Agenda, regular meeting, first session — San Bruno City Council, April 25, 2023

"The City With a Heart"
Rico E. Medina, Mayor
Tom Hamilton, Vice Mayor
Sandy Alvarez, Councilmember, District 1
Marty Medina, Councilmember, District 4
Michael Salazar, Councilmember
AGENDA
SAN BRUNO CITY COUNCIL REGULAR MEETING
April 25, 2023
7:00 PM
City Councilmembers and members of the public may attend in person at the San Bruno Senior Center, or by teleconference, via Zoom or telephone.

IN PERSON* MEETING LOCATION
San Bruno Senior Center
1555 Crystal Springs Road
San Bruno, CA 94066
*Please turn off all electronic devices before the start of the meeting to prevent disruptions*
Zoom Link
https://sanbrunocagov.zoom.us/j/85262058085?
pwd=R2wwMnZmTTAvWnhTUkNlcldlSk5Xdz09
Phone Line: 16465588656
Webinar ID: 852 6205 8085
Webinar Password: 867762
PUBLIC COMMENT: In person attendees who want to provide public comment, will be asked to fill out a speaker card and turn it into the City Clerk. Virtual attendees can comment by using the “Raise Hand” feature in Zoom to request to speak. For dialin comments press *9 to “Raise Hand” and *6 to unmute. Public comment may also be emailed to [email protected] . Comments received via email will not be read aloud during the meeting.

ACCESSIBILITY: In compliance with the Americans with Disabilities Act, individuals requiring special accommodations or modifications to participate in this meeting should contact the City Clerk’s Office 48 hours prior to the meeting at (650) 6167061 or [email protected] .
*Any disclosable public writings related to an open session item on a regular meeting agenda and distributed by the City to at least a majority of the City Council less than 72 hours prior to that meeting are available for public inspection at the City Clerk's Office at City Hall located at 567 El Camino Real, San Bruno, California during normal business hours. In addition, the City may also post such documents on the City’s Website at sanbruno.ca.gov/AgendaCenter .

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

4. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Individuals allowed three minutes. It is the Council’s policy to refer matters raised in this forum to staff for investigation and/or action where appropriate. The Brown Act prohibits the Council from discussing or acting upon any matter not agendized pursuant to State Law.

5. ANNOUNCEMENTS/PRESENTATIONS
Public comment will be requested after each topic in this section a. Recology San Bruno and the City of San Bruno Have Partnered to Offer a Community Cleanup (Drop Off) Event Scheduled for Saturday, April 29, 2023 From 8:00 A.M. To 11:00 A.M. This Event Will Be Held at 975 Sneath Lane, and Participants Will Have an Opportunity to Unload up to 3 Cubic Yards of Waste, Including:
• Bulky Items
• EWaste
• Appliances
• Latex Paint (Other Paint and Chemicals Will Not Be Accepted, Call to Schedule an Appointment (650) 3726200)
• No Dirt, Rock, or Concrete
For Questions, Please Contact Recology San Bruno at (650) 5838536. b. Issue Proclamation Declaring the Month of May 2023 as Mental Health Month c. San Bruno is Offering the Summer Access Scholarship Through the San Mateo County Summer Enrichment Program. Grants Are Available to San Bruno Children in Need to Attend Summer Camp in 2023. Learn More and See if Your Family Qualifies at sanbruno.ca.gov/SummerScholarship.
d. Receive Informational Update From the San Bruno Park School District on the Children’s Day, Book Day/Día de Los Niños, Día de Los Libros Celebration

6. CONSENT CALENDAR
All items are considered routine or implement an earlier Council action and may be enacted by one motion; there will be no separate discussion, unless requested. There will be a single public comment period for all items in this section unless a Councilmember requests to pull an item for a separate vote. a. Approve Accounts Payable for April 3, 2023 and April 10, 2023 b. Accept Payroll for April 9, 2023
c. Consider Adoption of a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement With Tanner Pacific, Inc. for Construction Management and Inspection Services in the Amount Not to Exceed $92,685 for the Spyglass Drive Storm Drain Improvements Project
d. Consider Adopting a Resolution Authorizing the City Manager to Execute a Construction Contract With United Storm Water, Inc. for the 2023 Trash Capture Device Installation Project in the Amount of $177,425.85, Approving a Construction Contingency of $20,000, and Determining the Project is Exempt Under the California Environmental Quality Act e. Consider Adoption of a Resolution Accepting the Senior Center Parking Lot Overlay and Trash Enclosure Project as Complete, Authorizing the Filing of Notice of Completion With the San Mateo County Recorder’s Office, and Authorizing Release of the Construction Contract Retention in the Amount of $19,746.34
f. Consider Adoption of a Resolution Directing Staff to Initiate the Property Owner Notice, Hearing, and Protest Process as Required by Proposition 218 for the Proposed Sewer Rate Increases for FY 202324 Through 202728
g. Receive Written Update on the City’s Response Efforts to the Late 2022 to 2023 Winter Storms

7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Adopting a Resolution Approving Various Curb Marking Changes to Install No Parking Red Zones on Darby Place and Oxford Lane and Determining the Project is Exempt Under the California Environmental Quality Act

8. COUNCIL COMMITTEE REPORT OUT
Public comment will be requested after each topic in this section

9. COMMENTS FROM COUNCIL MEMBERS
Public comment will be requested after each topic in this section

10. ADJOURNMENT – The Next Regular City Council Meeting Will be Held on May 9, 2023 at 7:00 P.M.

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1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT
Public comment will be requested after each topic in this section

9. COMMENTS FROM COUNCIL MEMBERS
Public comment will be requested after each topic in this section

10. ADJOURNMENT – The Next Regular City Council Meeting Will be Held on May 9, 2023 at 7:00 P.M.

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1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT
Public comment will be requested after each topic in this section

9. COMMENTS FROM COUNCIL MEMBERS
Public comment will be requested after each topic in this section

10. ADJOURNMENT – The Next Regular City Council Meeting Will be Held on May 9, 2023 at 7:00 P.M.

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:April 25, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Matthew Lee, Public Works Director
SUBJECT: Consider Adoption of a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement With Tanner Pacific, Inc. for Construction Management and Inspection Services in the Amount Not to Exceed $92,685 for the Spyglass Drive Storm Drain Improvements Project
BACKGROUND: Much of the City’s existing storm infrastructure was originally installed in the 1900s when the eastern portion of the City developed and urbanized. The system then extended to the western part of the City as more developments were completed. The storm water collection system consists of underground pipelines and culverts, concrete and earthen channels, and detention basins. A culvert is an enclosed structure that is used to convey water from one area to another across the road, railroad, trail, or other similar obstruction. Culverts come in many sizes and shapes including round, elliptical, flat-bottomed, pear-shaped, and box- like constructions.

The storm system near the vicinity of Spyglass Drive has overflowed during intense storm events. Over the years, approximately eight properties within the Spyglass Drive neighborhood have experienced multiple flooding events including property damage. To help prevent flooding of the residential properties, Public Works staff install sandbags around the perimeter of some of the properties annually during late fall and remove them in the spring. This creates additional work for staff and an inconvenience for the residents.

In October 2017, staff submitted an application to California Office of Emergency Services (CalOES) as part of the Hazard Mitigation Grant Program for FEMA DR-4305 to request funding for both design and construction of improvements to the Spyglass Drive storm drain system.

The City was awarded the CalOES grant in 2021 and has awarded an amount up to $1,209,962 in reimbursement towards this project. The City is required to contribute a 25% local match of eligible grant project costs. The Spyglass Drive Storm Drain Improvements Project is currently under construction and when completed will provide residents within the Spyglass Drive neighborhood with additional storm drain capacity to reduce future overflow conditions.

DISCUSSION: The City Council awarded a contract to Golden Bay Construction, Inc. on March 22, 2022 in the amount of $805,310.25. Concurrent with the award of construction contract, the City Council authorized an agreement with Tanner Pacific, Inc. for the construction management and inspection of the Spyglass Drive Storm Drain Improvements Project in an amount not to exceed $99,254. The consultant was selected based on their extensive

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3 experience in managing and inspecting the construction of storm drain improvement projects.

Construction commenced in September 2022 and was anticipated to be completed by November 2022. However, material procurement issues and unforeseen conditions resulted in a delay to the anticipated project completion date. Proposed improvements can generally be summarized as installation of a larger diameter storm drain pipe for the upstream portion of the system that collects runoff from Sharp Park Road and crosses Spyglass Drive and installation of smaller diameter piping for the localized system collecting runoff from Spyglass Drive.

Construction was originally phased to begin with installation of the more readily available smaller pipe for the downstream system while material procurement on the large diameter storm drain pipe occurred.

However, differing site conditions resulted in a redesign effort which delayed the installation work for the localized system. Furthermore, the originally specified large diameter pipe was determined to be unable to be procured within a reasonable time frame and this required another redesign to change the piping material. This past winter has seen much greater than typical rainfall patterns and the project has experienced over 50 weather related delay days.

Due to not being able to perform material procurement and construction work in parallel as originally envisioned, coupled with the persistent weather related delays, the project is now anticipated to be completed by May 2023.

Due to the conditions described above, the City relied more heavily on the construction management consultant for day-to-day administration for the project. Tanner Pacific, Inc. has provided the City with excellent customer service and value. The firm was able to avoid potential costly change orders related to the aforementioned issues by tenaciously negotiating with the contractor and persistently seeking design solutions from the project designer. Tanner Pacific, Inc. also sought to find project cost savings throughout construction, resulting in several credits to the City by the contractor.

Tanner Pacific, Inc. has requested an amendment in the amount of $92,685 to complete the project through construction closeout, which is anticipated by late Spring 2023. It is desirable for the City to retain Tanner Pacific, Inc.’s services during construction for project continuity.

FISCAL IMPACT: Tanner Pacific, Inc.’s original approved agreement amount was $99,254.

This amendment request for $92,685 results in a total revised agreement amount of $191,939.

These construction management costs will be used towards the required 25% local match and adequate balance from the previously appropriated General Fund Capital Reserve fund is available to cover the requested amendment.

ENVIRONMENTAL IMPACT: The proposed project qualifies for a categorical exemption per Section 15301(b), Existing Facilities, and Section 15303(d) New Construction.

RECOMMENDATION: Consider adoption of a resolution authorizing the City Manager to execute an amendment to the agreement with Tanner Pacific, Inc. for construction management and inspection services in the amount not to exceed $92,685 for the Spyglass Drive Storm Drain Improvements Project

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3 ALTERNATIVES:

Do not authorize the agreement amendment with Tanner Pacific, Inc. and request staff to seek other consultant services to complete the project. This would delay the project and potentially increase costs due to the new consultant being required to become familiar with the project.

ATTACHMENTS:

1. Resolution

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RESOLUTION NO. 2023 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE AGREEMENT WITH TANNER PACIFIC INC. FOR CONSTRUCTION MANAGEMENT

AND INSPECTION SERVICES FOR THE SPYGLASS DRIVE STORM DRAIN IMPROVEMENT PROJECT IN THE AMOUNT NOT TO EXCEED $92,685 WHEREAS, much of the City’s existing storm infrastructure was originally installed in the 1900s and the storm system near the vicinity of Spyglass Drive has overflowed during intense storm events; and
WHEREAS, over the years approximately eight properties within the Spyglass Drive neighborhood have experience flooding events including property damage; and WHEREAS, the City was awarded a CalOES grant in the amount of $1,209,962 to fund both the design and construction of improvements to the Spyglass Drive storm drain system; and
WHEREAS, City Council authorized an agreement with Tanner Pacific, Inc. for the construction management and inspection of the Spyglass Drive Storm Drain Improvements Project; and
WHEREAS, during the course of construction, the project experienced delays from inclement weather, materials procurement, and other unforeseen conditions that extended the construction completion from November 2022 to May 2023; and WHEREAS, the City desires to retain Tanner Pacific, Inc. as the construction manager and inspector through construction completion and project closeout; and WHEREAS, adequate funding is available in the project to fund the requested amendment agreement; and
WHEREAS, the proposed project qualifies for a categorical exemption per Section 15301(b), Existing Facilities, and Section 15303(d) New Construction.

NOW, THEREFORE, BE IT RESOLVED that the San Bruno City Council authorizes the City Manager to execute an amendment to the agreement with Tanner Pacific Inc. for construction management and inspection services for the Spyglass Drive Storm Drain Improvement Project in the amount not to exceed $92,685.

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1 Dated: April 25, 2023
ATTEST:

Lupita Huerta, City Clerk
-o0o-
I, Lupita Huerta, City Clerk, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Bruno this 25th day of April 2023 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:April 25, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Matthew Lee, P.E., Public Works Director
SUBJECT: Consider Adopting a Resolution Authorizing the City Manager to Execute a Construction Contract With United Storm Water, Inc. for the 2023 Trash Capture Device Installation Project in the Amount of $177,425.85, Approving a Construction Contingency of $20,000, and Determining the Project is Exempt Under the California Environmental Quality Act BACKGROUND: The Environmental Protection Agency, under amendments to the 1987 Clean Water Act, imposed regulations that mandated local governments to control and reduce stormwater pollution runoff. The framework for regulating stormwater discharges is through a National Pollution Discharge Elimination System (NPDES) Permit. The permit is implemented and enforced by the California State Water Resources Control Board through its regional agency.

The City of San Bruno (City), in cooperation with the other jurisdictions in San Mateo County jointly reapplied for their Municipal Stormwater NPDES Permit on March 18, 1998. That Permit was extended from the expiration date of June 30, 2004, until the issuance of the Municipal Regional Permit Stormwater NPDES Permit (Order R2-2009-0074), NPDES Permit No.

CAS612008 on October 14, 2009, which dramatically increased responsibilities mandated by the State. The permit became effective on December 1, 2009, and was renewed in 2015 and again in 2022.

Provision C.10 of the 2015 Municipal Regional Stormwater NPDES Permit requires the jurisdictions to implement control measures to reduce trash loads and debris from storm sewer systems (storm drains) which flow untreated directly into San Francisco Bay. Cities were required to reduce trash discharges by 70 percent from 2009 levels by 2017, 80 percent by 2019, and 100 percent reduction by 2022. The 2023 Trash Capture Device Installation Project implements the requirements of the 2015 renewed permit.

On March 28, 2017, the City Council approved an agreement with Schaaf and Wheeler to conduct a Trash Capture Device Installation Feasibility and Conceptual Design Study to meet the ultimate goal of 100 percent reduction by 2022 set forth in the 2015 Permit.

On March 27, 2018, the City Council approved a construction contract with United Storm Water, Inc. for the Trash Capture Device Installation Project. At the completion of the project, the City met the required 80 percent reduction rate.

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0 DISCUSSION: In adherence to the City of San Bruno Municipal Code Section 2.44.070, the 2023 Trash Capture Device Installation project is subject to the Uniform Public Construction Cost Accounting Procedures Act (“the Act”), a state law that allows increased efficiency, decreased delays, and lower costs associated with procurement of relatively small public works contracts that are less than $200,000. The City Council adopted the Act in 2019 as part of its Municipal Code revision process. The Act allows general law cities such as San Bruno to conduct a less formal bidding process for projects that are anticipated to cost less than $200,000. In January 2023, the City sent Public Notices to nine trade journals and three hundred ninety-five contractors to submit the Contractor’s Pre-Qualification Application to be included in the City’s qualified bidder’s list. Currently, eighty-nine contractors are on the City’s bidder’s list. United Storm Water, Inc. is the only qualified contractor on the City’s bidder’s list who can perform this specialized work.

The City received a bid to perform the work from United Storm Water, Inc. in the amount of $177,425.85. Staff reviewed the bid and scope of work and determined that the bid was reasonable based on previous work and costs performed in the past and a similar estimate provided by staff. The completion of this project will allow the City to meet the 100 percent trash reduction rate. Future permit renewals may require the City to perform additional work.

The Trash Capture Device Installation Feasibility and Conceptual Design Study states that all full capture device systems installed shall be certified by the State Water Resources Control Board. United Storm Water, Inc.’s full trash capture devices are approved by the State Water Resources Control Board, San Francisco Bay Regional Water Quality Control Board, and the San Francisco Estuary Partnership.

Additionally, the devices provided by United Storm Water, Inc. are custom built on-site, consistent with devices already installed in other San Bruno catch basins and will help streamline the City’s operations and maintenance.

FISCAL IMPACT: The 2023 Trash Capture Device Installation Project is a project within the approved FY 2022-23 Capital Improvement Program Budget (Project #21003). The agreement not-to-exceed amount is $177,425.85 and is within the current total budget of $250,678 available in the current fiscal year. The total estimated costs for the project are as follows:

Total estimated cost for the project:

Estimated Construction Agreement $ 177,425.85
Estimated Construction Management & Inspection $ 20,000.00 Construction Contingency $ 20,000.00
Total Current Estimate $ 217,425.85

ENVIRONMENTAL IMPACT: This project falls within the Categorical Exemption set forth in the CEQA Guidelines, Section 15301(b), which exempts the operation and minor alteration of existing facilities that involves no expansion of use.

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0 RECOMMENDATION: Consider Adopting a Resolution Authorizing the City Manager to Execute a Construction Contract With United Storm Water, Inc. for the 2023 Trash Capture Device Installation Project in the Amount of $177,425.85, Approving a Construction Contingency of $20,000, and Determining the Project is Exempt Under the California Environmental Quality Act
ALTERNATIVES: Reject bid and do not proceed with work. This alternative will require the City to conduct a new feasibility study. Additionally, the City will no longer be in compliance with requirements of the NPDES permit. As a result, enforcement action may be taken by the California State Water Resources Control Board and third-party regulatory agencies that may include notice of violation and citations.

ATTACHMENTS:

1. Resolution

2. CIP Budget Sheet

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RESOLUTION NO. 2023- ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO AUTHORIZING

THE CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH UNITED STORM WATER, INC. FOR THE 2023 TRASH CAPTURE DEVICE INSTALLATION PROJECT IN THE AMOUNT OF $177,425.85, APPROVING A CONSTRUCTION CONTINGENCY OF $20,000, AND DETERMINING THE PROJECT IS EXEMPT UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the Environmental Protection Agency, under amendments to the 1987 Clean Water Act, imposed regulations that mandated local governments to control and reduce stormwater pollution runoff; and
WHEREAS, the framework for regulating stormwater discharges is through a National Pollution Discharge Elimination System (NPDES) Permit; and WHEREAS, the City of San Bruno, in cooperation with the other jurisdictions in San Mateo County jointly reapplied for their Municipal Stormwater NPDES Permit on March 18, 1998; and
WHEREAS, Provision C.10 of the 2015 Municipal Regional Stormwater NPDES Permit requires the joint permittees to implement control measures to reduce trash loads and debris from storm sewer systems (storm drains) which flow untreated directly into San Francisco Bay; and
WHEREAS, jurisdictions were required to reduce trash discharges by 70 percent from 2009 levels by 2017, 80 percent by 2019, and 100 percent reduction by 2022, or no visual impact; and
WHEREAS, on March 28, 2017, the City Council approved an agreement with Schaaf and Wheeler to conduct a Trash Capture Device Installation Feasibility and Conceptual Design Study to meet the ultimate goal of 100 percent reduction by 2022 set forth in the 2015 Permit; and
WHEREAS, on March 27, 2018, the City Council approved a construction contract with United Storm Water, Inc. for the Trash Capture Device Installation Project. At the completion of the project, the City met the required 80 percent reduction rate; and WHEREAS, the City Council adopted the Act in 2019 as part of its Municipal Code revision process; and
WHEREAS, the Act allows general law cities such as San Bruno to conduct a less formal bidding process for projects that are anticipated to cost less than $200,000; and WHEREAS, United Storm Water, Inc. is the only qualified contractor on the City’s bidder’s list who can perform this specialized work; and WHEREAS, the City received a bid to perform the work from United Storm Water, Inc. in the amount of $177,425.85; and

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WHEREAS, the completion of this project will allow the City to meet the 100 percent trash reduction rate. Future permit renewals may require the City to perform additional work; and
WHEREAS, United Storm Water, Inc.’s full trash capture devices are approved by the State Water Resources Control Board, San Francisco Bay Regional Water Quality Control Board, and the San Francisco Estuary Partnership; and
WHEREAS, adequate project budget is available to fund the agreement; and WHEREAS, this project falls within the Categorical Exemption set forth in the California Environmental Quality Act Guidelines, Section 15301(b), which exempts the operation and minor alteration of existing facilities that involves no expansion of use.

NOW, THEREFORE, BE IT RESOLVED that the City Council of San Bruno hereby authorizes the City Manager to execute an Agreement with United Storm Water, Inc. for the 2023 Trash Capture Device Installation Project in an amount not to exceed $177,425.85 and approving a construction contingency in the amount of $20,000.

AND BE IT FURTHER RESOLOVED that the City Council of San Bruno hereby finds the project exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (Existing Facilities) because the project consists of improvements to and minor modifications of existing streets and sidewalks to install trash capture devices, which do not expand the use of such streets or sidewalks.
---oOo---
I hereby certify that foregoing Resolution No. 2023 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on April 25, 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:April 25, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Matthew Lee, P.E., Public Works Director
SUBJECT: Consider Adoption of a Resolution Accepting the Senior Center Parking Lot Overlay and Trash Enclosure Project as Complete, Authorizing the Filing of Notice of Completion With the San Mateo County Recorder’s Office, and Authorizing Release of the Construction Contract Retention in the Amount of $19,746.34
BACKGROUND: The City’s Capital Improvement Program includes an approved capital project to rehabilitate the parking lot and replace the trash enclosure within the San Bruno Senior Center. The Senior Center is a heavily used facility that is also utilized for official City events such as City Council meetings. The Senior Center parking lot, which patrons of the Senior Center use, was in poor condition and in need of rehabilitation. Additionally, the trash enclosure, which was damaged when struck by a vehicle in 2017, required replacement.

The project to rehabilitate the parking lot and replace the trash enclosure was awarded for construction on October 26, 2021 to Guerra Construction Group. The project scope also included accessibility improvements such as the installation of new curb ramps and additional accessible parking spaces, as well as the relocation and regrading of some existing accessible spaces, construction of sidewalk, and installation of pavement markings.

DISCUSSION: In December 2022, Guerra Construction Group completed construction of the Senior Center Parking Lot Overlay and Trash Enclosure Project. The project included pavement rehabilitation and replacement of the trash enclosure. Accessible curb ramps and pavement delineation were installed.

Change orders were issued to Guerra Construction Group during the construction due to unforeseen conditions and additional work requests by the City. The change orders included work related to installing additional concrete curb and modifying the trash enclosure foundation with a thicker slab.

All construction work as part of this contract has been completed to the satisfaction of the City’s project management team. There are no unresolved stop notices or outstanding construction claims for this project. The construction contract requires a 5% retention, which totals $19,746.34, be withheld by the City. Staff recommends that the City Council accept the project as complete, authorize filing a Notice of Completion with the San Mateo County Recorder’s Office, and approve release of the contract retention.

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1 FISCAL IMPACT: The total approved project budget which included design, construction contract, material testing services, project contingency, and staff project and construction management during construction was $584,528. As detailed below, the total expenditure for the project was approximately $492,260. The project is funded through the Senior Center Bequest Funds in the amount of $634,776. There is a realized cost savings in the amount of approximately $142,516 that will be returned to that fund.

Description Expenditure
Consultant Staff (Design/Geotech/Management) $ 71,993 City Staff (Management/Inspection) $ 24,138
Construction Contract (Golden Bay Construction, Inc) $ 394,927 Reproduction & Advertisement $ 1,201

TOTAL $ 492,259
ENVIRONMENTAL IMPACT: The action is not a project subject to CEQA.  City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.

RECOMMENDATION: Consider adoption of a resolution accepting the Senior Center Parking Lot Overlay and Trash Enclosure Project as complete, authorizing the filing of Notice of Completion with the San Mateo County Recorder’s Office, and authorizing release of the construction contract retention in the Amount of $19,736.34.

ALTERNATIVES:

1. Do not accept the construction contract as complete and do not authorize filing of a Notice of Completion.

ATTACHMENTS:

1. Resolution

2. Project Acceptance Information Form

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RESOLUTION NO. 2023 - ___

RESOLUTION ACCEPTING THE SENIOR CENTER PARKING LOT OVERLAY AND

TRASH ENCLOSURE PROJECT AS COMPLETE, AUTHORIZING THE FILING OF NOTICE OF COMPLETION WITH THE SAN MATEO COUNTY RECORDER’S OFFICE,

AND AUTHORIZING RELEASE OF THE CONSTRUCTION CONTRACT RETENTION IN THE AMOUNT OF $19,746.34
WHEREAS, the City’s Capital Improvement Program includes an approved capital project to rehabilitate the parking lot and replace the trash enclosure within the Senior Center; and
WHEREAS, the Senior Center Parking Lot Overlay and Trash Enclosure Project is an established CIP project funded through the Senior Center Bequest Fund with a total approved project budget of $584,528 which included design, construction, staff management, project contingency, construction management and inspection services, and material testing; and
WHEREAS, change orders were issued for items such as work related to performing additional concrete curb and modifying the trash enclosure foundation with a thicker slab; and WHEREAS, the total expenditure for the project is approximately $492,260; and WHEREAS, the project has a realized cost savings of approximately $142,516; and

WHEREAS, all construction work as part of this contract has been completed to the satisfaction of the City’s project management team; and WHEREAS, the construction contract requires the filing of a Notice of Completion of this project with the San Mateo County Recorder’s Office and release of the construction contract retention in the amount of $19,746.34 upon the acceptance of the project as complete.

NOW, THEREFORE, BE IT RESOLVED that the City Council accepts the Senior Center Parking Lot Overlay and Trash Enclosure Project as complete, authorizes the filing of Notice of Completion with the San Mateo County Recorder’s Office, and authorizes release of the construction contract retention in the amount of $19,746.34.

Dated: April 25, 2023
ATTEST:

Lupita Huerta, City Clerk
-o0o-

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2 I, Lupita Huerta, City Clerk, do hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Bruno this 25th day of April 2023 by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT:Councilmembers:

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1 PUBLIC WORKS DEPARTMENT
Capital Improvement Program
Project Acceptance Information Form
As of March 27, 2023
Contract Name: Huntington / San Antonio
Bicycle Corridor Project Contract No.: 51021/51031
Construction Contractor: Guerra Construction Group
Construction
Management and
Inspection Services
City/Consultant staff

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2 Project Information:

Project Description:

This Project consists of pavement rehabilitation and construction of a trash enclosure within the Senior Center parking lot. Other improvements include accessible curb ramps, construction of sidewalk and pavement delineation.

Construction
Contract Award: Guerra Construction Group – October 26, 2021 Start of
Construction: March 2022
Contract Change
Orders (CCO):

Change orders were issued to Golden Bay Construction, Inc. during the construction due to unforeseen conditions and additional work requests by the City. The change orders included work related to performing additional concrete curb and modifying the trash enclosure foundation with a thicker slab.

Substantial
Completion: October 2022
Final Completion: December 2022
Notice of
Completion: Scheduled for filing on April 26, 2023

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3 Construction Project Costs:

Budget Actual
TOTAL PROJECT $ 584,528.00 $ 492,259.43
Consultant Design/Management (Wilsey
Ham) $ 77,500.00 $ 54,282.80
Construction Contract (Guerra Construction
Group) $ 349,528.00 $ 349,528.00
Material and Compaction Testing Services
(Twining) $ 20,000.00 $ 17,710.51
Contingency $ 60,000.00 $ - Contract Change Orders CCOs $ - $ 45,398.84 Staff Design, Management and Inspection $ 77,500.00 $ 24,138.10 Reproduction & Advertisement - $ 1,201.18

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:April 25, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Bobby Magee, Interim Finance Director
Matthew Lee P.E., Public Works Director
SUBJECT: Consider Adoption of a Resolution Directing Staff to Initiate the Property Owner Notice, Hearing, and Protest Process as Required by Proposition 218 for the Proposed Sewer Rate Increases for FY 2023-24 Through 2027-28
BACKGROUND:

The Wastewater Enterprise Fund accounts for all operational and capital expenditures needed to operate, maintain, and improve these critical utility systems. The Fund operates without tax support as each is funded solely by ratepayers. The City Council last adopted a multi-year sewer rate increase plan on May 23, 2017, setting rates for a five-year period through June 30, 2021. The 2017-21 rates for both the Water and Sewer enterprise Funds were based on a 10- year financial plan and adjusted the same amounts each year. The annual rate increase for Sewer was 5%. The City Council suspended the final year of the 5-year sewer rate increase schedule at the February 9, 2021 City Council Meeting.

The City awarded a contract in March 2022 to Bartle Wells Associates of Berkeley, California, to update the City’s sewer and water rate model to ensure revenues continue covering operational costs and necessary infrastructure improvements. Work on the study has been on-going since that time and, as such, staff did not propose rate increases for the current fiscal Year (FY) 2022- 23 fiscal year. The combination of the suspended of the 2021 rate increase and the fact that staff did not propose to increase rates in FY 2022-23, has resulted in sewer rates remaining unchanged since 2020.

City Council Meeting History on Sewer Rate Discussion
Staff and the Bartle Wells Associates consultants have met and presented status updates and rate recommendations to the City Council over the last six months. At the December 13, 2022 City Council Meeting, staff provided a brief update on the Rate Study development progress.

On February 14 2023 and February 28 2023, the City Council held two Study Sessions on the Sewer Rate Study. Staff reviewed the Rate Study findings, the 5% rate recommendations, and the Proposition 218 notification process. The Water and Sewer Rate Study Report that was reviewed at the City Council meetings is provided in Attachment 3. At the February 28 2023 City Council Meeting, Councilmembers directed staff to return to the City Council to initiate the Proposition 218 Notice. Councilmembers also directed staff to separate the sewer and water rate proposals. Staff are scheduled to present the proposed water rate increases to the City Council in the latter part of 2023 for a January 1, 2024 effective date.

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DISCUSSION:

After reviewing the fixed, operational, and capital improvement priorities, City staff and Bartle Wells Associates developed a financial plan to adequately fund these costs over the next 5 years. Below is the proposed rate schedule for sewer utility rate payers.

Proposed Sewer Rate Increases
July 1
2023
July 1
2024
July 1
2025
July 1
2026
July 1
2027
5% 5% 5% 5% 5%
Following are the proposed sewer rates for FY 2023-24 through 2027-28 fixed and variable sewer rates for residential and commercial services. This table will also be included in the Proposition 218 public notice provided in Attachment 2. Wastewater service charges are billed bi-monthly on the City’s combined utility bill.

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Note: One hundred cubic feet (ccf) equals approximately 748 gallons.

Explanation of Basis for Rate Increases
Reliable and safe sewer collection and treatment is among the most fundamental and important services delivered to our community. These services are funded solely from sewer customer rates.

The proposed annual 5% rate increases for each of the next five years will provide necessary revenue to cover the projected operational and maintenance costs for the City’s sewer utility. The proposed rates also continue the Capital Improvement Program to provide for the necessary investment in improving and replacing the City’s aging and deteriorating sewer infrastructure.

Approximately $54 million of sewer system capital improvements over the next five years primarily consist of rehabilitation and replacement of aging sewer pipelines, but also include pump station improvements and the City’s share of the capital improvement projects of the Current
Sewer July 1 July 1 July 1 July 1 July 1
Rates 2023 2024 2025 2026 2027
Single Family Residential $32.27 $33.96 $35.74 $37.61 $39.59 $41.66 All Other Customers (Based on Water Meter Size)
Meter Size
3/4-inch $32.27 $33.96 $35.74 $37.61 $39.59 $41.66
1-inch 53.78 56.60 59.57 62.69 65.98 69.43
1-1/2 inch 107.57 113.20 119.14 125.38 131.95 138.87
2-inch 172.11 181.13 190.62 200.61 211.12 222.19
3-inch 322.70 339.61 357.41 376.14 395.85 416.60
4" & Larger 537.83 566.02 595.68 626.90 659.76 694.33
Residential $12.37 $12.98 $13.61 $14.28 $14.97 $15.71
Commercial
C-1 Light Commercial $11.50 $12.05 $12.63 $13.23 $13.87 $14.53 C-2 Medium Commercial 12.37 12.98 13.61 14.28 14.97 15.71 C-3 Heavy Commercial 17.61 18.54 19.51 20.54 21.62 22.76 C-4 Special Commercial 22.86 24.11 25.42 26.81 28.27 29.82 Government 12.37 12.98 13.61 14.28 14.97 15.71
Industrial
I-1 Light Industrial $12.37 $12.98 $13.61 $14.28 $14.97 $15.71 I-2 Industrial Flow 8.88 9.27 9.68 10.10 10.54 11.01
COD per lb3 0.68 0.72 0.76 0.81 0.85 0.90
SS per lb 1.41 1.49 1.58 1.68 1.78 1.88
Proposed Wastewater Rates
Proposed Wastewater Rates Effective On or After

MONTHLY SERVICE CHARGES
Fixed monthly charge per account

QUANTITY CHARGES
Billed per hundred cubic feet (hcf) based on customer classification

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Water Quality Control Plant (WQCP). The improvements are needed to address existing deficiencies, rehabilitation and/or replace aging infrastructure that has reached the end of its useful life, and to support safe and reliable service. In addition, the WQCP anticipates a future debt issuance to support a major upgrade to its biosolids handling process. San Bruno’s share of debt service is estimated at approximately $800,000 per year starting FY 2026-27. The detailed analysis of the improvements needed are included in the final Water and Sewer Rate Study Report provided in Attachment 3.

Sewer Capital Projects
Over the last five years, prioritization was given to wastewater projects to ensure compliance with the 2011 Baykeeper Consent Decree (CD) and Regional Water Board’s Cease and Desist Order (CDO). The City’s compliance obligations ended in 2021. Of the projects identified in the 2017 Rate Study, 80% were completed. For those projects not yet completed, 100% was due to delays caused by an outside entity.

The most significant factor impacting the Wastewater utility system is the age of infrastructure. The average sewer pipeline age is over 60 years old with some sections over 100 years old.

Below is a Sewer CIP expenditure summary over the last five years. The pandemic and staffing shortages limited capital project construction during FY2021-22.

Fiscal Year Wastewater CIP
2017-18 $ 5,086,120
2018-19 6,677,943
2019-20 7,585,130
2020-21 3,633,794
2021-22 1,181,922
TOTAL $ 24,164,909

Annual sewer operational expenditures are relatively consistent from year to year. For FY 2022-23, the operations budget is $11,495,848.

Explanation of Proposed Rate Increases
The proposed rate increases are designed to put the City on a long-term path toward supporting balanced budgets while providing adequate funding for ongoing rehabilitation and replacement of aging sewer system infrastructure to support safe and reliable service. As shown in the chart below, the projections assume the City draws down approximately $21 million of fund reserves to help fund projected capital improvements while rates are being phased in.

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The cash flow projections indicate the need to raise sewer rates by 5% each year for the next 5 years in order to support the sewer utility’s projected operating and capital funding needs. These projected rate increases follow a period of no rate increases over the past two years as shown below. With the proposed rates, the average annual sewer rate increase since 2016 equates to approximately 4.1% as shown in the chart below.

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The 5% sewer rate increases represent the overall level of annual rate increases proposed. Actual impacts to customers monthly water bills may vary a little based on customer class and billed usage due to minor modifications to the rate structure designed to keep sewer rates aligned with the cost of providing service.

Property Owner Notice and Protest Process
The proposed rate adjustments are subject to Section 6 of Article XIIID of the California Constitution (Proposition 218). Therefore, at this time staff proposes to initiate the public hearing process required by Proposition 218 for the City Council to consider adopting the new FY 2023-24 through FY 2027-28 rates by resolution effective July 1, 2023.

In summary, Proposition 218 requires the City Council to hold a noticed public hearing on the rates. The hearing cannot occur less than 45 days after mailing a notice of the proposed rates to the record owners of property and to the customers subject to the rates. At the conclusion of the public hearing, the City must tabulate the written protests against the proposed rates and determine if a majority protest exists. A majority protest will exist if written protests have been presented, and not withdrawn, by the record owners or customers of record of a majority of the parcels subject to the rates. If a majority protest exists, the City Council cannot adopt the proposed rates.

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Rate Adjustment Adoption Timeline
As directed by the City Council at the February 28, 2023 City Council Meeting, the Proposed Sewer Rate Increases for FY 2023-24 Through 2027-28 are planned to be adopted by Resolution at the June 13, 2023 City Council meeting. Proposition 218 requires that all property owners be notified of increases to water and wastewater utility rates. If a majority of property owners file written protests the proposed rate increase cannot be implemented. In order to establish a new rate structure for 2023-24 by July 1, 2023, the following schedule is proposed for this effort:

April 25, 2023 City Council authorizes mailing 45-day notice to property owners per Proposition 218 in rate adoption process
April 26 to 29, 2023 All notices mailed / start 45-day period, on or before April 29 (Exact date to be determined)
June 13, 2023 City Council holds public hearing, considers any protests, takes action to adopt new FY 2023-24 through FY 2027-28 rates by resolution effective July 1, 2023
July 1, 2023 New rates take effect

FISCAL IMPACT:

Administering the Proposition 218 process will cost approximately $12,200 for the mailing and postage which will be funded from the available Wastewater (Sewer) Enterprise Fund balance.

The proposed rate structure will provide 5% in total additional revenues to support operational and capital needs, including replacement of aging infrastructure, for the 5-year time period from 2023-24 through 2027-28.

Over the 5-year financial planning period, total planned wastewater capital investment is $54 million. The proposed rate model was structured so that rate revenue alone will be sufficient to cover operational and capital costs over the 5-year period and the City does not anticipate debt- financing will be necessary.

ENVIRONMENTAL IMPACT:

The action is not a project subject to CEQA. City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.

RECOMMENDATION:

Consider adoption of a Resolution directing staff to initiate the property owner notice, hearing, and protest process as required by Proposition 218 for the proposed sewer rate increases for FY 2023-24 through 2027-28.

ALTERNATIVES:

1. Do not proceed with the process to adopt new rates at this time.

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ATTACHMENTS:

1. Resolution

2. Proposition 218 Public Notice

3. Final Water and Sewer Rate Study Report

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1 1
6 3
7 RESOLUTION NO. 2023- ___

RESOLUTION DIRECTING STAFF TO INITIATE THE PROPERTY OWNER NOTICE, HEARING, AND PROTEST PROCESS AS REQUIRED BY PROPOSITION 218 FOR PROPOSED SEWER RATE INCREASES FOR FISCAL YEAR 2023-24 THROUGH 2027-28 WHEREAS, the Wastewater Enterprise Fund accounts for all operational and capital expenditures necessary to operate, maintain, and improve this critical utility system; and WHEREAS, the Wastewater Enterprise Fund is are supported by proceeds collected from ratepayers and the City is required to ensure that revenues fully cover all costs to operate and maintain the utilities; and
WHEREAS, the City Council last adjusted sewer rates on May 26, 2017 that set rates for a five-year period through June 30, 2021; and
WHEREAS, the City Council cancelled the final year of the five-year sewer rate schedule at the February 9, 2021 City Council Meeting; and
WHEREAS, the City awarded a contract in March 2022 to Bartle Wells Associates of Berkeley, California, to update the City’s sewer and water rate model and prepare a Water and Sewer Rate Study to ensure revenues continue covering operational costs and necessary infrastructure improvements. The City’s aging sewer infrastructure requires significant rehabilitation and replacement. After reviewing the fixed, operational, and capital improvement priorities, City staff and Bartle Wells Associates developed a financial plan to adequately fund these costs over the next five years; and
WHEREAS, the City Council held two Study Sessions on the Sewer Rate Study on February 14 2023 and February 28 2023. At the February 28 2023 City Council meeting, Councilmembers directed staff to return to the City Council to initiate the Proposition 218 Notice for the proposed rate increases; and
WHEREAS, the Sewer Rate Study rate evaluation reveals that rate increases over the next five years, from fiscal year 2023-24 through fiscal year 2027-28, are needed for the sewer (wastewater) utility to cover necessary operating and capital improvement costs. The new rates would become effective on July 1, 2023; and
WHEREAS, the Sewer Rate Study recommends minor changes to the rate structure to more accurately assign various costs to San Bruno customers; and

WHEREAS, Section 6 of Article XIIID of the California Constitution (Proposition 218) requires that property owners receive notice of a public hearing on any proposed rate increases, allowing a 45-day protest period before the City Council takes any action on the matter at a public hearing; and
WHEREAS, the initiation of the property owner notice, hearing, and protest process as required by Proposition 218 for the proposed sewer rate increases for FY 2023-24 through 2027- 28 is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.

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2 1
6 3
7 NOW, THEREFORE, BE IT RESOLVED that the City Council hereby directs staff to initiate the property owner notice, hearing, and protest process as required by Proposition 218 for proposed sewer rate increases for fiscal year 2023-24 through 2027-28.

Dated: April 25, 2023
ATTEST:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

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1 Notice of Public Hearing Regarding Proposed Increase to City of San Bruno Sewer (Wastewater) Rate

The City of San Bruno is proposing sewer rate increases over the next five years to provide adequate funding for operations, the City’s contractual share of costs for wastewater treatment at the regional Water Quality Control Plant, and high -priority capital improvements needed to support safe and reliable service including rehabilitation and replacement of aging sewer system infrastructure. San Bruno’s sewer utility is a financially self -supporting enterprise that relies primarily on revenues from service charges. As such rates need to be set adequate levels to support the costs of providing service.

Notice is hereby given that the City Council of the City of San Bruno will hold a public hearing on the proposed sewer rate increases as follows:

Date: Tuesday, June 13, 2023
Time: 7:00 p.m., or as soon thereafter as the matter may be heard Place: San Bruno Senior Center
1555 Crystal Springs Road
San Bruno, CA 94066

Members of the public may attend the meeting in person at the San Bruno Senior Center or attend by any other options as described in City Council Agenda. Please check the agenda for the June 13, 2023, meeting for additional information about how you can participate in the public hearing.

San Bruno Sewer Rates to Remain in the Middle Range for San Mateo County The proposed sewer rate increases are provided in the chart below. For most customers, the proposed increases will equate to approximately 5% in each of the next five years, with the first increase effective starting July 1, 2023. The exact percentage increase will vary depending on customer class, meter size, and amount of billed wastewater usage.

The City’s sewer charges for a typical home are currently in the middle range compared with other agencies in San Mateo County and are projected to remain the middle range in future years.

Rate Increases Needed to Fund Operations & Replacement of Aging Infrastructure San Bruno’s sewer rates have not been adjusted since July 1, 20 20. However, the sewer utility has been facing rising costs for operations as well as for its contractual share of costs for wastewater treatment and infrastructure improvements at the regional Water Quality Control Plant operated by South San Francisco. The proposed rates are needed to provide adequate funding for sewer system operations, maintenance, debt service, wastewater treatment, and capital improvements to both the City’s aging sewer collection system and the Water Quality Control Plant . In recent years, the City has replaced and upgraded four sewer pump stations and replaced 33,730 lineal feet of pipelines.

Over the next five years, the City will continue moving forward with its sewer pipeline replacement program. San Bruno has a lot of aging sewer pipelines that were installed 50 to 100 years ago that are reaching the end of their useful life.

Customer Assistance Program
The City is aware that the proposed wastewater rate increases will place some additional financial burden on ratepayers and offers utility rate discount programs for water, sewer, and CityNet services based on income eligibility. This discount is currently set at 25% of the Water and Sewer rate. Customers who are eligible for the discount program are encouraged to apply. Information about the City’s Low Income Application discount programs is available online at https://www.sanbruno.ca.gov/274/Forms-New-Service-Applications.

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2 Proposed Sewer Rates
The City proposes to phase in a series of gradual annual sewer rate increases over the next five years, as shown below.

San Bruno’s sewer rates include two components:
• Fixed Monthly Service Charges: Single family homes pay a fixed Monthly Service Charge per residence. All other customers – including commercial, governmental, industrial and multi- family residential accounts – pay fixed charges based on water meter size.
• Quantity Charges: Quantity charges vary by customer class and wastewater strength and are billed based on each customer’s usage. Residential customers are billed based on metered water use from two bi-monthly billing periods from January through April , a period of minimal outdoor irrigation. Commercial and other customers are billed based on metered water use during each billing period throughout the year. The City’s quantity charges are billed in units of one hundred cubic feet (hcf). One hcf equals approximately 748 gallons. Hence the proposed Residential quantity charges will increase from the current equivalent of approximately 1.65 cents per gallon to 2.10 cents per gallon over the next five years . The proposed rates also account for some adjustments designed to keep rates aligned with the cost of providing service to each customer class.

Sewer rates are billed bi-monthly (once every two months) on the City’s combined utility bill.

Note: One hundred cubic feet (hcf) equals approximately 748 gallons.

Public Hearing and Protest Process
At the public hearing, the City Council will hear and consider all objections or protests to the proposed increases to sewer rates. Any property owner or property tenant that is directly responsible for payment of sewer rates (each a “customer”) may submit a written protest against the proposed increase. If a parcel has more than one customer, only one written protest against the proposed increase will be counted. A majority protest against the proposed increases will exist if at the end of the public hearing there are written protests submitted by a majority of the customers subject to the proposed rate increases. The City Council cannot adopt the proposed rate increases if a majority protest exists.

Written protests may be emailed to [email protected] or mailed or personally delivered to: Sewer Rate Protest, City of San Bruno, Office of the City Clerk, 567 EI Camino Real, San Bruno, CA 94066. Written protests may also be personally delivered to the City Clerk during the public hearing. To be counted, the protest must (1) be in writing, (2) state opposition to the proposed rate increase, (3) identify the parcel (by assessor’s parcel number or street address), (4) include the original signature o f the customer submitting the protest, and (5) be received before the conclusion of the public hearing on June 13, 2023. Protests which are mailed or delivered to the Office of the City Clerk must arrive prior to 4:00 p.m. on June 13, 2023, to be counted. All written protests, including those received by email, must include a signature of the customer to be counted.

Current
Sewer July 1 July 1 July 1 July 1 July 1
Rates 2023 2024 2025 2026 2027
Single Family Residential $32.27 $33.96 $35.74 $37.61 $39.59 $41.66 All Other Customers (Based on Water Meter Size)
Meter Size
3/4-inch $32.27 $33.96 $35.74 $37.61 $39.59 $41.66
1-inch 53.78 56.60 59.57 62.69 65.98 69.43
1-1/2 inch 107.57 113.20 119.14 125.38 131.95 138.87
2-inch 172.11 181.13 190.62 200.61 211.12 222.19
3-inch 322.70 339.61 357.41 376.14 395.85 416.60
4" & Larger 537.83 566.02 595.68 626.90 659.76 694.33
Residential $12.37 $12.98 $13.61 $14.28 $14.97 $15.71
Commercial
C-1 Light Commercial $11.50 $12.05 $12.63 $13.23 $13.87 $14.53 C-2 Medium Commercial 12.37 12.98 13.61 14.28 14.97 15.71 C-3 Heavy Commercial 17.61 18.54 19.51 20.54 21.62 22.76 C-4 Special Commercial 22.86 24.11 25.42 26.81 28.27 29.82 Government 12.37 12.98 13.61 14.28 14.97 15.71 Industrial
I-1 Light Industrial $12.37 $12.98 $13.61 $14.28 $14.97 $15.71 I-2 Industrial Flow 8.88 9.27 9.68 10.10 10.54 11.01 COD per lb3 0.68 0.72 0.76 0.81 0.85 0.90 SS per lb 1.41 1.49 1.58 1.68 1.78 1.88 Proposed Wastewater Rates
Proposed Wastewater Rates Effective On or After

MONTHLY SERVICE CHARGES
Fixed monthly charge per account

QUANTITY CHARGES
Billed per hundred cubic feet (hcf) based on customer classification

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2023 Water & Sewer Rate Study
February 2023
City of San Bruno

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Bartle Wells Associates
2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel: 510.653.3399
www.bartlewells.com
2023 Water & Sewer Rate Study
February 2023
Prepared by:

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February 23, 2023
City of San Bruno
567 El Camino Real
San Bruno, CA 94066
Attn: Matthew Lee, Public Works Director
Re: 2023 Water & Sewer Rate Study
Bartle Wells Associates is pleased to submit the attached 2023 Water & Sewer Rate Study . The study develops long-term financial projections for the City’s water and sewer utilities and recommends rates designed to fund the City’s projected costs of providing water and sewer service. The proposed rates are phased in over the next five years to fund water and sewer utility operations and support adequate funding for rehabilitation and replacement of aging water and sewer system infrastructure.

After two years of no water or sewer rate increases, the report recommends the City resume its historical practice of implementing gradual annual rate increases to keep revenues aligned with projected funding needs. The report recommends a series of overall 6% annual water rate increases and 5% annual sewer rate increases in each of the next five years. Proposed rates also include some minor adjustments to the water and sewer rate structures designed to keep the City’s rates aligned with the costs of providing service.

San Bruno’s water and sewer rates are both currently in the middle range compared to other regional agencies in San Mateo County and are projected to remain in the middle range with implementation of the proposed rate increases.

I enjoyed working with the City on this assignment and appreciate the ongoing collaboration, input and assistance received from City staff. Please contact me anytime if you have questions about this report or other issues related to utility rates and finance.

BARTLE WELLS ASSOCIATES
Alex Handlers, CIPMA
Principal/Vice-President
2625 Alcatraz Ave, #602
Berkeley, CA 94705
Tel 510 653 3399
www.bartlewells.com

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BARTLE WELLS ASSOCIATES
San Bruno 2023 Water & Sewer Rate Study

TABLE OF CONTENTS
1 Background, Objectives & Proposed Rates ..................................................... 1

1.1 Background ..................................................................................................................... 1

1.2 Water System Overview ................................................................................................. 1

1.3 Sewer System Overview ................................................................................................. 2

1.4 Capital Improvement Funding Needs............................................................................. 2

1.5 Policy Goals & Objectives ............................................................................................... 3

1.6 Regional Water & Sewer Rate Survey ............................................................................ 3

1.7 Proposed Water & Sewer Rates ..................................................................................... 4 2 Legal Requirements & Rate Methodology ...................................................... 7

2.1 Constitutional Rate Requirements ................................................................................. 7

2.1.1 Article 10, Section 2 ............................................................................................. 7

2.1.2 Article 13D, Section 6 ........................................................................................... 7

2.2 Rate-Setting Methodology ............................................................................................. 8 3 Water Financial Plan & Rate Derivation ....................................................... 10

3.1 Current & Historical Water Rates ................................................................................. 10

3.2 Regional Water Rate Survey ......................................................................................... 12

3.3 Financial Challenges / Key Drivers of Rate Increases ................................................... 13

3.3.1 Capital Improvements & Replacement of Aging Infrastructure ........................ 13

3.3.2 Wholesale Water Rate Increases ....................................................................... 14

3.3.3 Ongoing Operating Cost Inflation ...................................................................... 15

3.4 Outstanding Debt Service ............................................................................................. 15

3.5 Water Enterprise Financial Projections ........................................................................ 16

3.6 Projected Water Rate Increases ................................................................................... 19

3.7 Water Use ................................................................................................................... 20

3.8 Water Rate Derivation .................................................................................................. 23

3.9 Cost Recovery Allocations ............................................................................................ 23

3.10 Water Accounts & Meter Equivalents .......................................................................... 24

3.11 Fixed Monthly Service Charges .................................................................................... 25

3.12 Water Quantity Charge Derivation .............................................................................. 26

3.13 Proposed Water Rates .................................................................................................. 30

3.14 Water Rate Impacts ...................................................................................................... 31

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San Bruno 2023 Water & Sewer Rate Study

4 Sewer Financial Plan & Rate Derivation ....................................................... 32

4.1 Current & Historical Sewer Rates ................................................................................. 32

4.2 Regional Sewer Rate Survey ......................................................................................... 34

4.3 Financial Challenges / Key Drivers of Rate Increases ................................................... 35

4.3.1 Capital Improvements & Replacement of Aging Infrastructure ........................ 35

4.3.2 Ongoing Operating Cost Inflation ...................................................................... 35

4.4 Outstanding Debt Service ............................................................................................. 36

4.5 Sewer Enterprise Financial Projections ........................................................................ 37

4.6 Sewer Rate Projections ................................................................................................ 40

4.7 Sewer Use ................................................................................................................... 41

4.8 Sewer Rate Derivation .................................................................................................. 42

4.9 Cost Recovery Allocations ............................................................................................ 42

4.10 Sewer Accounts & Billing Equivalents .......................................................................... 43

4.11 Fixed Monthly Service Charges .................................................................................... 44

4.12 Sewer Quantity Charge Derivation ............................................................................... 45

4.13 Proposed Sewer Rates .................................................................................................. 47

4.14 Sewer Rate Impacts ...................................................................................................... 49

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BARTLE WELLS ASSOCIATES
San Bruno 2023 Water & Sewer Rate Study

LIST OF TABLES
Table 1 – Proposed Water Rates .................................................................................................... 5 Table 2 – Proposed Sewer Rates ..................................................................................................... 6 Table 3 – Water Rates ................................................................................................................... 10 Table 4 – Water Capital Improvement Program ........................................................................... 13 Table 5 – Outstanding Water Debt Service .................................................................................. 15 Table 6 – 10-Year Water Cash Flow Projections ........................................................................... 17 Table 7 – Projected Water Rate Increases .................................................................................... 19 Table 8 – Water Use by Class & Tier ............................................................................................. 20 Table 9 – Water Use by Month ..................................................................................................... 21 Table 10 – Sources of Water Supply by Month ............................................................................ 22 Table 11 – Cost Recovery Allocation ............................................................................................. 23 Table 12 – Fixed & Quantity Charge Revenue Recovery .............................................................. 24 Table 13 – Water Accounts & Meter Equivalents ......................................................................... 25 Table 14 – Fixed Rate Derivation January 1, 2028 ........................................................................ 25 Table 15 – Projected Fixed Services Charges January 1, 2028 ..................................................... 26 Table 16 – Projected Water Sales ................................................................................................. 28 Table 17 – Water Quantity Charge Derivation ............................................................................. 29 Table 18 – Proposed Water Rates ................................................................................................ 30 Table 19 – Water Rate Impacts ..................................................................................................... 31 Table 20 – Sewer Rates ................................................................................................................. 33 Table 21 – Sewer Capital Improvement Program ......................................................................... 35 Table 22 – Outstanding Sewer Debt Service ................................................................................. 36 Table 23 – 10-Year Sewer Cash Flow Projections ......................................................................... 38 Table 24 – Projected Sewer Rate Increases .................................................................................. 40 Table 25 – Sewer Use by Class ...................................................................................................... 41 Table 26 – Fixed & Variable Revenue Recovery ........................................................................... 42 Table 27 – Sewer Accounts & Billing Equivalents ......................................................................... 43 Table 28 – Fixed Sewer Rate Derivation ....................................................................................... 44 Table 29 – Variable Rate Recovery from Wastewater Flow & Strength....................................... 45 Table 30 – Sewer Flow & Loadings by Customer Class ................................................................. 46 Table 31 – Derivation of Unit Rates for Wastewater Flow & Strength ........................................ 46 Table 32 – Sewer Quantity Charges by Customer Class ............................................................... 47 Table 33 – Proposed Sewer Rates ................................................................................................. 48 Table 34 – Single Family Residential Sewer Rate Impacts ............................................................ 49 Table 35 – Commercial Sewer Rate Impacts ................................................................................ 50

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BARTLE WELLS ASSOCIATES
San Bruno 2023 Water & Sewer Rate Study

LIST OF FIGURES
Figure 1 – Combined Single Family Residential Water & Sewer Rate Survey ................................ 4 Figure 2 – Single Family Residential Water Rate Survey .............................................................. 12 Figure 3 – Historical & Projected SFPUC Wholesale Water Rates ................................................ 14 Figure 4 – Water Utility Projected Revenues & Expenses ............................................................ 18 Figure 5 – Historical & Projected Water Rate Increases ............................................................... 19 Figure 5 – Single Family Water Use by Tier .................................................................................. 27 Figure 7 – Single Family Residential Sewer Rate Survey............................................................... 34 Figure 8 – Sewer Utility Projected Revenues & Expenses ............................................................ 39 Figure 9 – Historical & Projected Sewer Rate Increases ............................................................... 40

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BARTLE WELLS ASSOCIATES 1
San Bruno 2023 Water & Sewer Rate Study
1 BACKGROUND, OBJECTIVES & PROPOSED RATES

1.1 Background
The City of San Bruno is located approximately 12 miles south of downtown San Francisco in San Mateo County, California. The City encompasses roughly 5.5 square miles and has a population of approximately 43,000. The City was incorporated in 1914 and is a General Law City. The City provides water and sewer service to residential, commercial, institutional, and light industrial accounts in and adjacent to the City.

The City’s water and sewer utilities are self-supporting enterprises that rely predominantly on revenues from water and sewer rates to fund the costs of providing service.

The City has provided good financial stewardship via adoption of gradual annual water and sewer rate increases most years for the past 20 years. These increases have put the water and sewer enterprises on a much stronger financial footing, helped keep rates aligned with the costs of providing service and supported a significant increase in funding for rehabilitation and replacement of aging water and sewer system infrastructure.

The City last conducted water and sewer rate studies in 2017 leading to adoption of 5 years of 5% annual water and sewer rate increases effective July 1, 2017 through 2021. However, the City cancelled the final 5% water and sewer rate increases that had been scheduled to become effective July 1, 2021 and has subsequently been able to defer raising rates. Current rates have been in effect since July 1, 2020.

San Bruno’s water and sewer rates are both currently in the middle range compared to other regional agencies in San Mateo County. The City’s combined water and sewer charges for a typical single family home were the median, with half of other agencies either higher or lower than San Bruno, based on a survey of 19 regional agencies. With the proposed rate increases, the City’s water and sewer bills are projected to remain in the middle range. Many other regional agencies have adopted or are anticipating rate increases in upcoming years. The City bill’s customers via a combined bi-monthly bill that includes water rates, sewer rates, and garbage rates.

1.2 Water System Overview
The City owns and operates a water system that includes 5 groundwater wells, 8 water storage tanks and pump stations, and roughly 120 miles of water main pipelines. Most of the City’s water pipelines are original metal pipes with a life expectancy of about 50 years. Many of these pipelines are 70 to 100 years old and subject to leaks and breaks. Over the past 5 years, the City has averaged about 100 water main breaks per year. The City’s aging water infrastructure requires significant rehabilitation and replacement.

The City has been proactively addressing its capital improvement needs but needs to continue its long- term programs to replace aging infrastructure.

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The City’s water supply includes local groundwater production, which typically accounts for roughly 2/3rds of total supply, and wholesale water purchased from the San Francisco Public Water Commission (SFPUC), which accounts for roughly 1/3rd of water supply. A small amount of water purchased from the North Coast County Water District.

1.3 Sewer System Overview
The City owns and operates a sewer collection system that includes roughly 90 miles of sewer pipelines (comprised of approximately 2,415 pipe segments) and 6 sewer pump stations. Wastewater is conveyed to the South San Francisco - San Bruno Water Quality Control Plant (WQCP) for treatment and effluent disposal via the North Bay System Unit. The WQCP is jointly owned by San Bruno and the City of South San Francisco pursuant to a Joint Powers Agreement and is located in and operated by South San Francisco. San Bruno owns approximately 25% of the capacity in the WQCP.

Similar to the water system, the City’s aging sewer infrastructure requires significant rehabilitation and replacement. Over the past decade, the City has rehabilitated and rebuilt it sewer pump stations but needs to continue its long-term sewer mainline replacement program. To minimize impact and maximize efficiency, the City replaces both water and sewer pipelines concurrently. The City is also contractually responsible to fund its share of infrastructure improvements to the Water Quality Control Plant.

1.4 Capital Improvement Funding Needs
While the City has completed a significant amount of capital improvements over the past decade, in recent years some projects were temporarily delayed due to staffing limitations and other factors including time needed for planning, design and permitting. These deferred costs helped enable the City to cancel its water and sewer rate increases that were scheduled to go into effect in 2021 and pass along the savings to customers via no rate increases for the past 2 years. However, the City has been proceeding with its capital program and has a number of large projects in design which will soon require funding.

Both water and sewer enterprises are facing substantial capital improvement funding needs in upcoming years. The City currently anticipates funding roughly $85 million of water system capital improvements and roughly $71 million of wastewater system capital improvements over the next 5 years. The improvements are needed to address existing deficiencies, rehabilitate and/or replace aging infrastructure that has reached the end of its useful life, and support safe and reliable service.

Water capital improvements planned for the next 5 years include the replacement and seismic upgrade of 3 older water storage tanks as well as replacement of aging water pipelines and various other improvements to wells, pressure regulating stations, and pump stations. Wastewater capital improvements primarily consist of rehabilitation and replacement of aging sewer pipelines but also include pump station improvements and San Bruno’s share of capital improvements to the Water Quality Control Plant.

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1.5 Policy Goals & Objectives
Key policy goals and objectives of the water and sewer rate studies include:

1. Develop water and sewer rates that:
a. recover the City’s costs of providing water and sewer service b. are fair and equitable to all customers
c. are easy to understand and implement
d. comply with the legal requirements of Proposition 218 and other California law e. provide adequate funding for capital improvement needs including near-term funding priorities and long-term rehabilitation and replacement of aging infrastructure

2. Recommend rates that maintain long-term financial sustainability of the water and sewer utilities and put the water and sewer enterprises on course for balances budgets.

3. Aim for steady, gradual annual rate increases to help minimize the annual impact on customers and mitigate the potential for larger, periodic rate spikes.

4. Maintain a prudent level of fund reserves.

1.6 Regional Water & Sewer Rate Survey
The chart on the following page compares the combined water and sewer bills for a typical single family home to those of other agencies in San Mateo County. Rates can vary widely from agency to agency due to a wide range of factors. The City’s combined water and sewer rates for a typical home are in the middle range compared to other regional agencies.

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Figure 1 – Combined Single Family Residential Water & Sewer Rate Survey

1.7 Proposed Water & Sewer Rates
The tables on the following pages show schedules of proposed water and sewer rates. Consistent with the City’s historical practices, the proposed rates are phased in gradually over the next 5 years. Proposed rates account for both overall rate increases as well as some relatively minor rate structure adjustments to keep rates aligned with the cost of providing service. As proposed, water rate increases would become effective on January 1 of each year, when water is low, and sewer rate increases would continue to become effective on July 1 at the beginning of each fiscal year.

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Table 1 – Proposed Water Rates

Current Water Jan-1 Jan-1 Jan-1 Jan-1 Jan-1Rates 2024 2025 2026 2027 2028Overall Rate Increase Target6% 6% 6% 6% 6%MONTHLY SERVICE CHARGESFixed monthly charge based on meter size.Meter SizeCapacity Ratio 3/4-inch1.00$25.58 $27.11 $28.73 $30.45 $32.27 $34.221-inch1.6742.63 45.18 47.88 50.75 53.78 57.03 1-1/2 inch3.3385.27 90.37 95.77 101.50 107.57 114.07 2-inch5.33136.43 144.59 153.23 162.40 172.11 182.51 3-inch10.00255.80 271.10 287.30 304.50 322.70 342.20 4-inch16.67426.33 451.83 478.83 507.50 537.83 570.33 6-inch33.33852.67 903.67 957.67 1,015.00 1,075.67 1,140.67 8-inch53.331,364.27 1,445.87 1,532.27 1,624.00 1,721.07 1,825.07 10-inch76.671,961.13 2,078.43 2,202.63 2,334.50 2,474.03 2,623.53 QUANTITY CHARGESBilled based on metered water consumption ($ per hundred cubic feet or hcf)a) Single-Family ResidentialBi-Monthly Use Tier 1 0 - 10 hcf $9.01 $9.57 $10.16 $10.79 $11.46 $12.18 Tier 2 11 - 20 hcf 10.78 11.42 12.09 12.80 13.56 14.36 Tier 3 > 20 hcf 14.33 15.12 15.95 16.83 17.75 18.72 b) All Other Accounts (All Water Use)All Use 10.11 $10.68 $11.28 $11.91 $12.58 $13.27Accounts served by water procured from NCCWD are also charged a Differential Cost of Supply Chargereflecting the higher cost of water procured from this source.Note: One hundred cubic feet (hcf) is equivalent to approximately 748 gallons.

Proposed Rates Effective On or AfterProposed Water Rates

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Table 2 – Proposed Sewer Rates

CurrentSewer July 1 July 1 July 1 July 1 July 1Rates 2023 2024 2025 2026 2027Overall Rate Increase Target %5%5%5%5%5%MONTHLY SERVICE CHARGESFixed monthly charge per accountSingle Family Residential$32.27 $33.96 $35.74 $37.61 $39.59 $41.66All Other Customers (Charge Based on Water Meter Size)Meter Size3/4-inch $32.27 $33.96 $35.74 $37.61 $39.59 $41.661-inch 53.78 56.60 59.57 62.69 65.98 69.431-1/2 inch 107.57 113.20 119.14 125.38 131.95 138.872-inch 172.11 181.13 190.62 200.61 211.12 222.193-inch 322.70 339.61 357.41 376.14 395.85 416.604" & Larger 537.83 566.02 595.68 626.90 659.76 694.33QUANTITY CHARGESBilled per hundred cubic feet (hcf)Residential$12.37 $12.98 $13.61 $14.28 $14.97 $15.71CommercialC-1 Light Commercial 11.50 12.05 12.63 13.23 13.87 14.53C-2 Medium Commercial 12.37 12.98 13.61 14.28 14.97 15.71C-3 Heavy Commercial 17.61 18.54 19.51 20.54 21.62 22.76C-4 Special Commercial 22.86 24.11 25.42 26.81 28.27 29.82Governmental12.37 12.98 13.61 14.28 14.97 15.71IndustrialI-1 Light Industrial 12.37 12.98 13.61 14.28 14.97 15.71I-2 Industrial Flow 8.88 9.27 9.68 10.10 10.54 11.01COD per lb30.68 0.72 0.77 0.82 0.87 0.93SS per lb 1.41 1.49 1.58 1.68 1.78 1.882 Non-residential accounts are billed based on metered water use during each billing period.3 Based on South San Francisco WQCP wastewater loadings of COD 728 mg/l and BOD 358 mg/l.UPDATENote: One hundred cubic feet (hcf) is equivalent to approximately 748 gallons.

Proposed Sewer Rates Effective On or AfterProposed Sewer Rates 1 Residential accounts are billed based on average metered water use from two bi-monthly billing periods from January through April. All other accounts are billed based on total metered use.

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2 LEGAL REQUIREMENTS & RATE METHODOLOGY

2.1 Constitutional Rate Requirements
The California Constitution includes two key articles that directly govern or impact the City’s water and sewer rates: Article 10 and Article 13D. The rates developed in this study were designed to comply with both of these constitutional mandates as well as various provisions of the California law that support and add further guidance for implementing these constitutional requirements. In accordance with the constitutional provisions, the proposed rates are designed to a) recover the City’s cost of providing water and sewer service, b) equitably recover revenues in proportion to the cost for serving each customer, and c) promote conservation and discourage waste.

2.1.1 Article 10, Section 2
Article 10, Section 2 of the California Constitution was established by voter-approval in 1976 and requires public agencies to maximize the beneficial use of water, prevent waste, and encourage conservation.

Section 2 states that:

It is hereby declared that because of the conditions prevailing in this State the general welfare requires that the water resources of the State be put to beneficial use to the fullest extent of which they are capable, and that the waste or unreasonable use or unreasonable method of use of water be prevented, and that the conservation of such waters is to be exercised with a view to the reasonable and beneficial use thereof in the interest of the people and for the public welfare.

2.1.2 Article 13D, Section 6
Proposition 218 was adopted by California voters in 1996 and added Articles 13C and 13D to the California Constitution. Article 13D, Section 6 governs property-related charges, which the California Supreme Court subsequently ruled includes ongoing utility service charges such as water, sewer, and garbage rates.

Article 13D, Section 6 establishes a) procedural requirements for imposing or increasing property-related charges, and b) substantive requirements for those charges. Article 13D also requires voter approval for new or increased property-related charges but exempts rate increases for water, sewer, and garbage services from requiring voter approval as these rates support essential services.

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The substantive requirements of Article 13D, Section 6 require the City’s water and sewer rates to meet the following conditions:
1) Revenues derived from the fee or charge shall not exceed the funds required to provide the property related service.
2) Revenues derived from the fee or charge shall not be used for any purpose other than that for which the fee or charge was imposed.
3) The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership shall not exceed the proportional cost of the service attributable to the parcel. 4) No fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question. 5) No fee or charge may be imposed for general governmental services, such as police or fire services, where the service is available to the public at large in substantially the same manner as it is to property owners.

A number of court decisions over past 20 years have added some legal clarification regarding these substantive rate requirements. The water and sewer rates derived in this report are based on cost-of- service methodologies that are designed to equitably recover costs from water and sewer customers and comply with all legal requirements.

2.2 Rate-Setting Methodology
The rates developed in this report use a cost-of-service methodology to establish an equitable system of fixed and variable service charges designed to recover costs of providing service. The general methodology used in this study is summarized on the diagram on the following page.

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Revenue RequirementsDetermine future funding requirements from ratesCost AllocationEquitably apportion costs to rate componentsRate DesignDevelop rates that recover revenues in proportion to the cost of providing serviceIdentify near-term & long-term operating and capital funding needsEvaluate financing alternatives for capital improvementsEstablish fund reserve targets for financial planningDevelop financial projections and evaluate financial scenariosDetermine future annual revenue requirements for rate setting Allocate costs for fixed and variable rate recoveryIdentify accounts by customer class and/or meter sizeCalculate fixed charges based on system demand per customer class and/or meter sizeAnalyze historical usage data and project future water & sewer demandAllocate costs assigned for usage-based rate recovery to water rate tiers & sewer use classes Review existing water and sewer rate structuresApply unit costs of service to characteristics of each customer classDevelop fixed charges that recover costs in proportion to meter size or customer typeDevelop volumetric rates that recover costs apportioned to each tier or sewer strength classPhase in rate increases over time, to the extent possible, to help minimize annual impacts Cost of Service Rate-Setting Methodology

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3 WATER FINANCIAL PLAN & RATE DERIVATION

3.1 Current & Historical Water Rates
The City has provided strong financial stewardship by gradually raising water rates most years over the past 20 years to keep rates in line with escalating costs of providing water service. Table 3 shows a recent history of the City’s water rates. The City bills customers bi-monthly (once every 2 months) via a combined utility bill.

Table 3 – Water Rates

July 1 July 1 July 1 July 1 July 1 July 1 2016 2017 2018 2019 2020 2021 Rate Increase %5% 5% 5% 5% 5% MONTHLY SERVICE CHARGESCurrently CancelledFixed monthly charge based on meter size.in effectMeter Size3/4-inch $21.13 $22.10 $23.20 $24.36 $25.58 $26.861-inch 35.22 36.83 38.67 40.60 42.63 44.761-1/2 inch 70.43 73.67 77.33 81.20 85.27 89.532-inch 112.69 117.87 123.73 129.92 136.43 143.253-inch 211.30 221.00 232.00 243.60 255.80 268.594-inch 352.17 368.33 386.67 406.00 426.33 447.656-inch 704.33 736.67 773.33 812.00 852.67 895.308-inch 1,126.93 1,178.67 1,237.33 1,299.20 1,364.27 1,432.4710-inch 1,619.97 1,694.33 1,778.67 1,867.60 1,961.13 2,059.18QUANTITY CHARGESBilled based on metered water consumption ($ per hundred cubic feet or hcf)a) Single-Family ResidentialBi-Monthly Use Tier 1 0 - 10 hcf $7.36 $7.78 $8.17 $8.58 $9.01 $9.46 Tier 2 11 - 20 hcf 8.83 9.31 9.78 10.27 10.78 11.32 Tier 3 > 20 hcf 11.78 12.38 13.00 13.65 14.33 15.05b) All Other Accounts (All Water Use)8.32 8.73 9.17 9.63 10.11 10.62

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The City’s water rates include two components:
 Fixed Monthly Service Charges that vary based on meter size. These charges are levied independent of water use and recover a portion of the City’s fixed costs for providing service. The City incurs a substantial amount of costs ensuring that water is available at all times to meet customer needs on demand. The fixed Monthly Service Charges varies by meter size, with larger meters paying higher charges based on each meter’s capacity and associated demand placed on the water system.  Volumetric Water Quantity Charges billed based on metered water use. Single family residential customers are billed according to a 3-tiered inclining rate structure with water first billed in Tier 1 and subsequently billed in higher tiers as water use increases each billing period. All other customers including commercial, institutional and multi-family accounts are billed a uniform rate for all water use. Water Quantity Charges are billed per hundred cubic feet (hcf), with 1 hcf equal to approximately 748 gallons of water. Hence, City’s current quantity charges range from approximately 1.20 cents to

1.92 cents per gallon.

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3.2 Regional Water Rate Survey
The following chart compares the City’s current water rates to those of other regional agencies for a typical single family home using 6 hundred cubic feet of water per month. This level of use equates to approximately 150 gallons per day. The City’s water rates are currently in the middle range compared to other regional agencies in San Mateo County and are projected to remain in the middle range as many other agencies have adopted or are anticipating rate increases in upcoming years.

Figure 2 – Single Family Residential Water Rate Survey

Note: The survey assumes same level of water use for all agencies for comparative purposes. Agencies in northern San Mateo County and on the Pacific Coast tend to have lower water use per home than agencies in central and southern San Mateo County.

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3.3 Financial Challenges / Key Drivers of Rate Increases Going forward, the City’s water enterprise is facing a number of financial challenges that will require the City to resume its historical practice of implementing gradual annual water rates over the next 5 years.

Key drivers of future rate increases are summarized as follows.

3.3.1 Capital Improvements & Replacement of Aging Infrastructure The City’s water system includes many facilities that are reaching the end of their useful lives. Most of the City’s water pipelines are original metal pipes with a life expectancy of about 50 years. Many of these pipelines are 70 to 100 years old and subject to leaks and breaks. Over the past 5 years, the City has averaged about 100 water main breaks per year. As shown the table below, the City anticipates funding approximately $85 million of water system capital improvement projects over the next 5 years. Water capital improvements planned for the next 5 years include the replacement of 3 older water tanks as well as replacement of aging water pipelines and various other improvements to wells, pressure regulating stations, and pump stations. The improvements are needed to address existing deficiencies, rehabilitate and/or replace aging infrastructure that has reached the end of its useful life, and support safe and reliable water service.

Table 4 – Water Capital Improvement Program

2023/24 2024/25 2025/26 2026/27 5-Yr TotalPrior Approp Est. Carryover New Fundi ng TotalFunding SourcesWater Fund 28,181,000 14,619,000 10,354,000 24,973,000 1,600,000 16,900,000 30,250,000 11,200,000 84,923,000SFPUC 315,000 315,000 315,000 315,000 Total Funding Sources 28,496,000 14,934,000 10,354,000 25,288,000 1,600,000 16,900,000 30,250,000 11,200,000 85,238,000Water Capital Improvement Program Budget Appropriations [1]Main Improvement & Replacement Program 10,650,000 6,730,000 900,000 7,630,000 6,300,000 2,800,000 9,000,000 25,730,000Pump Station Improvement & Replacement 2,273,000 1,350,000 4,550,000 5,900,000 950,000 950,000 7,800,000Water Tank Improvement & Replacement Commodore Tank Installation 1,500,000 1,500,000 750,000 2,250,000 17,750,000 20,000,000 Cunningham Drive Tank Replacements 1,437,000 542,000 542,000 9,000,000 9,542,000 Princeton Tank Replacement 500,000 500,000 700,000 1,200,000 2,000,000 3,200,000 Sweeney Ridge Tank Replacement 1,094,000 890,000 890,000 9,500,000 10,390,000Advanced Water Meter 6,017,000 504,000 504,000 504,000Acappella Well Project 2,348,000 1,032,000 3,000,000 4,032,000 4,032,000Pressure Reg Station Impvt & Replacement 1,600,000 1,557,000 (346,000) 1,211,000 450,000 450,000 2,111,000Well Rehabilitation 1,077,000 329,000 200,000 529,000 200,000 200,000 200,000 200,000 1,329,000Wtr Qual Well Syst Upgrades & Sweeny Rdg Tank Chlorine0 600,000 600,000 600,000 Total Capital Funding 28,496,000 14,934,000 10,354,000 25,288,000 1,600,000 16,900,000 30,250,000 11,200,000 85,238,000Estimated Annual Water Capital Improvement Expenditures [2] Average Annual Expenditures 17,048,000 17,048,000 17,048,000 17,048,000 17,048,000 85,240,0001 Source: City of San Bruno Revised 5-Year Water Capital Program (Updated 11.4.22 & 1.23.23); budget appropriation required for project contract awards.2 Source: Assumes average annual expenditures over the 5-year period. 2022/23

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3.3.2 Wholesale Water Rate Increases
The San Francisco Public Utility Commission (SFPUC) is in the process of completing a roughly $5 billion capital program of seismic upgrades and reliability enhancements to its aging Hetch-Hetchy regional water system that provides water supply to many Bay Area communities. To help fund these improvements and ensure adequate revenue recovery over a period of declining water sales, the SFPUC has substantially increased it wholesale water rates since 2010. After 2016, the SFPUC was temporarily able to defer wholesale rate increases due to an overcollection of revenues that resulted in a buildup of fund reserves in a Balancing Account that has been drawn down over the past 5 years. The Balancing Account is now mostly depleted and the SFPUC began resuming annual wholesale rate increases with a 16% increase effective July 1, 2022 and additional rate increases projected in future years. The following chart shows historical and projected SFPUC wholesale water rates. The chart shows both the underlying SFPUC wholesale rate as well as the additional BAWSCA bond surcharge that wholesale agencies pay.

Figure 3 – Historical & Projected SFPUC Wholesale Water Rates

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3.3.3 Ongoing Operating Cost Inflation
In addition, the City faces ongoing cost inflation for its own operating and maintenance expenses. Water and sewer cost inflation has historically been significantly higher than the Consumer Price Index (CPI) for consumer goods and services. The City avoided some expenses in recent years due to unfilled staff positions and participation in the Groundwater Storage and Recovery Agreement with SFPUC, but these cost savings were only temporary. In addition to rate increases for capital needs and other purposes, gradual annual rate increases are needed each year to support the City’s own operating expenses and keep up with cost inflation.

3.4 Outstanding Debt Service
The following table shows debt service repayment schedule by fiscal year for the City’s water enterprise, which includes one outstanding debt obligation, the 2017 Water Revenue Bonds.

Table 5 – Outstanding Water Debt Service
Fiscal Year 2017 WaterEnding Revenue Bonds2023 $683,6502024 684,0502025 681,5502026 683,5502027 684,8002028 685,3002029 685,0502030 684,0502031 682,3002032 684,8002033 681,3002034 682,0502035 684,9002036 682,3002037 684,4002038 681,6002039 683,2002040 684,0002041 684,0002042 683,2002043 681,6002044 684,2002045 685,8002046 681,4002047 681,200Rate Covenant: 1.25x debt service coverage requirementOptional Redemption starting July 1, 2027

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3.5 Water Enterprise Financial Projections
Bartle Wells Associates developed 10-year water enterprise cash flow projections to identify future funding needs and evaluate water rate increases. The table on the following page shows 10-year water enterprise cash flow projections. The projections incorporate the latest information available as well as a number of reasonable and slightly conservative assumptions. Key assumptions include:
 Operating and maintenance costs are based on the 2022/23 budget and escalate at the annual rate of 4% to account for future cost inflation.
 Growth from new development and/or redevelopment is conservatively projected at the equivalent of 20 new single family homes per year for financial planning purposes.  Water sales are projected to remain constant at the same level experienced in the prior fiscal year.  SFPUC wholesale water rates are based on the latest SFPUC projections.  The projections assume the current fiscal year 2022/23 is a Recovery/Take year under the Groundwater Storage & Recovery (GSR) Agreement but do not assume any GSR designations in future years.
 Capital improvement costs are based on the City’s latest 5-Year Capital Improvement Program with future capital costs projected at $7.5 million per year with 3% annual cost escalation.  In recent years, the water enterprise has accrued a healthy levels of fund reserves that includes some excess reserves available for capital projects that were deferred in recent years but are scheduled for completion over the next few years. The projections assume approximately $32 million of these fund reserves will be drawn down over the next few years to help fund water system capital needs while rate increases are gradually phased in.
 The financial projections include a projected debt issuance in 2025 to generate $24 million to help fund the elevated levels of capital improvement funding needs over the next 5 years while enabling the City to implement gradual rate increases. The actual amount and timing of this potential future debt issue may vary based on the financing needs at the time debt is issued. Debt service is estimated based on a 4.5% average interest rate and assumes a 30-year repayment term.  For financial planning purposes, the financial projections assume a minimum fund reserve target equal to 50% of annual operating, maintenance and debt service costs, plus $5 million for emergency capital reserves. Maintaining a prudent minimal level of fund reserves provides a financial cushion for dealing with unanticipated expenses, revenue shortfalls, and non-catastrophic emergency capital repairs. The fund reserve target will escalate over time as the City’s expenses gradually increase.  The table also calculates annual debt service coverage based on a) total revenues less operating and maintenance expenses, divided by b) annual debt service.

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Table 6 - 10-Year Water Cash Flow Projections

2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32Effective Date of Rate Increases Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1 Jan-1Overall Rate Adjustment0.0% 6% 6% 6% 6% 6% 5% 5% 4% 4%Growth (3/4" Meter Equivalents) 20 20 20 20 20 20 20 20 20 20Annual % Change in Water Sales -2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Total Water Sales (hcf) 1,281,000 1,281,000 1,281,000 1,281,000 1,281,000 1,281,000 1,281,000 1,281,000 1,281,000 1,281,000Plus 10% Unaccounted Water 1,409,000 1,409,000 1,409,000 1,409,000 1,409,000 1,409,000 1,409,000 1,409,000 1,409,000 1,409,000Groundwater Production (hcf) 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000SFPUC Water Supply (hcf) 509,000 509,000 509,000 509,000 509,000 509,000 509,000 509,000 509,000 509,000GSR Credit hcf (3,915 AF, 1,705,000 hcf)(509,000)- - - - - - - - - SFPUC Rate per hcf $4.75 $5.20 $5.30 $5.40 $5.50 $5.60 $5.70 $5.80 $5.90 $6.00Interest Earnings Rate 1.5% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%City Cost Escalation 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%Beginning Fund Balances$49,842,000 $41,012,000 $29,781,000 $18,918,000 $19,470,000 $20,253,000 $19,211,000 $18,625,000 $18,434,000 $18,565,000REVENUESWater Service Charges 4,288,000 4,417,000 4,678,000 4,954,000 5,248,000 5,559,000 5,862,000 6,154,000 6,431,000 6,690,000Water Quantity Charges 11,858,00012,196,00012,928,00013,704,00014,526,00015,397,00016,246,00017,058,00017,828,00018,541,000 Subtotal Rate Revenues 16,146,000 16,613,000 17,606,000 18,658,000 19,774,000 20,956,000 22,108,000 23,212,000 24,259,000 25,231,000Investment Income 748,000 820,000 596,000 378,000 389,000 405,000 384,000 373,000 369,000 371,000Connection/Mtr Inst/Capacity Fees 100,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000Other/Miscellaneous 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000______________________________________________________________________________________________________________Total Revenues17,014,000 17,613,000 18,382,000 19,216,000 20,343,000 21,541,000 22,672,000 23,765,000 24,808,000 25,782,000Projected Debt Proceeds12,000,000 12,000,000EXPENSESOperating & MaintenanceSalaries & Benefits 3,050,000 3,172,000 3,299,000 3,431,000 3,568,000 3,711,000 3,859,000 4,013,000 4,174,000 4,341,000Less Capitalized Project Staffing(500,000) (500,000) (500,000) (500,000) (500,000) (375,000) (386,000) (398,000) (410,000) (422,000)Supplies & Materials 1,914,000 1,991,000 2,071,000 2,154,000 2,240,000 2,330,000 2,423,000 2,520,000 2,621,000 2,726,000Utilities 570,000 593,000 617,000 642,000 668,000 695,000 723,000 752,000 782,000 813,000SFPUC/NCCWD Wholesale Water 2,418,000 2,647,000 2,698,000 2,749,000 2,800,000 2,850,000 2,901,000 2,952,000 3,003,000 3,054,000SFPUC GSR Credits (3,915 AF)(2,418,000)000000000SFPUC Meter Charges 153,000 159,000 165,000 172,000 179,000 186,000 193,000 201,000 209,000 217,000BAWSCA Bond Surcharge 165,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000 180,000Internal/Intergovt Charges 2,760,000 2,870,000 2,985,000 3,104,000 3,228,000 3,357,000 3,491,000 3,631,000 3,776,000 3,927,000______________________________________________________________________________________________________________ Subtotal 8,112,000 11,112,000 11,515,000 11,932,000 12,363,000 12,934,000 13,384,000 13,851,000 14,335,000 14,836,000Debt Service2017 Water Revenue Bonds 684,000 684,000 682,000 684,000 685,000 685,000 685,000 684,000 682,000 685,000Projected 2025 Bonds (4.5% 30-Yr)0001,000,0001,464,0001,464,0001,464,0001,464,0001,464,0001,464,000______________________________________________________________________________________________________________ Subtotal 684,000 684,000 682,000 1,684,000 2,149,000 2,149,000 2,149,000 2,148,000 2,146,000 2,149,000As s umes total 5-year capita l expenditures are s pread evenl y over the fi rs t 5 years Future capital expenditures are projected at $7.5 mill ion per year with 3% cos t es cala tionCapital Improvements17,048,000 17,048,000 17,048,000 17,048,000 17,048,000 7,500,000 7,725,000 7,957,000 8,196,000 8,442,000Total Expenses25,844,000 28,844,000 29,245,000 30,664,000 31,560,000 22,583,000 23,258,000 23,956,000 24,677,000 25,427,000Revenues Less Expenses(8,830,000) (11,231,000) (10,863,000) 552,000 783,000 (1,042,000) (586,000) (191,000) 131,000 355,000Ending Fund Balances41,012,000 29,781,000 18,918,000 19,470,000 20,253,000 19,211,000 18,625,000 18,434,000 18,565,000 18,920,000Min Rsrv Target: 50% O&M&D + $5M CIP9,400,00010,900,00011,100,00011,810,00012,260,00012,540,00012,770,00013,000,00013,240,00013,490,000Debt Service Coverage 13.01 9.50 10.07 4.33 3.71 4.01 4.32 4.62 4.88 5.09Note: The projections assume 2022/23 is a Recovery/Take Year under the Groundwater Storage & Recovery (GSR) Agreement, but do not assume any GSR designations for future years.

San Bruno Water Cash Flow ProjectionsProjected 2025 Bonds (tbd)

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The following chart graphically shows a 10-year breakdown of projected water enterprise revenues and expenses. The proposed rate increases are designed to put the City on a long-term path toward supporting balanced budgets while providing adequate funding for ongoing rehabilitation and replacement of aging water system infrastructure to support safe and reliable service. As shown on the chart, the projections account for an elevated level of capital funding over the next 5 years which will require an approximately $32 million drawdown of fund reserves and potential subsequent issuance of debt in 2025. Longer-term capital needs are projected to be funded on a pay-as-you-go basis.

Figure 4 – Water Utility Projected Revenues & Expenses

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3.6 Projected Water Rate Increases
The cash flow projections indicate the need to raise rates by 6% each year for the next 5 years in order to meet the water utility’s projected operating and capital funding needs. These projected rate increases follow a period of no rate increases over the past 2 years as shown below. With the proposed rates, the average annual water rate increase since 2016 equates to approximately 4.3%

Table 7 – Projected Water Rate Increases

Figure 5 – Historical & Projected Water Rate Increases

The 6% water rate increases represent the overall level of annual rate increases proposed. Actual impacts to customers’ monthly water bills may vary a little based on meter size and water use due to minor modifications to the rate structure designed to keep water rates aligned with the cost of providing service.

July 1 July 1 January 1 January 1 January 1 January 1 January 12021 2022 2024 2025 2026 2027 20285% 0% 0% 6% 6% 6% 6% 6%Projected Water Rate Increases

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3.7 Water Use
The following table shows a 3-year history of water use including a breakdown of bi-monthly use by customer class and tier. Water use can vary from year to year due to many factors such as weather and conservation efforts. Although the City’s water was relatively consistent over the past few years, it was roughly 6% lower in the past fiscal year 2021/22 than it had been in the prior two years.

Table 8 – Water Use by Class & Tier

The tables on the following pages show a breakdown of monthly water use and sources of supply since fiscal year 2017/18.

Bi-Monthly Period Jul/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/Jun Total % of Ttl2019/20 Water Use (hcf)Single Family ResidentialTier 1 80,782 81,262 79,325 75,940 76,832 80,759 474,900 36.0%Tier 2 30,324 32,382 27,636 21,331 21,942 30,689 164,304 12.4%Tier 3 9,18011,5048,1965,2974,7668,45647,3993.6%Subtotal 120,286 125,148 115,157 102,568 103,540 119,904 686,603 52.0%Multi-Family Res 65,628 62,797 58,349 55,421 54,608 58,394 355,197 26.9%Commercial/Other 58,01061,99850,72536,62935,40036,258279,02021.1%Total 243,924 249,943 224,231 194,618 193,548 214,556 1,320,820 100.0%2020/21 Water Use (hcf)Single Family ResidentialTier 1 83,196 83,489 81,204 77,104 75,823 79,654 480,470 36.2%Tier 2 37,264 37,332 30,916 23,923 21,240 28,208 178,883 13.5%Tier 3 13,80714,42210,1206,9056,0558,16859,4774.5%Subtotal 134,267 135,243 122,240 107,932 103,118 116,030 718,830 54.1%Multi-Family Res 64,705 64,345 61,194 57,009 54,279 58,768 360,300 27.1%Commercial/Other 51,91846,20241,21726,88635,67447,202249,09918.8%Total 250,890 245,790 224,651 191,827 193,071 222,000 1,328,229 100.0%2021/22 Water Use (hcf)Single Family ResidentialTier 1 80,047 79,364 75,757 73,990 74,239 75,992 459,389 37.1%Tier 2 29,550 28,295 21,455 19,480 19,191 22,227 140,198 11.3%Tier 3 10,0669,9476,0436,3475,7826,95345,1383.6%Subtotal 119,663 117,606 103,255 99,817 99,212 105,172 644,725 52.0%Multi-Family Res 57,095 55,823 54,100 52,405 51,446 54,348 325,217 26.2%Commercial/Other 53,04855,49334,68435,85343,46646,806269,35021.7%Total 229,806 228,922 192,039 188,075 194,124 206,326 1,239,292 100.0%Source: Based on detailed utility billing data files, excludes City water use which is billed separately.

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Table 9 – Water Use by Month

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May JunTotal (hcf)Ttl (AF) % of Ttl2017/18 Water Use (hcf)Residential 98,929 84,385 105,093 82,391 98,284 74,142 88,842 71,291 85,285 68,624 85,930 76,210 1,019,406 2,340 75.0%Commercial 27,776 30,657 30,668 26,609 24,779 17,467 16,300 17,972 17,100 16,051 20,681 25,619 271,679 624 20.0%City 9,395 9,857 10,193 8,627 5,787 1,989 1,462 1,958 1,861 2,278 5,082 9,033 67,522 155 5.0%________________________________________________________________________________________________________________________ Total 136,100 124,899 145,954 117,627 128,850 93,598 106,604 91,221 104,246 86,953 111,693 110,862 1,358,607 3,119 100.0%2018/19 Water Use (hcf)Residential 99,235 83,302 108,893 81,401 107,093 74,114 96,641 69,252 82,283 65,068 90,124 75,180 1,032,586 2,370 75.1%Commercial 26,792 27,975 29,575 26,397 22,340 19,005 15,114 16,228 16,541 18,965 23,859 27,192 269,983 620 19.6%City 10,455 12,030 9,621 8,496 6,467 2,753 1,300 2,206 4,901 1,830 5,690 6,433 72,182 166 5.3%________________________________________________________________________________________________________________________ Total 136,482 123,307 148,089 116,294 135,900 95,872 113,055 87,686 103,725 85,863 119,673 108,805 1,374,751 3,156 100.0%2019/20 Water Use (hcf)Residential 104,044 82,122 105,703 82,444 99,083 74,819 86,683 69,158 86,527 72,266 99,115 79,921 1,041,885 2,392 74.5%Commercial 25,820 29,117 31,174 27,895 27,219 20,221 16,385 18,247 8,851 26,180 16,201 19,345 266,655 612 19.1%City 9,721 11,705 11,645 10,375 9,644 5,438 3,168 3,703 4,331 5,831 5,300 9,451 90,312 207 6.5%________________________________________________________________________________________________________________________ Total 139,585 122,944 148,522 120,714 135,946 100,478 106,236 91,108 99,709 104,277 120,616 108,717 1,398,852 3,211 100.0%2020/21 Water Use (hcf)Residential 108,328 88,279 113,474 85,834 106,905 76,531 93,931 70,930 88,345 69,007 97,563 77,828 1,076,955 2,472 77.2%Commercial 23,179 25,626 22,382 21,042 21,441 16,602 13,273 12,950 14,605 19,118 21,564 23,818 235,600 541 16.9%City 12,279 13,084 9,574 7,521 7,544 3,835 3,021 3,193 2,539 5,093 7,324 7,907 82,914 190 5.9%________________________________________________________________________________________________________________________ Total 143,786 126,989 145,430 114,397 135,890 96,968 110,225 87,073 105,489 93,218 126,451 109,553 1,395,469 3,204 100.0%2021/22 Water Use (hcf)Residential 99,080 77,895 97,460 76,264 90,525 66,937 84,523 67,597 84,441 66,277 88,813 71,236 971,048 2,229 74.3%Commercial 26,237 27,172 26,813 26,114 16,330 17,680 16,246 19,162 19,766 20,740 20,296 23,226 259,782 596 19.9%City 9,587 8,452 9,797 8,310 3,327 3,362 2,616 4,340 5,693 6,429 6,808 8,162 76,883 176 5.9%________________________________________________________________________________________________________________________ Total 134,904 113,519 134,070 110,688 110,182 87,979 103,385 91,099 109,900 93,446 115,917 102,624 1,307,713 3,002 100.0%2022/23 Water Use (hcf)Residential 94,289 74,070 97,618 70,837 88,780 68,015 493,609 1,133 73.7%Commercial 24,753 25,427 26,369 23,052 21,271 16,979 137,851 316 20.6%City 7,795 8,335 8,707 5,842 4,371 3,031 38,081 87 5.7%________________________________________________________________________________________________________________________ Total 126,837 107,832 132,694 99,731 114,422 88,025 - - - - - - 669,541 1,537 100.0%Source: Based on monthly water use data provided by the City of San Bruno.

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Table 10 – Sources of Water Supply by Month

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May JunTotal (hcf)Ttl (AF) % of Ttl2017/18 Water Supply (hcf)Wells 12,930 13,080 13,036 13,253 11,747 13,486 8,840 14,262 13,061 14,323 13,494 13,829 155,341 357 10.4%SFPUC 113,342 135,352 130,261 109,369 97,616 105,668 91,871 87,626 93,886 92,934 122,593 129,285 1,309,803 3,007 88.0%NCCWD 2,043 2,044 2,029 2,028 1,977 1,976 1,860 1,859 1,836 1,836 1,961 1,962 23,411 54 1.6%________________________________________________________________________________________________________________________ Total 128,315 150,476 145,326 124,650 111,340 121,130 102,571 103,747 108,783 109,093 138,048 145,076 1,488,555 3,417 100.0%2018/19 Water Supply (hcf)Wells 12,768 4,124 14,166 6,508 13,484 14,709 6,853 13,580 14,364 15,582 13,649 9,825 139,612 321 9.6%SFPUC 119,235 136,866 119,224 97,586 104,661 99,365 94,911 86,332 94,926 102,297 113,596 129,565 1,298,564 2,981 89.1%NCCWD 2,057 2,056 3,888 1,638 1,638 1,071 1,071 975 975 946 946 1,234 18,495 42 1.3%________________________________________________________________________________________________________________________ Total 134,060 143,046 137,278 105,732 119,783 115,145 102,835 100,887 110,265 118,825 128,191 140,624 1,456,671 3,344 100.0%2019/20 Water Supply (hcf)Wells 1,227 14,456 11,484 7,453 10,864 - 13,174 13,809 14,703 1,282 12,824 9,030 110,306 253 7.2%SFPUC 131,267 137,064 122,585 115,869 108,311 120,738 83,960 105,336 107,464 106,008 125,419 136,511 1,400,532 3,215 91.9%NCCWD 1,234 1,502 1,503 873 874 885 885 946 947 1,163 1,164 1,172 13,148 30 0.9%________________________________________________________________________________________________________________________ Total 133,728 153,022 135,572 124,195 120,049 121,623 98,019 120,091 123,114 108,453 139,407 146,713 1,523,986 3,499 100.0%2020/21 Water Supply (hcf)Wells 14,349 12,423 14,479 14,520 14,105 13,412 14,091 17,765 15,635 5,342 10,500 18,783 165,404 380 11.0%SFPUC 128,986 135,657 110,866 109,817 109,187 99,794 82,640 94,325 105,412 118,954 122,494 110,268 1,328,400 3,050 88.2%NCCWD 1,172 1,172 1,172 1,176 1,175 841 841 1,043 1,044 1,043 1,044 1,050 12,773 29 0.8%________________________________________________________________________________________________________________________ Total 144,507 149,252 126,517 125,513 124,467 114,047 97,572 113,133 122,091 125,339 134,038 130,101 1,506,577 3,459 100.0%2021/22 Water Supply (hcf)Wells 69,697 78,147 73,858 65,865 76,177 82,308 79,135 80,041 96,250 76,332 93,581 90,099 961,490 2,207 64.9%SFPUC 68,454 60,969 62,029 53,223 35,552 29,115 27,064 26,805 33,345 27,250 41,465 41,949 507,220 1,164 34.3%NCCWD 1,051 957 957 978 978 1,043 1,044 972 972 975 976 1,137 12,040 28 0.8%________________________________________________________________________________________________________________________ Total 139,202 140,073 136,844 120,066 112,707 112,466 107,243 107,818 130,567 104,557 136,022 133,185 1,480,750 3,399 100.0%2022/23 Water Supply (hcf)Wells 90,682 81,262 88,581 90,282 72,254 69,615 492,676 1,131 66.4%SFPUC 46,952 53,782 35,958 33,412 35,594 38,392 244,090 560 32.9%NCCWD 1,137 1,110 1,109 1,136 1,135 5,627 13 0.8%________________________________________________________________________________________________________________________ Total 138,771 136,154 125,648 124,830 108,983 108,007 - - - - - - 742,393 1,704 100.0%Source: Based on monthly water use data provided by the City of San Bruno.

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3.8 Water Rate Derivation
The following sections develop rates projected to become effective on January 1, 2028 in fiscal year 2027/28, the fifth and final year of the proposed rate increases. Rates in intervening years are phased in from current levels to the proposed levels calculated for 2027/28.

3.9 Cost Recovery Allocations
The following table allocates costs for recovery from the City’s fixed and quantity charges. Based on the allocations, fixed monthly charges are designed to recover a little under 26% of total rate revenues and water quantity charges will recover roughly 74% of total rate revenues. These allocation percentages are consistent with the City’s current rate structure. The table also further allocated costs be recovered from Quantity Charges associated with Base Costs vs. Extra Capacity. Base Costs represent expenses associated with providing system capacity and water service under base, wet weather months with the lowest levels of water use and account for most of the costs to be recovered from Quantity Charges. Extra Capacity costs are expenses related to providing system capacity and water service to meet peak demands in excess of base use and are conservatively allocated at a little less than 5.7% of total costs.

Table 11 – Cost Recovery Allocation

Projected Expenses Fixed Fixed 2027/28 Charges Base CostsExtra CapacityCharges Base CostsExtra CapacityEXPENSESOperating & MaintenanceSalaries & Benefits $3,711,000 25.0% 70.0% 5.0% $927,750 $2,597,700 $185,550Less Capitalized Project Staffing (375,000) 25.0% 70.0% 5.0% (93,750) (262,500) (18,750)Supplies & Services/Equipment 2,330,000 25.0% 70.0% 5.0% 582,500 1,631,000 116,500Utilities 695,000 0.0% 100.0% 0.0% 0 695,000 0SFPUC/NCCWD Wholesale Water (net) 2,850,000 0.0% 100.0% 0.0% 0 2,850,000 0SFPUC Meter Charges 186,000 25.0% 75.0% 0.0% 46,500 139,500 0BAWSCA Bond Surcharge 180,000 0.0% 100.0% 0.0% 0 180,000 0Internal/Intergovt Charges 3,357,000 35.0% 65.0% 0.0% 1,174,950 2,182,050 0_______________________________________________________________ Subtotal12,934,00020.4%77.4%2.2%2,637,95010,012,750283,300Debt Service 2,149,00033.0%57.0%10.0%709,1701,224,930214,900Capital Improvements (Pay-Go)7,500,00033.0%57.0%10.0%2,475,0004,275,000750,000Total Expenses22,583,000 25.8% 68.7% 5.5% 5,822,120 15,512,680 1,248,200NET FUNDING REQUIRED FROM WATER RATESTotal Expenses 22,583,000 25.8% 68.7% 5.5% 5,822,120 15,512,680 1,248,200Less Funding Sources Other Than Rates (585,000) 25.8% 74.2% 0.0% (150,819) (434,181) 0_______________________________________________________________Net Total 21,998,000 25.78% 68.54% 5.67% 5,671,301 15,078,499 1,248,200 Cost Recovery %Cost Recovery $Quantity ChargesQuantity Charges

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The following table uses the percentage cost allocations derived on Table 11 to allocate the amount of total targeted water rates revenues for recovery from the City’s fixed and quantity charges in order to derive rates for January 1, 2028, the final year of the proposed 5-year rate increase period.

Table 12 – Fixed & Quantity Charge Revenue Recovery

3.10 Water Accounts & Meter Equivalents
The table on the following page shows the number of accounts by meter size along the relative capacity of each meter size compared to that of the base 3/4-inch meter, based on meter capacity standards developed by the American Water Works Association. For example, a 3-inch meter has roughly the same capacity as ten 3/4-inch meters and generates the same demand as ten 3/4-inch meters. The table calculated the total number of 3/4-inch meter equivalents served by the City.

TARGET WATER RATE REVENUESAnnualized Rate Revenues with Jan-1, 2028 Rate Increase $22,016,000RATE RECOVERY ALLOCATIONSFixed Service ChargesAllocation % 25.78%Allocation $ $5,675,942Water Quantity ChargesBase Rate RecoveryAllocation % 68.54%Allocation $ $15,090,837Extra Capacity Rate RecoveryAllocation % 5.67%Allocation $ $1,249,221

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Table 13 – Water Accounts & Meter Equivalents

3.11 Fixed Monthly Service Charges
The following table derives the fixed charge for the base 3/4-inch meter effective January 1, 2028 by dividing the targeted level of revenues allocated for fixed rate recovery by the projected number of 3/4- inch meter equivalents, resulting in a fixed monthly charge of $34.22 per meter equivalent.

Table 14 – Fixed Rate Derivation January 1, 2028

Meter Meter Number AWWA Meter 3/4" MeterCode Size of Accts Capacity Ratio EquivalentsWT01 3/4" 10,573 1.00 10,573 WT02 1" 351 1.67 585 WT03 1-1/2" 210 3.33 700 WT04 2" 307 5.33 1,637 WT05 3" 16 10.00 160 WT06 4" 2 16.67 33 WT07 6" 1 33.33 33 WT08 8" 1 53.33 53 WT09 10" - 76.67 - ______________Total 11,460 13,722 _______________Source: Estimated active accounts as of January 2023.Fixed ChargeMeter Size Jan-1, 2028Fixed Rate Recovery $$5,675,942Meter EquivalentsCurrent Meter Equivalents 13,722 Plus Growth through 2027/28 100Total 13,822 Fixed Service Charge per Meter EquivalentAnnual Charge$410.65Monthly Charge $34.22

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The following table calculates the fixed charges for all meter sizes by multiplying the charge for the base 3/4-inch meter by the meter capacity ratio for each meter size, resulting in fixed charges that are proportional to meter capacity.

Table 15 – Projected Fixed Services Charges January 1, 2028

3.12 Water Quantity Charge Derivation
The tables in this section derive water quantity charges for January 1, 2028. The charts on the following page show a breakdown of single family water use by tier per each bi-monthly billing cycle over the past 3 fiscal years. The orange dotted line on the charts shows the level of water use under base, wet weather months with the lowest levels of water use each year which are largely reflective of indoor water demand.

Water use over this level represents peak demands in excess of base use. As shown, a small portion of water use in Tier2 and a large portion of water use in Tier 3 exceed base usage levels.

Fixed ChargeJan-1, 2028Fixed Monthly Service Charge per Meter Equivalent$34.22Fixed Monthly Service ChargesSingle Family Up to 1", 1.5"? $34.22Meter MeterSizeCapacity Ratio3/4" 1.00 $34.221" 1.67 57.031.5" 3.33 114.072" 5.33 182.513" 10.00 342.204" 16.67 570.336" 33.33 1,140.678" 53.33 1,825.0710" 76.67 2,623.53

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Figure 6 – Single Family Water Use by Tier

80,78281,26279,32575,94076,83280,75930,32432,38227,63621,33121,94230,6899,18011,5048,1965,2974,7668,456120,286125,148115,157102,568103,540119,904020,00040,00060,00080,000100,000120,000140,000160,000Jul/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/JunTier 1Tier 2Tier 32019/20 Single Family Residential Water Use by Tier (hcf)Base SFR Use(Avg Use from Jan-Apr) 83,19683,48981,20477,10475,82379,65437,26437,33230,91623,92321,24028,20813,80714,42210,1206,9056,0558,168134,267135,243122,240107,932103,118116,030020,00040,00060,00080,000100,000120,000140,000160,000Jul/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/JunTier 1Tier 2Tier 32020/21 Single Family Residential Water Use by Tier (hcf)Base SFR Use (Avg Use from Jan-Apr) 80,78281,26279,32575,94076,83280,75930,32432,38227,63621,33121,94230,6899,18011,5048,1965,2974,7668,456120,286125,148115,157102,568103,540119,904020,00040,00060,00080,000100,000120,000140,000160,000Jul/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/JunTier 1Tier 2Tier 32021/22 Single Family Residential Water Use by Tier (hcf)Base SFR Use(Avg Use from Jan-Apr)

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The following table shows a 5-year projection of water sales by rate class. The projections are based on water sales from the prior fiscal year 2021/22 and assume no change in use.

Table 16 – Projected Water Sales

Water Quantity Charges are derived based on a Base vs. Extra Capacity approach:
 Base costs are defined as expenses associated with providing system capacity and water service under base, wet weather months with the lowest levels of water use. These costs benefit all water use on a proportionate basis and are recovered equally from each unit of water sold. Base costs account for most of the City’s costs of service.
 Extra Capacity costs are defined as expenses related to providing and maintaining system capacity and water service to meet peak demands in excess of base use. These costs are allocable to higher levels of water use. Water system facilities must generally be oversized to meet peak demands, which require additional system capacity similar to the need for additional lanes on a highway to meet peak rush hour demands even though fewer lanes would otherwise be adequate for non-rush hour traffic. The City also incurs some costs that should be recovered more from higher levels of use, such as costs related to the City’s water conservation program.

Base Year2021/22 2023/24 2024/25 2025/26 2026/27 2027/28Annual Change in Water Sales 0% 0% 0% 0% 0%Single Family Residential UseTierMonthly UseTier 1 0 - 10 hcf 459,389 459,400 459,400 459,400 459,400 459,400Tier 2 11 - 20 hcf 140,198 140,200 140,200 140,200 140,200 140,200Tier 3 >20 hcf 45,13845,10045,10045,10045,10045,100Subtotal 644,725 644,700 644,700 644,700 644,700 644,700All Other Billed Use594,567 594,600 594,600 594,600 594,600 594,600Total1,239,292 1,239,300 1,239,300 1,239,300 1,239,300 1,239,300Change % 0.0% 0.0% 0.0% 0.0% 0.0%Projected Water Use (hcf)

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The following table derives Water Quantity Charges effective January 1, 2028 by dividing a) the costs allocated for recovery from each rate tier by b) the projected volume of water sales in each tier.  Base costs attributable equally to all water use are allocated on a pro-rata basis to water use in all rate classes.
 Extra Capacity costs related to meeting demands in excess of base use are allocated more toward higher tiers in recognition that these costs are incurred due to higher levels of water use. Costs related to peak demands are attributed to 20% of Tier 2 water use, and 60% of Tier 3 water use based on analysis of historical water use. For example, 60% of Tier 3 water use throughout the year is in excess of base levels of use and is corresponding allocated a share of Extra Capacity costs. These costs are amortized over total annual Tier 3 use resulting in Tier 3 rates that recover the allocated costs over the course of the years. No costs related to Extra Capacity are designated for recovery from Tier 1.
 The rates for each customer class and tier are based on the combined Base and Extra Capacity costs assigned to each tier, divided by the volume of water projected to be sold in each tier.

Table 17 – Water Quantity Charge Derivation

AllTier 1 Tier 2 Tier 3 Other0 - 10 hcf 11 - 20 hcf >20 hcf CustomersWater Use (hcf)459,400 140,200 45,100 594,600A) Base Cost Allocation % of Total Use 37.1% 11.3% 3.6% 48.0%B) Extra Capacity Cost Allocation % of Water in Class/Tier for Peak Cost Recovery 0.0% 20.0% 60.0% 10.0% Volume of Water for Peak Cost Recovery 0 28,040 27,060 59,460 % of Total Water for Peak Cost Recovery 0.0% 24.5% 23.6% 51.9%VARIABLE RATE COST RECOVERYBase $15,090,837 $5,594,070 $1,707,202 $549,178 $7,240,387Extra Capacity 1,249,2210305,763295,076648,383 Total 16,340,058 5,594,070 2,012,965 844,255 7,888,769Water Use (hcf) 459,400 140,200 45,100 594,600Quantity Charge ComponentsBase $12.18 $12.18 $12.18 $12.18Extra Capacity 0.002.186.541.09 Total Charge per hcf 12.18 14.36 18.72 13.27 Single Family Residential

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3.13 Proposed Water Rates
The table on the following page shows a 5-year schedule of proposed water rates incorporating a) the overall level of required rate increases needed to fund the costs of providing service, b) the updated cost allocations that apportion costs to the various components of City’s water rate structure. Proposed water rates are scheduled to become effective on January 1 of each year, when water use is low. The rates shown for each year are projected to gradually increase by the same percentage each year from current rates to the rates derived for January 1, 2028.

Table 18 – Proposed Water Rates

Proposed Rates Effective On or AfterProposed Water Rates

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3.14 Water Rate Impacts
The following table shows the impacts of the proposed water rates single family residential and non- residential customers with a range of water use. As previously noted, while the rates reflect overall 6% annual rate increases, the impacts vary a little based on meter size and water use due to the minor modifications to the rate structure.

Table 19 – Water Rate Impacts

CurrentUse (hcf) Rates 2024 2025 2026 2027 2028Overall Rate Increase Target6% 6% 6% 6% 6%Single Family Residential, 3/4" Meter (Bi-Monthly Billing)Bi-Monthly UseLow 6 hcfBi-Monthly Bill$105.22 $111.64 $118.42 $125.64 $133.30 $141.52Monthly Equivalent52.61 55.82 59.21 62.82 66.65 70.76Monthly Increase3.21 3.39 3.61 3.83 4.11% Increase6.1% 6.1% 6.1% 6.1% 6.2%Median 10 hcfBi-Monthly Bill$141.26 $149.92 $159.06 $168.80 $179.14 $190.24Monthly Equivalent70.63 74.96 79.53 84.40 89.57 95.12Monthly Increase4.33 4.57 4.87 5.17 5.55% Increase6.1% 6.1% 6.1% 6.1% 6.2%Average 12 hcfBi-Monthly Bill$162.82 $172.76 $183.24 $194.40 $206.26 $218.96Monthly Equivalent81.41 86.38 91.62 97.20 103.13 109.48Monthly Increase4.97 5.24 5.58 5.93 6.35% Increase6.1% 6.1% 6.1% 6.1% 6.2%Mod-High 20 hcfBi-Monthly Bill$249.06 $264.12 $279.96 $296.80 $314.74 $333.84Monthly Equivalent124.53 132.06 139.98 148.40 157.37 166.92Monthly Increase7.53 7.92 8.42 8.97 9.55% Increase6.0% 6.0% 6.0% 6.0% 6.1%Commercial/Multi-Family (Monthly Billing)Monthly Use3/4" Meter 10 hcfMonthly Bill$126.68 $133.91 $141.53 $149.55 $158.07 $166.92Monthly Increase7.23 7.62 8.02 8.52 8.85% Increase5.7% 5.7% 5.7% 5.7% 5.6%1" Meter 25 hcfMonthly Bill$295.38 $312.18 $329.88 $348.50 $368.28 $388.78Monthly Increase16.80 17.70 18.62 19.78 20.50% Increase5.7% 5.7% 5.6% 5.7% 5.6%2" Meter 100 hcfMonthly Bill$1,147.43 $1,212.59 $1,281.23 $1,353.40 $1,430.11 $1,509.51Monthly Increase65.16 68.64 72.17 76.71 79.40% Increase5.7% 5.7% 5.6% 5.7% 5.6%4" Meter 200 hcfMonthly Bill$2,448.33 $2,587.83 $2,734.83 $2,889.50 $3,053.83 $3,224.33Monthly Increase139.50 147.00 154.67 164.33 170.50% Increase5.7% 5.7% 5.7% 5.7% 5.6% Charges with Proposed Rated Effective Jan-1

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4 SEWER FINANCIAL PLAN & RATE DERIVATION

4.1 Current & Historical Sewer Rates
The City has provided good financial stewardship by gradually raising sewer rates most years over the past 20 years to keep rates in line with escalating costs of providing water service. The table on the following page shows a recent history of the City’s sewer rates. The City bills customers bi-monthly (once every 2 months) via a combined utility bill.

The City’s sewer rates include two components:
 A fixed Monthly Service Charge that varies based on meter size. These fixed charges are levied independent of usage and recover a portion of the City’s fixed costs for providing service. The City incurs a substantial amount of costs ensuring that sewer system capacity is available at all times to meet customer needs on demand. The fixed Monthly Service Charge varies by meter size, with larger meters paying higher charges based on the increased capacity needs and demand placed on the sewer system.
 Volumetric Sewer Quantity Charges billed based on metered water use. Residential accounts are billed based on average winter water use from two billing periods between December and April.

Residential use during this period excludes most outdoor irrigation and is a better reflection of residential wastewater discharge. All other customers are billed based on water used each billing period. Sewer Quantity Charges are billed per hundred cubic feet (hcf), with 1 hcf equal to approximately 748 gallons of water. Hence, the City’s current Residential Quantity Charges equate to approximately 1.43 cents per gallon of wastewater discharge.

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Table 20 – Sewer Rates
2017 2018 2019 2020 2021
Rate Increase % 5% 5% 5% 5% 5%
MONTHLY SERVICE CHARGES Currently Cancelled
Fixed monthly charge per account in effect
Single Family Residential $27.88 $29.27 $30.73 $32.27 $33.88 All Other Customers (Charge Based on Water Meter Size)
Meter Size
3/4-inch $27.88 $29.27 $30.73 $32.27 $33.88
1-inch 46.47 48.78 51.22 53.78 56.47
1-1/2 inch 92.93 97.57 102.43 107.57 112.93
2-inch 148.69 156.11 163.89 172.11 180.69
3-inch 278.80 292.70 307.30 322.70 338.80
4" & Larger 464.67 487.83 512.17 537.83 564.67

QUANTITY CHARGES
Billed per hundred cubic feet (hcf)
Residential $10.69 $11.22 $11.78 $12.37 $12.99
Commercial
C-1 Light Commercial 9.93 10.43 10.95 11.50 12.08
C-2 Medium Commercial 10.69 11.22 11.78 12.37 12.99 C-3 Heavy Commercial 15.21 15.97 16.77 17.61 18.49 C-4 Special Commercial 19.74 20.73 21.77 22.86 24.00 Governmental 10.69 11.22 11.78 12.37 12.99
Industrial
I-1 Light Industrial 10.69 11.22 11.78 12.37 12.99 I-2 Industrial Flow 7.68 8.06 8.46 8.88 9.32
COD per lb 0.59 0.62 0.65 0.68 0.71
SS per lb 1.22 1.28 1.34 1.41 1.48
Note: 1 hcf = 100 cubic feet or approximately 748 gallons.

Sewer Rates Effective July 1
Residential Quantity Charges are billed based on average metered water use from two bi-monthly billing periods during wet weather months between either Nov-Mar or Dec-Apr.

Non-Residential Quantity Charges are billed based on metered water use during each billing period.

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4.2 Regional Sewer Rate Survey
The chart below compares the City’s current sewer service charges to those of other regional agencies for a typical single family home with 5 hundred cubic feet of monthly winter water use. This level of use equates to almost 125 gallons per day. Roughly half of the agencies have 100% fixed residential wastewater charges that do not vary based on volume of wastewater discharge, and the other half (including San Bruno) have rates that include a volumetric component based on metered water use during the wet winter months, a period of minimal outdoor irrigation . The City’s sewer rates are currently in the-middle range compared to other regional agencies and are expected to remain in the middle range as many other regional agencies have already adopted or are anticipating rate increases in upcoming years.

Figure 7 – Single Family Residential Sewer Rate Survey

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4.3 Financial Challenges / Key Drivers of Rate Increases Going forward, the City’s sewer enterprise is facing a number of financial challenges that will require the City to resume its historical practice of implementing gradual annual sewer rates over the next 5 years.

Key drivers of future rate increases are summarized as follows.

4.3.1 Capital Improvements & Replacement of Aging Infrastructure Many of the City’s sewer collection system pipelines are at or approaching the end of their useful lives and in need of replacement. The City anticipates funding approximately $71 million of wastewater system capital improvement projects over the next 5 years as shown on the following table. This total includes roughly $46 million of improvements to the City’s sewer collection system – mostly consisting of sewer pipeline replacements – and about $25 million for the City’s share of upgrades to the Water Quality Control Plant, which include an estimated $14 million for the City’s share of a biosolids handling improvement project that South San Francisco anticipates financing via debt.

Table 21 – Sewer Capital Improvement Program

4.3.2 Ongoing Operating Cost Inflation
The City is contractually responsible for paying its share of operating, maintenance and debt service expenses for the Water Quality Control Plant and effluent disposal system. Costs for wastewater treatment operations have increased in recent years with no corresponding increases to the City’s sewer rates, and are projected to continue to gradually increase in future years. 2023/24 2024/25 2025/26 2026/27 5-Yr Total
Prior Approp Es t. Carryover New Funding Total
Funding Sources
Wastewater Fund 36,796,000 15,169,000 5,300,000 17,969,000 12,000,000 13,200,000 5,750,000 22,000,000 70,919,000 Wastewater Capital Improvement Projects
Main Improvement & Replacement Program 13,360,000 8,466,000 1,700,000 10,166,000 10,000,000 11,200,000 3,750,000 6,000,000 41,116,000 Pump Station Improvement & Replacement 10,760,000 5,203,000 100,000 5,303,000 5,303,000 Subtotal Sewer Collection System 24,120,000 13,669,000 1,800,000 15,469,000 10,000,000 11,200,000 3,750,000 6,000,000 46,419,000 Water Quality Control Plant Ongoing Upgrades 12,676,000 1,500,000 1,000,000 2,500,000 2,000,000 2,000,000 2,000,000 2,000,000 10,500,000 WQCP Biosolids Handling Improvements (est) [1] 14,000,000 14,000,000 Total Capital Funding 36,796,000 15,169,000 2,800,000 17,969,000 12,000,000 13,200,000 5,750,000 22,000,000 70,919,000 Estimated Annual Wastewater Capital Expenditures (Excludes Debt-Financing for WQCP Biosolids Improvements) Sewer Collection System Upgrades [2] 9,284,000 9,284,000 9,284,000 9,284,000 9,284,000 46,420,000 Water Quality Control Plant Upgrades 2,500,000 2,000,000 2,000,000 2,000,000 2,000,000 10,500,000 Average Annual Expenditures 11,784,000 11,284,000 11,284,000 11,284,000 11,284,000 56,920,000 Source: City of San Bruno Revised 5-Year Wastewater Capital Program (Updated 11.4.22); budget appropriation required for project contract awards. 1 South San Francisco anticipates financing a biosolids handling improvement project with long-term debt, with a portion allocated to San Bruno 2 Source: Assumes average annual expenditures over the 5-year period for City sewer collection system upgrades. 2022/23

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In addition, the City faces ongoing cost inflation for its own operating and maintenance expenses. Water and sewer cost inflation has historically been significantly higher than the Consumer Price Index (CPI) for consumer goods and services. In addition to rate increases for capital needs, annual rate increases are needed over the next 5 years to support the City’s operating expenses and keep up with cost inflation.

4.4 Outstanding Debt Service
The following table shows a schedule of outstanding sewer enterprise debt by fiscal year. Debt includes a) two outstanding series of wastewater revenue bonds issued by the City and directly secured by the net revenues of the City’s sewer enterprise, and b) the City’s allocated share of three State Revolving Fund (SRF) Loans obtained by South San Francisco for the Water Quality Control Plant.

Table 22 – Outstanding Sewer Debt Service

FiscalYear2013 Wastewater2017 Wastewater1999 SRF Loan2007 SRF Loan2018 SRF LoanEnding Revenue Revenue C-06-4614-111 C-06-4728-110June 30 Bonds Bonds 18.01% 32.70% 26.92% Total2023 $542,600 $1,442,850 $589,551 $458,471 - $3,033,4722024 544,475 1,439,450 - 458,471 796,976 3,239,3722025 541,225 1,438,200 - 458,471 796,976 3,234,8722026 547,225 1,440,700 - 458,471 796,976 3,243,3722027 546,975 1,441,700 - 458,471 796,976 3,244,1222028 544,975 1,441,200 - - 796,976 2,783,1512029 546,825 1,439,200 - - 796,976 2,783,0012030 547,275 1,440,700 - - 796,976 2,784,9512031 540,675 1,440,450 - - 796,976 2,778,1012032 543,400 1,438,450 - - 796,976 2,778,8262033 - 1,439,700 - - 796,976 2,236,6762034 - 1,438,950 - - 796,976 2,235,9262035 - 1,438,300 - - 796,976 2,235,2762036 - 1,441,900 - - 796,976 2,238,8762037 - 1,439,600 - - 796,976 2,236,5762038 - 1,442,200 - - 796,976 2,239,1762039 - 1,438,200 - - 796,976 2,235,1762040 - 1,437,800 - - 796,976 2,234,7762041 - 1,440,800 - - 796,976 2,237,7762042 - 1,442,000 - - 796,976 2,238,9762043 - 1,441,400 - - 796,976 2,238,3762044 - 1,439,000 - - - 1,439,0002045 - 1,439,800 - - - 1,439,8002046 - 1,438,600 - - - 1,438,6002047 - 1,440,400 - - - 1,440,400 San Bruno Debt Obligations1San Bruno Share of WQCP Debt Obligations2

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4.5 Sewer Enterprise Financial Projections
Bartle Wells Associates developed 10-year sewer enterprise cash flow projections to identify future funding needs and evaluate sewer rate increases. The table on the following page shows 10-year sewer enterprise cash flow projections. The projections incorporate the latest information available as well as a number of reasonable and slightly conservative assumptions. Key assumptions include:
 Operating and maintenance costs are based on the 2022/23 budget and escalate at the annual rate of 4% to account for future cost inflation.
 Growth from new development and/or redevelopment is conservatively projected at the equivalent of 20 new single family homes per year for financial planning purposes.  Billed sewer use is projected to remain constant at the same level as the prior fiscal year 2021/22.  Capital improvement costs are based on the City’s latest 5-Year Capital Improvement Program with capital costs in subsequent years projected at $10 million per year – including $7.5 million annually for City sewer collection system improvements and $2.5 million annually for the City’s share of WQCP improvements – with 3% annual cost escalation.
 In recent years, the sewer enterprise has accrued a healthy levels of fund reserves that includes some excess reserves available for capital projects that were deferred in recent years but are scheduled for completion over the next few years. The projections assume approximately $21 million of these fund reserves will be drawn down in upcoming years to fund sewer system capital needs while rate increases are gradually phased in.
 The financial projections include $800,000 of new debt service starting fiscal year 2026/27 for the City’s share of debt service for an anticipated biosolids handling improvement project at the WQCP that the South San Francisco anticipates financing via debt. The actual amount and timing of this potential future debt issue may vary based on the actual project cost and timing. Debt service is estimated assuming South San Francisco obtains a loan from the Clean Water State Revolving Fund (SRF) Loan program or the Water Infrastructure and Financing Innovation Act (WIFIA) financing program with an 3.75% average interest rate and a 30-year repayment term.  For financial planning purposes, the financial projections assume a minimum fund reserve target equal to 50% of annual operating, maintenance and debt service costs, plus $5 million for emergency capital reserves. Maintaining a prudent minimal level of fund reserves provides a financial cushion for dealing with unanticipated expenses, revenue shortfalls, and non-catastrophic emergency capital repairs. The fund reserve target will escalate over time as the City’s expenses gradually increase.  The table also calculates annual debt service coverage on the City’s wastewater debt as well as total debt including the City’s share of WQCP debt issued by South San Francisco. Debt service coverage is calculated based on a) total revenues less operating and maintenance expenses, divided by b) annual debt service.

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Table 23 - 10-Year Sewer Cash Flow Projections

2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32Effective Date of Rate Increases July 1 July 1 July 1 July 1 July 1 July 1 July 1 July 1 July 1Overall Rate Adjustment0% 5% 5% 5% 5% 5% 5% 5% 5% 4%Growth (3/4" Meter Equivalents) 20 20 20 20 20 20 20 20 20Annual % Change in Billed Sewer Use0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Interest Earnings Rate 1.5% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%WQCP Cost Escalation 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%City Cost Escalation 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%Beginning Unrestricted Fund Rsrvs$47,280,000 $42,137,000 $37,891,000 $34,115,000 $30,838,000 $27,314,000 $26,117,000 $25,287,000 $24,861,000 $24,888,000REVENUESSewer Rate Revenues 19,100,000 20,055,000 21,058,000 22,111,000 23,217,000 24,378,000 25,597,000 26,877,000 28,221,000 29,350,000Connection & Capacity Fees 100,000 132,000 132,000 132,000 132,000 132,000 132,000 132,000 132,000 132,000Investment Income 600,000 843,000 758,000 682,000 617,000 546,000 522,000 506,000 497,000 498,000Other/Miscellaneous 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000______________________________________________________________________________________________________________Total Revenues19,820,000 21,050,000 21,968,000 22,945,000 23,986,000 25,076,000 26,271,000 27,535,000 28,870,000 30,000,000EXPENSESOperating & MaintenanceSalaries & Benefits 2,586,000 2,689,000 2,797,000 2,909,000 3,025,000 3,146,000 3,272,000 3,403,000 3,539,000 3,681,000Less Capitalized Project Staffing(500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000) (500,000)Supplies & Services 1,295,000 1,347,000 1,401,000 1,457,000 1,515,000 1,576,000 1,639,000 1,705,000 1,773,000 1,844,000Wastewater Treatment SSF 3,957,000 4,115,000 4,280,000 4,451,000 4,629,000 4,814,000 5,007,000 5,207,000 5,415,000 5,632,000Internal Charges 2,811,000 2,923,000 3,040,000 3,162,000 3,288,000 3,420,000 3,557,000 3,699,000 3,847,000 4,001,000Vehicle & Equip Replacement 0 200,000 208,000 216,000 225,000 234,000 243,000 253,000 263,000 274,000______________________________________________________________________________________________________________ Subtotal 10,149,000 10,774,000 11,226,000 11,695,000 12,182,000 12,690,000 13,218,000 13,767,000 14,337,000 14,932,000Debt Service2013 Wastewater Bonds 542,000 544,000 541,000 547,000 547,000 545,000 547,000 547,000 541,000 543,0002017 Wastewater Bonds 1,440,000 1,439,000 1,438,000 1,441,000 1,442,000 1,441,000 1,439,000 1,441,000 1,440,000 1,438,000Share of WQCP Debt, Subordinate1,048,0001,255,0001,255,0001,255,0001,255,000797,000797,000797,000797,000797,000Share of New WQCP Debt, Projected0000800,000800,000800,000800,000800,000800,000______________________________________________________________________________________________________________ Subtotal All Debt 3,030,000 3,238,000 3,234,000 3,243,000 4,044,000 3,583,000 3,583,000 3,585,000 3,578,000 3,578,000Other Non-OperatingAs s umes tota l 5-yea r capital expenditures are s prea d evenly over the fi rs t 5 yea rs Future ca pital expenditures a re projected at $10 mill ion per yea r with 3% cos t es cala tionCity Sewer System Capital Projects 9,284,000 9,284,000 9,284,000 9,284,000 9,284,000 7,500,000 7,725,000 7,957,000 8,196,000 8,442,000City Share of WPCP Capital Projects 2,500,000 2,000,000 2,000,000 2,000,000 2,000,000 2,500,000 2,575,000 2,652,000 2,732,000 2,814,000______________________________________________________________________________________________________________ Subtotal 11,784,000 11,284,000 11,284,000 11,284,000 11,284,000 10,000,000 10,300,000 10,609,000 10,928,000 11,256,000Total Expenses24,963,000 25,296,000 25,744,000 26,222,000 27,510,000 26,273,000 27,101,000 27,961,000 28,843,000 29,766,000Revenues Less Expenses(5,143,000) (4,246,000) (3,776,000) (3,277,000) (3,524,000) (1,197,000) (830,000) (426,000) 27,000 234,000Ending Unrestricted Fund Balances42,137,000 37,891,000 34,115,000 30,838,000 27,314,000 26,117,000 25,287,000 24,861,000 24,888,000 25,122,000Min Rsrv Target: 50% O&M&D + $5M11,590,00012,010,00012,230,00012,470,00013,110,00013,140,00013,400,00013,680,00013,960,00014,260,000Debt Service Coverage On Parity Debt (Min>1.25)4.885.185.435.665.936.246.576.937.347.61 On Total Debt Incl Subord SSF Debt Pymts3.19 3.17 3.32 3.47 2.92 3.46 3.64 3.84 4.06 4.21 San Bruno Sewer Cash Flow Projections

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The following chart graphically shows a 10-year breakdown of projected sewer enterprise revenues and expenses. The proposed rate increases are designed to put the City on a long-term path toward supporting balanced budgets while providing adequate funding for ongoing rehabilitation and replacement of aging sewer system infrastructure to support safe and reliable service. As shown on the chart, the projections assume the City draws down approximately $21 million of fund reserves to help fund projected capital improvements while rates are being phased in.

Figure 8 – Sewer Utility Projected Revenues & Expenses

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4.6 Sewer Rate Projections
The cash flow projections indicate the need to raise sewer rates by 5.0% each year for the next 5 years in order to support the sewer utility’s projected operating and capital funding needs. These projected rate increases follow a period of no rate increases over the past 2 years as shown below. With the proposed rates, the average annual sewer rate increase since 2016 equates to approximately 4.3%.

Table 24 – Projected Sewer Rate Increases

Figure 9 – Historical & Projected Sewer Rate Increases

The 5% sewer rate increases represent the overall level of annual rate increases proposed. Actual impacts to customers’ monthly water bills may vary a little based on customer class and billed usage due to minor modifications to the rate structure designed to keep sewer rates aligned with the cost of providing service.

July 1 July 1 July 1 July 1 July 1 July 1 July 12021 2022 2023 2024 2025 2026 20275% 0% 0% 5% 5% 5% 5% 5%Projected Sewer Rate Increases

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4.7 Sewer Use
The table below shows a history of sewer use by customer class per bi-monthly billing period.

Table 25 – Sewer Use by Class
Bi-Monthly Period Jul/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/Jun Total % of Ttl2019/20 Sewer Use (hcf)RESIDENTIALBased on prior year winter water useSEWR1 151,990 151,670 153,270 151,514 151,980 151,424 911,848 77.7%SEWR1L 4,9285,5165,6405,8005,7085,84433,4362.8%Subtotal 156,918 157,186 158,910 157,314 157,688 157,268 945,284 80.6%COMMERCIAL/OTHERC-1 Light Comm 2,269 2,689 2,418 2,175 2,087 1,789 13,427 1.1%C-2 Medium Comm 18,253 20,759 17,189 14,164 11,496 9,905 91,766 7.8%C-3 Heavy Comm 13,785 14,098 13,481 12,580 8,024 5,976 67,944 5.8%C-4 Special Comm 16 16 15 14 15 14 90 0.0%Governmental 11,533 13,627 11,648 3,658 4,463 7,816 52,745 4.5%Industrial Light 2171712515472526102,0480.2%Subtotal 46,073 51,360 45,002 33,138 26,337 26,110 228,020 19.4%Total 202,991 208,546 203,912 190,452 184,025 183,378 1,173,304 100.0%2020/21 Sewer Use (hcf)RESIDENTIALBased on prior year winter water useSEWR1 157,130 156,214 155,940 156,076 156,598 156,450 938,408 80.0%SEWR1L 5,5966,1326,3306,4106,5386,61837,6243.2%Subtotal 162,726 162,346 162,270 162,486 163,136 163,068 976,032 83.2%COMMERCIAL/OTHERC-1 Light Comm 1,700 1,901 2,005 1,974 2,076 2,341 11,997 1.0%C-2 Medium Comm 12,596 11,722 11,881 10,306 13,431 14,497 74,433 6.3%C-3 Heavy Comm 8,761 8,693 9,051 7,388 8,893 10,244 53,030 4.5%C-4 Special Comm 25 21 16 18 20 19 119 0.0%Governmental 12,014 9,621 5,235 2,967 4,235 7,019 41,091 3.5%Industrial Light 3433333333464003212,0760.2%Subtotal 35,439 32,291 28,521 22,999 29,055 34,441 182,746 15.6%Total 198,165 194,637 190,791 185,485 192,191 197,509 1,158,778 98.8%2021/22 Sewer Use (hcf)RESIDENTIALBased on prior year winter water useSEWR1 158,022 158,924 158,792 158,632 158,212 158,032 950,614 81.0%SEWR1L 6,7105,6485,8385,7805,9365,96035,8723.1%Subtotal 164,732 164,572 164,630 164,412 164,148 163,992 986,486 84.1%COMMERCIAL/OTHERC-1 Light Comm 2,215 2,104 2,111 2,313 2,264 2,020 13,027 1.1%C-2 Medium Comm 15,623 15,249 11,798 12,466 11,638 12,761 79,535 6.8%C-3 Heavy Comm 10,967 11,961 10,464 10,554 10,894 11,101 65,941 5.6%C-4 Special Comm 18 18 13 16 17 18 100 0.0%Governmental 7,062 6,147 2,895 3,229 4,392 5,214 28,939 2.5%Industrial Light 3323593763543563932,1700.2%Subtotal 36,217 35,838 27,657 28,932 29,561 31,507 189,712 16.2%Total 200,949 200,410 192,287 193,344 193,709 195,499 1,176,198 100.2%Source: Based on detailed utility billing data files, may include some non-billed usage.

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4.8 Sewer Rate Derivation
The following sections develop rates projected to become effective on July 1, 2027 at the start of fiscal year 2027/28, the fifth and final year of the proposed rate increases. Rates in intervening years are phased in from current levels to the proposed levels calculated for 2027/28.

4.9 Cost Recovery Allocations
The following table allocates costs for recovery from the City’s fixed and quantity charges. Based on the allocations, fixed monthly charges are designed to recover a little under 24%% of total rate revenues and water quantity charges will recover roughly 76% of total rate revenues. These allocation percentages are consistent with the City’s current rate structure.

Table 26 – Fixed & Variable Revenue Recovery

ProjectedEXPENSES 2027/28 Exps Fixed Variable Fixed Variable Operating & MaintenanceSalaries & Benefits$3,146,00030%70%$943,800$2,202,200Less Capitalized Project Staffing(500,000)30%70%(150,000)(350,000)Supplies & Services 1,576,000 30% 70% 472,800 1,103,200Wastewater Treatment SSF 4,814,000 0% 100% 0 4,814,000Internal Charges 3,420,000 30% 70% 1,026,000 2,394,000Vehicle & Equip Replacement 234,000 30% 70% 70,200 163,800______________ ____ ____________________ Subtotal 12,690,000 19% 81% 2,362,800 10,327,200Debt Service2013 Wastewater Bonds 545,000 30% 70% 163,500 381,5002017 Wastewater Bonds 1,441,000 30% 70% 432,300 1,008,700Share of WQCP Debt, Subordi nate797,000 30% 70% 239,100 557,900Share of New WQCP Debt, Projected800,000 30% 70% 240,000 560,000______________ ____ ____________________ Subtotal 3,583,000 30% 70% 1,074,900 2,508,100Other Non-OperatingExcluding Debt-Funded ProjectsCity Sewer System Capital Projects7,500,000 30% 70% 2,250,000 5,250,000City Share of WPCP Capital Projects2,500,000 30% 70% 750,000 1,750,000______________ ____ ____________________ Subtotal 10,000,000 30% 70% 3,000,000 7,000,000Total26,273,000 24.5% 75.5% 6,437,700 19,835,300Less Revenue Offsets(698,000) 50% 50% (349,000) (349,000)Net Revenue Recovery %25,575,000 23.8% 76.2% 6,088,700 19,486,300 Cost Allocation %Cost Allocation $

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4.10 Sewer Accounts & Billing Equivalents
The following table shows the number of sewer accounts by customer class and meter size along with the associated number of fixed rate billing equivalents. Single family residential accounts billed a uniform fixed charge per home and are assigned a capacity ratio of 1.00. Commercial sewer accounts pay fixed charges based on meter size. The table calculated the number of fixed rate billing equivalents for commercial accounts based on standard American Water Works Association meter capacity ratios. For example, a 3-inch meter has roughly the same capacity as ten 3/4-inch meters and is correspondingly assigned 10 fixed rate billing equivalents.

Table 27 – Sewer Accounts & Billing Equivalents

Meter Meter Number Meter Fixed RateCode Size of Accts Capacity Ratio EquivalentsSingle Family ResidentialAll SFR 9621 1.00 9,621 All Other AccountsWT01 3/4" 620 1.00 620 WT02 1" 116 1.67 193 WT03 1-1/2" 54 3.33 180 WT04 2" 152 5.33 811 WT05 3" 5 10.00 50 WT06 4" & Larger 2 16.67 33 ______________Subtotal 949 1,887 Total 10,570 11,508 _______________Source: Estimated active accounts as of January 2023.

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4.11 Fixed Monthly Service Charges
The following table derives the fixed charge per single family home or billing equivalent by dividing the targeted level of revenues allocated for fixed rate recovery by the total projected number fixed rate billing equivalents, resulting in a fixed monthly sewer charge of $41.66 per home or commercial meter equivalent.

Table 28 – Fixed Sewer Rate Derivation

Allocation to Fixed Rate RecoveryTotal Target Rate Revenues 2027/28 $24,378,000Fixed Rate Recovery % 23.8%Fixed Rate Recovery $ $5,803,727Sewer Fixed Rate EquivalentsCurrent Fixed Rate Equivalents 11,508 Plus Projected Growth Through 2027/28 100Total Sewer Fixed Rate Equivalents11,608 Charge per Fixed Rate Equivalent Annual Charge $499.96 Monthly Charge 41.66

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4.12 Sewer Quantity Charge Derivation
The tables in this section derive sewer quantity charges for each customer class effective for fiscal year 2027/28. The following table allocates variable costs for recovery based on wastewater flow and strength.

Wastewater strength is measured by a) Biological Oxygen Demand (BOD) and b) Suspended Solids (SS).

Overall, 68.4% of variable rate costs are allocated for recovery based on the volume of wastewater flow and 31.6% of variable rate costs are allocated for recovery based on wastewater strength.

Table 29 – Variable Rate Recovery from Wastewater Flow & Strength

VariableEXPENSES Cost RecoveryFlowBODSSFlowBODSSOperating & MaintenanceSalaries & Benefits$2,202,20080%10.0%10.0%$1,761,760$220,220$220,220Less Capitalized Project Staffing(350,000) 80% 10.0% 10.0% (280,000) (35,000) (35,000)Supplies & Services 1,103,200 80% 10.0% 10.0% 882,560 110,320 110,320Wastewater Treatment SSF 4,814,000 50% 25.0% 25.0% 2,407,000 1,203,500 1,203,500Internal Charges 2,394,000 80% 10.0% 10.0% 1,915,200 239,400 239,400Vehicle & Equip Replacement 163,800 80% 10.0% 10.0% 131,040 16,380 16,380____________ ____ ____ ________________________ Subtotal 10,327,200 66.0% 17.0% 17.0% 6,817,560 1,754,820 1,754,820Debt Service2013 Wastewater Bonds 381,500 80% 10.0% 10.0% 305,200 38,150 38,1502017 Wastewater Bonds 1,008,700 80% 10.0% 10.0% 806,960 100,870 100,870Share of WQCP Debt, Subordina te557,90050%25.0%25.0%278,950139,475139,475Share of New WQCP Debt, Projected560,00050%25.0%25.0%280,000140,000140,000____________ ____ ____ ________________________ Subtotal 2,508,100 66.6% 16.7% 16.7% 1,671,110 418,495 418,495Other Non-OperatingExcluding Debt-Funded ProjectsCity Sewer System Capital Projects 5,250,000 80% 10.0% 10.0% 4,200,000 525,000 525,000City Share of WPCP Capital Projects 1,750,000 50% 25.0% 25.0% 875,000 437,500 437,500____________ ____ ____ ________________________ Subtotal 7,000,000 72.5% 13.8% 13.8% 5,075,000 962,500 962,500Total19,835,300 68.4% 15.8% 15.8% 13,563,670 3,135,815 3,135,815 Variable Cost Recovery %Variable Cost Recovery $

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The table below shows an estimate of projected sewer flow and wastewater strength loadings by customer class. The table also shows the relative wastewater strength factor for each customer class relative to residential wastewater strength based on the cost recovery percentages for wastewater flow and strength shown on the prior table.

Table 30 – Sewer Flow & Loadings by Customer Class

The next table derives unit rates for wastewater flow and strength by dividing the costs allocated to flow, BOD and SS by each of these parameters total estimated wastewater loadings resulting unit rates for flow, BOD and SS that can be applied to the wastewater characteristics of each customer class.

Table 31 – Derivation of Unit Rates for Wastewater Flow & Strength

WastewaterFlow StrengthBasis (hcf) (MG) BOD SS BOD SS FactorRes Single Family ResWinter Use1642,000480.2200200801,054801,0541.00Res Multi-Family ResWinter Use1328,000245.4200200409,261409,2611.00C-1 Light Commercial Annual Use 13,000 9.7 150 150 12,166 12,166 0.93C-2 Medium Commercial Annual Use 78,000 58.3 200 200 97,324 97,324 1.00C-3 Heavy Commercial Annual Use 65,000 48.6 500 500 202,759 202,759 1.45C-4 Special Commercial Annual Use 100 0.1 800 800 499 499 1.90G Governmental Annual Use 26,000 19.4 200 200 32,441 32,441 1.00I-1 Light Industrial Annual Use 2,000 1.5 200 200 2,495 2,495 1.00Total 1,154,100 863.3 216 216 1,558,000 1,558,000WastewaterWastewaterStrength (mg/l)Loadings (lbs)EstimatedWastewater Flow Allocation to Variable Rate RecoveryTotal Target Rate Revenues 2027/28 $24,378,000Variable Charge Recovery % 76.2%Variable Charge Recovery $ $18,574,273Allocation to Flow, BOD, SSFlowBODSSCost Allocation % 68.38% 15.81% 15.81%Cost Allocation $ $12,701,000 $2,936,000 $2,936,000Total Annual Loadings 1,154,100 1,558,000 1,558,000Units hcf lbs lbsUnit Costs $11.01 $1.88 $1.88per hcf per lb per lb

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The following table calculates sewer quantity charges for each customer class for July 1, 2027 based the unit rates derived in the prior table and the wastewater strength associated with each customer class. All classes pay the same amount for wastewater flow, however customer classes with higher-strength wastewater pay more for costs associated with wastewater strength.

Table 32 – Sewer Quantity Charges by Customer Class

4.13 Proposed Sewer Rates
The table on the following page shows a 5-year schedule of proposed sewer rates incorporating a) the overall level of required rate increases needed to fund the costs of providing service, b) the updated cost allocations that apportion costs to the various components of City’s sewer rate structure. Proposed sewer rates are scheduled to become effective July 1 at the beginning of each fiscal year. The rates shown for each year are projected to gradually increase by the same percentage each year from current rates to the rates derived for July 1, 2027.

Total Flow BOD SS Rate Customer Class BOD SS $11.01 $1.88 $1.88 per hcf Res Residential 200 200 $11.01 $2.35 $2.35 $15.71C-1 Light Commercial 150 150 11.01 1.76 1.76 14.53C-2 Medium Commercial 200 200 11.01 2.35 2.35 15.71C-3 Heavy Commercial 500 500 11.01 5.88 5.88 22.76C-4 Special Commercial 800 800 11.01 9.41 9.41 29.82G Governmental 200 200 11.01 2.35 2.35 15.71I-1 Light Industrial 200 200 11.01 2.35 2.35 15.71WastewaterUnit Rates ($ per hcf or lb)Strength (mg/l)

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Table 33 – Proposed Sewer Rates

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4.14 Sewer Rate Impacts
The following tables show the impacts of the proposed sewer rates on a range of single family residential and commercial customers.

Table 34 – Single Family Residential Sewer Rate Impacts

% of Bills Currentat or Sewer July 1 July 1 July 1 July 1 July 1Below Charges 2023 2024 2025 2026 2027Overall Sewer Rate Increase5.0% 5.0% 5.0% 5.0% 5.0%Single Family Residential, 3/4" Meter (Bi-Monthly Billing)Bi-Monthly UseLow 6 hcf25%Bi-Monthly Bill$138.76 $145.77 $153.14 $160.89 $169.02 $177.57(3 hcf / month)Monthly Equivalent69.38 72.89 76.57 80.44 84.51 88.78Monthly Increase3.51 3.68 3.87 4.07 4.27% Increase5.1% 5.1% 5.1% 5.1% 5.1%Typical 10 hcf50%Bi-Monthly Bill$188.24 $197.68 $207.59 $217.99 $228.92 $240.40(5 hcf / month)Monthly Equivalent94.12 98.84 103.79 109.00 114.46 120.20Monthly Increase4.72 4.95 5.20 5.46 5.74% Increase5.0% 5.0% 5.0% 5.0% 5.0%Mod-High 16 hcf80%Bi-Monthly Bill$262.46 $275.53 $289.25 $303.65 $318.77 $334.64(8 hcf / month)Monthly Equivalent131.23 137.76 144.62 151.82 159.39 167.32Monthly Increase6.53 6.86 7.20 7.56 7.94% Increase5.0% 5.0% 5.0% 5.0% 5.0%High 24 hcf90%Bi-Monthly Bill$361.42 $379.33 $398.13 $417.86 $438.57 $460.31(12 hcf / month)Monthly Equivalent180.71 189.67 199.06 208.93 219.29 230.15Monthly Increase8.96 9.40 9.87 10.35 10.87% Increase5.0% 5.0% 5.0% 5.0% 5.0% Projected Charges with Rates Effective

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Table 35 – Commercial Sewer Rate Impacts

Monthly CurrentBillable Sewer July 1 July 1 July 1 July 1 July 1Use (hcf) Charges 2023 2024 2025 2026 2027Overall Sewer Rate Increase5.0% 5.0% 5.0% 5.0% 5.0%Commercial Low Strength C-13/4" Meter 10 hcfMonthly Bill$147.27 $154.47 $162.03 $169.95 $178.26 $186.98Monthly Increase7.20 7.55 7.92 8.31 8.72% Increase4.9% 4.9% 4.9% 4.9% 4.9%Commercial Medium Strength C-23/4" Meter 10 hcfMonthly Bill$155.97 $163.71 $171.84 $180.38 $189.34 $198.74Monthly Increase7.74 8.13 8.53 8.96 9.40% Increase5.0% 5.0% 5.0% 5.0% 5.0%1" Meter 25 hcfMonthly Bill$363.03 $380.98 $399.83 $419.60 $440.35 $462.12Monthly Increase17.95 18.84 19.77 20.76 21.77% Increase4.9% 4.9% 4.9% 4.9% 4.9%1-1/2" Meter50 hcfMonthly Bill$726.07 $761.97 $799.66 $839.20 $880.70 $924.26Monthly Increase35.90 37.69 39.54 41.50 43.56% Increase4.9% 4.9% 4.9% 4.9% 4.9%2" Meter 100 hcfMonthly Bill$1,409.11 $1,478.66 $1,551.65 $1,628.24 $1,708.62 $1,792.97Monthly Increase69.55 72.99 76.59 80.37 84.35% Increase4.9% 4.9% 4.9% 4.9% 4.9%4" Meter 200 hcfMonthly Bill$3,011.83 $3,161.09 $3,317.74 $3,482.17 $3,654.75 $3,835.89Monthly Increase149.26 156.65 164.43 172.59 181.13% Increase5.0% 5.0% 5.0% 5.0% 5.0%Commercial High Strength C-33/4" Meter 10 hcfMonthly Bill$208.37 $219.34 $230.88 $243.03 $255.82 $269.28Monthly Increase10.97 11.54 12.15 12.79 13.46% Increase5.3% 5.3% 5.3% 5.3% 5.3%1" Meter 25 hcfMonthly Bill$494.03 $520.04 $547.41 $576.22 $606.56 $638.48Monthly Increase26.01 27.38 28.81 30.33 31.92% Increase5.3% 5.3% 5.3% 5.3% 5.3%2" Meter 100 hcfMonthly Bill$1,933.11 $2,034.87 $2,141.98 $2,254.74 $2,373.43 $2,498.37Monthly Increase101.76 107.11 112.76 118.69 124.94% Increase5.3% 5.3% 5.3% 5.3% 5.3% Projected Charges with Rates Effective

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO

DATE: April 25, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY: Damian Sandholm, Interim Community Services Director Matthew Lee, P.E., Public Works Director

SUBJECT:Receive Written Update on the City’s Response Efforts to the Late 2022 to 2023 Winter Storms
BACKGROUND: This report is to provide an update on the City’s response efforts to the Late 2022 to 2023 winter storms. The information provided in this report is as of the time it was produced and may be subject to change.

In late December 2022 and early January 2023, California began experiencing severe winter storms related to a series of atmospheric river systems causing record rainfall. This event brought high winds, substantial precipitation, flooding, and other safety hazards across San Mateo County and neighboring regions.

Typically, before each rainy season and significant weather event, City staff undertake various storm preparation activities. This includes trash/debris removal, inspection/cleaning of catch basin grates and storm drain trash capture devices, resupply of the City’s free sandbag station and other preparatory tasks.

In response to this storm event, the City activated the Emergency Operations Center (EOC) on January 3, 2023, to redeploy City resources and personnel to perform essential functions and ensure public safety by working to protect infrastructure. If evacuations were needed, the City designated the San Bruno Senior Center as a temporary evacuation point (TEP) and stood ready to open the TEP at a moment’s notice.

As the rain subsided, the City deactivated the EOC on January 12 with the EOC ready to be reactivated, as needed. The City remains under a Local State of Emergency for the late December 2022 and early January 2023 winter storms. The City also continues to identify and assess both short-term and long-term repairs to storm-related damage.

As severe weather patterns persisted throughout March and early April, in particular strong winds, the City began experiencing additional damage, with several tree failures throughout the City that we are continuing to respond to.

DISCUSSION: While the major rain has stopped and the flooding has subsided, the City continues to proactively respond to infrastructure damage and implement repairs as quickly as is feasible from the event. Over 85 percent of the infrastructure repair cost estimate

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April 25, 2023

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4 (approximately $1,000,000) from the winter storms in late December 2022 and early January 2023 is related to repairs to failures of the City’s storm water system, particularly a sinkhole and failure of a 54-inch stormwater drainpipe at the north west corner of Skyline Boulevard and Sneath Lane. As of April 10, the majority of the repairs for that failed storm drain pipe have been completed except for the final tie-in connection that is pending.

Staff is also continuing to investigate and determine an engineering repair for a sunken manhole in the 2600 block of Oakmont Drive. The recommendation from the geotechnical consultant is to perform borings and a review of the subsurface conditions in order to develop recommendations to bridge the sinkhole and support the roadway. Those exploratory borings were performed on April 4 and the geotechnical consultant is currently analyzing the results.

As strong wind patterns persisted throughout March and early April, the City experienced several tree failures. At approximately 5:30 p.m. on March 9, three Eucalyptus trees fell on the 3rd base line at Diamond 3. The backstop, 3rd base line fence, and 3rd base dugout were severely damaged. The 3rd base bleachers have been structurally compromised and the infield light pole along 3rd base along with the lights have been damaged beyond repair. The tree removal at Diamond 3 was completed on April 20. City staff received an estimate to repair the fence, dugouts, bleachers, and field from Bothman Construction. City staff is reviewing the estimate and developing a contract for the repair. The project is anticipated to begin in early May with the potential completion of the repair in mid-June. The repair work will take approximately 4-6 weeks to complete.

Staff also recently discovered that the fallen tree near the Senior Center which caused a power outage to the facility causing a short circuit to the traffic signal at Crystal Springs Road and Cunningham Way. The processor and other equipment in the traffic control cabinet are in need of replacement due to the high voltage wire causing the shortage. Staff are working on a solution to ensure the intersection is fully functional again.

On April 2, another Eucalyptus tree failed near 2306 Valleywood Drive, which occurred on the uphill slope of City property. A tree limb also fell in the backyard of this same property which caused a power outage in the area. The City immediately began working with the occupants and neighboring properties. The City has been collaborating with PG&E and a contractor for the removal of the failed Eucalyptus tree. As of April 10, the Eucalyptus tree near 2306 Valleywood Drive has been removed by PG&E and the City is awaiting an estimate for additional emergency tree removal work to remove additional trees in this Eucalyptus grove on the City-owned parcel behind 2300 through 2326 Valleywood Drive.

As the City continues its winter storm-related recovery efforts, focus continues on reimbursement recovery for the substantial storm-related costs for the winter storms between December 24, 2022, through January 31, 2023, which, have amassed to approximately $1,000,000 as of April 10, with a large portion of it currently attributing to one project. To assist with reimbursement recovery efforts, the City has engaged with professional consulting firm, Kermani Consulting Group, to provide disaster cost recovery and grant management support for the 2023 storm disasters under the State of California Office of Emergency Services (CalOES) California Disaster Assistance Act (CDAA) and Federal Emergency Management Agency (FEMA) Public Assistance (PA) programs (FEMA-4683-DR-CA/CDAA 2023-01). In early April, the City was informed that their project application was approved and staff are hosting a meeting with both CalOES and FEMA in mid-April to move forward with damage inventorying and reimbursement recovery efforts.

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4 FISCAL IMPACT: Public infrastructure repairs for the late December 2022 and early January 2023 winter storms are currently estimated at $1,000,000. As of April 10, expenditures (i.e., staff time and other storm expenses) are totaled at approximately $1,064,000.

ENVIRONMENTAL IMPACT: There is no environmental impact. The informational update is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.

RECOMMENDATION: Receive written update on the City’s response efforts to the late 2022 to 2023 winter storms.

ALTERNATIVES: The City remains under a Local State of Emergency and the EOC remains deactivated but is ready to be reactivated as needed. There are no alternatives to the current recommended actions proposed at this time.

ATTACHMENTS: N/A

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE:April 25, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, Interim City Manager
PREPARED BY:Matthew Lee, Public Works Director

SUBJECT:Consider Adopting a Resolution Approving Various Curb Marking Changes to Install No Parking Red Zones on Darby Place and Oxford Lane and Determining the Project is Exempt Under the California Environmental Quality Act
BACKGROUND:

Skyline Park, constructed in 1967, is a subdivision in San Bruno (City), consisting of 94 multi-family housing units located along two public streets: Darby Place and Oxford Lane.

Attachment 2 provides a location map, and Attachment 3 provides photos of the area. Over the years, the City has received numerous resident concerns regarding the parking behaviors on these streets, including:
•Vehicles parking on both streets in violation of the California Vehicle Code, which regulates parking on public streets under Division 11, Rules of the Road, Chapter 91;
•Vehicles parking on Darby Place and on Oxford Lane in a manner that blocks driveways and sidewalks;
•Vehicles parking in driveways that are not of an adequate depth to allow for off- street vehicle parking because when parked in these driveways, the vehicle overhangs beyond the driveway into the street;
•Residents utilizing multiple parking spaces; and,
•Residents using garages or carports for non-vehicle parking purposes and instead, parking cars in common Homeowners Association (HOA) property parking spaces or non-designated parking spaces (in some instances, “double parking” in the street).

Darby Place and Oxford Lane have unique street designs with features unique to the nature of the master planned multi-family developments located in this subdivision, including:
•A narrow street design with non-standard curbs;
•No on-street parking due to the narrow street width;
1 https://casetext.com/statute/california-codes/california-vehicle-code/division-11-rules-of-the-road/chapter-9-stopping-standing-and- parking

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•Close proximity of garages and carport entrances to the street and sidewalk. These driveways are generally shallow and not a conforming depth of 18 feet for residential driveways to accommodate a parking space in the driveway. •Close proximity of building entrances to the streets.

Due to this subdivision’s unique design, a range of parking behaviors, as indicated above, have transpired over the years creating adverse effects on its residents’ collective quality of life.

These behaviors impede quality of life in a variety of manners, from a resident who is carrying groceries having to maneuver between multiple cars to enter their own residence, to emergency responders being unable to bring a gurney into a residence, to fire trucks having insufficient space to unload their equipment at a residential entrance, among a variety of other impediments.

Over the years, the City has received numerous parking-related concerns from Skyline Park residents. Signage had been installed indicating that the street(s) were private Homeowners Association property with unauthorized vehicles subject to towing. Therefore, the City did not take any action to issue parking citations, as it did not believe it had legal authority to do so. However, staff recently researched the street ownership and based on a review of historical documents as well as the subdivision maps for this neighborhood, it was determined that both Darby Place and Oxford Lane are City public streets. This new information confirms that the City’s Police Department has the legal authority to enforce the applicable laws and codes within Darby Place and Oxford Lane, and the City Council to have governance over curb markings for code conformance.

Both Darby Place and Oxford Lane are presumed to be built to codes and requirements that existed at the time that it was approved by the City back in the 1960s. For background, all buildings in the state of California are subject to the California Fire Code (CFC). The City adopted the CFC in the City’s Municipal Code Title 11 Chapter 24, San Bruno Fire Code (Fire Code). The construction and design provisions of the Fire Code typically apply to structures, facilities and conditions arising after the adoption of the Fire Code. However, the Fire Code does allow for the code to apply for “existing structures, facilities and conditions that, in the opinion of the fire code official, constitute a distinct hazard to life or property.” Due to the incessant parking violations experienced across both streets, staff recommends applying the current Fire Code requirements for street width and turnaround to these two streets. The current Fire Code requires a minimum clear width of 20 feet and increases to 26 feet when near a fire hydrant. In addition, sufficient turnaround provisions for fire apparatuses entering a dead-end street in excess of 150 feet is required. Therefore, staff recommended the installation of new red “no parking zones” on Darby Place and Oxford Lane to improve traffic circulation, pedestrian safety, and emergency access (Attachment 1 - Exhibits A and B). Recommendations to the City Council to improve traffic conditions are first reviewed by the City’s Traffic Safety and Parking Committee (TSPC). The TSPC reviewed this item on August 3, 2022. At the meeting, the committee voted to recommend the installation of the curb striping recommended by staff with no changes. Residents also attended this meeting and provided public comments.

On October 4, 2022, staff presented to City Council a resolution approving the various curb marking changes on Darby Place and Oxford Lane. The proposed resolution was brought

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forward for City Council review and action. Several residents attended this meeting and expressed concerns about the reduction in parking availability if “no parking zones” were to be implemented. The City Council continued the agenda item to a future meeting and requested staff to conduct an off-street parking count and to further analyze the parking situation at Skyline Park.

DISCUSSION:

Additional Analysis of Parking Conditions
As a follow up to that October 4 meeting staff performed an extensive parking analysis, which included:
•Reviewing the original Skyline Park Planning Application from 1965. oFindings: The 1965 Planning Application did not include any details or information specific to parking plans, requirements, configuration, or regulations. •Reviewing Skyline Park’s Covenants, Conditions & Restrictions (CC&Rs) from 1965 oFindings: The 1965 CC&Rs did not include anything definitive specific to parking plans, requirements, configuration, or regulations.
•Performing an off-street parking count.
oFindings: Darby Place and Oxford Lane have a total of 259 parking spaces. This is broken down into 202 off-street spaces and 57 Common Property spaces for its 94 units. This provides approximately 2.75 parking spaces per unit, which exceeds the City’s current standards which range from 1 to 2 spaces per unit, plus 1 guest space per 10 units.

Staff also held multiple meetings with the Homeowners Association Neighborhood Association Management (HOA Management) on partnership solutions. •Findings: After discussing the parking situation in further detail, the City recommended HOA Management to:
oModify their CC&R to further expand on their parking restrictions authority which could include but was not limited to ensuring garage spaces are utilized for vehicles and not storage.
oImplement additional enforcement tools for commercial vehicle parking in Common Property parking spaces (i.e., fines).

Additionally, the City worked with AT&T’s contractor to remove the temporary delineator posts that were previously located on Crestmoor Drive for a construction project. These posts blocked access to ten parking spaces. Their removal has thus increased the nearby parking supply available to residents by ten parking spaces.

Skyline Park HOA Follow Up
Since the City Council meeting on October 4, 2022, Skyline Park HOA:
•Drafted a Parking and Vehicle Regulations (Regulations) parking permit program (Attachment 5) in accordance with their CC&R, which was approved by the HOA Board in March 2023. This new program allows for each unit to be issued one numbered parking permit and for all vehicles under the parking permit to be

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registered with the property manager. Additionally, each unit will be issued one single visitor parking pass. The new Regulations also include additional guidelines regarding inoperable vehicles, commercial vehicles, prohibited vehicles, and parking enforcement.
oFindings: The new parking permit program limits each unit to a maximum of 2 parking spaces of the 57 Common Property spaces to eliminate previous situations in which a resident is parking multiple cars in the Common Property spaces.
•At the City’s request, Skyline Park HOA has been requested to initiate a parking ambassador program where volunteers will serve as parking ambassadors and provide courtesy reminders about parking rules and regulations to any violators. oFindings: Once implemented, the City will monitor and evaluate this program to determine its efficacy in curbing the multitude of parking violations that occur on both Darby Place and Oxford Lane.
•The HOA Board confirmed at their December 20, 2022, Board Meeting that they were not in support of the City’s proposed curb marking changes on Darby Place and Oxford Lane.

Parking Impact from Proposed No Parking Zone
The proposed new red ”no parking zones” on Darby Place and Oxford Lane, as presented on October 4, 2022, would result in the following parking modifications:
•Darby Place:
oThe entire public right of way on the Darby Place cul-de-sac is proposed to be painted red for a no parking zone. As some portions of the cul-de-sac have no curbs to separate the public right of way from the private right of way, a fire lane striping will be painted on the public right of way. As illustrated on Attachment 4, this would result in the loss of one existing parking space (Space #9) while parking on two spaces (Space #7 and Space #8) would be restricted to either smaller vehicles and/or motorcycles.
oMost of the buildings are within 10 feet of the edge of the roadway, and the housing units facing the street in the southbound travel direction have a shared entrance. Due to this configuration and to maintain adequate ingress/egress in the event of an emergency, the Fire Department is recommending that the vertical curb in front of the shared entrance on the southbound travel direction be marked red for no parking and the face of the curb in the northbound travel direction be marked red from 100 Darby Place to 180 Darby Place. The red curbing proposed above would not result in the loss of public on-street parking but it would require residents to park in a manner that is fully compliant with City parking regulations. Thus, residents would need to always park in a manner that does not overhang onto the sidewalk and into the street, or park on the street where parking is not legally permitted based on the street width. The parking restrictions recommended for Darby Place are as shown on Attachment 1 - Exhibit A.
•Oxford Lane:
oMost of the buildings are within 15 feet of the edge of the roadway and the duplexes and fourplexes have shared entrances. Due to this configuration and to maintain adequate ingress/egress in the event of an emergency, the Fire Department is recommending that the face of the curb in the northbound travel

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direction be marked red from 110 Oxford Lane to 150 Oxford Lane and the face of the curb in the westbound travel direction be marked red from 170 Oxford Lane to 190 Oxford Lane. The red curbing proposed above would not result in the loss of public on-street parking. The parking restrictions recommended for Oxford Lane are as shown on Attachment 1 - Exhibit B.

Conclusion
In summary, of Skyline Park’s 259 total parking spaces (202 off-street spaces and 57 Common Property spaces), approximately 10 additional spaces were added by removing the cones on Crestmoor Drive, and the HOA’s new parking permit program will allow for even distribution of parking for residents. Additionally, the HOA’s upcoming parking ambassador program will assist with self-enforcement of this subdivision’s parking rules and regulations.

Given the minimum parking impacts from the proposed new ”no parking zones” on Darby Place and Oxford Lane, and the increased parking availability created from the efforts noted above, the City recommends adoption of the proposed resolution (Attachment 1) to install curb markings at Skyline Park to improve the quality of life of its residents.

The Homeowners Association for the residences on Darby Place and Oxford Lance was notified of the City Council meeting. Additionally, the residents, primarily whom are renters, and property owners within a 300-foot vicinity of the proposed red curb installation were notified by mailed public notices.

FISCAL IMPACTS:

There is sufficient funding in the operating budget to install no parking red zones and no new budget appropriation is being requested.

ENVIRONMENTAL IMPACT:

This action is exempt from the California Environmental Quality Act, pursuant to CEQA Guidelines Section 15301(c), existing facilities which exempts minor alterations of existing streets, sidewalks, gutters, bicycle and pedestrian trials, and similar facilities. This project will not cause an expansion of an existing use of the streets.

RECOMMENDATION:

Consider adopting a resolution approving various curb marking changes to install no parking red zones on Darby Place and Oxford Lane and determining the project is exempt under the California Environmental Quality Act.

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ALTERNATIVES:

1. Do not approve the proposed installation of no parking red zone.

2. Direct staff to modify the proposed no parking red zones.

ATTACHMENTS:

1. Resolution with Exhibit A: Darby Place Proposed Red Zone and Exhibit B: Oxford Lane Proposed Red Zone

2. Location Map

3. Photos of Area

4. Darby Place Cul-de-sac

5. Skyline Park Homeowners Association - Parking and Vehicle Regulations

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RESOLUTION NO. 2023 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO APPROVING

VARIOUS CURB MARKING CHANGES TO INSALL NO PARKING RED ZONES ON

DARBY PLACE AND OXFORD LANE AND DETERMINING THE PROJECT IS EXEMPT

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, pursuant to Title VII, Section 7.08.040, the Traffic Safety and Parking Committee (TSPC) is tasked with reviewing and recommending to the City Council areas in which parking is prohibited or restricted on streets within the public right of way; and WHEREAS, pursuant to Title VII, Section 7.08.050, of the San Bruno Municipal Code, any action of the City Council following a recommendation from the Department of Public Works and the TSPC shall be taken by resolution; and
WHEREAS, pursuant to Title VII, Section 7.12.030 of the San Bruno Municipal Code grants the City Traffic Engineer the duty and responsibility for placing and maintaining traffic control devices he or she deems necessary to guide or warn traffic based on engineering principles and investigations; and
WHEREAS, installing red no parking zones on Darby Place and Oxford Lane would improve traffic circulation, compliance with parking regulations, pedestrian safety, and emergency response access; and
WHEREAS, the TSPC reviewed and concurred with the proposed curb striping at the location mentioned above; and
WHEREAS, this action is exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15301(c), existing facilities which exempts minor alterations of existing streets, sidewalks, gutters, bicycle and pedestrian trials, and similar facilities. This project will not cause an expansion of an existing use of the streets.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves the following:

1. Along the Darby Place cul-de-sac, red fire lane striping starting from the curb return located at the corner of 180 Darby Place and along the public right of way to 171 Darby Place as shown on Exhibit A;

2. Along Darby Place, red curb striping in the northbound travel direction from 100 Darby Place to 180 Darby Place as shown on Exhibit A;

3. Along Darby Place, red curb striping in front of the shared entrances located between the driveway curb cuts of 101 Darby Place, 111 Darby Place, 121 Darby Place, 131 Darby Place, 141 Darby Place, 151 Darby Place and 171 Darby Place as shown on Exhibit A;

4. Along Oxford Lane, red curb striping in the northbound travel direction from 110 Oxford Lane to 144 Oxford Lane as shown Exhibit B;

5. Along Oxford Lane, red curb striping in front of the shared entrances located between the driveway curb cuts of 170 Oxford Lane, 180 Oxford Lane and 190 Oxford Lane as shown on Exhibit B;

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2 AND BE IT FURTHER RESOLVED that the City Council hereby finds the project is exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15301(c), existing facilities which exempts minor alterations of existing streets, sidewalks, gutters, bicycle and pedestrian trials, and similar facilities. This project will not cause an expansion of an existing use of the streets. ---oOo---
I hereby certify that foregoing Resolution No. 2023 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on ___________, 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

Lupita Huerta, City Clerk
Exhibit A: Darby Place Proposed No Parking Red Zone
Exhibit B: Oxford Lane Proposed No Parking Red Zone

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DARBY PLACE - PROPOSED FIRE LANE RED ZONE

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OXFORD LANE - PROPOSED FIRE LANE RED ZONE

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City of San Bruno IT/GIS Services
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333.330
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ATTACHMENT 3 - PHOTOS

Darby Place

Oxford Lane

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1 SKYLINE PARK HOMEOWNERS ASSOCIATION
c/o NAM Association Management, Inc.

P.O. Box 10968
Pleasanton, CA 94588
(925) 243-1797
www.neighborhoodam.com

PARKING & VEHICLE REGULATIONS – PROPOSED UPDATE OCTOBER 2022

Section 1. Resident’s Rules

A. Each unit will be issues one (1) numbered parking permit. One replacement permit can be purchased for $50. A second replacement permit can be purchased for $100.

B. Each Owner is responsible for registering all vehicles with the property manager that they or their lessees intend to park on the property of Skyline Park. In order to receive the mandatory resident parking registration stickers, residents must provide documentation for each vehicle showing the address of the residence within the association that the vehicle belongs to.

C. Only Vehicles displaying authorized parking permits may park in the Association’s parking lots. A parking permit MUST be displayed on the guest car dashboard and must be visible to avoid towing. Any Vehicles may not be parked in an Association parking space for more than seventy-two (72) consecutive hours. Vehicles parked for more than 72 hours will be towed at the owner’s expense.

D. Inoperable vehicles may not be parked or stored in the Association’s parking spaces or in common areas. This includes vehicles registered as Planned Non-Operational.

E. Limousines are prohibited entirely in every Skyline Park parking lot and may not be authorized to use a unit’s parking permit or be stored or parked in any of the Association’s common area parking lots.

F. Note that Owners have the responsibility to inform their tenants of the Association Rules and Regulations and to ensure that their tenants comply.

G. If a unit is sold the permit must be returned to the Association. The seller may not transfer the permit to the new owner to give or sell it to another Skyline Park resident.

H. Parking permits are the property of the Association, and the Association may require that they be returned for various reasons from time to time (e.g., replacement due to wear and tear, disciplinary measures). Neither homeowners nor their tenants may transfer, trade, or loan parking permits to each other.

I. Lost parking permits will be deleted from the system and become invalid. Any vehicles caught using lost parking permits is subject to a fine of up to $500 at the discretion of the Board.

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2 Section 2. Guest Parking Spaces

A. Each unit will be issued one (1) single visitor parking pass with a registered permit number on it. A list of authorized permit numbers will be made available to all residents of the Skyline Park Association.

B. A vehicle with a guest pass may park in a designated guest space for a period of no longer than 72 consecutive hours - and no more than 10 days out of any month. If the vehicle exceeds these time limits it will be subject to towing at the owner's expense.

C. A guest parking permit MUST be displayed on the guest car dashboard and must be visible to avoid towing.

D. Resident is responsible to return all parking permits in good condition upon vacating. If a visitor pass is reported lost it will be deleted from the active list and replaced at a cost of $100 – fee to be paid by the Owner of the residence with which the vehicle is associated.

Section 3. Repair, Restoration, or Maintenance

A. No repair, restoration, or maintenance of any vehicle may be conducted on the common area property – including but not limited to: changing oil, rotating tires, draining radiators, engine repairs, etc.

B. Vehicles on jacks or blocks are prohibited except for immediate action to change flat tires.

Section 4. Prohibited Vehicles

A. The following vehicles are “Prohibited Vehicles”: (a) recreational vehicles e.g., motorhomes, travel trailers, camper vans and boats, ATV’s, or other such vehicles defined in the opinion of the Association Board of Directors as Recreational Vehicle (RV or Off Road)); (b) commercial-type vehicles (e.g., stakebed trucks, tank trucks, dump trucks, step vans, concrete trucks, and limousines); (c) buses or vans designed to accommodate more than ten (10) people; (d) vehicles having more than two (2) axles; (e) trailers, (f) inoperable vehicles or parts of vehicles; (g) aircraft; (h) boats; (i) any vehicle or vehicular equipment deemed as a nuisance by the Association; and (j) any other vehicles not classified as Authorized Vehicles.

B. Prohibited vehicles may not be parked, stored or kept on any public or private street in, adjacent to or visible from the Properties or any other Common Property parking area except for brief periods for loading, unloading, making deliveries or emergency repairs.

Section 5. Enforcement of Parking Rules
A. Violation of any of the parking rules by any resident, guest, contractor, etc., may result in actions against the violating party by the association which can include towing of vehicle, citation affixed to the vehicle by the association, fines against the owner of the residence to which the vehicle is assigned, suspension of common area privileges, and/or any other enforcement actions allowed to the Board of Directors as directed by the Association Governing Documents and the Davis Sterling Act.

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April 25, 2023