CITY OF PACIFICA
CITY COUNCIL AGENDA
Council Chambers
2212 Beach Blvd
Pacifica, CA 94044
Mayor Sue Beckmeyer
Mayor pro Tem Christine Boles
Councilmember Mary Bier
Councilmember Mayra Espinosa
Councilmember Greg Wright
City Council Regular Meeting 1 April 28, 2025
April 28, 2025 (MONDAY)
www.cityofpacifica.org
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BEFORE THE MEETING: Written public comments may be submitted in advance by 12:00 p.m. on the meeting date by email to: [email protected]. Written public comments submitted by email should adhere to the following:
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Written public comments received by 12:00 p.m. on the meeting date will be provided in their entirety to the City Council and posted to the City’s website prior to the meeting but will not be read verbally at the meeting.
AT THE MEETING: Materials in writing provided at the meeting should provide seven (7) copies to provide for each Councilmember, City Clerk and City staff.
City Council Regular Meeting 2 April 28, 2025
7:00 PM OPEN SESSION
Call to Order
Roll Call
Reading of Land Acknowledgment
The City of Pacifica acknowledges that we occupy the unceded ancestral homeland of the Ramaytush Ohlone peoples, who are the original inhabitants of the San Francisco Peninsula. We honor the Ramaytush Ohlone peoples for their enduring commitment to Mother Earth. As the Indigenous protectors of this land and in accordance with their traditions, the Ramaytush Ohlone have never ceded, lost, nor forgotten their responsibilities as the caretakers of this place, as well as for all peoples who reside in their traditional territory. We affirm their sovereign rights as First Peoples and wish to pay our respects to the ancestors, elders, and relatives of the Ramaytush Ohlone peoples.
Salute to the Flag led by Councilmember Espinosa
SPECIAL PRESENTATIONS
A. Proclamation: Sergeant Duane Wachtelborn
B. Proclamation: Small Business Month - May 2025 / Small Business Week May 4 - 10, 2025 C. Proclamation: Wildfire Preparedness Month - May 2025 D. Proclamation: Mental Health Month - May 2025
CONSENT CALENDAR
Persons wishing to address the Council on any Consent Calendar item may do so at this time. Each speaker will be allotted three minutes. Those wishing to address the Council on any item listed on the agenda should submit a speaker card to the City Clerk.
Public meetings are a limited public forum, meaning that there are rules for commenting at these meetings. Comments on consent agenda items must relate to that specific item.
If comments do not relate to a specific agenda item, then City will provide you with an initial warning to stay on topic. If the warning is not followed, the Mayor will direct the City Clerk to cut off the microphone.
Items on the consent calendar will be adopted by one motion unless a Councilmember requests, before the vote on the motion, to have an item discussed. Time limit on comments is three minutes or less.
1. Approval of Minutes
PROPOSED ACTION: Move to approve the minutes for the March 24, 2025 City Council Special and Regular Meeting.
2. Quarterly Financial Reports for the quarter ending March 31, 2025 PROPOSED ACTION: Review and accept the Quarterly Financial Report for the quarter ending March 31, 2025.
City Council Regular Meeting 3 April 28, 2025
3. Quarterly Treasurer’s Reports for the quarter ending March 31, 2025 PROPOSED ACTION: Review and accept the Quarterly Treasurer’s Report for the quarter ending March 31, 2025.
4. Memorandum of Understanding (MOU) between the City of Pacifica and Jefferson Union High School District (JUHSD) for Joint Use of Facilities owned by JUHSD (Jean E. Brink Pool, Terra Nova Pool, and Terra Nova Tennis Courts)
PROPOSED ACTION: Adopt a Resolution approving the Memorandum of Understanding (MOU) between the City of Pacifica and the Jefferson Union High School District (JUHSD) for the joint use of facilities owned by JUHSD (Jean E. Brink Pool, Terra Nova Pool, and Terra Nova Tennis Courts) and authorize the City Manager to execute the MOU.
5. Resolution to Approve Calera Creek Water Recycling Plant Admin Building Elevator Modernization Project P0039
PROPOSED ACTION: Adopt a Resolution: (A) Approving the Construction Contract with KONE, INC. in an amount of $203,200 (B) Authorizing a budget authority in the amount of $219,000, which includes contingencies in an amount of $15,800, not to exceed seven percent (7%) of the Construction Contract amount (C) Authorizing staff to Execute Future Change Orders not to exceed the contingency amount; and (D) Authorizing the City Manager and Designated Personnel to Sign Contract Documents related to the CCWRP Admin Building Elevator Modernization Project P0039.
6. Resolution Authorizing Amendment No. 1 to the Consultant Services Agreement with Kermani Consulting Group, for Disaster Cost Recovery and Grant Management services related to the Winter 2023 Storms
PROPOSED ACTION: Adopt a resolution entitled “A Resolution Authorizing Amendment No. 1 to the Consultant Services Agreement between Kermani Consulting Group, for Disaster Cost Recovery and Grant Management services related to the Winter 2023 Storms in an amount of $50,000, increasing the budget authority to $95,000, and authorize the City Manager to execute all documents related to the amendment”
PUBLIC COMMENTS ON ITEMS NOT ON THE POSTED AGENDA
This portion of the Agenda is available for the public to address the City Council on any issue that is not on the Agenda. Any person wishing to address the Council shall be recognized by the Mayor during this time, provided, however, that only items not on the Agenda for that meeting may be addressed. Comments on non-agendized items must address matters within the subject matter jurisdiction of the City. If comments do not address matters within the subject matter jurisdiction of the City, the City will provide you with an initial warning to stay within the subject matter jurisdiction of the City. If the warning is not followed, the Mayor will direct the City Clerk to cut off the microphone.
Councilmembers shall not enter into debate with speakers under Public Comments on Items Not on the Posted Agenda. A maximum of three minutes will be allowed for any speaker.
City Council Regular Meeting 4 April 28, 2025
COUNCIL COMMUNICATIONS
The purpose of Council Communications is for Councilmembers to inform each other of items of potential interest to other Councilmembers, such as interagency meetings.
STAFF COMMUNICATIONS
The purpose of Staff Communications is for the City Manager to offer announcements as appropriate.
PUBLIC HEARINGS
7. Consideration of an appeal of the City’s Notice of Expiration of Cannabis Public Safety License/Termination of Cannabis Activity Permit and Cessation of Operations dated March 19, 2025, issued to Seaweed Holistics, LLC., located at 450 Dondee Street, Unit #2, Pacifica, CA 94044 (APN 022-021-640) (as continued from April 14, 2025) PROPOSED ACTION: Move to adopt the attached Resolution to DENY the appeal submitted by Ana Leaňo-Williams (Appellant) and UPHOLD the City’s Notice of Expiration of Cannabis Public Safety License/Termination of Cannabis Activity Permit and Cessation of Operations dated March 19, 2025, issued to Seaweed Holistics, LLC., located at 450 Dondee Street, Unit #2, Pacifica, CA 94044 (APN 022-021-640)
8. Resolution Declaring Results of Majority Protest Proceedings and Establishing the Pacifica Tourism Marketing District
PROPOSED ACTION: Hold a final hearing and adopt the resolution establishing the Pacifica Tourism Marketing District (PTMD).
CONSIDERATION
9. A Resolution of the City Council of the City of Pacifica, California, Declaring Certain Portions of City-Owned Property Located at Montecito Avenue and Beach Boulevard also Known as San Mateo County Assessor’s Parcel Numbers 016-204-020 and 016- 294-620 in the City of Pacifica (The Properties) as Surplus Land Pursuant to the Surplus Land Act (Government Code Sections 54220 Et Seq.); Directing the City Manager to Follow the Procedures Set Forth in the Surplus Land Act; and Finding The Action Exempt From The California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15312 (Class 12).
PROPOSED ACTION: Adopt the attached resolution to declare certain portions of the City-owned properties located at Montecito Ave and Beach Boulevard (APN 016-204- 020 and 016-294-620) as surplus land and direct the City Manager to follow the procedures set forth in the Surplus Land Act, California Government Code Section 54220 et seq; and finding the action exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15312 (Class12).
10. Proposed Ordinance Amending Sections 3-15.02, 3-15.03 and 3-15.08 and adding a new section 3-15.11, “Adjustment of dollar amounts to conform to Public Contract Code” within Chapter 15, “Bidding Procedures for Public Projects” of Title 3, “Finance” of the Pacifica Municipal Code relating to public bidding procedures and award of contracts for public projects.
City Council Regular Meeting 5 April 28, 2025
PROPOSED ACTION: Move to waive the first reading and introduce by title only “An Ordinance of the City Council of the City of Pacifica Repealing and Replacing Sections 3-15.02, 3-15.03, and 3-15.08 and Adding a New Section 3-15.11, ‘Adjustment Of Dollar Amounts To Conform To Public Contract Code’ Within Chapter 15, ‘Bidding Procedures For Public Projects’ Of Title 3, ‘Finance’ Relating To Public Bidding Procedures And Award Of Contracts For Public Projects”; and finding introduction of Ordinance not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378.
ADJOURN
NOTICE: If you challenge a city's zoning, planning or other decision 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 Council at, or prior to, the public hearing. Judicial review of any city administrative decision may be had only if a petition is filed with the court not later than the 90th day following the date upon which the decision becomes final. Judicial review of environmental determinations may be subject to a shorter time period for litigation, in certain cases 30 days following the date of the final decision The City of Pacifica will provide assistance for disabled citizens upon at least 24 hours advance notice to the City Manager’s Office (650) 738-7301, or send request via email to:
[email protected] if you need sign language assistance or written material printed in a larger font or taped, advance notice is necessary. All meeting rooms are accessible to the disabled.
The Pacifica Municipal Code is available online at the City’s website (www.cityofpacifica.org/municode);
HOW TO OBTAIN CITY COUNCIL AGENDAS
Posted agendas:
Agendas are posted no later than Friday prior to the City Council meeting date, at the entrance to the City Hall location at 170 Santa Maria Avenue, Pacifica.
View on the Internet:
Follow the link to Council agenda, at www.cityofpacifica.org E-mail subscription:
Send a request to Sarah Coffey, at [email protected] City Clerk’s Office/City Manager’s Office
City Hall, 170 Santa Maria Ave.
Council meetings:
Agendas are available at the City Council meeting
HOW TO REACH YOUR GOVERNMENT OFFICIALS
• San Mateo County Supervisor Ray Mueller, District 3, 500 County Center, Redwood City CA 94063 (650) 363-4569
• Governor Gavin Newsom, State Capitol Building, Sacramento CA 95814 (916) 445-2841 • State Senator Josh Becker, 1528 So. El Camino Real, Suite 303, San Mateo CA 94402 (650) 212-3313 • Assembly Member Marc Berman, 721 Colorado Ave, Suite 101, Palo Alto CA 94303 (650) 324-0224 • Congressman Sam Liccardo, 1117 Longworth House Office Building, Washington DC 20515 (202) 225-8104
• Senator Alex Padilla, 331 Hart Senate Office Building, Washington DC 20510 (202) 224-3553 • Senator Adam Schiff, SD-B40B Dirksen Senate Office Building, Washington DC 20510 (202) 224-3841 • President Donald J. Trump, 1600 Pennsylvania Ave. NW, Washington DC 20500 City Council Regular Meeting 6 April 28, 2025
CITY COUNCIL
• Mayor Sue Beckmeyer, [email protected]
• Mayor pro Tem Christine Boles, [email protected]
• Councilmember Mary Bier, [email protected]
• Councilmember Mayra Espinosa, [email protected]
• Councilmember Greg Wright, [email protected]
CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
Approval of Minutes
RECOMMENDED ACTION:
Move to approve the minutes for the March 24, 2025 City Council Special and Regular Meeting.
STAFF CONTACT:
Sarah Coffey, City Clerk
650-738-7307
[email protected]
BACKGROUND/DISCUSSION:
Move to approve the minutes for the March 24, 2025 City Council Special and Regular Meeting (Attachment A).
FISCAL IMPACT:
Within budgeted operational expenses.
ORIGINATED BY:
City Clerk
ATTACHMENT LIST:
Attachment A: Minutes of 3-24-2025 Special and Regular City Council Meeting (PDF) 1 Packet Pg. 7
CITY OF PACIFICA
CITY COUNCIL MINUTES
Council Chambers
2212 Beach Blvd
Pacifica, CA 94044
Mayor Sue Beckmeyer
Mayor pro Tem Christine Boles
Councilmember Mary Bier
Councilmember Mayra Espinosa
Councilmember Greg Wright
City Council Regular Meeting 1 March 24, 2025
SPECIAL AND REGULAR MEETING
March 24, 2025 (MONDAY)
www.cityofpacifica.org
Mayor Sue Beckmeyer called the meeting to order on March 24, 2025 at 5:00 PM. 5:00 PM - CLOSED SESSION
Mayor Beckmeyer called the meeting to order at 5:00 p.m.
A. CONFERENCE WITH LABOR NEGOTIATORS - Government Code section 54957.6 - Agency designated representatives: Mark Wilson, Allison Hernandez of Burke, Williams, and Sorenson; Employee organizations: Fire Battalion Chiefs, IAFF Local 2400; Fire Fighters, IAFF Local 240; Management Unit, Teamsters Local 350 ; Miscellaneous Employee, Teamster Local 856; Pacifica Police Officers Association; Police Mgmt. & Police Supervisors; Wastewater Treatment Plant Teamsters Local 856
7:00 PM OPEN SESSION
Call to Order
Mayor Beckmeyer reconvened the meeting at 7:02 p.m.
Attendee Name Title Status Arrived
Sue Beckmeyer Mayor Present
Christine Boles Mayor pro Tem Present
Mary Bier Councilmember Present
Mayra Espinosa Councilmember Present
Greg Wright Councilmember Present
City Clerk Coffey took a verbal roll call.
Staff Present: Kevin Woodhouse, City Manager; Michelle Kenyon, City Attorney; Yulia Carter, Asst. City Manager; Karen Murphy, Asst. City Attorney (Zoom); Samantha Updegrave, Community Development Director; Marisol Gómez, Financial & Administrative Services Director; Scott Leslie, PB&R Director; Louis Sun, PW Interim Director; Roland Yip, PW Deputy Director
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Attachment: Attachment A: Minutes of 3-24-2025 Special and Regular City Council Meeting (5917 : Approval of Minutes) City Council Regular Meeting 2 March 24, 2025
(Field Services/Engineering); Maria Sarasua, Police Chief; Bill Glasgo, Police Captain; Sarah Coffey, City Clerk; Emily La, Dep. City Clerk.
Reading of Land Acknowledgment
Mayor Beckmeyer read the Land Acknowledgment.
Salute to the Flag led by Mayor pro Tem Boles
Closed Session Report
City Attorney Kenyon stated there was no reportable action.
CONSENT CALENDAR
Mayor Beckmeyer asked if any councilmembers wished to pull any items in consent.
Mayor pro Tem Boles stated she would like to pull Item #3.
Councilmember Espinosa stated she has a few questions about Item #4. She thought this the same vendor who did work in her area and around Pacifica and she did not think they did a good job. She asked if they are subcontracting or are they doing the work themselves.
City Manager Woodhouse stated that Pavement Coatings is the company and they do the work.
Councilmember Espinosa asked how the City makes sure the pavement work is done correctly.
She asked will there be somebody making sure that what they said they are going to do is done.
She also wants to find out about the thickness of the material they put in and how do we hold them accountable. She asked about the length of warranty. She wanted to find out what maintenance means and are they going to continue checking on those streets and, if something went wrong, will they go back and fix it.
PW Dep. Director Yip stated that, to keep them accountable on the project, we will have staff doing inspections on this project. He stated that the project primarily for this year is going to be a rubber cape seal; the first layer is the chip seal and the second layer is the slurry seal. They are two layers of black coating that they are putting onto the surface so there is no thickness to check in terms of that material, but we will be checking submittals to make sure we are getting the materials that we have specified in our plans. Where there is a thickness is an asphalt material that we place in the ground (roughly 3 inches) and we will remove and replace the asphalt before they do the rubber cape seals, and we will be measuring out there with tape measure to make sure it is compacted properly. He stated that the most important thing for asphalt is that they go down hot and we have to make sure that goes down above 175 degrees.
They make sure it has compaction and they do the chip seal and then the slurry seal. He stated that, as far as liquidated damages, since the project from two years ago, we have added a $1,000 liquidated damage for each block where they post a no parking sign and they do not perform any work; that is every single day, every single block, and that usually deters contractors from trying to schedule paving at once and not being able to get to it, causing residents to move around. They will get charged and, when we get phone calls, he lets residents know that we have accumulated all the liquidated damages so they will not have moved for nothing. The cost of the contract will go down whenever they post all the no parking signs. He stated that there is also a $500 liquidated damage in the specifications whenever
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Attachment: Attachment A: Minutes of 3-24-2025 Special and Regular City Council Meeting (5917 : Approval of Minutes) City Council Regular Meeting 3 March 24, 2025
they work without giving hand delivered notices to the residents three days in advance. He stated that those two have prevented many issues. We did not see as many issues last year and we collected liquidated damages last year for our project. He stated that we have one and a half staff full-time when paving starts and we have additional liquidated damages on the project. As far as the bid requirements, the requirement comes from the California Public Contracting Code which is a State law. Bids must first be a responsive bid and, secondly, they must be a responsible contractor. The Contracting Code states that a portion of the work is a half-percent of the contract, i.e. $10,000. They must list subcontractors. When it is a nonresponsive bid, the most common occurrence is people do not list out the correct subcontractors on the project. There are also bonding requirements, insurance, forms, and abidance by our plans and specifications. That constitutes a responsive bid, which is not to be confused with a responsible contractor. He stated, on this paving project, the two lowest bids, S&H Construction and Build Corps, have submitted bids and staff is not saying that they are not a responsible contractor, but that the bids are not responsive. There is a slight nuance there, as their specifications require a certain amount of references which equal the scope and size of the project, which they were not able to provide and that makes their bid not responsive. He stated that he is allowed to request that information at any time and he requested it before we award the bids. Because they were not able to provide those references and projects, they have been deemed not responsive. He stated that with the third contractor, Pavement Coatings, there was a bid protest from the fourth contractor that they did not fill out the form that we provided for the subcontractor. Following review, he stated that there is no legal requirement for Pavement Coatings to use specifically our form. They used a separate form, and some contractors may do this because their project lists are very long or they may do that for the references. He stated that the form they provided was missing a signature which is not required by the Public Contract Code and they are not missing any information with what they have supplied, and therefore their bid is considered responsive even though they do not use our form. That is why the recommendation was to deem the first and second bid not responsive. With the third bid, we rejected the bid protest and deemed the bid responsive and are recommending the award to Pavement Coatings.
Councilmember Espinosa asked if the same job assignment was given to them in 2022 and 2023. She stated that the work they did was not good quality and she would like them to go back and check and see if we can still fix those things.
PW Dep. Director Yip stated, if the project was from 2022-2023, unfortunately, the warranty period has ended on that project, as we only hold a one-year warranty on our Capital Improvement Projects. He stated that this same contractor did work on the Manor area in 2023-
24. There was an issue on Manor Drive due to the mixing of the gravels. He stated that when this contractor was notified of this, they came back and repaved all of Manor Drive so Pavement Coatings upheld their warranty for that project two years ago.
Councilmember Espinosa stated that her concern was that it takes so long to do any work on the streets and the hassle the community had to go through. She stated that, since we do not have much money, it would be good if we just hire them and staff make sure they do a good job for that project.
Mayor Beckmeyer stated that it sounds like we have staff assigned for that purpose.
PW D ep. Director Yip stated that we do and we will be very thorough with their QA/QC.
Councilmember Wright asked about the difference between repaving, chip seal, and slurry seal.
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PW Dep. Director Yip stated that the chip seal has more aggregates and most cities do not typically just put a chip seal down. When you drive your car over chip seals, you are going to feel that it is very bumpy and that is why most people do a combination of the chip seal and the slurry seal which has less aggregates. He stated that the chip seal adds some structural component and that is why a slurry seal by itself will only last about seven years and the rubber cape seal can last up to 15, which we have seen and heard from other agencies. This is the backbone of our 5-year paving plans because we are backlogged several million dollars from our P-TAP report. Therefore, in order to maintain our streets, we have to do the chip seal plus the slurry seal. He stated that the reason why a lot of cities do not do the chip plus the slurry seal (called a cape seal) is because it triggers curb ramps in the city. When it triggers curb ramps, it is not as cost-effective to do the project. He stated that this has been working for us and we will do the curb ramps and then do the cape seal.
Councilmember Wright asked about the repaving.
PW Dep. Director Yip stated that the repaving is something that is done when it is recommended in Street Saver. He stated that there is a Pavement Condition Index which rates the pavement from 0 to 100. He stated that you can only do a slurry seal if it is above 75. Once it falls below that, it is not as effective to do this type of treatment because the second you put that black coating and oil down, the cracks will appear almost immediately; when streets are completely allocated, you cannot just put the cape seal down onto the street. If it is isolated or small patches of areas where we can go in and repave three inches, and still do the chip seal or cape seal, we will do that. If we cannot do that, the whole street is completely allocated and the street saver is going to recommend a complete new overlay of the project, which is a repaving and is much more expensive.
Councilmember Wright concluded that it is a cost-saving measure. He then asked if this was a prevailing wage job.
PW Dep. Director Yip agreed, adding that all our specifications require for the project to be paid in prevailing wages. We give them a project account code from the Department of Industrial Regulations and they will regulate the payment of prevailing wages and we will also check that they are paying the prevailing wages before we issue all invoices.
Mayor pro Tem Boles concluded that this company did both District 1 and District 2 paving and she asked if they recently did the ones in Pedro Point.
PW Dep. Director Yip stated that was a different contractor called VSS.
Mayor pro Tem Boles asked if they provided a bid for this work now.
PW Dep Director Yip stated that the VSS did provide a bid.
Mayor pro Tem Boles concluded that they were one of the higher bids.
PW Dep Director Yip responded affirmatively.
Mayor pro Tem Boles appreciated staff’s attention to public notification and communication.
She thought for the Manor project we used CWD for that project as the project manager and that person’s contact was given to residents and asked if that is true for this project also.
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PW Dep Director Yip stated, from two years ago, it was CSG and it was a third party that was helping with the construction management. We have since taken that in house and we will do a better job doing it in house as we know the residents and will be more responsive.
Mayor pro Tem Boles concluded that, if staff starts to see paving that is not to specs, we can catch it early. She stated that the other issue that came up on that project were trees that overhung the right-of-way, and she wanted to understand what the process is about that, such as does an arborist come out and notify the owner if they have a tree that is impacting the ability to do the work.
PW Dep. Director Yip stated that the contractor should be notifying us. We will follow the Tree Ordinance and do the trimming procedures as required. He stated that we will mention this in their pre-construction meeting with the contractor.
Mayor pro Tem Boles thought it was not part of the original notices to residents and she appreciated him putting that on the list.
City Clerk Coffey stated that she also has an amendment to Item #5. She stated that Item #5 is the garbage collection ordinance that was introduced at the March 10 meeting and there was an incomplete whereas clause; as an administrative correction, we are completing the third whereas clause to read, “Whereas the City’s response to R4 of the Grand Jury Report indicates that R4 will be implemented in the future; and …” and then continues with the next whereas clause.
Mayor Beckmeyer opened public comments on Consent Calendar excluding Item #3.
Suzanne Moore, Pacifica, asked confirmation that Item #4 addresses continued street repavements. She then shared community complaints and surveys about the quality of work of the vendor and suggested seeking further bids.
Cliff Lawrence, Pacifica, referred to Item #4 and asked if local vendors had bid on the project, if value was credited to local vendors during the process, and expressed concerns on the quality of work of the vendor.
Leo Leon, Pacifica, referred to Item #4 and requested adequate review of the paving work by staff and stressed the need for streets to be paved in light of the Street Pavement Index.
Kimberly Finale, Pacifica, referred to Item #4 and shared her concerns on the previous project in Manor with the street paving vendor and the street sweeping vendor. She also emphasized the environmental impact on the ocean and offered another option for who they hire.
Mayor Beckmeyer closed public comments. She then asked staff to touch on the issue of postpaving cleanup, how is it accomplished, and what is the expectation.
PW Dep. Director Yip stated that the contractors have their own street sweepers and they need to clean up the slurry seal coating that has some residual aggregates. In addition, we can also request our own street sweepers to get better coverage, such as the gutters. He stated that a common residual effect of the slurry seal is some of the aggregates come off.
Mayor Beckmeyer concluded that they clean up after they complete their work and our street
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sweeping schedule follows after that.
PW Dep. Director Yip agreed, stating after the slurry cures, they need to do some clean up, and we can inspect it to make them do this. Because we have our street sweepers out there anyway, it takes several rounds for the street sweepers to clean it up. Thus, the City cleans up afterwards with our sweepers. He stated that we would like the contractors to be responsible for this but there is a cost to it. If we want them to do something that is more work, and we want to make them slow them down so we can get proper notification, we can do that and have done that by adding the liquidated damages. There is a cost for all these things we do and it will make the bids go higher. He stated that we have a street sweeping contract that we just issued and our street sweepers can clean it up.
Mayor Beckmeyer knows we are reworking that schedule as we had to adjust it for certain areas and asked if Public Works can look at the overlap between that schedule and the paving schedule to make sure we have it scheduled to take advantage of both of those contracts.
PW Dep. Director Yip answered affirmatively.
Mayor pro Tem Boles asked when do the cars come back and park, as the street sweepers are often in the middle of the road and not cleaning the edges; if they are not cleaning the gutter, they are not picking up that gravel. She asked at what point do they do their cleaning and is there still no parking.
PW Dep. Director Yip stated that they do not come back and do no parking for the street sweeping. They will be sweeping the middle of the street. He stated that we can look into that part to see if we can get some parking signs there so our street sweepers can cover some of the area, but typically, if we have no parking, we would be able to capture everything in the gutter. However, because we do not have that, that is why there is so much of it in the gutter and we will have to try to address that with the project.
Mayor pro Tem Boles thought that would be great if we could or have them sweep by hand such as 20 feet from the storm drain and critical spots. She asked if we give any preference for local bidders.
PW Dep. Director Yip stated, with the California Public Contract Code, we are required to award it to the lowest responsive bid and responsible contractor. Having a responsive bid means following certain requirements, such as providing a subcontractors list or bond or following our specs. He stated that their requirement only has to be a responsive bid. To deem them not responsible contractors, they would either be incapable of doing the work, or there are some violations on their licensing, either with a DIR or contractor licensing board. If they have a responsive bid and are a responsible contractor, we must award to the lowest responsive bid which, with the rejection of the first and second bidders, Pavement Coatings is the next responsive bid on this project. As a requirement from the California Public Contract Code, we must advertise in the newspaper as public, and everyone can bid on the project and whoever is a responsive bid, we will award it to them, which is state law requirement. He stated, if this was federally funded, as we have for the Sharp Park Pedestrian Improvement, there are certain federal requirements which require them to award a certain percentage of the project to a disadvantaged business (DB) enterprise and sometimes those can be local but is mainly that they have to have a certification that they are a DB. With that project, there are certain types of requirements that must be met in addition to what is in the Public Contract Code. Other than that, if they can do the project, and they have a responsive bid, we must award them the project.
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PW Interim Director Sun added that the local participation is typically reserved for qualificationbased process which we use when we select consultants, but in this case, it is a contracting bid and, if it is a federal project, some might come into consideration.
Mayor Beckmeyer concluded that we have to follow the parameters under State law.
PW Interim Director Sun answered affirmatively.
Mayor pro Tem Boles moved to approve consent calendar, minus Item #3 and with Item #5 as amended; seconded by Councilmember Bier.
CONSENT ITEMS #1, 2, 4, #5 AS AMENDED (EXCLUDING ITEM #3) RESULT: ADOPTED AS AMENDED [UNANIMOUS]
MOVER: Christine Boles, Mayor pro Tem
SECONDER: Mary Bier, Councilmember
AYES: Beckmeyer, Boles, Bier, Espinosa, Wright
1. Approval of Minutes
PROPOSED ACTION: Move to approve the minutes for the February 24, 2025 Joint Study Session of the City Council and Climate Action & Adaptation Task Force and the February 24, 2025 Regular City Council Meeting.
2. Adoption of a Resolution of the City Council of the City of Pacifica approving the Montara Mountain-North Peak Communications License Agreement
PROPOSED ACTION: Move to adopt a Resolution approving the Montara MountainNorth Peak Communications License Agreement; finding the approval of the License Agreement categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301 (Class 1-Existing Facilities); and authorizing the City Manager to execute the License Agreement.
3. Authorize the Submittal of a Grant Application to the California State Parks Division of Boating and Waterways for the Beach Boulevard Infrastructure Resiliency Project PROPOSED ACTION: Adopt the resolution entitled "Resolution of the City Council of the City of Pacifica Authorizing the Submittal of Grant Applications to the California State Parks Division of Boating and Waterways for the Beach Boulevard Infrastructure Resiliency Project.”
Agenda Item #3 Discussion
City Manager Woodhouse stated that staff is available to provide a verbal overview of this item.
Mayor pro Tem Boles stated she is asking for the overview for the new councilmembers as well as an overview of the grant application.
City Manager Woodhouse can describe what is in the application, which is for Phase 2C of the BBIRP, adding that 2B has already been authorized to apply for by Council and staff has applied and are waiting to hear about award of that.
PW Dep. Director Yip recommended to adopt the resolution entitled Resolution of the City
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Council of City of Pacifica authorizing the submittal of grant applications to the California State Parks Division of Boating and Waterways for the Beach Boulevard Infrastructure Resiliency Project (BBIRP). The project will replace Pacifica’s failing sea wall and deep foundation sea wall, rock scour apron, and sand placement to protect critical infrastructure from coastal erosion and sea surges. He stated that the BBIRP is a multi-phased City-led project that aims to create a benefit solution to the Beach Boulevard corridor in the historic West Sharp Park neighborhood. The City has been working to advance BBIRP with more recent action of Council occurring on November 28, 2022, when it was approved for an amendment with GHD Inc., the coastal engineers that began the second phase of the project, specifically Phase 2A, the preliminary project design. Following public input from Phase 1, we decided that the hybrid system was the most cost-effective project which included a sea wall, rock scour apron, and beach nourishment. On March 28, 2024, Council authorized the submittal of a similar application to DBW for Phase 2B, which was the environmental document phase. We are still waiting for the results of that grant application which will be finalized by June 2025. Now, we are applying for a $2.5 million to fund Phase 2C, which is the third phase of the design. Phase 2C is the permitting and final design of BBIRP which includes completing 100% plan specification and estimates, the PS&E, and securing the regulatory permits. With the grant, there is a 50% match, and the resolution commits the City to provide the requiring matching funds of $1.25 million, which will come from the Disaster Accounting Fund. Currently, we are in Phase 2A, the 35% design and cost estimating, and are wrapping up the Notice of Preparation and Scoping for the Environmental Impact Report, which will be completed around July 2025.
In terms of timing, that falls very closely to when we will find out about DBW on the next phase of the project. Staff is planning to bring an update to the project back to Council, similar to what we did in Phase 1; at that time, we will decide on how we would like to proceed on the next phase of the project, pending on whether or not we receive this grant from DBW.
City Manager Woodhouse stated, in response to questions, he said in the August timeframe for the summary. In July, we take the second meeting off in July and thus July is more impacted.
Mayor pro Tem Boles referred to Phase 2B, the environmental documentation, where we are still developing the design and doing all the EIR work. She asked if that is at least a year or a year and a half worth of work.
PW Dep. Director Yip stated that it was fair to say as it may take up to 18 months or more. He stated that the next phase is primarily focused on the EIR. In Phase 2C, we will complete the design and bring it to 100%.
Mayor pro Tem Boles thought we still have a few months of presentations of those projects, some feedback, and then another year and a half, meaning close to two years before we start the other work that we are applying for the grant and putting in disaster funds now. Therefore, it would be close to two years before this work will start that staff are asking Council to approve.
PW Dep. Director Yip agreed, adding that it will have to happen after the EIR is complete.
Mayor pro Tem Boles asked if the Coastal Commission review it at that point or do they review it when we have the full set of construction drawings.
PW Dep. Director Yip stated that they will review in Phase 2C when we have 100% design and we go through the Coastal Commission permitting, but that is not to say that they are not allowed to review it in the EIR. They are allowed, as an interested agency, to provide comments to the City ahead of the public and will be provided the report ahead of time for the
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review and commenting and we will address their comments. He stated, in terms of our coordination with the Coastal Commission, we have had three meetings with them for this phase alone with several high level comments with the studies and analysis; in addition, they asked staff about the portion in the north end to pull it back and move it and staff has done that.
Mayor pro Tem Boles concluded that will be coming up later this year. She stated that, with Phase 2B, we approved the grant and she asked what our cost share for that one.
PW Dep. Director Yip stated that the cost share is $2.5 million for Phase 2B, and that is the same grant but a different fiscal year, thus also a 50% cost share. He stated that the numbers are the same, $1.25 million of a local share for both 2B and 2C.
Mayor pro Tem Boles stated, if we are granted this grant for 2B, we need to come up with that money out of the Disaster Accounting Fund.
PW Dep. Director Yip agreed, unless we can find another local match and we do try to find it.
Mayor pro Tem Boles asked when does he see the grant for 2C coming forward that we will have to pay this additional $1.25 million.
PW Dep. Director Yip stated that it sounds like we applied last year and it took them about a year to review the application. He perceives possibly around a year or a year and a half when we will have to get an agreement in place.
Mayor pro Tem Boles asked, by committing to this money now, are we committing to that in a year and a half from now or, if things change financially and our priorities change, we have the opportunity to review that again.
PW Dep. Director Yip stated, until we sign the agreement, we have not committed the funds.
He stated that this is a resolution to allow us to submit the application.
Mayor pro Tem Boles asked if that was the City Manager’s understanding.
City Manager Woodhouse did not think the City would have to obligate the money until we receive the grant and are signing the agreement to move forward with the work. He stated that, in this type of project and the continuous fundraising strategy required for these huge infrastructure projects, it behooves the City to be lining up and having commitment and funding for those as far in advance as possible as that brings clarity and direction to the project. He stated that it is not obligated until it is signed.
Mayor Beckmeyer opened public comments:
Suzanne Moore, Pacifica, opposed matching the funds from the Disaster Accounting Fund and asked how much will the plan cost Pacifica, what is the projected lifespan of what we invest in the project, and what impact will it have on other locations in Pacifica.
Kimberly Finale, Pacifica, stated expressed her concerns regarding spending disaster funds on BBIRP and suggested planning for an alternative in order to be able to conserve our disaster funds and thereby respond to a major disaster.
Clif Lawrence, Pacifica, agreed with Ms. Finale’s comment and stated we need to have a fund
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for the purpose for which it was intended.
Tygarjas Bigstyck, Pacifica, acknowledged that we are not committed to putting that money toward a grant application until we have it, and he shared his concerns regarding costs incurred by a disaster caused by loss of proper armoring that might be more than the matching funds.
Summer Lee, Pacifica, stated community members were troubled because the Disaster Accounting Fund is for short-term disasters and there is no long-term planning. She encouraged a plan for moving infrastructure inward.
Leo Leon, Pacifica, asked what the cost of moving our infrastructure inward would be and if there are grants available for those moves. He encouraged looking at alternatives before any commitments.
Ed Ochi, Pacifica, stated the resolution is to forward a grant application. He stated stopping due to an issue of cost when no grants have been awarded yet is bad and stated there is time to look for alternatives.
Mayor Beckmeyer closed public comments.
Mayor pro Tem Boles thought the part that is confusing is the staff report states that the City shall commit the required matching funds. However, staff was saying if we got the grant, we can still decide.
City Manager Woodhouse understood and added that what he said earlier was that we are not committing the funding until we sign on the agreement with Department of Boating and Waterways. Should Council decide at that time that we will not sign and accept the grant, that would be the decision they can make. If the resolution did not say that we were going to commit the matching funding, we would not get the grant but that is how it works, i.e., having to commit to matching funding and you pay it when you sign the agreement.
Councilmember Bier wanted to comment on taking time to look at adaptation strategies as soon as our Local Coastal Land Use Plan comes back. She does not want the community to think that, just because we are putting in a grant application that we are not going to be looking at adaptation strategies.
Mayor pro Tem Boles stated the resolution does not have the same language that the fiscal impact in the staff report says. She stated that she works in construction and has seen many projects spend so much money on design and then they get cancelled at the last minute or they cannot get funding at the last minute. She stated that is why we have all these checks and balances along the way on the project. She thought this money was for 2B, the environmental review. She is hearing that there is less money for hard armoring and the other thing that was supposed to be done earlier and now have put off to 2B is understanding the impact of the sea wall to the community of Shoreview and to the berm. She stated for her, committing money to 2C for construction designs before we know the environmental impact and if this project is even feasible as it is, is concerning. She stated that the fact that we are committing this money now, she is okay submitting the grant application, but the staff report was confusing.
Mayor Beckmeyer stated that her concerns are duly noted and she is hearing the same concerns from different parts of the community. She thinks Councilmember Bier’s points are well taken about having our LCLUP, and we will have much broader discussions about
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adaptation strategies because that is part of the plan. We will be looking at all of the coast and all of those parts. She agrees that this is an armoring project, and it is a hybrid project and there are different elements and aspects to it and it has changed over time. It is appropriate for Council to have a broader discussion when we get to that point. She also thinks it is appropriate for us to be seeking funding so that we are able to get to that point.
Councilmember Wright believed that staff has demonstrated thinking a few steps down the road and he appreciates that. In addition, Council is able to make this decision earlier in the process as opposed to what he is more used to, so it gives us time to explore other options.
Councilmember Bier added other sources of money instead of the Disaster Accounting Fund.
Councilmember Espinosa agreed with her. She thought we could wait until we get closer to getting the grant and we can discuss more and figure out other sources to get the money and leave the Disaster Accounting Fund in case we need it.
Councilmember Wright moved to approve Item #3; seconded by Mayor Beckmeyer.
AGENDA ITEM #3
RESULT: ADOPTED [UNANIMOUS]
MOVER: Greg Wright, Councilmember
SECONDER: Sue Beckmeyer, Mayor
AYES: Beckmeyer, Boles, Bier, Espinosa, Wright
Councilmember Bier moved to reorganize the agenda as follows: Move Item #9 to the beginning of Consideration items and Move Council Communications and Staff Communications to the end of the meeting; seconded by Councilmember Wright.
AMEND THE AGENDA (MOVE ITEM #9 TO THE BEGINNING OF CONSIDERATION ITEMS
AND MOVE COUNCIL COMMUNICATIONS TO THE END OF THE MEETING) RESULT: ADOPTED [UNANIMOUS]
MOVER: Mary Bier, Councilmember
SECONDER: Greg Wright, Councilmember
AYES: Beckmeyer, Boles, Bier, Espinosa, Wright
4. Award FY 2025-26 Pavement Resurfacing Project
PROPOSED ACTION: Adopt the Resolution entitled "A Resolution of the City Council of the City of Pacifica Approving the Construction Contract with Pavement Coatings Company in the amount of $1,586,657.90; Authorize a budget authority in the amount of $1,824,656.59, which includes contingencies in an amount not to exceed fifteen percent (15%) of the Construction Contract amounts; Authorize staff to Execute Future Change Orders not to exceed the contingency amount; and Authorize the City Manager to sign Contract Documents related to the FY 2025-26 Pavement Resurfacing Project.”
5. Adoption of Ordinance to Revise Section 6-5.103 - Section 6-5.105 Garbage Collections of the Pacifica Municipal Code
PROPOSED ACTION: Waive second reading and adopt by title only an Ordinance repealing and replacing sections 6-5.103, 6-5.104, and 6-5.105 of Chapter 5, “Garbage, Collection and Recycling” within Title 6, “Sanitation and Health” relating to the size of
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waste containers and frequency of collection.
PUBLIC COMMENTS ON ITEMS NOT ON THE POSTED AGENDA
Clif Lawrence, Pacifica, referred to the City’s 1099’s and suggested that the City spend more of their money locally as the City continually recommends community members to do.
Suzanne Moore, Pacifica, referred to concerns expressed by Seacliff Apartment tenants and suggested a community event sharing tenants’ rights and resources. She also provided information and resources for tenants.
Marty Anaya, Pacifica, stated PCT has started a new project of town hall meetings and shared information on past and upcoming town hall meetings available in person and online. He invited everyone to come to the town hall meeting on the Age-Friendly Initiative.
Sue Digre, Pacifica, shared her concerns on vertiports, aircraft noise, and aircraft patterns.
Kimberly Finale, Pacifica, shared her concerns and suggestions on the future situation of the Seacliff Apartments residents being made homeless without support and resources.
Irene Lee, Pacifica, referred to the street sweeper problem because of so many cars on the street and suggested resending public notice to all residents to tell them the dates and times for street sweeping and enforce tickets for non-compliant vehicles.
Mayor Beckmeyer closed public comments. She stated that we have moved Council and Staff Communications to the end of the meeting and moved Item #9 as the first consideration item.
COUNCIL COMMUNICATIONS – NONE.
STAFF COMMUNICATIONS – NONE.
PUBLIC HEARINGS – NONE.
CONSIDERATION
6. Resolution approving the City’s 2024 Annual Progress Report on Implementation of the Housing Element of the General Plan and the 2024 Annual Progress Report on Implementation of Other Elements of the General Plan
PROPOSED ACTION: Move to adopt a Resolution approving the City’s 2024 Annual Progress Report on Implementation of the Housing Element of the General Plan and the 2024 Annual Progress Report on Implementation of Other Elements of the General Plan, and directing the City Manager to transmit the reports to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (LCI).
Community Development Director Updegrave, with the assistance of Good City Company Consultant Sabina Mora, presented the staff report. In the presentation, Director Updegrave noted a few corrections to read into the record: on the General Plan APR (packet page 167) one of the implementing actions should be corrected to Conservation Implementation 72 instead of 71 (CO-I-72) and read “Removal of Barriers to Public Participation. Implement efforts to remove barriers that may prevent underrepresented communities from public participation
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opportunities.” which will be revised in the final report that is filed with LCI. On packet page 169, the ADU information was left blank and should be completed as, “The City received 25 applications for 47 ADUs in 2024, of these all were approved ministerially and 16 received a building permit in 2024.”
Consultant Sabina Mora continued the presentation. She stated that there were a couple of typographical errors in the staff report to be corrected, which are reflected in the slide presentation, and a few technical corrections read into the record, including the addition of the following text regarding affordability assigned to ADUs on Exhibit A in Table A and A2 on page 142 and 143 in the agenda packet should have the following added as a footnote, “Actual affordability of individual ADUs is not known. Affordability of ADUs on Tables A and A2 were assigned sequentially based on HCD-approved criteria.” Additionally, there is a typo on the program status on Exhibit A, Table D on packet page 149 and should be corrected to, “The City cannot submit additional amendments until after its new LCLUP is certified, which is slated for a California Coastal Commission hearing in May 2025.” Lastly, we will need to add a project Pacific View on Hickey Blvd and Monterey Road, which has 37 units, to Table A which is Completed Applications.
Community Development Director Updegrave concluded the presentation.
There were no public comments.
Mayor pro Tem Boles referred to the applications we received for 397 units, and she asked how many of those were Builder’s Remedy projects.
Community Development Director Updegrave stated the three larger projects are Builder’s Remedy projects.
Mayor pro Tem Boles asked, if out of the 397, if that is the majority of those units.
Community Development Director Updegrave answered affirmatively.
Councilmember Espinosa asked about amount of the 397 units that is affordable housing or below market rates.
Consultant Mora stated we they would have to look at the detailed data and do a tally.
Mayor pro Tem Boles stated there were 43 Certificates of Occupancy and asked if any of those were from 801 Fassler.
Community Development Director Updegrave stated that 801 Fassler has not received Certificate of Occupancy to date.
Mayor pro Tem Boles knows they are offering some of the units for sale and she understands that four of those units are supposed to be available to very low income and moderate income.
Consultant Mora stated, for the 397 applications on Table A, there is income distribution of those, and it is the best information the City has at this time. What they have in the applications are 15 low income, non-deed restricted; 69 low-income deed restricted; and 14 low income nondeed restricted. She reiterated that it is on Table A in the first row.
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Mayor pro Tem Boles stated these applications primarily do not comply with our zoning code and that is why we need them if the housing was approved. She was confused about a comment on packet page 153 about the Emergency Shelter Ordinance and asked if that has been submitted to the Coastal Commission at this point.
Community Development Director Updegrave stated that it has not been certified and staff will report the status of that this week.
Mayor pro Tem Boles stated that we are behind on the timeline but assumed that HCD has reviewed the new dates that are within our capacity and deemed them acceptable.
Community Development Director Updegrave answered affirmatively.
Councilmember Wright referred to packet page 1304 about a February 2025 timeline.
Community Development Director Updegrave stated that was in the revised Housing Element and is one of the technical edits.
Councilmember Bier moved to adopt the resolution approving the City’s 2024 Annual Progress Report on Implementation of the Housing Element of the General Plan and the 2024 Annual Progress Report on Implementation of Other Elements of the General Plan, and directing the City Manager to transmit the reports to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (LCI) with corrections noted in the presentation; seconded by Councilmember Espinosa.
RESULT: ADOPTED AS AMENDED [UNANIMOUS]
MOVER: Mary Bier, Councilmember
SECONDER: Mayra Espinosa, Councilmember
AYES: Beckmeyer, Boles, Bier, Espinosa, Wright
7. General Plan Amendment GPA-106-24 for Adoption of the Revised 2023-2031 Housing Element of the General Plan (File No. 2023-025)
PROPOSED ACTION: Move to adopt the attached Resolution to:
1. Find the revisions consistent with the Initial Study/Negative Declaration for the 2023- 2031 Housing Element and that no subsequent environmental review is required; and
2. Approve the revised 2023-2031 Housing Element of the General Plan Community Development Director Updegrave, with the assistance of Good City Company Consultants Nicholas Hamilton and Aaron Aknin, presented the staff report. Director Updegrave referred to a summary of the HCD direction and revisions, some technical revisions and provided a copy to Council with a revision to the recommended Resolution with an added revised Finding, and staff’s recommendation.
Consultant Hamilton continued the presentation. In the presentation, he discussed analysis and revisions based on work with HCD to come to a substantially compliant Housing Element. He read into the record a revision to the table note for Table 5, “Programs indicated with (R) are rezoning programs. All land use redesignation and rezoning to accommodate RHNA are included within HE-I-1 and are intended to be complete by May 2025 (edited from February)…” He also provided for the record technical edits to the Proposed Resolution adding the Findings,
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as identified in the letter from HCD that was received recently, to make Findings associated with the non-vacant sites to fulfill low-income RHNA with site-by-site analysis in Tables F-11 and F12 in Appendix F on pages F40-F42 with data, methodology and evidential basis for the conclusions that are drawn.
Community Development Director Updegrave concluded the presentation.
Councilmember Wright moved to extend the meeting to 12:00 a.m.; seconded by Mayor Beckmeyer.
EXTEND MEETING TO 12:00 AM
RESULT: ADOPTED [UNANIMOUS]
MOVER: Greg Wright, Councilmember
SECONDER: Sue Beckmeyer, Mayor
AYES: Beckmeyer, Boles, Bier, Espinosa, Wright
Mayor Beckmeyer asked if Council has questions before they open public comments.
Councilmember Wright appreciated the work done by Planning Commission and Community Development staff in coordinating with HCD and finalizing the draft.
Mayor pro Tem Boles appreciated Good City and all the work they did coordinating with HCD.
She asked if HE-I-1 was related to the topic of sites that already have development on them.
Consultant Hamilton stated that it was specific to sites listed for shortfall that would be rezoned to achieve a lower income RHNA on those sites.
Mayor pro Tem Boles knows one is the Sanchez Art Center and asked if we are rezoning the shortfall sites now as part of this process.
Consultant Hamilton stated that the January 2024 Housing Element already included rezoning these sites to achieve this and more. He stated that this is a statutory threshold applicable to any site statewide that might fall into that category. These sites were already going to satisfy this requirement and HCD insisted that the language go in.
Mayor pro Tem Boles stated we zoned it for more than this number of units even for Sanchez.
Community Development Director Updegrave stated that all of these sites are included in the Phase 1 rezoning already.
Mayor pro Tem Boles asked about the maps and conditions Planning Commission made regarding partly the boundary as well as adding setbacks, open space requirements, heights, etc. and asked if that has been reviewed and analyzed or part of the later rezoning work.
Community Development Director Updegrave stated that the assessment of the objective design standards is part of the rezoning packet moving forward and those are not included in the Housing Element.
Mayor pro Tem Boles stated that in the Housing Element we are identifying a certain number of units for each of these sites.
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Community Development Director Updegrave stated based on the area devoted to housing.
She stated that we have not made any changes to any of the maps so they are currently part of the adopted Housing Element.
Councilmember Wright stated Planning Commission performed the analysis and calculations and concluded it was feasible to do it within the high requirements in the amount of area we provided them for it.
Mayor pro Tem Boles stated there was a finding that said “based on substantial evidence in the record, existing uses on a non-vacant site identified in the site inventory, to accommodate RHNA are likely to be discontinued during the planning period and do not constitute an impediment to planned residential development” and stated she needs to know which sites these are before confirming that.
Community Development Director Updegrave stated that the analysis supporting these findings is already located within the Housing Element itself and is not based on new information. She stated that HCD asked staff to include these findings in this packet and that is why they were added but are reflective of the analysis in the Housing Element itself.
Mayor pro Tem Boles stated this was Appendix F.
Consultant Hamilton stated that the change is to the finding and not to the development standards such as the density or units anticipated for any of those sites which stand as they stood in January 2024. He stated the change here is to make a finding that says that analysis is in the record to reinforce what has already been done.
Mayor pro Tem Boles asked if the Sanchez Art Center is in this list of sites and explain what is in the record that says the Sanchez Art Center uses are not an impediment.
Community Development Director Updegrave thought it was important to remember that the polygons account for some of the existing development that is on the site and locate areas for housing development within specific locations on this site.
Asst. City Attorney Murphy stated for the record that the finding is not legally required in the resolution, only the Government Code of more than 50% of the low income sites are not vacant, but since HCD asked to include the finding and since the information was already in the record in the text of the Housing Element, staff did include it as well as a finding that more than 50% of the low income is on non-vacant sites for clarification.
Consultant Hamilton referred to packet page 1565, Table F12. He pointed out the Art Center on the screen, Site 23, is a publicly owned site by the City. The way that the State identifies whether or not that site is constrained is that a site owned by the City has more latitude than one that is privately owned.
Mayor pro Tem Boles asked if we are saying this finding for the site that the existing uses are not an impediment.
Consultant Hamilton stated that the existing uses are not an impediment to the number of units that are listed on the Housing Element. The methodology for this site does not assume that the entire site is wall-to-wall an apartment block but assumes it is a specific amount of the site and
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that the other amount of the site is reserved for other purposes that are not included with the units included in the housing inventory.
Mayor pro Tem Boles asked if the two School District sites are also part of this.
Consultant Hamilton stated packet page 1563 includes site level analysis sites No. 21 and 22, Oceana and Terra Nova. There are not structures that are newer than 1993; if there are structures, they are either no structure or a single story; the lot coverage is less than 50%; and no demolition of a structure would be required for the areas indicated in order to achieve this capacity. He stated that the size of the site is important. He stated that there is no improvement to land value due to the nature of a public facility. With that combined with rezoning, the finding would be that this would be likely to redevelop or there is not a reason why it would be unlikely to redevelop.
Mayor pro Tem Boles stated that the finding talks about existing uses and the School District has written letters they are not interested. She asked if that needs to be factored in.
Consultant Hamilton stated, like all sites owned as real property, we do not have a window into the mind of the individual or institution that makes that decision ultimately on what they will do with that land moving forward. The City has land use authority and that is a prerogative within the City that it can exercise to proactively establish a vision and plan and regulations around what may or may not be possible. That can influence the value and potential decisions of that institution or individual, in this case another public agency school district.
Councilmember Wright asks what happens if we change this document at all.
Community Development Director Updegrave stated changes would have to go back to Housing and Community Development for additional review and that would likely add a considerable amount of time. She thinks we are at a point where we want HCD to see that we are making progress and a good faith effort to get ourselves toward certification. It could delay the rezoning. The Housing Element revisions must be adopted prior to certification of the EIR and adoption of the targeted General Plan amendment and rezoning.
Asst. City Attorney Murphy reiterated that we would have to take any changes back to HCD because HCD did review and issue their letter based on what was sent to them. If there were revisions made, we would have to resubmit it to HCD, determine whether that affected their decisions, and then go through the process to see if we would get the same letter from HCD.
Councilmember Wright asked what the potential consequences would be.
Community Development Director Updegrave stated that the potential consequences are we will continue to not have local control over land use decisions and we would be vulnerable to more Builder’s Remedy applications. HCD could also use their enforcement authority which could include legal action referral to the Attorney General, fines, monetary penalties, and further loss of local control over certain things.
Asst. City Attorney Murphy added we could also be vulnerable to third party suits. In addition, without a certified Housing Element, there are certain grants that the City is not eligible for.
Mayor Beckmeyer opened public comments.
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Cindy Abbott, Pacifica, stated she is speaking as the Executive Director of Sanchez Art Center. She described how the Sanchez Art Center has been a vibrant part of our community and explained that the City purchased the property as a recreational and cultural center in 1998.
She asked Council to remove Site 23 from the Housing Element.
Sue Digre, Pacifica, emphasized the importance of the tourism revenue generated by the Sanchez Art Center. She also objected to the repercussions that the City may face as a result of not meeting RHNA numbers.
Andrew Leone, Pacifica, stated he is speaking as a founding member of the Sanchez Art Center and shared the history of the site from 1996 and spoke of the significance of keeping the Art Center in Pacifica.
Peter Loeb, Pacifica, stated he is a board member of the Art Center and a performer at the Mildred Owen Concert Hall and opposed eliminating the Art Center to satisfy RHNA numbers.
Mayor Beckmeyer closed public comments.
Councilmember Bier asked where it says we will be removing the Art Center.
Mayor Beckmeyer asked staff to explain how by-rights relate to having an approved Housing Element or not, in regard to local control.
Good City Consultant Aknin thought the key component on this site is that it is a publicly owned site. He stated that what is different on this site versus a private site is that we will still go through a Request for Proposal process if we put this out to the development community, and we would lay out the vision for this site, which would be retention of Art Center based on Councilmember and public feedback. He stated that is different than a privately owned site, a by-right site, where they can find a developer and the City would have limited discretion. The City has an extra step as a public agency when we own the land to go through a process where we develop that vision and take that to the community and have Council meetings where that is discussed. He stated that this site was also purposely under zoned. He stated that this was all designed from what we heard from the public, the Planning Commission, and Council to take into consideration retention of the Art Center while still being able to build out the number of units specified within the Housing Element.
Councilmember Espinosa asked we can have the units and have the Art Center stay there.
Consultant Aknin answered affirmatively. What the Council would have to do is lay out in detail in the RFP what the City’s vision is and we would put that out to the development community, maybe the affordable housing development community, and they would have to build around that. He stated that he worked in a different city where he was a Planning Director and they had a site the city-owned; the Council’s vision was to have senior affordable on top and a day care center on the bottom. They laid that in detail in RFP and that was the selection criteria in which they chose the developer; today, in that city, there is senior affordable housing with day care and the developers that did not propose to that did not make it through the screening criteria.
He stated that we will have that extra step of discretion.
Councilmember Wright stated that was the process we went through at the Planning Commission and why we zoned it for 40 units an acre. We were contemplating vertical addition and maintaining the same square footage for the Art Center and maintaining the performance
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space at the same time.
Mayor pro Tem Boles added the playing fields were carved out to be protected.
Councilmember Wright agreed.
Community Development Director Updegrave added that packet page 451 states that any redevelopment would incorporate the Art Center.
Councilmember Wright stated if we still have the right to condition these projects any way we want as we own the land.
Community Development Director Updegrave answered affirmatively.
Mayor pro Tem Boles asked what HCD is expecting of us and will they be forcing us to go through a Surplus Land Act process and what are the steps we are committing to doing.
Consultant Hamilton stated that what the Housing Element articulates are several proactive steps to move it forward into a process that could end up in an RFP and could get at development proposals for the vision we would articulate. He stated that, before we can do any of that, the first step would be to conduct a FIT study to work with either a developer or highly qualified consultant to understand the real development potential and understand what is realistic at a more granular level than what the Housing Element is doing for all of its sites. It is a stepping stone for building up enough information to decide that we want to put an RFP together and what are the options underneath the Surplus Land Act which has multiple different pathways we might follow. We want to make that decision based on the best possible evidence and analyze that in greater depth than what is currently on the table. He stated those would be some of the initial steps to analyze the development potential and what is realistic.
Mayor pro Tem Boles assumes we do not have to put it out for surplus land and then have to accept a low income housing developer who wants to build 300 units there.
Consultant Hamilton stated that there are steps we want to put in place moving inch-wise to make sure that, once we are committed, we are far more aligned with what our vision for that site would be before we lock ourselves in.
Mayor pro Tem Boles stated that it is a surplus site, not one of our core sites. She asked if there are still steps that we have to do or do we wait to see how other things are being done.
Consultant Hamilton stated that we are committing to doing those steps for this site.
Mayor pro Tem Boles reiterated that we are committing to doing those steps now.
Consultant Hamilton stated the first step will be a study to understand the development potential at this site.
Councilmember Wright stated, if it did need to become developed, we could still maintain the Art Center and the performance studio and there is sufficient space there for that.
Mayor Beckmeyer asked how much does a study like that cost.
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Consultant Aknin stated it is a considerable amount of money.
Mayor Beckmeyer assumed it would be funded by the City.
Consultant Aknin answered affirmatively.
Mayor Beckmeyer assumed the State is not funding that study or compelling us to do it.
Consultant Aknin stated that they are compelling us to do it but do not necessarily have a funding source. There are some grants out there, but not one that they are handing to the City as part of this.
City Manager Woodhouse added that this is why we have our Housing in Lieu Fund and our Housing Action Fund related to starting development of housing.
Mayor Beckmeyer referred to environmental considerations and stated there is a major creek that runs beside that site and we do not know what the buffers are, as that has never been studied. She asked what the limitations or obligations for a City with a site like this when none of that has been factored in.
Community Development Director Updegrave stated that all of that would have to be part of the study itself. She added that this site is already in that adopted Housing Element and this site has not been added to the inventory list.
Mayor Beckmeyer asked what the change is with regard to this amendment.
Community Development Director Updegrave stated that the changes with the amendment are clarifying that these sites will be rezoned in a certain manner, i.e. requiring minimum densities, allowing by right development for projects that meet certain affordability thresholds, etc. The site was already slated to be rezoned and the rezoning is even more intensive than what the amendment to the implementation calls for.
Asst. City Attorney Murphy added that the by-right approval language that was added included requirements in State law because all of the low income sites have to include the by-right language if at least 20% of the housing on the site is low-income. The City does have control over the site and the impacts of that are different than a privately owned site as the City controls what will ultimately be developed on the site and, through the FIT study and through the analysis that needs to be done before we would start thinking about any surplus land issues.
Councilmember Bier asked, outside of the Housing Element, what we can put in place to make sure that it is protected. She acknowledged it is outside the discussion at this time.
City Attorney Kenyon stated that this is a requirement that HCD is imposing on the City and, in terms of future City desires on how it wants to control that property, Council could take some action to show what its intent is, but that intent could be changed by any future Council.
Councilmember Wright mentioned the example of Sharp Park itself which is a deed-restricted piece of public property given to the City that is only allowable for certain uses. He thought there was some way they could do something similar.
Mayor pro Tem Boles did not know how much we can restrict it if we are saying it is for a certain
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amount of housing. We could say the buildings could somehow be protected and built over.
She stated that by-rights still bothers her as there is no public process for reviewing the project.
Community Development Director Updegrave stated that, on a publicly owned site, there is public process in the Surplus Lands Act, in the RFP, and other public processes.
Mayor pro Tem Boles assumed not to review the final design.
Asst. City Attorney Murphy stated that some of the policies in the Housing Element do provide that flexibility for the City to look at different options as the City proceeds with the FIT study. It includes language that, during the study, staff will present a menu of options for potential development to Council and Council has the ability to determine the process and would be able to determine the process to Notice of Availability and, if it did move forward, through any transfer of the property, the City would be able to exercise some control as to what was ultimately constructed.
Mayor pro Tem Boles stated, if we are rebuilding on a portion of the lot that has buildings, which is how the polygon is divided up now, they are going to have to tear down the buildings to build something new and higher. She asked who would be responsible for paying for that rebuild if we are rebuilding those spaces.
Councilmember Bier asked if it has to go on top of the building or somewhere else. She understands that there are playing fields but there are playing fields in other places too.
City Manager Woodhouse stated it would be part of the visioning process for the site for Council to establish what the vision is. He stated that, if on this site, the vision was Art Studios, Art Center space, performance center space, affordable housing, and playing fields, that is what would be envisioned, scoped out, and taken through the process.
Mayor Beckmeyer wondered if, in an RFP, the City could specify affordable housing for artists or specify for whom the affordable housing is built.
Consultant Aknin stated that we can specify, such as in the example of senior housing. We have discretion in these RFP processes, even architecture, which could become one of the screen and scoring criteria in which we choose the developer. He would have to look at artist units, but the City has discretion through an RFP process to lay out the vision.
City Attorney Kenyon reiterated that the most important things for Council to remember is that the Council controls the site and that provides so much more discretion on this particular site, more than any other site not controlled by the City. We will design what we want for that site. In the RFP, we control it and we can identify who we want to pay for it, such as the developer.
That process will go through negotiations at that time to determine how it pencils out for the developer, is there any assistance the City can provide for affordable housing, and that is all part of the process that happens once the RFP is issued and then discussions begin. The fact that Council has control over the site provides Council with a lot more discretion than any of the other sites that we are designating in the Housing Element.
Mayor pro Tem Boles stated that we had a fairly big buffer and asked if there was any chance that we could take it out.
Community Development Director Updegrave stated, if we remove any sites, it would need to
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go back to HCD for further review, as well as Planning Commission and back to Council.
Councilmember Espinosa asked, if we move forward, can we decide later on what we are going to put in there.
Community Development Director Updegrave answered affirmatively.
Councilmember Wright asked if what the real dollars of the affordable levels are.
Community Development Director Updegrave stated it is based on a percentage of the average median income.
Councilmember Wright stated that it is San Mateo County so that may be a high income.
Mayor pro Tem Boles stated HE-I-11 and HE-I-12 were both supposed to have actions started either early 2024 or now and she was curious what the dates are.
Consultant Hamilton stated he would answer the question on affordability. He stated that the 2024 numbers for low would be up to 80% of the area median income. The area of median income for the defined area here is $186,000 a year for a household of four. For 80% AMI, the upper income level for a household of four would be a household income level of $156,650.
Councilmember Wright thought all of Pacifica may be affordable.
Mayor pro Tem Boles stated HE-I-12 ties into the process for offering low income units for sale and we talked before that 801 Fassler has not had Certificates of Occupancy yet but are already listing units for sale. She asked what the policy is for advertising the low-income tenants and how to get the word out so it is a fair process.
Community Development Director Updegrave asked if her question is about 801 Fassler.
Mayor pro Tem Boles agreed, adding the programs for selling affordable units and marketing affordable units which is AG-I-12.
Mayor pro Tem Boles moved to extend the meeting to 12:30 am; seconded by Mayor Beckmeyer.
EXTEND MEETING TO 12:30 AM
RESULT: ADOPTED [UNANIMOUS]
MOVER: Christine Boles, Mayor pro Tem
SECONDER: Sue Beckmeyer, Mayor
AYES: Beckmeyer, Boles, Bier, Espinosa, Wright
Consultant Hamilton stated that there are several affirmative marketing strategies and one of the important ones is reaching out to families in schools identified as having low income households about opportunities that would be within some of the higher resource areas and it is facilitating some of the housing mobility in reaching out to families that could benefit from it greatly and it is an important part of this program.
Councilmember Espinosa asked if it is going to be specifically for Pacificans.
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Consultant Hamilton agreed, adding that there are other outreach efforts for that, but there is a particular one in here about trying to foster economic mobility as well.
Mayor pro Tem Boles stated, in terms of timeline, we are not looking at anything before June or next year for these policies.
Consultant Hamilton stated that there is an ambitious slate of programs that will require capacity that the City has already committed to with the January Housing Element adoption and there are additional implementation actions in this draft that will require even more capacity.
Councilmember Wright moved to approve according to staff’s recommendations as amended; seconded by Mayor Beckmeyer.
RESULT: ADOPTED AS AMENDED [UNANIMOUS]
MOVER: Greg Wright, Councilmember
SECONDER: Sue Beckmeyer, Mayor
AYES: Beckmeyer, Boles, Bier, Espinosa, Wright
Mayor pro Tem Boles exited the meeting at approximately 12:00 a.m.
8. Public Meeting to Receive Testimony Regarding Establishment of the '94 Business Improvement District (BID), the Pacifica Tourism Marketing District (PTMD) PROPOSED ACTION: Receive public testimony regarding the proposed establishment of the ’94 Business Improvement District (BID), the Pacifica Tourism Management District (PTMD).
Asst. City Manager Carter presented the staff report.
Mayor Beckmeyer opened public comments.
Sue Digre, Pacifica, shared her thoughts on looking for encouraging tourism as a destination in Pacifica for revenue.
Mayor Beckmeyer closed public comments. She stated that there is no action required and Council will be hearing from Asst. City Manager Carter on April 28 for the public hearing.
RESULT: NO VOTE REQUIRED
9. Funding for the Temporary Safe Parking Program in Partnership with the Pacifica Resource Center
PROPOSED ACTION: Receive an update about the City of Pacifica and Pacifica Resource Center’s Temporary Safe Parking Program and consider extending Temporary Safe Parking Program and approving use of $204,000 from the City’s Housing Action Fund toward expansion and continuation of the program by renting and utilizing spaces in the San Francisco RV (SFRV) Resort in Pacifica.
Note: Item #9 was moved to the beginning of Consideration items and discussed prior to Agenda Item #6.
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PRC Executive Director Anita Rees began the staff report.
Councilmember Bier asked about the Temporary Safe Parking Program’s (TSPP) experiences with harassment and how the collaboration with law enforcement with trauma-informed policing.
Executive Director Rees described the different kinds of harassment, i.e. honking, vandalization, graffiti, etc. On Lundy, one thing PRC did in partnership with PW and PD was install a solar light and add patrols, which made the residents staying there feel more secure. They were also able to follow up with perpetrators due to video camera footage. She stated that there was increased patrol in that area and a decline for a period of time, followed by another uptick. As a result, PRC left their outreach van with a camera there to monitor activity. Part of the difficulty is that the owners did not always tell them that it happened and they wanted to take the reporting off their plate. The other thing that happened was that people were being harassed on other parts of City streets. She stated that the clients did not feel comfortable sharing. Only when PD responded to something else related were they told about what had happened, but there was no way of finding out who had done anything like that. She stated that it has ebbed and flowed, and they have not gotten a lot of complaints for a while.
Mayor pro Tem Boles asked about statistics including people in a shelter or a navigation center, and what are the percentages in the county.
Executive Director Rees stated she can find out. She felt that the amount of people moving into housing is close to 20%. She stated that one of the biggest challenges around what happens after they leave shelter is that there is no funding for a “leaver study” to follow up with those who have left. Thus, the assumption is that, if they leave shelter and are in housing, and they do not get back into the shelter system, it means they are still housed. That is not always accurate, especially if they moved out of county. She stated that it is hard to find out unless they are connected. She stated one of the advantages of PRC being a core agency, and the relationships we have with property managers in town, is that they can get people into places that are local to Pacifica and stay connected which is easier for them to know if they are still housed. They do not have the resources to proactively check in with them if they are not already connecting with them past six months.
Mayor pro Tem Boles asked if there have been issues or complaints on Oceana, Milagra, etc. in the last six months.
Executive Director Rees stated those people have not shared anything with them, but staff in the past had been there for a move, repairs, or check-ins and heard some honking. She thinks it was less of an issue there and it never got to the point at which there was vandalism.
Mayor pro Tem Boles asked how that PD partnership is working out.
Executive Director Rees stated that there have been challenges with the more recent CSO and the relationship with those who are in the program, but they work through it and continue to try to educate.
City Manager Woodhouse completed the staff report.
Mayor Beckmeyer opened public comments.
Suzanne Moore, Pacifica, spoke in support of the PRC and their TSPP work and described the
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benefits of moving people into permanent housing. She advocated for extending the program.
Maryann Carnoch, Pacifica, asked about the locations of the RVs in the TSPP in light of the additional option of the San Francisco RV Park. She described traffic difficulties with RVs parked on streets. She also asked about the timeline for moving the TSPP participants into permanent housing and for addressing the increased number of RVs in Pacifica.
John James, Pacifica, shared his experience with government housing and spoke in support of PRC and their TSPP work. He advocated for extending the program.
Elizabeth Bredall, Pacifica, spoke in support of PRC and their TSPP work and advocated for extending the program.
Gloria Stofan, Pacifica, spoke in support of PRC and their TSPP work and advocated for extending the program. She also stated funding for case management is necessary.
Ellen Hage, Pacifica, spoke in support of PRC and their TSPP work and advocated for extending the program and funding the case management.
Clif Lawrence, Pacifica, stated many community members were in need of compassion and stated the case management was what made this program work.
Tygarjas Bigstyck, Pacifica, emphasized the importance of feeling safe in the community and stated that we have the moral obligation to continue the program in the RV Park. He advocated for extending the program.
Sue Digre, Pacifica, spoke in support of PRC and their TSPP work and was impressed and grateful for their presence in our community.
Marj Davis, Pacifica, emphasized that the case management was at the core of the program and advocated for extending the program and funding the case management.
Julianne Rokosky, El Granada, hoped a program like TSPP could be implemented throughout the coastside, which had higher rates of homelessness and lower availability of beds and housing. She advocated for extending the program and funding the case management.
Mayor Beckmeyer closed public comments.
Mayor pro Tem Boles asked about how the street spaces will work with the RV Park spaces.
Executive Director Rees stated the RV Park requires you to leave at least every four months or less, and they came up with a strategy that uses ten spaced inside and five spaces outside and they would cycle in. She stated that the RVs outside would stay for a month and they would cycle in with five cycling out and stay on Milagra and Oceana for two months and then another group would cycle out. After those first two rounds, once they were in the RV Park, they would stay for three full months, but those outside would move one or two months. Thus, everyone would have a one-month (four-week), two-month (eight-week), and three-month (thirteen-week) stay. Thus, they needed the outside spaces, as they cannot stay longer than four months.
Mayor pro Tem Boles asked how many people are on the waitlist now for the program.
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Executive Director Rees stated that they currently have two households on the waitlist and others that they continue to reach out to. They have been doing an unofficial count of people in motorhomes in Pacifica that they believe are sleeping in them (about 25 to 30 on any given day). One of the things they have been trying to do is connect with those people. There are varying degrees of interest in participating in the program, but having an extension and using the RV Park, as well as staying in one location for a longer period of time, would be a significant change in the quality of their lives and may be more open to it. The work happening along Esplanade may mean those people will be displaced and they may be more willing and interested in participating in the program. She imagines a percentage of them will leave the area and others who want to stay in the area will want to participate.
Mayor pro Tem Boles stated that we have the money for the spaces (about $1,700 monthly; $208,000 yearly) and the City used to contribute $120,000 a year.
Executive Director Rees agreed that is correct from the original TSPP.
Mayor pro Tem Boles stated that there is another $88,000 that they are looking for funding. She stated that the County is still trying to figure out their budget and are not ready to commit.
City Manager Woodhouse stated that, with the City’s three-year commitment, we used American Rescue Plan Act (ARPA) funding for the first three years of $120,000 per year and that ends in June. The alternative question for Council is if they wanted to contribute funding towards the operation of the program. He stated there is not an ongoing source of the $120,000.
Mayor pro Tem Boles agreed with public comments that the services are as important as the parking spaces and was trying to understand where that money will come from, when they will know if they will have that money, and otherwise where would it come from.
City Manager Woodhouse stated that one of the strategies is that Council is taking a significant step to commit a significant amount of money towards this program ($204,000) and that is a catalyst for the conversation to bring other collaborators, like the County or potentially longerterm grant funding into the program.
Mayor pro Tem Boles stated asked, if we do not get it, would staff come back to Council and would we sign the lease for these spaces before having funds appropriated for the services.
City Manager Woodhouse stated that another work item is to talk and negotiate with SF RV and talk about timeline, but the ideal scenario would be that we bring together all the funding for the case work support and the spaces for at least a six-month period to initiate that.
Councilmember Wright asked, if we commit to six months of funding, would it preclude us from seeking additional funds to support this program and offset the case worker services.
City Manager Woodhouse reiterated, if we commit the $204,000 for the spaces plus six months of operating costs of $104,000, whether that would preclude us from seeking additional funding.
Councilmember Wright clarified from seeking reimbursement from the county.
City Manager Woodhouse stated that, once money is committed, you are not going to get someone to give you money to reimburse or displace the money already committed. He
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thought, at that point, it would be a stronger financial commitment from Council to our potential collaborators, such as the County, to say we are funding this operationally case support for six months and rental spaces for a year and we want them to at least add on to that for the additional six months of case support, if not beyond.
Councilmember Wright asked if that six-month period is what staff thinks is sufficient in order to seek and secure that additional funding to keep the program fully funded through the one year.
City Manager Woodhouse stated that allows more breathing room, although one of the timelines, in conversation with the County, would be on a fiscal year basis so we would be talking with them and trying to secure their participation during the spring budget season but at least six months would allow more.
Executive Director Rees stated that she has spoken with the County Executive’s Office about this idea, especially with the number of unhoused along Pacifica and the coast. There is a significant need in San Mateo County and, two years ago, Half Moon Bay received funding to create a safe parking program which had everything put together, but the location fell through.
The County recognized a need to have something like that on the coast, but there was no location. Our City and Council can present this idea to the County and say we are in support of something like this and want to be part of the solution, and we have more chance of either getting it incorporated into the County’s continuum of care as some point in the future or at least initial funding to see how it goes. She does not know of any other safe parking program that has an RV Park as a partner. She feels that, based on their experience with the RV Park, that is a great opportunity to test and it may be a consideration for the County. At the same time, there are concerns, at the federal level, about funding and they are concerned about using Measure K funds for anything outside of core needs. She thinks the County is interested in seeing our outcomes and what we might be able to do and they might be willing, similar to the first round, to contribute $400,000 in ARPA funds to support this program. To ask them to do something similar with discretionary funds may be within the realm of possibility. There is also potential to get funding from the Department of Housing and there are other foundations that support this work.
Councilmember Wright asked, if we gave six months funding, would there be nothing to stop staff from bringing this issue back to Council in the event that we could not secure any additional funding.
City Manager Woodhouse answered affirmatively.
Councilmember Bier stated that, when TSPP was first into play, the relationship with SF RV Park was not there and PRC and the City worked hard over the past few years to create this relationship with the SF RV Park. She stated that Half Moon Bay had an outside agency and it went out to an RFP and that is how the program is run. She knows that the capacity of PRC is not necessarily to run this program forever. She pointed out that it is going to take time for Council to talk to our County representatives of the county and six months is not enough. She asked City Manager Woodhouse how much money is in the Housing Fund.
City Manager Woodhouse stated the Housing Action Fund’s current balance is approximately $2.9 million.
Councilmember Bier thought we should take the full amount of the money out of the Housing Fund to pay for the spaces and the case management for a year to give Council, PRC and the
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City enough time to get out there and talk to our representatives to get buy-in so eventually there can be an RFP that goes out to an outside agency to run the program.
City Manager Woodhouse added, for clarification, that the one-year full cost would be $204,000 for the rental and $208,000 for the case work support.
Executive Director Rees stated it would be for 15 families and, as they transition, there will be new people coming in.
City Manager Woodhouse concluded $412,000. The minimum continuation of $40,000 is if we were not doing the case management, which is included in the $208,000.
Councilmember Espinosa thanked Executive Director Rees for what she does. She stated she was a board member of PRC and she is very happy to see what she is doing in helping the community as well as the unhoused.
Mayor Beckmeyer stated she is impressed with the work that has gone on to date and appreciated the partnership of public safety in this process. She stated that will also be an ongoing cost and investment for the City. She asked City Manager about the waste dump station and the dumpsters we are currently utilizing.
City Manager Woodhouse and Executive Director Rees stated that the black and gray water disposal is provided by Recology. City Manager Woodhouse stated it is an operational detail that we need to talk about with SF RV, as the RVs at SF RV have hookups and, in a brief conversation on Friday morning with SF RV manager, he mentioned providing that resource for the others. He stated that there could be an extra cost to continue that program if we cannot run it all through SF RV.
Mayor Beckmeyer thought it sounds like there may be an extra cost around that.
Councilmember Espinosa asked, even though we are funding for a year, if we can also get any San Mateo County official to help us to do another year or so.
Mayor Beckmeyer stated that is what Councilmember Bier is proposing, i.e., we need a solid year to buy the time to make those connections to get that story told approaching foundations and they need to see that kind of annual investment. She supported Councilmember Bier’s suggestion of $412,000 from the Housing Action Fund (Fund 21).
Councilmember Wright asked how that time horizon lines up, in the event we are able to secure either funding through the State or the County, when they start their calendar.
City Manager Woodhouse stated, since this funding would start at the end of June, beginning of July, it would line up nicely for a fiscal year for the County. He was not sure about the grant cycles. He thought we would want to try to work with the County to get an obligation sooner so we know what will happen with the program sooner than later and continuing it.
Councilmember Wright stated he was trying to get our cycles lined up in order to give even more pressure to put on.
City Manager Woodhouse agreed, adding that the year-long lines up better as then it is on their fiscal year.
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Attachment: Attachment A: Minutes of 3-24-2025 Special and Regular City Council Meeting (5917 : Approval of Minutes) City Council Regular Meeting 29 March 24, 2025
Mayor pro Tem Boles is happy to approve the money for the spots for six months but wondered if we grant this money then they may be less likely to give it to us. She thought coming back to Council in six months if we do not get it so we can approve that then. She stated that we have not had a Housing Fund. She knows we have two interested non-profit developers that are looking to build extremely low-income housing, adding that is want we need in the long term.
She knows this is something that we can help people now and is important, and she completely agrees what we need to do. However, the more money we can get from the County, then we can save our money for building things in Pacifica.
Mayor Beckmeyer deferred to City Manager and Executive Director Rees on their experience with funding with the County. She thought we are not funding housing from $2 million; it is our relationship with the County that helps us leverage our dollars with what we are doing here and leverage their dollars and that is what ends up paying for the affordable housing. She does not know if we can make a partnership with a six-month program.
Councilmember Bier added that a year is going to allow everyone to plan better. She stated that it shows our commitment.
Mayor pro Tem Boles understood and was happy to defer to her. She stated that the other question we have not finalized is where the spaces are and whether we are keeping some on Lundy or not and how many we are putting in the RV Park.
Councilmember Bier stated no to Lundy.
Mayor pro Tem Boles stated that this is putting all of the spaces in her district. She stated that her neighbors have been good with that on the other spaces, but there are issues with the RVs in the neighborhood that are not being addressed. She thinks there might be need for more services in their area if all of this is being put in this part of town.
Mayor Beckmeyer thought it is completely separate and not before Council this evening.
Mayor pro Tem Boles stated that she was asking about police presence and PD does not typically patrol the area and it is also part of a coastal trail where the community walks back and forth. She wants to make sure we are sensitive if there are issues that come up.
Councilmember Bier stated that those are voting districts and that Council’s district is the City and the spaces are not being placed in only Mayor pro Tem Boles’ district.
Mayor pro Tem Boles stated that they are because Pedro Point has appealed those spaces and Lundy has been bad neighbors.
Councilmember Bier asked if she would want to go back to Lundy if she did not have to.
Mayor pro Tem Boles stated that she does not want to, as she wants people to be in safe places, and she is saying that the impacts will be greater in her district and there might be some need for extra funding and she wants to be able to bring that back if we need to.
Councilmember Bier suggested that Council work on that with County partners.
Mayor pro Tem Boles asked how many spaces are we paying for.
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Attachment: Attachment A: Minutes of 3-24-2025 Special and Regular City Council Meeting (5917 : Approval of Minutes) City Council Regular Meeting 30 March 24, 2025
Mayor Beckmeyer stated packet page 1638 says ten counting the one currently being used, thus an additional nine spaces in SF RV.
City Manager Woodhouse thinks PRC and the City need to talk about the on-street spaces.
The core recommendation is continuing the five spaces, Oceana and Milagra, and not the Lundy spaces for the reasons cited. One of the conversations was, if we have capacity in a waitlist, if the Lundy spaces exist and could potentially be used again.
Mayor pro Tem Boles asked, if we do not have 15 people participating, are we still paying that rent or are we putting them all there and take the ones off the street.
City Manager Woodhouse added that more conversations and negotiations need to occur with the SF RV Park and that would be one of the parameters he wanted to talk to them about. He wanted to be mindful that they are a private business going out on a limb to commit to this and what they see is revenue certainty and assistance for the program.
Mayor Beckmeyer understood that it is a year and ten spaces in the SF RV Park.
Councilmember Bier moved to take $412,000 from the Housing Action Fund to fund the ten spaces in the SF RV Park, case work operations, and continuation of the five spots on Milagra and Oceana; seconded by Councilmember Wright.
City Manager Woodhouse stated, for clarification of motion, the $412,000 would cover rental of the ten spaces and a year of PRC operation case work support for the program as it is currently operated but for more spaces.
RESULT: ADOPTED AS AMENDED [UNANIMOUS]
MOVER: Mary Bier, Councilmember
SECONDER: Greg Wright, Councilmember
AYES: Beckmeyer, Boles, Bier, Espinosa, Wright
Mayor Beckmeyer called a break and then reconvened the meeting.
10. Mid-year budget review and adoption of a resolution to adjust the Fiscal Year 2024-25 budget.
PROPOSED ACTION: Adopt a resolution authorizing the mid-year FY 2024-25 Operating and Capital Budget adjustments.
Asst. City Manager Carter and Finance & Administrative Services Director Gómez presented the staff report.
Councilmember Espinosa asked if it is possible for staff to provide the budget ahead of time.
Director Gómez stated that staff will take Council through the proposed budget more than once throughout the cycle.
Asst. City Manager Carter added the budget calendar will be shared at the next study session.
There were no public comments.
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Attachment: Attachment A: Minutes of 3-24-2025 Special and Regular City Council Meeting (5917 : Approval of Minutes) City Council Regular Meeting 31 March 24, 2025
Councilmember Bier moved to adopt a resolution authorizing the Mid-year FY 2024-25 Operating and Capital budget Adjustments; seconded by Mayor Beckmeyer.
RESULT: ADOPTED [4-0]
MOVER: Mary Bier, Councilmember
SECONDER: Sue Beckmeyer, Mayor
AYES: Beckmeyer, Bier, Espinosa, Wright
ABSENT: Boles
ADJOURN
Mayor Beckmeyer adjourned the meeting at 12:15 a.m.
Transcribed by Barbara Medina, Public Meeting Stenographer.
Respectfully Submitted,
Sarah Coffey, City Clerk
__________________________
Sue Beckmeyer, Mayor
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Attachment: Attachment A: Minutes of 3-24-2025 Special and Regular City Council Meeting (5917 : Approval of Minutes)
CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
Quarterly Financial Reports for the quarter ending March 31, 2025 RECOMMENDED ACTION:
Review and accept the Quarterly Financial Report for the quarter ending March 31, 2025.
STAFF CONTACT:
Marisol Gómez, Director of Finance and Administrative Services (650) 501-0257
[email protected]
Lucy Xie, Deputy Finance Director
(650) 501-6014
[email protected]
BACKGROUND/DISCUSSION:
Fiscal sustainability remains one of the City Council's strategic priorities, which includes planning for and implementing long-term financial health and stability. A key component of this goal includes preparing a quarterly financial report that would provide readers with an executive summary of the City’s current economic conditions related to the annual operating budget.
In FY 2021-22 staff implemented a new financial reporting practice on a quarterly basis to enhance accountability and transparency in managing public funds. This work is especially meaningful as we continue monitoring the post COVID-19 pandemic recovery of the local economy and the City’s financial health.
On June 24, 2024, the City Council adopted the FY2024-2025 Budget.
In September 2023, the Finance Department began implementing a new ERP system for the City’s Financial and Human Resource systems while simultaneously managing daily operations.
The Financial System successfully went live on July 1, 2024. Since then, staff has been actively engaged in system training, addressing system adjustments, and completing conversion entries from the GEMS legacy system to the new financial system.
Additionally, Finance has been conducting the year-end audit, which went to Council while also navigating staffing challenges, including onboarding new employees. With these competing priorities, the preparation of the first quarter financial report was delayed. However, the Finance Department worked diligently to bring the first two quarters for Council’s review on March 10, 2025.
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April 28, 2025
The FY 2024-25 Mid-Year review went to Council on March 10, 2025, for which Council approved all amendments put forth. Combining previously approved adjustments and mid-year adjustments, this amounted to a $171,367 net increase to General Fund revenues and a $755,000 net increase to General Fund expenditures. The original FY 2024-25 Adopted Budget will now be referenced as the FY 2024-25 Amended Budget, in order to incorporate the MidYear amendments.
This 3Q financial report is to report all financial activities recorded in our Financial System from July 1, 2024 to March 31, 2025.
The Quarterly Financial Reports summarize the City’s General Fund and is not meant to be inclusive of all finance and accounting transactions. This report intends to provide the Council and the public with a broad overview of the City’s operations and fiscal condition. It provides an update on the financial status of the City’s General Fund by outlining the revenues and expenditures for the first nine months of the fiscal year FY2025.
The General Fund is the City’s primary operating fund and is used to account for day-to-day activities. It receives unrestricted revenues and provides the City’s general administrative services, law enforcement, fire, public works, parks, beaches and recreation, and community development-related activities such as planning, building, and engineering. Revenue sources include but are not limited to Property Tax, Sales Tax, Transient Occupancy Tax (TOT), business registration, and current fees for services such as parking charges, engineering, planning, building permit fees, and recreation services.
It is worth mentioning that this report is prepared on a cash basis, meaning only revenues received by March 31st are reflected in the analysis. Similarly, expenditures are recorded when payments are made, following the cash basis method of accounting.
Summary of the Q3 Financial Report
With the completion of the Third Quarter, General Fund Revenues & Transfers In were $34.7 million (72% of budget), and Expenditures & Transfers Out were $32.9 million (69% of budget).
Attachment 1 provides additional information on the City’s financial condition as of the end of the Third Quarter of the FY 2024-25.
Overall, staff is pleased to report that the FY 2024-25 Budget is on track with revenues and expenditures performing as expected, after incorporating the Council approved Mid-Year amendments.
However, it is important to note again that these figures are preliminary. Additional entries will be made as part of the routine review and analysis process, particularly during the mid-year budget review (which already occurred) as well as the fiscal year-end closing for audit purposes, which may result in adjustments to these numbers.
ALTERNATIVE ACTION:
There is no reasonable alternative to this informational item, as not accepting the Quarter Financial Reports will not change the City’s financial condition at the end of each quarter.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
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April 28, 2025
This item furthers the City’s efforts toward Enhance Organizational and Fiscal Stability.
FISCAL IMPACT:
There is no fiscal impact associated with the Council’s acceptance of these reports.
ORIGINATED BY:
Finance Department
ATTACHMENT LIST:
Q3 FY2024-25 Quarterly Financial Report - Attachment 1 (PDF) 2 Packet Pg. 41
City of Pacifica
Fiscal Year 2024‐25
ThirdQuarter Financial Report
1 OVERVIEW
This Third Quarterly Financial Report is an analysis of the unaudited financial status of the City’s General Fund from July 1, 2024 through March 31, 2025. The City of Pacifica has completed the Third Quarter of the Fiscal Year 2024‐25. The Third Quarter Financial Report will summarize the City’s General Fund and is not meant to be inclusive of all finance and accounting transactions. This report intends to provide the Council and the public with a broad overview of the City’s fiscal condition, as the General Fund is the City’s primary operating fund and is used to account for most operational activities. Information presented in this report is unaudited, and additional adjustments may occur during year-end process.
GENERAL FUND
General Fund Financial Condition: This first table provides a snapshot of General Fund Expenditures by department for Q3 FY2023-24 and Q3 FY2024-25, comparing the quarter-over-quarter changes and the percentage of the FY2024- 25 Amended Budget spent as of Q3.
With nine months data in, General Fund Revenues & Transfers In are at 72% of the FY2024-25 Budget. General Fund Expenditures & Transfers Out are at 69% of projections. Revenues exceeded expenditures by $1,843,799, which is good news for the moment. This quarter’s revenue showed a 12% increase compared to the prior year’s third quarter revenues. This quarter’s expenditures showed a 12% increase compared to the prior year’s Third quarter.
Table 1: General Fund Quarterly Summary as of March 31, 2025
The General Fund Balance as of March 31, 2025, is estimated to be $20,584,249, based on the audited General Fund balance of $18,740,450 as of the end of FY 2023-24 and factoring in year-to-date net change of $1,843,799 as of the end of the third quarter.
Expenditures Highlights: Table 2 presents General Fund Expenditures by Department for Quarter 3 (Q3) of Fiscal Year (FY) 2023-24 and FY 2024-25, alongside the amended budget for FY 2024-25. It also includes the percentage change in expenditures between Q3 of both fiscal years and the percentage of the budget spent in Q3 of FY 2024-25.
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Attachment: Q3 FY2024-25 Quarterly Financial Report - Attachment 1 (5919 : FY 2024-25 Q3 Financial Reports) City of Pacifica
Fiscal Year 2024‐25
ThirdQuarter Financial Report
2 Table 2: General Fund Quarterly Expenditures as of March 31, 2025
General Fund expenditures increased slightly from $31.06 M in Q3 FY23-24 to $32.87M in Q3 FY24-25. At the end of March 31, 2025, 69% of the Amended Budget has been spentsuggesting that departments are on track or slightly under budget for the year except Police Department and Fire Department. At the end of the Third Quarter, there is an increase of 6% quarter over quarter for expenditures and transfer out.
General government is about 53% of the budget at Q3 review. This is mostly due to lower expenditures from the legal bils and recruitment expense that haven’t been billed or paid.
Police department saw a 9% increase quarter to quarter, spending at 77% of the budget, which is moderately high at benchmark of 75% but manageable.
Fire Department is 85% of the budget, a little more than what is budgeted for. It has the second highest spending growth at 16% quarter over quarter. The reason being overtime charged for the OES services unbudgeded for about $481K during the first half of the year that will be reimbursed later.
Community Development has the largest spending growth of 24% among all departments. This is partly due to catching up in processing and reconciling the cost-reimbursable expenses, such as legal bills are handled in a different way than previously. As for budget, we are working with the department to develop a mechanism to better budget for the revenue and expenditures regarding the cost reimbursable projects so that we don’t over budget both of them.
Public Works, PB&R and Non-Department are below the 75% mark, suggesting that the budget is on track and potentially under budget for the year.
Transfer Out should be right on target of 75% as we normally do four quarterly installments based on original budget.
In Mid-Year Review, the general fund was asked to provide $352K funding to Motor Pool at the March 10th Council Meeting, which was completed. Hence a 79% of the budget for the transfer out at Q3 review, which is slightly more than the benchmark.
Revenues Highlights: Table 3 outlines General Fund Revenues by Type for Q3 FY2023-24 and Q3 FY2024-25,
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Attachment: Q3 FY2024-25 Quarterly Financial Report - Attachment 1 (5919 : FY 2024-25 Q3 Financial Reports) City of Pacifica
Fiscal Year 2024‐25
ThirdQuarter Financial Report
3 alongside the FY2024-25 Amended Budget and percentage changes.
Table 3: General Fund Quarterly Revenues as of March 31, 2025
The following is a summary of revenues as of the end of the 3rd Quarter:
General Fund revenues (including transfers in) increased from $30.92M in Q3 FY23-24 to $34.72M in Q3 FY24-25, a 12% increase quarter over quarter. 72% of the Amended Budget has been collected, indicating strong performance.
Property Tax: Property Tax is the City’s largest revenue source. The first installment of the Property Tax payment was remitted to the City by the County of San Mateo on December 14, 2024. The second installment of the property tax payment is expected in April. We saw a 1% increase for property tax revenue in quarter over quarter comparison.
Sales Tax and Measure Y: As of Marchr 31, 2025, the City has received respectively 58% and 61% of the budgeted Sales and Measure Y sales Tax revenues. There is a two-month lag on the receipt of sales tax revenues, so the receipts only represent seven months of allocation, which is consistent with the prior year and appears to be on track or slightly below the budget, indicating a potential weak consumer spending. The Amended Budget included some reductions to this revenue category given current economic trends.
Transient Occupancy Taxes (TOT): TOT revenue saw a 6% increase quarter over quarter. TOT revenues are remitted approximately 30 days after the end of each month, and revenues are not accrued at quarter‐end (as they are at the end of the fiscal year). The Third Quarter reflects the TOT receipts for the months of July through February. Economydriven revenues like TOT are very sensitive to the market and economy. The receipt of 74% of budget show the economy is good, and the tourism in the first half of the year was doing well. The Third quarter’s TOT performance is certainly a positive trend, demonstrating potentially the full recovery of the hospitality industry and continuing efforts in identifying short-term rentals and bringing them to compliance.
Other Taxes: These include five categories: Franchise tax, Business License, Utility Users Tax, Vehicle License Fee, and
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Attachment: Q3 FY2024-25 Quarterly Financial Report - Attachment 1 (5919 : FY 2024-25 Q3 Financial Reports) City of Pacifica
Fiscal Year 2024‐25
ThirdQuarter Financial Report
4 Cannabis Operations Tax. Payments for most of these taxes are remitted 30 days after the end of the month. 71% of the Budget has been received as of March 31, 2025.
Franchise Tax seems to see a decline of 18% quarter over quarter and needs to be monitored as only 42% of current budet is collected, maybe signal compliance issues. However we do know that the largest franchisee payer, PG&E, typically remits in the middle of April on a yearly basis, so 42% collected as of the Third quarter is expected.
Business License Tax is at 89% collected this quarter because our annual business license renewal is set for November 1 each year and was already recorded in the Third quarter financial. These revenues are projected to meet the budget by the end of the year, as additional revenues will be collected from new businesses and delinquent payments.
Utility Users Tax is the second largest revenue source in the Other Taxes category with a budget of $2.8 million and is only 89% collected as of March 31, 2024. Considering the one-month lag in filing and remittance from utility companies, and third quarter will likely see more remittance considering the high usage in the winter time, we are confident of meeting our budget for FY2025.
Vehicle License Fee (VLF) in Lieu (property tax in lieu of VLF) is the largest in the other tax catgory. It includes revenue includes a one-time backfill payment of $1,450,027 from the state for the VLF shortfall in FY 22-23 and 50% of the FY2024-2025 distribution of $1,635,643. The next remittance is likely to happen around August 2025 for the 45% of the FY2024-2025 which will be accrued in the Q4 financial.
Cannabis Tax is down by 17% quarter over quarter comparison and has only reached 57% of the budget. It could potentially mean market saturation or changes in customer preferences. We will monitor the five cannabis business providers and do an audit of their operation and filings with the City, verifying whether the accounts receivable bills were paid in time. The Amended Budget included some reductions to this revenue category given current economic trends.
Excess ERAF: (Excess Educational Revenue Augmentation Fund). The FY2024-25 General Fund Budget only included $145,000 to fund the community grant program to local non-profit organizations as previously directed by the Council.
It was recorded when the first payment of ERAF came in January. The remainder of the FY2024-25 Excess ERAF Allocation is shared equally in the Disaster Accounting and Housing Funds as per Council approval for respective uses.
Grants: These include police grants, fire OES reimbursements, as well as PBR child care and senior grants. The grant revenues showed a 126% collection, mostly because of prior years disbursements from FY2022 and FY2023 for the child care program in the amount of $1,455,620 after filing the child care audit reports with the State.
Investment Earnings: Investment earnings such as interest income continue to be doing well in the current economy, with favorable interest rate returns on bank deposits strategically managed by staff. It has already 105% budget.
However, we will normally do a year end interest allocation for other funds to give them a fair share of the earnings from the pooled cash investment. That will lead to a reduction of General Fund interest revenue in Quarter 4 but the citywide interest revenue will be the same.
Department/Programs: These include building permits, engineering and planning fees, fees related to Parks, Beaches & Recreation programs, and rentals, and the first two quarterly transfer-ins from other funds for cost recovery needs.
As of March 31, 2025, the City received 78% of the budget, which is right on budget, with few late payments expected to be collected in the next quarter, and the same level of activity is projected through the rest of the year. Overall, permits and planning fees tend to fluctuate based on the timing of projects.
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Attachment: Q3 FY2024-25 Quarterly Financial Report - Attachment 1 (5919 : FY 2024-25 Q3 Financial Reports) City of Pacifica
Fiscal Year 2024‐25
ThirdQuarter Financial Report
5 SUMMARY
Overall, staff is pleased to report that the FY2024-25 budget is on track, with revenues and expenditures performing as expected and, in certain cases, a little better than expected, leading to a positive estimated net change of $1,843,799. The City’s total General Fund expenditures are at 69% of the budget at the end of the third quarter, and the City’s total General Fund revenues are at 72% of the budget at the end of the third quarter.
It is important to note that the figures presented in this report are preliminary, as additional booking entries may be recorded throughout the remainder of the fiscal year and during year-end closing. Nonetheless, it is encouraging to observe that the budget remains on track as of the end of the third quarter.
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Attachment: Q3 FY2024-25 Quarterly Financial Report - Attachment 1 (5919 : FY 2024-25 Q3 Financial Reports)
CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
Quarterly Treasurer’s Reports for the quarter ending March 31, 2025 RECOMMENDED ACTION:
Review and accept the Quarterly Treasurer’s Report for the quarter ending March 31, 2025.
STAFF CONTACT:
Marisol Gómez, Director of Finance and Administrative Services (650) 501-0257
[email protected]
Lucy Xie, Deputy Finance Director
(650) 501-6014
[email protected]
BACKGROUND/DISCUSSION:
The City Council adopted Administrative Policy 39 - Investment Policy to reflect current law and best practices in accordance with Government Code Section 53600 et seq. The policy provides guidelines for prudent investments and efficient cash management and requires the City to provide the governing body a report regarding the City’s investment activities on a quarterly basis to ensure “compliance” with the statement of investment policy.
The investment policies and practices of the City of Pacifica are strictly based on state law and prudent money management. The investment of funds for the City is directed to the goals of safety, liquidity, and yield while meeting the cash flow needs of the City through prudent investment of unexpended cash.
All funds are invested in accordance with the City’s Investment Policy and the authority governing investments set forth in the California Government Code, Sections 53601 through 53659. The investment policy for bond proceeds is contained in the relevant bond documents approved by the City Council at the time of the issuance of the debt.
As shown in the Treasurer’s Report (Attachment 1), the City holds various invesments in external investment pools and fiscal agent accounts and they are listed at par value, cost, as well as their fair value. Par value represents the original issue amount for securities or investments purchased. There were no securities or investments that are held by the City where they were purchased at a discount or premium so the par value is equal to the book value. The fair market value presented in the report shows the current market value of the investment as of March 31, 2025 accordingly. In accordance with GASB 31, the State provides a factor that can be multiplied by the City’s share of the LAIF pool to determine the market value each quarter. Other than LAIF, the fair market value of all other investments are equal to the book and par value.
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April 28, 2025
Quarter 3 Treasurer’s Report
The City’s cash and investment portfolio, at fair market value, as of March 31, 2025, is $64,793,754, of which $6,5,94,062 is in the Tri Counties Bank various accounts, and $3,445 in Petty Cash held by various departments. $28,003,993 is placed with the State Controller’s Local Agency Investment Fund (LAIF), $2,411,075 is in Roy Davies Trust, $389,571 is in the PARS Trust, $145,545 is placed in Bank of New York (BNY Mellon), and $27,246,063 is placed with US Bank. Although operating checking accounts are not typical investment accounts, the City includes those balances as part of this report to show the total cash on hand for the quarter.
The City’s investment portfolio decreased by $2,920,971, from $67,738,506, this reporting quarter ending March 31, 2025, compared to the last quarter ending December 31, 2024. The $3 million decrease is attributed to receiving $15 million cash receipts, but expending $18 million of cash payments broken down as follows: $9 million in accounts payable, $8 million in employee payroll and associated payments, and $1 million in debt service payments.
The Treasurer’s Report includes details of cash and investments which are held by institutions.
The report also summarizes the City’s cash position and distribution across funds for both quarters. Historical cash flow trends are compared to current cash flow requirements on an ongoing basis to ensure the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonable anticipated operating requirements. At the end of each reported quarter, the portfolio contained sufficient liquidity to meet the next six months of expected expenditures by the City.
ALTERNATIVE ACTION:
There is no reasonable alternative to this informational item, as not accepting the 3rd Quarter Treasurer’s Report will not change the City’s cash position as of the end of each quarter.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This item furthers the City’s efforts toward Enhance Organizational and Fiscal Stability.
FISCAL IMPACT:
There is no fiscal impact associated with this report, but Quarterly Treasurer’s Reports detail some of the fiscal activities that directly affect the City’s financial standing.
ORIGINATED BY:
Finance Department
ATTACHMENT LIST:
Attachment 1 - Treasurer's Report 03-31-2025 (PDF)
Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (PDF) 3 Packet Pg. 48
City of Pacifica
Quarter 3 Treasurer's Report
as of March 31, 2025
Portfolio Summary
Par Value
GASB 31 Fair
Market Value Book Value
% of
Portfolio
Cash
Tri Counties Bank-General Account $ 6,578,972 6,578,972 $ 6,578,972 $ 10.15% Tri Counties Bank-Payroll Account (7,417) (7,417) (7,417) -0.01% Tri Counties Bank-Turbo Data 22,507 22,507 22,507 0.03% Petty Cash - Held by various Departments 3,445 3,445 3,445 0.01% Total Cash $ 6,597,507 $ 6,597,507 $ 6,597,507 10.18%
Investments
California Local Agency Investment Fund
(LAIF)* $ 28,003,993 $ 28,027,774 $ 28,003,993 43.22%
City National Bank-Roy Davies Trust 2,411,075 2,411,075 2,411,075 3.72% PARS PENSION** 389,571 389,571 389,571 0.60%
Bank of New York Mellon-RDA 2004 Bonds 145,545 145,545 145,545 0.22% US Bank - Money Market Fund 27,246,063 27,246,063 27,246,063 42.05% Total Investments $ 58,196,247 $ 58,220,028 $ 58,196,247 89.82% Total Cash and Investments $ 64,793,754 $ 64,817,535 $ 64,793,754 100.00% * LAIF FAIR VAUE RATE 1.000849191 https://www.treasurer.ca.gov/pmia-laif/reports/valuation.asp ** PARS TRUST - PUBLIC AGENCY RETIREMENT SERVICES - INVESTS IN CAPITAL APPRECIATION
FUNDS FOR THE CITY'S OPEB TRUST AND MODERATE INDEX FUNDS
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Attachment: Attachment 1 - Treasurer's Report 03-31-2025 (5920 : Quarterly Treasurer's Reports for Q3 FY2024-25) City of Pacifica
Q3 Treasurer's Report
as of March 31, 2025
Reconciliation to General Ledger
Description Bank Account # Bank Amount
TRI COUNTIES GENERAL CHECKING ACCOUNT xx0541 7,536,373
TRI COUNTIES PAYROLL ACCOUNT xx6915 -
TRI COUNTIES WORKERS COMP ACCOUNT xx1341 -
TRI COUNTIES SENIOR SERVICES ACCOUNT xx5996 -
TRI COUNTIES TURBO DATA ACCOUNT xx9758 22,507
PETTY CASH PETTY CASH 3,445
CITY NATIONAL BANK ROY DAVIES TRUST-PRINCIPAL xx5367 2,411,075 LOCAL AGENCY INVESTMENT FUND (LAIF) xx1614/xx1007 28,003,993 BNY- RDA xx0166/xx0167 145,545
US BANK - 2014 WASTEWATER BONDS 2126700 48,753
US BANK - 2016 REFUNDING 24953500 1,009
US BANK - 2017 WASTEWATER REVENUE BOND-PROJECT FUND 27843200 4,992,488 US BANK - 2019 TAXABLE PENSION OBLIGATION BOND 267004000-3 - US BANK - 2021 CIVIC CENTER BONDS 249299000 4,283,614
US BANK - 2023 WW IBANK LOAN 207877539 17,920,199
PARS- PENSION&OPEB PACIFICA 389,571
DEPOSIT IN TRANSIT 159,944
OUTSTANDING AP CHECKS at 03/31/25 (1,117,544)
OUTSTANDING PR CHECKS at 03/31/25 (7,417)
TOTAL ADJUSTED BANK BALANCE 64,793,555
Description ORG OBJECT Book Amount
POOLED CASH 10000 (7,378,376)
CASH IN GENERAL ACCOUNT 101 10001 19,158,839
CASH IN BANK - PAYROLL 101 10002 (4,572,502)
CASH IN BANK - TURBO 101 10003 22,507
PETTY CASH 101/518 10020 3,245
INVESTMENTS - LAIF 101 10101 28,003,993
PARS TRUSTS-PENSION 101 11001 389,571
R DAVIES TRUST 227 11003 2,411,075
BNY- RDA 2004 BONDS FISCAL AGENT 791 11204 145,545
RESERVE CASH-2014 WASTEWATER REVENUE REFUNDING 518 11214 48,753 CASH RESERVE - 2016 LEASE PAYMENT 440 11216 1,009
RESERVE CASH-2017 WASTEWATER REVENUE REFUNDING
PROJECT 518 11217 4,992,488
RESERVE CASH-2019 POB BONDS 440 11219 -
CITY OF PACIFICA 2021 PROJECT FUND 322 11221 4,283,614
US BANK-2023 WASTE WATER BANK LOAN 518 11223 17,920,199 Unrecorded payroll WIRES (636,405)
TOTAL ADJUSTED BOOK BALANCE 64,793,554
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Attachment: Attachment 1 - Treasurer's Report 03-31-2025 (5920 : Quarterly Treasurer's Reports for Q3 FY2024-25) 1 | P a g e
City of Pacifica
Glossary of Cash and Investment Terms
Agency: Federal agency securities and /or Government-sponsored enterprises.
Annual Comprehensive Financial Report (ACFR): The official annual financial report for the City of Pacifica. It includes a combined set of statements for each individual fund and account group prepared with the accounting requirements established by the Governmental Accounting Standards Board (GASB) and in conformity with Generally Accepted Accounting Principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
Bankers’ Acceptance (BA): A draft or bill or exchange accepted by a bank or trust company.
The accepting institution guarantees payment of the bill, as well as the issuer.
Book Value: The value at which a security or investment is carried on the financial records of its owner. This value may be the original cost of acquisition of the security or original cost adjusted by amortization of a premium or accretion of a discount. The book value may differ from the security’s current market value.
Broker: A broker brings buyers and sellers together for a commission.
California Local Government Debt: Is bonds, notes, warrants, or other evidences of indebtedness of any local agency within California. California local government debt is a permitted investment under the California Government Code. The Government Code does not specify minimum credit ratings for local government debt in which local agencies may invest.
Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a certificate.
Large-denomination CD’s are typically negotiable.
Collateral: Securities, evidence of deposit of other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
Coupon: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
Debenture: A bond secured only by the general credit of the issuer.
Delivery versus Payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an
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Attachment: Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (5920 : Quarterly Treasurer's Reports for Q3 FY2024-25) 2 | P a g e
exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
Derivatives: (1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose value is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).
Discount: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
Diversification: Dividing investment funds among a variety of securities offering independent returns.
Federal Credit Agencies: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters.
Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.
Federal Funds Rate: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
Federal Home Loan Banks (FHLB): Government sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLB is to liquefy the housing related assets of its members who must purchase stock in their district Bank.
Federal National Mortgage Association (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.
FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
Federal Open Market Committee (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve and Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.
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Attachment: Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (5920 : Quarterly Treasurer's Reports for Q3 FY2024-25) 3 | P a g e
Federal Reserve System: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system.
Government National Mortgage Association (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FmHA mortgages. The term “pass-throughs” is often used to describe Ginnie Maes.
Issuer: Any corporation, government unit or financial institution which borrows money through the sale of securities.
Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
Local Agency Investment Fund (LAIF): A special fund in the State Treasury which local agencies may use to deposit funds for investment. All interest is distributed to those agencies participating on a proportionate share determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit to the LAIF account. The State keeps an amount for reasonable costs of making the investments, not to exceed one-quarter of one per cent of the earnings.
Local Government Investment Pool (LGIP): The aggregate of all funds from political subdivisions that are pooled together for investment and reinvestment.
Market Value: The price at which a security is trading and could presumably be purchased or sold.
Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase – reverse repurchase agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyerlender to liquidate the underlying securities in the event of default by the seller-borrower.
Maturity: The date upon which the principal or stated value of an investment becomes due and payable.
Money Market: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.
Mutual Funds: Referred to in the Government Code, Section 53601(l) as “shares of beneficial interest issued by diversified management companies.” The Mutual Fund must be restricted by its by-laws to the same investments as the local agency by the Government Code. These investments are Treasury issues, Federal Agency issues, State of California and City (within California) debt obligations, Bankers Acceptances, Commercial Paper, Certificates of Deposit, Negotiable Certificates of Deposit, Repurchase Agreements, Reverse Repurchase Agreements,
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Attachment: Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (5920 : Quarterly Treasurer's Reports for Q3 FY2024-25) 4 | P a g e
and Medium Term Corporate Notes. The quality rating and percentage restrictions in each investment category applicable to the local agency also apply to the Mutual Fund.
Negotiable: Term used to designate a security, the title to which is transferable by delivery.
Offer: The price asked by a seller of securities. (When you are buying securities, you ask for an offer). See Asked and Bid.
Open Market Operations: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.
Par Value: The amount of principal of a security that must be paid at maturity. The par value may also be referred to as the “face amount” of a security.
Portfolio: Collection of securities held by an investor.
Primary Dealer: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers included Securities and Exchange Commission (SEC) – registered securities broker-dealers, banks, and a few unregulated firms.
Principal: Describes the original cost of a security. It represents the amount of capital or money which the investor pays for the investment.
Prudent Person Rule: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state – the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
Qualified Public Depositories: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the State to hold public deposits.
Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return.
Repurchase Agreement (RP or Repo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, that is, increasing bank services.
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Attachment: Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (5920 : Quarterly Treasurer's Reports for Q3 FY2024-25) 5 | P a g e
Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.
Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.
Security: An investment instrument, other than an insurance policy or fixed annuity, issued by a corporation, government, or other organization which offers evidence of debt or equity.
Securities & Exchange Commission: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SEC Rule 15C3-1: See Uniform Net Capital Rule.
Structured Notes: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.
Treasury Bills: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to ten years.
Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among member of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
Yield: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
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Attachment: Attachment 2 – City of Pacifica Glossary of Cash and Investment Terms (5920 : Quarterly Treasurer's Reports for Q3 FY2024-25)
CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
Memorandum of Understanding (MOU) between the City of Pacifica and Jefferson Union High School District (JUHSD) for Joint Use of Facilities owned by JUHSD (Jean E. Brink Pool, Terra Nova Pool, and Terra Nova Tennis Courts)
RECOMMENDED ACTION:
Adopt a Resolution approving the Memorandum of Understanding (MOU) between the City of Pacifica and the Jefferson Union High School District (JUHSD) for the joint use of facilities owned by JUHSD (Jean E. Brink Pool, Terra Nova Pool, and Terra Nova Tennis Courts) and authorize the City Manager to execute the MOU.
STAFF CONTACT:
Scott Leslie - Parks, Beaches, and Recreation Director
(650) 738-7387
[email protected]
BACKGROUND/DISCUSSION:
The City of Pacifica and the Jefferson Union High School District (JUHSD) have collaborated on shared recreational facilities since October 19, 1976, when they established a Joint Powers Agreement (JPA) to facilitate the construction and operation of what is now the Jean E. Brink Pool, formerly known as the Oceana Natatorium. This agreement has provided students and the broader Pacifica community with access to aquatic programs while ensuring the facility remains well-maintained. The JPA, which remains in effect, is set to expire on January 1, 2027.
Over the years, the City and JUHSD refined their partnership through a series of Memoranda of Understanding (MOUs) to clarify responsibilities related to facility use, maintenance, and costsharing. The first MOU in 1987 expanded the agreement to include the Terra Nova Pool, Oceana Natatorium, and adjacent tennis courts. Subsequent MOUs in 1997 and 2011 further addressed operational and financial arrangements, ensuring the facilities remained sustainable for both student-athletes and community members.
The proposed 2025 MOU would replace prior agreements regarding shared use of the facilities.
The proposed MOU has clearer language and a streamlined payment structure, while preserving the core terms of the partnership.
Use of the Jean E. Brink Pool
A key addition to the proposed MOU is Attachment #1, which provides explicit guidelines for post-event cleaning responsibilities at the Jean E. Brink Pool. These include disinfecting pool fixtures, restocking restrooms and locker rooms, wiping down tiles and door frames, mopping floors, and ensuring all entryways, seating areas, and the pool deck are properly cleaned.
These defined expectations will help maintain the facility’s condition and improve operational efficiency.
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Previously, cost-sharing calculations for the Jean E. Brink Pool were complex, requiring both parties to track pool usage hours and divide costs for utilities, heating, water, custodial services, and general upkeep. This placed a significant administrative burden on District staff, particularly given fluctuating utility rates. To simplify this process, the City and JUHSD agreed to a fixed-rate payment model with a 3% annual increase, reducing administrative workload and improving budget predictability.
Under the new terms, the City will make set payments to JUHSD for use of the Jean E. Brink Pool:
• $190,000 for fiscal year 2024/25
• $195,700 for fiscal year 2025/26
• $100,785.50 for the first half of fiscal year 2026/27 (as the JPA and this MOU expire on December 31, 2026)
Under the proposed MOU, the City and District would share the use of the Jean E. Brink Pool, adjoining locker rooms, bathrooms and the bleachers. The City would be able to use the Jean E. Brink Pool at all time except when the Pool is being used by Oceana High School for Physical Education or Swim Team activities or if needed for other JUHSD activities. The City would also have exclusive use of the office space and storage space adjoining the Jean E. Brink Pool. The proposed MOU also provides that the City will perform the regular custodial services for the Jean E. Brink Pool while JUHSD will provide specified custodial services for certain Physical Education and swim meet events.
Use of Terra Nova Pool
The proposed MOU provides that the City may request the use of the Terra Nova pool for summer programs. For the summer of 2025, the cost will be $ 30.60 per hour.
Use of Terra Nova Tennis Courts
Under the proposed MOU, the City will manage the operation and scheduling of tennis court lights and the City shall also cover the cost of all utilities. The City and the District will share the costs for replacement of nets and major repairs or replacement of court surfaces, with the City paying 40% and the District paying 60%. The proposed MOU provides that the City would have the use of the tennis courts from 5:00 p.m. through 9:00 p.m., Monday through Friday, during the school year, and between 8:00 a.m. and 9:00 p.m. on Saturdays, Sundays, school vacation periods and holidays. The above schedule is subject to change based on the tennis seasons as set by the Peninsula Athletic League, at which time the District shall have the right to use the courts until 6:00 p.m. or until the completion of scheduled tennis matches.
This proposed MOU serves as a transitional bridge between the current JPA and a future rental agreement, as ownership of the pool reverts fully to JUHSD on January 1, 2027. Before this transition, City staff will negotiate a new agreement under Council direction to establish terms for continued City use of the facility beyond the JPA’s expiration.
Importantly, this proposed MOU does not alter facility hours, programming, or access for either party. It simply refines existing agreements to reflect operational realities and ensure long-term sustainability. By entering into this new MOU, the City and JUHSD reaffirm their commitment to shared recreational opportunities while strengthening their cooperative relationship for the benefit of the Pacifica community.
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ALTERNATIVE ACTION:
City Council may choose not to approve the MOU or provide direction for modifications before reconsideration.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
This action helps to support “Improve and steward City infrastructure, streets and facilities”.
FISCAL IMPACT:
The agreement includes defined facility payment costs, which will be covered through existing Parks, Beaches, and Recreation Department budgets or program revenues.
Status Fiscal Year Payment to Jefferson Union H.S.
District
Actual Payment 2022/23 $ 193,880
Actual Payment 2023/24 $ 198,549
Proposed 2024/25 $ 190,000
Proposed 2025/26 $ 195,700
Proposed 2026/27* $ 100,786
* Only Six (6) months (7/1/26 - 12/31/26)
ORIGINATED BY:
Parks, Beaches & Recreation Department
ATTACHMENT LIST:
Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (PDF)
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April 28, 2025
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING THE
MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF PACIFICA AND
THE JEFFERSON UNION HIGH SCHOOL DISTRICT (JUHSD) FOR THE JOINT USE OF JUHSD FACILITIES (JEAN E. BRINK POOL, TERRA NOVA POOL, AND THE TERRA NOVA
TENNIS COURTS)
WHEREAS, the City of Pacifica and the Jefferson Union High School District (JUHSD) entered into a Joint Powers Agreement (JPA) on October 19, 1976, to facilitate the construction and operation of the Jean E. Brink Pool (formerly the Oceana Natatorium), providing shared access to aquatic programs for students and the broader Pacifica community; and WHEREAS, the current JPA is set to expire on January 1, 2027, and both parties recognize the importance of updating the agreements to ensure continued shared access to the pool facility; and
WHEREAS, the City and JUHSD have collaborated through a series of Memoranda of Understanding (MOUs) over the years to define their respective responsibilities for the use, maintenance, and operation of the shared facilities, with the most recent MOU being adopted in 2011; and
WHEREAS, the MOU modernizes language, streamlines the payment structure, and adds Attachment #1, which outlines clear post-event cleaning responsibilities for both parties, including specific instructions for the Jean E. Brink pool maintenance, restocking, and cleaning of restrooms, locker rooms, and common areas; and
WHEREAS, the MOU simplifies the previous cost-sharing model by establishing a fixedrate annual payment structure, eliminating the need for complex calculations related to Jean E.
Brink Pool usage hours and fluctuating utility costs, and includes a 3% annual increase; and WHEREAS, under the new agreement, the City of Pacifica will make fixed annual payments to JUHSD starting at $190,000 for fiscal year 2024/25, increasing to $195,700 for fiscal year 2025/26, with a final payment of $100,785.50 for the first half of fiscal year 2026/27; and
WHEREAS, the MOU also specifies obligations regarding use of Terra Nova Pool and Terra Nova Tennis Courts; and
WHEREAS, this MOU supersedes prior agreements or understandings between the parties regarding use of JUHSD facilities and will serve as a transitional arrangement between the expiring JPA and the planned future rental agreement, as the pool facility will transition to full ownership by JUHSD on January 1, 2027; and
WHEREAS, the updated MOU will ensure that the shared recreational opportunities provided by the pool remain accessible to both students and community members, while maintaining the operational sustainability of the facility; and 4 Packet Pg. 59
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WHEREAS, the approval of the MOU is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment; and
WHEREAS, the City Council has reviewed and considered the terms and provisions of the updated MOU and finds that the agreement serves the best interests of the City and its residents, while strengthening the ongoing partnership between the City of Pacifica and the JUHSD;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Pacifica hereby approves the MOU, attached hereto, between the City of Pacifica and the Jefferson Union High School District for the joint use of the facilities.
BE IT FURTHER RESOLVED, that the City Council hereby authorizes the City Manager to execute the agreement, with minor revisions that may be approved by the City Manager and the City Attorney.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 28th day of April, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney 4 Packet Pg. 60
MEMORANDUM OF UNDERSTANDING
CITY OF PACIFICA AND THE JEFFERSON UNION HIGH SCHOOL DISTRICT 1 MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF PACIFICA
AND THE
JEFFERSON UNION HIGH SCHOOL DISTRICT
On October 19, 1976, a Joint Powers Agreement (“JPA”) was entered into by the Jefferson Union High School District (“District”) and the City of Pacifica (“City”) (collectively referred to as the “Parties”) in order to facilitate the construction and operation of the Jean E-. Brink Pool (formerly the Oceana Natatorium). The JPA is set to expire on January 1, 2027. Subsequent to the formation of the JPA, three Memoranda of Understanding (1987; 1998; 2011) were agreed upon which memorialized the Parties’ agreements related to the Terra Nova Pool, the Oceana Natatorium and Tennis Courts located on District land (“Property”). This Memorandum of Understanding supersedes all prior agreements or understandings between the parties about the shared use of the Property identified herein.
2024-2025 AND SUCCEEDING YEARS
This Memorandum of Understanding is entered into by the City of Pacifica and the Jefferson Union High School District. This Memorandum of Understanding involves the use of District facilities by the City of Pacifica.
TERM OF THE AGREEMENT
This MOU shall become effective upon full execution, with a term of July 1, 2024, through December 31, 2026.
PRIORITY USE FOR DISTRICT FACILITIES INCLUDING POOLS
The priorities for the determination of the use of the facilities will continue to be as follows:
(1) District activities; (2) City activities; (3) all others on a first- come, first-served basis.
PRIORITY USE FOR DISTRICT FACILITIES OTHER THAN POOLS
1. District facilities will be as available as the scheduling of District activities can permit.
2. When the City requests the District to assign staff, the City will pay all costs necessitated by District staff working beyond their regularly scheduled hours as well as utility costs. If the City activity is scheduled within District's staffs availability and the activity requires little or no additional work, no charge will be made other than the costs related to utilities.
3. With special arrangements, staff as assigned by the City would be able to operate the facility during Sundays and holidays.
TERRA NOVA POOL
The City may request the use of the Terra Nova pool for summer programs. Based on usage during the summer of 2010, the rate was established at $30 per hour. For succeeding years, unless cooperatively revised by the City and the District, this rate was and will be increased annually by the Consumer Price Index- California (All Urban Consumers-San FranciscoOakland-San Jose) using the February to February CPI change. The current rate is 2.4%. Thus, for the summer of 2025, should the CPI be 2%, the result would be a total cost of $ 30.60 per hour.
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Attachment: Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (5911 : Updated MOU with
MEMORANDUM OF UNDERSTANDING
CITY OF PACIFICA AND THE JEFFERSON UNION HIGH SCHOOL DISTRICT 2 JEAN E. BRINK POOL
The following details the understanding of both parties as it relates to the Jean E. Brink Pool (the “Pool”)
I. Use of the Jean E. Brink Pool
1. The District shall operate the Pool from 7:00 a.m. to 4:00 p.m., Monday through Friday, when school is in session. The City shall have the opportunity to use the pool prior to 7:00 a.m. and after 4:00 p.m. (as noted in #2) Monday through Friday, when school is in session, and all Saturdays, Sundays, holidays and vacation periods. During the swimming season (approximately mid-January through mid-May), the District shall operate the pool from 6:30 a.m. to 4:30 p.m. (contingent upon the school day ending at 3:00 p.m.). In addition, school scheduled evening swim meets, when necessary, will result in school use of the Pool until 10:00 p.m. Either group may request approval of the other in the event of the variation of the above schedule. Each entity should endeavor to give timely notice of major changes in the schedule which deviate from the schedule or pattern of the previous year. The school principal and Park, Beach and Recreation Department Director/Designee will be responsible for such notices and will work collaboratively to resolve scheduling conflicts.
2. The District will provide the City with the spring competitive swim team and evening swim meet schedules, including practice times, and adjustments for City special events during allotted school time shall be submitted in a timely fashion to the District for approval.
3. The Oceana High School swim team’s use shall take priority.
4. In the event of any emergency which would preclude use of the Pool, the City may use the Terra Nova pool at no additional cost. Use of the Terra Nova pool would be on a short-term basis and/or until the Jean E. Brink Pool is available.
II. Terms of Annual Rent Payment
1. The City will pay District rental fees in the amount of $190,000 annually (“Annual Rent”), plus a 3% increase annually after Year 1.
a. The Year 1 period shall be considered to have commenced on July 1, 2024, and will run for the fiscal year, to June 30, 2025.
b. Year 2 rental period shall be considered to have commenced on July 1, 2025, and will run for the fiscal year, to June 30, 2026.
c. Year 3 rental period shall be considered to have commenced on July 1, 2026, and will run for half the fiscal year, to December 31, 2026.
d. For the Year 1 rental period, the City shall pay the entire Annual Rent by June 15, 2025. For Year 2 under this MOU, the City shall pay the Annual Rent in two (2) equal installments, at the beginning and mid-point of the fiscal year, July 15 and December
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Attachment: Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (5911 : Updated MOU with
MEMORANDUM OF UNDERSTANDING
CITY OF PACIFICA AND THE JEFFERSON UNION HIGH SCHOOL DISTRICT 3 15 respectively. For Year 3 of this MOU, the City shall pay an amount equal to half the Annual Rent in one installment, at the beginning of the fiscal year.
2. The Annual rent will include at no extra charge:
a. The City’s access to District-provided basic WiFi and a landline telephone service in the office space.
b. Regular use of lights, electricity, water, sewage, and heat in the Pool facilities.
The City will not be charged for these services as the cost is included in the Annual Rent. The City is responsible for placing all garbage collected throughout the Pool facilities in the nearest District dumpster.
III. Exclusive and Shared Use Spaces
1. The City will have exclusive use of the office space and storage space adjoining the Pool.
2. The City and District shall share use of the Pool, the adjoining locker rooms and bathrooms, and the bleachers. The City shall have a right of use at all times except when the Pool is being used by Oceana High School students for Physical Education or Swim team activities, or, if needed for other District student activities. The City shall work with the Oceana principal or designee to determine the actual schedule.
IV. General Upkeep and Improvement of the Pool
1. The City and District agree upon the duties and obligations of custodial services.
Referenced and incorporated here in as Attachment 1 is a detailed description of these agreed upon services.
2. The City will perform regular custodial services described in Attachment 1 and regular cleaning supplies and paper supplies for all restroom and other shared spaces necessary to perform the services described in Attachment 1.
3. The District will provide support during the swim unit for Physical Education and the high school competitive swim season as follows: (1) During Physical Education swim unit, the District will provide custodial services three (3) afternoons per week. (2) During the high school competitive swim season, the District will provide custodial services one afternoon per week, to be coordinated by the City with the site’s Lead Custodian. District custodial service will also be in place during and after high school swim meets or other high school events.
4. Except as described in subsection 3 above, the District may provide custodial and/or maintenance services on an occasional emergency basis if requested by the City.
Services shall be billed quarterly, at a rate of $50.00 per hour.
5. Routine maintenance and minor repairs will be performed by District staff, the costs of which are included in the annual Rent. Repairs totaling less than $5,000 will be considered “minor” repairs.
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Attachment: Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (5911 : Updated MOU with
MEMORANDUM OF UNDERSTANDING
CITY OF PACIFICA AND THE JEFFERSON UNION HIGH SCHOOL DISTRICT 4 6. Repairs or maintenance exceeding $5,000 will be considered “major” repairs/maintenance. The Parties will share equally the cost of all major repairs/maintenance. Either Party may initiate securing pricing for the cost of these major repairs/maintenance. However, neither Party will be reimbursed for work performed without approval by the other party.
7. Capital improvements shall be approved by both agencies, except in case of an emergency and/ or where immediate action must be taken. Such improvements, not of an emergency nature, should be submitted for consideration by March of the year prior to the fiscal year where expenditures are anticipated. Both agencies will attempt to establish a fund for such work. Capital improvements will be shared on a 35%- 65% basis, with the City paying 35% and the District paying 65%.
8. The City may rent the Jean E. Brink Pool with prior approval of the District. a. For aquatic competition rentals: Organizations renting the facility will be required to pay a "site impact fee" of $1 per each swimmer per day ($.50 per swimmer per Friday half-day meets). There will be a $300 per day minimum. (If there are less than 300 swimmers, the organization will pay a site impact fee of $300 per day).
The renting organization will submit a check payable to Jefferson Union High School District and provide "back-up" documentation to account for the number of swimmers attending the meet. Payment will collected by the City of Pacifica with all other rental documents. The City will forward payment and back-up documentation to the District.
b. In the case of other pool rentals, funds received from the City's renting the pool will be shared among City and District on the basis of 50% to each party after expenses. The City will provide the District's share upon completion of the rental usage along with an income/ expense summary accounting of all funds received and billed.
c. Funds derived from pool rental after expenses or through impact fees shall be directed toward the general upkeep of the pool.
9. The Oceana High School (upper) parking lots will be available for parking at no additional cost during weekend swim meets.
NOTICE OF WITHDRAWAL FROM POOL PARTICIPATION
1. Either party, with proper notice, has the right to terminate their use of the facility. Said notice would be by April 1 of the prior fiscal year. The second party shall have the right to continue their program.
2. Should the school district propose to sell the school grounds, a separate discussion would first be held with the City in order to establish a procedure to take over the operation and/ or acquire possession of the pool and underlying property.
TERRA NOVA TENNIS COURTS
The operation and scheduling of tennis court lights shall be the responsibility of the City.
1. The City shall, at its own expense, provide general maintenance to the tennis court lighting system, including lamp replacement, clock repair and lighting system repairs.
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Attachment: Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (5911 : Updated MOU with
MEMORANDUM OF UNDERSTANDING
CITY OF PACIFICA AND THE JEFFERSON UNION HIGH SCHOOL DISTRICT 5 The City shall also cover cost of all utilities. The City and the District will share the costs for replacement of nets and major repairs or replacement of court surfaces, with the City paying 40% and the District paying 60%.
2. The District shall have exclusive availability of the tennis courts between the hours of 7:00 a.m. and 5:00 p.m., Monday through Friday, during the school year. The City will have the use of the tennis courts from 5:00 p.m. through 9:00 p.m., Monday through Friday, during the school year, and between 8:00 a.m. and 9:00 p.m. on Saturdays, Sundays, school vacation periods and holidays. The above schedule is subject to change based on the tennis seasons as set by the Peninsula Athletic League, at which time the District shall have the right to use the courts until 6:00 p.m. or until the completion of scheduled tennis matches.
INDEMNITY
1. City shall indemnify, defend, protect and save harmless District and its elected and appointed officials, officers, employees, officers and agents (collectively hereafter the "Indemnitees")-from and against any and all claims, liabilities, losses, damages, fines, penalties, claims, demands, suits, actions, causes of action, judgments, costs and expenses (including without limitation reasonable attorneys' fees and court costs) arising from its use of the property that is the subject of the Agreement.
In the event any such action or proceeding is brought against District by reason of any such claim, City, upon notice from District, covenants to defend such action or proceeding by counsel reasonably satisfactory to District. The Office of the San Mateo County Counsel is deemed to be reasonably satisfactory to District. The obligations of City under this Section shall not apply to any claims or other matters resulting from the breach or default by District under the Agreement, as amended, or from the gross negligence or willful misconduct of District, its respective officials, agents, employees or consultants and other District Indemnitees.
2. District shall indemnify, defend, protect and save harmless City and its elected and appointed officials, officers, employees, officers and agents (collectively hereafter the "Indemnitees") from and against any and all claims, liabilities, losses, damages, fines, penalties, claims, demands, suits, actions, causes of action, judgments, costs and expenses (including without limitation reasonable attorneys' fees and court costs) arising from its use of the property that is the subject of the Agreement.
In the event any such action or proceeding is brought against City by reason of any such claim, District, upon notice from City, covenants to defend such action or proceeding by counsel reasonably satisfactory to City. The obligations of District under this Section shall not apply to any claims or other matters resulting from the breach or default by City under the Agreement, as amended, or from the gross negligence or willful misconduct of City or its respective officials, agents, employees or consultants and other City Indemnitees.
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Attachment: Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (5911 : Updated MOU with
MEMORANDUM OF UNDERSTANDING
CITY OF PACIFICA AND THE JEFFERSON UNION HIGH SCHOOL DISTRICT 6 GOVERNING LAW; VENUE
This Agreement shall be construed and enforced in accordance with the laws of the State of California without regard to principles of conflict of laws. Venue shall be in the Superior Court of the County of San Mateo.
Dated: _________ Jefferson Union High School District
By: _________________________
President, Board of Trustees
Dated: ___________________ ATTEST:
By: _________________________
Clerk, Board of Trustees
Dated: _________ City of Pacifica
By: _________________________
Mayor, City of Pacifica
Dated: ___________________ ATTEST:
By: _________________________
Clerk, City of Pacifica
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Attachment: Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (5911 : Updated MOU with
MEMORANDUM OF UNDERSTANDING
CITY OF PACIFICA AND THE JEFFERSON UNION HIGH SCHOOL DISTRICT 7
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Attachment: Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (5911 : Updated MOU with
MEMORANDUM OF UNDERSTANDING
CITY OF PACIFICA AND THE JEFFERSON UNION HIGH SCHOOL DISTRICT 8 ATTACHMENT 1
Below is a list of tasks to be completed after each pool event:
• Clean and shower walls and fixtures with tile shower disinfectant cleaner • Wipe down other tile walls
• Clean all toilets and sinks with disinfectant cleaner including upstairs bathrooms • Empty trash receptacles
• Restock dispensers in all bathrooms and Locker rooms
• Clean mirrors
• Clean ceiling vents
• Wipe down doors/frames
• Mop all floors in bathrooms and locker rooms
• Mop floors in reception area. If need spray down and scrub • Clean entry glass doors
• Clean upstairs glass in front of stadium seating areas • Spray down and scrub the whole pool deck
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Attachment: Attachment 1: Memorandum of Understanding Jefferson Union High School District Joint Facilities Use (5911 : Updated MOU with
CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
Resolution to Approve Calera Creek Water Recycling Plant Admin Building Elevator Modernization Project P0039
RECOMMENDED ACTION:
Adopt a Resolution:
A. Approving the Construction Contract with KONE, Inc. in an amount of $203,200.
B. Authorizing a budget authority in the amount of $219,000, which includes contingencies in an amount of $15,800, not to exceed seven percent (7%) of the Construction Contract amount;
C. Authorizing staff to Execute Future Change Orders not to exceed the contingency amount; and
D. Authorizing the City Manager and Designated Personnel to Sign Contract Documents related to the CCWRP Admin Building Elevator Modernization Project P0039.
STAFF CONTACT:
Naomi Fuson, Assistant Engineer - Wastewater Division
(650) 291-9167
[email protected]
Matt Kelly, Project Manager - Wastewater Division
(650) 922-7248
[email protected]
Louis Sun, P.E., Interim PW Director
(650) 738-4662
[email protected]
BACKGROUND/DISCUSSION:
On June 22, 2023, during the FY 2023-24 Capital Improvements Program (CIP) budget approval process, the Council approved funding for the CCWRP Admin Building Elevator Assessment Project. This Project was created to assess the current condition of the building elevator and determine the best improvements for modernization. The Project has been renamed to CCWRP Admin Building Elevator Modernization Project.
The Calera Creek Water Recycling Plant hydraulic elevator was built in 2001 and has experienced various maintenance issues over the years. The City contacted well-recognized, large elevator companies that service the Bay Area region including KONE Inc., Otis Elevator Company, TKE Elevator Co., and EnPro Elevator Inc. to assess and recommend the best improvements for modernization.
Each company visited the site separately and gave their professional assessment of the features of the elevator system that would require an update and replacement. All four companies agreed the elevator is past its lifespan of approximately 20 years. Electrical and Fire 5 Packet Pg. 69
Pacifica City Council 2
April 28, 2025
Life Safety upgrades were identified in all of the assessments. The City conducted site visits with Muscio Electric and RCM Fire Protection Inc. LLC (who currently services the fire alarms in the Admin building) to receive a full scope of work that would be required to get the elevator up to state and City code.
Each of the four companies submitted a quote which are summarized in the table below:
Company Total Bid
EnPro Elevator, Inc. $189,000
Otis Elevator Company $202,452.75
KONE, Inc. $203,200
TKE Elevator Co. $233,372.75
KONE’s Proposal pricing is in the middle of all the proposals; however, the selection process is not based on the lowest fee alone. KONE’s company team has experience in hydraulic elevator modernizations and has systems specifically designed to address aging components and frequent breakdowns, improving reliability, safety, and efficiency. KONE’s team conducted the most detailed and complete site visit to inspect all of the components of the elevator system, including opening up the shaft and assessing the safety accessories in the hallway, which other companies did not.
KONE is the current elevator maintenance contractor for the City Hall and Council Chambers elevators and has a clear understanding of the City’s needs and expectations. They have an office in San Francisco which is advantageous for the City of Pacifica in case emergency services are needed.
Due to the familiarity and comfort level with KONE working on the other two (2) City elevators and providing the most comprehensive and thorough proposal in terms of dealing with the state inspection and certification, the City ranked KONE first and determined that they are the most qualified to perform the requested elevator modernization services. The City Manager recommends the approval of the CCWRP Admin Building Elevator Modernization Construction Contract with KONE, inc. Based on their proposal, the staff feels that KONE offers the best balance between price and quality.
In addition, a 7% contingency is recommended to allow enough funding to handle any additional improvements that are identified during construction. Staff recommends authorizing a budget authority for construction in the amount of $219,000, which includes contingencies in an amount of $15,800, not to exceed seven percent (7%) of the Construction Services Agreement amount for any unforeseen conditions and/or additional work required.
ALTERNATIVE ACTION:
Council may choose not to adopt the resolution and not approve the construction contract.
However, this will result in project delays, possible increase in construction cost, and will subject the City to possible increased maintenance issues and breakdowns of the elevator system. Staff does not recommend this alternative action.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the construction contract is consistent with the following Council adopted Goals:
• Stewardship of City Infrastructure, streets and facilities: includes repairing/replacing outdated city facilities such as city hall, the libraries, fire stations, etc., improving streets, 5 Packet Pg. 70
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April 28, 2025
and responding to impacts of sea level rise. This construction project will improve existing wastewater treatment facility through the upgrade of the elevator system located inside the admin building.
FISCAL IMPACT:
The following is the source and use of funds for the project:
Use of Funds
Construction Contract with KONE, Inc. $203,200
Contingency (7%) $15,800
Total Use of Funds $219,000
Project Fund Source
Enterprise Fund (Fund 518 Sewer Utility)
Account No 518452-51206-P0039 $100,000
Enterprise Fund (Fund 518 Sewer Utility) Account
No 518452-51206-P0037
$119,000
Total Project Fund Source $219,000
Estimated Project Fund End Balance $0.00
Due to the timing of the current contract and the need for the project P0039 to start work, staff recommends a transfer of $119,000 from CCWRP Electrical Condition Assessment Project (P0037). This transfer will not delay project P0037 because this project has sufficient balance for the current fiscal year.
ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
Construction Services Agreement 032425 KONE Pacifica (PDF) 5 Packet Pg. 71
Pacifica City Council 4
April 28, 2025
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING THE CONSTRUCTION CONTRACT WITH KONE, INC. IN AN AMOUNT OF $203,200; AUTHORIZE A BUDGET AUTHORITY IN THE AMOUNT OF $219,000, WHICH INCLUDES CONTINGENCIES IN AN AMOUNT OF $15,800, NOT TO EXCEED SEVEN PERCENT (7%) OF THE CONSTRUCTION CONTRACT AMOUNT; AUTHORIZE STAFF TO EXECUTE FUTURE CHANGE ORDERS NOT TO EXCEED THE CONTINGENCY AMOUNT; AND
AUTHORIZE THE CITY MANAGER AND DESIGNATED PERSONNEL TO SIGN CONTRACT
DOCUMENTS RELATED TO THE CCWRP ADMIN BUILDING ELEVATOR
MODERNIZATION PROJECT P0039.
WHEREAS, consistent with the City of Pacifica’s Bidding Procedures for Public Projects (Municipal Code Title 3 Chapter 15) the City of Pacifica requested informal bids for CCWRP Admin Building Elevator Modernization Project P0039 on February 24, 2025; and WHEREAS, the selection process is not based on the lowest fee alone; and WHEREAS, KONE’s company team has experience in hydraulic elevator modernizations and has systems specifically designed to address aging components and frequent breakdowns, improving reliability, safety, and efficiency; and WHEREAS, KONE’s team conducted the most detailed and complete site visit to inspect all of the components of the elevator system, including opening up the shaft and assessing the safety accessories in the hallway, which other companies did not; and WHEREAS, due to the familiarity and comfort level with KONE working on the other City elevators and providing the most comprehensive and thorough proposal in terms of dealing with the state inspection and certification; and
WHEREAS, the City ranked KONE first and determined that they are the most qualified to perform the requested elevator modernization services, and based on their proposal, the staff feels that KONE offers the best balance between price and quality.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica to Approve the Construction Contract between the City of Pacifica and KONE Inc., in the amount of $203,200; and Authorize a budget authority in the amount of $219,000, which includes contingencies in an amount of $15,800, not to exceed seven percent (7%) of the Construction Contract amount; and authorize the City Manager to execute all documents related to the project.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of 5 Packet Pg. 72
Pacifica City Council 5
April 28, 2025
Pacifica, California, held on the 28th day of April, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney 5 Packet Pg. 73
CITY OF PACIFICA (OWNER)
151 Milagra Dr, Pacifica, CA 94044
CONTRACT
City of Pacifica Contract 12/22 v1 00 5205 - 1
CCWRP ADMIN BUILDING ELEVATOR MODERNIZATION PROJECT, DATE: APRIL 28, 2025
1. Identification of Contractor.
CONTRACTOR: KONE, INC.
LICENSE NO: 179166 CLASS: C11 – ELEVATOR INSTALLATION
2. Scope of The Work. See Scope of Work attached as Appendix A.
Compensation for Work. Contractor’s total compensation for the Work performed under this Agreement (Contract Sum) is $203,200, to be paid as (check one): (1) ☐ lump sum; (2) ☒ lump sum with progress payments; (3) ☐ per attached schedule of rates and charges, up to a guaranteed not-to-exceed amount of $Enter Dollar Amount. All payments (check one): ☒ shall ☐ shall not be subject to a five percent retention.
Contractor’s hourly rates are listed in Exhibit A, Scope of Work and Cost Proposal. In the event payments to Contractor equal the “not to exceed” amount, and absent a written modification to this Agreement signed by the Owner, Contractor shall complete all services required under this Agreement without further compensation or cost reimbursement.
3. Schedule of Performance for the Work. Contractor shall commence and complete the Work by the following dates:
Commencement Date shall be on the date established in the Notice to Proceed. Owner reserves the right to modify or alter the Commencement Date of the Work.
Substantial Completion Date: Within 180 calendar days of Commencement Date.
Final Completion Date: Within 30 calendar days of Substantial Completion.
3.01 Liquidated Damage Amounts.
A. As liquidated damages for delay Contractor shall pay Owner Five Hundred dollars ($500.00) for each Day that expires after the time specified herein for Contractor to achieve Substantial Completion of the entire Work, until achieved.
B. As liquidated damages for delay Contractor shall pay Owner Five Hundred dollars ($500.00) for each Day that expires after the time specified herein for Contractor to achieve Final Completion of the entire Work, until achieved.
3.02 Scope of Liquidated Damages
A. Contractor and Owner agree that because of the nature of the Project, it would be impractical or extremely difficult to fix the amount of such actual damages incurred by Owner because of a delay in completion of all or any part of the Work. Contractor and Owner agree that specified measures of liquidated damages shall be presumed to be the amount of such damages actually sustained by Owner, and that because of the nature of the Project, it would be impracticable or extremely difficult to fix the actual damages.
B. Liquidated damages for delay shall cover administrative, overhead, interest on bonds, and general loss of public use damages suffered by Owner as a result of delay. Liquidated damages shall not cover the cost of completion of the Work, damages resulting from Defective Work, lost revenues or costs of substitute facilities, or damages suffered by others who then seek to recover their damages from Owner (for example, delay claims of other contractors, subcontractors, tenants, or other third-parties), and defense costs thereof. Owner may deduct from any money due or to become due to Contractor subsequent to time for completion of entire Work and extensions of time allowed pursuant to provisions hereof, a sum representing then-accrued liquidated damages.
4. Terms and Conditions.
4.01 Contractor shall perform the Work in accordance with the terms and conditions of this Agreement and the following attachments (together, Contract Documents):
A. Appendix A – Scope of Work
B. Appendix B – General Conditions
C. Appendix C – Insurance
D. Appendix D – Construction Performance Bond
E. Appendix E – Construction Labor and Materials Payment Bond F. Appendix F – Supplemental Conditions, if applicable
4.02 The Contract Documents are the sole and exclusive provisions that govern the Work described herein. Any provision contained in any purchase order issued in connection with this Agreement or the Work described herein shall be null and void and shall have no force or effect.
Agreement number must appear on all invoices and correspondence.
Send invoices in duplicate immediately upon performance of Work ordered hereon to:
City of Pacifica
151 Milagra Dr
Pacifica, CA 94044
City of Pacifica:
By: _______________________________________
Kevin Woodhouse, City Manager
ATTEST:
By: ___________________________________
Sarah Coffey, City Clerk
APPROVED AS TO FORM:
By: ___________________________________
Michelle Kenyon, City Attorney
CONTRACTOR
Name: ____KONE, Inc.________________________
By: _______________________________________
(signature)
Its: _______________________________________
Title (If Corporation: Chairman, President or Vice President) By: _______________________________________
(signature)
Its: _______________________________________
Title (If Corporation: Chairman, President or Vice President) 1099 INFORMATION
Contractor Taxpayer I.D. No.: __________________
Incorporated: ☐ Yes ☐ No
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator City of Pacifica Contract 12
/22 v1 00 5205 -2
Appendix A to Contract
SCOPE OF WORK
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator KONE Internal
KONE MODERNIZATION PROPOSAL
Proposal: 700 Pacific Coast Highway - 2025 Mod
Proposal Date: 02/24/2025
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator KONE Internal
03/04/2025
KONE Inc.
Elevators & Escalators
567 7th Street
San Francisco, CA 94103
Mobile: 415-260-5028
[email protected]
www.kone.us
Dear Naomi & Matthew,
We are pleased to enclose, for your review and consideration, KONE's proposal to modernize your equipment located at the following address for the amount of $203,200.00 (incl. use tax):
● This proposal is based on 2025 installation.
● This proposal is valid for (30) days.
● Anticipated downtime: 4-5 weeks per unit for modernization + 1-2 weeks for inspection.
Please know that we are available to assist you in coordinating the work by others as further described in our “Bid Attachment B“. Should you have any questions or require additional information, please feel free to contact me directly.
We look forward to hearing from you and working together on this project.
Yours sincerely,
Jenny Bodas
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator www.kone.us T-0008204672 3(17)
KONE Internal
Appendix 1: KONE 24/7 Connected Services
Appendix 2: Clarifications
Appendix 3: Bid Attachment “A” / KONE Inc. General Terms and Conditions (Modernization) Appendix 4: Bid Attachment “B” / Site Requirements & Work by Other Trades
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator www.kone.us T-0008204672 4(17)
KONE Internal
Why KONE?
KONE in brief
KONE is a global leader in the elevator
and escalator industry. Our mission is to
make cities better places to live.
Our versatile product portfolio features a
wide range of innovative products
including elevators, escalators,
autowalks, monitoring, access and
destination control systems.
Value for your project
KONE helps you to reduce operational costs, increase end-user satisfaction and value of your building by providing accessible and safe equipment through a professional and trouble-free modernization project.
Increased user satisfaction/minimal disturbance to end-users Improved eco-efficiency, reduced energy consumption
Improved safety according to latest standards
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator www.kone.us T-0008204672 5(17)
KONE Internal
Ensuring your project success
Project Overview
KONE Responsibility CUSTOMER Responsibility
KONE and CUSTOMER
Site Cornerstones
By ensuring that these cornerstones are in place you can ensure that your modernization project stays on schedule and that KONE technicians can perform their work quickly, safely, and with minimum disruption to building operations.
Site preparation requirements before materials arrive
● Loading and storage area of suitable size for materials, waste and waste storage, and tools ● Safe access route for new materials and materials being removed ● Access permissions and cards or other access devices for KONE technicians Other works as agreed in the project plan, if not managed by KONE ● Please refer to Appendix 4: Bid Attachment “B” / Site Requirements & Work by Other Trades Project kickoffFully executed
contract & down
payment
Materials delivered to
site and
modernization starts
Project
completion
Detailed site
survey
Submittals
approved if
required
Manufacturing Work by others
Installation and
testing
Third-party inspection
arranged
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator www.kone.us T-0008204672 6(17)
KONE Internal
Solution details
Elevator / Solution 1
Electrification
Product name KONE HydroMod DX
Elevator group size Simplex
Number of floors served 3
Code year 2004
Speed [FPM] 125
NEMA rating (HW) Hoistway rating is NEMA 1.
NEMA rating (MR) Machine room rating is NEMA 1.
Power supply voltage [v] 480
Type of power unit Submersible
Machine room duct KONE will remove all existing wiring, conduit and duct from the machine room. New conduit and duct properly sized and
constructed for the job requirements will be installed (in accordance with applicable codes).
New motor size (hp) 25
Motor Starts per Hour 80 Standard
Type of curtain of light This curtain of light is an electronic sensing device that operates across the car entrance. When activated, the curtain of light will prevent the doors from closing or cause them to stop and reopen if they are in the process of closing. The doors will remain open as long as the flow of traffic continues and will close shortly after the last person passes through the door opening. A 2-D type will be provided.
Qty of COPs 1
Out of service switch Yes
Hoistway duct KONE will remove all existing wiring, conduit and duct from the hoistway. New conduit and duct properly sized and constructed for the job requirements will be installed (in accordance with applicable codes).
Fixtures
Product name Custom Fixtures
Number of floors served 3
Capacity [LBS] 2100
Qty of COPs 1
Qty of new hall stations 2
Qty of car direction
lanterns
1 Qty of hoistway access
switches
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator www.kone.us T-0008204672 7(17)
KONE Internal
Doors
Product name Door Panel(s)
Number of floors served 3
Car panel finishing
material
New car door panel(s) shall be provided where applicable. New door(s) shall be UL fire rated 1 ½ hour. Finish will be #4 stainless steel.
Door type Single speed side opening.
Product name KONE ReNova Door Operator
Number of floors served 3
NEMA rating (HW) Hoistway rating is NEMA 1.
Door type Single speed side opening.
Door package type KONE ReNova M6 door package includes a new door operator, restrictive clutch, car door track, car gate switch, car hangers, car door panel adapters, OEM interlocks and hoistway pick up rollers.
Product name Curtain of Light
Number of floors served 3
Code year 2004
NEMA rating (HW) Hoistway rating is NEMA 1.
Type of curtain of light This curtain of light is an electronic sensing device that operates across the car entrance. When activated, the curtain of light will prevent the doors from closing or cause them to stop and reopen if they are in the process of closing. The doors will remain open as long as the flow of traffic continues and will close shortly after the last person passes through the door opening. A 2-D type will be provided.
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator www.kone.us T-0008204672 8(17)
KONE Internal
Shaft equipment
Product name Guide Shoes
Capacity [LBS] 2100
Speed [FPM] 125
Car guide shoe type KONE RG100 (Roller)
New car guide shoes New spring dampened roller guide shoes will be provided.
Hydraulic equipment
Product name Field Pipe & Accessories
Capacity [LBS] 2100
Speed [FPM] 125
Field Pipe Length (in) 240
Field Pipe Size 2"
Mainline Shutoff Valves A manual safety valve will be supplied in the oil line at the jack unit (pit) designed to shut off the flow of oil from the cylinder and bring the car to rest in case the car attains excessive down speed.
Seismic Rupture Valve A rupture valve will be provided which provides protection against supply line failure that causes overspeed in the down direction.
Product name Power Unit
Capacity [LBS] 2100
Speed [FPM] 125
Type of power unit Submersible
New motor size (hp) 25
Motor Starts per Hour 80 Standard
Control Valve OEM Maxton
Field Pipe Length (in) 240
Field Pipe Size 2"
Jack location Inground
Jack type Single Stage
Load class Passenger
Qty Jacks per Car 1
Seismic Rupture Valve A rupture valve will be provided which provides protection against supply line failure that causes overspeed in the down direction.
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator www.kone.us T-0008204672 9(17)
KONE Internal
Commercial Offer
Project notes • Required electrical and Fire Life Safety scope of work have been included in this proposal.
• 8 hours of standby time have been included in this proposal for cab floor installation by customer’s subcontractor. If floor contractor needs additional time than what has been allotted, customer will be responsible for additional standby labor hours.
• General contractors work not included in this proposal. If GC work is required customer is responsible for contracting that work and covering the cost of GC scope of work.
• Jack replacement and cost associated are not included in this proposal. • State elevator permit cost is included in this bid.
• Customer to provide safe and secure lay down/storage area for project material. • Customer to provide two on-site parking spaces for project technicians.
Handover date Mutually agreeable project schedule will be determined at time of proposal acceptance.
Current delivery lead time is 15 weeks from when order receipt, deposit and approval of drawings have all been completed. The agreed delivery times for the project may need to be extended because of delays caused by measures undertaken to stop the spreading of the Coronavirus (2019-nCoV) epidemic, such as mandatory holiday extensions and transportation restrictions imposed by authorities in China and other countries, and the availability of personnel, logistics providers and supply chains, due to the epidemic.
Downtime period 5-6 weeks per unit
Warranty/maintenance Our proposal does not include any warranty maintenance.
Pricing
Equipment Price ($)
Elevator: Solution 1 $ 203,200.00
Total Sales Price, net including TAX $ 203,200.00
Additional options for your consideration:
• 1 year of warranty/preventative maintenance in the amount of $3540.00 ($295.00 monthly) Proposal pricing is based on the scope of work as defined herein. Any additional work required will be performed only upon purchaser’s approval of a mutually agreeable change proposal. Any other deficiencies revealed in the progress of the work will be promptly reported to the purchaser with recommendations and cost for corrective action.
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Tender Approval
KONE
Jenny Bodas
567 7th Street
San Francisco, CA 94103
[email protected]
Owner/Representative
City of Pacifica Water Plant
700 Pacific Coast Highway
Pacifica, CA 94044
Submitted by:
Jenny Bodas
MOD Sales
02/24/2025
We accept the offer constituted by this proposal (total sales price of $ 203,200.00, incl. use tax) and agree to the conditions contained therein.
Approved by Customer
___________________________________________
Printed name:
Title:
Company name:
Date:
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Appendix 1: KONE 24/7 Connected Services
KONE 24/7 Connected Services – improved safety, full transparency, and peace of mind In addition to a quality modernization project, we would be excited to discuss KONE 24/7 Connected Services with you and the continuing benefits KONE could bring to your business. KONE is leading the industry with KONE 24/7 Connected Services using the latest intelligent elevator technology allowing us to predict issues and take action before a shutdown occurs. Predictive maintenance allows fewer shutdowns, less call-outs, and improved up-time of equipment - all leading to a better user experience!
Read more at
kone.us/connected
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Appendix 2: Clarifications
1. Contract terms between KONE Inc. and Purchaser shall be based on our Proposal and Attachments “A” and “B”.
2. All new elevator equipment provided shall meet applicable ASME A17.1 code requirements. Any provisions of codes applicable to out-of-scope items shall be the Purchaser’s responsibility. Cost of any future code changes adopted prior to permitting and completion are excluded.
3. Existing cab and entrance dimensions, which may not meet current ADA or stretcher access rules, will be retained as is.
4. Our proposal includes inspections and testing as required by the AHJ. However, any re-testing required due to other trades’ failures to complete their work or tests in a timely manner will be billed at our regular billing rates.
5. The ASME code limits changes to the empty car weight + capacity of each elevator to 5% of the originally installed value. If past or proposed changes result in a change to the weight or system pressure (for hydraulic) greater than 5% above the original design values, the cost of any engineering and of any required modifications to the elevator system or structure shall be extra to this proposal scope and pricing. If this situation is discovered during the engineering process, KONE will notify purchaser and recommend an alternate design or other changes.
6. In order to provide best pricing, proposal excludes any extra demobilizations and remobilizations. If we must demobilize from the jobsite for any reason outside our control, we shall be compensated at our regular billing rates.
7. Proposal pricing is based on the scope of work as defined herein. Any additional work required will be performed only upon Purchaser’s approval of a mutually agreeable change proposal. Any other deficiencies revealed in the progress of the work will be promptly reported to purchaser with recommendations and cost for corrective action.
8. Asbestos: Notwithstanding anything contained to the contrary within this bid or contract, KONE’s work shall not include any abatement or disturbance of asbestos containing material (ACM) or presumed asbestos containing materials (PACM). Any work in a regulated area as defined by Section 1910 or 1926 of the Federal OSHA regulations is excluded from KONE’s scope of work without an applicable change order to reflect the additional costs and time. In accordance with OSHA requirements, the Customer shall inform KONE and its employees who will perform work activities in areas which contain ACM and/ or PACM of the presence and location of ACM and/or PACM in such areas which may be contacted during work before entering the area. Other than as expressly disclosed in writing, Customer warrants that KONE’s work area at all times meets applicable OSHA permissible exposure limits (PELs). KONE shall have the right to discontinue its work in any location where suspected ACM or PACM is encountered or disturbed. Any asbestos removal or abatement, or delays caused by such, required in order for KONE to perform its work shall be the Customer’s sole responsibility and expense.
After any removal or abatement, customer shall provide documentation that the asbestos has been abated from the KONE work area and air clearance reports shall be made available upon request prior to the start of KONE’s work.
9. Purchaser shall provide any security, escort or other building service support personnel required during demolition, installation, testing, and inspections.
10. For hydraulic elevators, we can assume no responsibility for unusual conditions such as hole cave in and complete hydraulic cylinder assembly embedded in concrete. The excavation of the hole to accommodate the new hydraulic cylinder assembly is based on encountering soil free of oil, rocks, boulders, building construction members, sand, water, quicksand, underground caves and/or any other obstructions or unusual conditions. Should such obstructions or unusual conditions be encountered, additional time above or beyond the working days estimated to complete this project may be required. We will proceed with this portion of the project on a time and material basis, based on our normal billing rates.
11. Proposed solution is subject to a complete engineering review by KONE engineering team to confirm feasibility of products proposed. Additional charges may apply for work not included, but required to meet system requirements. Additional charges for this work (if applicable) shall be mutually agreed upon.
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Appendix 3: Bid Attachment “A” / KONE Inc. General Terms and Conditions (Modernization)
1. APPLICATION OF THESE TERMS
The parties agree to be bound by the terms and conditions contained in the Bid Letter, this Bid Attachment A and Bid Attachment B, including the documents incorporated herein by reference (collectively, the “Proposal”).
2. SPECIAL PURCHASING REQUIREMENTS
This Proposal is made without regard to compliance with any special sourcing and/or manufacturing requirements including, but not limited to, Buy America, Buy American, U.S. Steel, FAR clauses, minority / disadvantaged supplier requirements or similar federal and/or state procurement laws. Should such requirements be applicable to this Project, KONE reserves the right to modify and/or withdraw its Proposal.
3. PROPOSAL CONDITIONS
The Proposal shall be open for acceptance within the period stated in the Bid Letter or, when no period is stated, for a period of 30 days from the date of the Bid Letter. Prior to commencing manufacture of the equipment described in the Bid Letter (“Equipment”), KONE must have (i) a fully executed contract; (ii) a schedule acceptable to KONE identifying the Equipment installation start date, or alternatively, KONE’s letter specifying the ship date (“Ship Date Letter”) signed by Customer, which, as applicable, is incorporated by reference herein; (iii) the first payment in Section 4 herein; and (iv) fully approved KONE layouts.
4. PAYMENT TERMS
Payment of the total Price is due within 30 days from invoice date, as follows:
● 30% of the Price for engineering, site management, and overhead, billable and due upon execution of this Proposal or receipt of the subcontract;
● 50% of the Price for material and shipping, billable and due upon delivery of material to the jobsite or KONE Distribution Center;
● 20% of the Price for Equipment installation, billable and due at the billing cycle following the start of installation.
KONE imposes a surcharge for payments made via credit card that is not greater than our cost of acceptance. The surcharge that we impose for this type of transaction is a percentage of the amount paid via credit card, which will be notified to the Customer at the payment portal. KONE reserves the right to delay, suspend, or stop the work, including manufacturing, delivery, installation and/or Equipment turnover, for non-payment, without liability to KONE or being held in default. Simple interest at 1.5% per month shall be charged on amounts not paid when due. Payments to KONE are not contingent on any third-party payments to Customer. Customer shall reimburse KONE for all costs of collection, including courts costs and reasonable attorneys’ fees.
Prior to turnover, KONE must be paid in full, less 10% maximum retention, the Price including all change orders. Retention shall be due and payable within 30 days of execution of the Uniform Final Acceptance or Equipment turnover, whichever occurs first. If certified payroll reporting is required, KONE will submit the requested reporting in the format of the U.S. Department of Labor form WH 347 & WH 348.
The Price does not include Textura or any other special billing requirements, which can be added via change order at a rate of 0.3% of the Price.
5. INSTALLATION
Customer shall be responsible for procurement and cost of all permits, except permits related to installation of the Equipment. Where KONE’s scope of work or other responsibilities include the obligation to utilize materials and/or finishes resembling or identical to those pre-existing in the building, KONE shall use reasonable efforts to procure such materials and Customer acknowledges and accepts that the materials and/or finishes reasonably available may not be in all respects identical to those pre- existing in the building. This Proposal is conditioned upon KONE using its standard installation method. The installation of the Equipment shall start after Customer has completed all work set forth in Bid Attachment B and any other documents describing site requirements (“Site Requirements”), all of which are incorporated by reference herein. Within two (2) weeks prior to the scheduled delivery date for KONE’s materials, KONE shall conduct a standard visual site survey to verify that the Site Requirements are complete and notify Customer if there are outstanding deficiencies preventing KONE from beginning installation.
KONE’s site survey may include, but is not limited to, inspection of site access, working and safety conditions on site, wear and tear of any existing structures or surfaces, and planning of any dismantling or removal of existing equipment, components and materials, where applicable. KONE shall not be deemed to have surveyed any hidden structures, latent defects, subsurface conditions, or other non-visible matters, including but not limited to searching for hazardous substances and/or materials, which shall be subject to Section 16. If KONE’s site survey reveals any deficiencies, KONE shall be entitled to delay the start of installation and Customer shall be responsible for all additional costs incurred by KONE, including without limitation, costs associated with: labor reallocation, re- directing materials to and storage in a KONE Distribution Center, additional labor for double handling of materials, and additional trucking, freight and insurance.
Once the Site Requirements are completed, the start of installation shall be subject to the availability of labor and the delivery of material, if applicable.
KONE’s work shall be performed during regular union working hours of regular working days, Monday to Friday, statutory holidays excluded. If overtime is mutually agreed upon and performed, the additional costs for such work shall be added to the Price at KONE’s standard overtime rates. If the installation cannot be performed in an uninterrupted manner for any reason beyond KONE's control, Customer shall store the Equipment at Customer's cost and compensate KONE for any costs caused by such delay including, but not limited to, double handling of Equipment and demobilization. KONE shall not be required to perform overtime or any Customer directed change to its work (“Extra Work”) without an executed change order. No action by KONE, including but not limited to, performing Extra Work without an executed change order, shall be a waiver of KONE’s right to seek payment for Extra Work performed.
KONE shall be entitled to an extension of time and an equitable adjustment in the Price, including but not limited to, any increased costs of labor, including overtime, resulting from any change of schedule, re-direction of KONE personnel to another work area, acceleration, or out of sequence work.
KONE shall take reasonable methods to protect its work-in-place while KONE is actively on site and until execution of a KONE Uniform Final Acceptance, which is incorporated by reference herein. Should damage occur to KONE property, material or work-in- place by fire, water, theft or vandalism, Customer shall compensate KONE for said
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damages.
Additionally, the Customer is solely responsible for ensuring that the equipment maintenance contractor, if not KONE, does not disturb, delay or interfere with KONE’s work. KONE shall abide by Customer’s safety policies and procedures to the extent such policies and procedures are not in conflict with KONE’s Safety Policy. Testing and/or security features of Equipment must be completed before Equipment turnover. KONE is not responsible for damages, either to Equipment or the building, or for any personal injury or death, arising out of or resulting from any code required safety tests performed on Equipment or hoistway access granted by Customer to other trades.
6. TEMPORARY USE
Temporary use of certain types of Equipment may be permitted, provided the use period allows adequate time for Equipment restoration for final turnover and Customer executes KONE’s Temporary Use Agreement. Temporary use shall be invoiced separately and subject to payment terms in Section 4 herein. At the end of temporary use, Customer shall return the Equipment to KONE in "like new" condition.
7. HAZARDOUS MATERIALS
KONE’s work shall not include any abatement or disturbance of asbestos-containing material (ACM), presumed asbestos-containing materials (PACM) or other hazardous materials (i.e., lead, PCBs) (collectively “HazMat”). KONE shall have the right to discontinue its work in any location where suspected HazMat is encountered or disturbed. Any HazMat removal or abatement, or delays caused by such, required for KONE to perform its work shall be the customer’s sole responsibility and expense. Prior to the execution of the contract, the owner and/or the general contractor are responsible for providing written notification to KONE of the existence of HazMat in any location where KONE’s work will be performed. Should the customer require elevator personnel to position/reposition the elevator equipment to allow the customer’s abatement company to perform abatement work, KONE will present a separate proposal for additional work to the customer.
8. TITLE AND RISK TO EQUIPMENT
Title to and ownership of all Equipment intended for incorporation in KONE’s work, whether installed or stored on or off site, shall remain with KONE until final payment is made. Risk of loss in KONE’s work and Equipment passes to Customer upon delivery to the site or off-site storage.
Any tools, devices, or other equipment that KONE uses to perform its work or monitor the Equipment remains the sole property of KONE. If this Proposal terminates or expires for any reason, Customer will give KONE access to the premises to remove such tools, devices or equipment at KONE’s expense.
9. TURNOVER
Prior to turnover, KONE must receive a final punch list. Upon turnover, KONE requires a signed Uniform Final Acceptance. KONE shall provide its standard electronic O&M manuals with CD-ROMs in electronic format, if applicable, upon execution of the Uniform Final Acceptance. Standard KONE samples shall be provided upon request.
No mock-ups or video training are included in the Price.
10. DELAY
KONE shall not be liable for any loss, damage, claim, or delay due to any cause beyond KONE's control, including, but not limited to, acts of domestic or foreign government (including a change in law), strikes, lockouts, work interruption or other labor disturbance, delays caused In the event of such delays, KONE shall be entitled to an extension in time equal to the length of such delay affecting KONE and an equitable adjustment in the Price. Customer shall compensate KONE for labor and material cost escalations resulting from Project delays not caused by KONE, which extend completion of KONE’s work beyond the end of the current calendar year. Customer is on notice that IUEC labor rates increase annually.
11. LIMITED WARRANTY
For one (1) year after the acceptance date set forth in the signed Uniform Final Acceptance, date of Equipment turnover, or date of Customer’s use of Equipment (unless such use is pursuant to the Temporary Use Agreement), whichever occurs first, KONE warrants Equipment against defect in workmanship and material. The warranty excludes remedy for damage or defect caused by abuse, misuse, vandalism, neglect; repairs, alteration or modifications not executed by KONE; improper or insufficient maintenance, improper operation, characteristics of the building such as electrical power or security features, natural or other catastrophe such as flood, fire, or storm, or normal wear and tear and normal usage. The warranty excludes training or instruction in the proper operation or maintenance of Equipment. Specific noise ratings and energy efficiencies cannot be guaranteed due to different building characteristics and ambient noise levels. Customer’s remedy is limited to repair or replacement of a defective part, in KONE’s sole discretion, and excludes labor.
12. INDEMNIFICATION
KONE shall only indemnify and hold Customer harmless for claims, damages, losses or expenses, but excluding loss of use (“Claims”) due to bodily injury, including death, or tangible property damage (other than the Project or KONE’s work itself) to the extent caused by KONE’s negligent acts or omissions. KONE shall not indemnify Customer for any other Claims. Customer agrees to indemnify and hold KONE harmless from any Claim for bodily injury, including death, or tangible property damage in connection with the use or operation of the Equipment. Each party shall defend itself in the event of a Claim.
13. INTELLECTUAL PROPERTY
KONE shall retain title and ownership of all intellectual property rights relating (directly or indirectly) to the Equipment provided by KONE, including but not limited to software or firmware (whether in the form of source code, object code or other), drawings, technical documentation, or other technical information delivered under the Proposal. KONE grants Customer a non-exclusive and non-transferable license and right to use the software and firmware in connection with the use and maintenance of the Equipment. Customer shall not use any drawings, technical documentation or other technical information supplied by or on behalf of KONE for any purposes other than those directly related to the Proposal or to the use and maintenance of the Equipment.
Customer shall not in any form copy, modify or reverse engineer the software, or give access to the software for such use to any third party without KONE’s prior written consent.
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by others, fire, explosion, theft, floods, inclement weather, riot, civil commotion, war, malicious mischief, infectious diseases, epidemic, pandemic, quarantine, border or port of entry and exit restrictions or acts of God.
14. INSURANCE
In lieu of any Customer insurance requirements, KONE shall provide its standard certificate of insurance, which shall be deemed to satisfy all insurance requirements for this Project. KONE shall not provide loss runs, insurance rate information, copies of its insurance policies or any other information which KONE considers confidential. KONE shall not provide coverage for professional (E&O) liability, pollution liability, data privacy/security, or no-fault medical payments. If the Project is covered by a Wrap Up Insurance Program, KONE agrees to participate provided there is no cost to KONE, no reduction in the Price, and subject to KONE’s review of the proposed program. If KONE’s primary limits are sufficient to satisfy insurance coverage requirements, excess/umbrella liability will not be required or if excess/umbrella is required, KONE’s excess coverage does not follow form although typically provides broader coverage than KONE’s primary policies. The excess coverage is not AM Best Rated nor licensed to do business within the jurisdiction although the carrier has strong Standard & Poor’s and Moody’s financial ratings that may be evidenced upon request.
15. LIMITATION OF LIABILITY
In no event shall either party be liable to the other party for any consequential, special, punitive, exemplary, liquidated, incidental, or indirect damages (including, but not limited to, loss of profits or revenue, loss of goodwill, loss of use, increase in financing costs) (collectively, "Consequential Damages") that arise out of or relate to this Proposal even if such party has been advised of the possibility of such Consequential Damages. The limitation set forth in this section shall apply whether the claim is based on contract, tort or other theory.
16. CONCEALED OR UNKNOWN CONDITIONS
If during the course of its work, KONE encounters conditions at the site that are subsurface, differ materially from what is represented in the contract documents, or otherwise concealed physical conditions, KONE shall be entitled to an extension of time and additional costs for the performance of its work, which shall not be subject to any payment conditions or contingencies.
17. TECHNICAL SURVEY
KONE’s Price and obligations under this Proposal are subject to a technical survey to be performed on Customer’s existing units within 90-days of the effective contract start date. If a safety hazard or code violation is identified during KONE’s technical survey, Customer shall immediately remove the unit from service until repairs are performed.
KONE is not obligated to perform tests, correct outstanding violations or deficiencies that were not addressed by the prior service provider and/or the owner, or make related necessary repairs or component replacements on the unit. If additional work is necessary, KONE shall provide a separate proposal or recommendation for such work.
Customer agrees to indemnify, defend, and hold KONE harmless for any claims arising out of Customer's failure to comply with KONE's recommendations and proposal, and any obligation on the part of KONE to indemnify or defend Customer with regard to such claim shall be null and void. If Customer does not immediately approve KONE’s proposal or recommendation, KONE reserves the right to terminate this Proposal/contract without penalty.
18. TERMINATION
If a party materially breaches this Proposal, the other party shall provide written notice of the breach and a reasonable time to cure the breach, but in no event less than 30 days. If the breaching party fails to cure the breach within the specified time period, the non-breaching party may terminate the Proposal upon 15 days written notice to the other party. If KONE notifies Customer of a material breach pursuant to this paragraph, KONE may temporarily suspend its work without liability.
19. GOVERNING LAW AND DISPUTE RESOLUTION
The parties agree that this Proposal shall be governed by the laws of the state where the Project is located, and venue for disputes shall be located in that state. KONE does not agree to participate in arbitration proceedings.
20. PRICE ADJUSTMENT
If the materials are manufactured more than twelve months after the Contract date, KONE shall be entitled to an equitable adjustment in the Price, including but not limited to, any increased costs between the time the Contract is signed and the date of manufacture for materials, labor, or shipping. Further, KONE shall be entitled to an equitable adjustment in the Price for any increase in costs resulting from any change in law or tariffs.
21. 24/7 EMERGENCY VIDEO COMMUNICATIONS
Applicable only for projects where KONE 24/7 Emergency Video Communications is included: The KONE 24/7 Emergency Video Communications contract addendum and General Terms and
Conditions for KONE Digital Services must be signed by the Building Owner. This contract addendum requires the Building Owner to pay a fee for audio, video, and data connectivity. This payment obligation, among other provisions, survives termination of any maintenance agreement.
22. MISCELLANEOUS
This Proposal, including the documents incorporated herein by reference, constitutes the entire agreement of the parties and supersedes all prior negotiations, understandings, and representations whether written or oral in relation to the subject matter hereof. Where a conflict or ambiguity exists between this Proposal and any other contract document (including but not limited to, Customer’s drawings and specifications), the terms and conditions of this Proposal shall control. This Proposal may be amended only in writing by the duly authorized representative of both parties. This Proposal may be executed in one or more counterparts. Each counterpart shall be considered an original and all of the counterparts shall constitute a single agreement binding all the parties as if all had signed a single document. For purposes of executing this Proposal, a document signed by electronic means is to be treated as an original document.
The failure of either party to insist upon performance or strict performance of any of the terms or conditions of this Proposal shall not be deemed a waiver of any rights or remedies that such party may have or a waiver of any subsequent breach or default under this Proposal. Neither party may assign or transfer the benefit or burden of this Proposal without prior written consent of the other party.
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Appendix 4: Bid Attachment “B” / Site Requirements & Work by Other Trades
The work described below is a summary of work to be performed by others (“Work by Other Trades”) that may be required in conjunction with the elevator modernization performed by KONE (the “Work”). Purchaser shall provide any and all building electrical, structural and mechanical system upgrades required for code compliance, life safety, and proper equipment installation and operation. The Authorities Having Jurisdiction (AHJ) may require additional remedial or preparatory work. All required remedial or preparatory work shall be performed by properly licensed trade contractors in compliance with applicable codes and based on a schedule of performance that allows for uninterrupted progress of the Work. Under no circumstances shall KONE be responsible for any cost associated with the performance of remedial work by others. Purchaser shall provide the following unless specifically included in KONE’s Work:
1. ELECTRICAL
● A properly rated three phase fused disconnect switch, externally operable and lockable in the open position,
located as required by code. Accommodate any increases
in motor size or feeder loads.
● A dedicated 110 VAC fused disconnect switch, externally operable and lockable in the open position adjacent to the machine room door for cab lighting and ventilation, located as required by code.
● Shunt-trip disconnect if fire sprinklers are present in machine room or hoistway.
● GFI 120 VAC convenience outlets in machine room and
pit.
● Separate outlet in the pit area if a sump pump is installed. ● Telephone line service brought to the elevator machine room for emergency communication device.
● Any required RF shielding of TV or radio transmitters, antennae and/or wave-guides.
● Conduit with pull boxes from each elevator bank to any remote fire control or communication panels specified.
● Provide a separate 15-amp, 115 VAC fused service with ground (powered by building emergency power system,
when available) for KONE 24/7 Emergency
Communications, when specified. Must include the means
to disconnect each service and lock-off in the “open”
position (NFPA 70 article 620.22 and 620.53 or CEC
article 38.22 and 38.53).
If required by building code: standby/emergency power, sufficiently sized to provide power of permanent characteristics to each elevator’s disconnect, simultaneously, upon loss of regular power, including feeders, transfer switches and auxiliary contact signal outputs to elevator controllers.
2. MACHINE ROOM
● A code-compliant machine room. Provide or maintain fire rating as required by building code.
● Fire-rated door for access into the machine room. Door shall be self-closing and self-locking, operable from inside the room without the use of a key.
● Independent ventilation or an air conditioning system for the elevator machine room, to assure temperature is
maintained between 65 degrees and 95 degrees
Fahrenheit.
● Fire extinguisher inside machine room.
● Minimum clear machine room height of 7’-0”.
● Suitable lighting that provides a minimum of 19 ftc at floor. ● Removal of any non-elevator related equipment and
materials from within the machine room and proper
disposal of oil and other hazardous or non-hazardous
substances and materials.
3. HOISTWAY
● A code-compliant hoistway, constructed in accordance
with KONE's requirements and specifications. Provide or maintain fire rating as required by building code.
● Patching of all holes in hoistway walls with fire rated material.
● Beveling all ledges within hoistway measuring over 4”. ● Removal of any non-elevator related equipment and
materials from within the hoistway and proper disposal of oil and other hazardous or non-hazardous substances and materials.
● A guarded light fixture and light switch in pit. Switch must be located 42” above the lowest landing floor level.
● A means of displacing water located in the pit and
containing and disposing of oil, chemicals, and other
substances in compliance with environmental laws and
regulations (KONE assumes no responsibility for
discharge of oil, chemicals, and other substances into
storm water systems, sanitary sewer systems, retention
ponds, etc.). Elevator hoistway ventilation to the outside atmosphere as required by building code.
4. FIRE SERVICE
● Fire alarm smoke detectors with wiring and relays in the machine room terminating at elevator controller.
● Fire alarm initiating devices must be located in front of each elevator entrance as well as in the machine room
and at the top of the hoistway.
● Where sprinklers exist in the machine room and/or
hoistway, a fire alarm initiating device within 12” of each sprinkler head.
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5. ACCESS INTEGRATION/SECURITY
● Our proposal includes KONE logic and provisions for the specified Touchscreen(s), Keypad Destination Operating
Panel(s), Monitoring System(s) and Multi-Media
Equipment.
● Card Readers and/or any additional required hardware & software for proper functionality of access control/security system(s) shall be furnished and installed by others.
● Any required software to ensure proper communication
between KONE control system(s) and building system(s)
shall be the responsibility of others.
● A designated 115V 15A circuit is required at each of the remote monitoring stations.
● KONE recommends a minimum 100 Mbit/s Ethernet for
each of the following application(s): Integrated
Touchscreen/Keypad Destination Operating Panels,
Monitoring System, Multi-Media Equipment, and Card
Readers.
6. COUNTERWEIGHTING
● Pricing is based upon the existing car to counterweight weight ratio being consistent with elevator industry
standards. This is defined as the counterweight weight
being equal to the empty car weight plus 40%. The actual assemblies will be weighed during the modernization
process. If modifications are required to correct the
existing weight balance, these modifications will be
provided at additional cost.
7. RK1 FUSES AND CIRCUIT BREAKERS
● Fuses are to be current limiting class RK1 or equivalent.
Circuit breakers are to have current limiting characteristics equivalent to RK1 fuses. Provisions of these fuses are the responsibility of others, not KONE.
8. GENERAL
● Access to the building to perform the Work and for
deliveries with dry, protected storage adjacent to the
hoistway.
● Cutting of existing walls, floors and finishes, together with all repairs made necessary by such cutting or changes,
e.g. cutting of lobby walls for flush hall fixtures and removal of encroaching lobby features such as wallmounted ashtrays. Removal, replacement, and/or repair of any mirrors, millwork, plaster, stone or other special hall finishes.
● All work of other trades must be complete and ready at time of first elevator inspection, or elevator will not be released for operation by the AHJ. If the AHJ does allow temporary operation under a Temporary Operating
Inspection (TOI), any associated costs shall be
Purchaser’s responsibility.
● Our tender is based on suitable site conditions, material and tooling storage space, and bathroom access being
available on site.
● Safe working environment must be provided and
supported by provision for adequate entrance protection, means of hoisting, hoistway dividing screens, and
protection of floors walls and doors etc.
● Emergency evacuation procedures to be clearly defined where required. Subject to site survey and actions agreed. ● Any portion of the Work that is subject to the permissions of local authorities beyond the elevator permits must be identified to KONE. Responsibility for permits to be
agreed. Permits and appropriate signage indicating any
changes to pedestrian access routes for building users
must be in place prior to start of the Work.
● Elevator installation methods requires the integrity of the existing Safety Gear and Overspeed protection devices,
and are therefore subject to verification of suitability prior to commencement of the work. Any remedial work
required or alternative solution is not included in this tender.
● If KONE 24/7 Emergency Video Communications: For
units with travel greater or equal to 60 ft (18 m), or if located in a seismic zone and the code year is 2016 or
later (regardless the travel): Customer will provide a
dedicated Windows-based PC or laptop with Chrome
browser and 24-hour/day Internet access. This computer
must be accessible by emergency personnel to
communicate through voice and text with people in the
elevator and to have a video display of the cab interior.
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(End of Appendix A)
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator Appendix B to Contract
GENERAL CONDITIONS
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ARTICLE 1 TERMS OF PERFORMANCE
1.01 Construction Services Agreement (Agreement) Force and Effect. The provisions of the Agreement and other Contract Documents constitute the entire agreement between the Contractor and Owner regarding the Work described herein. No representation, term or covenant not expressly specified in the Contract Documents shall, whether oral or written, be a part of this agreement. The Agreement and other Contract Documents shall govern the Work described herein (whenever performed), and shall supersede all other purchase orders and agreements between Contractor and Owner, and any proposal, with respect to the Work described herein.
1.02 No Modification or Waiver. The Contract Documents may not be modified, nor may compliance with any of its terms be waived, except by written instrument executed and approved by fully authorized representatives of Owner and Contractor. Contract Documents headings are for convenience only and do not affect the construction of the Contract Documents.
1.03 Performance of Work/No Assignment. Time is of the
essence in the performance of the Work. Contractor will perform the Work in a skillful and workmanlike manner; comply fully with criteria established by Owner, and with applicable laws, codes, and all applicable industry standards. Contractor shall maintain its work area in a clean and sanitary condition, clear debris and trash at the end of each work day, and shall not damage or disrupt any property unless specifically part of the scope of the Agreement. Contractor shall not contract any portion of the Work or otherwise assign the Agreement without prior written approval of Owner, and any assignment without Owner’s prior written approval shall be null and void. (Contractor shall remain responsible for compliance with all terms of the Contract Documents, regardless of the terms of any such assignment.) The Contractor shall permit Owner (or its designees) access to the work area, Contractor’s shop, or any other facility, to permit inspection of the Work at all times during construction and/or manufacture and fabrication. The granting of any progress payment, and any inspections, reviews, approvals or oral statements by any Owner representative, or certification by any governmental entity, shall in no way limit Contractor’s obligations under the Contract Documents. Either party’s waiver of any breach, or the omission or failure of either party, at any time, to enforce any right reserved to it, or to require strict performance of any provision of the Contract Documents, shall not be a waiver of any other right to which any party is entitled, and shall not in any way affect, limit, modify or waive that party’s right thereafter to enforce or compel strict compliance with every provision hereof. Owner shall have, at all times, set-off rights with respect to any payment and Contractor’s failure to perform the terms of the Contract Documents.
ARTICLE 2 LEGAL AND MISCELLANEOUS
2.01 Records and Payment Requests. Contractor shall submit all billings with all necessary invoices or other appropriate evidence of proper performance, after which Owner shall make payment within thirty (30) days. Upon Owner’s written request, Contractor shall make available to Owner, its authorized agents, officers, or employees, any and all ledgers, books of accounts, invoices, vouchers, cancelled checks, and other records or documents evidencing or relating to the Work or the expenditures and disbursement charged to Owner, and all correspondence, internal memoranda, calculations, books and accounts, records documenting its Work under the Agreement, and invoices, payrolls, timecards, records and all other data related to matters covered by the Agreement. Contractor shall furnish to Owner, its authorized agents, officers, or employees, such other evidence or information as Owner may require with regard to the Work or any such expenditure or disbursement charged by Contractor. Contractor shall maintain all such documents and records prepared by or furnished to Contractor during the course of performing the Work for at least five years following completion of the Work, except that all such items pertaining to hazardous materials shall be maintained for at least thirty (30) years. Contractor shall permit Owner to audit, examine and make copies, excerpts and transcripts from such records. The State of California or any federal agency having an interest in the subject of the Agreement shall have the same rights conferred to Owner by this section. Such rights shall be specifically enforceable.
2.02 Independent Contractor. Contractor is an independent Contractor and does not act as Owner’s agent in any capacity, whatsoever. Contractor is not entitled to any benefits that Owner provides to Owner employees including, without limitation, insurance, worker’s compensation benefits or payments, pension benefits, health benefits or insurance benefits. Terms within the Contract Documents regarding directives apply to and concern the result of the Contractor’s provision of Work not the means, methods, or scheduling of the Contractor’s Work. Contractor shall be solely responsible for the means, methods, techniques, sequences and procedures with respect to its provision of Work under the Contract Documents. Contractor shall pay all payroll taxes imposed by any governmental entity and will pay all other federal, state, or local taxes not specifically identified in the Contract Documents as Owner’s responsibility.
2.03 Indemnity/Liability. Contractor shall defend, indemnify, and save harmless, to the fullest extent permitted by law, the Owner and each of its council members, officers, directors, representatives, agents, employees, and volunteers (Owner Indemnities), against all claims, suits, actions, loss, cost, damage, expense, and liability arising from or related to bodily injury to or death of any person or damage to any property, or resulting from any breach and/or Contractor’s negligence in performing the Work pursuant to the Contract Documents.
Notwithstanding any provision of the Contract Documents, Owner shall not be liable to Contractor or anyone claiming under it, in contract or tort, for any special, consequential, indirect or incidental damages arising out of or in connection with the Contract Documents or the Work. Owner’s rights and remedies, whether under the Agreement or other applicable law, shall be cumulative and not subject to limitation. Contractor’s obligations to defend, indemnify, and save harmless the Owner Indemnities are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained within this Agreement.
Contractor’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law.
2.04 Defective Work; Warranties. Contractor warrants that all construction services shall be performed in accordance with generally accepted professional standards of good and sound construction practices, all Contract Documents requirements, and all laws, codes, standards, licenses, and permits. Contractor warrants that all materials and equipment shall be new, of suitable grade of their respective kinds for their intended uses, and free from defects. Contractor hereby grants to Owner for a period of one year following the date of completion its unconditional warranty of the quality and adequacy of all of the Work including, without limitation, all labor, materials and equipment provided by Contractor and its Subcontractors of all tiers. If either prior to completion of the Work, or within one year after completion, any Work (completed or incomplete) is found to violate any of the foregoing warranties (Defective Work), Contractor shall promptly, without cost to Owner and in accordance with Owner’s written instructions, correct, remove and replace the Defective Work with conforming Work, and correct, remove and replace any damage to other Work or other property resulting therefrom. If Contractor fails to do so, Contractor shall pay all of the Owner’s resulting claims, costs, losses and damages. Where Contractor fails to correct Defective Work, or defects are discovered outside the correction period, Owner shall have all rights and remedies granted by law.
2.05 Compliance with Laws; Conflict of Interests. Contractor agrees to comply with all applicable federal and state laws, regulations and policies, as amended, including those regarding discrimination, unfair labor practices, anti-kick-back, collusion, and the provisions of the Americans with Disability Act. Contractor, its officer, partners, associates, agents, and employees, shall not make, participate in making, or in any way attempt to use the position afforded them by the Contract Documents to influence any governmental decision in which he or she knows or has reason to know that he or she has a financial interest under applicable state, federal and local conflict of interest regulations. Contractor warrants that no person or agency has been employed or retained to solicit or obtain the Agreement upon an agreement or understanding for a contingent fee, except a bona fide employee or agency. Contractor shall not engage in unlawful employment discrimination including, but not limited to, discrimination based upon a person’s race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, gender, citizenship, sexual orientation, or sexual identity as prohibited by state or federal law.
2.06 Termination; Suspension; Disputes. Owner may direct Contractor to terminate, suspend, delay, interrupt or accelerate Work, in
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whole or in part, for such periods of time as Owner may determine in its sole discretion. Owner will issue such directives in writing, and may do so, in whole or in part, for its convenience or due to Contractor’s fault.
Owner will compensate Contractor for extra costs resulting from such directives only to the extent that Owner issues such directives for its convenience and not due to Contractor’s fault (but Owner shall not compensate Contractor for costs, profit or overhead anticipated to be earned or incurred on Work terminated for Owner’s convenience.) Contractor shall continue its Work throughout the course of any dispute, and Contractor’s failure to continue Work during a dispute shall be a material breach of the Contract Documents. All claims by Contractor against Owner shall be submitted in writing to Owner, and shall be governed by Public Contract Code Sections 9204 and 20104 – 20104.6, after which time the one year time period in Government Code Section 911.2 shall be, pursuant to Government Code Section 930.2, reduced to 90 days. Should Contractor be terminated for default, and such termination is subsequently determined to be wrongful, such termination will be converted to a termination for convenience as provided herein.
2.07 Execution; Venue; Limitations. The Agreement shall be deemed to have been executed in City of Pacifica, California.
Enforcement of the Contract Documents shall be governed by the laws of the State of California, excluding its conflict of laws rules. Except as expressly provided in the Contract Documents, nothing in the Contract Documents shall operate to confer rights or benefits on persons or entities not party to the Agreement. As between the parties to the Agreement, any applicable statute of limitations for any act or failure to act shall commence to run on the date of Owner’s issuance of the final Certificate for Payment, or termination of the Contract Documents, whichever is earlier, except for latent defects, for which the statute of limitation shall begin running upon discovery of the defect and its cause.
2.08 Employee Wages; Records; Apprentices. Contractor shall pay prevailing wages to its employees on any contract in excess of $1,000.00. Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by Director of the State of California Department of Industrial Relations, are on file at the City’s Public Works Department and may be obtained from the California Department of Industrial Relations website
[http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm].
Contractor shall comply with the 8-hours per day/40 hours per week/overtime/working hours restrictions for all employees, pursuant to the California Labor Code. Contractor and all subcontractors shall keep and maintain accurate employee payroll records for Work performed under the Agreement. The payroll records shall be certified and submitted as required by law, including Labor Code Sections 1771.4 (if applicable) and 1776, including to the Labor Commissioner no less frequently than monthly. Contractor shall comply fully with Labor Code Section 1777.5 in the hiring of apprentices for work relating to the Agreement. If the Agreement exceeds $2,000 and is funded with federal funds, then Contractor shall pay federal Davis Bacon wages and comply with applicable federal requirements.
2.09 Mandatory Contractor and Subcontractor Registration.
Pursuant to Labor Code Section 1771(a), Contractor represents that it and all of its Subcontractors are currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5. Contractor covenants that any additional or substitute Subcontractors will be similarly registered and qualified.
2.10 Worker’s Compensation. Pursuant to Labor Code Sections 1860 and 1861, in accordance with the provisions of Section 3700 of the Labor Code, every contractor will be required to secure the payment of compensation to his employees. Contractor represents that it is aware of the provisions of Labor Code Section 3700 that require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and Contractor shall comply with such provisions before commencing the performance of the Work.
2.11 Construction Performance Bond; Construction Labor
and Materials Payment Bond; Securities in Lieu of Retention Escrow Account.
A. If Contract Sum under the Agreement exceeds (or is expected to exceed) $25,000, Contractor shall provide a construction performance bond in form attached hereto as Appendix D – Construction Performance Bond and a construction labor and material payment bond, in accordance with Civil Code Section 9550 and in form attached hereto Appendix E – Construction Labor and Materials Payment Bond.
Contractor may not substitute cash in lieu of the required bond(s).
B. If the Agreement specifies performance retention, Contractor may elect to substitute securities or direct payment to an escrow account, pursuant to Public Contract Code Section 22300 (incorporated herein by this reference).
2.12 Earthwork and Underground Facilities. If the Work
involves digging trenches or other excavations that extend deeper than four feet below the surface, Contractor shall notify Owner in writing of any material that Contractor believes may be hazardous waste that is required to be removed in accordance law, subsurface or latent physical conditions at the site differing from those indicated by information about the site made available to bidders prior to the deadline for submitting bids, or unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract Documents, pursuant to Section 7104 of the Public Contract Code. For any Work involving trench shoring that costs in excess of $25,000, Contractor shall submit and Owner (or a registered civil or structural engineer employed by Owner) must accept, in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches, pursuant to Labor Code Section 6705. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer. Consistent with Government Code Section 4215, as between Owner and Contractor, Owner will be responsible for the timely removal, relocation, or protection of existing main or trunk line utility facilities located on the Site only if such utilities are not identified in the Contract Documents or information made available for bidding.
2.13 Public Records Act. Contractor is aware that this Agreement and any documents provided to the Owner may be subject to the California Public Records Act and may be disclosed to members of the public upon request. It is the responsibility of the Contractor to clearly identify information in those documents it considers tobe confidential under the California Public Records Act. To the extent that Owner agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public.
2.14 Claims.
A. Should any clarification, determination, action or inaction by Owner, Work, or any other event, in the opinion of Contractor, exceed the requirements of or not comply with Contract Documents, or otherwise result in Contractor seeking additional compensation in time or money or damages for any reason (collectively "Disputed Work"), then Contractor and Owner will make good faith attempts to resolve informally any and all such issues, claims and/or disputes. Before commencing the Disputed Work, or within seven Days after Contractor's first knowledge of the Disputed Work, whichever is earlier, Contractor shall file a written notice and cost proposal for the Disputed Work with City stating clearly and in detail its objection and reasons for contending the Work or interpretation is outside the requirements of Project Documents. If a written notice and cost proposal for Disputed Work is not issued within this time period, or if Contractor proceeds with the Disputed Work without first having given the notice required by this paragraph, Contractor shall waive its rights to further claim on the specific issue.
B. Owner will review Contractor's timely notice and cost proposal for Disputed Work and provide a decision. If, after receiving the decision, Contractor disagrees with it or still considers the Work required of it to be outside of the requirements of Project Documents, it shall so notify Owner, in writing, within seven Days after receiving the decision, by submitting a notice of potential claim, stating that a formal claim will be issued. Within 30 Days of receiving the decision, Contractor shall submit its claim in the form specified herein and all arguments, justification, cost or estimates, schedule analysis, and detailed documentation supporting its position. Contractor's failure to furnish notification within seven Days and all justifying documentation within 30 Days will result in Contractor waiving its right to the subject claim.
C. Claim Format
1. A. Contractor shall submit the claim justification in the following format:
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(a) Cover letter and certification;
(b) Summary of claim, including underlying facts, entitlement, schedule analysis, quantum calculations, Project provisions supporting relief;
(c) List of documents relating to claim including Specifications, Drawings/Plans clarifications/requests for information, schedules, notices of delay, cost calculations and any others;
(d) Chronology of events and correspondence:
(e) Analysis of claim merit;
(f) Analysis of claim cost; and
(g) Attach supporting documents referenced in paragraph
2.14,C.1(c), above.
D. Required Provisions on Contract Claim Resolution
1. Public Contract Code Section 9204 specifies provisions on resolving contract claims of any size, and Public Contract Code Section 201014, et seq., specifies required provisions on resolving contract claims less than $375,000. Those statutes constitute a part of this Contract. In the event any other Contract provision violates such statutes, the applicable statute controls.
(End of Appendix B)
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator Appendix C to Contract
INSURANCE
City of Pacifica Contract 12/22 v1 00 5205 - 7
1. Commercial General Liability Insurance, written on an “occurrence” basis with coverage at least as broad as Insurance Services Office (ISO) form CG 00 01, which shall provide coverage for bodily injury, death and property damage resulting from operations, liability for slander, false arrest and invasion of privacy, blanket contractual liability, broad form endorsement, and completed operations, personal and advertising liability, with limits of not less than $5,000,000 general aggregate and $5,000,000 each occurrence. All self-insurance, self-insured retentions, and deductibles must be declared and approved by the Owner.
2. Business Automobile Liability Insurance using ISO Business Auto Coverage form CA 00 01 (or equivalent), with limits not less than $5,000,000 each accident including coverage for owned, non-owned and hired vehicles. All self-insurance, self-insured retentions, and deductibles must be declared and approved by the Owner.
3. Workers’ Compensation Employers’ Liability limits not less than $1,000,000 each accident, $1,000,000 per disease and $1,000,000 aggregate. Contractor’s Workers’ Compensation Insurance policy shall contain a Waiver of Subrogation against the Owner, its council members, officers, directors, officials, agents, employees and volunteers. In the event Contractor is self-insured, it shall furnish Certificate of Permission to Self-Insure signed by Department of Industrial Relations Administration of Self-Insurance, State of California.
4. Builder’s Risk Insurance including, without limitation, coverage against loss or damage to the Work by fire, lightening, wind, hail, aircraft, riot, vehicle damage, explosion, smoke, falling objects, vandalism, malicious mischief, collapse, and other such hazards as are normally covered by such coverage. Such insurance shall be in amount equal to the full replacement value on an "all-risk" or special causes of loss basis, including earthquake and flood (without deduction for depreciation and subject to stipulated value in lieu of average clause) of all construction constituting any part of the Work, excluding the cost of excavations, of grading and filling of the land, and except that such insurance may be subject to deductible clauses not to exceed $10,000 for any one loss.
The Contractor shall be the named insured, and the Owner and subcontractors of any tier shall be named as insureds. Such insurance will not cover loss or damage to Contractor’s equipment, scaffolding or other materials not to be consumed in the construction of the Work. The insurer shall waive all rights of subrogation against Owner.
5. Any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the Owner Indemnities as Additional Insureds. The requirements for coverage and limits shall be the greater of either the minimum coverage and limits specified in this Agreement or the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured.
6. Insurance policies in this Appendix C shall contain an endorsement containing the following terms:
6.01 Owner Indemnities shall be named as Additional Insureds, but only with respect to liability arising out of the activities of the named insured, and there shall be a waiver of subrogation as to each named and Additional Insured. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Owner has received a waiver of subrogation endorsement from the insurer.
6.02 The policies shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the company’s liability.
6.03 Written notice of cancellation, non-renewal or of any material change in the policies shall be mailed to City of Pacifica thirty (30) days in advance of the effective date thereof.
6.04 Contractor insurance shall be primary insurance as to Owner and no other insurance or self-insured retention carried or held by any named or Additional Insureds other than Contractor shall be called upon to contribute to a loss covered by insurance for the named insured.
6.05 Certificates of Insurance and Endorsements shall have clearly typed thereon the Project Name, shall clearly describe the coverage and shall contain a provision requiring the mailing of written notices of cancellation described in clause 6.03 above. Contractor shall furnish the Owner with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Owner before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The Owner reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
7. All policies of insurance shall be placed with insurers acceptable to Owner. The insurance underwriter(s) must be duly licensed to do business in the State of California and (other than for workers’ compensation) must have an A. M. Best Company rating of A-VII or better. Required minimum amounts of insurance may be increased should conditions of Work, in the opinion of Owner, warrant such increase. Contractor shall increase required insurance amounts upon direction by Owner.
8. The insurance coverage limits may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Owner and Additional Insureds, to the extent required by this Agreement, before the Owner’s insurance or self-insurance may be called upon to protect Owner as a named insured.
9. All self-insured retentions (SIR) must be disclosed to Owner for approval and shall not reduce the limits of liability coverage. Policies containing and SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Contractor/named insured or Owner.
10. Contractor agrees to include with all subcontractors in their subcontracts the same requirements and provisions of this Agreement that is required of Contractor including, without limitation, the indemnity and insurance requirements to the extent they apply to the scope of the subcontractor’s work. Subcontractors hired by Contractor shall agree to be bound to Contractor and Owner in the same manner and to the same extent as Contractor is bound to Owner under this Contract and its accompanying documents. Subcontractors shall further agree to include these same provisions with any lower tier subcontractors. A copy of the indemnity and insurance provisions of this Agreement will be furnished to the Subcontractor upon request. Contractor shall require all subcontractors to provide a valid Certificate of Insurance and the required endorsements included in the subcontract agreement, and will provide proof of compliance to the Owner prior to commencement of any work by the subcontractor.
11. Special Risks or Circumstances: City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. (End of Appendix C)
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator Appendix D to Contract
CONSTRUCTION PERFORMANCE BOND
City of Pacifica Contract 12/22 v1 00 5205 - 8
KNOW ALL PERSONS BY THESE PRESENTS:
12. THAT WHEREAS, City of Pacifica, a political subdivision of the State of California (Owner) has awarded to KONE, INC, as Principal, a Purchase Order Agreement, dated the 28th day of April, 2025 (Agreement), titled THE CCWRP ADMIN BUILDING ELEVATOR
MODERNIZATION PROJECT in the amount of $203,200, which
Agreement is by this reference made a part hereof, for the work described as follows:
13. The CCWRP Admin Building Elevator Modernization Project includes: installing new wiring, conduit, and duct, installing new car door panel, new door operator, restrictive clutch, car door track, gate switch, car hangers, door panel adapters, OEM interlocks, and hoistway pick up rollers. Installing new spring dampened roller guide shoes, safety valves, and submersible power unit and other miscellaneous work, described in Appendix A Scope of Work.
.
14. AND WHEREAS, Principal is required to furnish a bond in connection with the Agreement, guaranteeing the faithful performance thereof;
15. NOW, THEREFORE, we, the undersigned Principal and
_________________________ as Surety are held and firmly bound unto Owner in the sum of 100% OF THE CONTRACT SUM to be paid to Owner or its successors and assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
16. THE CONDITION OF THIS OBLIGATION IS SUCH, that if
Principal, or its heirs, executors, administrators, successors, or assigns approved by Owner, shall promptly and faithfully perform the covenants, conditions, and agreements of the Agreement during the original term and any extensions thereof as may be granted by Owner, with or without notice to Surety, and during the period of any guarantees or warranties required under the Agreement, and shall also promptly and faithfully perform all the covenants, conditions, and agreements of any alteration of the Agreement made as therein provided, notice of which alterations to Surety being hereby waived, on Principal’s part to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify, defend, protect, and hold harmless Owner as stipulated in the Agreement, then this obligation shall become and be null and void; otherwise it shall be and remain in full force and effect.
17. No extension of time, change, alteration, modification, or addition to the Agreement, or of the work required thereunder, shall release or exonerate Surety on this bond or in any way affect the obligation of this bond; and Surety does hereby waive notice of any such extension of time, change, alteration, modification, or addition.
18. Whenever Principal shall be and declared by Owner in default under the Agreement, Surety shall promptly remedy the default, or shall promptly:
18.01 Undertake through its agents or independent contractors, reasonably acceptable to Owner, to complete the Agreement in accordance with its terms and conditions and to pay and perform all obligations of Principal under the Agreement including, without limitation, all obligations with respect to warranties, guarantees, indemnities, and the payment of liquidated damages; or
18.02 Obtain a bid or bids for completing the Agreement in accordance with its terms and conditions, and, upon determination by Owner of the lowest responsible bidder, reasonably acceptable to Owner, arrange for a contract between such bidder and Owner and make available as work progresses (even though there should be a default or a succession of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the Contract Sum, and to pay and perform all obligations of Principal under the Agreement including, without limitation, all obligations with respect to warranties, guarantees, and the payment of liquidated damages; but, in any event, Surety’s total obligations hereunder shall not exceed the amount set forth in the third paragraph hereof. The term “balance of the Contract Sum,” as used in this paragraph, shall mean the total amount payable by Owner to the Principal under the Agreement and any amendments thereto, less the amount Owner paid to Principal.
19. Surety’s obligations hereunder are independent of the obligations of any other surety for the performance of the Agreement, and suit may be brought against Surety and such other sureties, jointly and severally, or against any one or more of them, or against less than all of them without impairing Owner’s rights against the others. Surety may not use Contractor to complete the Agreement absent Owner’s written consent.
20. No right of action shall accrue on this bond to or for the use of any person or corporation other than Owner or its successors or assigns.
21. Surety may join in any proceedings brought under the Agreement and shall be bound by any judgment.
22. Correspondence or claims relating to this bond shall be sent to Surety at the address set forth below.
IN WITNESS WHEREOF, we have hereunto set our hands
this 28th day of April, 2025.
CONTRACTOR AS PRINCIPLE
Company: KONE, INC. (Corp. Seal)
_____________________________________________
Signature
_____________________________________________
Name
_____________________________________________
Title
_____________________________________________
Street Address
_____________________________________________
City, State, Zip Code
SURETY
Company: (Corp. Seal)
_____________________________________________
Signature
_____________________________________________
Name
_____________________________________________
Title
_____________________________________________
Street Address
_____________________________________________
City, State, Zip Code
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator Appendix E to Contract
CONSTRUCTION LABOR AND MATERIAL PAYMENT BOND
City of Pacifica Contract 12/22 v1 00 5205 - 9
KNOW ALL PERSONS BY THESE PRESENTS:
23. THAT WHEREAS, the City of Pacifica, a political subdivision of the State of California (Owner) has awarded to KONE, INC., as Principal, a Construction Services Agreement, dated the 28 th day of
April, 2025 (Agreement), titled THE CCWRP ADMIN BUILDING ELEVATOR MODERNIZATION PROJECT located at 700 Pacific
Coast Highway, Pacifica, CA 94044 in the amount of $203,200, which Agreement is by this reference made a part hereof, for the work described as follows:
The CCWRP Admin Building Elevator Modernization Project includes:
installing new wiring, conduit, and duct, installing new car door panel, new door operator, restrictive clutch, car door track, gate switch, car hangers, door panel adapters, OEM interlocks, and hoistway pick up rollers. Installing new spring dampened roller guide shoes, safety valves, and submersible power unit and other miscellaneous work, described in Appendix A Scope of Work.
.
24. AND WHEREAS, Principal is required to furnish a bond in connection with the Agreement to secure the payment of claims of laborers, mechanics, material suppliers, and other persons as provided by law;
25. NOW, THEREFORE, we, the undersigned Principal and
______________________________ as Surety, are held and firmly bound unto Owner in the sum of 100% OF THE CONTRACT SUM Two Hundred Nineteen thousand and no/100 Dollars ($203,200), for which payment well and truly to be made we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
26. THE CONDITION OF THIS OBLIGATION IS SUCH, that if
Principal, or its heirs, executors, administrators, successors, or assigns approved by Owner, or its subcontractors shall fail to pay any of the persons named in California Civil Code Section 9100, or amounts due under the State of California Unemployment Insurance Code with respect to work or labor performed under the Agreement, or for any amounts required to be deducted, withheld, and paid over to the State of California Employment Development Department from the wages of employees of Principal and subcontractors pursuant to California Unemployment Insurance Code Section 13020 with respect to such work and labor, that Surety will pay for the same in an amount not exceeding the sum specified in this bond, plus reasonable attorneys’ fees, otherwise the above obligation shall become and be null and void.
27. This bond shall inure to the benefit of any of the persons named in California Civil Code Section 9100, as to give a right of action to such persons or their assigns in any suit brought upon this bond. The intent of this bond is to comply with the California Mechanic’s Lien Law.
28. Surety, for value received, hereby expressly agrees that no extension of time, change, modification, alteration, or addition to the undertakings, covenants, terms, conditions, and agreements of the Agreement, or to the work to be performed thereunder, shall in any way affect the obligation of this bond; and it does hereby waive notice of any such extension of time, change, modification, alteration, or addition to the undertakings, covenants, terms, conditions, and agreements of the Agreement, or to the work to be performed thereunder.
29. Surety’s obligations hereunder are independent of the obligations of any other surety for the payment of claims of laborers, mechanics, material suppliers, and other persons in connection with the Agreement; and suit may be brought against Surety and such other sureties, jointly and severally, or against any one or more of them, or against less than all of them without impairing Owner’s rights against the other.
30. Correspondence or claims relating to this bond shall be sent to Surety at the address set forth below.
IN WITNESS WHEREOF, we have hereunto set our hands this 28th day of April, 2025.
CONTRACTOR AS PRINCIPLE
Company: KONE, INC. (Corp. Seal)
_____________________________________________
Signature
_____________________________________________
Name
_____________________________________________
Title
_____________________________________________
Street Address
_____________________________________________
City, State, Zip Code
SURETY
Company: (Corp. Seal)
_____________________________________________
Signature
_____________________________________________
Name
_____________________________________________
Title
_____________________________________________
Street Address
_____________________________________________
City, State, Zip Code
(End of Appendix E)
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Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator Appendix F to Contract
SUPPLEMENTAL CONDITIONS
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1. Plans
Project plans will be required for this Project.
2. Shop Drawings
Shop drawings will be required on this Project.
3. Dust Control and Cleanup
During the construction period, the dust level shall be kept at a minimum. The premises shall also be kept free from the
accumulation of waste material or rubbish. Failure to meet this requirement may result in project shutdown.
The final cleaning shall leave the facilities ready for use with no additional cleanup. Use no cleaning materials which will contaminate the ocean. At the completion of the contract, the Contractor shall remove all remaining litter, debris, materials, temporary structures and equipment from the site. The premises shall be left in a clean and orderly condition acceptable to the City Engineer.
In the event Contractor leaves the job overnight in an unclean condition, City may take action to provide necessary requirements and will deduct the cost of doing so from subsequent Contractor payments.
4. Public Safety
Contractor shall be responsible during all phases of work to provide for public safety and convenience. It shall be the Contractor’s responsibility to provide adequate provisions to assure the safety of the general public throughout the duration of the project, including periods when no work is being performed.
The site shall be thoroughly fenced-off when work is not actively in progress, and lighted barricades shall be placed around any obstructions not encompassed by this fence.
In the event Contractor leaves the job overnight in an unsafe condition, or fails to provide for public safety and convenience, City may take action to provide necessary requirements and will deduct the cost of doing so from subsequent Contractor
payments.
All applicable safety regulations shall be complied with to protect the public and the Contractor’s employees. Strict compliance with Cal/OSHA safety requirements in doing the work is required.
5. Prevailing Wage Rates
The Contractor shall post, in a location on the job site, the prevailing wage rate Determination which is applicable to this project.
6. Discrimination
No discrimination shall be made in the employment of persons upon public works because of the race, sex, age, color, national origin, creed, sexual orientation or marital status of such persons and every contractor for public works violating this section is subject to all the penalties imposed for a violation of Section 1735 of the California Labor Code.
7. Employment of Apprentices
Attention is directed to the provisions in Sections 1777.5 (Chapter 1411, Statutes of 1967) and 1777.6 of the Labor Code concerning the employment of apprentices by the Contractor or any
subcontractor under him.
The Contractor and any subcontractor shall comply with the requirements of Sections 1777.5 and 1777.6 in the employment of apprentices.
Information relative to apprenticeship standards, wage schedules and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.
8. Materials and Supplies
All materials and supplies called for by contractor’s scope and proposal and shall be new unless otherwise specified.
9. Protection
The Contractor shall provide adequate protection for the site and surroundings throughout the work. All damage done to existing property shall be neatly repaired or replaced at the Contractor’s expense. Work shall be executed in a careful and orderly manner with the least possible disturbance to public and occupants of the area.
The Contractor shall conduct his operations in such a manner as to avoid damage to existing improvements and adjacent property.
The Contractor shall, at its sole cost and expense, repair or replace any damage occurring from his operations to pursue completion of the contract. The repairs and replacement shall be to the satisfaction of the Engineer and according to City standards and practices. The minimum repair or replacement shall be equal to surrounding existing conditions or better, and the Engineer’s decision as to acceptable repair or replacement shall be final. The burden of proof as to whether there was existing damage by the Contractor shall rest with the Contractor.
The site shall be maintained in a neat and orderly manner at all times. All existing facilities shall be protected and, if they are damaged or destroyed by the Contractor, shall be restored or replaced in kind at his expense, to their original conditions, or better, as approved by the City or other owner thereof. The site shall be secured at the conclusion of each work day.
10. Inspections
Inspectors, employed by the City, shall be authorized to inspect all work done and all materials furnished. Such inspection may extend to all or any part of the work on the project and to the preparation, fabrication or manufacture of the materials to be used. An inspector is not authorized to revoke, alter or waive any requirements of the specifications. He is authorized to call the attention of the Contractor to any failure of the work or materials to conform to the specifications and contract. He shall have the authority to reject materials or suspend the work until any question at issue can be referred to and decided by the Engineer.
An inspector will in no case act as foreman or perform other duties for the Contractor, nor interfere with the Contractor’s management of the work.
In case the Contractor refuses to suspend operations on verbal order, the inspector giving such verbal order will then issue the order in writing. After placing the order in the hands of the person in charge of the work for the Contractor, the inspector will immediately leave the job. Work done during the absence of the inspector will not be accepted or compensated.
The Contractor shall prosecute work only in the presence of an authorized inspector or authorized representative of the Engineer, and any work done without such inspection shall be at the Contractor’s risk and be subject to rejection.
The Contractor shall furnish the Engineer with every reasonable facility for ascertaining whether or not the work, as performed, is
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SUPPLEMENTAL CONDITIONS
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in accordance with the requirements and intent of the
specifications and contract. The Contractor shall at all times and for any purpose permit the Engineer and any of his
representatives and representatives of the City to have access to the work and the premises used by the Contractor.
11. Defective Materials
Any materials condemned or rejected by the Engineer as not meeting the requirements of these specifications may be branded or otherwise marked by the Engineer and shall, on demand, be at once removed by the Contractor to a satisfactory distance from the work.
If the Contractor does not remove such material within a reasonable time, fixed by written notice, the City may remove and store the materials at the expense of the Contractor. If the Contractor does not pay the expense of such removal and storage within ten days thereafter, the City may, upon ten days’ written notice, sell such materials at auction or at private sale. The City will account for the net proceeds thereof after deducting all the costs and expenses that should have been borne by the
Contractor.
No partial payment, inspection, taking possession of, or other act made or done by the Engineer or the City with respect to the work prior to the final completion and acceptance thereof shall relieve Contractor from performing the Work in accordance with this contract, and shall not affect or prejudice the right of the Engineer or the City to reject any defective work or material or to require the Contractor complete fulfillment of all the provisions of the contract.
If the Engineer deems it expedient and not in the best interests of the City to correct work injured or done not in accordance with the contract, the defective work may be accepted subject to an equitable deduction from the contract price which may be made therefor by the City upon certificate from the Engineer.
12. Temporary Suspension of Work and Extension of Time for Performance
When conditions at the site of the proposed work are
unsatisfactory for the prosecution of a part or all of the work as adjudged by the Contractor and he is forced to suspend such work until reasonable conditions for its prosecution exist, he may request, in writing, that the Engineer authorize such suspension of work. Without the Engineer’s approval, any suspensions violate this specification. Unsatisfactory conditions may include, but not limited to: inclement weather, excessively high surf and/or tides, strikes, excessive high or low ambient temperature and inability of delivery of materials by suppliers for good reason.
When, in the opinion of the Engineer, suspensions of work are beyond the control of both the Contractor and the City (including, without limitation, adverse weather, conditions, earthquakes, force majeure events), the time of performance as set forth in the Agreement will be extended by the Engineer, in writing, by a period of time equal to that lost due to the delay occasioned by the allowed suspension, all at no additional cost to the City and without waiver of remedies for nonproliferation of the work. Such allowed suspension of work shall not relieve the Contractor of his contractual responsibilities.
13. Laws and Regulations
The Contractor shall comply with all local, regional, State and Federal laws and regulations at all times. In addition, the Contractor shall meet the standards set by the Air Quality Act for Noise and Pollution. If there is any conflict between these specifications and provisions and any laws or regulations, the matter shall be brought to the attention of the Engineer immediately.
14. Sound Control Requirements
The Contractor shall comply with all local sound control and noise level rules, regulations and ordinances which apply to any work performed pursuant to the contract.
Each internal combustion engine, used for any purposes on the job or related to the job, shall be equipped with a muffler of a type recommended by the manufacturer. No internal combustion engine shall be operated on the project without said muffler.
15. Air Pollution Control
The Contractor shall comply with all air pollution control rules, regulations, ordinances and statutes which apply to any work performed pursuant to the contract, involving any air pollution control rules, regulations, ordinances and statutes specified in Section 11017 of the Government Code.
16. Water Pollution
General:
Contractor shall take all measures necessary to prevent debris or contamination from entering the ocean. Best Management
Practice (BMP) shall be enforced at all times.
Correction of Inadequate Pollution and Erosion Control
Measures:
If the measures being taken by the Contractor are inadequate to control water pollution effectively, the City Engineer may direct the Contractor to revise operations. The directions will be in writing and will specify the items of work for which the Contractor’s water pollution control measures are inadequate. No further work shall be performed on those items until the water pollution control measures are made adequate.
Abatement of Other Water Pollution:
The cleanup of water pollution by chemicals, petroleum products, cement or by the escape of any other material that is harmful or potentially harmful, from the work site as a result of the Contractor’s operations, into drainage systems or the ocean shall be the financial responsibility of the Contractor. The means of cleanup and the party or parties to be engaged to perform the cleanup work shall be determined by the Engineer in consultation with appropriate hazardous materials, pollution control, safety, health and wildlife authorities and officials. The Contractor shall immediately carry out cleanup orders issued to him through or by the Engineer and shall make the work site accessible to personnel and equipment from outside pollution control resources called in by the Engineer. The cost of cleanup action called for by the Engineer and performed by outside resources shall be deducted from any monies due or become due the Contractor.
Compensation:
Full compensation for conforming to the requirements of this section shall be considered as included in the Contract Sum paid for the various items of work and no additional compensation will be allowed therefor.
17. Environmental Protection Requirements
Source Reduction and Recycling
The California Integrated Waste Management Act of 1989 (AB 939) mandates that 25 percent of the waste stream in the City of Pacifica be diverted from landfill by 1995 and that this diversion increase to 50 percent by 2000. AB 939 also required the City of Pacifica to prepare and adopt a Source Reduction and Recycling
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Element (SRRE) outlining recommended programs to meet the above noted diversion goals. One of the approved SRRE
programs is to require the utilization of recycled construction materials for City projects. All work performed under this contract and all contractors and their associates and/or employees shall utilize recycled materials and recycle construction materials where feasible. Construction/Demolition Recycling Resources Lists are available from the Pacifica Planning Department and the California Integrated Waste Management Board.
Contractor shall reuse or recycle any useful construction materials generated during the project.
Disposal
At the end of each working day, the Contractor shall collect all scrap, debris and waste material and dispose of such materials properly.
Hazardous Material/Waste Management
A. Storage
The Contractor shall label and store all hazardous
materials, such as pesticides, paints, thinners,
solvents, and fuels; and all hazardous wastes, such as
waste oil and antifreeze; in accordance with the City of Pacifica Hazardous Materials Storage Ordinance and
all applicable State and Federal regulations.
The Contractor shall store all hazardous materials and
all hazardous wastes in accordance with secondary
containment regulations, and it is recommended that
these materials and wastes be covered, as needed, to
avoid potential management of collected rain water as
a hazardous waste.
The Contractor shall keep an accurate, up-to-date
inventory, including Material Safety Data Sheets
(MSDSs), of hazardous materials and hazardous
wastes stored on-site, to assist emergency response
personnel in the event of a hazardous materials
incident.
B. Disposal
The Contractor shall use secondary containment, such
as a drip pan, to catch leaks or spills any time that
vehicle or equipment fluids are dispensed, changed or
poured.
The Contractor shall keep a stockpile of spill cleanup
materials, such as rags or absorbents, readily
accessible on site.
The Contractor shall clean up leaks and spills of vehicle or equipment fluids immediately and dispose of the
waste and cleanup materials as hazardous waste, as
described in the section above.
The Contractor shall not wash any spilled material into streets, gutters, storm drains or creeks and shall not
bury spilled hazardous materials.
The Contractor shall report any hazardous materials
spill to the City of Pacifica Building Division at (650) 738-7344.
The Contractor shall inspect vehicles and equipment
arriving on site for leaking fluids and shall promptly
repair leaking vehicles and equipment. Drip pans shall
be used to catch leaks until repairs are made.
C. Activity-Specific Requirements
The following requirements shall be met on all projects within the City of Pacifica that include the listed
activities.
Concrete, Grout and Mortar Waste Management
Material Management:
The Contractor shall store concrete, grout,
and mortar away from drainage areas and
ensure that these materials do not enter the
storm drain system or the ocean waters.
Concrete Truck/Equipment Wash Out:
The Contractor shall not wash out concrete
trucks or equipment into streets or gutters.
The Contractor shall perform washout of
concrete trucks or equipment off-site or in a
designated area on-site where the water will
flow onto dirt or into a temporary pit in a dirt
area. The Contractor shall let the water
percolate into the soil and dispose of the
hardened concrete in a trash container. If a
suitable dirt area is not available, then the
Contractor shall collect the wash water and
remove it off-site.
18. Layout of Work
Layout of work shall be done by the Contractor. Contractor shall mark the work area limits and facilities to be removed and replaced. All layout shall be approved by the City.
19. Substitutions
Substitutions in material or methods of construction, when necessary because of material shortages or in order to avoid serious delay may be made only after they are approved by the City Engineer in writing.
20. Traffic Control and Public Access
The Contractor shall be responsible for proper traffic control to assure public safety and convenience. Continuous safe public access shall be maintained to residential structures at all times.
21. Material and Workmanship
All materials and workmanship are to be the best of their respective kinds. The terms “or equal,” “approved,” “selected” and so forth shall mean as approved, etc. by the City Engineer. All materials and equipment used should be in accordance with the manufacturer’s printed directions.
Use adequate numbers of skilled workmen who are thoroughly trained and experienced in necessary crafts and who are completely familiar with the specified requirements and methods needed for proper performance of work specified. Use equipment adequate in terms of size, capacity and numbers to accomplish work in a timely manner.
22. Drug-Free Workplace
The Contractor is required to comply with the Drug-Free Workplace Act of 1988. The requirements of the Drug-Free
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Workplace Policy are described in City of Pacifica Administrative Policy Number 46.
23. Harassment and Discrimination
The Contractor is required to comply with City of Pacifica Administrative Policy Number 33, Harassment and Discrimination in the Workplace.
24. Payroll Records
Contractor and each Sub-Contractor shall keep an accurate payroll record, showing the name, address, social security number, work week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him in connection with the public work. All payroll records shall be certified and maintained by the Contractor and be made available to auditors and managers from the City upon request. (End of Appendix F)
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Packet Pg. 103 Attachment: Construction Services Agreement 032425 KONE Pacifica (5880 : Resolution to Approve Calera CCWRP Admin Building Elevator
CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
Resolution Authorizing Amendment No. 1 to the Consultant Services Agreement with Kermani Consulting Group, for Disaster Cost Recovery and Grant Management services related to the Winter 2023 Storms
RECOMMENDED ACTION:
Adopt a resolution entitled “A Resolution Authorizing Amendment No. 1 to the Consultant Services Agreement between Kermani Consulting Group, for Disaster Cost Recovery and Grant Management services related to the Winter 2023 Storms in an amount of $50,000, increasing the budget authority to $95,000, and authorize the City Manager to execute all documents related to the amendment”
STAFF CONTACT:
Bryan Bautista, Assistant Civil Engineer
(650) 898-2233
[email protected]
Roland Yip, P.E., DPW Deputy Director
(650) 738-3771
[email protected]
Louis Sun, P.E., Interim DPW Director
(650) 738-4660
[email protected]
BACKGROUND/DISCUSSION:
On January 4, 2023, the City Manager, acting in his capacity as Director of Emergency Services, proclaimed the existence of a local emergency pursuant to PMC 4-2.05(a) and executed the "Proclamation of the Existence of a Local Emergency" ("Proclamation").
The President declared a major disaster for the State of California on January 14, 2023 as a result of the severe winter storms, flooding, landslides and mudslides that began on December 27, 2022. This declaration, FEMA-4683-DR-CA, has authorized Individual Assistance for several Counties throughout California, including San Mateo County. Numerous projects were included in the City of Pacifica list of damaged sites, inspected by FEMA and approved for Public Assistance.
The storm events that started on December 31, 2022, resulted in dangerous conditions and public safety concerns and caused damage all around the Bay Area. Like many other Bay Area Cities, Pacifica received 4.6" of rain in 24 hours, which resulted in severe flooding, road closures, fallen trees, and sanitary sewer overflow events.
On March 16, 2023, the City Manager, acting as Director of Emergency Services, approved the Urgent Purchase Justification Memorandum for the Disaster Cost Recovery and Grant 6 Packet Pg. 104
Pacifica City Council 2
April 28, 2025
Management services in connection with 2023 California Storm Disaster at a total cost of $45,000.00 from Kermani Consulting Group. The existing contract budget has now been fully expended, and the amendment will increase by an amount of $50,000 for a total contract amount of $95,000.
The City would like to continue the consulting services for disaster cost recovery, grant management services and to provide assistance with obtaining the necessary approvals from the State of California Office of Emergency Services (CalOES) and Federal Emergency Management Agency (FEMA) for the reimbursement of the costs related to 2023 winter Storm disasters and other eligible activities under the Public Assistance (PA) and CDAA programs.
Currently, the reimbursements have taken several rounds of reviews by FEMA, and there have been appeals on some of the disaster area repairs project scoping which were denied. Although the repair project scoping presented to FEMA has been denied, none of the city appeals have been denied at this time, and this amendment is for Kermani Consulting Group to assist the city in the anticipated appeal process for each project that has been denied.
The city has already received reimbursement and obligation for $483,631.68 from FEMA. The remaining projects that are being appealed include the Landslide Stabilization and Repairs project, the Emergency Protective Measures (includes force account labor, rentals, purchases), and two more slope stabilization projects which in total add up to approximately $850,000 to $900,000.
ALTERNATIVE ACTION:
The Council may choose not to approve the additional budget authority with Kermani Consulting Group. However, there are still numerous important storm damage repair projects still to be done, and a consultant is needed to assist the City with FEMA and CalOES disaster cost recovery and grant management services. The City Manager does not recommend this alternate action.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the Resolution is consistent with the following Council adopted Goals:
• Enhance organizational and fiscal stability: FEMA and CalOES disaster funds will provide vital financing mechanisms to repair City infrastructure. • Improve and steward City infrastructure, streets and facilities: FEMA and CalOES disaster funds will assist to repair City infrastructure damaged by the 2023 Winter Storm.
FISCAL IMPACT:
City staff have applied for FEMA Public Assistance and would reimburse the City 25% of the consultant services. City matching funds of 75% of the $50,000 amendment will come from the Disaster Accounting Fund.
ORIGINATED BY:
Public Works
6 Packet Pg. 105
Pacifica City Council 3
April 28, 2025
ATTACHMENT LIST:
Attachment 1: KCG - Pacifica Contract Amendment 1 Signed (PDF) Attachment 2: Master Consultant Services Agreement (PDF) 6 Packet Pg. 106
Pacifica City Council 4
April 28, 2025
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA AUTHORIZING AMENDMENT NO. 1 TO THE CONSULTANT SERVICES AGREEMENT BETWEEN
KERMANI CONSULTING GROUP, FOR DISASTER COST RECOVERY AND GRANT MANAGEMENT SERVICES RELATED TO THE WINTER 2023 STORMS IN AN AMOUNT OF $50,000, INCREASING THE BUDGET AUTHORITY TO $95,000, AND AUTHORIZE THE
CITY MANAGER TO EXECUTE ALL DOCUMENTS RELATED TO THE AMENDMENT WHEREAS, The City would like to continue the consulting services for disaster cost recovery, grant management services and to provide assistance with obtaining the necessary approvals from the State of California Office of Emergency Services (CalOES) and Federal Emergency Management Agency (FEMA) for the reimbursement of the costs related to 2023 winter Storm disasters and other eligible activities under the Public Assistance (PA) and CDAA programs; and
WHEREAS, the City evaluated Kermani Consulting Group’s proposal, and is satisfied they can successfully complete the work and has been satisfied with their services on past City projects; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica to authorize Amendment No. 1 to the Consultant Services Agreement between Kermani Consulting Group, for Disaster Cost Recovery and Grant Management services related to the Winter 2023 Storms in an amount of $50,000, increasing the budget authority to $95,000, and authorize the City Manager to execute all documents related to the amendment”.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 28th day of April, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney 6 Packet Pg. 107
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KERMANI CONSULTING GROUP
Disaster Grants - Project Management - Hazard Mitigation Grants 530 Alameda Del Prado STE 132C OFFICE (415) 883-3820
Novato CA 94949 FAX (415) 883-3916
February 20, 2025
Mr. Bryan Bautista
Associate Civil Engineer
City of Pacifica
170 Santa Maria Ave
Pacifica CA 94044
RE: Request for Contract Amendment
FEMA- DR-4683-DR-CA Storm Disaster Projects
Dear Mr. Bautista,
As a follow up to your email, and as requested, we are submitting our request to amend the Master Agreement for Consultant Services with the city dated March 8, 2023 to continue with our consulting services in accordance with enclosed Exhibit I.
KCG has been providing consulting services to the city for the disaster cost recovery for the subject projects. The contract amendment is needed to continue with our consulting services since the funding for most of the projects has not been finalized by FEMA and / or CalOES.
We recommend that the contract be extended for two more years for a budget amount of $50K to make sure all the necessary appeals ( first and second appeals) are filed to maximize the reimbursements for the City and to close out the disaster.
We appreciate the opportunity to submit our request for the contract amendment and look forward to continue working with you and the City to assist with the disaster cost recovery process. Please call me at (415) 328-9446 or email [email protected] if there are any questions.
Sincerely,
Masoud N. Kermani, P.E.
Enclosure: Exhibit “I”
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EXHIBIT “I”
City of Pacifica
Disaster Cost Recovery and Grant Management
A.1 Proposed Scope of Services
The consulting services will be provided to the City of Pacifica (the City) to assist with obtaining the necessary approvals from the State of California Office of Emergency Services (CalOES) and Federal Emergency Management Agency (FEMA) for the reimbursement of the costs related to 2023 winter Storm disasters and other eligible activities under the Public Assistance (PA) and CDAA programs.
The scope of services will be performed as authorized by the City. Some examples of the tasks that will be provided are listed below:
1. Meetings /conference calls with the City, FEMA and CalOES staff
2. Monitor FEMA’s portal and report the findings to the City
3. Review of the RFIs requested by FEMA / CalOES and prepare response
4. Review and provide comments on the engineering reports
5. Provide guidance on the eligibility of the expenditures and repairs
6. Review the procurement contracts to complete projects’ scopes of work
7. Review and provide comments on project’s scopes of work and cost estimates
8. Assist with the preparation of FEMA’s Project Worksheets (PW)
9. Review and analyze the Project Worksheets (PW) prepared for each project
10. Review the CalOES Notification of Obligation Packages
11. Work with CalOES and FEMA to expedite funding approval
12. Prepare requests for Time Extension, if needed
13. Prepare appeal packages, as needed, including cost and regulation analyses
14. Coordinate activities between the city, State CalOES and FEMA
15. Prepare requests for PW Versions
16. Assist with the preparation of the Quarterly Reports
17. Financial analysis of the reimbursable funds/ checks received
18. Assist with the Final Inspection Audit
19. Follow up with Cal OES to receive final retention
20. Manage the Audits with the City, State Controller’s Office and Federal Office of Inspector General (OIG)
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A.2 Qualifications and Experience
Kermani Consulting Group (KCG) was founded in 1997 to provide comprehensive disaster consulting services to organizations seeking grant assistance from the State of California and Federal agencies such as the Governor’s California Office of Emergency Services (CalOES), the Federal Emergency Management Agency (FEMA), and the Federal Highway Administration (FHWA).
Masoud Kermani, president of KCG has a Master’s Degree in Civil/Structural Engineering and is a registered civil engineer with over forty years of experience in the field of engineering, disaster response, cost recovery, construction, and project management. For over eight years, he worked for the California Governor’s OES office and was co-located with the FEMA Region IX personnel in their headquarters at the Presidio of San Francisco. He managed the Cal OES staff assigned to the disaster cost recovery of all the sites damaged by the Loma Prieta Earthquake.
In the past twenty-six years, KCG has assisted many Cities and Counties with disaster cost recovery of the sites damaged by declared disasters including the floods of 1994, 1996, 1997, 1998, 2005, 2006, 2016, 2017, 2019, the San Simeon, Loma Prieta and Napa earthquakes, the 2017 and 2020 California Wildfires as well as the ongoing Covid-19 disaster.
KCG worked with the City of Pacifica beginning in March of 1997 on ALL declared disasters from 1994 to 2010. We provided disaster cost recovery consulting, technical advice, and project management for all the sites damaged by the various disasters securing over $12M for the City from Cal OES and FEMA.
In 2012, KCG worked with the City of Pacifica to manage the Office of Inspector General (OIG) audit of these disaster funds. KCG prepared complete project and financial files for all of the project work sheets requested by OIG. As a result, all of the auditor’s inquiries and requests for information were addressed with no significant findings and the City was able to keep the grant funding.
KCG provided disaster management services to the County of Marin beginning in 1998 as well as the City of Larkspur following the 2005/2006 Winter Storms. The County had a total of 246 damaged sites and the City of Larkspur had 25 sites which included seven major landslides from the storms. As a result of KCG’s efforts, a total of $10.5M was obligated for both applicants. The ratio of the actual cost of the projects to the approved funding by both Cal OES and FEMA was close to 98%. Most of the projects were approved after filing first and/or second level appeals with FEMA. The approval success rate for the appeals was 99%.
KCG worked with the City and County of San Francisco (CCSF) OES from December 2000 to October 2005 on various sites damaged by the 1996 State disaster and by the storms of the Federally declared 1997 and 1998 disasters. KCG was able to obtain reimbursement exceeding $10 million from Cal OES and FEMA. The additional funds secured by KCG were considered
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“dead money” that the City had given up hope of receiving. KCG also coordinated the response and the activities for the final audit by the Office of Inspector General (OIG) of the approved funds. OIG’s auditors issued their final report with no findings.
In March 2000, the City of Millbrae experienced a massive and dangerous landslide on private land that damaged a public sewer line, destroyed one home, and threatened ten others. KCG provided comprehensive disaster consulting services and helped the City obtain $9 million dollars in public assistance funding from the State of California Governor’s Office of Emergency Services (Cal OES) under the California Disaster Assistance Act (CDAA).
KCG assisted the City of Paso Robles with disaster cost recovery following the 2003 San Simeon earthquake, managed the disaster grants, and filed the necessary appeals and requests for supplemental project worksheets to maximize the grant funding for the City.
KCG also filed an appeal for the City of Atascadero’s City Hall requesting that FEMA pay for the seismic upgrade and repairs in the amount of $35 million dollars. As a result of the arguments presented in the appeal the City was ultimately able to obtain approval and restore the historic City Hall to its pre-disaster function in accordance with the applicable codes and standards.
At the request of the City of San Rafael, KCG reviewed the City’s existing policies and procedures for managing State and Federal disasters and provided recommendations to improve cost recovery. In October 2013, KCG prepared a comprehensive report on the FEMA- CalOES Public Assistance Guide for the City of San Rafael’s disaster cost recovery process.
At the invitation of Cal OES’s California Specialized Training Institute (CSTI), Masoud Kermani taught a course on State of California Disaster Assistance Act (CDAA) and FEMA’s Public Assistance programs to local government representatives for seven years.
KCG was hired by Napa County to file all the necessary appeals for the sites damaged by the 2014 Napa earthquake for which funding was denied by FEMA.
KCG worked on the 2016-2017 and 2019 storm disaster projects with Sonoma County and the Cites of Mill Valley, Vallejo, Santa Cruz, San Rafael, and Larkspur and the Sonoma-Marin Area Rail Transit (SMART) to provide FEMA-Cal OES consulting services for disasters declared by the State and FEMA in 2017 and 2019.
KCG assisted the Sonoma County Department Transportation and Public Works (TPW), the Cities of Vallejo, San Rafael, Mill Valley and Santa Cruz with disaster cost recovery from the 2017 and 2019 Severe Winter Storms, the 2020 California Wildfires, and the Covid-19 Pandemic.
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A.3 Key Project Professionals
KCG will draw upon the collective experience of diverse professionals to provide comprehensive consulting services to the City on an as-needed basis to complement City’s staff. The professionals selected to work on this project have extensive experience in disaster cost recovery management.
The following Key Project Professionals will be available to work on the projects, as needed:
➢ Project Leader: Mr. Masoud Kermani, Professional Civil Engineer ➢ Project Manager: Ms. Thea Liskamm, MPP, Senior Consultant ➢ Project Fiscal Specialist: Mr. Dwight Steeves, Auditor A.4 List of Major Clients
Client Contact Title Phone #
City of Santa Cruz Mr. Paul Horvat Emergency Admin
Manager
831-420-5280
City of San Bruno Mr. Matt Lee DPW Director 650-226-6382 City of Vallejo Mr. Terrance Davis DPW Director 707-649-3559 Marin County DPW Mr. Michael Frost Deputy Director 415-473-3725 San Mateo County Mr. Brian Molver District Coordinator 650-766-4245 City of Larkspur Mr. Julian Skinner DPW Director/City
Engineer
415-927-5017
Napa County Mr. Kerry Whitney Risk Services Manager 707-253-4821 Sonoma County Mr. Johannes
Hoevertsz
DTPW Director 707-565-3585
City of San Rafael Mr. Bill Guerin DPW Director 415-485-3389 City of Mill Valley Mr. Ahmed Ali DPW Project Manager 415-384-4830 East Bay Dischargers
Authority (EBDA)
Ms. Jackie Zipkin General Manager 510.278.5910
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A.5 Hourly Rate of Services
The following hourly fee schedule shall be charged to perform the consulting services plus actual cost for other expenses including travel based on Time and Material (T&M). A rate of $0.60 per mile shall be charged when traveling using personal vehicle. It is expected that the hourly rate will also cover typical expenses such as software and insurance. Other expenditures, if needed, will be charged with prior approval from the City.
TITLE RATE
Project Leader $225
Project Manager $165
Project Fiscal Specialist $95
A.6 Budget
It is difficult to estimate the budget for the full scope of services at this time, however, it is recommended that approximately $50K be budgeted for the next two years to complete the scope of work outlined in Section A.1 to file the necessary appeals and to close out the disaster.
A.7 Compensation
Consultant shall submit a statement of account, for the hourly professional services and the reimbursable expenses every month. The payments shall be due within thirty (30) days of its receipt.
Approved: Date:
__________________________________________________________________________
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CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/28/2025
1 SUBJECT:
Consideration of an appeal of the City’s Notice of Expiration of Cannabis Public Safety License/Termination of Cannabis Activity Permit and Cessation of Operations dated March 19, 2025, issued to Seaweed Holistics, LLC., located at 450 Dondee Street, Unit #2, Pacifica, CA 94044 (APN 022-021-640) (as continued from April 14, 2025) RECOMMENDED ACTION:
Move to adopt the attached Resolution to DENY the appeal submitted by Ana Leaňo-Williams (Appellant) and UPHOLD the City’s Notice of Expiration of Cannabis Public Safety License/Termination of Cannabis Activity Permit and Cessation of Operations dated March 19, 2025, issued to Seaweed Holistics, LLC., located at 450 Dondee Street, Unit #2, Pacifica, CA 94044 (APN 022-021-640).
STAFF CONTACT:
Brianne Harkousha, AICP, Deputy Director
(650) 738-7443
[email protected]
Maria Sarasua, Chief of Police
(650) 738-7314
[email protected]
BACKGROUND:
The Public Hearing for the Appeal by Ana Leaňo-Williams (Appellant) of the City’s Notice of Expiration of Cannabis Public Safety License/Termination of Cannabis Activity Permit and Cessation of Operations dated March 19, 2025, issued to Seaweed Holistics, LLC was scheduled for the April 14, 2025 City Council meeting. The appellant / applicant, Seaweed Holistics, LLC, requested a continuance of this item due to a family emergency. In response, the City agreed to continue public hearing of the appeal of the Notice of Expiration of Cannabis Public Safety License, Termination of Cannabis Activity Permit, and Cessation of Operations originally scheduled for the City Council meeting on April 14, 2025 to the April 28, 2025 City Council meeting to allow the applicants additional time to participate in the appeal process.
Cannabis operators are required to comply with the general provisions, standards, and regulations set forth in Article 48 (Cannabis Regulations), Chapter 4 (Zoning) of Title 9 (Planning and Zoning) and Chapter 16 (Cannabis Public Safety Licenses) of Title 4 (Public Safety) of the Pacifica Municipal Code to operate a cannabis retail business in the City of Pacifica.
This report outlines the history of Cannabis Activity Permit CAP-8-18 for Seaweed Holistics, LLC ("Permittee" or “Seaweed”), originally approved in 2019 for a cannabis retail operation at 450 Dondee Way.
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On October 16, 2019, the Police Chief issued the Permittee their first CPSL with a one-year expiration of October, 16, 2020. The business commenced operations a month after expiration in September 2020.
Data from the City’s Finance Department shows that subsequent to the issuance of the first Cannabis Public Safety License (“CPSL”) in 2019, that the City agreed to work with the appellant and allow them to pay its first CPSL renewal fee under a payment plan for the period of October 16, 2020 to October 16, 2021. The appellant has since paid three successive CPSL renewal fees in full (without payment plans) for the periods of October 16, 2021 through October 16, 2022 ($22,415.00), October 16, 2022 through October 16, 2023 ($23,577.00) and from October 16, 2023 through October 16, 2024 ($24,732.00).
Pursuant to Pacifica Municipal Code (“PMC”) section 4-16.06 (d), cannabis operators must renew the license and pay the annual renewal fee at least thirty (30) days prior the expiration of the CPSL. An amount for the Permittee’s CPSL for the current license fee of $25,375.00 was due on or before October 16, 2024 for the period of October 16, 2024 - October 16, 2025. The Permittee’s CPSL expired by its own terms on October 16, 2024. The Permittee failed to renew its CPSL by the October 16, 2024 deadline and therefore the CPSL expired triggering automatic termination of the Cannabis Activity Permit (”CAP”). This lapse in renewal of a CPSL results in automatic expiration of the CPSL. (PMC section 4-16.06). The expiration of the CPSL also results in automatic termination of the right to operate a cannabis operation under a CAP. (PMC sections 9-4.4803(b) and (d) and 9-4.4806(d)).
The Permittee also owes significant unpaid cannabis taxes and audit-related fees. On March 25, 2025 Ana Leaňo-Williams, on behalf of the Permittee, filed an appeal claiming extreme hardship due to gross reduction in business over the last year and a half as the basis for not paying the CPSL renewal fee. Pursuant to PMC Section 9-4.3208, the City Council must now consider the appeal of the CPSL expiration and CAP termination. Staff recommends denial of the appeal, which would immediately revoke the Permittee’s authorization to operate and allow the City to continue pursuing outstanding payments.
A. INITIAL APPROVAL OF CAP-8-18 (September 16, 2019)
On September 16, 2019, the Planning Commission approved CAP-8-18 with the adoption of Planning Commission Resolution No. 2019-0311to authorize the Permittee to establish and operate a Cannabis Retail Operation ("CRO") with adult use and medicinal cannabis sales at 450 Dondee Way, Suite 2 (File No. 2018-029). Exhibit A to Resolution No. 2019-031 included conditions of the approval ("COAs") applicable to CAP-8-18. Many of these COAs were required to be met prior to the commencement of operations. The Permittee did not contest or appeal any of the COAs imposed as part of CAP-8-18.
While the Permittee made progress towards completion of some of the COAs, the Permittee indicated that two COAs were infeasible to satisfy prior to commencement of operations. Those two COAs primarily at issue are the following:
• COA No. 9 - "Prior to commencement of operations, the Permittee shall obtain a building permit to modify the first floor storefront to increase the horizontal and overall measurements of the glass on the first floor storefront to meet or exceed the requirements of PMC Section 4-16.03(c)(1)(ii), to the satisfaction of the Planning Director. New windows or doors proposed on the storefront shall be architectural compatible with the remainder of the building, to the satisfaction of the Planning Director."
1 PC Resolution 2019-031
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• COA No. 18 - "All outstanding and applicable fees associated with the processing of this project shall be paid within 30 days of the approval of Cannabis Use Permit CAP-8-18.
The Cannabis Retail Operation shall not commence operations until such fees are paid." The Permittee explained that they had to commence operations in order to generate revenue through cannabis retail sales to be able to satisfy COA No. 9 (requirement to implement storefront window modification to meet Pacifica Municipal Code ("PMC") sec. 4-16.03(c)(1)(ii)) and COA No. 18 (payment of outstanding fees) and requested that those COAs be modified to allow commencement of operations before compliance with COA No. 9 and COA No. 18.
B. DEFERRAL AGREEMENT AND AMENDMENT TO CAP-8-18 (September 21, 2020)
Given the Permittee's request, the City temporarily deferred compliance with COA No. 9 and COA No. 18 through the Agreement Regarding Deferral of Specified Conditions of Approval Relating to the Operation of Seaweed Holistics ("Deferral Agreement") executed on September 21, 2020 (Attachment B), to allow the Permittee to commence operations to generate the revenue necessary to satisfy COA No. 9 and COA No. 18 (Conditions are detailed in Section A, above), provided that the Permittee expeditiously process an application to modify these COAs.
The Agreement also provided that the Permittee was responsible for paying for City costs associated with preparing and processing the Deferral Agreement and modifying the COAs. The Permittee agreed to the terms of the Deferral Agreement.
On February 16, 2021, the Planning Commission approved Resolution No. 2021-0012 which amended COA No. 9 and COA No. 18 of CAP-8-18 to defer the timing of compliance with those conditions until after commencement of operations (File No. 2020-020), consistent with the aforementioned Deferral Agreement.
C. ANNUAL REPORT TO PLANNING COMMISSION (August 15, 2022) In accordance with PMC Sec 9-4.4806(e) and COA No. 19 of Resolution No. 2019-031, the Planning Commission conducted an annual review of the CRO at its meeting on August 15, 2022. As part of the annual review, staff reported that the Permittee was still not in compliance with COA No. 9 and No. 18. Additionally, because the Permittee had not complied with the COAs imposed by the Planning Commission, the Permittee was also out of compliance with PMC sec. 9-4.4803(d)(5) and Conditions of Approval No. 1, No. 5, and No. 6, which are summarized as follows:
• COA No. 1 - This condition requires the development to be substantially in accordance with the approved plans modified by the conditions of approval. As further discussed below for COA No. 9, the Permittee had not complied with COA No. 9 which requires the modification of the storefront window. Therefore, the development was out of compliance with COA No. 1.
• COA No. 5 - This condition incorporates all the requirements of Article 48 of Chapter 4 of Title 9 of the PMC applicable to the cannabis retail operation. PMC Section 9-
4.4803(d)(5) states, "The Planning Commission may impose additional conditions which it deems necessary to ensure that operation of the cannabis operation will be in accordance with the findings provided in Section 9-4.4805(a) and with the standards and regulations provided in this article and applicable state laws." As further discussed below 2 PC Resolution 2022-001
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for COA No. 9, and No. 18, the Permittee had not complied with these conditions imposed by the Planning Commission and therefore was out of compliance with PMC Section 9-4.4803(d)(5) and, therefore, COA No. 5.
• COA No. 6 - This condition prohibits the operation of the cannabis retail operation from creating a public nuisance. As established in PMC sec 9-4.4807, "[a]ny use or condition caused or permitted to exist in violation of any provision of this article shall be and hereby is declared a public nuisance and may be summarily abated by the City pursuant to Code of Civil Procedure, section 731 or any other remedy available to the City." The cannabis retail operation was in violation of provision of Article 48 as demonstrated in the annual report because there are Conditions of Approval that had not been complied with and, as a result, the cannabis retail operation was considered a public nuisance, as defined in the PMC. Therefore, the Permittee was not in compliance with COA No. 6.
After receiving a report prepared by staff and testimony, the Planning Commission adopted Resolution No. 2022-0163, finding that operation of Seaweed Holistics was being conducted in a manner that was not in compliance with the requirements of Article 48, Chapter 4, Title 9 of the PMC and the requirements of Planning Commission Resolution Nos. 2019-031 and 2021-001 and therefore constituted a public nuisance in accordance with PMC sec. 9-4.4806 and PMC sec. 9-4.4807. The Planning Commission also directed staff to schedule a public hearing within 60 days to consider suspension or revocation of Cannabis Activity Permit CAP-8-18 in accordance with PMC sec. 9-4.4806. The Planning Commission staff report for August 15, 2022, is included in this staff report as Attachment C.
D. PLANNING COMMISSION CONSIDERATION OF REVOCATION OR SUSPENSION (October 3, 2022)
During the Planning Commission's regular meeting on October 3, 2022, the Planning Commission reviewed the compliance status of the operation of Seaweed Holistics and considered the criteria for suspension or revocation pursuant to PMC sec. 9-4.4806. Ultimately, a majority of the Planning Commission supported revocation rather than suspension.
The Planning Commission adopted Resolution No. 2022-0214, finding the cannabis retail operation authorized by CAP-8-18 was out of compliance with COA No. 9 (requirement to implement storefront window modification) and COA No. 18 (payment of outstanding fees), as well as COA No. 1 (requiring development to be substantially in accordance with approved plans modified by the conditions of approval), COA No. 5 (requiring compliance with all conditions of approval and all standards), and COA No. 6 (prohibits the operation of the CRO from creating a public nuisance) and approved revocation of Cannabis Activity Permit CAP-8-18 by a vote of 3 to 2 with two absences. The Planning Commission staff report for October 3, 2022, is included as Attachment D.
E. 2022 COUNCILMEMBER CALL-UP AND APPEAL BY ANA LEAÑO-WILLIAMS OF SEAWEED HOLISTICS (October 13, 2022)
On October 10, 2022, the City Clerk received a written request from former Councilmember O'Neill to call up the Planning Commission's action on the subject item for City Council review pursuant to PMC sec. 2-1.105, which does not require a Councilmember to cite the basis for the call-up.
3 PC Resolution 2022-016
4 PC Resolution 2022-021
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On October 13, 2022, Ana Leaño-Williams of Seaweed Holistics (hereafter "Appellant") timely submitted a City of Pacifica Appeal form and applicable fee to the City Clerk's office to appeal the Planning Commission's revocation of the CAP for the Project. The Appellant cited two reasons for the appeal:1) that the decision to revoke the CAP was based on a misapplication of the City’s store front window glazing ordinance/requirements; and 2) that the assessed fees were largely inappropriate in that they were based on the inappropriate window glazing ordinance/requirements.
On November 14, 20225, the City Council adopted resolution No. 79-2022, that denied the appeal and upheld the Planning Commission’s action to revoke Cannabis Activity Permit CAP8-18 which was to take effect 14 months after November 15, 2022, unless 6 “revocation conditions” were satisfied before the aforementioned revocation date. (See Staff Report as Attachment E). Those revocation conditions were:
1. Permittee shall pay $4,080.56 for all outstanding and applicable fees and costs associated with the processing of the application for approval of CAP 8-18, by end of business day, December 15, 2022. Failure to make the required payment of $4,080.56 by December 15, 2022, shall warrant immediate revocation.
2. Permittee shall pay a $5,000 deposit by end of business day on January 17, 2023 for estimated fees and costs associated with the processing of ordinance amendments and processing of amendments to CAP-8-18 to incorporate any revision the Pacifica Municipal Code adopted by the City Council. Any unused portion of the deposit shall be refunded and any additional costs beyond the deposit shall be borne by the City of Pacifica. Failure to make the required deposit of $5,000 by January 17, 2023 shall warrant immediate revocation.
3. Permittee shall pay $21,872.33 for all outstanding and applicable fees and costs associated with processing the amendment to CAP-8-18, and all outstanding and applicable fees and costs associated with the preparation and execution of the Deferral Agreement in 12 equal monthly payments of $1,822.69 by end of business day the 15'h day of each month beginning February 15, 2023, or on the next business day when the 15" day of the month is not a business day. Failure to make any required monthly payment by the last day of the subject month in which the payment is due shall warrant immediate revocation.
4. Prior to the Revocation Date, PMC sec. 4-16.03(c)(1)(ii) relating to window coverings is amended in a manner which allows Permittee to retain its current window configuration.
5. Prior to the Revocation Date, Conditions of Approval Nos. 9 and 18 are modified by the Planning Commission to conform to any revisions made to PMC sec. 4-
16.03(c)(1)(ii) as described in paragraph 2 above and reflect satisfaction of outstanding fees as described in paragraph 1.
6. Prior to the Revocation Date, City and Permittee execute an amendment to the Deferral Agreement to conform to revisions to PMC sec. 4-16.03(c)(1)(ii) and reflect satisfaction of outstanding fees and provide reimbursement to City for all costs, including but not limited to staff time, administrative costs, legal fees and any other costs incurred by the City in processing amendments to Conditions of Approval Nos. 9 and 18 and Amendment to Deferral Agreement, subject to the $5,000 limit above. 5 CC November 14, 2022 Meeting Minutes
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F. PLANNING COMMISSION APPROVAL OF MODIFICATIONS TO THE CAP-8-018 RELATING TO CONDITIONS OF APPROVAL NO.’S 9 AND 18.
The Permittee made all of the necessary payments on time as required above and the Planning Commission approved Resolution No. 2023-0146 on September 16, 2023, which amended Cannabis Activity Permit CAP-8-018 to modify the requirements of Resolution No. 2019-031 of the Planning Commission relating to the modified requirements related to storefront window size (Condition of Approval No. 9) and payment of outstanding and applicable fees and costs associated with the processing of the application (Condition of Approval No. 18) G. NOTICE OF EXPIRATION OF THE CPSL AND TERMINATION OF CAP-8-18, DATED MARCH 19, 2025.
Subsequent to the action taken by the Planning Commission on September 16, 2023, the appellant, due to reasons provided below, did not make the payment (fee) for renewal of its Cannabis Public Safety License (CPSL) on or prior to October 16, 2024, and thus the nonpayment of the fee ($25,375.00) caused the CPSL to expire resulting in the Cannabis Activity Permit (CAP) automatically terminating.
On March 19, 2025, the Police Chief sent a Notice of Expiration of Cannabis Public Safety (CPSL) and Termination of Cannabis Activity Permit (CAP) to the Appellant, advising her that the CPSL expired on October 16, 2024, and that Seaweed was operating without a valid CPSL and a CAP and demanded that Seaweed immediately cease cannabis retail operations (See Attachment F). And on March 25, 2025, Appellant timely submitted an Appeal form and applicable fee to the City Clerk's office to appeal city’s action to issue the Notice of Expiration of the CPSL and Termination of CAP-8-18, (Attachment G).
Unrelated to the status of the CPSL or CAP, Seaweed Holistics, LLC., also owes approximately $32,221.67 to the City for the Cannabis Operator Tax and approximately $6,828.13 for FY 2022-2023 audit findings, which are summarized below.
1. Cannabis Operator Tax and License Status Update
As outlined in Title 3, Chapter 18, Section 3-18.14, all cannabis operations in the City are subject to a 6% cannabis operations tax on gross receipts. Seaweed remained current on local tax payments through September 2023 but has since failed to remit payments, except for $1,476.65 in November 2024. Cannabis operators are required to self-report their gross receipts and corresponding tax liability monthly. Initially, Seaweed reported $40,539.90 in unpaid taxes for October 2023 – October 2024, excluding reporting for December 2024 and January 2025.
However, they recently notified the Finance Department of discrepancies in their initial reporting and adjusted their reported tax liability down to $32,221.67, now covering through December 2024.
2. Annual Audit Findings
The City conducts annual audits of cannabis businesses. Seaweed was first audited last year due to the timing of their license issuance. The FY 2022-23 audit identified $20,696.27 in underreported taxes. Seaweed requested a payment plan, with the final installment of $6,828.13 due on December 15, 2024, which remains unpaid.
Regardless of the status of the CPSL or CAP, the City will continue to pursue the foregoing outstanding amounts.
6 PC Resolution 2023-014
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H. CITY COUNCIL'S ROLE
Pursuant to PMC Section 9-4.3208, the City Council may approve, deny or modify the City’s action to issue a Notice of Expiration of the CPSL and Termination of CAP-8-18, after considering the appeal.
In the event that the Council determines that there is substantial evidence in the record to support the City’s action to issue the Notice of Expiration of the CPSL and Termination of CAP8-18, the Council should deny the appeal by adopting the attached Resolution.
If the Council decides to modify City staff’s action, the City Council should provide staff with conditions and criteria which would be inserted into a Resolution modifying the action of staff, which would be brought back to Council at a later date. In the event that the Council decides to grant the appeal and rescind the Notice of Expiration of the CPSL and Termination of CAP-8-18, the City Council will need to provide staff with the basis for those findings that are supported by substantial evidence which would be inserted into a Resolution granting the appeal and brought back to the City Council at a later date.
DISCUSSION:
A. 2025 APPEAL BY ANA LEAÑO-WILLIAMS OF SEAWEED HOLISTICS Appellant cited one reason for the appeal in the appeal form, which is summarized and addressed below.
Basis 1. "Extreme hardship due to gross reduction in business over the last year and a half”
Staff Response:
While the City acknowledges the challenging economic climate and recognizes that many businesses have experienced financial hardship, the appeal lacks sufficient justification to warrant reversal of the City’s action. The cannabis permitting and licensing framework – adopted through PMC Chapter 16, Title 4 and Article 48, Chapter 4, Title 9 – establishes clear requirements for the maintenance of a valid permit, including the timely payment of annual fees.
These fees are critical to ensuring adequate oversight, enforcement, and public safety in the regulation of cannabis operations.
PMC section 4-16.06 (d) requires that cannabis operators renew the CPSL and pay the annual renewal fee at least thirty (30) days prior the expiration of the CPSL. The Permittee’s CPSL expired by its own terms on October 16, 2024. The Permittee failed to renew its CPSL by the October 16, 2024 deadline and therefore the CPSL expired triggering automatic termination of the CAP. (PMC sections 9-4.4803(b) and (d) and 9-4.4806(d)).
Non-payment of the CPSL fee is a clear violation and results in automatic expiration under the City Municipal Code and there are no exceptions provided in the Code or the CPSL renewal fee for non-payment. The City does not offer hardship exemptions or payment plans for renewals of the CPSL beyond the first year. Granting this appeal would require a change to the CPSL fee and the Municipal Code and sets a precedent that weakens the integrity of the permitting system and could lead to unequal treatment of other operators who comply with the rules.
ALTERNATIVE ACTIONS:
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If the Council decides to modify City staff’s action, the City Council should provide staff with conditions and criteria which would be inserted into a Resolution and modifying the action of staff, which would be brought back to Council at a later date. In the event that the Council decides to grant the appeal and rescind the Notice of Expiration of the CPSL and Termination of CAP-8-18, the City Council will need to provide staff with the basis for those findings that are supported by substantial evidence which would be inserted into a Resolution granting the appeal and brought back to the City Council at a later date.
The City Council may also refer the matter back to staff for reconsideration given new evidence provided at the hearing should there be any provided.
ENVIRONMENTAL REVIEW:
This action to deny the appeal submitted by the Appellant and uphold the City’s Notice of Expiration of Cannabis Public Safety License/Termination of Cannabis Activity Permit is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
The proposed project is not directly associated with an item on the City Council's Work Plan. It is the City Council's normal governance process to hear and determine appeals under the PMC.
FISCAL IMPACT:
The expiration of CPSL, termination of CAP-8-18, and the cessation of the business would result in reduced cannabis tax revenues collected by the City. Individual cannabis tax payment amounts are confidential. However, the reduction of one business would allow for another business to submit a CPSL and CAP proposal and operate with similar tax revenue collections.
ORIGINATED BY:
Community Development Department
Police
ATTACHMENT LIST:
ATT A. CC Reso xx-2025_Seaweed Hollistics Appeal (DOCX) ATT B. Agreement re Deferral of Specified Conditions_Redacted (PDF) ATT C. Planning Commission Staff Report_August 15, 2022 (PDF) ATT D. Planning Commission Staff Report_October 3, 2022 (PDF) ATT E. City Council Staff Report_November 14, 2022 (PDF) ATT F. Seaweed Holistics-Permit Termination 3.19.2025 (PDF) ATT G. Appeal_20250325_Leano-Williams_SeaweedHolistics_CPSL_CAP (PDF) 7 Packet Pg. 139
RESOLUTION NO. ______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA DENYING THE
APPEAL SUBMITTED BY ANA LEANO-WILLIAMS (APPELLANT) AND UPHOLDING THE CITY’S NOTICE OF EXPIRATION OF CANNABIS PUBLIC SAFETY LICENSE/
TERMINATION OF CANNABIS ACTIVITY PERMIT AND CESSATION OF OPERATIONS DATED MARCH 19, 2025, ISSUED TO SEAWEED HOLISTICS, LLC, LOCATED AT 450 DONDEE STREET, UNIT #2, PACIFICA, CA 944044 (APN 022-021-640) __________________________________________________________________ WHEREAS, the Planning Commission of the City of Pacifica adopted Resolution No. 2019-031 to approve Cannabis Activity Permit CAP-8-18 (File No. 2018-029) to Seaweed Holistics, LLC ("Permittee") for a cannabis retail operation at 450 Dondee Way, Suite 2 (APN 022- 021-640) subject to conditions of approval, at a duly noticed public hearing on September 16, 2019; and
WHEREAS, the Planning Commission of the City of Pacifica adopted Resolution No. 2021-001 on February 16, 2021, to amend Conditions of Approval No. 9 and 18 of Resolution 2019-031 to revise the timing of the implementation of the conditions to after commencement of operations of the cannabis retail operation (File No. 2020-020); and WHEREAS, Condition No. 19 of Exhibit A of Resolution No. 2019-031 of the Planning Commission of the City of Pacifica requires the Planning Commission to perform two annual reviews of the cannabis retail operation authorized by Cannabis Activity Permit CAP-8-18, where the first annual review shall occur not less than one year but not more than two years from the issuance of the Cannabis Public Safety License (“CPSL”); and WHEREAS, the Chief of Police issued a CPSL for the subject cannabis retail operation on October 16, 2019; and
WHEREAS, the Permittee commenced cannabis retail operations in September 2020 and therefore staff delayed the first annual review to occur not later than more than two years from the implementation of the CPSL; and
WHEREAS, the Planning Commission of the City of Pacifica did hold a duly noticed public hearing on August 15, 2022, to conduct an annual review of Cannabis Activity Permit CAP-8-18 and adopted Resolution No. 2022-016 finding that the operation of the subject cannabis retail operation is being conducted in a manner that is not in compliance with Article 48 of Title 9, Chapter 4 of the Pacifica Municipal Code (PMC) and the requirements of Planning Commission Resolution Nos. 2019-031 and 2021-001 and therefore, constitutes a public nuisance in accordance with PMC sec. 9-4.4806 and PMC sec. 9-4.4807; and WHEREAS, the Planning Commission of the City of Pacifica adopted Resolution No. 2022-021 to revoke Cannabis Activity Permit CAP-8-18 (File No. 2018-029) to Seaweed Holistics, LLC by a vote of 3 to 2 (with 2 absences); and
WHEREAS, on October 10, 2022, the City Clerk received a written request from a Councilmember to call up the Planning Commission's action on the subject item for City Council review pursuant to PMC sec. 2-1.105; and File Nos. 2018-029 and 2020-020: Revocation of Cannabis Activity Permit CAP-8-18 (Seaweed Holistics Cannabis Retail Operation) 450 Dondee Way, Suite 2 (APN 022-021-640); and
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Packet Pg. 140 Attachment: ATT A. CC Reso xx-2025_Seaweed Hollistics Appeal [Revision 1] (5918 : Revocation of Seaweed Holistics LLC Appeal) WHEREAS, On October 13, 2022, Ana Leaño-Williams of Seaweed Holistics (hereafter "Appellant" ) timely submitted a City of Pacifica Appeal Form, and applicable fee to the City Clerk's office to appeal the Planning Commission's revocation of the CAP ("Appeal"); and WHEREAS, on November 14, 2022, the City Council held a duly noticed public hearing to consider the call-up and appeal wherein it considered all written, oral and other evidence submitted.
WHEREAS, on November 14, 2022, the City Council adopted Resolution 79-2022, denying the appeal and upholding the Planning Commission’s revocation of CAP-8-018 and found that the subject cannabis business was being conducted in a manner that constituted a public nuisance and also found that the operation was being conducted not in compliance with Article 48 OF Title 9, Chapter 4 of the PMC; and
WHEREAS, on November 14, 2022, the City Council revoked Cannabis Activity Permit CAP-8-18, which was to take effect 14 months after November 15, 2022 ("Revocation Date") unless six certain conditions ("Revocation Conditions") were satisfied before the Revocation Date; and
WHEREAS, the Appellant satisfied all of the six conditions as required and approved by the City Council and continued to operate the retail commercial cannabis business; and WHEREAS, during its operations beginning in September 2020, the Appellant maintained its Cannabis Public Safety License (“CPSL”) by applying for and paying the requisite licensing fees; and
WHEREAS, City data from the Finance Department shows that the most recent CPSL fee was paid in October 2023 for the year "2023-2024" in the amount of $24,732.00; and WHEREAS, an amount for the current license fee of $25,375.00 was due on or before October 16, 2024 for the period of October 16, 2024 - October 15, 2025; and WHEREAS, pursuant to Pacifica Municipal Code (“PMC”) section 4-16.06 (d), cannabis operators must renew the license and pay the annual renewal fee at least thirty (30) days prior the expiration of the CPSL; and
WHEREAS, to date, the City has still not received any payment for the CPSL and as such the CPSL expired on October 16, 2024; and
WHEREAS, the expiration of the CPSL also results in automatic termination of the right to operate a cannabis operation under a Cannabis Activity Permit (“CAP”), pursuant to PMC sections 9-4.4803(b) and (d) and 9-4.4806(d); and
WHEREAS, on March 25, 2025, Ana Leaňo-Williams (“Appellant”) timely submitted an Appeal form and applicable fee to the City Clerk's office to appeal city’s action to issue the Notice of Expiration of the CPSL and Termination of CAP-8-18, claiming extreme hardship due to gross reduction in business over the last year and a half as the basis for not paying the CPSL renewal fee; and
WHEREAS, denial of the appeal submitted by the Appellant and uphold the City’s Notice of Expiration of Cannabis Public Safety License/Termination of Cannabis Activity Permit is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code
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Packet Pg. 141 Attachment: ATT A. CC Reso xx-2025_Seaweed Hollistics Appeal [Revision 1] (5918 : Revocation of Seaweed Holistics LLC Appeal) of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment; and
WHEREAS, on April 28, 2025, the City Council held a duly noticed public hearing to consider the appeal filed by Appellant wherein it considered all written, oral and other evidence submitted.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica as follows:
A. The above recitals are true and correct and material to this Resolution.
B. In making its findings, the City Council relied upon and hereby incorporates by reference all correspondence, staff reports, and other related materials.
BE IT FURTHER RESOLVED, that the City Council hereby denies the Appeal filed by Appellant and upholds the City’s Notice of Expiration of Cannabis Public Safety License/Termination of Cannabis Activity Permit and Cessation of Operations dated March 19, 2025, issued to Seaweed Holistics, LLC., located at 450 Dondee Street, Unit #2, Pacifica, CA 94044 (APN 022-021-640) and finds that non-payment of the CPSL fee is a clear violation of the PMC and results in automatic expiration and there are no exceptions provided in the Code or the CPSL for non-payment of the CPSL renewal fee.
BE IT FURTHER RESOLVED, that the CPSL issued to Seaweed Holistics, LLC is hereby expired and the CAP is terminated. Seaweed Holistics, LLC shall no longer entitled to any privileges authorized by the CPSL or the CAP and must cease commercial retail cannabis operations authorized by the CPSL and the CAP.
BE IT FURTHER RESOLVED that nothing stated in this Resolution shall be interpreted as forgiving or absolving the Seaweed Holistics, LLC of those amounts owed and outstanding to the City for back taxes owed and costs associated with the City’s Annual Audits. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 28th day of April, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney
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PLANNING COMMISSION
Staff Report
Scenic Pacifica
Incorporated Nov. 22, 1957
PUBLIC NOTICE: Notice of Public Hearing was published in the Pacifica Tribune on August 3, 2022 and mailed to 120 surrounding property owners and occupants.
APPLICANT: Seaweed Holistics, LLC
450 Dondee Way, Suite 2
Pacifica, CA 94044
OWNER: Ronald E. Grindrod Trust
450 Dondee Way, Suite 15
Pacifica, CA 94044
PROJECT LOCATION: 450 Dondee Way, Suite 2 (APN 022-021-640) – Rockaway Beach PROJECT DESCRIPTION:Annual review of File Nos. 2018-029 and 2020-020 – Authorizing operation of a cannabis retail operation, Seaweed Holistics, LLC, selling medicinal and adult use cannabis.
SITE DESIGNATIONS: General Plan/Local Coastal Plan: Commercial Zoning: C-1 (Neighborhood Commercial) / C-Z (Coastal Zone Combining District) / CO-RB (Cannabis Operation, Rockaway Beach Overlay District) Rockaway Beach Specific Plan: Mixed Use
RECOMMENDED CEQA STATUS: The annual review is not a “project” pursuant to § 15378 of the California Environmental Quality Act (CEQA) Guidelines because it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
ADDITIONAL REQUIRED APPROVALS: Subject to appeal to the City Council.
RECOMMENDED ACTION: Adopt the attached Resolution.
PREPARED BY: Bonny O’Connor, AICP, Senior Planner
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Seaweed Holistics Annual Report
August 15, 2022