work covered by this Contract from any and all claims for damages for bodily injury, including accidental death, as well as claims for property damage which may arise from the CONTRACTOR's operations under this Contract, whether such operations be by CONTRACTOR or by any sub-consultant or by anyone directly or indirectly employed by either of them. The amounts of such insurance shall be not less than two million dollars ($2,000,000) per occurrence and four million dollars ($4,000,000) in aggregate, or four million dollars ($4,000,000) combined single limit bodily injury and property damage for each occurrence.

CONTRACTOR shall provide the City with acceptable evidence of coverage, including a copy of all declarations of coverage exclusions.

C. Automobile Liability Insurance: CONTRACTOR shall maintain Automobile Liability Insurance pursuant to this Contract in an amount of not less than one million dollars ($1,000,000) for each accident combined single limit or not less than one million dollars ($1,000,000) for any one (1) person, and one million dollars ($1,000,000) for any one (1) accident, and Three Hundred Thousand Dollars, ($300,000) property damage.

17.3 CITY and its subsidiary agencies, and their officers, agents, employees and servants shall be named as additional insured on any such policies of Commercial General Liability and Automobile Liability Insurance, (but not for the workers' compensation), which shall also contain a provision that the insurance afforded thereby to the CITY, its subsidiary agencies, and their officers, agents, employees, and servants shall be primary insurance to the full limits of liability of the policy, and that if the CITY, its subsidiary agencies and their officers and employees have other insurance against a loss covered by a policy, such other insurance shall be excess insurance only.

17.4 In the event of the breach of any provision of this Section, or in the event any notice is received which indicates any required insurance coverage will be diminished or canceled, CITY, at its option, may, notwithstanding any other provision of this Contract to the contrary, immediately declare a material breach of this Contract and suspend all further work pursuant to this Contract.

17.5. Before the execution of this Contract, any deductibles or self-insured retentions must be declared to and approved by CITY.

18. SUSPENSION. The City may, at any time and from time to time, without cause, order Contractor, in writing (“Suspension Order”), to suspend, delay, or interrupt the Work in whole or in part for such period of time, up to an aggregate of fifty percent (50%) of the Contract Time, as City may determine, with such period of suspension to be computed from the date of the Suspension Order. Upon receipt of a Suspension Order, Contractor shall, at City’s expense, comply with its terms and take all reasonable steps to minimize costs allocable to the Work covered by the Suspension Order during the period of work stoppage. Within the period of the above noted aggregate time, or such extension to that period as is agreed upon by Contractor and City, City shall either cancel the Suspension Order or delete the work covered by the Suspension Order by issuing a Change Order. If a Suspension Order is canceled or expires, Contractor shall resume and continue with the Work. A Change Order will be issued to cover any adjustments of the Contract Sum or the Contract Time necessarily caused by such suspension.

Page G-4.10

19. BOOKS AND RECORDS. Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Contract in accordance with generally accepted accounting principles and practices consistently applied. City and City's accountants shall be afforded access at all times during normal business hours, to inspect, audit and copy Contractor's records, books, estimates, take-offs, cost reports, ledgers, schedules, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Project, and Contractor shall preserve these for a period of three years after the later of (i) final payment or (ii) final resolution of all Contract Disputes and other disputes or for such longer period as may be required by law. Contractor’s compliance with any request by City pursuant to this Section18 shall be a condition precedent to filing or maintenance of any legal action or proceeding by Contractor against City and to Contractor's right to receive further payments under the Contract Documents. Any failure by Contractor to provide access to its business records for inspection or copying by City shall be specifically enforceable by issuance of a writ or a provisional or permanent mandatory injunction by a court of competent jurisdiction based on affidavits submitted to such court, without the necessity of oral testimony.

20. WAIVER. Waiver by either party of any breach or violation of any one or more terms or conditions of this Contract shall not be deemed to be a waiver of any other term or condition contained herein or a waiver of any subsequent breach or violation of the same or any other term or condition. Acceptance by the City of the performance of any work by the Contractor shall not be deemed to be a waiver of any term or condition of this Contract. In no event shall the City’s making of any payment to Contractor constitute or be construed as a waiver by the City of any breach of this Contract, or any default which may then exist on the part of Contractor, and the making of any such payment by the City shall in no way impair or prejudice any right or remedy available to the City with regard to such breach or default.

21. DEFAULT. In the event the City determines, in its sole discretion, that Contractor has failed or refused to perform any of the obligations set forth in the Contract Documents, or is in breach of any provision of the Contract Documents, the City may give written notice of default to Contractor in the manner specified for this giving of notices in this Contract. Except for emergencies, Contractor shall cure any default in performance of its obligations under the Contract Documents within two (2) business days after receipt of written notice. However, if the breach cannot be reasonably cured within such time, Contractor will commence to cure the breach within two (2) days and will diligently and continuously prosecute such cure to completion within a reasonable time, which shall in no event be later than ten (10) days after receipt of such written notice.

22. CITY RIGHTS AND REMEDIES.

22.1 Remedies Upon Default. In the event that Contractor fails to cure any default of this Contract within the time period set forth in Section 20, then City may pursue any remedies available under law or equity, including, without limitation, the following: (1) the City may, without terminating the Contract, delete certain portions of the Work, reserving to itself all rights to losses related thereto; (2) the City may, without terminating the Contract, engage others to perform the Work or portion of the Work that has not been performed by the Contractor and withhold the cost thereof to City from future payments to the Contractor, reserving to itself all rights to Losses related thereto; or (3) the City may, without terminating the Contract and reserving to itself all rights to Losses related thereto, suspend all or any portion of this Construction Contract for as long a period of time as City determines, in its sole discretion, appropriate, in which event City shall have no obligation to adjust the Contract Sum or Contract Time, and shall have no liability to Contractor for damages if City directs Contractor to resume Work; (4) the City may terminate all or any part of this Contract for default, reserving to itself all rights of Losses related thereto; or (5) the City may, without terminating the Contract and reserving to itself all rights to Losses related thereto, exercise its rights under the Performance Bond.

Page G-4.11

22.2 Additional Provisions. All of City’s rights and remedies under this Contract are cumulative, and shall be in addition to those rights and remedies available in law or in equity. Designation in the Contract Documents of certain breaches as material shall not be construed as implying that other breaches not so designated are not material nor shall such designations be construed as limiting City’s right to terminate the Contract, or the exercise of its other rights or remedies for default, to only material breaches. City’s determination of whether there has been noncompliance with the Contract so as to warrant exercise by City of its rights and remedies for default under the Contract, shall be binding on all parties. No termination or action taken by City after such termination shall prejudice any other rights or remedies of City provided by law or equity or by the Contract Documents upon such termination; and City may proceed against Contractor to recover all liquidated damages and Losses suffered by City.

22.3 Delays by Sureties. Without limitation to any of City’s other rights or remedies under the law, City has the right to suspend the performance by Contractor’s sureties in the event of any of the following:
(1) failure of the sureties to begin Work within a reasonable time in such manner as to insure full compliance with the Contract within the Contract Time; (2) abandonment of the Work; (3) if at any time City is of the opinion the Work is unnecessarily or unreasonably delayed; (4) willful violation of any terms of the Contract; (5) failure to perform according to the Contract Documents; or (6) failure to follow instructions of City for its completion within the Contract Time. City will serve notice of such failure upon the sureties and in the event the sureties neglect or refuse to cure the breach within the time specified in such notice, City shall have the power to suspend the performance or any part thereof of the sureties.

22.4 Damages to the City. The City will be entitled to recovery of all Losses under law or equity in the event of Contract’s default under the Contract Documents. In the event that City's Losses arise from Contractor’s default under the Contract Documents, City shall be entitled to withhold monies otherwise payable to Contractor until Final Completion, as defined in the General Conditions, of the Project. If City incurs Losses due to Contractor’s default, then the amount of Losses shall be deducted from the amounts withheld. Should the amount withheld exceed the amount deducted, the balance will be paid to Contractor or its designee upon Final Completion of the Project. If the Losses incurred by City exceed the amount withheld, Contractor shall be liable to City for the difference and shall promptly remit same to City.

22.5 Termination of the Contract for Default. Without limitation to any of City’s other rights or remedies at law or in equity, and reserving to itself all rights to Losses related thereto, City shall have the right to terminate this Contract, in whole or in part, upon the failure of Contractor to promptly cure any default.

City’s election to terminate the Contract for default shall be communicated by giving Contractor a written notice of termination in the manner specified for the giving of notices in the Contract. Any notice of termination given to Contractor by City shall be effective immediately, unless otherwise provided therein.

22.6 Termination Without Cause. City shall have the option, at its sole discretion and without cause, of terminating this Contract in part or in whole by giving thirty (30) days written notice to Contractor.

Contractor agrees to accept such sums as allowed under this Section as its sole and exclusive compensation and waives any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect or incidental damages of any kind.

22.7 Compensation. Following termination without cause and within forty-five (45) days after receipt of a billing from Contractor seeking payment of sums authorized by this Section, City shall pay to Contractor as its sole compensation for performance of the Work the following: (1) the amount of the Contract Sum allocable to the portion of the Work properly performed by Contractor as of the date of termination, less sums previously paid to Contractor; (2) reasonable costs of Contractor and its Page G-4.12
Subcontractors and Sub-subcontractors for demobilizing and administering the close-out of its participation in the Project (including, without limitation, all billing and accounting functions, not including attorney or expert fees) for a period of no longer than thirty (30) days after receipt of the notice of termination in an amount not to exceed the daily sum payable to Contractor for Compensable Delays; (3) previously unpaid cost of any items delivered to the Project Site which were fabricated for subsequent incorporation in the Work.

22.8 Subcontractors. Contractor shall include provisions in all of its subcontracts, purchase orders and other contracts permitting termination for convenience by Contractor on terms that are consistent with this Contract and that afford no greater rights of recovery against Contractor than are afforded to Contractor under this Section.

22.9 Contractor’s Duties Upon Termination. Upon receipt of a notice of termination for default or for convenience, Contractor shall, unless the notice directs otherwise, do the following: (1) immediately discontinue the Work to the extent specified in the notice; (2) place no further orders or subcontracts for materials, equipment, services or facilities, except as may be necessary for completion of such portion of the Work as is not discontinued; (3) provide to City a description, in writing no later than fifteen (15) days after receipt of the notice of termination, of all subcontracts, purchase orders and contracts that are outstanding, including, without limitation, the terms of the original price, any changes, payments, balance owing, the status of the portion of the Work covered and a copy of the subcontract, purchase order or contract and any written changes, amendments or modifications thereto, together with such other information as City may determine necessary in order to decide whether to accept assignment of or request Contractor to terminate the subcontract, purchase order or contract; (4) promptly assign to City those subcontracts, purchase orders or contracts, or portions thereof, that City elects to accept by assignment and cancel, on the most favorable terms reasonably possible, all subcontracts, purchase orders or contracts, or portions thereof, that City does not elect to accept by assignment; and (5) hereafter do only such Work as may be necessary to preserve and protect Work already in progress and to protect materials, plants, and equipment on the Project Site or in transit thereto.

23. CONTRACTOR’S RIGHTS AND REMEDIES. Contractor may terminate this Construction Contract for cause only upon the occurrence of one of the following: (1) the Work is stopped for sixty (60) consecutive days, through no act or fault of Contractor, any subcontractor or any employee or agent of Contractor or any subcontractor, due to issuance of an order of a court or other public authority other than City having jurisdiction or due to an act of government, such as a declaration of a national emergency making material unavailable; or (2) if the City does not make payment of sums that are not in good faith disputed by the City and does not cure such default within ninety (90) days after receipt of notice from Contractor, then upon an additional thirty (30) days’ notice to City, Contractor may terminate the Contract.

23.1 Damages to Contractor. In the event of termination for cause by Contractor, City shall pay Contractor the sums provided for in Section 21 above. Contractor agrees to accept such sums as its sole and exclusive compensation and agrees to waive any claim for other compensation or Losses, including, but not limited to, loss of anticipated profits, loss of revenue, lost opportunity, or other consequential, direct, indirect and incidental damages, of any kind.

24. NOTICES. Any notices or other communications required or permitted to be given under this Contract shall be given in writing by personal delivery, by a recognized courier service, or by U.S. mail, postage prepaid, and return receipt requested, addressed to the respective parties as follows:

Page G-4.13
To City: To Contractor:

Assistant Public Works Director/City Engineer Ramdy C. Somerday City of Menlo Park McGuire and Hester
City Hall, 701 Laurel St. 2810 Harbor Bay Parkway
Menlo Park, CA 94025 Alameda, CA 94502

25. Notice shall be deemed communicated on the earlier of actual receipt or 48 hours after deposit in the U.S. mail, or the date of delivery shown on deliverer’s receipt. In the event of any change of address, the moving party is obligated to notify the other party of the change of address in writing within a reasonable period of time.

In addition, copies of all Claims by Contractor under this contract shall be provided to the City Attorney as follows:

To City Attorney:

City Attorney
Burke, Williams & Sorensen, LLP
181 Third Street, Suite 200
San Rafael, CA 94901
All claims shall be delivered personally or sent by certified mail.

26. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY. In the performance of this Contract, Contractor shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental handicap, or medical condition. Contractor will take affirmative action to ensure that employees are treated without regard to race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental handicap, or medical condition.

27. CONTRACT DOCUMENTS AND PRECEDENCE. The Contract Documents shall consist of the following documents. In case of inconsistencies between Contract Documents, the documents are listed in order of precedence.

28. PUBLIC WORKS CLAIMS. This Contract is subject to Public Contracts Code Section 9204 governing contractor claims.

29. ATTORNEYS’ FEES; VENUE. In the event that any party to this Contract commences any legal action or proceeding to enforce or interpret the provisions of this Contract, the prevailing party in such action or proceeding shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief to which the successful party may be entitled.

The venue for any litigation shall be San Mateo County.

30. COOPERATION. In the event any claim or action is brought against the City relating to Contractor’s performance or services under this Agreement, Contractor shall render any reasonable assistance and cooperation which City might require.

31. NUISANCE. Contractor shall not maintain, commit, nor permit the maintenance or commission of any nuisance in connection with the performance of services under this Contract.

Page G-4.14

32. GOVERNING LAW. This Contract shall be construed in accordance with and governed by the laws of the State of California.

33. COMPLETE AGREEMENT; SEVERABILITY. This Contract, and any other documents incorporated herein by reference, represent the entire and integrated agreement between the City and Contractor.

This Contract supersedes all prior oral and written negotiations, representations or agreements. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Contract may only be modified by a written amendment duly executed by the parties to this Contract. In case a provision of this Contract is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected.

34. COUNTERPARTS. This Contract may be signed in multiple counterparts, which shall, when executed by all the parties constitute a single binding contract.

Signatures on next page.

Page G-4.15
IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first above written.

FOR FIRST PARTY:

Signature Date
Printed name Title
Tax ID#
APPROVED AS TO FORM:

Nira F. Doherty, City Attorney Date
FOR CITY OF MENLO PARK:

Justin I. C. Murphy, City Manager Date
ATTEST:

Judi A. Herren, City Clerk Date
Page G-4.16
ATTACHMENT B Page G-4.17
Administrative Services
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov

STAFF REPORT
City Council
Meeting Date: 6/13/2023
Staff Report Number: 23-141-CC
Public Hearing: Public hearing on proposed fiscal year 2023-24 budget and capital improvement plan
Recommendation
Staff recommends that City Council:

1. Hold a public hearing on the proposed budget for fiscal year 2023-24 and capital improvement program (Attachment A), and

2. Provide direction on budget strategies and/or service level enhancements to incorporate into the fiscal year 2023-24 budget for adoption June 27, 2023.

Policy Issues
The City Council maintains responsibility for all budgetary appropriations. Under section 2.08.080(8) of the Menlo Park Municipal Code (MPMC), the city manager has the responsibility “to prepare and submit to the City Council the annual budget.” A public hearing on the city manager’s proposed budget is consistent with the City’s budgeting process.

Background
Preparation of the annual budget takes place primarily during the months of March through May and is informed by City Council direction including amendments to the current fiscal year’s budget, adoption of budget principles, and adoption of City Council priorities. The proposed budget was published May 31, 2023, for consideration by the community and City Council. A budget workshop was held June 1, 2023, to provide additional information about the budget and answer questions from the community. The presentation and recording of the workshop are available on the City’s website as Attachment A.

Analysis
Staff developed the city manager’s proposed fiscal year 2023-24 budget through a collaborative effort among the budget team, department contributors, OpenGov, consultants, members of the public, and the City Council. Consistent with the City Council budget principles and prior adopted guidance on fund segregation, all funds are fully funded with positive fund balances and one-time revenues are segregated from the General Fund. Also, annual surplus/(deficit) balances are presented to determine if a fund’s ongoing cost are appropriate. This format ensures carryforward capital balances and first year request of the Five-Year Capital Improvement Plan (CIP) is sufficiently covered.

The city manager’s proposed budget entails a baseline spending plan for 290.5 full-time equivalent (FTEs) employees (base level from fiscal year 2022-23) and service level enhancements of six additional FTEs for the launch of services at the Menlo Park Community Campus (MPCC), for a total of 296.5 FTEs. The city manager’s budget is publicly presented through the City’s OpenGov portal which facilitates analysis and AGENDA ITEM H-1 Page H-1.1
Staff Report #: 23-141-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov discussion (Attachment A). The city manager’s budget is developed with many revenue and expense assumptions discussed throughout these documents. The OpenGov platform facilitates scenario development and adjustments requested by City Council and members of the public. The City’s move to an online budget portal through OpenGov has substantially changed the budget development process and provides an opportunity for greater transparency. The city manager’s budget calendar includes a public hearing scheduled June 13 and final budget adoption June 27.

Budget strategies for City Council consideration
The proposed General Fund budget for fiscal year 2023-24 is balanced by using $0.96 million in reserves as well as the remaining $3.7 million of American Rescue Plan Act (ARPA) funds. The loss of the City’s Utility Users Tax (UUT) and an initial estimate of $4.5 million in refunds combined with growing demand for City services and rising costs of conducting business places increased pressure on the General Fund. Staff requests City Council direction on strategies to balance its General Fund budget without depleting reserves to an unacceptable level.

American Rescue Plan Act stimulus funds
Under guidance published by the U.S. Treasury Department Final Rule, agencies receiving ARPA funds may use a “revenue backfill” method or select a “standard allowance” with streamlined reporting requirements for revenue loss up to $10 million, not to exceed the recipient’s award amount. The City Council adopted Resolution No. 6756 to select the standard allowance for the $8,300,000 in ARPA funds. In addition, the City Council authorized all but the remaining $3.7 million of these funds and proposes to use this amount in its fiscal year 2023-24 budget.

Since 2020, the City has incurred an additional $880,000 in ARPA-eligible expenses in support to businesses impacted by the pandemic through the outdoor dining grant program and downtown streetscape modifications; stormwater projects including the Chrysler Pump Station and San Francisquito Creek Upstream Flood Improvement Project; HVAC (heating, ventilation, and air conditioning) projects that installed MERV13 air filters at all city facilities and increased servicing of HVAC systems in all city facilities; technology upgrades including purchase of software, cell phones, monitors, workstation equipment that allowed for continuity of services during the pandemic; and a variety of COVID-19 testing and prevention activities including on-site testing, purchase of personal protective equipment (PPE), provision of hand sanitizer stations and public health signage, and supplemental paid sick leave (SPSL) leave for employees.

General Fund contribution to the Capital Improvement Program (CIP) The fiscal year 2023-24 budget continues the $3 million General Fund contribution to CIP. The City Council may consider reducing the General Fund contribution and relying more on restricted funding sources and grants. The five-year forecast assumes a reduced General Fund contribution of $1 million starting in fiscal year 2024-25.

Additional Unfunded Accrued Liability (UAL) payment
The City Council may consider revising its adopted budget principle to implement annual payments to achieve amortization of the CalPERS net pension liability in accordance with the actuarial 15-year amortization schedule. The fiscal year 2023-24 proposed budget proposes a suspension of additional UAL payments, and the General Fund five-year forecast assumes continual suspension in fiscal year 2024-25 and $500,000 payments in the following three years. This strategy would extend the amortization schedule.

In 2014, the City Council adopted a resolution to create a strategic pension funding reserve. The reserve has been used to pay approximately $1 million per year against the UAL.

One-time developer payments, Bayfront mitigation, Downtown Public Amenity and In-Lieu Community Amenities Funds
Page H-1.2
Staff Report #: 23-141-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Under City Council direction, staff segregated these funds from the General Fund. Some of these funds may be used to maintain the General Fund’s expenditures as well as contributions to capital projects in accordance with regulatory requirements. In particular, the City Council may consider using the One-Time Developer Payments Fund to maintain service levels and staffing at the MPCC.

Adjust master fee schedule
The City Council will consider an update to the master fee schedule at a regular meeting in August 2023 to better align fees with costs for services. Staff will engage an expert consultant to conduct a fee analysis.

Note: This effort will include an equity assessment.

Potential service level reductions
The City Council may consider reducing certain contract services, such as median landscaping or transportation on-call support.

Potential revenue-generating ballot measures
The City Council may evaluate placing a revenue-generating measure on the November 2024 ballot for voter consideration, such as an increase to the Transient Occupancy Tax (TOT), sales tax or business license tax, or a new UUT. Finance staff conducted preliminary analysis to provide an approximate level of revenue generation capacity for ballot measures.
• An increase to the current 12% TOT between 1% and 3.5% could generate an additional $875,000 to $3 million annually.
• A newly authorized UUT measure adhering to the former tax rate structure could generate between $1.8 million and $5.8 million annually.
• An increase to the current 9.375% sales tax by $0.25 or $0.50 could generate approximately $2 million and $4 million annually.
• Additional analysis is needed to provide estimates and scenarios for business license tax revisions.

Reserve policies
City Council Procedure #CC-14-003 provides the fund balance policy that includes the Emergency Contingency Reserve, Economic Stabilization Reserve and Strategic Pension Funding Reserve. On April 25, 2023, the City Council directed staff to research reserve policies of neighboring cities to compare reserve policy target levels. Staff conducted initial research available in Attachment B, and will continue to investigate best practices. Note: reserves are a component in maintaining the City’s AAA bond rating—the highest available credit rating—that enables access to better interest rates and financing options for capital projects and more.

Service level enhancement requests
A variety of service level enhancements (SLEs) are included in the proposed fiscal year 2023-24 budget for City Council consideration, summarized in Attachment C. These enhancements are intended to restore and/or improve services provided to the community with an on-going annual impact of 1.6 million. SLEs include several one-time purchases of equipment, implementation of new initiatives, and expenditures associated with the launch of MPCC. Note: All proposed additional FTEs are related to the MPCC, and an updated organizational chart is provided in Attachment D.

Fund balances in the General Fund
Forecasted fund balances through fiscal year 2022-23
Staff prepared General Fund forecasted fund balances through June 30, 2023 (Attachment E) using April year to date (YTD) actuals, compared to the prior forecast which used February YTD actuals presented at the March 18, 2023, City Council meeting. From the prior forecast, vehicle license fees increased $0.6 Page H-1.3
Staff Report #: 23-141-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov million, license and permits are estimated to increase $0.5 million, and current investment earnings increased approximately $1 million. CalPERS and health care expenses were adjusted upward to 32% of salaries and wages, consistent with audited ratios, resulting in a $4.3 million increase. Operating and services were adjusted downward for approximately $3 million considering services not starting and existing encumbrances. Currently, the forecasted surplus through June 30, 2023, results from $81 million in revenues offset by $76.6 million in expenses, arriving at a positive $4.4 million. Additionally, the unassigned fund balance is $7.2 million and both the Emergency Contingency Reserve and Economic Stabilization Reserve are maintained at minimum policy levels.

Proposed budgeted fund balances through fiscal year 2023-24 Staff prepared General Fund fiscal year 2023-24 proposed budged fund balances (Attachment F) with $75.3 million in revenues offset by $76.3 million in expenses, arriving at a negative $0.96 million. Currently, the proposed budget forecasts through June 30, 2024, an unassigned fund balance is $6.3 million and both the Emergency Contingency Reserve and Economic Stabilization Reserve maintained at minimum policy levels.

The proposed budget incorporates a 10% vacancy rate based on start date analysis for planned recruitments, suspends the additional UAL payment from the Strategic Pension Funding Reserve, and excludes the one-time developer payment fund (Fund 111) from the General Fund for budgeting purposes.

Note: Since the June 1, 2023, public budget workshop, staff adjusted Vehicle License Fee (VLF) revenue based on the latest information from HdL, increasing the total VLF revenue by $1.8 million.

Table 1: General Fund balance components (excluding Fund 111) Item Estimated balance
Audited fund balance June 30, 2022 $32,882,360
Estimated fund balance June 30, 2023 $37,351,997
Fund Balance Reserve components
Non-spendable prepaids $446,047
Projects related, encumbrance $540,643
Strategic pension funding reserve $2,288,492
Emergency contingency reserve $11,490,466
Economic stabilization reserve $15,320,621
Unassigned fund balance $7,265,728
Ending fund balance June 30, 2024 $36,386,850
Fund Balance Reserve components
Non-spendable prepaids $446,047
Project related, encumbrance $540,643
Strategic pension funding reserve $2,288,492
Emergency contingency reserve $11,448,165
Economic stabilization reserve $15,264,220
Unassigned fund balance $6,398,284
Page H-1.4
Staff Report #: 23-141-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Non-departmental budgets
Under City Council direction, staff segregated one-time as well as other developer deposits and activity from the general fund to improve ongoing cost estimates. Staff is not recommending recovery of the Vehicle Replacement Fund’s budget this year as the estimated $1.8 million fund balance is sufficient. Nondepartmental budgets consist of the following:

Revenues:
• Developer payment (Fund 111) - $1.3 million Meta (formerly Facebook) development agreements • Community amenities (Fund 369) - $4.8 million for Menlo Flats, $16.1 million for 1350 Adams Ct., $3.5 million for 1125 O’Brien Dr.
• Measure T bond assessments - $2.4 million
• Internal Service Funds budget (allocated by FTEs)
Expenses:
• ARPA (Fund 397) - $3.7 million (funds must be spent by December 2024) • Measure T Bonds - $2.4 million debt service
• Measure T Bonds - $8.8 million for MPCC, $3.1 million for Willow Oaks, $0.7 million for Burgess Park playground equipment
• Internal Service Funds budget (allocated by FTEs)
General Fund five-year forecast
The General Fund five-year forecast (Attachment G) reflects adopted budgeting principals and assists the City Council with long-term strategic decisions for the City’s largest operating fund. The goal of the five-year forecast is to present the City Council with an outlook for a sustainable General Fund over the next five years. Revenue and expenditure assumptions in the forecast are based on current financial projections. The model received input from a variety of sources, including the executive team and expert consultants. For example, tax revenue projections are provided by HdL Companies (HdL), MuniServices, and the County of San Mateo.

Revenues:
• Property taxes forecasted by HdL at 4.6% annual growth • Sales taxes forecasted by MuniServices at 4% annual growth • TOT forecasted by HdL at 5% annual growth
• UUT is excluded
• Excess Educational Revenue Augmentation Fund (ERAF) is estimated at proposed budget (no growth) • Licenses and permits estimated at 4% annual growth over proposed budget • Other revenues include $1 million annual disbursement from California Employer’s Retiree Benefit Trust (CERBT) for retiree premiums
• Transfers for fiscal year 2023-24 are $3.7 million ARPA and $0.5 million for assessment and solid waste support
Expenses:
• Salaries and wages at 240 FTEs, cost of living (COLA) of 3% and merit increases of 1% annually (subject to labor negotiations)
• Benefits unrelated to retirement increased annually by 3% based on consumer price index (CPI) adjustment
• Retirement benefits utilize the most recent CalPERS actuarial report • Additional UAL payment is suspended in year one and two, applied at $500,000 in years three to five • Vacant factor reduced from 10% (24 FTEs) to 7% (16.8 FTEs) over five-year period Page H-1.5
Staff Report #: 23-141-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov • Services and operating expenses increase annually by 3% based on CPI adjustment • Transfer for CIP support of $3 million in year one, reduced to $1 million in following years • UUT is refunded in year two
The five-year forecast projects that total reserve balance trends downward from $36.3 million to $25.1 million over the five-year period. The City Council’s Emergency Contingency Reserve is maintained at the minimum policy level of 15% of the adopted budget. The Economic Stabilization Reserve falls below the minimum policy level of 20% of the adopted budget in fiscal year 2024-25 and decreases to 5% in year five.

In addition, the unassigned reserve balance decreases to $0.25 million for the last three years of the forecast to maintain the necessary minimum liquidity for cash flow to cover operating expenses.

Proposed five-year capital improvement program
Over the last three years, the capital program was constrained by available funding and staff resources to complete projects. In fiscal year 2020-21, the overall program budget was reduced by over 30% in response to anticipated revenue shortfalls in light of the pandemic. In fiscal year 2021-22, program funding levels were restored to typical levels, but deferred maintenance and new project needs have continued to outpace available funds and resources. As shown in Table 2, proposed in fiscal year 2023-24 are 81 funded and carry-over projects, with eight new projects. Twenty-six projects are proposed to receive new funds of approximately $14.6 million. Funding sources used include general capital funds, water capital funds, transportation impact fees, grants and donations, and sales tax measures such as San Mateo County Measures A and W for transportation and street projects. After the May 9 study session on the capital program, two additional project funding requests were added:
• Community amenities funds for Belle Haven Parks Improvement project, as directed by the City Council May 9. $0.3 million is requested for fiscal year 2023-24 to initiate this project. • Grants and donation funds for implementation of SAFER Bay. The City was notified May 26 that the first phase of the grant for this project has been obligated. Staff has updated the expenditures anticipated for this project over the five-year horizon of the capital program. For fiscal year 2023-24, $4 million in expenses are anticipated. The entire project cost estimate is $67 million.

The summary of funding requests in Table 2 reflects this change.

Table 2: Capital improvement program,
Fiscal year 2023-24 proposed funding requests by category Category Proposed request Funding sources
City buildings and systems $1,224,000 General capital
Environment $1,692,000 General capital, grants
Parks and recreation $1,468,000 Recreation in-lieu, general capital, community amenities
Stormwater $4,065,000 General capital, grants, donations Streets and sidewalks $2,700,000 Sidewalk assessment, general capital, construction street impact fee, highway users (gas) tax, etc.

Traffic and transportation $2,200,000 Transportation impact fees, grants, Measures A and W, transportation
Water system $1,208,000 Water capital
Total $14,557,000
Page H-1.6
Staff Report #: 23-141-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov In addition to those projects summarized in Table 2, staff is continuing to track three other resource needs for upcoming projects that are continuing to evolve: funding for MPCC, erosion at the Alma Street bridges over San Francisquito Creek, and the pedestrian/bicycle trail under Junipero Serra Boulevard at Sand Hill Road/Alpine Road adjacent to the Stanford Golf Course. As these project needs are further refined, they may result in changes to the funding and priorities in the CIP.

A funding agreement with the City of Palo Alto and Caltrain is anticipated to be scheduled for the City Council's consideration July 11 for the erosion at the Alma Street railroad and pedestrian/bicycle bridges from the winter 2022-23 storms. Caltrain is leading these emergency repairs and is coordinating with both cities to address the area around both bridges.

City Council direction
Staff requests direction from the City Council after considering budget strategies, the proposed budget including SLEs, and five-year forecast assumptions. Staff will incorporate this direction into the fiscal year 2023-24 budget for adoption June 27, 2023. Items without a clear majority to include or exclude may be deliberated after the fiscal year and incorporated as amendments to the budget if resources allow. The following draft resolutions will require adoption prior to July 1, 2023.

Draft resolutions
Adoption of the fiscal year 2023-24 budget and CIP (Attachment H) This resolution formally appropriates funds and allows for expenditures during the fiscal year. The total appropriation amounts by fund is pending additional direction by City Council but will be included after incorporating direction received June 13.

Appropriations limit (Attachment I)
California Government Code sets a limit on appropriations based on a number of factors including the prior limit, population change and COLA changes. This resolution establishes the appropriations limit for fiscal year 2023-24.

Salary schedule amendments (Attachment J)
The salary schedule is being updated to reflect a three percent (3%) general salary increase for the Police Officers’ Association (POA) and Police Sergeants’ Association (PSA), pursuant to their current memoranda of understanding ending Aug. 31, 2024, and June 30, 2025, respectively. The POA salary increase is scheduled to become effective the beginning of the first full pay period following July 1, 2023, which is July 2, 2023. The salary provision included in the PSA MOU requires that the current minimum base pay differential of fifteen percent (15%) between top step police corporal and top step sergeant is maintained. In effect, this means that PSA will receive approximately the same three percent (3%) increase as POA scheduled to take effect July 2, 2023. No other salary schedule amendments are proposed at this time.

Pending the City Council’s decision on the proposed MPCC FTEs (Attachments C and D), one new classification focused on nutrition services will be added to the salary schedule at a future date.

Rate assistance program (Attachment K)
The City established a rate assistance pilot program for solid waste and water utilities in June 2020. This resolution extends the rate assistance program through June 30, 2024. This program is funded with nonrate revenues from the General Fund’s unassigned fund balance.

Award authority (Attachment L)
City Council Procedure #21-024-CC establishes award authority and bid requirements and includes an annual adjustment in purchasing limits according to inflation. The inflation from 2022 to 2023 results in a $7,000 increase in the city manager’s signature authority, as indicated in the authority memo for fiscal year Page H-1.7
Staff Report #: 23-141-CC

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov 2023-24.

Anticipated budget amendments during fiscal year 2023-24 mid-year budget review City Council typically conducts a mid-year budget review during the third quarter of each fiscal year, generally in February. Staff will monitor grants and future authorizations from the City Council to include in the mid-year budget amendments, including a $50,000 Measure K grant award from the County of San Mateo to offset costs for the Police Department’s SLE related to voice logging equipment.

Next steps for the fiscal year 2023-24 budget
June 27, 2023: Adoption of the fiscal year 2023-24 budget August 2023: Publication of the fiscal year 2023-24 adopted budget document Impact on City Resources
There is no impact on City resources.

Public Notice
Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting.

Attachments
A. Hyperlink – City budget (fiscal year 2023-24 proposed budget and CIP, budget workshop presentation and recording): menlopark.gov/budget
B. Reserve policy research
C. SLEs
D. Service level restoration – MPCC
E. Fiscal year 2022-23 forecasted fund balances
F. Fiscal year 2023-24 proposed budgeted fund balances
G. General Fund five-year forecast
H. Draft resolution adopting the fiscal year 2023-24 budget and CIP I. Draft resolution establishing the appropriations limit J. Draft resolution amending the salary schedule effective July 2, 2023 K. Draft resolution extending the rate assistance program L. Draft award authority memo for fiscal year 2023-24
Report prepared by:

Marvin Davis, Interim Finance Director
Brittany Mello, Administrative Services Director
Nikki Nagaya, Deputy City Manager
Stephen Stolte, Assistant City Manager
Page H-1.8
City / Town Reserve Policy
Town of Atherton Emergency Reserve: 15%
Budget Stabilization Reserve: 20%
City of Belmont General Fund Reserve: 33%
City of Brisbane
Natural Disaster Reserve: $3.5M
Economic Reserve: $2.8M
Budget Contingency: 5%
City of Burlingame
Economic Reserve: 24%
Catastrophic Reserve: 2-9%
Contingency Reserve: $0.5M
City of Daly City General Fund Reserve: 17%
City of East Palo Alto Contingency Reserve: 35%
City of Half Moon Bay General Fund Reserve: 30%
Economic Reserve: 20%
City of Menlo Park Emergency Reserve: 15-20%
Economic Reserve: 20-25%
City of Millbrae General Fund Reserve: 15%
City of Pacifica General Fund Reserve: 10%
City of Redwood City General Fund Reserve: 15-20%
City of San Bruno General Fund Reserve: 25%
Contingency Reserve: $1.5M
City of San Carlos Economic Reserve: 12.5-20%
City of San Mateo General Fund Reserve: 25%
City of South San Francisco General Fund Reserve: 15-20% Town of Woodside General Fund Reserve: 30%
Foster City General Fund Reserve: 33.3-50%
Town of Colma Budget Stabilization Reserve: 100% of prior yr expenses Town of Hillsborough General Fund Reserve: 30-50%
Town of Portola Valley General Fund Reserve: 60%
Reserve policy research
ATTACHMENT B Page H-1.9
Attachment C: Service level enhancements Expenses
Department / Division SLE description request Revenues One-time On-going Recreation MPCC: Operating revenues: Fees, rentals, charges, reimbursements, donations $715,000
Recreation: Library MPCC: 2 FTEs: Lead and support staff for library services at MPCC $249,096 Recreation: Gymnasium MPCC: 2 FTEs: Lead and support staff for gymnasium services 265,671 Recreation: Seniors MPCC: 1 FTE: Lead staff for senior citizen meal service 140,631 Recreation: Operations MPCC: 1 FTE: Building supervision 190,291 Recreation: Various MPCC: Operating expenses: Temp labor, supplies, contracts, IT support, repairs & maintenance, utilities, training 1,141,000 Community Dev: Housing Implementation of anti-displacement strategies and .2 FTE 187,500 Police: Patrol
Flock cameras to capture vehicle, pedestrian and bicycles activity In car cameras to enhance capturing scene activity
Community Wellness and Crisis Response Team (CWCRT)
940,344 80,000
Police: Communications Voice logging equipment (GC 34090, CCP337) on dispatch calls, Staff has submitted for grant funding 104,120
Public Works: Parks Equipment for zero emmission landscapting ordinance (ZELE) 200,000 CMO: Clerk Planning commissioner stipend 16,800
CMO: Sustainability Electric gardening rebate program 35,000 CMO: City Manager Diversity, Equity, Inclusion, and Belonging Initiatives 51,000 Total Citywide $715,000 $1,244,464 $2,356,989
On-going Total -$1,641,989
ATTACHMENT C Page H-1.10
City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov Library and Community Services

MEMORANDUM
Date: 6/13/2023
To: City Council
From: Library and Community Services Director
Re: Fiscal year 2023-24 Service level restoration – Menlo Park Community Campus
The Menlo Park Community Campus (MPCC) is on track to open during fiscal year 2023-24. To operate the new facility, some existing services and personnel that are currently housed in interim locations will be relocated to the new facility, including the senior center, youth center and branch library. Additionally, some new personnel and resources are needed to operate the facility in the manner and capacity envisioned by the City Council and the community. For this reason, the fiscal year (FY) 2023-24 proposed budget includes service level restoration requests to:
 Restore operations that were suspended or reduced during the MPCC construction, such as gymnasium, fitness center, recreation services, aquatics center and facility rentals  Staff an expanded public library space that spans two floors instead of the current one floor space
 Support new services, such as makerspace and teen zone  Create a new job classification to support enhanced nutrition services, planning and preparation of nutritious meals for senior center and youth center participants, provide nutrition and health/wellness education services to program participants  Reinstate overhead and operating costs such as utilities, supplies and services.

The service level restoration proposal includes 6.0 full-time equivalent (FTE) new/restored personnel for approximately $965,000 in personnel expenses, plus $1.02 million in nonpersonnel operating expenses offset by $715,000 in projected revenues. Operating expenses and revenues are presented in amounts representing a full year of operations; however, it is assumed that operations at the MPCC facility are likely to begin approximately halfway through the fiscal year (early 2024). The service level restoration request is outlined in the FY 2023-24 proposed budget. The following illustrations provide additional detail about the requested personnel.

ATTACHMENT D Page H-1.11

City of Menlo Park 701 Laurel St., Menlo Park, CA 94025 tel 650-330-6600 www.menlopark.gov 2 Position* FTE Operational/programming need
Librarian I/II 1.00 Lead staff for expanded library space, makerspace, teen zone
Library Assistant I 1.00 Support staff for expanded library space, makerspace, teen zone
Recreation Coordinator 1.00 Lead staff for gymnasium, fitness center, facility rentals Senior Program Assistant 1.00 Support staff for gymnasium, fitness center, facility rentals Nutrition Services
Coordinator 1.00 Lead staff for senior center daily meal service, youth center food service, nutrition/health/wellness education LCS Supervisor 1.00 Building supervisor - operations, athletic field use, and site liaison to aquatics provider
Temporary staff ($120,000)
Front line customer service support at 3 primary service points seven days/ 63+ hours per week, plus room set up, facility attendants for rentals, and related tasks
Total 6.00 $965,000
Page H-1.12
FY 2022‐23 Forecasted Fund Balances
General Fund (excl Fund 111) 6/30/2022 Rev & TI Exp & TO Sur/(Def) 6/30/2023 100 General $        32,882,360 $           81,072,742 $           76,603,105 $             4,469,637 $        37,351,997 Non‐spendable prepaids 446,047                   446,047 Project related, encumb 1,540,643               540,643 Strategic pension funding 3,250,860               Actual               2,288,492 Emergency (Policy: 15‐20%) 12,064,534             15% 11,490,466 Economic (Policy: 20‐25%) 15,000,000             20% 15,320,621 Unassigned 580,276                               7,265,728 Total Reserve Breakdown 32,882,360                         37,351,997 One‐time, Developer, In‐lieu
111 One‐time Revenue              1,350,000                1,450,000 ‐                1,450,000               2,800,000 332 Bayfront Impact              6,760,554                2,593,451 ‐                2,593,451               9,354,005 353 Downtown Public Amenity              2,442,080 10,000 ‐ 10,000               2,452,080 369 Community Amenities              9,405,000 ‐ ‐ ‐               9,405,000 Housing Activity
221 Housing Special Revenue              6,602,921 1,064 24,000 (22,936)               6,579,985 222 Below Mrkt Rt Housing Spec Rev            32,538,570                6,847,779 439,967                6,407,812             38,946,382 223 Federal Revenue Sharing                  121,787 500 4,000 (3,500) 118,287 224 Community Devlpmt Block Grant              1,381,809 1,500 4,000 (2,500)               1,379,309 364 HUT Repair and Maintenance ‐ 793,824 ‐ 793,824 793,824 394 Communitywide Electrification Efforts ‐ ‐ ‐ ‐ ‐ Library & Community Service
202 Miscellaneous Trust                  155,521 145,000 145,000 ‐ 155,521 203 Donations ‐ Library and Community Se 348,051                   151,044 ‐ 151,044 499,095 204 Maria S Hoffman Donation Senio ‐ 266,189 ‐ 266,189 266,189 251 Big Lift ‐ 295,000 187,200 107,800 107,800
252 Childcare Food ‐ 85,000 85,000 ‐ ‐
253 Belle Haven Child Devlpmt Ctr ‐                2,003,000                1,552,942 450,058 450,058 254 Preschool‐QRIS 4,562 12,000 ‐ 12,000 16,562
256 Recreation In‐Lieu              2,869,135 88,200                3,000,000               (2,911,800) (42,665) 304 Menlo Park Community Campus              4,561,827                3,000,000                5,124,379               (2,124,379)               2,437,448 305 Diverse Literature LSTA 7,963 20,000 20,000 ‐ 7,963 334 BCSS Wellness Grant ‐ ‐ ‐ ‐ ‐
Police Enforcement
327 Supp Law Enforcement Services                  305,494 284,689 145,203 139,486 444,980 328 Downtown Parking Permits              4,449,378 112,711 195,600 (82,889)               4,366,489 Transportation. Streets, Maint
211 Heritage Tree                  419,936 10,000 ‐ 10,000 429,936 213 CalRecycle SB1383 Local Grant 50,108 25,000 25,000 ‐ 50,108 255 Senior Transportation ‐ 43,700 ‐ 43,700 43,700
329 OTS Grant 557 24,025 ‐ 24,025 24,582
351 Transportation Impact Fees              9,269,907              10,191,160 251,222                9,939,938             19,209,845 352 Transportation                  871,875 ‐ 19,488 (19,488) 852,387 354 Storm Drainage Fees 93,914 137,565 97,000 40,565 134,479 355 Shuttle Program ‐                1,293,151                1,170,028 123,123 123,123 356 County Transp Tax (Measure A)                  965,258                1,002,551                1,045,622 (43,071) 922,187 357 Highway Users (Gas Tax)              2,874,195                1,029,129 132,751 896,378               3,770,573 358 Landscape/Tree Assessment                  743,057                1,289,757                1,244,284 45,473 788,530 359 Sidewalk Assessment 90,831 305,838 27,050 278,788 369,619 360 Measure M 87,724 140,000 140,000 ‐ 87,724
361 Storm Water Management(NPDES)                  383,316 377,509 468,839 (91,330) 291,986 362 Construction Impact Fee              6,027,315                1,322,962 86,525                1,236,437               7,263,752 363 Measure W              1,184,982 429,119 ‐ 429,119               1,614,101 365 Landfill Post‐Closure              7,939,049 932,116 527,575 404,541               8,343,590 375 CA Coastal Consv Priority Grt ‐ 500,000 ‐ 500,000 500,000 376 Caltrans ‐ 426,000 ‐ 426,000 426,000
377 California State Parks Dept ‐ 798,950 ‐ 798,950 798,950 368 Bayfront Park Maintenance                  646,764 3,000 254,721 (251,721) 395,043 501 General Capital Improvement            23,735,241                7,551,816                2,732,518                4,819,298             28,554,539 370 Haven Avenue Streetscape Grant ‐ ‐ ‐ ‐ ‐
396 CA Arrearage Program Water Res 11,314 ‐ ‐ ‐ 11,314 FY 2022‐23 Fcst
ATTACHMENT E Page H-1.13
Attachment E: FY 2022‐23 Forecasted Fund Balances
General Fund (excl Fund 111) 6/30/2022 Rev & TI Exp & TO Sur/(Def) 6/30/2023 FY 2022‐23 Fcst
Debt Service
400 Library GO Bond 1990                  351,403                        1,500                    360,000                  (358,500)                     (7,097) 401 Measure T GO Bonds            19,800,019                2,365,456                2,350,456                      15,000             19,815,019 510 Library Addition                  118,662                        2,000                    121,000                  (119,000)                         (338) 521 SMC Transportation Authority                               ‐                    170,000                                 ‐                    170,000                  170,000 Water Activity
600 Water Capital            20,246,487                2,486,387                    997,498                1,488,889             21,735,376 601 Water Operations            29,342,228              14,836,457              11,292,015                3,544,442             32,886,670 610 Solid Waste Service              3,145,626                    692,456                    372,989                    319,467               3,465,093 Internal Services
701 Workers' Compensation                  962,963                    928,488                1,835,435                  (906,947)                    56,016 702 General Liability                (661,801)                2,582,824                1,648,294                    934,530                  272,729 703 Other Post Employment Benefits                  824,278                                 ‐                1,062,323               (1,062,323)                 (238,045) 704 IT Internal Service              1,801,504                3,752,348                5,861,977               (2,109,629)                 (308,125) 705 Vehicle Replacement              4,046,069                1,446,162                1,443,373                        2,789               4,048,858 Page H-1.14
FY 2023‐24 Budgeted Fund Balances
General Fund (excl Fund 111) 6/30/2023 Rev & TI Exp & TO CIP Rev CIP Exp Sur/(Def) 6/30/2024 100 General $        37,351,997 $75,354,952 $ ‐ 76,321,098 $ $ ‐ $          (966,147) $  36,385,850 Non‐spendable prepaids 446,047            446,047
Project related, encumb 540,643            540,643
Strategic pension funding 2,288,492                Actual %        2,288,492 Emergency (Policy: 15‐20%) 11,490,466              15% 11,448,165 Economic (Policy: 20‐25%) 15,320,621              20% 15,264,220 Unassigned 7,265,728                      6,398,284
Total Reserve Breakdown 37,351,997                   36,385,850 One‐time, Developer, In‐lieu
111 One‐time Revenue               2,800,000       1,350,000 ‐ ‐ ‐           1,350,000        4,150,000 332 Bayfront Impact               9,354,005 ‐ ‐ ‐ ‐ ‐        9,354,005 353 Downtown Public Amenity               2,452,080            10,000 ‐ ‐               748,718             (738,718)        1,713,362 369 Community Amenities               9,405,000    24,400,000 ‐ ‐               300,000         24,100,000      33,505,000 Housing Activity
221 Housing Special Revenue               6,579,985               1,000             24,000 ‐ ‐                (23,000)        6,556,985 222 Below Mrkt Rt Housing Spec Rev             38,946,382       3,096,433          661,999 ‐ ‐           2,434,434      41,380,816 223 Federal Revenue Sharing 118,287                  500               4,000 ‐ ‐                  (3,500)            114,787 224 Community Devlpmt Block Grant               1,379,309               1,500               4,000 ‐ ‐                  (2,500)        1,376,809 364 HUT Repair and Maintenance 793,824          844,369 ‐ ‐           1,550,000             (705,631)              88,193 394 Communitywide Electrification Efforts ‐      2,250,000       2,250,000 ‐ ‐ ‐ ‐ Library & Community Service
202 Miscellaneous Trust 155,521          145,000          145,000 ‐ ‐ ‐            155,521 203 Donations ‐ Library and Community Se 499,095          295,000 ‐ ‐ ‐               295,000            794,095 204 Maria S Hoffman Donation Senio 266,189 ‐ ‐ ‐ ‐ ‐            266,189 251 Big Lift 107,800          295,000          260,109 ‐ ‐                 34,891            142,691 252 Childcare Food ‐            85,000             85,000 ‐ ‐ ‐ ‐ 253 Belle Haven Child Devlpmt Ctr 450,058       2,003,000       2,236,023 ‐ ‐             (233,023)            217,035 254 Preschool‐QRIS 16,562            12,000 ‐ ‐ ‐                 12,000              28,562 256 Recreation In‐Lieu (42,665)       1,488,200 ‐          725,414           1,650,779               562,835            520,170 304 Menlo Park Community Campus               2,437,448 ‐ ‐       7,297,000           9,077,164          (1,780,164)            657,284 305 Diverse Literature LSTA 7,963            20,000             20,000 ‐ ‐ ‐                7,963 334 BCSS Wellness Grant ‐            28,785 ‐ ‐ ‐                 28,785              28,785 Police Enforcement
327 Supp Law Enforcement Services 444,980          100,000          100,000 ‐ ‐ ‐            444,980 328 Downtown Parking Permits               4,366,489 ‐          202,450 ‐           2,400,000          (2,602,450)        1,764,039 Transportation. Streets, Maint
211 Heritage Tree 429,936          160,000 ‐ ‐               250,000                (90,000)            339,936 213 CalRecycle SB1383 Local Grant 50,108 ‐ ‐ ‐ ‐ ‐              50,108 255 Senior Transportation 43,700 ‐ ‐ ‐ ‐ ‐              43,700 329 OTS Grant 24,582            70,000 ‐ ‐ ‐                 70,000              94,582 351 Transportation Impact Fees             19,209,845       2,250,000 ‐       7,900,000         14,205,954          (4,055,954)      15,153,891 352 Transportation 852,387 ‐ ‐ ‐               814,335             (814,335)              38,052 354 Storm Drainage Fees 134,479         100,000          100,000 ‐ ‐ ‐            134,479 355 Shuttle Program 123,123       1,004,937       1,126,648 ‐ ‐             (121,711)                1,412 356 County Transp Tax (Measure A) 922,187       1,200,000       1,472,700          400,000               804,940             (677,640)            244,547 357 Highway Users (Gas Tax)               3,770,573          980,962             19,692 ‐           3,394,548          (2,433,278)        1,337,295 358 Landscape/Tree Assessment 788,530          922,542       1,329,792 ‐ ‐             (407,250)            381,280 359 Sidewalk Assessment 369,619          332,476             27,050 ‐               350,000                (44,574)           325,045 360 Measure M 87,724          140,000          140,000 ‐ ‐ ‐              87,724 361 Storm Water Management(NPDES) 291,986          381,102          525,444 ‐ ‐             (144,342)            147,644 362 Construction Impact Fee               7,263,752          865,000             88,600 ‐           3,500,000          (2,723,600)        4,540,152 363 Measure W               1,614,101          550,000 ‐ ‐               900,000             (350,000)        1,264,101 365 Landfill Post‐Closure               8,343,590          970,083          586,994 ‐           3,707,212          (3,324,123)        5,019,467 375 CA Coastal Consv Priority Grt 500,000 ‐ ‐          500,000 ‐               500,000        1,000,000 376 Caltrans 426,000 ‐ ‐          426,000 ‐               426,000            852,000 377 California State Parks Dept 798,950 ‐ ‐          798,950 ‐               798,950        1,597,900 368 Bayfront Park Maintenance 395,043               3,000          264,501 ‐ ‐             (261,501)            133,542 501 General Capital Improvement             28,554,539            20,000       2,092,618     15,910,987         39,833,474        (25,995,105)        2,559,434 370 Haven Avenue Streetscape Grant ‐ ‐ ‐ ‐ ‐ ‐ ‐
396 CA Arrearage Program Water Res 11,314 ‐ ‐ ‐ ‐ ‐              11,314 FY 2022‐23 Fcst FY 2023‐24 Budget
ATTACHMENT F Page H-1.15
Attachment F: FY 2023‐24 Budgeted Fund Balances
General Fund (excl Fund 111) 6/30/2023 Rev & TI Exp & TO CIP Rev CIP Exp Sur/(Def) 6/30/2024 FY 2022‐23 Fcst FY 2023‐24 Budget
Debt Service
400 Library GO Bond 1990                     (7,097)            12,545                        ‐                        ‐                            ‐                 12,545                5,448 401 Measure T GO Bonds             19,815,019       2,375,456     14,975,870                        ‐                            ‐        (12,600,414)        7,214,605 510 Library Addition                         (338)                  750                        ‐                        ‐                            ‐                       750                    412 521 SMC Transportation Authority                  170,000                        ‐                        ‐       1,470,000                            ‐           1,470,000        1,640,000 Water Activity
600 Water Capital             21,735,376       2,144,926          328,711          500,000         16,514,202        (14,197,987)        7,537,389 601 Water Operations             32,886,670    12,096,200     10,904,658                        ‐                            ‐           1,191,542      34,078,212 610 Solid Waste Service               3,465,093          674,038          444,568                        ‐                            ‐               229,470        3,694,563 Internal Services
701 Workers' Compensation                    56,016          821,538           ‐ 832,401                         ‐                                            (10,863)              45,153 702 General Liability                  272,729       2,259,829       2,259,738                        ‐                            ‐                         91            272,820 703 Other Post Employment Benefits                 (238,045)          878,486          640,095                        ‐                            ‐               238,391                    346 704 IT Internal Service                 (308,125)       4,848,420       4,521,587                        ‐                            ‐               326,833              18,708 705 Vehicle Replacement               4,048,858                        ‐       2,189,802                        ‐                            ‐          (2,189,802)        1,859,056 Page H-1.16
City of Menlo Park
General Fund 5 Year Forecast
Fiscal Year 2023-24 through 2027-28

ATTACHMENT G
Page H-1.17

Page 2 of 5 ends

Revenues:

Property Taxes 4.6% HdL projection for 5 year secured, unsecured, VLF in lieu property tax, Other taxes are reduced by $224K admin feeSales Taxes 4.0% MuniServices 5 year projectionTOT 5.0% HdL provides TOT audit and reviews forecast, includes citizenMUtility User Tax 0.0% Removed from forecastExcess ERAF 0.0% Same level as proposed budget, no growth RPPTF 0.0% Using recent update from County of San Mateo, same level from propsoed budget, no growth Licenses & Permits 4.0% Estiamted 4% annual growth over proposed budgetOther revenues 3.0% Includes $1 million from CERBT for retiree health premiums, projected 3% annual growth Charges for Services 2.0% Projected increase in demand for services Interest Income - Reduces based on fund balanceTransfers (over forecast) $6,334,830 Expenditures:

Salaries and Wages 4.0% Subject to labor negotiations
Benefits - Non PERS 3.0% CPI inflation adjustmentBenefits - PERS (over forecast) - Based on most recent CalPERS actuarial report; Misc at -7.2%, Safety at -4% (Suspend UAL first 2 years) 2024 2025 2026 2027 2028
Vacancy factor 10.0% 9.0% 8.0% 7.0% 7.0%
Services, Repairs, etc 3.0% CPI inflation adjustment
Operating 3.0% CPI inflation adjustmentTransfers (over forecast) $10,104,313 Staffing: FTEs 2024 2025 2026 2027 2028
100 General Administration 18.36 18.36 18.36 18.36 18.36140 Administrative Services 17.75 17.75 17.75 17.75 17.75200 Police 69.50 69.50 69.50 69.50 69.50300 Public Works 43.61 43.61 43.61 43.61 43.61500 Library and Community Svcs 57.25 57.25 57.25 57.25 57.25600 Community Development 33.50 33.50 33.50 33.50 33.50 Total 239.97 239.97 239.97 239.97 239.97
The objectives of the forecast are to demonstrate reserve levels after covering operating and capital project transfers. The forecast is developed as closely as possible to a cash flow projection rather than a full accrual estimate, thus excluding receivables, payables, depreciation, amortization, and certain unrealized gains & losses. The details in this tool are used by management in forecasting receipts (revenues), disbursements (expenses) and cash reserves. The City maintains the accounting system in accordance with Generally Accepted Accounting Principles (GAAP) adopted by the Governmental Accounting Standards Board (GASB). The forecast period (2023-24 thru 2028) uses the proposed budget year 2023-24 as the base.

General Fund 5 Year Forecast: Attachment G
General Fund 5 Year Forecast (FY 2023-24 thru 2027-28): Assumptions 2024 - ARPA: $3.7 million (pending City Council direction)Other: landscape, tree, park, solid waste support CIP $1 million annual support after 2023-24 with 3% ENCCI; Other: landscape, tree, park, solid waste support Page H-1.18

Page 3 of 5 ends

Proposed Annual
2022 Act 2023 Fcst 2024 Bud 2025 2026 2027 2028 Growth
Revenue
Property taxes: Secured $ 19,572,790 $ 20,681,996 $ 21,879,747 $ 22,656,694 $ 23,668,778 $ 24,879,451 $ 26,177,955 4.6% Property taxes: VLF 6,948,161 5,265,733 6,550,825 6,785,345 7,090,007 7,453,015 7,843,553 4.6% Excess ERAF 4,410,741 4,178,538 4,168,229 4,168,229 4,168,229 4,168,229 4,168,229 RPTTF 1,816,169 3,296,750 2,510,372 2,510,372 2,510,372 2,510,372 2,510,372 Property taxes: Other 1,664,790 1,753,738 1,578,503 1,650,892 1,726,602 1,805,783 1,888,595 Sales Taxes 6,534,862 6,621,444 6,886,302 7,161,754 7,746,153 7,448,224 8,055,999 TOT 9,404,440 10,000,000 10,500,000 11,025,000 11,576,250 12,155,063 12,762,816 Utility User Tax 1,562,407 1,647,858 - - - - -
Licenses & Permits 5,987,374 5,690,231 5,128,500 5,546,986 5,333,640 5,768,865 5,999,620 Fines, Rental, Govt, Other 3,799,563 4,309,327 4,290,494 4,419,209 4,551,785 4,688,339 4,828,989 Charges for Services 4,911,158 6,017,168 5,420,750 5,529,165 5,639,748 5,752,543 5,867,594 Interest Income 1,430,530 2,200,000 2,200,000 2,110,379 1,961,133 1,768,132 1,593,078 Transfer In 875,508 7,727,531 4,241,230 523,400 523,400 523,400 523,400 Total revenue 67,236,065 81,072,742 75,354,952 73,874,080 76,411,514 79,219,344 82,220,199 Expense
Salaries and Wages 22,187,749 26,475,701 29,897,983 30,440,938 31,648,976 32,905,335 34,211,948 Salaries Temporary 1,304,040 1,733,321 1,734,350 1,734,350 1,734,350 1,734,350 1,734,350 Salaries Overtime 1,508,502 1,778,883 1,826,000 1,826,000 1,826,000 1,826,000 1,826,000 Benefits - PERS 7,007,864 8,365,856 9,378,795 9,709,336 9,712,388 9,281,435 9,182,440 Benefits - Additional UAL 962,291 962,328 - 500,000 - 500,000 500,000 Benefits - Non PERS 6,683,806 8,194,001 10,281,977 10,590,436 10,908,149 11,235,394 11,572,456 Benefits - Non PERS (Vacancy) (3,372,208) - (5,159,760) (4,731,004) (4,327,641) (3,867,371) (3,975,499) Operating Expenses 9,145,703 7,039,721 8,661,520 8,921,366 9,189,007 9,464,677 9,748,617 Services 9,991,178 8,277,179 11,324,679 11,664,419 12,014,352 12,374,783 12,746,026 Repairs & Maintenance 1,042,796 1,060,987 1,117,395 1,150,917 1,185,444 1,221,008 1,257,638 Utilities, Rentals 1,758,532 1,877,373 1,966,558 2,025,555 2,086,321 2,148,911 2,213,378 Fixed Assets, Special Project 606,442 1,576,983 1,609,638 1,657,927 1,707,665 1,758,895 1,811,662 Transfer Out 12,265,074 8,831,190 3,681,963 1,457,045 1,554,117 1,654,102 1,757,086 Total expense 70,662,187 76,603,105 76,321,098 76,447,285 79,739,129 82,237,517 84,586,102 Surplus/(Deficit) (3,426,122) $ 4,469,637 $ (966,146) $ (2,573,205) $ (3,327,614) $ (3,018,173) $ (2,365,902) $ Audited Forecast
Fund Balance (excl 111) 32,882,360 37,351,997 36,385,851 33,812,646 30,485,031 27,466,859 25,100,956 Reserves Breakdown:

Non-spendable prepaids 446,047 446,047 446,047 446,047 446,047 446,047 446,047 Project related, encumb 1,540,643 540,643 540,643 540,643 540,643 540,643 540,643 Strategic pension funding 3,250,860 2,288,492 2,288,492 2,288,492 1,788,492 1,288,492 788,492 Utility User Tax Refund - - 4,564,379 - - - 2028 -
Emergency (Policy: 15-20%) 12,064,534 11,490,466 11,448,165 11,467,093 11,885,869 12,260,628 12,612,915 15% Economic (Policy: 20-25%) 15,320,621 15,000,000 15,264,220 14,255,992 15,573,980 12,681,049 10,462,859 12% Unassigned 580,276 7,265,728 6,398,284 250,000 250,000 250,000 250,000 General Fund 5 Year Forecast: Attachment G
General Fund 5 Year Forecast (FY 2023-24 thru 2027-28): Revenue & Expense Statement Page H-1.19
General Fund 5 Year Forecast: Attachment G
General Fund 5 Year Forecast (FY 2023-24 thru 2027-28): Vacancy Rate Analysis 2024 Bud 2025 2026 2027 2028
Salary 31,723,983 32,266,938 33,474,976 34,731,335 36,037,948 Benefits (excl extra UAL) 19,660,772 20,299,772 20,620,537 20,516,829 20,754,896 Budgeted FTEs 239.97 239.97 239.97 239.97 239.97
Avg FTE 214,130 219,055 225,426 230,229 236,666
Vacancy ($) $5,138,476 $4,731,004 $4,327,641 $3,867,371 $3,975,499 Vacancy (%) 10.00% 9.0% 8.0% 7.0% 7.0%
Vacant FTEs 24.00 21.60 19.20 16.80 16.80
Page H-1.20

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General Fund 5 Year Forecast: Attachment G
General Fund 5 Year Forecast (FY 2023-24 thru 2027-28): Emergency & Economic Reserves -
3,000,000 6,000,000 9,000,000
12,000,000 15,000,000
2022 Act 2023 Fcst 2024 2025 2026 2027 2028
Emergency contingency Policy Level (15% min)
-
4,000,000 8,000,000
12,000,000 16,000,000 20,000,000
2022 Act 2023 Fcst 2024 2025 2026 2027 2028
Economic stabilization Policy Level (20% min)
Page H-1.21
RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK

ADOPTING THE BUDGET AND CAPITAL IMPROVEMENT PLAN FOR FISCAL YEAR 2023–24
WHEREAS, the City of Menlo Park, acting by and through its City Council, having considered the proposed budget document and related written and oral information at the meeting held June 13, 2023, and the City Council having been fully advised in the matter and good cause appearing therefore.

WHEREAS, City Council Procedure #21-024-CC having been replaced by City Council Policy #CC-21-024 requires City Council action to enter into agreements or settle claims with aggregate annual payments in excess of $93,000 for fiscal year 2023-24; however, expenditures in debt service on currently-issued debt, utilities, employee benefits, intergovernmental agreements, and operating technological end-user hardware and subscription services included in the Information Technology Internal Service Fund exceed the annual aggregate of $93,000 through contractual obligations or public health and safety necessity; and NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Menlo Park that the City Council does hereby:

1. Adopt the budget for the fiscal year 2023–24 as summarized in Attachment O and as modified according to majority City Council direction; and

2. Authorize staff to adjust the city manager’s proposed budget to incorporate changes in assumptions for the proposed budget, to incorporate changes directed by the City Council at budget adoption, true-up of estimated carry-over appropriations, and other minor clerical errors; and

3. Authorize the City Manager or designee to make payments for services provided to the City in the categories of debt service on currently-issued debt, utilities, employee benefits, intergovernmental agreements, and operating technological end-user hardware and subscription services included in the Information Technology Internal Service Fund, in excess of $93,000 and up to the budgeted amount in fiscal year 2023-24.

I, Judi A. Herren, City Clerk of Menlo Park, do hereby certify that the above and foregoing City Council Resolution was duly and regularly passed and adopted at a meeting by said City Council on the __ day of June, 2023, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of June, 2023.

Judi A. Herren, City Clerk
ATTACHMENT H Page H-1.22
RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK

ADOPTING AN APPROPRIATIONS LIMIT FOR THE CITY OF MENLO PARK FOR THE 2023-24 FISCAL YEAR PURSUANT TO ARTICLE XIII B OF THE

CALIFORNIA CONSTITUTION
WHEREAS, Article XIII B of the California Constitution (Proposition 4) provides for an annual appropriations limit for state and local governments beginning with the 1980-81 fiscal year, based on the 1978-79 appropriations, as adjusted for the changes in the cost of living or per capita personal income, population, and other specified factors; and WHEREAS, implementing legislation, which became effective January 1, 1981, provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the year pursuant to Article III B at a regularly scheduled meeting or noticed special meeting; and
WHEREAS, Proposition 111 subsequently amended Article XIII B of the California Constitution to provide for certain revisions in the population and inflation factors used in the calculation of the appropriations limit and to provide for a recalculation of the appropriation limit data for the fiscal years 1987-88 through 1990-91; and
WHEREAS, in accordance with applicable law, the appropriation limit for the City of Menlo Park for the 2023-24 fiscal year has been calculated to be $78,200,071, using such revisions and recalculations; and
WHEREAS, Government Code section 7910 provides that documentation used in the determination of the appropriations limit shall be available to the public at least 15 days before such meeting, and such documentation was made available to the public on the City’s website by June 13, 2023;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Menlo Park that the City Council of Menlo Park hereby:

1. Selects to use the change in the California per capita income as the cost of living adjustment factor, and (b) elects to use the annual population change in the City of Menlo Park’s population for calculating the population adjustment factor.

2. That the appropriations limit for fiscal year 2023-24 to be $78,200,071, as detailed in the calculations set forth in Exhibit A.
//
//
//
//
//
ATTACHMENT I Page H-1.23
( 2 )
I, Judi A. Herren, City Clerk of Menlo Park, do hereby certify that the above and foregoing City Council Resolution was duly and regularly passed and adopted at a meeting by said City Council on the __ day of June, 2023, by the following votes:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of June, 2023.

Judi A. Herren, City Clerk

Exhibits
A. Appropriations limit for fiscal year 2023-24
Resolution No. XXXX

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AMOUNT
A. LAST YEAR'S LIMIT $ 75,563,220
B. ADJUSTMENT FACTORS

1. Population - City 0.9909

2. Inflation 1.0444

1.0349
Total Adjustment % 0.0349
C. ANNUAL ADJUSTMENT $ 2,636,851
D. THIS YEAR'S LIMIT $ 78,200,071
E. PROCEEDS OF TAXES SUBJECT

TO LIMIT
Property Tax 36,687,676 2023-24 Proposed Budget
Sales Tax 6,886,302 2023-24 Proposed Budget
Other Taxes 10,500,000 2023-24 Proposed Budget
Special Assessments 1,255,018 2023-24 Proposed Budget
Interest Allocation 2,200,000 2023-24 Proposed Budget
$ 57,528,996
F. AMOUNT UNDER/(OVER) LIMIT $ 20,671,075
(B1*B2-1)

CITY OF MENLO PARK

APPROPRIATIONS LIMIT
FISCAL YEAR 2023-24
SOURCE
Prior Year
State Department of Finance
State Department of Finance
(B1*B2)
(D-E)
(B*A)
(A+C)
EXHIBIT A Resolution No. XXXX

Page 3 of 6 ends

May 2023
Dear Fiscal Officer:

Subject: Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance (Finance) to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2023, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2023-24. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2023-24 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit.

Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml.

Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2023.

Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.

JOE SPEPHENSHAW
Director
By:

Erika Li
Chief Deputy Director
Attachment
Resolution No. XXXX

Page 4 of 6 ends

May 2023
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2023-24 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2023-24 4.44
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2023-24 appropriation limit.
2023-24:

Per Capita Cost of Living Change = 4.44 percent
Population Change = -0.35 percent
Per Capita Cost of Living converted to a ratio: 4.44 + 100 = 1.0444 100
Population converted to a ratio: -0.35 + 100 = 0.9965
100
Calculation of factor for FY 2023-24: 1.0444 x 0.9965 = 1.0407 Resolution No. XXXX

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Fiscal Year 2023-24
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2022 to January 1, 2023 and Total Population, January 1, 2023 Total
County Percent Change --- Population Minus Exclusions --- Population City 2022-2023 1-1-22 1-1-23 1-1-2023
San Mateo
Atherton -0.48 6,710 6,678 6,678
Belmont -0.88 27,030 26,793 26,793
Brisbane -0.51 4,672 4,648 4,648
Burlingame 0.22 30,069 30,136 30,136
Colma -0.88 1,371 1,359 1,359
Daly City -0.56 102,040 101,471 101,471
East Palo Alto -0.66 28,776 28,586 28,586
Foster City -0.45 32,852 32,703 32,703
Half Moon Bay -0.77 11,313 11,226 11,226
Hillsborough -0.20 10,984 10,962 10,962
Menlo Park -0.91 32,645 32,349 32,478
Millbrae 0.08 22,468 22,487 22,487
Pacifica -0.41 37,236 37,082 37,082
Portola Valley -0.54 4,270 4,247 4,247
Redwood City -0.32 81,753 81,495 81,495
San Bruno -0.68 42,340 42,054 42,054
San Carlos -0.89 29,762 29,496 29,496
San Mateo -0.32 103,651 103,318 103,318
South San Francisco 0.00 64,325 64,323 64,323
Woodside -0.29 5,143 5,128 5,128
Unincorporated -0.53 61,301 60,974 60,974
County Total -0.43 740,711 737,515 737,644
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

Resolution No. XXXX

Page 6 of 6 ends

RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK

AMENDING THE SALARY SCHEDULE
WHEREAS, pursuant to the Personnel System Rules, the City Manager prepared a Compensation Plan; and
WHEREAS, the salary schedule is being updated in accordance with the Memorandum of Understanding between the Menlo Park Police Officers’ Association and the City of Menlo Park, dated September 1, 2021 through August 31, 2024, which provides a three percent (3%) pay rate increase effective the beginning of the first full pay period following July 1, 2023; and WHEREAS, the salary schedule is being updated in accordance with the Memorandum of Understanding between the Menlo Park Police Sergeants’ Association and the City of Menlo Park, dated July 1, 2022 through June 30, 2025, in order to maintain the current minimum base pay differential of fifteen percent (15%) between top step Police Corporal and top step Sergeant.

NOW, THEREFORE, BE IT RESOLVED that the following compensation provisions shall be established in accordance with the City’s Personnel System Rules.

BE IT FURTHER RESOLVED that any previous enacted compensation provisions contained in Resolution No. 6754 and subsequent amendments shall be superseded by this Resolution.

BE IT FURTHER RESOLVED that the changes contained herein on Exhibit A shall be effective July 2, 2023.

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of June, 2023.

Judi A. Herren, City Clerk
Exhibits:

A. Salary schedule effective July 2, 2023
B. Red-lined version of existing salary schedule
ATTACHMENT J Page H-1.29
City of Menlo Park
PROPOSED Salary Schedule - Effective 07/02/2023

Page 1 of 3 ends

Annual Salaries based on 2080 hours per year except
where set by contract or noted Resolution No.XXXX
Classification Title Minimum
(Step A) Step B Step C Step D Maximum (Step E)
Accountant I $ 87,734 $ 92,122 $ 96,728 $ 101,565 $ 106,643 Accountant II $ 96,095 $ 100,637 $ 105,385 $ 110,453 $ 115,717 Accounting Assistant I $ 62,216 $ 65,165 $ 68,174 $ 71,359 $ 74,661 Accounting Assistant II $ 68,174 $ 71,359 $ 74,661 $ 78,150 $ 81,818 Administrative Assistant $ 68,379 $ 71,573 $ 74,885 $ 78,385 $ 82,063 Administrative Services Director $ 165,347 Open Range $ 234,259 Assistant Administrative Services Director $ 130,376 Open Range $ 187,407 Assistant City Manager $ 174,616 Open Range $ 257,685
Assistant Community Development Director $ 130,376 Open Range $ 187,407 Assistant Engineer $ 105,817 $ 110,859 $ 116,160 $ 121,705 $ 127,503 Assistant Library and Community Services Director $ 133,380 Open Range $ 187,407 Assistant Planner $ 95,875 $ 100,383 $ 105,195 $ 110,208 $ 115,473 Assistant Public Works Director $ 144,870 Open Range $ 187,407 Assistant to the City Manager $ 125,490 Open Range $ 163,981 Assistant to the City Manager / City Clerk $ 125,490 Open Range $ 163,981 Assistant Transportation Planner $ 95,875 $ 100,383 $ 105,195 $ 110,208 $ 115,473 Associate Civil Engineer $ 118,735 $ 124,419 $ 130,350 $ 136,648 $ 143,267 Associate Engineer $ 112,205 $ 117,576 $ 123,182 $ 129,133 $ 135,388 Associate Planner $ 105,195 $ 110,208 $ 115,473 $ 120,998 $ 126,789 Associate Transportation Engineer $ 124,419 $ 130,350 $ 136,648 $ 143,267 $ 150,209 Associate Transportation Planner $ 105,195 $ 110,208 $ 115,473 $ 120,998 $ 126,789 Asst. Public Works Director - Engineering $ 144,870 Open Range $ 187,407 Asst. Public Works Director - Maintenance $ 144,870 Open Range $ 187,407 Asst. Public Works Director - Transportation $ 144,870 Open Range $ 187,407 Building Custodian $ 62,154 $ 65,100 $ 68,106 $ 71,288 $ 74,587 Building Inspector I $ 92,657 $ 97,113 $ 101,742 $ 106,606 $ 111,696 Building Inspector II $ 101,923 $ 106,824 $ 111,916 $ 117,266 $ 122,866 Business Manager $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Chief Water Operator $ 101,983 $ 106,843 $ 111,948 $ 117,304 $ 122,918 Child Care Teacher I $ 55,614 $ 58,136 $ 60,769 $ 63,538 $ 66,544 Child Care Teacher II $ 62,154 $ 65,100 $ 68,106 $ 71,288 $ 74,587 Child Care Teacher's Aide $ 41,726 $ 43,614 $ 45,587 $ 47,629 $ 49,732 City Arborist $ 105,789 $ 110,860 $ 116,143 $ 121,691 $ 127,514 City Clerk $ 125,490 Open Range $ 163,981
City Councilmember n/a Annual Rate $ 7,680
City Manager $ 203,533 Open Range $ 281,111
Code Enforcement Officer $ 87,678 $ 91,822 $ 96,153 $ 100,778 $ 105,581 Communications and Records Manager $ 121,823 $ 127,735 $ 133,870 $ 140,325 $ 147,074 Communications Dispatcher $ 88,905 $ 93,108 $ 97,500 $ 102,189 $ 107,059 Communications Training Dispatcher $ 93,108 $ 97,500 $ 102,189 $ 107,059 $ 112,178 Community Development Director $ 165,126 Open Range $ 234,259 Community Development Technician $ 74,567 $ 78,019 $ 81,665 $ 85,496 $ 89,514 Community Service Officer $ 72,907 $ 76,336 $ 79,871 $ 83,662 $ 87,678 Construction Inspector I $ 87,412 $ 91,617 $ 95,983 $ 100,572 $ 105,374 Construction Inspector II $ 96,153 $ 100,778 $ 105,581 $ 110,629 $ 115,911 Contracts Specialist $ 76,990 $ 80,610 $ 84,343 $ 88,347 $ 92,587 Custodial Services Supervisor $ 71,518 $ 74,828 $ 78,324 $ 82,000 $ 85,853 Deputy City Clerk $ 79,862 $ 83,662 $ 87,678 $ 91,822 $ 96,153 Deputy City Manager $ 169,611 Open Range $ 234,259
Deputy Comm. Dev. Director - Housing $ 130,350 Open Range $ 175,695 Economic Development Manager $ 125,490 Open Range $ 163,981 Engineering Services Manager $ 130,350 Open Range $ 175,695 Engineering Technician I $ 80,152 $ 83,864 $ 87,845 $ 92,061 $ 96,413 Engineering Technician II $ 89,855 $ 94,082 $ 98,506 $ 103,229 $ 108,148 Enterprise Applications Administrator $ 118,341 $ 123,962 $ 129,850 $ 136,083 $ 142,657 Enterprise Applications Support Specialist I $ 94,840 $ 99,582 $ 104,561 $ 109,789 $ 115,279 Enterprise Applications Support Specialist II $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Equipment Mechanic $ 79,862 $ 83,662 $ 87,678 $ 91,822 $ 96,153 Executive Assistant $ 78,073 $ 81,736 $ 85,576 $ 89,602 $ 93,816 Executive Assistant to the City Mgr $ 83,173 $ 87,331 $ 91,698 $ 96,283 $ 101,096 Extra Help Retired Annuitant $ 31,200 Open Range $ 249,600 Facilities Maintenance Technician I $ 66,544 $ 69,608 $ 72,907 $ 76,336 $ 79,871 Facilities Maintenance Technician II $ 72,907 $ 76,336 $ 79,871 $ 83,662 $ 87,678 Finance and Budget Manager $ 130,350 Open Range $ 175,695 Finance Director $ 165,125 Open Range $ 234,259
GIS Analyst I $ 92,043 $ 96,646 $ 101,479 $ 106,553 $ 111,881 GIS Analyst II $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Gymnastics Instructor $ 44,525 $ 46,539 $ 48,641 $ 50,812 $ 53,148 Housing & Economic Development Manager $ 125,490 Open Range $ 163,981 EXHIBIT A Resolution No. XXXX

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City of Menlo Park
PROPOSED Salary Schedule - Effective 07/02/2023

Page 2 of 3 ends

Annual Salaries based on 2080 hours per year except
where set by contract or noted Resolution No.XXXX
Classification Title Minimum
(Step A) Step B Step C Step D Maximum (Step E)
Housing Manager $ 125,490 Open Range $ 163,981
Human Resources Director $ 165,347 Open Range $ 234,259 Human Resources Manager $ 130,350 Open Range $ 175,695
Human Resources Technician I $ 72,243 $ 75,661 $ 79,039 $ 82,895 $ 86,794 Human Resources Technician II $ 79,467 $ 83,227 $ 86,943 $ 91,185 $ 95,473 Information Technology Manager $ 130,350 Open Range $ 175,695 Information Technology Specialist I $ 77,815 $ 81,707 $ 85,792 $ 90,083 $ 94,588 Information Technology Specialist II $ 86,460 $ 90,523 $ 94,781 $ 99,238 $ 103,997 Internal Services Manager $ 130,350 Open Range $ 175,695 Junior Engineer $ 85,362 $ 89,630 $ 94,112 $ 98,818 $ 103,759 Librarian I $ 74,587 $ 78,073 $ 81,736 $ 85,576 $ 89,602 Librarian II $ 83,662 $ 87,678 $ 91,822 $ 96,153 $ 100,778 Library and Community Services Director $ 161,038 Open Range $ 234,259 Library and Community Services Manager $ 130,350 Open Range $ 175,695 Library and Community Services Supervisor $ 96,464 $ 101,103 $ 105,920 $ 110,985 $ 116,285 Library Assistant I $ 58,136 $ 60,769 $ 63,538 $ 66,544 $ 69,608 Library Assistant II $ 63,538 $ 66,544 $ 69,515 $ 72,907 $ 76,336 Library Assistant III $ 69,515 $ 72,907 $ 76,336 $ 79,871 $ 83,577 Literacy Program Manager $ 85,853 $ 89,891 $ 94,118 $ 98,630 $ 103,330 Maintenance Worker I $ 63,538 $ 66,544 $ 69,515 $ 72,907 $ 76,336 Maintenance Worker II $ 69,515 $ 72,907 $ 76,336 $ 79,871 $ 83,662 Management Analyst I $ 92,043 $ 96,646 $ 101,479 $ 106,553 $ 111,881 Management Analyst II $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Network Administrator $ 123,426 $ 129,334 $ 135,500 $ 142,046 $ 148,927 Office Assistant $ 57,097 $ 59,701 $ 62,403 $ 65,360 $ 68,379 Parking Enforcement Officer $ 63,538 $ 66,544 $ 69,515 $ 72,907 $ 76,336 Permit Manager $ 119,656 $ 125,381 $ 131,382 $ 137,644 $ 144,295 Permit Technician $ 74,567 $ 78,018 $ 81,665 $ 85,496 $ 89,513 Plan Check Engineer $ 119,866 $ 125,604 $ 131,591 $ 137,949 $ 144,631 Planning Manager $ 130,350 Open Range $ 175,695
Planning Technician $ 85,496 $ 89,513 $ 93,724 $ 98,131 $ 102,836 Police Chief $ 178,414 Open Range $ 257,685
Police Commander $ 160,572 Open Range $ 234,259
Police Corporal (2080 hours) $ 119,178 $ 125,138 $ 131,394 $ 137,964 $ 144,862 Police Corporal (2184 hours) $ 125,137 $ 131,394 $ 137,964 $ 144,862 $ 152,105 Police Officer (2080 hours) $ 110,735 $ 116,271 $ 122,084 $ 128,189 $ 134,599 Police Officer (2184 hours) $ 116,272 $ 122,085 $ 128,188 $ 134,598 $ 141,329 Police Records Specialist $ 69,515 $ 72,907 $ 76,336 $ 79,871 $ 83,662 Police Recruit n/a Hourly Rate $ 89,695
Police Sergeant (2080 hours) $ 137,060 $ 143,913 $ 151,108 $ 158,664 $ 166,597 Police Sergeant (2184 hours) $ 143,912 $ 151,108 $ 158,664 $ 166,597 $ 174,927 Principal Planner $ 127,020 $ 134,973 $ 141,433 $ 148,174 $ 153,174 Program Aide/Driver $ 39,920 $ 41,726 $ 43,614 $ 45,587 $ 47,629 Program Assistant $ 56,871 $ 59,463 $ 62,154 $ 65,100 $ 68,106 Project Manager $ 112,205 $ 117,576 $ 123,182 $ 129,133 $ 135,388 Property and Court Specialist $ 72,907 $ 76,336 $ 79,871 $ 83,662 $ 87,678 Public Engagement Manager $ 130,350 Open Range $ 175,695 Public Works Director $ 169,611 Open Range $ 234,259
Public Works Superintendent $ 128,081 Open Range $ 175,695 Public Works Supervisor - Facilities $ 106,541 $ 111,649 $ 116,969 $ 122,558 $ 128,421 Public Works Supervisor - Fleet $ 108,236 $ 113,425 $ 118,829 $ 124,506 $ 130,463 Public Works Supervisor - Park $ 100,707 $ 105,534 $ 110,563 $ 115,845 $ 121,388 Public Works Supervisor - Streets $ 100,707 $ 105,534 $ 110,563 $ 115,845 $ 121,388 Public Works Supervisor - Trees $ 100,707 $ 105,534 $ 110,563 $ 115,845 $ 121,388 Recreation Coordinator $ 74,828 $ 78,324 $ 82,000 $ 85,853 $ 89,891 Revenue and Claims Manager $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Senior Accountant $ 110,509 $ 115,734 $ 121,193 $ 127,022 $ 133,075 Senior Accounting Assistant $ 74,991 $ 78,495 $ 82,127 $ 85,965 $ 89,999 Senior Building Inspector $ 114,394 $ 119,866 $ 125,604 $ 131,591 $ 137,949 Senior Civil Engineer $ 130,770 $ 137,087 $ 143,729 $ 150,693 $ 158,036 Senior Communications Dispatcher $ 97,500 $ 102,189 $ 107,059 $ 112,178 $ 117,533 Senior Construction Inspector $ 105,769 $ 110,856 $ 116,139 $ 121,707 $ 127,793 Senior Engineering Technician $ 96,413 $ 100,962 $ 105,817 $ 110,859 $ 116,160 Senior Equipment Mechanic $ 87,868 $ 92,155 $ 96,489 $ 100,958 $ 105,749 Senior Facilities Maintenance Technician $ 79,862 $ 83,662 $ 87,678 $ 91,822 $ 96,153 Senior GIS Analyst $ 118,340 $ 123,962 $ 129,850 $ 136,083 $ 142,657 Senior Human Resources Technician $ 87,414 $ 91,550 $ 95,637 $ 100,303 $ 105,021 Senior Library Assistant $ 76,467 $ 80,198 $ 83,969 $ 87,858 $ 91,935 Resolution No. XXXX

Page 3 of 7 ends

City of Menlo Park
PROPOSED Salary Schedule - Effective 07/02/2023

Page 3 of 3 ends

Annual Salaries based on 2080 hours per year except
where set by contract or noted Resolution No.XXXX
Classification Title Minimum
(Step A) Step B Step C Step D Maximum (Step E)
Senior Maintenance Worker $ 79,862 $ 83,662 $ 87,678 $ 91,822 $ 96,153 Senior Management Analyst $ 118,340 $ 123,962 $ 129,850 $ 136,083 $ 142,657 Senior Office Assistant $ 62,403 $ 65,360 $ 68,379 $ 71,573 $ 74,885 Senior Planner $ 115,473 $ 120,998 $ 126,789 $ 132,833 $ 139,250 Senior Police Records Specialist $ 72,907 $ 76,336 $ 79,871 $ 83,662 $ 87,678 Senior Program Assistant $ 69,066 $ 72,294 $ 75,687 $ 79,242 $ 82,971 Senior Project Manager $ 123,426 $ 129,334 $ 135,500 $ 142,046 $ 148,927 Senior Sustainability Specialist $ 86,614 $ 90,757 $ 95,101 $ 99,635 $ 104,448 Senior Transportation Engineer $ 130,770 $ 137,087 $ 143,729 $ 150,693 $ 158,036 Senior Transportation Planner $ 115,473 $ 120,998 $ 126,789 $ 132,833 $ 139,250 Senior Water System Operator $ 81,945 $ 85,738 $ 89,745 $ 93,956 $ 98,369 Sustainability Manager $ 125,490 Open Range $ 163,981
Sustainability Specialist $ 74,587 $ 78,073 $ 81,736 $ 85,576 $ 89,602 Systems Administrator $ 118,340 $ 123,962 $ 129,850 $ 136,083 $ 142,657 Transportation Demand Management Coord. $ 98,314 $ 102,997 $ 107,919 $ 113,082 $ 118,494 Transportation Director $ 169,611 Open Range $ 234,259
Transportation Manager $ 130,350 Open Range $ 175,695
Water Quality Specialist $ 85,576 $ 89,602 $ 93,816 $ 98,314 $ 102,997 Water System Operator I $ 68,090 $ 71,141 $ 74,296 $ 77,967 $ 81,596 Water System Operator II $ 74,495 $ 77,944 $ 81,586 $ 85,414 $ 89,427 Resolution No. XXXX

Page 4 of 7 ends

City of Menlo Park
RED-LINED Salary Schedule - Effective 07/02/2023

Page 1 of 3 ends

Annual Salaries based on 2080 hours per year except
where set by contract or noted Resolution No.XXXX
Classification Title Minimum (Step A) Step B Step C Step D Maximum (Step E) Accountant I $ 87,734 $ 92,122 $ 96,728 $ 101,565 $ 106,643 Accountant II $ 96,095 $ 100,637 $ 105,385 $ 110,453 $ 115,717 Accounting Assistant I $ 62,216 $ 65,165 $ 68,174 $ 71,359 $ 74,661 Accounting Assistant II $ 68,174 $ 71,359 $ 74,661 $ 78,150 $ 81,818 Administrative Assistant $ 68,379 $ 71,573 $ 74,885 $ 78,385 $ 82,063 Administrative Services Director $ 165,347 Open Range $ 234,259 Assistant Administrative Services Director $ 130,376 Open Range $ 187,407 Assistant City Manager $ 174,616 Open Range $ 257,685
Assistant Community Development Director $ 130,376 Open Range $ 187,407 Assistant Engineer $ 105,817 $ 110,859 $ 116,160 $ 121,705 $ 127,503 Assistant Library and Community Services Director $ 133,380 Open Range $ 187,407 Assistant Planner $ 95,875 $ 100,383 $ 105,195 $ 110,208 $ 115,473 Assistant Public Works Director $ 144,870 Open Range $ 187,407 Assistant to the City Manager $ 125,490 Open Range $ 163,981 Assistant to the City Manager / City Clerk $ 125,490 Open Range $ 163,981 Assistant Transportation Planner $ 95,875 $ 100,383 $ 105,195 $ 110,208 $ 115,473 Associate Civil Engineer $ 118,735 $ 124,419 $ 130,350 $ 136,648 $ 143,267 Associate Engineer $ 112,205 $ 117,576 $ 123,182 $ 129,133 $ 135,388 Associate Planner $ 105,195 $ 110,208 $ 115,473 $ 120,998 $ 126,789 Associate Transportation Engineer $ 124,419 $ 130,350 $ 136,648 $ 143,267 $ 150,209 Associate Transportation Planner $ 105,195 $ 110,208 $ 115,473 $ 120,998 $ 126,789 Asst. Public Works Director - Engineering $ 144,870 Open Range $ 187,407 Asst. Public Works Director - Maintenance $ 144,870 Open Range $ 187,407 Asst. Public Works Director - Transportation $ 144,870 Open Range $ 187,407 Building Custodian $ 62,154 $ 65,100 $ 68,106 $ 71,288 $ 74,587 Building Inspector I $ 92,657 $ 97,113 $ 101,742 $ 106,606 $ 111,696 Building Inspector II $ 101,923 $ 106,824 $ 111,916 $ 117,266 $ 122,866 Business Manager $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Chief Water Operator $ 101,983 $ 106,843 $ 111,948 $ 117,304 $ 122,918 Child Care Teacher I $ 55,614 $ 58,136 $ 60,769 $ 63,538 $ 66,544 Child Care Teacher II $ 62,154 $ 65,100 $ 68,106 $ 71,288 $ 74,587 Child Care Teacher's Aide $ 41,726 $ 43,614 $ 45,587 $ 47,629 $ 49,732 City Arborist $ 105,789 $ 110,860 $ 116,143 $ 121,691 $ 127,514 City Clerk $ 125,490 Open Range $ 163,981
City Councilmember n/a Annual Rate $ 7,680
City Manager $ 203,533 Open Range $ 281,111
Code Enforcement Officer $ 87,678 $ 91,822 $ 96,153 $ 100,778 $ 105,581 Communications and Records Manager $ 121,823 $ 127,735 $ 133,870 $ 140,325 $ 147,074 Communications Dispatcher $ 88,905 $ 93,108 $ 97,500 $ 102,189 $ 107,059 Communications Training Dispatcher $ 93,108 $ 97,500 $ 102,189 $ 107,059 $ 112,178 Community Development Director $ 165,126 Open Range $ 234,259 Community Development Technician $ 74,567 $ 78,019 $ 81,665 $ 85,496 $ 89,514 Community Service Officer $ 72,907 $ 76,336 $ 79,871 $ 83,662 $ 87,678 Construction Inspector I $ 87,412 $ 91,617 $ 95,983 $ 100,572 $ 105,374 Construction Inspector II $ 96,153 $ 100,778 $ 105,581 $ 110,629 $ 115,911 Contracts Specialist $ 76,990 $ 80,610 $ 84,343 $ 88,347 $ 92,587 Custodial Services Supervisor $ 71,518 $ 74,828 $ 78,324 $ 82,000 $ 85,853 Deputy City Clerk $ 79,862 $ 83,662 $ 87,678 $ 91,822 $ 96,153 Deputy City Manager $ 169,611 Open Range $ 234,259
Deputy Comm. Dev. Director - Housing $ 130,350 Open Range $ 175,695 Economic Development Manager $ 125,490 Open Range $ 163,981 Engineering Services Manager $ 130,350 Open Range $ 175,695 Engineering Technician I $ 80,152 $ 83,864 $ 87,845 $ 92,061 $ 96,413 Engineering Technician II $ 89,855 $ 94,082 $ 98,506 $ 103,229 $ 108,148 Enterprise Applications Administrator $ 118,341 $ 123,962 $ 129,850 $ 136,083 $ 142,657 Enterprise Applications Support Specialist I $ 94,840 $ 99,582 $ 104,561 $ 109,789 $ 115,279 Enterprise Applications Support Specialist II $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Equipment Mechanic $ 79,862 $ 83,662 $ 87,678 $ 91,822 $ 96,153 Executive Assistant $ 78,073 $ 81,736 $ 85,576 $ 89,602 $ 93,816 Executive Assistant to the City Mgr $ 83,173 $ 87,331 $ 91,698 $ 96,283 $ 101,096 Extra Help Retired Annuitant $ 31,200 Open Range $ 249,600 Facilities Maintenance Technician I $ 66,544 $ 69,608 $ 72,907 $ 76,336 $ 79,871 Facilities Maintenance Technician II $ 72,907 $ 76,336 $ 79,871 $ 83,662 $ 87,678 Finance and Budget Manager $ 130,350 Open Range $ 175,695 Finance Director $ 165,125 Open Range $ 234,259
GIS Analyst I $ 92,043 $ 96,646 $ 101,479 $ 106,553 $ 111,881 GIS Analyst II $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Gymnastics Instructor $ 44,525 $ 46,539 $ 48,641 $ 50,812 $ 53,148 Housing & Economic Development Manager $ 125,490 Open Range $ 163,981 Housing Manager $ 125,490 Open Range $ 163,981
Human Resources Director $ 165,347 Open Range $ 234,259 Human Resources Manager $ 130,350 Open Range $ 175,695
Human Resources Technician I $ 72,243 $ 75,661 $ 79,039 $ 82,895 $ 86,794 Human Resources Technician II $ 79,467 $ 83,227 $ 86,943 $ 91,185 $ 95,473 Information Technology Manager $ 130,350 Open Range $ 175,695 Information Technology Specialist I $ 77,815 $ 81,707 $ 85,792 $ 90,083 $ 94,588 Information Technology Specialist II $ 86,460 $ 90,523 $ 94,781 $ 99,238 $ 103,997 Internal Services Manager $ 130,350 Open Range $ 175,695 Junior Engineer $ 85,362 $ 89,630 $ 94,112 $ 98,818 $ 103,759 Librarian I $ 74,587 $ 78,073 $ 81,736 $ 85,576 $ 89,602 Librarian II $ 83,662 $ 87,678 $ 91,822 $ 96,153 $ 100,778 EXHIBIT B Resolution No. XXXX

Page 5 of 7 ends

City of Menlo Park
RED-LINED Salary Schedule - Effective 07/02/2023

Page 2 of 3 ends

Annual Salaries based on 2080 hours per year except
where set by contract or noted Resolution No.XXXX
Classification Title Minimum (Step A) Step B Step C Step D Maximum (Step E) Library and Community Services Director $ 161,038 Open Range $ 234,259 Library and Community Services Manager $ 130,350 Open Range $ 175,695 Library and Community Services Supervisor $ 96,464 $ 101,103 $ 105,920 $ 110,985 $ 116,285 Library Assistant I $ 58,136 $ 60,769 $ 63,538 $ 66,544 $ 69,608 Library Assistant II $ 63,538 $ 66,544 $ 69,515 $ 72,907 $ 76,336 Library Assistant III $ 69,515 $ 72,907 $ 76,336 $ 79,871 $ 83,577 Literacy Program Manager $ 85,853 $ 89,891 $ 94,118 $ 98,630 $ 103,330 Maintenance Worker I $ 63,538 $ 66,544 $ 69,515 $ 72,907 $ 76,336 Maintenance Worker II $ 69,515 $ 72,907 $ 76,336 $ 79,871 $ 83,662 Management Analyst I $ 92,043 $ 96,646 $ 101,479 $ 106,553 $ 111,881 Management Analyst II $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Network Administrator $ 123,426 $ 129,334 $ 135,500 $ 142,046 $ 148,927 Office Assistant $ 57,097 $ 59,701 $ 62,403 $ 65,360 $ 68,379 Parking Enforcement Officer $ 63,538 $ 66,544 $ 69,515 $ 72,907 $ 76,336 Permit Manager $ 119,656 $ 125,381 $ 131,382 $ 137,644 $ 144,295 Permit Technician $ 74,567 $ 78,018 $ 81,665 $ 85,496 $ 89,513 Plan Check Engineer $ 119,866 $ 125,604 $ 131,591 $ 137,949 $ 144,631 Planning Manager $ 130,350 Open Range $ 175,695
Planning Technician $ 85,496 $ 89,513 $ 93,724 $ 98,131 $ 102,836 Police Chief $ 178,414 Open Range $ 257,685
Police Commander $ 160,572 Open Range $ 234,259
Police Corporal (2080 hours) $ 115,707 $ 121,493 $ 127,567 $ 133,945 $ 140,643 Police Corporal (2080 hours) $ 119,178 $ 125,138 $ 131,394 $ 137,964 $ 144,862 Police Corporal (2184 hours) $ 121,492 $ 127,567 $ 133,946 $ 140,643 $ 147,675 Police Corporal (2184 hours) $ 125,137 $ 131,394 $ 137,964 $ 144,862 $ 152,105 Police Officer (2080 hours) $ 107,510 $ 112,884 $ 118,528 $ 124,455 $ 130,678 Police Officer (2080 hours) $ 110,735 $ 116,271 $ 122,084 $ 128,189 $ 134,599 Police Officer (2184 hours) $ 112,885 $ 118,529 $ 124,455 $ 130,678 $ 137,212 Police Officer (2184 hours) $ 116,272 $ 122,085 $ 128,188 $ 134,598 $ 141,329 Police Records Specialist $ 69,515 $ 72,907 $ 76,336 $ 79,871 $ 83,662 Police Recruit n/a Hourly Rate $ 87,083
Police Recruit n/a Hourly Rate $ 89,695
Police Sergeant (2080 hours) $ 133,068 $ 139,721 $ 146,707 $ 154,042 $ 161,744 Police Sergeant (2080 hours) $ 137,060 $ 143,913 $ 151,108 $ 158,664 $ 166,597 Police Sergeant (2184 hours) $ 139,721 $ 146,707 $ 154,042 $ 161,744 $ 169,832 Police Sergeant (2184 hours) $ 143,912 $ 151,108 $ 158,664 $ 166,597 $ 174,927 Principal Planner $ 127,020 $ 134,973 $ 141,433 $ 148,174 $ 153,174 Program Aide/Driver $ 39,920 $ 41,726 $ 43,614 $ 45,587 $ 47,629 Program Assistant $ 56,871 $ 59,463 $ 62,154 $ 65,100 $ 68,106 Project Manager $ 112,205 $ 117,576 $ 123,182 $ 129,133 $ 135,388 Property and Court Specialist $ 72,907 $ 76,336 $ 79,871 $ 83,662 $ 87,678 Public Engagement Manager $ 130,350 Open Range $ 175,695 Public Works Director $ 169,611 Open Range $ 234,259
Public Works Superintendent $ 128,081 Open Range $ 175,695 Public Works Supervisor - Facilities $ 106,541 $ 111,649 $ 116,969 $ 122,558 $ 128,421 Public Works Supervisor - Fleet $ 108,236 $ 113,425 $ 118,829 $ 124,506 $ 130,463 Public Works Supervisor - Park $ 100,707 $ 105,534 $ 110,563 $ 115,845 $ 121,388 Public Works Supervisor - Streets $ 100,707 $ 105,534 $ 110,563 $ 115,845 $ 121,388 Public Works Supervisor - Trees $ 100,707 $ 105,534 $ 110,563 $ 115,845 $ 121,388 Recreation Coordinator $ 74,828 $ 78,324 $ 82,000 $ 85,853 $ 89,891 Revenue and Claims Manager $ 105,192 $ 110,250 $ 115,505 $ 121,028 $ 126,807 Senior Accountant $ 110,509 $ 115,734 $ 121,193 $ 127,022 $ 133,075 Senior Accounting Assistant $ 74,991 $ 78,495 $ 82,127 $ 85,965 $ 89,999 Senior Building Inspector $ 114,394 $ 119,866 $ 125,604 $ 131,591 $ 137,949 Senior Civil Engineer $ 130,770 $ 137,087 $ 143,729 $ 150,693 $ 158,036 Senior Communications Dispatcher $ 97,500 $ 102,189 $ 107,059 $ 112,178 $ 117,533 Senior Construction Inspector $ 105,769 $ 110,856 $ 116,139 $ 121,707 $ 127,793 Senior Engineering Technician $ 96,413 $ 100,962 $ 105,817 $ 110,859 $ 116,160 Senior Equipment Mechanic $ 87,868 $ 92,155 $ 96,489 $ 100,958 $ 105,749 Senior Facilities Maintenance Technician $ 79,862 $ 83,662 $ 87,678 $ 91,822 $ 96,153 Senior GIS Analyst $ 118,340 $ 123,962 $ 129,850 $ 136,083 $ 142,657 Senior Human Resources Technician $ 87,414 $ 91,550 $ 95,637 $ 100,303 $ 105,021 Senior Library Assistant $ 76,467 $ 80,198 $ 83,969 $ 87,858 $ 91,935 Senior Maintenance Worker $ 79,862 $ 83,662 $ 87,678 $ 91,822 $ 96,153 Senior Management Analyst $ 118,340 $ 123,962 $ 129,850 $ 136,083 $ 142,657 Senior Office Assistant $ 62,403 $ 65,360 $ 68,379 $ 71,573 $ 74,885 Senior Planner $ 115,473 $ 120,998 $ 126,789 $ 132,833 $ 139,250 Senior Police Records Specialist $ 72,907 $ 76,336 $ 79,871 $ 83,662 $ 87,678 Senior Program Assistant $ 69,066 $ 72,294 $ 75,687 $ 79,242 $ 82,971 Senior Project Manager $ 123,426 $ 129,334 $ 135,500 $ 142,046 $ 148,927 Senior Sustainability Specialist $ 86,614 $ 90,757 $ 95,101 $ 99,635 $ 104,448 Senior Transportation Engineer $ 130,770 $ 137,087 $ 143,729 $ 150,693 $ 158,036 Senior Transportation Planner $ 115,473 $ 120,998 $ 126,789 $ 132,833 $ 139,250 Senior Water System Operator $ 81,945 $ 85,738 $ 89,745 $ 93,956 $ 98,369 Sustainability Manager $ 125,490 Open Range $ 163,981
Sustainability Specialist $ 74,587 $ 78,073 $ 81,736 $ 85,576 $ 89,602 Systems Administrator $ 118,340 $ 123,962 $ 129,850 $ 136,083 $ 142,657 Transportation Demand Management Coord. $ 98,314 $ 102,997 $ 107,919 $ 113,082 $ 118,494 Transportation Director $ 169,611 Open Range $ 234,259
Transportation Manager $ 130,350 Open Range $ 175,695
Resolution No. XXXX

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City of Menlo Park
RED-LINED Salary Schedule - Effective 07/02/2023

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Annual Salaries based on 2080 hours per year except
where set by contract or noted Resolution No.XXXX
Classification Title Minimum (Step A) Step B Step C Step D Maximum (Step E) Water Quality Specialist $ 85,576 $ 89,602 $ 93,816 $ 98,314 $ 102,997 Water System Operator I $ 68,090 $ 71,141 $ 74,296 $ 77,967 $ 81,596 Water System Operator II $ 74,495 $ 77,944 $ 81,586 $ 85,414 $ 89,427 Resolution No. XXXX

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RESOLUTION NO. XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENLO PARK TO

EXTEND THE SOLID WASTE AND WATER RATE ASSISTANCE PROGRAM WHEREAS, as of June 16, 2020, the City Council adopted Resolution No. 6563 to support the black lives matter movement, which emphasizes inclusion and equity within the community through City policies and services; and
WHEREAS, to promote equity and support Menlo Park’s diverse community, establishing a rate assistance program helps low-income households to cover basic living expenses; and WHEREAS, some rate assistance programs, such as Pacific Gas & Electricity (PG&E) California Alternative Rate Energy (CARE) program, offer a monthly minimum discount of 20 percent on gas and electricity; and
WHEREAS, due to the COVID-19 pandemic and solid waste and water rate increases, some residential customers may be financially impacted; and
WHEREAS, on August 25, 2020, during a study session, the City Council supported establishment of a rate assistance program for solid waste rates at a 20 percent discount; and WHEREAS, on September 8, 2020, during a study session, the City Council supported establishment of a rate assistance program for Menlo Park Municipal Water customers; and WHEREAS, on December 8, 2020, the City Council adopted Resolution No. 6605, which established the rate assistance program, appropriated $164,000 from the general fund, and provided a timeframe for the program of January 1, 2021, through June 30, 2021, and WHEREAS, on January 1, 2021, Recology’s new solid waste rates went into effect; and WHEREAS, on April 27, 2021, the City Council received an update about extending the pilot program for fiscal year 2021-22; and
WHEREAS, on May 11, 2021, the City Council adopted Resolution No. 6625, which approved Menlo Park Municipal Water rate increases for the next five years between July 1, 2021, and June 30, 2026; and
WHEREAS, on June 22, 2021, the City Council adopted Resolution No. 6638, which extended the solid waste and water rate assistance program to June 30, 2022; and WHEREAS, on July 1, 2021, new Menlo Park Municipal Water rates went into effect; and WHEREAS, on January 1, 2022, Recology’s new solid waste rates went into effect; and WHEREAS, on June 28, 2022, the City Council adopted Resolution No. 6755, which extended the solid waste and water rate assistance program to June 30, 2023; and WHEREAS, on July 1, 2022, new Menlo Park Municipal Water rates went into effect; and WHEREAS, on January 1, 2023, Recology’s new solid waste rates went into effect; and ATTACHMENT K Page H-1.36
WHEREAS, on July 1, 2023, new Menlo Park Municipal Water rates are scheduled to be in effect; and
NOW, THEREFORE BE IT RESOLVED, the program shall be comprised of the following timeframe, discount, and qualifications unless modified by the City Council by resolution:

1. Timeframe: Continue on July 1, 2023 and end on June 30, 2024;

2. Discount: Monthly 20 percent discount for solid waste rates and a monthly fixed discount equal to 50 percent of the 5/8-inch meter service charge for water rates; and

3. Qualifications: Households must meet the following criteria to receive the discount:
 Must be enrolled in PG&E CARE program;
 Submit most recent PG&E bill to verify CARE enrollment. Address on PG&E bill must be the same as the address on solid waste and water bills, but names may be different;  Submit most recent Recology and Menlo Park Municipal Water bills to receive applicable discounts; and
 Re-certify eligibility according to the PG&E CARE program enrollment expiration date. Recertification will vary, depending on when the household applies to CARE.

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this __ day of June, 2023.

Judi A. Herren, City Clerk
Resolution No. XXXX

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Menlo Park City CouncilJune 13, 2023

Menlo Park City Council
June 13, 2023