San Bruno City Council
February 13, 2024

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to frau d or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material missta tement of the financial statements, whether due to fraud or error, and design and perform audi t procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
x Obtain an understanding of internal control re levant to the audit in order to design audit procedures that are appropriate in the circumst ances, but not for the purpose of expressing an opinion on the effectiveness of the TDA Progra m’s internal control. Accordingly, no such opinion is expressed.
x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, signif icant audit findings, and certain internal control– related matters that we identified during the audit.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Program and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2023 and 2022, and the changes in its financial position or where applicable , its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated January 30, 2024 on our consideration of the TDA Program’s inte rnal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and 2 287 of 330

To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California

other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the result s of that testing, and not to provide an opinion on the effectiveness of internal control over financi al reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the TDA Program’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Berkeley, California
January 30, 2024
3 288 of 330

City of San Bruno
Transportation Development Act Program
Balance Sheet
June 30, 2023 and 2022
2023 2022
ASSETS
Intergovernmental receivables -$ 385,200$ Total assets -$ 385,200 $

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:

Accounts payable -$ 385,200$
Total liabilities - 385,200
Deferred inflows of resources:

Unavailable revenues - 385,200 Fund Balances:

Unassigned - (385,200)
Total liabilities, deferred inflows of
resources, and fund balance
s -$ 385,200 $
See accompanying Notes to Financial Statements.
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City of San Bruno
Transportation Development Act Program
Statement of Revenues, Expenditures and Changes in Fund Balances For the years ended June 30, 2023 and 2022
2023 2022
Revenues:

TDA Revenues 385,200$ -$
Total Revenues 385,200 -
Expenditures:

Huntington/San Antonio Bicycle Corridor - 385,200 Total Expenditures - 385,200 Net change in fund balances 385,200 (385,200) Fund Balances:

Beginning of year (385,200) -
End of year -$ (385,200)$
See accompanying Notes to Financial Statements.
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City of San Bruno Transportation Development Act Program Notes to Financial Statements
For the years ended June 30, 2023 and 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of San Bruno (City) received funds unde r the Transportation Development Act (TDA), Article

3.0 which provides funding for the Huntington/S an Antonio Bicycle Corridor and the Lomita Park Elementary Safe Routes to Schools project. The proj ect was funded by the Metropolitan Transportation Commission (MTC). The financial statements are intended to present the TDA Program, and not the financial position and the changes in fund balances of the City as a whole.

B. Basis of Accounting and Measurement Focus
The accompanying financial statements are prepared on the modified accrual basis of accounting.

Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet.

Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

C. Fund Accounting
The operations of the TDA Program are accounted for within a capital project fund by using separate project codes.

D. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

E. Receivables
During the course of normal operations, the fund ca rries various receivable balances for unreimbursed eligible TDA expenditures.

F. Program balance
The TDA fund balance is restricted by third parties to be used in accordance with the Transportation Development Act (TDA). The program had a fund balance of $0 and $(385,200) as of June 30, 2023 and 2022, respectively.
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City of San Bruno Transportation Development Act Program Notes to Financial Statements
For the years ended June 30, 2023 and 2022

2. TDA ARTICLE 3.0 REVENUES
During the fiscal years ended June 30, 2023 and 2022, the City expended amounts against authorized TDA allocation instructions from the Metropolit an Transportation Commission for the following projects:
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INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California
We have audited, in accordance with the auditing st andards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Transportation Development Act Program (TDA Program) of the City of San Bruno, California (City), as of and for the years ended June 30, 2023 and 2022, and the related notes to the financial statements, which collectively comprise the TDA Program’s basic financial statements, and have issued our report thereon dated January 30, 2024.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limi ted purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given thes e limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weak nesses. We identified a certain deficiency in internal control over the TDA Program, descri bed in the accompanying schedule of findings and responses as item 2023-001 that we consider to be a significant deficiency. 8 293 of 330

To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Program’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinio n on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City’s Response to Findings
Government Auditing Standards requests the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses.

The City’s response was not subjected to the other audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi & Associates, CPAs
Berkeley, California
January 30, 2024
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REPORT ON COMPLIANCE AND ON INTERNAL CONTROL

OVER COMPLIANCE FOR TRANSPORTATION DEVELOPMENT ACT FUNDS Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Bruno
San Bruno, California
Report on Compliance
Opinion
We have audited the City of San Bruno’s (City) compliance with the types of compliance requirements described in Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission applicable to the City’s Transportation Development Act Article 3 (TDA Program) for the years ended June 30, 2023 and 2022.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effe ct on its TDA Program for the years ended June 30, 2023 and 2022.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and Section 6666 of the Act; and the allocation instructions and resolutions of the Metropolitan Transportation Commission. Our responsibilities under those standards and the Act are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City an d to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s TDA Program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective inter nal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s TDA Program.
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To the Honorable Mayor and Members of City Council
of the City of San Bruno
San Bruno, California

Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of intern al control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influenc e the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the TDA Program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regard ing the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
x Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any si gnificant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 11 296 of 330

To the Honorable Mayor and Members of City Council
of the City of San Bruno
San Bruno, California

Other Matters
The results of our auditing procedures disclosed an instance of noncompliance which is required to be reported in accordance with Section 6666 of the Act and which is described in the accompanying schedule of findings and responses as item 2023-0 01. Our opinion on the TDA Program is not modified with respect to this matter.

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identifi ed in our compliance audit described in the accompanying schedule of findings and responses. The City’s response was not subjected to the other auditing procedures applied in the audit of complianc e and, accordingly, we express no opinion on the response.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over c o m p l i a n c e d o e s n o t a l l o w m a n a g e m e n t o r e m p l o y e e s , i n t h e n o r m a l c o u r s e o f p e r f o r m i n g t h e i r assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of Section 6666 of the Act and the allocation inst ructions and resolutions of the Metropolitan T r a n s p o r t a t i o n C o m m i s s i o n w i l l n o t b e p r e v e n t e d , o r d e t e c t e d a n d c o r r e c t e d , o n a t i m e l y b a s i s . A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of comp liance requirement of Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Gi ven these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. We identified a certain deficiency in internal control over compliance in the TDA Program, described in the accompanying schedule of findings and responses as item 2023-001.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 12 297 of 330

To the Honorable Mayor and Members of City Council
of the City of San Bruno
San Bruno, California

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the internal control over compliance fi ndings identified in our compliance audit described in the accompanying schedule of findings and responses. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the re sults of that testing based on the requirements of Section 6666 of the Act, and the allocation in structions and resolutions of the Metropolitan Transportation Commission. Accordingly, this report is not suitable for any other purpose.

Badawi and Associates, CPAs
Berkeley, California
January 30, 2024
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City of San Bruno Transportation Development Act Program Schedule of Findings and Responses
For the years ended June 30, 2023 and 2022
2023-001: Timely Submission of Fiscal Audit to Metropolitan Transportation Commission Criteria: Per the allocation instructions to the City of San Bruno from the Metropolitan Transportation Commission, the City is required to submit a fiscal audit in accordance with Section 99245 of the Public Utilities Code (PUC) for each year expenses are encumbered against the TDA Program. PUC Section 99245 states that audits should be submitted within 180 days of the end of the fiscal year.

Condition: For the fiscal year ended June 30, 2022, the City engaged a contractor to work on the TDA project and incurred related expenditures. However, the public works department repeatedly told the finance department that no TDA expenditures occurred for fiscal year 2021-22.

Cause: The City did not timely identify that expenditures for the TDA Program incurred during the fiscal year ended June 30, 2022 were to be audited for that fiscal year.

Effect: The finance department incorrectly determined that a TDA audit for the fiscal year ended June 30, 2022 was not required.

Recommendation: We recommend that the City update its policies and procedures over TDA Program expenditures to ensure that all departments involved are aware of the actions and transactions that trigger a TDA audit.

Management’s Response: Management acknowledges the need for corrective actions to address the failure to identify TDA expenditures in the year-end close procedures. Staff turnover is at the core of this issue, resulting in the loss of institutional knowledge and a breakdown in interdepartmental communication. We are developing a structured and robust grants management procedure in response to this recommendation. This procedure will specifically focus on proper revenue and expenditure tracking, emphasizing timely and comprehensive year-end processes. 14 299 of 330

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 13, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Peter Gilli, Community Development Director SUBJECT: Consider Adoption of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Amending Articles II (Subdivisions) and Article III (Zoning) of Title 12 (Land Use) for Minor Amendments and Finding Such Action Exempt from the California Environmental Quality Act”
BACKGROUND:

At the January 23, 2024 City Council Meeting, the City Council, by a 5-0 vote, introduced, read by title only and waived further reading of an ordinance entitled of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Amending Articles II (Subdivisions) and Article III (Zoning) of Title 12 (Land Use) for Minor Amendments and Finding Such Action Exempt from the California Environmental Quality Act.”
DISCUSSION:

The purpose of this consent calendar item is to consider adoption of an ordinance that would make minor amendments to the San Bruno Municipal Code to clarify and provide flexibility. A summary listing of the amendments is as follows:

1. Section 12.96.150 - Allow greater heights for larger M-1 Light Industrial projects

2. Section 12.44.070 - Clarify the City can approve flexible street standards in subdivisions

3. Section 12.84.170 (B) - Clarify when structures must meet setbacks

4. Section 12.84.170 (E) - Allow flexibility for determining the front setback for corner lots

5. Section 12.100.030, Table 12.100 -1 - Reinstate parking requirement for assembly uses

6. Section 12.80.297 - Add Lot Coverage Definition

7. Section 12.80.506 - Add Veterinarian Definition
FISCAL IMPACT:

There is no fiscal impact.
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Item 6i
Honorable Mayor and Members of the City Council
February 13, 2024

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:

Adopt an Ordinance entitled “An Ordinance of the City Council of the City of San Bruno Amending Articles II (Subdivisions) and Article III (Zoning) of Title 12 (Land Use) for Minor Amendments and Finding Such Action Exempt from the California Environmental Quality Act” ALTERNATIVES:

1. Do not adopt the Ordinance.

2. Continue the item and direct staff to make modifications to the ordinance.

ATTACHMENTS:

1. Ordinance

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ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO AMENDING ARTICLES II (SUBDIVISIONS) AND III (ZONING) OF TITLE 12 (LAND USE) OF THE MUNICIPAL CODE BY

AND FINDING THE AMENDMENTS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT
THE CITY COUNCIL OF THE CITY OF SAN BRUNO DOES ORDAIN AS FOLLOWS:

Section 1. Based on the facts in the Staff Report, written and oral testimony, and exhibits presented, the City Council hereby makes the following findings of facts in support of the proposed Municipal Code amendments:

A. The Legislature of the State of California has in Government Code Sections 65302, 65560, and 65800 conferred upon local governments the authority to adopt regulations designed to ensure the public health, safety, and general welfare of its citizenry; and B. The proposed San Bruno Municipal Code Amendments are consistent with the General Plan and Specific Plans of the City of San Bruno; and
C. It is in the public interest for the City to establish reasonable, up-to-date, and comprehensive development standards and regulations; and
D. The proposed Municipal Code Amendments will not be detrimental to the health, safety, morals, comfort and general welfare of the Citizens of San Bruno.

E. The zoning code amendments were considered by the San Bruno Planning Commission on December 19, 2023, at a duly noticed public hearing. At the conclusion of the public hearing, the Planning Commission adopted Resolution No. 2023-07 recommending that the City Council adopt the zoning code amendments.

F. A notice of public hearing was duly posted for consideration of this proposed ordinance at the City of San Bruno City Council meeting on XX 2024, and on said date, the public hearing was opened, held and closed and the Ordinance was introduced.

Section 2. Editorial guidance. The following non-substantive editorial style is used. Words that are underlined are additions; words with a line through are deleted; and words in [brackets] are instructions for the Code publisher and which instructions are not to be published in the City’s Code unless worded as an “editor’s note”.

In addition, the Code publisher will arrange definitions and other changes alphabetically to conform to the Code’s current style and will, as needed, re-order numbering and lettering changes caused by these amendments. The City Clerk and the City Attorney are authorized to work with the Code Publisher to effectuate non-substantive amendments to ensure consistency as to form and style of the Code.

Further, the code publisher is directed to substitute the name of an office and/or position wherever possible rather than use a gender pronoun without further or formal amendments. 302 of 330
ATTACHMENT 1
Section 3.A new section 12.080.297 is hereby added to Chapter 12.80 (Definitions) of Article III (Zoning) of Title 12 (Land Use) of the Municipal Code to read as follows:
“12.80.297 Lot Coverage means all the area of a lot, as projected on a horizontal plane, which is:

1. Covered by enclosed structures or buildings, including accessory structures; or

2. Covered by structures such as decks, porches, stairs and/or landings that are constructed more than one foot above existing grade.

3. Lot coverage excludes uncovered porches, landings decks and stairs constructed at grade or less than one foot above grade.”
Section 4.A new section 12.080.506 is hereby added to Chapter 12.80 (Definitions) of Article III (Zoning) of Title 12 (Land Use) of the Municipal Code to read as follows:
“12.80.506 Veterinarian. Establishments where household animals receive medical and surgical treatment and may be temporarily boarded (more than one-night stay) in association with such medical or surgical treatment. Short-term animal boarding may be provided as an accessory use.”
Section 5.Section 12.84.170 (Exceptions to setback requirements) of Chapter 12.84 (General Provisions, Conditions and Exceptions) of Article III (Zoning) of Title 12 (Land Use) of the Municipal Code is hereby amended to read as follows:

12.84.170 Exceptions to setback requirements.

A. Architectural features, such as cornices, eaves, and canopies, shall not be constructed closer than three feet from any side lot line nor project more than six feet into any required front or rear yard.

B. Open porches, decks, landings and outside stairways exceeding one foot above existing grade may project not closer than three feet from any side lot line and not exceeding six feet into any required front or rear yard.

C. Where sixty percent or more of the lots in a block have been improved with buildings, the minimum required front yard shall be the average of the front yard of the improved lots if said average is less than the requirements of this article.

D. On any substandard lot which qualifies as a building site pursuant to the provisions of this article, the width of each side yard may be reduced to ten percent of the width of such parcel, but in no case to less than three feet.

E. In cases where existing structures were built with setbacks which establish the existing front, side and rear yards, or for proposed new structures, a request by the property owner or developer for reassignment of yards can be made to the Community Development Director. The Community Development Director will consider the existing neighborhood development pattern, adjacent property structure locations and potential impacts to adjoining properties prior to approval.

F. Whenever the first story of a dwelling in an R-1 district projects within a required side or rear setback due to the granting of a variance, architectural review permit, or as built, due to the status of the projection as a nonconforming use, or where such projection has existed for not less than ten years, the second story of such dwelling may be built or added to so as to project within any such

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setback to a degree not greater than the projection of the first story without the necessity of a variance or architectural review permit.”
Section 6. Section 12.96.150 (M-1 Industrial District) of Chapter 12.96 (Establishment of Districts), Section 12.96.150 of Article III (Zoning) of Title 12 (Land Use) of the Municipal Code is hereby amended to read as follows:

12.96.150 M-1 industrial district.

A. Purpose. To establish areas for warehousing, light manufacturing, and fabrication.

B. Permitted Uses. The following uses, conducted entirely within an enclosed structure, are permitted in the M-1 district:

1. Warehousing, wholesaling, and distribution on sites less than one acre;

2. Light manufacturing and processing on sites less than one acre;

3. Emergency shelters, subject to the provisions set forth in Section 12.96.205.

C. Conditional Uses. Conditional uses, conducted entirely within an enclosed structure, subject to obtaining a use permit and architectural review permit, are as follows:

1. Industrial and manufacturing uses that may be obnoxious by reason of the emission of dust, odor, noise, glare or other nuisance, including uses such as the following:
a. Auto-related uses such as vehicle repair and maintenance and gas and service stations; b. Auto wrecking;
c. Building materials;
d. Contractor yards;
e. Manufacture, handling, or storage of dangerous materials; f. Lumberyards;
g. Any use which in the opinion of the planning commission is similar to the above conditional uses.
h. Firearm dealers, subject to the limitations set forth by Section 6.08.070(H). i. Cannabis distribution facilities subject to the provisions of Chapters 4.70 and 12.300. j. Any warehousing, wholesaling, distribution or other light industrial use on sites over one acre in size.

D. Development Regulations. Development regulations for the M-1 district are as follows:

1. Minimum building site: Eight thousand square feet.

2. Minimum lot width: Sixty feet.

3. Required minimum setbacks: None.

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4. Maximum coverage by all structures: Sixty percent.

5. Maximum allowable height: Thirty-five feet. Fifty feet for buildings located on properties greater than one acre in size.

6. In the case of conditional uses, additional regulations may be required.

7. Parking: As set forth in Chapter 12.100.

8. Architectural review permit: As set forth in Chapter 12.108.

Section 7. The “Civic/Institutional” parking requirements of Table 12.100-1 (Citywide Off-Street Parking Requirements) of paragraph A. of Section 12.100.030 (Off-Street parking requirements) of Chapter 12.100 (Off-Street Parking and Loading) of Article III (Zoning) of Title 12 (Land Use) of the Municipal Code is hereby amended to read as follows, with all other provisions in Section

12.100.030 and Table 12.100-1 remaining in effect without amendment:

Use Category Land Uses Number of Required Parking Spaces Community Facilities, Places of
Worship
1 space per 300 100 square feet of floor
area
Hospitals, Nursing and
Convalescence Homes 1 space per 400 square feet of floor area Civic /
Institutional
Emergency Shelters
1 space for every 10 beds, or the
community and economic development
director may reduce the parking
requirements if the emergency shelter can
demonstrate a lower parking demand
Section 8. Paragraph A (Type of Street) of Section 12.44.070 (Street Improvements) of Chapter

12.44 (Improvement Standards) of Article II (Subdivisions) of Title 12 (Land Use) of the Municipal Code is hereby amended to read as follows, with all other provisions of Section 12.44.070 remaining in effect without amendment:

12.44.070 Street improvements.

A. Type of Street. Public streets shall be designed based on the standards below, except that an alternative design may be approved as part of a tract or parcel map.

Type Right-of-Way Width Curb Width Traffic Index
Major 96 feet 74 feet 8+
Collector with Bike Lanes 66 feet 48 feet 7
Collector 60 feet 40 feet 6
Minor 50 feet 36 feet 5
Major Industrial Without
Parking
60 feet 40 feet 8

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Minor Industrial Without
Parking
50 feet 36 feet 7
Residential Cul-de-sacs Radius-50 feet Radius-40 feet
Industrial Cul-de-sacs Radius-60 feet Radius-50 feet
Section 9. Pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3) and 15378 (b)(5), that consideration of this Ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a Project that has the potential for causing a significant effect on the environment.

Section 10. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The City Council of the City of San Bruno hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

Section 11. This Ordinance shall take effect and be in force 30 days after its adoption.

Section 11. The City Clerk shall publish this Ordinance according to law.

Rico E. Medina, Mayor
ATTEST:

Lupita Huerta, City Clerk

APPROVED AS TO FORM
Trisha Ortiz, City Attorney

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---o0o---
I hereby certify that the foregoing Ordinance No. ____
was introduced on ____________, 2024, and adopted at a
regular meeting of the San Bruno City Council on
___________, 2024, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

RECUSE: COUNCILMEMBERS:
____________________________
Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 13, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
SUBJECT: Consider Adopting the Fiscal Year 2024-25 Top Priority Initiatives and Budget Principles, and Provide Direction on Requests for Additional Information for Initiatives that are Currently On Hold Pending Resource Allocation
BACKGROUND:

The City Council conducts an annual strategic initiatives and prioritization retreat to provide City staff with the direction required for the upcoming fiscal year budget preparation. The Council held the Annual Strategic Initiatives and Prioritization Retreat on February 2, 2024, at the San Bruno Senior Center.

DISCUSSION:

At the retreat, City Council received a report on anticipated budgetary headwinds, a development pipeline update, recommended budget principles and a preliminary General Fund forecast, a review of Fiscal Year 2023-24 (FY24) strategic initiatives, and a preview of the Fiscal Year 2024-25 (FY25) Capital Improvement Program budget. Following each of City staff’s presentations, the Council engaged in questions and discussion and provided input to staff for consideration and refinement. The ultimate goal of the retreat was to reach consensus on the FY25 Strategic Initiatives and Top Priorities. This action requests City Council formal adoption of the City Council’s consensus.

FY25 Initiatives and Top Priorities
For FY25, City staff requested that the City Council review FY24 adopted initiatives and reach a consensus on projects continuing into FY25 as well as identify five “top priority” initiatives (“Priority Initiatives”). This approach differs from previous years by focusing staff resources on several initiatives that the Council desires to complete or make substantial progress in the upcoming fiscal year. The Council identification of Priority Initiatives provides the City Manager with clarity to strategically redeploy authorized City Council appropriations to achieve Priority Initiative milestones. An example of a redeployment is pausing staff or contractor resources on a strategic initiative that is not a Priority Initiative to focus the capacity on a top priority, as needed, to achieve identified milestones.

The City Council reached a consensus on initiatives for FY25 (Attachment 1) including five Priority Initiatives. City staff has prepared conceptual scopes of work and budget estimates for the Priority Initiatives to assist the City Council in considering these top priorities for FY25. If 308 of 330
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7 6
4 approved by the City Council, staff will prepare comprehensive scope of work descriptions with quarterly milestones and budgets for consideration and adoption in the FY25 budget. The Priority Initiatives, pending City Council final adoption, are as follows:

1. Assess the fiscal feasibility of the Transit Corridor Plan The Transit Corridor Plan (TCP) was adopted in 2013, and established a vision, development framework infrastructure needs, and an implementation plan for revitalizing the major corridors of El Camino Real, San Bruno, San Mateo and Huntington Avenues within San Bruno.

The plan identified 26 implementation actions, which were to be implemented in the Short Term (1-3 years), Mid-Term (4-6 years), and Long Term (6-10 years). Most actions were assigned to the City. As 11 years have passed since the TCP adoption, the City should assess how many of the implementation actions were completed, and what kept other actions from being completed. Staff believes financial reasons were a key factor in why more implementation actions were not completed. Achieving the vision relies on a combination of City and private efforts. The costs associated with achieving the TCP vision are significant for the City, for public improvements, and for property owners, for private improvements and development.

The proposed assessment of the fiscal feasibility would identify realistic funding options for the City, with analysis of case studies where other communities have made such investments and how the tax base was strengthened. The assessment would also identify what new private development in the current market actually requires for the project to be financially feasible. This analysis would include detailing the specific changes in land use development regulations the City should consider adopting to facilitate development projects, as well as methods the City can utilize to incentivize owners and tenants to improve their properties.

2. Conduct a comprehensive employee classification and compensation study An employee classification and compensation plan is a comprehensive review of the City’s current classification system (job descriptions) and comparable salaries for similar work in the City’s comparative agencies.

The City will retain a consultant to complete a 360-degree review of each position (i.e., the position, their supervisor, human resources, and the position’s bargaining unit representatives) to document each position’s responsibilities, the time spent on tasks, and skills necessary to succeed in the classification. Once complete, the consultant will identify classifications in comparable cities performing the same tasks.

The consultant will then conduct a total compensation survey with the equivalent classification established in each comparative agency, which considers base pay, pay premiums, health and welfare benefits, pension/retirement benefits, vacation allowances, paid holidays, paid and unpaid closures, etc. The classification study can take up to 18 months to complete, given the level of data collection and the number of parties involved. A compensation study takes an additional six months. The resulting reports do not guarantee any impact on compensation, given that compensation is subject to negotiations with the applicable bargaining unit representatives. Estimated project completion is June 30, 2026.

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4 3. Finalize Downtown Park improvement plans: Centennial Plaza, Florida and Posy Parks The Downtown Park Projects are three independent projects that will improve the aesthetics, vitality, and public use of the Downtown. The Centennial Plaza project will provide a central urban public space that will be functional for small community events, musical performances, gatherings and general public social use with seating areas and landscaping. Bids were received for Centennial Plaza in January and the consideration of award of the construction contract is scheduled for the February 13, 2024 City Council Meeting. If approved, a project manager will be procured and construction on the project will begin in late March or early April. The project is expected to take approximately 6 months to complete.

The Florida Park Project is in the final stages of design. It is anticipated that 95% design construction plans, construction estimates, and bid documents will be completed in March 2024. The project as currently proposed will feature a multiuse lawn, walkways and benches, a small exercise area, a fenced play area, a new fence, heart themed seating, and a refurbished entry edging fence.

The Posy Park project scope of work includes an examination of improvements to the existing inoperable fountain, existing artwork that is in need of repair, improved landscaping, bike lockers, and benches. Staff is working with Waterworks and a leak detection company to determine the origin of the leaks in the fountain to put together a scope of work moving forward.

4. Initiate Downtown beautification efforts including greening, banners, and marquee sign This is a multifaceted project that includes the revitalization of the planters along San Mateo Avenue and the replanting of street trees on Jenevein Avenue and the southern end of San Mateo Avenue. This portion of the project will require identification and repair of the lateral irrigation lines, sidewalk work, excavation and replanting of planters, and ongoing maintenance. There are many unknowns with the under-sidewalk irrigation system that will not surface until work has begun. Along with the greening efforts, the north and south end medians will be addressed.

The second part of the project is to design and produce a new collection of custom themed City street pole banners for various times of the year. There would be three sets of new banners that would be rotated seasonally as follows:
oHoliday/winter banners for mid-November through mid-January; oPatriotic/summer banners for Memorial Day through Labor Day; and, oGeneral San Bruno theme banners for remaining times of the year.

The final part of the project is the replacement of the marquee sign at the southern end of San Mateo Avenue (at El Camino Real), which was damaged, and the top half removed with a scrolling digital/LED board

5. Stabilize CityNet’s fiscal sustainability
As of June 30, 2023, the CityNet Fund (Fund) had a negative equity balance of $21.5 million, comprised of negative cash and non-cash liabilities such as unfunded pension liabilities. The negative equity balance included $16.0 million owed to the General Fund due to multi-year reliance on advances from the General Fund to sustain operating expenditures, including franchise fees, internal service allocations, and general overhead allocations.

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4 The Fund has been experiencing annual operating losses, including losses of $794,852 in FY23 and $859,995 in the prior year. City staff is working to improve CityNet’s revenue and subscription margins. One major step was increasing service rates between 9% and 12% effective August 1, 2023, which improved year-over-year operating income for the first six months of Fiscal Year 2023-24 (FY24).

However, additional rate increases, potentially between 2% and 5%, are being considered to further financial stability. In FY24, City staff will evaluate whether rate increases are sufficient to begin repayment of the amounts owed to the General Fund.

The CityNet Enterprise may no longer be a going concern if rate increases are insufficient to repay amounts owed to the General Fund. In December 2023, the City issued a Request for Interest to gauge the private-sector’s appetite to acquire CityNet's customer base and infrastructure as part of a broader strategy to ensure continuity of services to the community. Interest has been shown and staff will continue to explore possible new ownership of CityNet.

FY25 Initiatives Carried Forward from FY24
City staff is currently making progress toward twelve of the City Council’s 32 adopted FY24 initiatives. In the discussion, City staff provided an update on the Climate Action Plan explaining that work is currently underway to assess the feasibility of the initiative. As part of the budget process, City staff will reconfirm that projects have sufficient resources to deliver the expected scope. As part of this process, staff may need to develop the expected scope to ensure clarity of expectations and agreed-upon timelines and milestones. The following initiatives are expected to continue into FY25:
•Adopt an Affordable Housing Fund Implementation Plan
•CAFE Age Friendly Certification Process
•Cannabis Regulations and Permitting
•CBC Governance and Workplan Review
•City Offices Renovations
•Citywide Wildfire Mitigation Project & Public Education Programs Covering Fire Safety and Emergency Preparedness
•Climate Action Plan
•Crestmoor Wildfire Mitigation Project
•Expand and improve productivity for the Community Development Department •Explore alternative options to the regulated output (RO) streetlight system. •HEART Committee, TSPC Committee, Culture & Arts Committee Review •Implement Online Permitting
Initiatives On Hold Pending Resource Allocation
City staff transmitted the following list of FY24 strategic initiatives that are currently on hold pending resource allocation. Updates to the adopted FY24 strategic initiative tiled noted in red in response to feedback provided by City Council on February 2nd. •Adopt-a-Drain Program
•Affordable housing, including development partnership
•City of San Bruno sign/arch at Caltrain Station
•Citywide metrics

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4 •Citywide street sweeping
•Community fiber upgrade
•Designation of special parking zones
•Develop an economic development initiative around attracting businesses and developers to execute on the Transit Corridor Plan vision •Develop an economic development program focused on small, medium, and large businesses
•Downtown Streetscape Plan Improvements Downtown Greening / Landscape Plan •Establish a City Council ad hoc committee to examine solutions to address citywide parking
•Summer Saturdays or Sundays for street closures
•Expanded Way finding signage (excludes Downtown parking lots way finding signage) FY25 Budget Principles
The City Council received the FY25 recommended budget principles, as outlined in Attachment 2, which are crucial in guiding both the development of the City Manager's recommended budget and making the highest and best use of available funds in any given fiscal year. Budget principles establish a foundation for sound financial management and strategic planning, aiming to align resource allocation with City Council directed service levels and priorities while also achieving a balanced budget. The recommended principles emphasize fiscal sustainability, acknowledging the risks posed by financial uncertainties to the City's stability and capacity to address challenges. The principles also establish transparency and accountability in the budgeting process by enhancing the City's financial health, improving services to the community, and establishing the City as a preferred employer.

During their retreat presentation and discussion, Council members raised questions about the role of a vacancy factor in the City's financial planning and how salary savings are presented when viewing historical and forecast personnel costs. City staff’s recommendation to include a vacancy factor is intended to present a more accurate reflection of salary expenses, recognizing the likelihood of unfilled positions, and making year-over-year comparisons more meaningful.

With a vacancy factor, the City Council has discretion to allocate funds from these vacancies towards more urgent needs or to improve City reserve fund balances. For the FY25 budget, City staff will clearly outline the anticipated vacancy factor, and related salary savings, and detail the allocation of these savings within the proposed budget. Ultimately, the decision to adopt the recommended vacancy factor and the programs funded by salary savings rests with the City Council.

FISCAL IMPACT:

There is no fiscal impact resulting from this action. City staff will prepare the City Manager’s Recommended Budget based on the City Council’s final action on this item. Initiatives without sufficient funding will be identified in the Recommended Budget.

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.

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4 RECOMMENDATION:

Consider Adopting the Fiscal Year 2024-25 Priority Initiatives and Budget Principles, and Provide Direction on Requests for Additional Information for Initiatives that are Currently On Hold Pending Resource Allocation.

ALTERNATIVES:

1. Modify the FY25 Initiatives or Top Priorities

2. Modify the FY25 Budget Principles
ATTACHMENTS:

1. FY25 Initiatives Summary

2. FY25 Budget Principles

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City of San Bruno
DRAFT Fiscal Year 2024-25 (FY25) Strategic Initiatives
Ref No. Initiative
1 Assess the fiscal feasibility of the Transit Corridor Plan 2 Conduct a comprehensive employee classification and compensation study 3 Finalize Downtown Park improvement plans: Centennial Plaza, Florida and Posy Parks
4 Initiate Downtown beautification efforts including greening, banners, and marquee sign
5 Stabilize CityNet’s fiscal sustainability
Ref No. Initiative
6 Adopt an Affordable Housing Fund Implementation Plan
7 CAFE Age Friendly Certification Process
8 Cannabis Regulations and Permitting
9 CBC Governance and Workplan Review
10 City Offices Renovations
11 Citywide Wildfire Mitigation Project & Public Education Programs Covering Fire Safety and Emergency Preparedness
12 Climate Action Plan
13 Crestmoor Wildfire Mitigation Project
14 Expand and improve productivity for the Community Development Department 15 Explore alternative options to the regulated output (RO) streetlight system 16 HEART Committee, TSPC Committee, Culture & Arts Committee Review 17 Implement Online Permitting
Ref No. Initiative
18 Adopt-a-Drain Program
19 Affordable housing, including development partnership 20 City of San Bruno sign/arch at Caltrain Station
21 Citywide metrics
22 Citywide street sweeping
23 Community fiber upgrade
24 Designation of special parking zones
25 Develop an economic development initiative around attracting businesses and developers to execute on the Transit Corridor Plan vision 26 Develop an economic development program focused on small, medium, and large businesses
27 Downtown Streetscape Plan Implementation
28 Establish a City Council ad hoc committee to examine solutions to address citywide parking
29 Summer Saturdays or Sundays for street closures
30 Expanded Citywide way finding signage (excludes Downtown parking lots way finding signage)
Presented alphabetically, by category
FY25 Initiatives Carried Forward from
FY24
FY25 Top Priority
InitiativesInitiatives On Hold Pending Resource Allocation 314 of 330
ATTACHMENT 1

City of San Bruno
DRAFT FY25 Budget Principles

1. Actively pursue revenue enhancements and strive to achieve full cost recovery for all fee-based services, except where the City Council establishes a public interest in providing a subsidy.

2. Enhance and maintain core City services and infrastructure by prioritizing City Council adopted initiatives and strategies that contribute to the quality of life in San Bruno.

3. Promote the City’s long-term financial sustainability through monitoring and reporting on changes in unfunded liabilities and including those changes in the City’s long-term forecast.

4. Evaluate one-time revenues for highest and best investment.

5. Improve productivity through continual review of City services, identifying new programs/ initiatives and enhancing, reducing, or eliminating existing programs.

6. Proactively manage the loss of institutional knowledge through succession planning efforts including the ability to provide for overlap in critical positions, at the discretion of the City Manager.

7. Manage staff capacity to efficiently deliver services to the community through investment in new technologies that drive efficiency and productivity.

8. Incorporate a budget assumption for employee vacancies and resulting salary savings into the forecast.

9. Develop programs and initiatives that strengthen San Bruno’s standing as an employer of choice to retain and attract highly qualitied personnel.

10. Clearly define the cost and timing of all cash outlays associated with major projects, to allow investment of idle cash, while maintaining liquidity.

11. Communicate the City’s financial position by continuing to refine the budget document and provide comparison to actual results, while enhancing the public’s access to financial information.

12. Increase reserve funds, on an annual basis, as funds are available. 315 of 330
ATTACHMENT 2
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 13, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Travis M. Karlen, Community Services Director SUBJECT: Consider Adoption of a Resolution:
 Approving the design of the Centennial Plaza Improvements;  Authorizing the City Manager to Execute a Construction Contract with Suarez and Munoz Construction Inc. for the Centennial Plaza Improvement Project in an amount not to exceed $1,106,728;  Approving a construction contingency of $115,000;
 Approving the procurement of a comprehensive project and construction project manager in an amount not to exceed $166,000;  Approving a budget adjustment of $576,259 from the Community Facilities Impact Fee Fund for the completion of the project; and  Determining the project is exempt under the California Environmental Quality Act
BACKGROUND:

Centennial Plaza is located at the intersection of Jenevein Avenue and San Mateo Avenue and serves as the visual entrance for those that enter downtown via Jenevein Avenue. The plaza is currently closed to members of the public and barricaded with ropes since the area has not been landscaped for public use and subsurface footings from a prior structure on the site have not been mitigated or removed. The Plaza includes a variety of plants that lack curb appeal.

Additional plantings in the middle of the Plaza divide the space and make for a sectioned off appearance. This property was originally purchased by the City in 1996, and subsequently acquired by the San Bruno Redevelopment Agency in 2002. In 2008, the City improved the site with landscaping, a fountain and with the installation of a mural. With the dissolution of the Redevelopment Agency in 2012, the property was transferred to the City for use as a public open space plaza. In 2014, the City Council adopted a resolution dedicating the property in honor of the City’s City Centennial to make commemoration of the City’s Centennial a central and enduring feature within the community.

Long term use of the property as a public plaza is consistent with the goals and the vision of the San Bruno Transit Corridors Plan and Downtown Streetscape Plan that calls for public gathering areas and green spaces to be provided in the Downtown to complement new business and residential development and to encourage public use and enjoyment of the Downtown corridor.

The City began working with Callander Associates Landscape Architects (CALA) in July 2021 to develop a conceptual design to activate Centennial Plaza with a short-term solution for the site.

The approved amount for this original Consultant Services Agreement was $25,628. Technical 316 of 330
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February 13, 2024

issues identified at the site indicated any design solution would require complex work with grading and electrical work, and Staff amended the original contract with CALA in the amount of $44,403 to develop a concept for Council review.

Staff introduced conceptual plans to the City Council for direction in May 2022. The direction of the Council was to work with the City Council Downtown Committee to create a final concept plan. In August 2022, City Council approved the Conceptual Plan developed with the City Council Downtown Committee and directed Staff to proceed and reach out to the San Bruno Community Foundation to request funding for the project.

In November 2022, the City was awarded a Strategic Grant from the San Bruno Community Foundation in the amount of $500,000 to support the Centennial Park renovation contingent on the City Council approving the gap funding required to fully fund the project.

In December 2022, City Council authorized an amendment to the Agreement with CALA for additional design services to include preparation of construction documents for Centennial Plaza for up to $105,484 and allocated $25,515 from the Citywide Development Impact Fee – Community Facilities Impact Fee Fund.

On June 13, 2023, City Council authorized an amendment to the Agreement with CALA for additional design services to include the design of a bioretention area to treat rainwater. The amendment amount of $17,250 was allocated from the Citywide Development Impact Fees – Community Facilities Impact Fee Fund. Total design services cost, including construction documents, totaled $192,765.
.

DISCUSSION:

In November 2023, Staff issued a notice inviting bids for the construction of the project. The notice inviting bids was sent to contractors, posted on the City’s website, and provided to construction distribution rooms. The project was also advertised twice in the San Mateo Daily Journal newspaper on November 27, 2023, and December 4, 2023. On January 16, 2024, staff conducted the bid opening for the project and received two bids. The total bid includes four bid alternates. The award of bid was based on the lowest responsive base bid:

Construction Company Base Bid Total Bid
Suarez and Munoz Construction Inc. $828,008.00 $1,106,728.00 Cal-Pacific Construction Inc. $912,616.50 $1,141,056.50

The lowest base bid received was from Suarez and Munoz Construction Inc.in the amount of $828,008. Suarez and Munoz Construction Inc. has completed numerous similar projects for public agencies such as Hayward Area Recreation and Park District, Emeryville, and San Jose.

Based on their experience and performance with these public agencies, staff determined that Suarez and Munoz Construction Inc. meets the qualifications to perform the work for the Centennial Plaza Improvement Project as specified in the contract documents.

This project is consistent with community input received during the Foundation’s Community Listening Campaign 2.0, where downtown San Bruno upgrades and beautification were identified as a top community need. In the follow-up to adopting Strategic Plan 2.0, the Board in 2021 identified community-building and economic vitality among its strategic grantmaking priorities.

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If the City Council approves this project, to increase capacity to deliver the project, staff is recommending procuring comprehensive project and construction management support. Staff will be referring to the City’s on-call list for project and construction management and inspection services to provide this service. The estimated cost for these consultant services is not to exceed $166,000.

To provide design support during construction, CALA will be retained to respond to questions regarding the design, approve submittals, and complete the as-built drawings.

Should the project be awarded, Staff anticipates starting construction in March or April 2024, and the project will take approximately 165 calendar days. .

FISCAL IMPACT:

The adopted budget includes $1,007,765 for this project with $811,469 remaining for construction, contingency and project management. To move forward with the project as proposed requires the Council to appropriate an additional $576,259 from the Community Facilities Impact Fee Fund.

Estimated total Project costs are as follows:

Consultant Design - Completed $192,765
Engineering Review $2,462
Construction Contract $1,106,728
Construction Contingency $115,000
Project Management $166,000
Total $1,582,955

The City Council may choose to eliminate any of the four additional bid alternates. These alternates were part of the original project design, however, were bid as alternates due to the expected costs. The alternates include festoon lighting, water bottle filler, stage trellis, and two decorative cubes.

Elimination of any or all project alternates will reduce the cost of the project. Removing elements will reduce the cost of the project. Elimination of these elements will affect the overall design and functionality of the park. The table below shows the reduction in cost for each alternate to the project should the City Council choose to move forward by eliminating any or all these elements. The figures include contingency and project management.

Alternate Reduction to Total Project Cost if
Eliminated
Alternate #1 Festoon Lighting -$125,375
Alternate #2 Water Bottle Filler -$114,900
Alternate #3 Stage Trellis -$105,000
Alternate #4 Decorative Concrete Cubes -$3,125

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ENVIRONMENTAL IMPACT:

The action is not a project subject to CEQA. This project falls within the Categorical Exemptions set forth in CEQA Guidelines Section 15301 through 15333(c), which describes Class 1 Existing Facilities and Class 2, Replacement or Reconstruction.

RECOMMENDATION:

Adopt a Resolution:
Approving the design of the Centennial Plaza Improvements; Authorizing the City Manager to Execute a Construction Contract with Suarez and Munoz Construction Inc. for the Centennial Plaza Improvement Project in an amount not to exceed $1,106,728;
Approving a construction contingency of $115,000;
Approving the procurement of a comprehensive project and construction project manager in an amount not to exceed $166,000;
Approving a budget adjustment of $576,259 from the Community Facilities Impact Fee Fund for the completion of the project;
Determining the project is exempt under the California Environmental Quality Act.

ALTERNATIVES:

1. Accept recommended bid and remove any or all project alternates and approve corresponding funding required to complete the project.

2. Reject all bids and rebid the project; this will cause significant delay.

3. Reject all bids and stop the project.

ATTACHMENTS:

1. Resolution

2. CIP Budget Sheets for the Project

3. Contract with Suarez and Munoz Construction Inc.

4. Centennial Plaza Conceptual Design

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2 2
2 8
RESOLUTION NO. 2024 -

A RESOLUTION APPROVING THE DESIGN OF THE CENTENNIAL PLAZA IMPROVEMENT PROJECT; AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH SUAREZ AND MUNOZ CONSTRUCTION INC. FOR THE CENTENNIAL PLAZA IMPROVEMENT PROJECT IN AN AMOUNT NOT TO EXCEED $1,106,728; APPROVING A CONSTRUCTION CONTINGENCY OF $115,000; APPROVING MOVING

FORWARD WITH THE PROCUREMENT OF A COMPREHENSIVE PROJECT AND CONSTRUCTION PROJECT MANAGER IN AN AMOUNT NOT TO EXCEED $166,000; APPROVING A BUDGET ADJUSTMENT OF $576,259; FROM THE COMMUNITY FACILITIES IMPACT FEE FUND; AND DETERMINING THE PROJECT IS EXEMPT UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City began working with Callander Associates Landscape Architects (CALA) in July 2021 to develop a conceptual design to activate Centennial Plaza with a short- term solution for the site; and
WHEREAS, through a series of technical issues identified at the site indicated any design solution would require complex work with grading and electrical work and the scope of the design work was expanded; and
WHEREAS, City staff introduced conceptual plans to the City Council in May 2022, and the City Council gave direction to staff to work with the City Council Downtown Committee to create a final concept plan; and
WHEREAS, in August 2022, City Council approved the Conceptual Plan developed with the City Council Downtown Committee and directed Staff to proceed and reach out to the San Bruno Community Foundation to request funding for the project; and WHEREAS, in November 2022, the City was awarded a Strategic Grant from the San Bruno Community Foundation in the amount of $500,000 to support the Centennial Park renovation contingent on the City Council approving the gap funding required to fully fund the project
WHEREAS, in December 2022, the City Council authorized an amendment for design services to include preparation of construction documents for Centennial Plaza; and WHEREAS, in June 2023, the City Council authorized an amendment for additional design services to include the design of a bioretention area to treat rainwater; and WHEREAS, the City advertised the Project for bid in compliance with State Contract Code and local purchasing regulations and received two (2) sealed bids on January 16, 2024 from Suarez and Munoz Construction Inc. and Cal-Pacific; and WHEREAS, Suarez and Munoz Construction Inc. submitted a responsive base bid in the amount of $828,008 and total project bid in the amount of $1,106,728; and WHEREAS, Suarez and Munoz Construction Inc. has satisfactorily completed similar park improvement projects, meets the contractor qualifications, and has a valid contractor’s license required to perform the scope of work of this project; and 320 of 330
ATTACHMENT 1
2 2
2 8
WHEREAS, the total estimated construction and construction support costs for this project is $1,387,728 which will be funded by the San Bruno Community Foundation grant and Community Facilities Impact Fee Fund; and
WHEREAS, the total estimated project costs for Centennial Plaza Improvements is $1,582,955; and
WHEREAS, this project falls within the Categorical Exemptions set forth in CEQA Guidelines Section 15301 through 15333(c), which describes Class 1 Existing Facilities and Class 2, Replacement or Reconstruction.

NOW, THEREFORE, BE IT RESOLVED that the San Bruno City Council hereby:

1. Approves the design of the Centennial Plaza Improvements;

2. Authorizes the City Manager to Execute a Construction Contract with Suarez and Munoz Construction Inc. for the Centennial Plaza Improvement Project in an amount not to exceed $1,106,728;

3. Approves a construction contingency of $115,000;

4. Approves the procurement of a comprehensive project and construction project manager in an amount not to exceed $166,000;

5. Approves a budget adjustment of $576,259 from the Community Facilities Impact Fee Fund for the completion of the project;

6. Determining the project is exempt under the California Environmental Quality Act. ---oOo---
I hereby certify that foregoing Resolution No. 2024 -
was adopted by the San Bruno City Council at a regular meeting on February 13, 2024, by the following vote:

AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk

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1/16/2024 2:41:18PM
Project Status Report
City of San Bruno
paPrStat Page: 1
7/1/2016 through 6/30/2024
60028 CENTENNIAL PLAZA IMPROVEMENTSProject #
Funding Source Balances Budget Received Applied Balance 50 OTHER SOURCES
OTHER SOURCES50 0.00 0.00 0.000.00
FD131 - PARK IN-LIEU FEES50-128 150,000.00 0.00 315,000.00465,000.00 Developer Funding50-301 42,765.00 0.00 0.0042,765.00
San Bruno Community Foundation50-575 50,698.36 0.00 449,301.64500,000.00 OTHER SOURCES Total: 243,463.361,007,765.00 0.00 764,301.64 Total Funding Sources 243,463.361,007,765.00 0.00 764,301.64 Expense Balances Budget Encumbrances Labor Materials Other Balance 0004 CENTENNIAL PLAZA IMPROVEMENTS
0004 CENTENNIAL PLAZA IMPROVEMENTS 1,007,765.00 0.00 0.00 0.00 0.00 1,007,765.00 0004-005 ENGINEERING STAFF TIME 0.00 0.00 2,462.10 0.00 0.00 -2,462.10 0004-615 LANDSCAPING DESIGN 0.00 34,260.68 0.00 0.00 158,504.32 -192,765.00 2,462.10CENTENNIAL PLAZA IMPROVEMENTS Total: 1,007,765.00 34,260.68 0.00 158,504.32 812,537.90 Total Expenses 2,462.101,007,765.00 34,260.68 0.00 158,504.32 812,537.90 Budget Net
Actuals Net

0.00 48,236.26
Page: 1
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ATTACHMENT 2
1/16/2024 2:41:18PM
Project Status Report
City of San Bruno
paPrStat Page: 2
7/1/2016 through 6/30/2024
Grand Totals
1,007,765.00 243,463.36 0.00 764,301.64
Funding Source Budget Received Applied Balance
BalanceOtherMaterialsLaborEncumbrancesBudgetExpense
812,537.90158,504.320.002,462.1034,260.681,007,765.00
Actuals Net
Budget Net 0.00
48,236.26
Page: 2

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Centennial Plaza Improvements
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00 52 00 - 1 Contract Agreement
DOCUMENT 00 52 00

CONTRACT AGREEMENT

CENTENNIAL PLAZA IMPROVEMENTS
THIS AGREEMENT was executed this 13th day of , 2024 by and between Suarez & Munoz Construction, Inc. place of business is located at 2490 American Blvd, Hayward, CA 94545 (“Contractor”), and the CITY OF SAN BRUNO (“City”), acting under and by virtue of the authority vested in the City by the laws of the State of California.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, Contractor and City agree as follows:

Article 1. Work

1.1 Contractor shall complete all Work specified in the Contract Documents, in accordance with the Plans, Specifications, and all other terms and conditions of the Contract Documents.

Article 2. Architect/Engineer and Project Manager

2.1 The City Engineer and its authorized vendor designed the Project and furnished the Plans and Specifications. The City Engineer shall have the rights assigned to Architect/Engineer in the Contract Documents.

2.2 City has designated the City Engineer as its Project Manager to act as City’s point of contact relating to the Contract Documents and to determine whether the work performed is in accordance with the Contract Documents.

2.3 The City may assign all or part of the Project Manager’s rights, responsibilities and duties to a Project or Construction Manager.

Article 3. Contract Time and Liquidated Damages

3.1 Contract Time
Contractor shall commence work on the date established in the Notice to Proceed.

City reserves the right to modify or alter the commencement date of the Work.

Contractor shall achieve Substantial Completion of the entire Work within 165_(One Hundred Sixty-Five) Calendar Days from the date when the contract time commences to run as provided in Document 00 72 00 (General Conditions). Contractor shall achieve Final Completion of the entire Work and be ready for Final Payment in accordance with Section 01 77 00 (Closeout Procedures) 20 Working Days from the date when Substantial Completion was established.
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Centennial Plaza Improvements
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3.2 Liquidated Damages
City and Contractor recognize that time is of the essence of this Agreement and that City will suffer financial loss in the form of Contract administration expenses (such as project management and consultant expenses), if all or any part of the Work is not completed within the times specified above, plus any extensions thereof allowed in accordance with the Contract Documents. Contractor and City agree that because of the nature of the Project, it would be impractical or extremely difficult to fix the amount of actual damages incurred by City because of a delay in completion of all or any part of the Work. Accordingly, City and Contractor agree that as liquidated damages for delay Contractor shall pay City:

3.2.1 Five Hundred dollars ($ 500.00) for each Day that expires after the time specified herein for Contractor to achieve Substantial Completion of the entire Work, until achieved.

3.2.2 Five Hundred dollars ($ 500.00) for each Day that expires after the time specified herein for Contractor to achieve Final Completion of the entire Work, until achieved.

These measures of liquidated damages shall apply cumulatively and except as provided below, shall be presumed to be the damages suffered by City resulting from delay in completion of the Work.

3.3 Liquidated damages for delay shall only cover administrative, overhead, interest on bonds, and general loss of public use damages suffered by City as a result of delay. Liquidated damages shall not cover the cost of completion of the Work, damages resulting from defective work, lost revenues or costs of substitute facilities, or damages suffered by others who then seek to recover their damages from City (for example, delay claims of other contractors, subcontractors, tenants, or other third-parties), and defense costs thereof.

3.4 It is further agreed that prior to issuance of a Notice of Completion under the terms of this Contract, and as a condition precedent to the City’s obligation for the issuance of the Notice of Completion and Final Payment, the Contractor shall submit to the City a “Maintenance and Warranty Bond” to be valued at ten percent (10%) of the final contract amount. Such Bond shall be in force and valid for a period of one (1) year unless extended.

Article 4. Contract Sum

4.1 City shall pay Contractor the Contract Sum of Eight Hundred, Twenty Eight Thousand,eight Dollars ($828,008) for completion of Work in accordance with Contract Documents as set forth in Contractor’s Bid, attached hereto. 325 of 330
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Article 5. Contractor’s Representations
In order to induce City to enter into this Agreement, Contractor makes the following representations and warranties:

5.1 Contractor has visited the Site and has examined thoroughly and understood the nature and extent of the Contract Documents, Work, Site, locality, actual conditions, as-built conditions, and all local conditions, and federal, state and local laws and regulations that in any manner may affect cost, progress, performance or furnishing of Work or which relate to any aspect of the means, methods, techniques, sequences or procedures of construction to be employed by Contractor and safety precautions and programs incident thereto.

5.2 Contractor has examined thoroughly and understood all reports of exploration and tests of subsurface conditions, as-built drawings, drawings, products specifications or reports, available for Bidding purposes, of physical conditions, including Underground Facilities, which have been made available for Bidders or which may appear in the Drawings. Contractor accepts the determination set forth in these Documents and Document 00 72 00 of the limited extent of the information contained in such materials upon which Contractor may be entitled to rely.

Contractor agrees that except for the information so identified, Contractor does not and shall not rely on any other information contained in such reports and drawings.

5.3 Contractor has conducted or obtained and has understood all such examinations, investigations, explorations, tests, reports and studies (in addition to or to supplement those referred to in Section 5.2 of this Agreement) that pertain to the subsurface conditions, as-built conditions, Underground Facilities and all other physical conditions at or contiguous to the Site or otherwise that may affect the cost, progress, performance or furnishing of Work, as Contractor considers necessary for the performance or furnishing of Work at the Contract Sum, within the Contract Time and in accordance with the other terms and conditions of the Contract Documents, including specifically the provisions of Document 00 72 00; and no additional examinations, investigations, explorations, tests, reports, studies or similar information or data are or will be required by Contractor for such purposes.

5.4 Contractor has correlated its knowledge and the results of all such observations, examinations, investigations, explorations, tests, reports and studies with the terms and conditions of the Contract Documents.

Article 6. Contract Documents

6.1 Contract Documents consist of the Project Manual and include the following documents, and all changes, Addenda, and Modifications thereto:

Document 00 10 00 Notice Inviting Bids
Document 00 21 00 Instructions to Bidders
Document 00 24 13 Scopes of Bids
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Document 00 41 00 Bid Proposal
Document 00 41 70 Addenda Acknowledgement
Document 00 51 00 Notice of Award
Document 00 52 00 Contract Agreement
Document 00 61 13.13 Construction Performance Bond
Document 00 61 13.16 Construction Labor and Material Payment Bond Document 00 72 00 General Conditions
Document 00 73 00 Special Conditions
General Requirements
Technical Specifications
Drawings Sheet L1.0 thru E2.1

6.2 The Contract Documents may only be amended, modified or supplemented as provided in Document 00 72 00.

Article 7. Miscellaneous

7.1 Terms and abbreviations used in this Agreement are defined in Document 00 72 00 and Section 01 42 16 (Definitions) and will have the meaning indicated therein.

7.2 It is understood and agreed that in no instance are the persons signing this Agreement for or on behalf of City or acting as an employee, agent, or representative of City, liable on this Agreement or any of the Contract Documents, or upon any warranty of authority, or otherwise, and it is further understood and agreed that liability of the City is limited and confined to such liability as authorized or imposed by the Contract Documents or applicable law.

7.3 Contractor shall not assign any portion of the Contract Documents without the City’s prior approval. Any assignment of any portion of the Contract Documents without the City’s prior written approval shall be deemed null and void. Contractor may subcontract portions of the Contract Documents only in compliance with the Subcontractor Listing Law, California Public Contract Code Section 4100, et seq.

7.4 The Contract Sum includes all allowances (if any).

7.5 In entering into a public works contract or a subcontract to supply goods, services or materials pursuant to a public works contract, Contractor or Subcontractor offers and agrees to assign to the awarding body all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. §15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time City tenders final payment to Contractor, without further acknowledgment by the parties.

7.6 Copies of the general prevailing rates of per diem wages for each craft, classification, or type of worker needed to execute the Contract, as determined by 327 of 330
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Director of the State of California Department of Industrial Relations, are deemed included in the Contract Documents and on file at City’s Office, and shall be made available to any interested party on request. Pursuant to California Labor Code Section 1861, Contractor represents that it is aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and Contractor shall comply with such provisions before commencing the performance of the Work of the Contract Documents.

7.7 Should any part, term or provision of this Agreement or any of the Contract Documents, or any document required herein or therein to be executed or delivered, be declared invalid, void or unenforceable, all remaining parts, terms and provisions shall remain in full force and effect and shall in no way be invalidated, impaired or affected thereby. If the provisions of any law causing such invalidity, illegality or unenforceability may be waived, they are hereby waived to the end that this Agreement and the Contract Documents may be deemed valid and binding agreements, enforceable in accordance with their terms to the greatest extent permitted by applicable law. In the event any provision not otherwise included in the Contract Documents is required to be included by any applicable law, that provision is deemed included herein by this reference (or, if such provision is required to be included in any particular portion of the Contract Documents, that provision is deemed included in that portion).

7.8 This Agreement and the Contract Documents shall be deemed to have been entered into in the City of San Bruno, State of California, and governed in all respects by California law (excluding choice of law rules). The exclusive venue for all disputes or litigation hereunder shall be in San Mateo County Superior Court.

Contractor accepts the terms of Document 00 72 00, Article 12, as a claims procedure by agreement under the California Government Code, Title 1, Division

3.6, Part 3, Chapter 5.

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Project No. 60028
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IN WITNESS WHEREOF the parties have executed this Agreement in duplicate the day and year first above written.

CONTRACTOR: [CONTRACTOR’S NAME]
By: By:

Its:

Title (If corporation: Chairman,
President, or Vice President)
Its:

Title (If corporation: Secretary, Chief
Financial Officer or Assistant Treasurer)

CITY OF SAN BRUNO
By: Date:

City Manager
(Council Action dated
)
Attest:

City Clerk

APPROVED AS TO FORM
By:

City Attorney
Attachments:
-END OF DOCUMENT-
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CENTENNIAL PLAZA IMPROVEMENTS
City of San Bruno, California
July 19, 2022
21042_RevisedConceptPlan2.indd

CONCEPT PLAN
0’ 2’ 4’ 8’
SAN MATEO AVE. WEST COAST CAFE
PICNIC TABLE, TYP .

BIKE RACK

FESTOON LIGHTING

CONCRETE CUBE
BOLLARD, TYP .

BOTTLE FILLER

CAFE STYLE

FLEXIBLE SEATING TIME CAPSULE

RELOCATION

INFORMAL PLAY ON

RUBBER SURFACING

BIO-SWALE

PLANTING

REMOVABLE
BOLLARD, TYP .

CONCRETE
PAVEMENT, TYP .

BOULDER, TYP .

ADIRONDACK

SEATING

STABILIZED

DECOMPOSED

GRANITE PAVEMENT

ORNAMENTAL
PLANTING, TYP .

FLEXIBLE PLAZA

SPACE WITH PAVERS

STAGE WITH

SHADE SHELTER
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