"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
September 12, 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/83804654714?
pwd=YmxueTZ5MXVUZzNjeitacVh6S3RlUT09
Phone Line: 16465588656
Webinar ID: 838 0465 4714
Webinar Password: 005005
*Teleconference participation is offered in the meeting via Zoom as a courtesy to the public. If no members of the City Council are attending the meeting via teleconference, and a technical error or outage occurs on the teleconference
feed, the City Council will continue the meeting in public in the San Bruno Senior Center.
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. The City Council study session to discuss the Draft Regulations Relating to Paid On and Off Street Parking Areas in the Downtown and El Camino Real Corridor is scheduled for the regular City Council meeting on September 26, 2023 at 7:00 pm
b. The recruitment for part time positions for the San Bruno Recreation and Aquatic Center has begun! There are many great parttime positions available for all levels of experience. These communityoriented jobs have flexible schedules, and a variety of Weekday, Evening, and Weekend shifts available. Please visit the sanbruno.ca.gov/RACjobs for more information.
Apply now to be a part of the San Bruno RAC Team!
c. Issue Proclamation Declaring September 15 October 15, 2023 as Hispanic Heritage Month d. We would like to recognize the outstanding dedication and commitment of four City of San Bruno employees who are commemorating their 25th work anniversaries in the month of September 2023. We commend these employees for their hard work, loyalty, and invaluable contributions to the City. We extend our heartfelt congratulations and sincere thanks to these employees for their dedication: Ted H. Chapman (Public Works), Scott M. Zayac (Public Works), Lt. Gene K. Wong (Police Dept.), and Captain James J. Houlihan III (Fire Dept.).
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 the Draft Special Meeting Minutes for June 7, 2022; June 14, 2022; June 17, 2022; June 28, 2022 (4 pm); June 28, 2022 (5:00 pm); August 3, 2022; August 10, 2022; August 15, 2022; August 16, 2022; August 17, 2022; August 23, 2022; August 24, 2022; August 30, 2022; and August 31, 2022 and Regular Meeting Minutes for June 14, 2022; June 28, 2022; August 23, 2022 and May 23, 2023
b. Approve Accounts Payable for August 14, 2023, August 21, 2023, August 28, 2023, and September 5, 2023.
c. Accept Payroll for August 13, 2023 and August 27, 2023 d. Approve Investment Report dated July 31, 2023
e. Approve Reconciliation of General Ledger to Bank Report Dated April 30, 2023, May 31, 2023, and June 30, 2023
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 Water Rate Increases Effective January 1, 2024 through December 31, 2028
g. Consider Adoption of a Resolution Rejecting All Bids and Authorizing the ReAdvertisement of the Bid for the Oak Avenue and Crystal Springs Road Intersection Improvements Project
7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Adoption of a Resolution:
• Approving the Design of the 202223 Street Rehabilitation Project; • Authorizing the City Manager to Execute a Construction Contract with O’Grady Paving, Inc. for the 202223 Street Rehabilitation Project in the Amount of $5,784,871.65 and Approving a Construction Contingency of $867,730.75; or Authorizing the City Manager to Execute a Construction Contract with Interstate Grading and Paving, Inc. for the 202223 Street Rehabilitation Project in the Amount of $5,306,673.12 and Approving a Construction Contingency of $796,000.97 and;
• Authorizing the City Manager to Execute a Contract for Material Testing Services with Twining, Inc. in an Amount Not to Exceed $80,000;
• Transfer the budget in the amount of $1,190,000 from the 202324 Street Rehabilitation Project to the 202223 Street Rehabilitation Project;
• Determining the Project is Exempt Under the California Environmental Quality Act b. Consider Adoption of a Resolution Approving Amended City Investment Policy c. Introduce, Read by Title Only, and Waive Further Reading of an Ordinance Entitled “An Ordinance of the City Council of San Bruno Amending Section 2.04.110(b) of the San Bruno Municipal Code Establishing Procedures for Selection of Vice Mayor"
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 September 26, 2023 at 7:00 p.m.
POSTING: I declare a copy of this agenda was posted at City Hall, 567 El Camino Real, San Bruno, among other locations in the city limits of San Bruno, on September 8, 2023, by 7:00 p.m.
1 of 168
"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
September 12, 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/83804654714?
pwd=YmxueTZ5MXVUZzNjeitacVh6S3RlUT09
Phone Line: 16465588656
Webinar ID: 838 0465 4714
Webinar Password: 005005
*Teleconference participation is offered in the meeting via Zoom as a courtesy to the public. If no members of the City Council are attending the meeting via teleconference, and a technical error or outage occurs on the teleconference
feed, the City Council will continue the meeting in public in the San Bruno Senior Center.
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. The City Council study session to discuss the Draft Regulations Relating to Paid On and Off Street Parking Areas in the Downtown and El Camino Real Corridor is scheduled for the regular City Council meeting on September 26, 2023 at 7:00 pm
b. The recruitment for part time positions for the San Bruno Recreation and Aquatic Center has begun! There are many great parttime positions available for all levels of experience. These communityoriented jobs have flexible schedules, and a variety of Weekday, Evening, and Weekend shifts available. Please visit the sanbruno.ca.gov/RACjobs for more information.
Apply now to be a part of the San Bruno RAC Team!
c. Issue Proclamation Declaring September 15 October 15, 2023 as Hispanic Heritage Month d. We would like to recognize the outstanding dedication and commitment of four City of San Bruno employees who are commemorating their 25th work anniversaries in the month of September 2023. We commend these employees for their hard work, loyalty, and invaluable contributions to the City. We extend our heartfelt congratulations and sincere thanks to these employees for their dedication: Ted H. Chapman (Public Works), Scott M. Zayac (Public Works), Lt. Gene K. Wong (Police Dept.), and Captain James J. Houlihan III (Fire Dept.).
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 the Draft Special Meeting Minutes for June 7, 2022; June 14, 2022; June 17, 2022; June 28, 2022 (4 pm); June 28, 2022 (5:00 pm); August 3, 2022; August 10, 2022; August 15, 2022; August 16, 2022; August 17, 2022; August 23, 2022; August 24, 2022; August 30, 2022; and August 31, 2022 and Regular Meeting Minutes for June 14, 2022; June 28, 2022; August 23, 2022 and May 23, 2023
b. Approve Accounts Payable for August 14, 2023, August 21, 2023, August 28, 2023, and September 5, 2023.
c. Accept Payroll for August 13, 2023 and August 27, 2023 d. Approve Investment Report dated July 31, 2023
e. Approve Reconciliation of General Ledger to Bank Report Dated April 30, 2023, May 31, 2023, and June 30, 2023
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 Water Rate Increases Effective January 1, 2024 through December 31, 2028
g. Consider Adoption of a Resolution Rejecting All Bids and Authorizing the ReAdvertisement of the Bid for the Oak Avenue and Crystal Springs Road Intersection Improvements Project
7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Adoption of a Resolution:
• Approving the Design of the 202223 Street Rehabilitation Project; • Authorizing the City Manager to Execute a Construction Contract with O’Grady Paving, Inc. for the 202223 Street Rehabilitation Project in the Amount of $5,784,871.65 and Approving a Construction Contingency of $867,730.75; or Authorizing the City Manager to Execute a Construction Contract with Interstate Grading and Paving, Inc. for the 202223 Street Rehabilitation Project in the Amount of $5,306,673.12 and Approving a Construction Contingency of $796,000.97 and;
• Authorizing the City Manager to Execute a Contract for Material Testing Services with Twining, Inc. in an Amount Not to Exceed $80,000;
• Transfer the budget in the amount of $1,190,000 from the 202324 Street Rehabilitation Project to the 202223 Street Rehabilitation Project;
• Determining the Project is Exempt Under the California Environmental Quality Act b. Consider Adoption of a Resolution Approving Amended City Investment Policy c. Introduce, Read by Title Only, and Waive Further Reading of an Ordinance Entitled “An Ordinance of the City Council of San Bruno Amending Section 2.04.110(b) of the San Bruno Municipal Code Establishing Procedures for Selection of Vice Mayor"
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 September 26, 2023 at 7:00 p.m.
POSTING: I declare a copy of this agenda was posted at City Hall, 567 El Camino Real, San Bruno, among other locations in the city limits of San Bruno, on September 8, 2023, by 7:00 p.m.
2 of 168
"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
September 12, 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/83804654714?
pwd=YmxueTZ5MXVUZzNjeitacVh6S3RlUT09
Phone Line: 16465588656
Webinar ID: 838 0465 4714
Webinar Password: 005005
*Teleconference participation is offered in the meeting via Zoom as a courtesy to the public. If no members of the City Council are attending the meeting via teleconference, and a technical error or outage occurs on the teleconference
feed, the City Council will continue the meeting in public in the San Bruno Senior Center.
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. The City Council study session to discuss the Draft Regulations Relating to Paid On and Off Street Parking Areas in the Downtown and El Camino Real Corridor is scheduled for the regular City Council meeting on September 26, 2023 at 7:00 pm
b. The recruitment for part time positions for the San Bruno Recreation and Aquatic Center has begun! There are many great parttime positions available for all levels of experience. These communityoriented jobs have flexible schedules, and a variety of Weekday, Evening, and Weekend shifts available. Please visit the sanbruno.ca.gov/RACjobs for more information.
Apply now to be a part of the San Bruno RAC Team!
c. Issue Proclamation Declaring September 15 October 15, 2023 as Hispanic Heritage Month d. We would like to recognize the outstanding dedication and commitment of four City of San Bruno employees who are commemorating their 25th work anniversaries in the month of September 2023. We commend these employees for their hard work, loyalty, and invaluable contributions to the City. We extend our heartfelt congratulations and sincere thanks to these employees for their dedication: Ted H. Chapman (Public Works), Scott M. Zayac (Public Works), Lt. Gene K. Wong (Police Dept.), and Captain James J. Houlihan III (Fire Dept.).
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 the Draft Special Meeting Minutes for June 7, 2022; June 14, 2022; June 17, 2022; June 28, 2022 (4 pm); June 28, 2022 (5:00 pm); August 3, 2022; August 10, 2022; August 15, 2022; August 16, 2022; August 17, 2022; August 23, 2022; August 24, 2022; August 30, 2022; and August 31, 2022 and Regular Meeting Minutes for June 14, 2022; June 28, 2022; August 23, 2022 and May 23, 2023
b. Approve Accounts Payable for August 14, 2023, August 21, 2023, August 28, 2023, and September 5, 2023.
c. Accept Payroll for August 13, 2023 and August 27, 2023 d. Approve Investment Report dated July 31, 2023
e. Approve Reconciliation of General Ledger to Bank Report Dated April 30, 2023, May 31, 2023, and June 30, 2023
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 Water Rate Increases Effective January 1, 2024 through December 31, 2028
g. Consider Adoption of a Resolution Rejecting All Bids and Authorizing the ReAdvertisement of the Bid for the Oak Avenue and Crystal Springs Road Intersection Improvements Project
7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Adoption of a Resolution:
•Approving the Design of the 202223 Street Rehabilitation Project; • Authorizing the City Manager to Execute a Construction Contract with O’Grady Paving, Inc. for the 202223 Street Rehabilitation Project in the Amount of $5,784,871.65 and Approving a Construction Contingency of $867,730.75; or Authorizing the City Manager to Execute a Construction Contract with Interstate Grading and Paving, Inc. for the 202223 Street Rehabilitation Project in the Amount of $5,306,673.12 and Approving a Construction Contingency of $796,000.97 and;
• Authorizing the City Manager to Execute a Contract for Material Testing Services with Twining, Inc. in an Amount Not to Exceed $80,000;
•Transfer the budget in the amount of $1,190,000 from the 202324 Street Rehabilitation Project to the 202223 Street Rehabilitation Project;
• Determining the Project is Exempt Under the California Environmental Quality Act b. Consider Adoption of a Resolution Approving Amended City Investment Policy c. Introduce, Read by Title Only, and Waive Further Reading of an Ordinance Entitled “An Ordinance of the City Council of San Bruno Amending Section 2.04.110(b) of the San Bruno Municipal Code Establishing Procedures for Selection of Vice Mayor"
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 September 26, 2023 at 7:00 p.m.
POSTING: I declare a copy of this agenda was posted at City Hall, 567 El Camino Real, San Bruno, among other locations in the city limits of San Bruno, on September 8, 2023, by 7:00 p.m. 3 of 168
4 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
June 7, 2022
5:00 p.m.
1. CALL TO ORDER
The meeting was called to order at 5:02 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to speak under Public Comment.
4. CONSENT CALENDAR
a. Adopt Resolution Activating Level 2 of the San Bruno Water Shortage Contingency Plan.
No members of the public wished to speak under Consent Calendar
M/S Hamilton/Salazar to approve the consent calendar. The motion passed unanimously.
5. CONDUCT OF BUSINESS
a. Receive Presentation on the 2022 San Bruno Revenue Measure Feasibility Survey.
City Manager Grogan gave an overview of the item to the City Council.
Consultant Bryan Godbe with Godbe Research presented a portion of the item to the City Council.
Consultant Jared Boigon with Props & Measures also presented a portion of the item to the City Council.
No members of the public wished to speak on this item.
No action was taken or direction given, this item was for discussion only.
6. PUBLIC HEARING
a. Conduct First Public Hearing Regarding Proposed City Charter and Commercial Real Property Transfer Tax.
City Manager Grogan presented the item to the City Council.
Mayor R. Medina opened the public hearing.
No members of the public wished to speak on this item.
M/S Hamilton/M. Medina to close the Public Hearing. The motion passed by a majority vote of Councilmembers Hamilton, M. Medina, Vice Mayor Mason, Mayor R. Medina – voting aye and Councilmember Salazar – voting no
No action was taken this item will be brought back to the City Council at a future date.
5 of 168
City Council – Special Meeting Minutes
June 7, 2022
7. STUDY SESSION
a. Receive Presentation and Provide Direction on Potential November 2022 Ballot Measures Regarding the Elected Mayor System and Enact Term Limits to the Elected Mayor and Council Offices.
City Manager Grogan presented the item to the City Council.
No members of the public wished to speak on this item.
M/S Mason/M. Medina to bring this item back to the City Council at a future date for action with the clarification toto limit service on the City Council to consecutive terms of no more than 12 consecutive years or as Mayor to consecutive terms of no more than 12 consecutive years. Direction was also given to staff to not work any further on the possibility of the Mayor’s seat being changed to an annual rotation and remaining elected. The motion passed by a majority vote of Councilmembers Hamilton, M. Medina and Vice Mayor Mason – voting aye and Councilmember Salazar and Mayor R. Medina – voting no
b. Receive Presentation and Provide Direction on the Possibility of an Infrastructure Bond on November 2022 Ballot.
City Manager Grogan presented the item to the City Council.
M/S Mason/Medina directed staff not to work any further on the possibility of an infrastructure bond on the November 2022 Ballot
8. ADJOURNMENT
The meeting adjourned at 8:11 p.m. The next Regular City Council Meeting will be held on Tuesday, June 14, 2022 at 7:00 p.m.
These City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, and presented to the City Council for approval at the regular meeting of August 22, 2023.
______________________________ ______________________________ Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
6 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO COUNCIL SPECIAL MEETING
June 14, 2022
4:30 PM
1. CALL TO ORDER
The meeting was called to order at 4:30 p.m.
2. ROLL CALL
Councilmembers Hamilton, M. Medina and Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to speak under Public Comment.
4. CLOSED SESSION
a. CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: John JB Doe v. Doe 1, CA Local Public entity, et al. (San Mateo County Court Case No. 20CIV01379)
b. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6 Agency Designated Representatives: City Manager
Employee Organizations: San Bruno Management Employees Association, Mid Management Unit
There was no reportable action taken.
5. ADJOURNMENT – The meeting adjourned at 5:19 p.m. The next Regular City Council Meeting will be held on June 14, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of August 22, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
7 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
June 17, 2022
5:00 p.m.
1. CALL TO ORDER
The meeting was called to order at 5:00 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to speak during Public Comment.
4. CLOSED SESSION
a. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6 Agency Designated Representatives: City Manager
Employee Organizations: San Bruno Management Employees Association, Mid Management Unit
There was no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 6:24 p.m. The next Regular City Council Meeting will be held on June 28, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________ Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
8 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
June 28, 2022
4:00 p.m.
1. CALL TO ORDER
The meeting was called to order at 4:00 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment:
4. CLOSED SESSION
a. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6
Agency Designated Representative: City Manager
Employee Organizations: San Bruno Management Employees Association, Mid- Management Bargaining Unit
There was no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 4:56 p.m. The next regular meeting will be held on June 28, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
9 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
June 28, 2022
5:00 p.m.
1. CALL TO ORDER
The meeting was called to order at 5:00 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment.
4. CONDUCT OF BUSINESS
a. Adopt Resolution Approving the San Bruno Community Foundation FY2022-23 Budget.
Executive Director Hatamiya presented the item to the City Council and answered questions.
No members of the public wished to speak on this item.
M/S Hamilton/Salazar to approve the resolution. Motion carried by a majority vote of, Councilmembers Hamilton, M. Medina, Salazar, Mayor R. Medina – yes Vice Mayor Mason - no
b. Hold Public Hearing and Adopt Resolutions
• Approving FY2022-23 Operating and FY2023-27 Capital Improvement Program Budget • Approving City Appropriations (Gann) Limit for FY2022-23
Finance Director Sun and City Manager Grogan presented the item to the City Council.
Mayor R. Medina opened public hearing
No members of the public wished to speak on this item.
M/S Salazar/M. Medina to close the Public Hearing. The motion passed unanimously.
M/S Salazar/Mason to approve the budgets resolution. The motion passed by a majority vote of Councilmembers Hamilton, Salazar, Vice Mayor Mason and Mayor R. Medina voting – yes and Council Member M. Medina voting - no
M/S Hamilton/Salazar to approve the Appropriations (Gann) Limit resolution, the motion passed unanimously.
5. ADJOURNMENT
The meeting recessed at 6:56 p.m. to the regular City Council meeting of June, 28, 2022 at 7:00 p.m. at the conclusion of that meeting at 9:10 p.m. the City Council reconvened to this Special meeting until its adjournment 9:43 p.m. The next regular City Council meeting will be held on July 12, 2022.
These City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, and submitted for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
10 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 3, 2022
5:00 p.m.
1. CALL TO ORDER
The meeting was called to order at 5:00 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Member of the Public Sandra Perez-Vargas spoke regarding illegal dumping and Florida Park tree replacement.
Member of the Public Joel Toscano representative of Carpenters Local 217 in San Diego spoke about the importance of labor standards language and jobs.
Member of the Public Joel Toscano representative of Carpenters Local 217 in San
4. CONSENT CALENDAR
a. Adopt Resolution Authorizing the Display of the Ukrainian Flag at a Designated City Facility to Express Solidarity With Ukraine.
b. Adopt Resolution Approving Agreement Between the City of San Bruno and the Mid- Management Bargaining Unit and Authorizing Execution by the City Manager.
c. Adopt Resolution Authorizing the City Manager to Enter Into Agreements for the Purchase of Eleven (11) Vehicles With Related Equipment Installation and Customization in an Amount Not =to Exceed $956,000.
No items were pulled for comment or a separate vote.
No Members of the Public wished to speak on any items on the Consent Calendar
M/S Hamilton/Salazar to approve the Consent Calendar. The motion passed unanimously.
5. CONDUCT OF BUSINESS
a. Adopt Resolution Authorizing the City Manager to Amend the FY 2022-23 Stormwater Operating Contractual Services Budget for Stormwater System Spot Repair Services With C2R Engineering in the Amount of $110,000 to Complete Storm Drain and Sinkhole Repairs at 2850 Sneath Lane, Appropriating $110,000 From the General Fund Capital Reserve Fund, Accepting the Storm Drain Easement Deed From the Property Owner, and Directing the Execution and Filing of a Certification of Acceptance.
City Manager Grogan gave an overview of the item to the City Council and introduced Public Works Deputy Director Dennis Bosch
Deputy Director Bosch presented the item to the City Council and answered questions and introduced Streets and Stormwater Manager Ted Chapman to also answer questions.
Streets and Stormwater Manager Chapman answered questions.
Member of the Public Jeremy Sarnecky agreed that this project is a priority.
M/S Hamilton/M. Medina to approve the resolution. The motion passed unanimously.
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b. Consideration of Resolution of the City Council of the City of San Bruno Submitting to the Voters at the November 8, 2022 General Municipal Election a Measure That Proposes a City Charter Be Adopted to Change the City of San Bruno From a General Law City to a Charter City and to Authorize a Real Property Transfer Tax and That Proposes Adoption of an Ordinance Authorizing a Commercial Real Property Transfer Tax, Requesting That Such Election Be Consolidated With the Statewide General Election Held on That Date Making a Determination of Exemption Under CEQA, and Taking Certain Other Actions.
City Manager Grogan gave a background of the item outlining the steps that have been taken so far gave a presentation of the item to the City Council and introduced Interim City Attorney Trisha Ortiz. He also answered questions.
Interim City Attorney Ortiz gave an overview of some of the details of the measure and answered questions.
Member of the Public Jamie Monozon is opposed to the proposed City Charter and Commercial Real Property Transfer Tax.
Member of the Public Audriana Shea is in favor of the proposed Commercial Real Property Transfer Tax
Member of the Public Jeremy Sarnecky is in favor of the proposed Commercial Real Property Transfer Tax
Member of the Public Anne Oliva is opposed to the proposed City Charter and Commercial Real Property Transfer Tax.
Member of the Public Stephen Seymour is in favor of the ordinance being put on the ballot in the November 8, 2022 Election.
Member of the Public Tina Wong is opposed to the Commercial Real Property Transfer Tax.
Member of the Public “Owner” is in favor of the ordinance being put on the ballot in the November 8, 2022 Election.
Member of the Public Fernando Pena Government Affairs Director at the San Mateo County Association of Realtors is opposed to the proposed Commercial Real Property Transfer Tax.
Member of the Public Paul Beaudreau Realtor is opposed to the proposed Commercial Real Property Transfer Tax.
Member of the Public Elaine Robertson is opposed to the proposed City Charter and Real Property Transfer Tax
Member of the Public Sandra Perez-Vargas is in favor of the proposed ordinance being put on the ballot in the November 8, 2022 Election.
Member of the Public Claudia Quinn is in favor of the proposed City Charter and Commercial Real Property Transfer Tax.
Member of the Public Tim is in favor of the proposed Commercial Real Property Transfer Tax.
Member of the Public Reyna is in favor of the proposed ordinance being put on the ballot in the November 8, 2022 Election.
Member of the Public Lee Ginsberg is opposed to the proposed Commercial Real Property Transfer Tax.
Member of the Public Chris Perez is in favor of the proposed ordinance being put on the ballot in the November 8, 2022 Election.
Member of the Public Nestor Icaza is opposed to the proposed Commercial Real Property Transfer Tax.
Member of the Public Rhovy Lyn Antonio California Apartment Association is opposed to the Commercial Real Property Transfer Tax.
Member of the Public Karin Cunningham Realtor is in favor of the proposed ordinance being put on the ballot in the November 8, 2022 Election.
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Member of the Public Mitch Speigle Realtor is opposed to the proposed Commercial Real Property Transfer Tax.
Member of the Public Jeremy Dunck is in favor of the proposed ordinance being put on the ballot in the November 8, 2022 Election.
Member of the Public Andrew Monozon is opposed to the proposed Commercial Real Property Transfer Tax.
M/S Hamilton/Mason to adopt the resolution placing the proposed Charter City and Commercial Real Property Transfer Tax measure the November 8, 2022 Election ballot. The vote was as Follows Councilmembers Hamilton, Medina, Vice Mayor Mason - yes then Councilmember Salazar and Mayor R. Medina – no This item required a 4/5 vote, so therefore it did not pass.
c. Consideration of Resolution of the City Council of the City of San Bruno Submitting to the Voters at the November 8, 2022 General Municipal Election a Measure That Proposes Adoption of an Ordinance to Establish Term Limits, Requesting That Such Election Be Consolidated With the Statewide General Election Held on That Date and Taking Certain Other Actions.
Interim City Attorney Ortiz gave an overview of the item to the City Council.
Member of the Public Sandra Perez-Vargas is in favor of Term Limits
Member of the Public Tim is in favor of Term Limits
Member of the Public Reyna is in favor of Term Limits
Member of the Public Jamie Monozon is in favor of Term Limits
Member of the Public Virginia Yanke is in favor Term Limits
Member of the Public Tina Wong is in favor of reasonable length Term Limits to accomplish goals.
M/S Mason/Hamilton to adopt the resolution placing the proposed Term Limits measure on the on the November 8, 2022 Election ballot. The motion passed unanimously.
d. Consider Resolutions Setting Priorities for Filing Written Arguments for City Measure(s) Approved by the City Council to Be Submitted to the Voter at the General Municipal Election to Be Held on Tuesday, November 8, 2022, and Providing for the Filing of Rebuttal Arguments for City Measure(s).
Interim City Attorney Ortiz presented the item to the City Council.
No members of the public wished to speak on this item.
M/S Hamilton/M. Medina adopting a resolution authorizing Councilmembers Hamilton and M.
Medina to collaborate on the writing and submittal of an Argument in Favor Of for the Term Limits Ballot Measure. The motion passed unanimously.
ADJOURNMENT
Mayor R. Medina adjourned the City Council Meeting in memory of Raquel Gonzalez Vice Mayor of the Town of Colma.
The meeting adjourned at 8:37 p.m. The next regular City Council Meeting will be held on August 23, 2022 at 7:00 p.m.
These City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, and submitted for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
13 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 10, 2022
6:30 p.m.
1. CALL TO ORDER
The meeting was called to order at 6:30 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment:
4. CLOSED SESSION
a. Public Employee Performance Evaluations Pursuant to Government Code Section 54957 Title: City Manager
There was no reportable action taken.
b. Conference with Labor Negtotiators Pursuant to Govt Code Section 54957.6 Agency Designated Representatives: Vice Mayor Linda Mason and Councilmember Marty Medina Unrepresented Employee: City Manager
There was no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 10:15p.m. The next regular meeting will be held on August 23, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
14 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 15, 2022
6:00 p.m.
1. CALL TO ORDER
The meeting was called to order at 6:00 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment:
4. CLOSED SESSION
a. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6
Agency Designated Representative: City Manager, Dania Torres Wong and Geoffrey Rothman
Employee Organizations: San Bruno Management Employees Association
There was no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 6:37 p.m. The next regular meeting will be held on August 23, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
15 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 16, 2022
4:30 p.m.
1. CALL TO ORDER
The meeting was called to order at 4:30 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment:
4. CLOSED SESSION
a. Conference with Legal Counsel – Anticipated Litigation Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(2) – One Case
There was no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 5:20 p.m. The next regular meeting will be held on August 23, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
16 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 17, 2022
6:30 p.m.
1. CALL TO ORDER
The meeting was called to order at 6:30 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment:
4. CLOSED SESSION
a. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6
Unrepresented Employee: City Manager
Agency Designated Representatives: Vice Mayor Linda Mason and Councilmember Marty Medina
There was no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 8:10 p.m. The next regular meeting will be held on August 23, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
17 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 23, 2022
5:00 p.m.
1. CALL TO ORDER
The meeting was called to order at 5:00 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment:
4. CLOSED SESSION
a. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6
Agency Designated Representative: City Manager, Dania Torres Wong and Geoffrey Rothman
Employee Organizations: San Bruno Management Employees Association
There was no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 7:56 p.m. The next regular meeting will be held on August 23, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
18 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 24, 2022
6:30 p.m.
1. CALL TO ORDER
The meeting was called to order at 6:30 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment:
4. CLOSED SESSION
a. Conference with Labor Negotiators Pursuant to Government Code Section 54957.6
Agency Designated Representative: Vice Mayor Linda Mason and Councilmember Marty Medina
Unrepresented Employee: City Manager
There was no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 7:46 p.m. The next regular meeting will be held on September 13, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
19 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 30, 2022
4:30 p.m.
1. CALL TO ORDER
The meeting was called to order at 4:30 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Member of the Public Bob B. spoke during Public Comment.
4. STUDY SESSION
a. Discuss and Review Draft City Council Policies and Procedures.
This Study Session was for discussion only, therefore no reportable action taken.
5. ADJOURNMENT
The meeting adjourned at 6:31 p.m. The next regular meeting will be held on September 13, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
20 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL SPECIAL MEETING
August 31, 2022
5:30 p.m.
1. CALL TO ORDER
The meeting was called to order at 5:30 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No one wished to address the City Council during Public Comment:
4. CLOSED SESSION
a. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8 Property: 618 San Mateo Avenue APN: 020-131-240
Agency Negotiator: City Manager
Negotiating Parties: City of San Bruno and Artichoke Joe’s Under Negotiation: Price and Terms of Payment
There was no reportable action taken.
b. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8 Property: 201 Balboa Way APN: 020-351-430
Agency Negotiator: City Manager
Negotiating Parties: City of San Bruno and San Bruno Park School District Under Negotiation: Price and Terms of Payment
There was not reportable action taken
5. ADJOURNMENT
The meeting adjourned at 7:56 p.m. The next regular meeting will be held on September 13, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________
Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
21 of 168
Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL
June 14, 2022
7:00 PM
1. CALL TO ORDER
The meeting was called to order at 7:00 p.m.
2. ROLL CALL
Councilmembers Hamilton, M. Medina, Salazar, Vice Mayor Mason and Mayor R.
Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to speak under Public Comment.
4. ANNOUNCEMENTS/PRESENTATIONS
a. Receive Update from Recology San Bruno on the Success of the Spring 2022 Community CleanUp (DropOff) Event.
Kirsten Pinochi General Manager of Recology San Bruno gave an overview of the event.
b. Receive Presentation on 4th of July Fireworks Public Safety Operations Plans.
Police Chief Johansen and Fire Chief Delay each presented their department’s Safety Operation Plan and showed their Public Service Announcements.
c. San Bruno Recreation and Aquatics Center Update and Set Public Hearing for June 28th, 2022 to Consider Adopting Resolution Authorizing the City Manager to Enter into a Power Purchase Agreement with Peninsula Clean Energy to Deploy a Solar Photovoltaic System on the San Bruno Recreation and Aquatics Center Should the City Manager Determine Adequate Cost Efficiency or Other Community Benefits Associated with the Agreement.
Rod Macaraeg, Project Manager and Public Works Director Lee each presented a project update to the City Council and answered questions.
M/S M. Medina/Hamilton to set a Public Hearing for June 28, 2022. The motion passed unanimously.
d. Receive Proclamation Declaring June 1925 as National Mosquito Control Awareness Week.
e. The Mayor added the announcement that this coming Saturday, June 18th the Friends of the Library will hold a book sale in the courtyard between the Library and City Hall and that all proceeds will go to the Library.
No members of the public wished to speak under the Announcements & Presentations section.
5. CONSENT CALENDAR
a. Approve Investment Report and Reconciliation of General Ledger to Bank Report Dated April 30, 2022.
b. Approve Accounts Payable for May 23, 2022, May 31, 2022, and June 6, 2022.
c. Accept Payroll for May 22, 2022.
d. Receive Written Update on the City’s Response Efforts to COVID19.
e. Authorize Fireworks Stand Permits for 2022 Upon Finding that the NonProfit Organizations Meet Requirements of Resolutions 200867, 200946 and Ordinance Nos. 1700 and 1840.
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f. Adopt Resolution Declaring the Continued State of Local Emergency and Need for the City Council and Other Legislative Bodies Subject to the Ralph M. Brown Act to Continue to Teleconference in Order to Ensure the Health and Safety of the Public Pursuant to AB 361.
g. Adopt Resolution Authorizing the City Manager to Execute a Memorandum of Understanding with San Mateo County Transportation Authority, Peninsula Corridor Joint Powers Board, and City of South San Francisco for the Preliminary Engineering/Environmental Review Phase of the South Linden Avenue and Scott Street Grade Separation Project, with Commitment of Local Match of up to $163,350.
h. Adopt Resolution Adopting a List of Projects for Fiscal Year 202223 Funded by SB1: The Road Repair and Accountability Act of 2017.
i. Adopt Resolution to Provide for the Conduct of a November 8, 2022, General Municipal Election for Officers: 1) Calling and Giving Notice of Holding a General Municipal Election to be held on Tuesday, November 8, 2022, for the Election of Certain Officers as Required by the Provisions of Laws of the State of California Relating to General Law Cities; 2) Requesting Election Consolidation with the Statewide General Election to be held on Tuesday, November 8, 2022; 3) Contracting with the San Mateo County Chief Elections Officer and AssessorCounty ClerkRecorder for Elections Services; and 4) Providing for Notice of Election.
j. Adopt Resolution Approving Agreement between the City of San Bruno and the Public Safety MidManagement Bargaining Unit and Authorizing Execution by the City Manager.
k. Waive Second Reading and Adopt an Ordinance Amending Chapter 10.16 (Water Conservation) of the San Bruno Municipal Code.
Councilmember M. Medina pulled Item 5.j. for comment. He acknowledged and thanked everyone for their efforts in securing the fouryear labor agreement.
Mayor R. Medina pulled Item 5.g. for comment. He appreciates the San Mateo County Transportation Authority Peninsula Corridor Joint Powers Board and the City of South San Francisco for the fund matching they have committed to on the Scott Street Grade Separation Project.
No members of the public wished to speak on any items on the Consent Calendar.
M/S Hamilton/Salazar to approve the Consent Calendar. The motion passed unanimously.
6. STUDY SESSION
a. Receive the City Manager’s Proposed Budget for Fiscal Year 202223 and Staff Presentations on Capital Improve Program (Budget Study Session 2)
City Manager Grogan gave an overview of the City Council’s questions from the Budget Study Session held on May 31, 2022.
Police Chief Johansen gave the City Council a presentation to address questions raised at the May 31st Study Session regarding Police Department staffing and answered further questions.
City Manager Grogan presented the Capital Improvement Program Budget to the City Council.
Finance Director Sun presented the Capital Improvement Program Budget Funding Summary to the City Council and answered questions.
Public Works Director Lee highlighted the various phases of the specific projects in the Capital Improvement Program and gave the City Council the status on their progress.
The City Council Recessed at 8:45 p.m. and reconvened at 8:55 p.m.
Public Works Director Lee continued with his presentation then introduced CityNet Services Director Krishnamurthy.
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Director Krishnamurthy outlined CityNet Services and the Information Technology (IT) Department’s Capital Improvement Program projects and answered questions.
City Manager Grogan presented the Capital Improvement Program projects for the Parks Department in the absence of Community Services Director Mottola, and answered questions.
Fire Chief Delay presented the Fire Department’s Capital Improvement Program projects to the City Council and answered questions.
Police Chief Johansen presented the Police Department’s Capital Improvement Program projects to the City Council and answered questions.
Finance Director Sun presented the Equipment and Vehicle Requests portion of the Capital Improvement Program Budget and also the Debt Management portion and answered questions.
City Manager Grogan answered more questions.
No members of the public wished to speak on this item.
7. COMMENTS FROM COUNCIL MEMBERS
Councilmember Hamilton:
• Thanked staff for all the hard work planning, setting up, managing and taking down the CommUnity Day and praised what a great event it was.
• He also attended the Juneteenth celebration in City Park last weekend and appreciated how well done, enjoyable and educational it was.
• He commented on how happy he was to be at the dedication of Greenberg Field it was re opened after the hard the San Bruno Junior Giants and the San Francisco Giants Community Foundation put in to rehabilitate it.
Vice Mayor Mason:
• Echoed Councilmember Hamilton’s comments on the CommUnity Day and Juneteenth events and congratulated San Bruno resident and artist Stephen Seymour on being asked by the San Mateo County Fair Commission to coordinate the fair’s art exhibits.
Councilmember M. Medina:
• Repeated thanks and praised to all those involved in the wonderful events San Bruno has been involved in saying we have much to be proud of.
• Tips his ha pee wee baseball team for winning the championship thanked staff for all their hard work on the budget
Mayor R. Medina:
• Attended the opening and ribbon cutting ceremony for the new Millbrae Recreation Center.
• He also attended an Eagle Schout Honor Court event.
• He was proud to be at the Capuchino High School Class of 2022 Graduation Ceremony.
• In support of our Police and Fire Departments he also attended a ceremony in Foster City honoring Public Safety Agencies in San Mateo County.
8. ADJOURNMENT
The regular meeting adjourned at 9:16 p.m. and the City Council reconvened to its earlier Closed Session which had been recessed since 6:55 p.m. The Closed Session Adjourned at 10:22 p.m.
The next Regular City Council Meeting will be held on June 28, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________ Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
24 of 168
Rico E. Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL
June 28, 2022
7:00 p.m.
1. CALL TO ORDER
The meeting was called to order at 7:01 p.m.
2. ROLL CALL
Councilmembers Hamilton, Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
The following members of the public addressed the Council during Public Comment.
Member of the public Paul Wapensky spoke about the CED Manager proposed vacant recruitment position
Member of the public Gabe Holbert with the “Why Green?” Energy Fund, they finance Green Energy Companies in the state.
4. ANNOUNCEMENTS/PRESENTATIONS
a. During the upcoming 4th of July holiday season, please remember to be safe and respectful of neighbors. If you use or possess illegal fireworks OR improperly use Safe & Sane fireworks in San Bruno, you will be fined $1,000.
5. CONSENT CALENDAR
a. Approve Accounts Payable for June 13, 2022 and June 20, 2022.
b. Accept Payroll for June 5, 2022.
c. Receive Written Update on the City’s Response Efforts to COVID19.
d. Adopt Resolution Approving Agreement Between the City of San Bruno and the Miscellaneous Bargaining Unit and Authorizing Execution by the City Manager.
Item d - Councilmember M. Medina pulled this item for comment, he is very glad and thanked those involved for their hard work to reach an agreement for a foury ear contract between the
City and the Miscellaneous Bargaining Unit.
No members of the public wished to speak under the Consent Calendar.
M/S Hamilton/Salazar to approve the Consent Calendar. The motion passed unanimously.
7. STUDY SESSION
a. Conduct a Study Session Regarding Proposed City Charter and Commercial Real Property Transfer Tax.
City Manager Grogan addressed questions that were posed at the last meeting gave a background and discussed the timeline of this item to the City Council.
Interim City Attorney Ortiz also presented a portion of this item to the City Council.
Member of the public Paul Wapensky spoke about the proposed City Charter item.
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Member of the public Bruce Ermann spoke about the proposed City Charter item.
There was no action taken on this item, it was for discussion only. This item will be brought back to the City Council at a future meeting.
8. PUBLIC HEARINGS
a. Hold Public Hearing and Take the Following Actions to Approve the Glenview Terrace Residential Subdivision Project:
• Adopt a Resolution Approving the Initial Study/Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program, Pursuant to CEQA Guidelines §15074; and • Adopt a Resolution Amending the General Plan Land Use Designation for APN: 019042170 From Low Density Residential to Medium Density Residential; and
• Introduce, Read by Title Only, and Waive Further Reading of an Ordinance Amending the Zoning Ordinance to Rezone APN: 019042170 From LowDensity Residential (R1) to Planned Development (PD). And Amend an Existing PD District for APNs: 019042150 and 019042160 to Conform to the Proposed Project, and Approve a Development Plan, Pursuant to Sections 12.96.020 and 12.96.190.K and Chapter 12.136 of the San Bruno Municipal Code; and
• Adopt a Resolution Approving a Vesting Tentative Tract Map; and
• Adopt a Resolution Approving a Planned Development Permit and an Architectural Review Permit to Allow the Construction of 29 Singlefamily Homes at the Corner of San Bruno and Glenview Drive, Pursuant to Sections 12.96.190 and 12.108.010 of the San Bruno Municipal Code; and Pursuant to Chapter 12.38 of the San Bruno Municipal Code; and
• Adopt a Resolution Approving an Affordable Housing Plan, Pursuant to Chapter 12.230 of the San Bruno Municipal Code; and
• Adopt a Resolution Authorizing a New Fourway Stop at the Intersection of San Bruno Ave. W and Glenview Drive; and
• Introduce, Read by Title Only, and Waive Further Reading of an Ordinance Approving a Development Agreement Pursuant to City Resolution 198677.
Community & Economic Development Director Wu gave a brief overview of the project and introduced Senior Planner and project planner Micheal Smith. She also answered questions during the presentation.
Senior Planner Smith presented the item to the City Council and answered questions.
Interim City Attorney for this project Snow answered questions.
City Manager Grogan also answered questions.
Mayor R. Medina opened the Public Hearing.
Member of the public Antionette McGill spoke in support of the project.
Member of the public Sergio Giannoni spoke in support of the project.
Member of the public Wayne Ho spoke in support of the project.
Member of the public Mark Ederlin spoke in support of the project.
Member of the public John Oei spoke in support of the project.
Member of the public Bruce Ermann is concerned about traffic in that area and requests that another stop sign study be done after the projects completion.
Member of the public Mr. Patel is in support of the project.
Interim City Attorney Ortiz answered questions.
M/S Hamilton/M. Medina to close the Public Hearing. The motion passed unanimously.
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Community & Economic Development Director Wu pointed out that a correction needs to be made, currently the Affordable Housing Plan for the project states that there are five affordable housing units in the project when in fact there are only four units. The plan will be amended to show the correct number and the action taken tonight will include this amendment.
M/S Hamilton/M. Medina to adopt the item’s resolutions including the amendment made to the Affordable Housing Resolution and introduce the item’s two ordinances. The motion passed unanimously.
b. Adopt Resolution Authorizing the City Manager to Enter into a Power Purchase Agreement with Peninsula Clean Energy to Deploy a Solar Photovoltaic System on the San Bruno Recreation and Aquatics Center Should the City Manager Determine Adequate Cost Efficiency Efficiency or Other Community Benefits Associated with the Agreement.
Public Works Director Lee gave a brief overview of the item to the City Council.
No members of the public wished to speak on this item.
M/S M. Medina/Hamilton to adopt the resolution. The motion passed unanimously.
9. COMMENTS FROM COUNCILMEMBERS
Mayor R. Medina:
Was very pleased to announced that the San Mateo County Board of Supervisors passed an item that will award Measure K funds in the amount of $227,564 to LifeMoves for one year of funding for two fulltime Homeless Outreach Team (HOT) Case Managers. He appreciates and thanks Supervisor Dave Pine for bringing this item forward.
He attended a Council of Cities Meeting in East Palo Also at the Boys and Girls Club was very impressed and inspired by how the club has expanded it’s scope and operation.
Councilmember M. Medina:
He announced that the Dale Wilson Baseball Tournament coming up in City Park. He is very pleased to report that the number of youths enrolled in baseball has increased.
He also encouraged everyone to get the COVID vaccine and mentioned that if you do still get it your symptoms will likely be much less severe and faster recovery than if you are not vaccinated.
Vice Mayor Mason:
5 Attended a workshop hosted by Kaiser about the fentanyl and opioid crisis that is happening in our country and they stressed that awareness at a young age is key and that there are resources available to provide outreach and education.
Councilmember Hamilton:
Announced the passing of local artist Ruth Waters, her contributions to the arts and our community cannot be measured. There is an exhibit in her honor at the AZ Gallery in Tanforan.
8. ADJOURNMENT
The Meeting adjourned at 9:10 p.m. the City Council reconvened its Closed Session, which had been recessed since 6:56 p.m. The Closed Session adjourned at 9:43 p.m.
The next Regular City Council Meeting will be held on July 12, 2022 at 7:00 p.m.
These City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, and submitted for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________ Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
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Rico Medina, Mayor
Linda Mason, Vice Mayor
Tom Hamilton, Councilmember
Marty Medina, Councilmember
Michael Salazar, Councilmember
“The City with a Heart”
MINUTES
SAN BRUNO CITY COUNCIL
August 23, 2022
7:00 PM
1. CALL TO ORDER
Due to technical difficulties, the meeting was called to order at 7:25 p.m.
2. ROLL CALL
Councilmembers Hamilton, M. Medina, Salazar, Vice Mayor Mason and Mayor R. Medina were all present.
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Member of the Public Virginia Yanke tanked the Senior Center Staff and volunteers for all the hard work they put in, San Bruno really is “The City with a Heart”.
Member of the Public Alicia is opposed to cannabis dispensaries and would like them to be put on the ballot for the voters to decide if they should be allowed in San Bruno.
Member of the Public Anna Villalobos is opposed to cannabis dispensaries and would like them to be put on the ballot for the voters to decide if they should be allowed in San Bruno.
Member of the Public Paul Wapensky wants Caltrans to fix the terrible roadway when you come off I-380 onto El Camino Real and is opposed to cannabis dispensaries in San Bruno.
Member of the Public Jeremy paid respect to those affected by the gas pipeline explosion and fire, is opposed to a Commercial Real Property Transfer Tax and cannabis dispensaries.
Member of the Public Alex Melendrez is concerned about the development projects that are not moving forward and looks forward to the implementation of the Housing Element.
Member of the Public Bruce Ehrmann spoke about the Mills Park Development project and of the parts of the Development Agreement.
4. ANNOUNCEMENTS/PRESENTATIONS
a. September 9, 2022 marks 12 years since the natural gas pipeline explosion and fire in the Crestmoor Neighborhood. We will never forget the lives that were lost and residents that were affected by that evening. Our community’s resiliency continues to this day. We will never forget. To learn more about this moment in our City’s history, visit www.sanbruno.ca.gov/TenYearsLater
No members of the public wished to speak under the Announcements & Presentations section.
5. CONSENT CALENDAR
a. Approve the Draft Special and Regular Meeting Minutes for the Meetings of May 24, 2022.
b. Approve Accounts Payable for July 25, 2022, August 1, 2022, and August 10, 2022.
c. Accept Payroll for July 17, 2022 and July 31, 2022.
d. Approve Investment Report Dated June 30, 2022.
e. Receive Written Update on the City’s Response Efforts to COVID-19.
f. Adopt Resolution Declaring the Continued State of Local Emergency and Need for the City council and Other Legislative Bodies Subject to the Ralph M. Brown Act to Continue to Teleconference in Order to Ensure the Health and Safety of the Public Pursuant to AB 361.
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g. Adopt Resolution Authorizing the City Manager to Execute a Joint Use Agreement With the San Bruno Park School District.
h. Adopt Resolutions (1) Approving the Final Map and Subdivision Improvement Agreement for Phase 1 of the Bayhill Specific Plan Project and (2) Vacating a Roadway Easement and Reserving a Public Utility Easement for a Portion of Grundy Lane to the Property at 1250 Grundy Lane (Police Credit Union Parcel)
i. Adopt Resolution Approving CostofLiving Adjustments (COLAs) for Unrepresented Classifications and Authorizing Execution by the City Manager.
j. Appoint Councilmember Tom Hamilton as the Voting Delegate, and Mayor Rico E. Medina as the Alternate Delegate, to Represent the City of San Bruno at the Annual Business Meeting of the 2022 League of California Cities Annual Conference in Long Beach, CA on September 9, 2022.
Vice Mayor Mason pulled Items 6. b. & c. to comment that if the City isn’t being reimbursed by the County to use Lidias Deli to supply lunch to the Senior Center Lunch Program, she would like to see a local vendor being used.
Also Item 6.g. to thank City staff and San Bruno Park School District Trustees who worked hard on the Joint Use Agreement.
Mayor R. Medina pulled Item 6.j. to thank Councilmember Hamilton for offering to be the Voting Delegate at the League of California Cities Annual Conference.
No members of the public wished to speak on any items on the Consent Calendar.
M/S Salazar/Hamilton to approve the Consent Calendar. The motion passed unanimously.
6. STUDY SESSION
a. Receive the City Manager’s Proposed Budget for Fiscal Year 2022-23 and Staff Presentations on Capital Improve Program (Budget Study Session 2)
City Manager Grogan gave an overview of the City Council’s questions from the Budget Study Session held on May 31, 2022.
Police Chief Johansen gave the City Council a presentation to address questions raised at the May 31st Study Session regarding Police Department staffing and answered further questions.
City Manager Grogan presented the Capital Improvement Program Budget to the City Council.
Finance Director Sun presented the Capital Improvement Program Budget Funding Summary to the City Council and answered questions.
Public Works Director Lee highlighted the various phases of the specific projects in the Capital Improvement Program and gave the City Council the status on their progress.
The City Council Recessed at 8:45 p.m. and reconvened at 8:55 p.m.
Public Works Director Lee continued with his presentation then introduced CityNet Services Director Krishnamurthy.
Director Krishnamurthy outlined CityNet Services and the Information Technology (IT) Department’s Capital Improvement Program projects and answered questions.
City Manager Grogan presented the Capital Improvement Program projects for the Parks Department in the absence of Community Services Director Mottola and answered questions.
Fire Chief Delay presented the Fire Department’s Capital Improvement Program projects to the City Council and answered questions.
Police Chief Johansen presented the Police Department’s Capital Improvement Program projects to the City Council and answered questions.
Finance Director Sun presented the Equipment and Vehicle Requests portion of the Capital Improvement Program Budget and also the Debt Management portion and answered questions.
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No members of the public wished to speak on this item.
7. COMMENTS FROM COUNCIL MEMBERS
Councilmember Hamilton:
• Thanked Staff for all the hard work planning, setting up, managing and taking down the CommUnity Day and praised what a great event it was.
• He also attended the Juneteenth celebration in City Park last weekend and appreciated how well done, enjoyable and educational it was.
• He commented on how happy he was to be at the dedication of Greenberg Field it was re- opened after the hard the San Bruno Junior Giants and the San Francisco Giants Community Foundation put in to rehabilitate it.
Vice Mayor Mason:
• Echoed Councilmember Hamilton’s comments on the CommUnity Day and Juneteenth events and congratulated San Bruno resident and artist Stephen Seymour on being asked by the San Mateo County Fair Commission to coordinate the fair’s art exhibits.
Councilmember M. Medina:
• Repeated thanks and praised to all those involved in the wonderful events San Bruno has been involved in saying we have much to be proud of.
• Tips his ha pee wee baseball team for winning the championship thanked staff for all their hard work on the budget
Mayor R. Medina:
• Attended the opening and ribbon cutting ceremony for the new Millbrae Recreation Center.
• He also attended an Eagle Schout Honor Court event.
• He was proud to be at the Capuchino High School Class of 2022 Graduation Ceremony.
• In support of our Police and Fire Departments he also attended a ceremony in Foster City honoring Public Safety Agencies in San Mateo County.
8. ADJOURNMENT
The regular meeting adjourned at 9:16 p.m. and the City Council reconvened to its earlier Closed Session which had been recessed since 6:55 p.m. The Closed Session Adjourned at 10:22 p.m.
The next Regular City Council Meeting will be held on June 28, 2022 at 7:00 p.m.
The City Council meeting minutes were prepared by Vicky Hasha, Deputy City Clerk, for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________ Vicky S. Hasha, Rico E. Medina
Deputy City Clerk Mayor
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"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
MINUTES
SAN BRUNO CITY COUNCIL REGULAR MEETING
May 23, 2023
7:00 PM
1. CALL TO ORDER
The meeting was called to order at 7:00 pm
2. ROLL CALL
Councilmembers Alvarez, M. Medina, Salazar, Vice Mayor Hamilton and Mayor R.
Medina were all present
3. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to speak under Public Comment
4. ANNOUNCEMENTS/PRESENTATIONS
a. On June 1, 2023 at 8:30 A.M., the City of San Bruno Will Raise the Progress Pride Flag in Celebration of Pride Month. Members of the Public Are Welcome to Join to Observe as the Ceremonial Flag Is Raised.
b. San Bruno Lions Club Will Hold the 81st Annual Posy Parade on Sunday June 4, 2023! The Floral Parade for Children Will Start at 11:00 AM on Linden Avenue Near San Bruno City Hall and Will Travel South to Crystal Springs Road and up Crystal Springs Road to San Bruno City Park. If You’re in the Area, Wave as the Parade Moves Along and Show Your Support of the Community’s Little Ones!
c. 82nd Annual Memorial Day Observance is Scheduled for May 29, 2023 at 11:00 A.M. at Golden Gate National Cemetery, 1300 Sneath Lane (Veterans Way) d. Issue Proclamation Declaring May 21–27, 2023 as National Public Works Week Public Works Director Matthew Lee accepted Proclamation e. Presentation Update on Code Enforcement Activities
Police Chief Ryan Johansen presented item to the City Council. Police Chief Ryan Johansen and Code Enforcement Officer Robert Harrison answered questions.
Member of the public Arleen Gonzales – submitted written comment via email involving food vendor trucks.
5. CONSENT CALENDAR
a. Approve the Draft Special Meeting Minutes for the Meetings of May 9, 2023 and May 17, 2023 and Draft Regular Meeting Minutes for the Meeting of May 9, 2023 b. Approve Accounts Payable for May 8, 2023 and May 15, 2023
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c. Accept Payroll for May 7, 2023
d. Approve Reconciliation of General Ledger to Bank Report Dated March 31, 2023 e. Consider Adoption of a Resolution Approving Chief Financial Officer Job Title/Job Classification and Proposed Annual Pay Schedule of $187,365 - $234,264 f. Consider Resolutions Appropriating $42,498 in REAP Grant Funding for the 2023- 2031 Housing Element Update, and Authorizing the City Manager to Execute Contract Amendments With David J. Powers & Associates, Inc. for $8,711.76 and Good City Co. for $33,786.24 to Complete the 2023 – 2031 Housing Element Update Project g. Consider Adoption of a Resolution:
• Rescinding the Water Shortage Emergency Declaration Adopted on June 7, 2022 • Deactivating Level 2 and Activating Level 1 of the San Bruno Water Shortage Contingency Plan; and
• Directing Staff to Continue Implementing Water Use Restrictions Consistent With the Requirements of Title 23, Sections 995 and 996 of the California Code of Regulations for the Duration of the Emergency Regulation h. Consider Adoption of a Resolution Approving Publicly Available Pay Schedule Pursuant to the Public Employees' Retirement Law (PERL), Public Employees' Pension Reform Act of 2013 (PEPRA), and Title 2 of the California Code of Regulations (CCR)
i. Consider Adoption of a Resolution Authorizing the City Manager to Execute a Memorandum of Understanding and License Agreement With the City and County of San Francisco for the Huntington Avenue Bicycle and Pedestrian Improvement Project and Finding the Action is Exempt From CEQA
j. Consider Adoption of a Resolution:
• Finding Emergency Repairs Are Needed and Authorizing the City Manager to Execute a Contract With Bothman Construction in the Amount of $293,000 to Complete Diamond 3 Repairs at City Park;
• Appropriating Funds in the Amount of $293,000 From the General Fund Capital Reserve Fund; and,
• Approving a Construction Contingency of $58,600
• Approving a Total Project Budget in the Amount Not to Exceed $351,600 • Determining the Project is Exempt Under the California Environmental Quality Act Item e – Councilmember Salazar pulled item for a separate vote.
City Manager Alex D. McIntyre answered questions.
There were no speakers during public comment.
M/S Hamilton/M. Medina to approve Item e. The motion passed with a majority vote of Councilmember M. Medina, Vice Mayor Hamilton, and Mayor R. Medina voting yes and Councilmembers Alvarez and Salazar voting no.
Item j – Councilmember M. Medina, Councilmember Salazar and Mayor R.
Medina asked questions on the item. City Manager Alex D. McIntyre answered questions.
There were no speakers during public comment.
M/S Hamilton/Salazar to approve the Consent Calendar a-j, excluding Item e. Motion carried unanimously by roll call vote.
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6. CONDUCT OF BUSINESS
a. Consider Adoption of a Resolution Accepting the City’s Annual Comprehensive Financial Report, the Measure A and W Fund Reports, and the Single Audit Report of Federal Awards for the Fiscal Year Ended June 30, 2022 Interim Finance Director Bobby Magee introduced the item and Ahmed Badawi, CPA of Badawi & Associates presented the item to the City Council.
No members of the public wished to speak on this item.
M/S Hamilton/Salazar to approve the resolution. The motion passed unanimously. b. Receive Annual Military Equipment Use Report, Review the Military Equipment Use Ordinance, and Adopt a Resolution Renewing the Military Equipment Use Ordinance Number 2022-1910
Police Chief Ryan Johansen presented the item to the City Council.
No members of the public wished to speak on this item.
M/S Salazar/Alvarez to approve the resolution. The motion passed unanimously.
7. COUNCIL COMMITTEE REPORT OUT
Councilmember M. Medina
Peninsula Clean Energy (PCE): Community controlled non-profit joint powers agency formed in 2016. PCR provides clean energy at lower prices at least 5% than PG&E and invest proceeds back into the community. Attended Cal CCA conference and attended workshops.
Vice Mayor Hamilton
Bay Area Water Supply and Conservation Agency (BAWSCA): Attended meeting on May 18 and unanimously approved BAWSCA’s 2023-24 workplan; contracts for legal engineering finance strategy and water conservation services, supporting the scoping of BAWSCA’s long term reliable water supply strategy through 2045; and increase in funding for legal counsel.
Mayor R. Medina
Advanced Light Management (ALS): Attended May 10th meeting, reviewed staffing needs and response times for emergencies to meet the required 6.59 minutes/seconds into each situation.
May 17th regular board meeting approved budget and allocations required of each jurisdiction to be in JPA.
May 18th finance committee for Emergency Services Council looking for new director to replace Interim Director Don Mattei who is leaving in September.
8. COMMENTS FROM COUNCIL MEMBERS
Vice Mayor Hamilton
Monthly American Legion Pancake Breakfast this Saturday at American Legion Hall on San Mateo Avenue at 9 am. Can also volunteer to help cook.
Councilmember M. Medina
Grocery Distribution to 250 families at Belle Air Elementary School, 450 Third Avenue
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tomorrow from 2-4 pm. In need of volunteers, if interested in volunteering, please be at Belle Air Elementary School by 1:45 pm
Congratulations to Capuchino Varsity girls softball team for making the playoffs and Capuchino Varsity baseball team moving forward on CCS
Mayor R. Medina
May 11th: students started asking questions and one young lady who lives near Grundy Park asked about the slide and when was it going to be repaired. I went back the next day to the classroom to say I have reported it as I promised.
May 12th: A senior in college doing her college paper on the September 9th PGE pipeline explosion asked if I would be interviewed. We met at Glenview Earl Park and I asked several of the residents if they would come out so that she could interview them. It was a great opportunity and the residents appreciated sharing and continuing to remember.
Contacted Caltrain about lighting underneath the overpass at the train station being out and they are working on bringing back the lights.
Congratulations to the classes of 2023 and best wishes on their new embarkment.
9. ADJOURNMENT
This meeting adjourned in honor of Ruth Pallas at 8:50 pm to the next Regular City Council Meeting on June 13, 2023 at 7:00 P.M.
These City Council meeting minutes were prepared by Lupita Huerta, City Clerk, and presented to the City Council for approval at the regular meeting of September 12, 2023.
______________________________ ______________________________ Lupita Huerta
City Clerk
Rico E. Medina
Mayor
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City Council Agenda Item
Staff Report
CITY OF SAN BRUNO
DATE: September 12, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Anh Tran, Management Analyst II
SUBJECT: Payroll Acceptance
City Council acceptance of the City payroll distributed August 18, 2023 is recommended. The Labor Summary report reflecting the total payroll amount of $1,987,195.60 for bi-weekly pay period ending August 13, 2023 by fund is shown below:
Fund Amount
Fund: 001 - GENERAL FUND 1,483,776.29
Fund: 006 - AMERICAN RESCUE PLAN ACT 54,255.81
Fund: 121 - FEDERAL/STATE GRANTS 13,325.69
Fund: 122 - SOLID WASTE/RECYCLE 2,694.51
Fund: 132 - AGENCY ON AGING 327.26
Fund: 133 - RESTRICTED REVENUES 536.88
Fund: 137 - DEVELOPER PROJECT CONTRIBUTIONS 9,593.81
Fund: 201 - PARKS AND FACILITIES CAPITAL 116.89
Fund: 203 - STREET IMPROVE. PROJECTS 15,551.21
Fund: 207 - TECHNOLOGY CAPITAL 1,866.65
Fund: 611 - WATER FUND 107,222.76
Fund: 621 - STORMWATER FUND 31,400.00
Fund: 631 - WASTEWATER FUND 91,762.95
Fund: 641 - CITYNET SERVICES FUND 93,914.76
Fund: 701 - CENTRAL GARAGE 15,394.69
Fund: 702 - FACILITY MAINT.FUND 42,438.29
Fund: 707 - TECHNOLOGY DEVELOPMENT 18,973.76
Fund: 711 - SELF INSURANCE 4,043.39
Total: 1,987,195.60
_________________________________
Darcy Smith, Interim CFO Date DocuSign Envelope ID: D47A7284-D3AF-4C64-9AF1-03DBED6AB0E8 8/24/2023
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City Council Agenda Item
Staff Report
CITY OF SAN BRUNO
DATE: September 12, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Anh Tran, Management Analyst II
SUBJECT: Payroll Acceptance
City Council acceptance of the City payroll distributed September 1, 2023 is recommended. The Labor Summary report reflecting the total payroll amount of $1,912,544.60 for bi-weekly pay period ending August 27, 2023 by fund is shown below:
Fund Amount
Fund: 001 - GENERAL FUND 1,414,977.16
Fund: 006 - AMERICAN RESCUE PLAN ACT 49,819.81
Fund: 121 - FEDERAL/STATE GRANTS 1,593.15
Fund: 122 - SOLID WASTE/RECYCLE 2,700.38
Fund: 132 - AGENCY ON AGING 920.41
Fund: 133 - RESTRICTED REVENUES 577.55
Fund: 137 - DEVELOPER PROJECT CONTRIBUTIONS 12,205.08
Fund: 201 - PARKS AND FACILITIES CAPITAL 67.30
Fund: 203 - STREET IMPROVE. PROJECTS 16,595.15
Fund: 207 - TECHNOLOGY CAPITAL 1,207.83
Fund: 611 - WATER FUND 111,811.50
Fund: 621 - STORMWATER FUND 31,151.35
Fund: 631 - WASTEWATER FUND 94,729.47
Fund: 641 - CITYNET SERVICES FUND 93,115.46
Fund: 701 - CENTRAL GARAGE 15,996.65
Fund: 702 - FACILITY MAINT.FUND 41,373.13
Fund: 707 - TECHNOLOGY DEVELOPMENT 19,650.17
Fund: 711 - SELF INSURANCE 4,053.05
Total: 1,912,544.60
_________________________________
Darcy Smith, Interim CFO Date DocuSign Envelope ID: AFA0A176-9BC7-41F7-954C-F565CB382A6D 9/1/2023
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City Council Agenda Item
Staff Report
CITY OF SAN BRUNO
DATE:September 12, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, City Manager
PREPARED BY:Darcy Smith, Assistant City Manager
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 Water Rate Increases Effective January 1, 2024, through December 31, 2028
BACKGROUND:
The water utility is 100% funded by water rates charged by the City to pay for water services.
The Water 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 it is funded solely by ratepayers.
The City Council last adopted a multi-year sewer and water rate increase plan on May 23, 2017 that established rate increases for a five-year period through June 30, 2021. The 2017 to 2021 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 water was 5% each year.
The City Council suspended the final year of the five-year water rate increase schedule at the February 9, 2021 City Council meeting. Thus, San Bruno water rates have remained unchanged for over three years since July 1, 2020.
City Council Review of the 2023 Water and Sewer Rate Study Report The City selected Bartle Wells Associates in March 2022 to prepare the Water and Sewer Rate Study Report, including an update of the City’s sewer and water rate model to ensure revenues continue covering operational costs and necessary infrastructure improvements. Staff and the Bartle Wells Associates consultants presented status updates and rate recommendations to the City Council at three different meetings. At the December 13, 2022 City Council meeting, staff provided a progress update on the development of the Rate Study.
At the February 14, 2023, and February 28, 2023 City Council meetings, study sessions were held to conduct a final review of the Water and Sewer Rate Study Report1. The 2023 Water and Sewer Rate Study Report that was reviewed at the City Council meetings is provided in Attachment 2. At the February 28, 2023 Council meeting, Councilmembers directed staff to return to the Council to initiate the Proposition 218 water rate increase process at the rate of 6% starting January 1, 2024 through December 31, 2028. Council also directed staff to prepare a resolution for the rate adoption. The City Council also directed staff to separate the sewer and 1 https://www.sanbruno.ca.gov/AgendaCenter/ViewFile/Agenda/_02282023-1788
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September 12, 2023
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1 water rate proposals. The January effective date was selected to implement the water rate increases as water usage is lowest in the winter months.
Thus, on June 13, 2023 the City Council adopted a resolution approving increases to wastewater (sewer) rates for Fiscal Year 2023-24 through 2027-28. These rates went into effect on July 1, 2023. Staff intends to recommend the same process for water rates.
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 five years. Table 1 below shows the proposed rate schedule for water utility rate payers.
Table 1: Proposed Water Rate Increases
January 1
2024
January 1
2025
January 1
2026
January 1
2027
January 1
2028
6% 6% 6% 6% 6%
Table 2 on the following page includes the proposed water rates effective January 1, 2024 through December 31, 2028. Water service charges are billed bi-monthly on the City’s combined water and sewer utility bill. 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. 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.
The City’s water rates include two components:
•Fixed Monthly Service Charges: Water customers are charged a fixed Monthly Service Charge based on water meter size with larger meters paying higher charges based on each meter’s capacity and associated demand placed on the water system. •Quantity Charges: Customers are charged 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 non-single-family customers are billed a uniform rate for all water use.
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1 Table 2: Proposed Water Rates
Proposed Rates Effective On or AfterCurrent
Water
Rates
Jan-1
2024
Jan-1
2025
Jan-1
2026
Jan-1
2027
Jan-1
2028
Overall Rate Increase Target 6% 6% 6% 6% 6%
MONTHLY SERVICE CHARGES
Fixed monthly charge based on meter size.
Meter Size
3/4-inch $25.58 $27.11 $28.73 $30.45 $32.27 $34.22
1-inch 42.63 45.18 47.88 50.75 53.78 57.03
1-1/2 inch 85.27 90.37 95.77 101.50 107.57 114.07
2-inch 136.43 144.59 153.23 162.40 172.11 182.51
3-inch 255.80 271.10 287.30 304.50 322.70 342.20
4-inch 426.33 451.83 478.83 507.50 537.83 570.33
6-inch 852.67 903.67 957.67 1,015.00 1,075.67 1,140.67
8-inch 1,364.27 1,445.87 1,532.27 1,624.00 1,721.07 1,825.07 10-inch 1,961.13 2,078.43 2,202.63 2,334.50 2,474.03 2,623.53
QUANTITY CHARGES
Billed based on metered water consumption ($ per hundred cubic feet or hcf) a) Single-Family Residential
Bi-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 AccountsAll Use 10.11 $10.68 $11.28 $11.91 $12.58 $13.27 Accounts served by water procured from NCCWD are also charged a Differential Cost of Supply Charge reflecting the higher cost of water procured from this source.
Note: One hundred cubic feet (hcf) is equivalent to approximately 748 gallons.
Explanation of Basis for Rate Increases
A reliable, high quality, and safe water supply is among the most fundamental and important services delivered to the community. The City owns and operates a water system that includes four active groundwater wells, eight 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 five years, the City has averaged about 100 water main breaks per year. The City’s
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1 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 and deteriorating infrastructure. The overall system condition and improvement needs have been carefully evaluated through the City’s Water Master Plan which was adopted by the City Council on March 14, 2023.
Water operations are funded solely from water customer rates. The drought and State conservation requirements have impacted customer water use and utility revenues. Total customer water consumption in 2022 was down 8% from 2021 and has decreased 22% since the 2014 drought. As water use decreases, revenues decrease proportionately, while the fixed costs to maintain system infrastructure increase with inflation, including maintenance, repair, and construction costs. The proposed rates provide necessary revenue to cover the projected operational and maintenance costs for the City’s water utilities. The proposed rates also implement the Adopted Fiscal Year 2023 to 28 Capital Improvement Program to provide for the necessary investment in improving and replacing the City’s aging and deteriorating water infrastructure.
The proposed water rates reflect decreases in water consumption due to increased conservation, projected increases in the cost of purchased water from the San Francisco Public Utilities Commission, and continuation of the City’s policy goal for replacing the City’s mains and other infrastructure. The cost of purchased water from the San Francisco Public Utilities Commission (SFPUC) is projected to increase by 21% over the next five years. The proposed rates also reflect that operational costs, such as personnel costs, maintenance supplies, as well as repair equipment, are increasing at a rate higher than the regional cost of living index.
The proposed annual 6% rate increases for each of the next five years will provide necessary revenue to cover the projected operational, procurement, and maintenance costs for the City’s water utility. The proposed rates will fund the Capital Improvement Program to provide for the necessary investment in improving and replacing the City’s aging and deteriorating water infrastructure. The water enterprise has accrued fund reserves that include some excess reserves available for capital funding. Water enterprise financial projections assume the City would first spend down a portion of its fund reserves prior to issuing debt in 2025 to fund approximately $24 million of capital improvements, which are elevated over the first five years.
Table 3 illustrates this. The actual timing and amount of any future debt issuance would vary based on actual future funding needs.
The Adopted Fiscal Year 2023-24 Operating and Capital Improvement Program Budget includes $20.93M in funding for water capital projects for the fiscal year. The 2023-28 Capital Improvement Program includes a total of $98.7M over the five-year period. These improvements consist primarily of the replacement of three older water tanks as well as replacement of aging water pipelines and various other improvements to wells, pressure regulating stations, and pump stations. The detailed analysis of the improvements needed are included in the 2023 Water and Sewer Rate Study Report.
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1 Table 3: Water Utility Projected Revenues & Expenses
The cash flow projections indicate the need to raise water rates by 6% each year for the next 5 years in order to support the water utility’s projected operating and capital funding needs. These projected rate increases follow a period of no rate increases for three and half years, from July 1, 2020 to December 31, 2023 as shown below on Table 4. With the proposed rates, the average annual water rate increase since 2016 equates to approximately 4.3%.
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.
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1 Table 3: Water Utility Projected Revenues & Expenses
Table 4: Historical & Projected Water Rate Increases
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 rates by resolution effective January 1, 2024 through December 31, 2028.
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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1 Rate Adjustment Adoption Timeline
As directed by the City Council at the February 28, 2023 City Council Meeting, the proposed water rate increases effective January 1, 2024 through December 31, 2028 are planned to be adopted by resolution at a future 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 to be effective January 1, 2024, the following schedule is proposed:
September 12, 2023 City Council authorizes mailing 45-day notice to property owners per Proposition 218 in rate adoption process
On or before
September 29, 2023
Notices mailed to start 45-day public notice period
November 14, 2023 City Council holds public hearing, considers any protests, takes action to adopt new rates by resolution effective January 1, 2024 January 1, 2024 New water rates take effect
FISCAL IMPACT:
Administering the Proposition 218 process will cost approximately $13,300 for the mailing and postage which will be funded from the available Water Enterprise Fund balance. The proposed rate structure will provide 6% in total additional revenues to support operational and capital needs, including replacement of aging infrastructure, for the five-year time period from 2024 to 2028.
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 Water Rate Increases Effective January 1, 2024 through December 31, 2028.
ALTERNATIVES:
1. Do not proceed with the process to adopt new rates at this time and potentially affect delivery of Capital Improvement Program projects, water procurement, and operational services due to a lack of adequate funding.
ATTACHMENTS:
1. Resolution
2. 2023 Water and Sewer Rate Study Report
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7 RESOLUTION NO. 2023 - ___
RESOLUTION DIRECTING STAFF TO INITIATE THE PROPERTY OWNER NOTICE, HEARING, AND PROTEST PROCESS AS REQUIRED BY PROPOSITION 218 FOR THE PROPOSED WATER RATE INCREASES EFFECTIVE JANUARY 1, 2024, THROUGH DECEMBER 31, 2028
WHEREAS, the Water Enterprise Fund accounts for all operational and capital expenditures necessary to operate, maintain, and improve this critical utility system; and WHEREAS, the Water 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 utility; and
WHEREAS, the City Council last adjusted water rates on May 23, 2017 that established rate increases for a five-year period through June 30, 2021. The City Council suspended the final year of the five-year water rate increase schedule at the February 9, 2021, City Council Meeting. Thus, San Bruno water rates have remained unchanged for over three years, since July 1, 2020; and
WHEREAS, the City selected Bartle Wells Associates in March 2022 to prepare the Water and Sewer Rate Study Report, including an update of the City’s sewer and water rate model to ensure revenues continue covering operational costs and necessary infrastructure improvements. The City’s aging water 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 received an update on the preparation of the 2023 Water and Sewer Rate Study Report on December 13, 2022. At the February 14, 2023, and February 28, 2023 City Council meetings, study sessions were held to conduct a final review of the 2023 Water and Sewer Rate Study Report. At the February 28, 2023, City Council Meeting, Councilmembers directed staff to return to the City Council to initiate the Proposition 218 water rate increase process at the rate of 6% starting January 1, 2024 through December 31, 2028; and WHEREAS, the 2023 Water and Sewer Rate Study Report rate evaluation documents that annual rate increases of 6% each year over the next five years, from January 1, 2024 through December 31, 2028, are needed for the water utility to cover the projected operational, procurement, and maintenance costs. The proposed rates will fund the five-year $98.7M Capital Improvement Program for the water utility to provide for the necessary investment in improving and replacing the City’s aging and deteriorating water infrastructure. The new rates would become effective on January 1, 2024; 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 water rate increases is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.
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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 water rate increases for effective January 1, 2024 through December 31, 2028. —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:
NOES:
ABSENT:
_________________________________
Lupita Huerta, City Clerk
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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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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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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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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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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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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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San Bruno 2023 Water & Sewer Rate Study
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.
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.
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
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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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 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.
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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San Bruno 2023 Water & Sewer Rate Study
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
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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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:September 12, 2023
TO:Honorable Mayor and Members of the City Council
FROM:Alex D. McIntyre, City Manager
PREPARED BY:Matthew Lee, P.E., Public Works Director
Harry Yip, P.E., Senior Civil Engineer
SUBJECT: Consider Adoption of a Resolution Rejecting All Bids and Authorizing the Re-Advertisement of the Bid for the Oak Avenue and Crystal Springs Road Intersection Improvements Project
BACKGROUND:
The City recently advertised and opened bids for the Oak Avenue and Crystal Springs Road Intersection Improvements Project. This project consists of intersection improvements including new curb, gutter, sidewalk replacement, pavement replacement, pavement markings, and installation of new traffic signals needed to facilitate the opening of the Recreation & Aquatics Center. A total of two bids were received. Pursuant to Public Contracts Code Section 22038, if the City resolves to award a construction contract, it must award the project to the lowest responsible bidder submitting a responsive bid or reject all bids received.
DISCUSSION:
On August 23, 2023, bids for the Oak Avenue and Crystal Springs Road Intersection Improvements Project were opened with the following results:
Interstate Grading and Paving, Inc. $734,800.20
St. Francis Electric, LLC $922,813.00
Engineer’s Estimate $774,390.45
All bids received were non-responsive as both bidders failed to comply with the bid document specifications requiring the bid cost for mobilization/demobilization to be a maximum 5% of the total bid price. The percentage of mobilization/demobilization bid cost of the total bid costs for Interstate Grading and Paving, Inc and St. Francis Electric, LLC were calculated to be 6.7% and
6.3% respectively and thus exceeded the maximum 5% specified. As such, no responsive bids were received in the solicitation. After consultation with the City Attorney’s Office, it was determined that it is in the City’s best interests to reject all bids and to re-advertise the project.
As this project is a CEQA mitigation for the RAC, this project is critical to the opening of the RAC and delays to this project may delay the opening of the RAC. The project will be rebid with the bid schedule more clearly indicating the requirement. Staff may also allow a
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2 mobilization/demobilization of up to 10% as this is a small project with multiple construction specialties.
FISCAL IMPACT:
The total cost of the re-bid process including advertisement is approximately $2,000. There are no other fiscal impacts to the City resulting from the rejection of the bid.
ENVIRONMENTAL IMPACT:
City Council’s action is not considered a “Project” per CEQA Guidelines and therefore no further environmental analysis is required.
RECOMMENDATION:
Adopt a resolution to reject all bids and direct staff to re-advertise the Project.
ALTERNATIVES:
None.
ATTACHMENTS:
1. Resolution
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RESOLUTION NO. 2023 - ___
RESOLUTION REJECTING ALL BIDS AND AUTHORIZING STAFF TO
RE-ADVERTISE FOR THE OAK AVENUE AND CRYSTAL SPRINGS INTERSECTION
IMPROVEMENT PROJECT
WHEREAS, the City advertised the Oak Avenue and Crystal Springs Intersection Improvements Project (“Project”) for bid in compliance with California Public Contract Code, and local purchasing regulations; and
WHEREAS, the City received two sealed bids for this Project from Interstate Grading and Paving, Inc., and St. Francis Electric, LLC on August 23, 2023; and WHEREAS, Staff has evaluated the bids and found the bids to be non-responsive; and WHEREAS, pursuant to California Public Contract Code section 22038, if the City awards a construction contract, the City must award the project to the lowest responsible bidder submitting a responsive bid or reject all bids received; and WHEREAS, the City desires to construct the Project and would need to re-advertise to solicit bids.
NOW, THEREFORE, BE IT RESOLVED that the City Council rejects all bids and authorizes Staff to re-advertise for the Oak Avenue and Crystal Springs Intersection Improvements Project.
-o0o-
I, hereby certify that the foregoing Resolution No. 2023 - _______ was introduced and adopted by the San Bruno City Council at a regular meeting on September 12, 2023, by the following vote:
AYES:
NOES:
ABSENT:
Lupita Huerta, City Clerk
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City Council Agenda Item
Staff Report
CITY OF SAN BRUNO
DATE: September 12, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Matthew Lee, P.E., Public Works Director
Dalia Manaois, P.E., Principal Civil Engineer
SUBJECT: Consider Adoption of a Resolution:
• Approving the Design of the 2022-23 Street Rehabilitation Project; • Authorizing the City Manager to Execute a Construction Contract with O’Grady Paving, Inc. for the 2022-23 Street Rehabilitation Project in the Amount of $5,784,871.65 and Approving a Construction Contingency of $867,730.75; or Authorizing the City Manager to Execute a Construction Contract with Interstate Grading and Paving, Inc. for the 2022-23 Street Rehabilitation Project in the Amount of $5,306,673.12 and Approving a Construction Contingency of $796,000.97 and;
• Authorizing the City Manager to Execute a Contract for Material Testing Services with Twining, Inc. in an Amount Not to Exceed $80,000; • Transfer the budget in the amount of $1,190,000 from the 2023-24 Street Rehabilitation Project to the 2022-23 Street Rehabilitation Project; • Determining the Project is Exempt Under the California Environmental Quality Act
BACKGROUND:
The City’s Capital Improvement Program (CIP) includes the Pavement Management Program (PMP) to repair and apply preventative maintenance treatment to local, collector, and arterial streets. As part of the PMP, the condition of City streets is routinely assessed, and recommendations are made on the streets to be selected for rehabilitation to cost effectively maximize pavement longevity. Street condition is measured in terms of pavement condition index (PCI), a numerical index between 0 and 100 in which 0 represents a failed street and 100 represents a newly paved street. The City has a current average Citywide PCI of 60.
Pavement with PCI between 40 and 70 are in poor to fair condition. Pavement with PCIs within this range show some form of distress caused by traffic load or environmental exposure that requires more than a life-extending preventive maintenance treatment; have signs of aging such as cracking; and may require rehabilitation to keep them from deteriorating rapidly. Typical methods of rehabilitation include pavement grind (a removal of a thin layer of existing pavement) and asphalt concrete overlays with base repairs, which are more costly than a slurry seal treatment that can be applied as a preventive maintenance treatment for pavement in good condition, but less costly than a full pavement reconstruction usually required for pavement that is structurally failed. Delaying rehabilitation on pavement runs into the risk of pavement falling into a failed condition that will require more costly reconstruction treatment. 128 of 168
Item 7.a.
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4 Pavement rehabilitation and reconstruction projects typically include pavement structural investigation and curb ramp design. Pavement investigation involves collecting core samples and running tests on the existing pavement to assist in the pavement treatment design. In accordance with the Americans with Disabilities Act (ADA), curb ramps for street crossings within pavement rehabilitation and reconstruction projects limits must be upgraded to comply with the latest ADA standards. Curb ramp design can require field surveys to be conducted.
With these additional steps, the design of pavement rehabilitation projects can take 8 to 12 months. After project advertising, award, and the commencement of construction, concrete curb ramps are constructed prior to the pavement work to avoid cutting into new pavement. Each ramp requires demolition of existing concrete, formwork, and pouring of new concrete.
Depending on the number of ramps, ramp construction can take several weeks to months.
Typically, through a contractor’s means and methods, all curb ramps are installed first as one set of operation and followed by another operation of paving. These sets of operations can be performed by different crews and contractors. Work is sequenced this way to help save on mobilization costs and reduce conflicts and coordination requirements of separate operations performing work in the same work area.
The City’s 2022-23 Street Rehabilitation Project is a rehabilitation project that will repair portions of existing pavement and prevent rapid deterioration to maximize pavement longevity at various locations and install accessible curb ramps within project limits.
On November 8, 2022, City Council adopted a resolution authorizing the City Manager to execute an agreement with Bellecci & Associates for the design services of the 2022-23 Street Rehabilitation Project. Bellecci & Associates completed the final design in early August 2023.
In order to provide maximum flexibility, the project was packaged into a base bid street segment that staff calculated would be awardable based on the available funding with additional additive street segments that could be awarded in the event the bids came in below the engineer’s estimate. In addition to the asphalt work, this project will include replacing concrete sidewalk and curb/gutter areas, installing accessible curb ramps, rerouting and replacing storm drain facilities (pipes and catch basins), and restriping pavement markings.
The project consists of the following base bid and bid additive streets:
BASE BID
STREET NAME FROM TO
ACACIA AVENUE ANGUS AVENUE SAN BRUNO AVENUE
CRESTMOOR DIRVE PIEDMONT AVENUE CRYSTAL SPRINGS ROAD
CUNNINGHAM WAY I-280 JENEVEIN AVENUE
HAWTHORNE AVENUE NILES AVENUE CEDAR AVENUE
SAN BRUNO AVENUE EB CRESTMOOR DRIVE SKYLINE BOULEVARD
SAN BRUNO AVENUE WB 2 EL CAMINO REAL CHERRY AVENUE
SAN BRUNO AVENUE WB 3 EL CAMINO REAL 604 SAN BRUNO AVE WEST SAN MATEO AVENUE 1 SCOTT STREET TANFORAN AVENUE
SAN MATEO AVENUE 2 WALNUT STREET 1089 SAN MATEO AVENUE
SHELTER CREEK LANE WHITMAN WAY SAN BRUNO AVENUE
SNEATH LANE 1 SKYLINE BOULEVARD SEQUOIA AVENUE
SNEATH LANE 2 SEQUOIA AVENUE ROLLINGWOOD DRIVE
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4 BID ADDITIVES
# STREET NAME FROM TO
1 JENEVEIN AVENUE EL CAMINO REAL LINDEN AVENUE
1 SCOTT STREET HERMAN STREET HUNTINGTON AVENUE
2 REDWOOD AVENEUE NILES AVENUE HAWTHORNE AVENUE
3 DONNER AVENUE CRYSTALS SPRINGS NILES AVENUE
4 SAN BRUNO AVENUE WB 1 CHERRY AVENUE I-280
DISCUSSION:
The 2022-23 Street Rehabilitation Project design (“the design”), which consists of plans and specifications that are on file with the Public Works Department, was completed in August 2023.
The City issued a notice inviting bids for the construction of the 2022-23 Street Rehabilitation Project. Notice to bidders was sent to contractors listed in the City’s contractor directory, posted on the City’s website and provided to construction distribution centers. The project was advertised twice in the San Mateo County Times newspaper on August 9, 2023, and August 16, 2023. Staff held a non-mandatory pre-bid meeting on August 16, 2023. On August 25, 2023, staff conducted the bid opening for the project and received five (5) bid which is summarized below.
Contractor
Name
Base Bid
(Basis of
Award)
Bid
Additive
#1
Bid
Additive
#2
Bid
Additive
#3
Bid
Additive
#4
Total Bid
1 Interstate
Grading and
Paving, Inc.
$4,235,916.12 $244,192.21 $360,359.35 $273,404.80 $192,800.64 $5,306,673.12 2 O'Grady Paving,
Inc.
$4,572,158.00 $345,551.15 $397,362.50 $282,732.80 $187,067.20 $5,784,871.65 3 G. Bortolotto &
Company, Inc
$4,789,635.55 $281,853.82 $400,708.00 $295,628.00 $217,871.54 $5,985,696.91 4 DeSilva Gates
Construction
LLC
$4,947,947.00 $412,149.25 $453,806.00 $363,279.00 $267,821.50 $6,445,002.75 5 Teichert
Construction
$5,002,351.00 $506,400.92 $573,075.50 $429,527.80 $349,522.77 $6,860,877.99 Engineer’s
Estimate
$5,117,063.25 $257,143.00 $472,550.00 $290,571.00 $210,004.75 $6,347,332.00 The lowest bid was submitted by Interstate Grading and Paving, Inc. (IGP). As required, the bid revealed an Experience Modification Rate (EMR) of 1.24. EMR is a numeric representation of a business worker compensation claims history and safety record as compared to other businesses in the same industry, within the same state. The average EMR rating is 1.0 and greater than average EMR rating indicates a higher safety risk. The City’s Statement of Qualification Specification Section 00 45 13 states that Bidder with a rating in excess of 1.00 may constitute grounds for disqualification; however, Bidder may provide additional information to explain a rating above 1.00. Staff reviewed additional information regarding IGP’s EMR rating, has scheduled a hearing with IGP for a determination for responsibility, and will provide City Council with an update of determination of responsibility.
Staff recommends awarding the base bid with all additives to the lowest responsible and responsive bidder.
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4 Council’s action will maintain the award and start of construction timelines to fulfill the commitment of paving this year. Staff is presenting two options for award depending on the outcome of the hearing, to meet timelines.
The lowest bid was submitted by IGP in the amount of $5,306,673.12, which is approximately $1,040,658.88 lower or approximately 16% less than the engineer’s estimate of $6,347,332.
The second lowest bid was submitted by O’Grady Paving, Inc., in the amount of $5,784,871.65, which is approximately $562,000 lower or approximately 9% less than the engineer’s estimate of $6,347,332. Staff has reviewed the bid documents and has determined that O’Grady Paving, Inc is a responsive and responsible bidder.
Construction of the project will have impacts on residents in the project vicinity such as temporary roadway closures, noise, dust, and accessibility in and out of private properties.
Parking will also be restricted within each roadway as construction work is occurring. Work hours will be weekdays from 8 a.m. through 5 p.m., excluding holidays. At the end of each work day, the roadway will be re-opened and on-street parking will be re-established. Should the project be awarded, staff anticipates starting construction in Fall 2023, and taking approximately one hundred and ten (110) working days to complete.
The design of the 2021-22 Slurry Seal Project, funded by Measures A, G, and W funds, was recently completed and construction awarded. Construction is currently in progress and anticipated to be complete during the Fall/Winter 2023. One additional pavement project is currently on an actively accelerated schedule for design completion this calendar year. The 2021-22 Street Reconstruction Project, funded by SB1, is estimated for design completion in Fall 2023 and construction to begin in Fall/Winter 2023. The construction timeline depends on weather conditions. Due to the complexity of the reconstruction project, additional design activities such as pot holing and surveying may result in a longer design schedule. Staff anticipates returning to City Council to request for authorization to award a construction contract for the reconstruction project in Fall 2023.
FISCAL IMPACT:
The 2022-23 Street Rehabilitation Project is a project within the approved FY 2022-23 Capital Improvement Program. The estimated total cost of the project is $7,877,362.40 and exceeds the total budget of $6,700,000. Staff recommends transferring the remaining amount of $1,187,730.75 from the 2023-24 Street Rehabilitation Project which is within the approved FY 2023-24 Capital Improvement Program. Bid Additives not awarded in the 2022-23 Street Rehabilitation Project will be included in the 2023-24 Street Rehabilitation Project; however, additional staff time and design costs are necessary to repackage the Bid Additives in a future project. Additionally, future bids may increase above the engineer’s estimate. Funds not used in the 2022-23 Street Rehabilitation Project will be returned to the 2023-24 Street Rehabilitation Project.
This estimated total project cost includes design and construction support services, staff management, construction management and inspection, construction materials testing and construction contingency.
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4 The estimated cost for the project is not more than the following:
Design Contract (Bellecci & Associates) $ 529,760.00 Staff Management for Design $ 65,000.00
Construction Contract $ 5,784,871.65
Construction Contingency (15%) $ 867,730.75
Material Testing and Inspection (Twining, Inc.) $ 80,000.00 Estimated Construction Management and Inspection $ 550,000.00
Project Total $ 7,877,362.40
ENVIRONMENTAL IMPACT:
This project falls within the Categorical Exemption set forth in CEQA Guidelines, Section 15301(c), which exempts the repair, maintenance or minor alteration of existing public structures and facilities involving negligible or no expansion of existing use.
RECOMMENDATION:
Consider Adoption of a Resolution:
•Approving the Design of the 2022-23 Street Rehabilitation Project; •Authorizing the City Manager to Execute a Construction Contract with O’Grady Paving, Inc. for the 2022-23 Street Rehabilitation Project in the Amount of $5,784,871.65 and Approving a Construction Contingency of $867,730.75; or Authorizing the City Manager to Execute a Construction Contract with Interstate Grading and Paving, Inc. for the 2022- 23 Street Rehabilitation Project in the Amount of $5,306,673.12 and Approving a Construction Contingency of $796,000.97; and
•Authorizing the City Manager to Execute a Contract for Material Testing Services with Twining, Inc. in an Amount Not to Exceed $80,000;
•Transfer the budget in the amount of $1,190,000 from the 2023-24 Street Rehabilitation Project to the 2022-23 Street Rehabilitation Project;
•Determining the Project is Exempt Under the California Environmental Quality Act ALTERNATIVES:
1. Reject all bids and direct staff to re-advertise the project. This action will delay the completion of the FY2022-23 Street Rehabilitation Project and may result in the City receiving higher bids.
2. Award only the base bid to the selected contractor.
3. Award the base bid and select different bid alternatives to the selected contractor.
ATTACHMENTS:
1. Resolution
2. CIP Budget
3. Project Map
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RESOLUTION NO. 2023-
A RESOLUTION APPROVING THE DESIGN OF THE 2022-23 STREET REHABILITATION PROJECT; AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT FOR THE 2022-23 STREET REHABILITATION PROJECT; AUTHORIZING THE
CITY MANAGER TO EXECUTE A CONTRACT FOR MATERIAL TESTING SERVICES WITH TWINING, INC. IN AN AMOUNT NOT TO EXCEED $80,000; TRANSFER THE BUDGET IN THE AMOUNT OF $1,190,000 FROM THE 2023-24 STREET REHABILITATION PROJECT TO THE 2022-23 STREET REHABILITATION PROJECT ; AND DETERMINING THE
PROJECT IS EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, the City’s Capital Improvement Program (CIP) includes the Pavement Management Program (PMP) to repair and apply preventative maintenance treatment to local, collector, and arterial streets; and
WHEREAS, as part of the PMP, the condition of City streets is routinely assessed, and recommendations are made on the streets to be selected for rehabilitation to cost effectively maximize pavement longevity; and
WHEREAS, the 2022-23 Street Rehabilitation Project is a rehabilitation project that will repair portions of existing pavement and prevent rapid deterioration to maximize pavement longevity at various locations and install accessible curb ramps within project limits; and WHEREAS, On November 8, 2022, City Council adopted a resolution authorizing the City Manager to execute an agreement with Bellecci & Associates for the design services of the 2022-23 Street Rehabilitation. Bellecci & Associates completed the final design in early August 2023; and
WHEREAS, the 2022-23 Street Rehabilitation Project design (“the design”), which consists of plans and specifications that are on file with the Public Works Department, was completed in August 2023; and
WHEREAS, in August 2023, the City issued a notice inviting bids for the construction of the 2022-23 Street Rehabilitation Project; and
WHEREAS, notice to bidders was sent to contractors listed in the City’s contractor directory, posted on the City’s website, provided to construction distribution centers, and advertised twice in the San Mateo County Times newspaper; and WHEREAS, on August 25, 2023, staff conducted the bid opening for the project and received five bids; and
WHEREAS, The lowest bid was submitted by Interstate Grading and Paving, Inc. (IGP); and
WHEREAS, The City’s Statement of Qualification Specification Section 00 45 13 states that Bidder with a rating in excess of 1.00 may constitute grounds for disqualification; however, Bidder may provide additional information to explain a rating above 1.00; and WHEREAS, Staff reviewed additional information regarding IGP’s EMR rating, has scheduled a hearing with IGP for a determination for nonresponsibility, and will provide City Council with an update of determination of nonresponsibility; and WHEREAS, staff recommends awarding the base bid with all additives to the lowest 133 of 168
ATTACHMENT 1
responsible and responsive bidder; and
WHEREAS, to expedite the award and start of construction, staff is presenting two options for award depending on the outcome of the hearing; and WHEREAS, The lowest bid was submitted by IGP in the amount of $5,306,673.12, which is approximately $1,040,658.88 lower or approximately 16% less than the engineer’s estimate of $6,347,332; and
WHEREAS, the second lowest bid was submitted by O’Grady Paving, Inc, in the amount of $5,784,871.65, which is approximately $562,000 lower or approximately 9% less than the engineer’s estimate of $6,347,332; and
WHEREAS, staff has reviewed the bid documents and has determined that O’Grady Paving, Inc. is a responsive and responsible bidder; and WHEREAS, the 2022-23 Street Rehabilitation Project is a project within the approved FY 2022-23 Capital Improvement Program; and
WHEREAS, the estimated total cost of the project is $7,877,362.40 and exceeds the total budget of $6,700,000; and
WHEREAS, staff recommends transferring the remaining amount from the 2023-24 Street Rehabilitation Project which is within the approved FY 2023-24 Capital Improvement Program; and
WHEREAS, the estimated total project cost includes design and construction support services, staff management, construction management and inspection, construction materials testing and construction contingency.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby:
1. Approves the design of the 2022-23 Street Rehabilitation Project;
2. [motion to include either (a) or (b)] (a) Authorizes the City Manager to execute a construction contract with O’Grady Paving, Inc. for the 2022-23 Street Rehabilitation Project in the Amount of $5,784,871.65 and approves a construction contingency of $867,730.75; or (b) Authorizes the City Manager to Execute a Construction Contract with Interstate Grading and Paving, Inc. for the 2022-23 Street Rehabilitation Project in the Amount of $5,306,673.12 and approve a Construction Contingency of $796,000.97];
3. Authorizes the City Manager to execute a contract for Material Testing Services with Twining, Inc in an Amount Not to Exceed $80,000;
4.Transfer the budget in the amount $1,190,000 from the 2023-24 Street Rehabilitation Project to the 2022-23 Street Rehabilitation Project; and
5. Determines that the Project is exempt under the California Environmental Quality Act ---oOo---
I hereby certify that foregoing Resolution No. 2023 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on September 12, 2023, by the following vote:
AYES:
NOES:
ABSENT:
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Lupita Huerta, City Clerk
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PROJECT #: 60032 Total Project Budget: 6,700,000$
DEPARTMENT: Public Works Total
FUNDING SOURCES
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2023-24 FY2024-25 FY2025-26 FY2026-27
FY2023-27
Budget
Measure A -$ - $ 500,000 $ 500,000$ - $ - $ - $ - $ 500,000$ Measure G - - 5,400,000 5,400,000 - - - - 5,400,000 Measure W 200,000 199,341 600,000 799,341 - - - - 799,341 Total 200,000$ 199,341$ 6,500,000 $ 6,699,341$ - $ - $ - $ - $ 6,699,341$
PROJECT APPROPRIATIONS
Prior
Appropriations
Estimate
Carryover New Request
Total
Appropriations FY2023-24 FY2024-25 FY2025-26 FY2026-27
FY2023-27
Budget
Design 200,000$ 199,341$ -$ 199,341$ -$ -$ -$ -$ 199,341$ Construction - - 6,500,000 6,500,000 - - - - 6,500,000 Total 200,000$ 199,341$ 6,500,000 $ 6,699,341$ - $ - $ - $ - $ 6,699,341$ Insert Picture Here
Project Details
Initial Funding Year FY2021-22
Target Completion Year FY2022-23
Expended as of July 1, 2021 $659
FY2022-23
Pavement Management Program - 2022-23 Street Rehabilitation Project Streets Capital
Street Rehabilitation
Project Description: The 2022-23 Street Rehabilitation Project includes the pavement evaluation and rehabilitation of streets not eligible for preventative maintenance as identified through the Pavement Management Program. Pavement rehabilitation includes asphalt concrete removal and replacement on roadways to extend pavement life by removing surface defects and placing a new asphalt concrete overlay. 366
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ATTACHMENT 2
PROJECT #: NEW Total Project Budget: 3,500,000$
DEPARTMENT: Public Works
FUNDING SOURCES
Prior
Appropriations
Estimated
Carryover
New
Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
Total
FY2023-28
Budget
Measure G -$ -$ 3,500,000$ 3,500,000$ -$ -$ -$ -$ 3,500,000$ Total -$ -$ 3,500,000$ 3,500,000$ -$ -$ -$ -$ 3,500,000$
PROJECT APPROPRIATIONS
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
FY2023-28
Budget
Design -$ -$ 400, 000$ 400,000$ -$ -$ -$ -$ 400, 000$ Construction - - 3, 100,000 3, 100,000 - - - - 3, 100,000 Total -$ -$ 3,500,000$ 3,500,000$ -$ -$ -$ -$ 3,500,000$ Project Details
Initial Funding Year FY2023-24
Target Completion Year FY2024-25
Expended as of June 30, 2022 $0
FY2023-24
Pavement Management Program - 2023-24 Street Rehabilitation Project Streets Capital
Pavement Management
Project Description: The 2023-24 Street Rehabilitation Project includes the pavement evaluation and rehabilitation of streets not eligible for preventative maintenance as identified through the Pavement Management Program.
Pavement rehabilitation includes asphalt concrete removal and replacement on roadways to extend pavement life by removing surface defects and placing a new asphalt concrete overlay. 372
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LEGEND
Streets to be Rehabilitated
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ATTACHNENT 3
City Council Agenda Item
Staff Report
CITY OF SAN BRUNO
DATE: September 12, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
SUBJECT: Consider Adoption of a Resolution Approving Amended City Investment Policy
BACKGROUND:
The investment of funds by a California local agency, including the types of securities in which an agency may invest, is governed by the California Government Code, and a city’s Investment Policy (“Policy”) may be more restrictive than the Government Code; however, it may not be more permissive. A City Council adopted Policy establishes parameters for investing City funds to guide the investment officer’s decisions to achieve safety, liquidity, yield objectives, preferences or risk tolerance, constraints on the investment portfolio, and how a city’s investments will be managed and monitored.
DISCUSSION:
City staff recommends that the City Council approve a resolution and policy (Attachment 1 and Exhibit A) overhauling the current Policy which was adopted by the City Council on December 8, 2020 (Attachment 2). The update clarifies certain investment types, expands the City's opportunity to achieve higher yields through investments authorized under California Government Code, and updates the Policy to reflect best practices.
The recommended update maintains the current Policy guidance, which is to invest City funds in accordance with California statutes and federal regulations and in a manner designed to accomplish the following objectives, listed in priority order:
a. Safety of principal: Investments will be made in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns. b. Liquidity standard: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. c. Return on investment: The investment portfolio shall be structured to attain a market- average rate of return through economic cycles, taking into account the investment risk constraints for safety and liquidity needs.
The following highlights the most significant recommended changes to the current City Council policy:
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Item 7.b.
Honorable Mayor and Members of the City Council
September 12, 2023
Section VIII. Authorized Investment
The following table summarizes recommended changes with text indicating additions or deletions/ revisions to the current Policy’s authorized investment types. Further detail about each is investment type is provided in recommended Policy, Attachment 1 – Exhibit A, Section VIII.:
Investments Type
Aggregate
Maximum %
of Portfolio
Per Issuer
Maximum %
of Portfolio
Maximum
Maturity Credit Quality
A. US Treasury Bills,
Bonds, Notes
N/A N/A 5 years TSY
US Treasury Obligations &
US Government Agencies
B. Federal Agency or US
Government Sponsored
Enterprise obligations
75%, with no
more than
20% of
securities
held being
callable
N/A
40%
5 years TSY
C. Medium-term notes 20% 5% 5 years A
Time Deposits –
Certificates of Deposit
15% 5% 5 years A
D. Negotiable certificates
of deposit
15% 5% 5 years Short-term: A-1
Long-term: A
E. Non-negotiable
certificates of deposit
15% 5% 3 years FDIC insured;
collateralized
above FDIC limit
F. Prime commercial paper 25% 10%5% 270 days A or A-1;
depending on type
of commercial
entity, see policy
G. Eligible banker’s
acceptances
15% 5% 180 days A-1
H. Repurchase
agreements
10% 5% 30 days
I. Local Agency Investment
Fund (LAIF)
State limit N/A N/A N/A
J. San Mateo County Pool 20% N/A N/A N/A
K. California Joint Powers
Authority (JPA) pooled
investment programs
20% N/A
L. Money Market Funds 20% N/A10% N/A N/AAAA
Bonds and Notes issued
byM. Obligations of the
State of California or any
local agency within the
State, and registered
treasury notes or bonds of
the other 49 states
30%20% 5% 5 years AA
Short-term: A-1
Long-term: A
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Honorable Mayor and Members of the City Council
September 12, 2023
Section X. Utilization of an Investment Advisor
Through the Investment Policy, the City Council delegates authority to invest unexpended City funds to the Chief Financial Officer. The updated Policy provides the option for the City to utilize the services of an investment advisor registered under the Investment Advisers Act of 1940, so long as it can be demonstrated that these services produce a net financial advantage or necessary protection of the City’s financial resources. The additions to allowable investments were made contemplating the utilization of a third-party investment advisor. Should the City decide to pursue those services, a competitive request for proposals will be issued, and proposing firms will be evaluated on several criteria, including investment strategy, ability to adhere to the Investment Policy, and expected return on investment, net of fees.
FISCAL IMPACT:
There is no direct financial impact related to the approval of the recommended Investment Policy.
RECOMMENDATION:
Adopt resolution approving amended City Investment Policy.
ALTERNATIVES:
1. Approve the recommended changes to the Investment Policy.
2. Reject the recommended changes to the Investment Policy.
3. Provide direction to staff for other changes.
ATTACHMENTS:
1. Resolution with Exhibit A: Recommended City of San Bruno Investment Policy
2. Current City of San Bruno Investment Policy
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RESOLUTION NO. 2023 - ____
RESOLUTION APPROVING AMENDED CITY INVESTMENT POLICY
WHEREAS, approval of the City’s Investment Policy last occurred on December 8, 2020; and WHEREAS, management responsibility for investments belongs to the Chief Financial Officer, who recommends and establishes procedures for the operation of the investment program; and WHEREAS, investment policies guide staff and their advisors for all investment activities on behalf of cities; and
WHEREAS, those investment activities are primarily governed by the individual city’s adopted policies and by California Government Code; and
WHEREAS, the proposed changes to the Investment Policy for the City of San Bruno are consistent with State law and, for the purpose of added safety and liquidity, is more restrictive than State law; and
WHEREAS, revisions to Government code section 53646 require annual review and approval of the City’s Investment Policy only if there are changes; however, it encourages cities to conduct an annual review and approval process even if there are no proposed changes; and WHEREAS, the City Manager is recommending revisions to the City’s Investment Policy, which are detailed in the accompanying staff report and set forth in its attachment, for conformance with requirements and sound investment practices.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN BRUNO AS FOLLOWS:
1. The Investment Policy, as attached in Exhibit A for the City of San Bruno is approved. —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:
NOES:
ABSENT:
_________________________________
Lupita Huerta, City Clerk
Exhibit A: Investment Policy, September 12, 2023
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ATTACHMENT 1
Investment Policy
Resolution No. 2023-__
September 12, 2023
I. Purpose
The Council has adopted this Investment Policy (“Policy”) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the unexpended funds of the City. All such investments shall be made in accordance with the Policy and in compliance with the California Government Code.
II. Scope
The provisions of this Policy shall apply to all financial assets of the City and the Successor Agency to the Redevelopment Agency of the City of San Bruno, as accounted for in the City’s annual comprehensive financial report, with the exception of bond proceeds, which shall be governed by the provisions of the related bond indentures or resolutions, and monies received through the Irrevocable Trust Agreement with PG&E.
All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the contributing funds based upon the proportion of the respective average balances relative to the total pooled balance in the investment portfolio.
III. Objectives
City and Successor Agency funds shall be invested in accordance with all applicable City policies and codes, California statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:
A. Safety of principal: Investments will be made in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.
B. Liquidity standard: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
C. Return on investment: The investment portfolio shall be structured to attain a market-average rate of return through economic cycles, taking into account the investment risk constraints for safety and liquidity needs.
IV. Delegation of Authority
Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq. The City Council is responsible for the management of the City’s funds, including the administration of the Investment Policy. Responsibility for the cash management of the City’s funds is hereby delegated to the Chief Financial Officer. Staff members in the Finance Department may be assigned to perform the day-to-day treasury activities related to the investment of City funds. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.
The City may utilize the services of an investment adviser registered under the Investment Advisers Act of 1940, so long as it can be demonstrated that these services produce a net financial advantage or necessary protection of the City’s financial resources. The adviser shall follow this Policy and such other written instructions as provided. The use of professional investment advisers is subject to City review and overriding discretion, which will be exercised as needed. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with the Investment Policy.
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ATTACHEMENT 1 EXHIBIT A
City of San Bruno Page 2
Investment Policy
Resolution No. 2023-__
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V. Prudent Investor Standard
The standard of prudence to be used for managing the City’s investments shall be California Government Code Section 53600.3, the prudent investor standard, which states that, “When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” The City recognizes that market prices of securities will vary depending on economic and interest rate conditions at any point in time. It is further recognized that in a well-diversified investment portfolio, occasional measured losses may occur due to economic, bond market, or individual security credit events. These occasional declines in value must be considered within the context of the overall investment program objectives and the resultant long-term rate of return.
The Chief Financial Officer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of this Policy and other written procedures and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.
VI. Internal Controls
The Chief Financial Officer has established a system of internal controls to ensure compliance with the investment policies and procedures of the City, the Successor Agency, and the California Government Code. Such controls are designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees of the City.
Investment decisions are made by the Chief Financial Officer or his/her designee and executed by staff of the Finance Department. All wire transfers initiated by Finance Department staff members must be approved and transmitted by the Chief Financial Officer or his/her designee. Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction. Timely bank reconciliation is conducted to ensure proper handling of all transactions.
The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by Finance Department staff on a monthly basis. An independent analysis by an external auditor shall be conducted annually to review and perform procedure testing on the City’s cash and investments. The Chief Financial Officer shall review and ensure compliance with investment processes and procedures.
VII. Ethics and Conflict of Interests
In accordance with California Government Code Sections 1090 et seq. and 87100 et seq., officers and employees of the City will refrain from any activity that could conflict with the proper execution of the investment program or which could impair their ability to make impartial investment decisions, and all investment personnel shall subordinate their personal investment transactions to those of the City. In addition, City Council members, the City Manager, and Chief Financial Officer shall comply with the reporting requirements of California Government Code Section 87203 and regulations of the Fair Political Practices Commission and file a Statement of Economic Interest annually.
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City of San Bruno Page 3
Investment Policy
Resolution No. 2023-__
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VIII. Authorized Investments
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609, and 53630-53686. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between the Policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit quality listed in this section apply at the time the security is purchased.
Investments Type
Aggregate
Maximum
% of
Portfolio
Per Issuer
Maximum %
of Portfolio
Maximum
Maturity Credit Quality
A. US Treasury Bills, Bonds,
Notes
N/A N/A 5 years TSY
B. Federal Agency or US
Government Sponsored
Enterprise obligations
75%, with
no more
than 20%
of
securities
held being
callable
40%
5 years TSY
C. Medium-term notes 20% 5% 5 years A
D. Negotiable certificates of
deposit
15% 5% 5 years Short-term: A-1
Long-term: A
E. Non-negotiable certificates of
deposit
15% 5% 3 years FDIC insured;
collateralized
above FDIC limit
F. Prime commercial paper 25% 5% 270 days A or A-1;
depending on type
of commercial
entity, see policy
G. Eligible banker’s acceptances 15% 5% 180 days A-1
H. Repurchase agreements 10% 5% 30 days
I. Local Agency Investment
Fund (LAIF)
State limit N/A N/A N/A
J. San Mateo County Pool 20% N/A N/A N/A
K. California Joint Powers
Authority (JPA) pooled
investment programs
20% N/A
L. Money Market Funds 20% 10% N/A AAA
M. Obligations of the State of
California or any local agency
within the State, and
registered treasury notes or
bonds of the other 49 states
20% 5% 5 years
Short-term: A-1
Long-term: A
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City of San Bruno Page 4
Investment Policy
Resolution No. 2023-__
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Any investment currently held at the time the policy is adopted that does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.
An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers. The authorized investments are described below.
A. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.
There is no limitation on the percentage of the portfolio that can be invested in this category.
The maximum maturity shall not exceed five years.
B. Federal agency or United States government-sponsored enterprise (“GSE”) obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. The aggregate investment in federal agency securities/GSEs shall not exceed 75 percent of the City’s total portfolio, and the securities of any one federal agency/GSE shall not exceed 40 percent of the City’s total portfolio. The maximum percent of agency callable securities in the portfolio shall be 20 percent. The maximum maturity shall not exceed five years.
C. Medium-term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States and rated in a rating category of “A” or the equivalent or better by a Nationally Recognized Statistical Rating Organization (NRSRO). The aggregate investment in medium- term notes shall not exceed 20 percent of the City’s total portfolio, and no more than 5 percent of the City’s total portfolio shall be invested in the medium-term notes of any one issuer. The maximum maturity shall not exceed five years.
D. Negotiable certificates of deposit or deposit notes issued by a nationally- or state-chartered bank, a savings association, or a federal association (as defined by Section 5102 of the Financial Code), or a state or federal credit union. Eligible negotiable certificates of deposit in amounts up to the FDIC insured limit do not require any credit ratings. Amounts above the FDIC insured limit must be issued by institutions that have long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO, or have short-term obligations rated “A-1” or its equivalent or higher by an NRSRO. No more than 5 percent of the City’s total portfolio shall be invested in the negotiable certificates of deposit of any one issuer, and the aggregate investment in negotiable certificates of deposit shall not exceed 15 percent of the City’s total portfolio. The maximum maturity shall not exceed five years.
E. Non-negotiable certificates of deposit with a maturity not exceeding three years from the date of trade settlement in state- or nationally-chartered banks or savings banks that are insured by the FDIC, subject to the limitations of California Government Code Section 53638. Amounts in excess of FDIC insurance coverage shall be secured in accordance with California Government Code Section 53652. No more than 5 percent of the City’s total portfolio shall be invested in the deposits of any one bank. The aggregate investment in non-negotiable certificates of deposit shall not exceed 15 percent of the City’s total portfolio. The maximum maturity shall not exceed three years.
F. Prime commercial paper with a maturity not exceeding 270 days from the date of trade settlement with the highest ranking or of the highest letter and number rating as provided for by
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City of San Bruno Page 5
Investment Policy
Resolution No. 2023-__
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an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph A or sub-paragraph B below:
i. The entity shall (1) be organized and operating in the United States as a general corporation; (2) have total assets in excess of $500,000,000; and (3) have debt other than commercial paper, if any, that is rated in a rating category of “A” or the equivalent or better by an NRSRO.
ii. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company; (2) have program-wide credit enhancements, including, but not limited to, overcollateralization, letters of credit or surety bond; and (3) have commercial paper that is rated at least “A-1” or the equivalent by an NRSRO.
The City may purchase no more than 10 percent of the outstanding commercial paper of any one issuer, and the aggregate investment in commercial paper shall not exceed 25 percent of the City’s total portfolio. No more than 5 percent of the City’s total portfolio shall be invested in the commercial paper of any one issuer.
G. Eligible banker’s acceptances with a maturity not exceeding 180 days from the date of trade settlement, rated at least “A-1” or the equivalent or better by an NRSRO, drawn on or accepted by a commercial bank whose deposits are insured by the FDIC, and whose senior long-term debt is rated in a rating category of “A” or the equivalent or better by an NRSRO at the time of purchase. No more than 5 percent of the City’s total portfolio shall be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 15 percent of the City’s total portfolio.
H. Repurchase agreements with a final termination date not exceeding 30 days collateralized by obligations of the U.S. Treasury, federal agencies and/or government-sponsored enterprises (described in sections A and B above). For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City’s approved master repurchase agreement. The purchased securities shall have a minimum market value including accrued interest of 102 percent of the dollar value of the funds borrowed. All collateral must be delivered to the City’s custodian bank by book entry, physical delivery, or by a third-party custodial agreement. The market value of the collateral securities shall be marked-to-the-market at least quarterly, and the value of the underlying collateral must be brought back up to 102 percent no later than the next business day. Market value must be calculated each time there is a substitution of collateral. No more than 5 percent of the City’s total portfolio shall be invested in repurchase agreements with any one counterparty, and the aggregate investment in repurchase agreements shall not exceed 10 percent of the City’s total portfolio.
The City or its custodian shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to the repurchase agreement.
The City may enter into repurchase agreements only with primary dealers of the Federal Reserve Bank of New York. Approved repurchase agreement counterparties shall have a short- term credit rating of at least “A-1” or the equivalent or better and a long-term credit rating in the rating category of “A” or the equivalent or better by a NRSRO. Repurchase agreement counterparties shall execute a City-approved master repurchase agreement with the City. The Chief Financial Officer shall maintain a copy of the City’s approved master repurchase agreement along with a list of broker/dealers who have executed this agreement.
Reverse repurchase agreements will not be permitted.
I. The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer (per Government Code Section 16429.1) for the benefit of local agencies up to the
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maximum amount permitted by LAIF.
J. The City may invest in the San Mateo County Investment Pool established by the San Mateo County Treasurer for the benefit of local agencies (as established in California Code Section 53684). No more than 20 percent of the market value of the City’s total portfolio may be invested in this category.
K. The City may invest in other pooled investment programs which are California Joint Powers Authorities established to provide California public agencies with professional investment services (California Code Section 53601 (p)). No more than 20 percent of the market value of the City’s total portfolio may be invested in this category.
L. Shares of beneficial interest issued by a diversified management company that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Provided that the money market funds are “no-load” (no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) have a rating of “AAA” or the equivalent by at least two NRSROs or have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). No more than 10 percent of the City’s total portfolio shall be invested in any one issuer and the aggregate investment in money market funds shall not exceed 20 percent of the City’s total portfolio.
M. Obligations of the State of California or any local agency within the State, including bonds payable solely out of revenues from a revenue-producing property owned, controlled, or operated by the State or any local agency or by a department, board, agency, or authority of the State or any local agency.
Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
Securities in this section must have a short-term rating of “A-1” or the equivalent or better by an NRSRO or a long-term rating in the category of “A” or the equivalent or better by an NRSRO.
No more than 5 percent of the City’s total portfolio shall be invested in any one municipal issuer, and the aggregate investment in municipal bonds shall not exceed 20 percent of the City’s total portfolio. The maximum maturity shall not exceed five years.
IX. Prohibited Investment Vehicles and Practices
State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to, futures and options. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited.
Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. Purchasing or selling securities on-margin is prohibited. The use of reverse repurchase agreements, securities lending, or any other form of borrowing or leverage is prohibited. The purchase of foreign currency denominated securities is prohibited. Local governments that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in
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securities owned and invested.
X. Selection of Broker/Dealers
The Chief Financial Officer shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the City to conduct transactions only with those authorized firms. To be eligible, a firm must be licensed by the State of California as a broker/dealer as defined in Section 25004 of the California Corporations Code, and:
A. Be recognized as a Primary Dealer by the Federal Reserve Bank of New York, or B. Report voluntarily to the Federal Reserve Bank of New York, or C. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).
Each authorized broker/dealer shall be required to submit and annually update a City-approved broker/dealer information request form. The Chief Financial Officer shall maintain a list of the broker/dealers that have been approved by the City, along with each firm’s most recent broker/dealer information request form.
If the City has not engaged the support services of an outside investment advisor while in the process of executing a particular transaction, the authorized broker/dealer(s) shall provide certification of having received and reviewed this Policy. For transactions initiated through an investment advisor, the investment advisor may use their own list of approved broker/dealers and financial institutions, which it will maintain and review periodically.
The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in Item F of the Authorized Investments section of this Policy.
XI. Competitive Transactions
Each investment transaction shall be competitively transacted with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction, and their bid and offering prices shall be recorded.
If the City is offered a security for which there is no other readily available competitive offering, then the Chief Financial Officer will document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.
XII. Selection of Banks
The Chief Financial Officer shall maintain a list of banks approved to provide depository and other banking services for the City. To be eligible for authorization, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5, shall be a member of the FDIC, and shall secure all deposits exceeding FDIC insurance coverage in accordance with California Government Code Section 53652.
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XIII. Safekeeping and Custody
The Chief Financial Officer shall select a bank to provide safekeeping and custodial services for the City, in accordance with the provisions of Section 53608 of the California Government Code. A City- approved safekeeping agreement shall be executed with the custodian bank prior to utilizing that bank’s safekeeping services. The custodian bank will be selected on the basis of its ability to provide satisfactory safekeeping services and the competitive pricing of those services.
The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery-versus-payment basis. All securities shall be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking, and commercial practices.
All investment securities will be delivered by either book entry or physical delivery and will be held by the City’s custodian bank, its correspondent bank, or its Depository Trust Company (DTC) participant account.
XIV. Maximum Maturity
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.
The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment, either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.
XV. Risk Management and Diversification
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
A. The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.
B. No more than 5 percent of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.
C. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity, or yield of the portfolio in response to market conditions or the City’s risk preferences.
D. If the credit ratings of any security owned by the City are downgraded to a level below the quality required by the Investment Policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. i. If a security is downgraded, the Chief Financial Officer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.
ii. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.
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XVI. Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer- term investments only with funds that are not needed for current cash flow purposes.
The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. Therefore, the City adopts the following strategies to control and mitigate its exposure to market risk:
A. The City will maintain a minimum of six months of budgeted operating expenditures in short-term investments to provide sufficient liquidity for expected disbursements.
B. The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
C. The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20 percent) of a market benchmark, an index selected by the City based on the City’s investment objectives, constraints, and risk tolerances.
XVII. Portfolio Performance
The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. An appropriate benchmark or benchmarks will be established against which portfolio performance shall be compared on a regular basis. When comparing the performance of the City’s portfolio, its rate of return will be computed net of all fees and expenses.
XVIII. Monthly Reporting
Monthly, the Chief Financial Officer shall submit to the City Council a report on the investment earnings and performance results of the City’s investment portfolio. The report shall include the following information:
A. Investment type, issuer, date of purchase and maturity, par value, and dollar amount invested in all securities, investments, and monies held by the City; B. A description of the funds, investments, and programs; C. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;
D. A statement of compliance with this Policy or an explanation for non-compliance; E. A statement of the City’s ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case; and F. A statement of transactions made during the month.
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XIX. Investment Policy Adoption
The Investment Policy shall be adopted by resolution of the City Council. The Policy shall be reviewed annually by the Chief Financial Officer, and any modifications made as a result must be approved by the City Council.
Policy History
Action Date Notes
Policy adoption by resolution December 8, 2020 Resolution No. 2020-97 Policy adoption by resolution September 12, 2023 Resolution No. 2023-__
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City Council Agenda Item
Staff Report
CITY OF SAN BRUNO
DATE: September 12, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Trisha Ortiz, City Attorney
SUBJECT: Introduce, Read by Title Only, and Waive Further Reading of an Ordinance Entitled “An Ordinance of the City Council of San Bruno Amending Section 2.04.110(b) of the San Bruno Municipal Code Establishing Procedures for Selection of Vice Mayor"
BACKGROUND:
Section 2.04.110(b) of the San Bruno Municipal Code provides a process for the selection of the vice mayor. The current process provides a rotation schedule for the position of vice mayor ranked by time of service on the council, with the longest serving member at the top of the rotation and newly elected members added to the bottom of the list. In the event that more than one newly elected member is added, the current Code provides for the names to be added in the order they appeared on the ballot. However, on March 22, 2022, the San Bruno City Council established a City district map and by-district elections of city council members. By-district elections mean that no two members will appear on the same ballot and the current rotational process will not work for selecting the order of two newly elected members. On May 9, 2023, the City Council considered an ordinance that would add new members to the rotational order according to district number, when members are elected at the same time. However, Council preferred a different approach and directed staff to return with an ordinance that provides for a random means of selection to add members to the rotational order.
DISCUSSION:
The proposed ordinance amends the procedure for selection of vice mayor so that it is consistent with the City’s new by-district election process. The ordinance retains the procedure whereby council members are appointed as vice mayor on a rotating basis according to amount of time served on council, but amends the process for appointment when two members are elected to council at the same time. The current process adds members to the rotational order according to the order they appeared on the ballot. The proposed ordinance provides that the names of council members, who are elected at the same time, will be added to the rotational order according to a random means of selection. There are a variety of random means of selection that could be used, such as drawing names out of a hat or drawing straws.
FISCAL IMPACT:
There is no immediate fiscal impact from the adoption of the ordinance. 165 of 168
Item 7.c.
Honorable Mayor and Members of the City Council
September 12, 2023