San Bruno City Council
February 27, 2024

"The City With a Heart"
Rico E. Medina, Mayor
Michael Salazar, Vice Mayor
Sandy Alvarez, Councilmember, District 1
Tom Hamilton, Councilmember
Marty Medina, Councilmember, District 4
AGENDA
SAN BRUNO CITY COUNCIL REGULAR MEETING
February 27, 2024
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/89516235183?
pwd=aYAG­
L31eRK4SWW8Q3HdBvLkPq_1gQ.BbeXNrP3nG4PGE9w
Phone Line: 1­646­558­8656
Webinar ID: 895 1623 5183
Webinar Password:  621727
*Teleconference broadcasting is offered in the meeting via Zoom as a courtesy to the public.
**No public comment accepted via Zoom.

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.  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 up to three minutes, subject to the Mayor’s discretion based on the anticipated length in the meeting. 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
There will be a single public comment period for all items in this section a. Presidential Primary Election will be held on March 5, 2024. Vote Centers in San Bruno will be located at Carlton Corners (Girl Scout House), 299 Carlton Avenue and the Courtyard by Marriott, 1050 Bayhill Drive. Vote Centers will be open March 2nd – 4th from 9 am ­ 5 pm and on Election Day, March 5th from 7 am ­ 8 pm.  Ballot Drop Off Boxes are located outside of City Hall at 570 Linden Avenue and in Senior Center Parking Lot located at 1555 Crystal Springs Road. For more information, please contact the San Mateo Elections Division at (650) 312­5222 or go to smcacre.gov
b. Issue Proclamation Recognizing March as National Women’s History Month c. Receive General Update from the San Mateo County Mosquito & Vector Control District d. CalCities Legislative Update

6. CONSENT CALENDAR
All items are considered routine or implement an earlier Council action and may be enacted by one motion; there will be no separate discussion, unless requested. There will be a single public comment period for all items in this section unless a Councilmember requests to pull an item for a separate vote. a. Approve Accounts Payable for February 12, 2024 and February 20, 2024 b. Accept Payroll for February 11, 2024
c. Approve Investment Report dated January 31, 2024
d. Approve Reconciliation of General Ledger to Bank Report Dated August 31, 2023, September 30, 2023, October 31, 2023, November 30,2023 and December 31,2023 e. Consider Adoption of a Resolution Rejecting All Bids and Authorizing Staff to Re­advertise for the Huntington Avenue Bicycle and Pedestrian Improvements Project f. Consider Adoption of a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement with Bellecci & Associates, Inc. for Design and Construction Support Services in the Amount Not to Exceed $387,648 for the 2023­24 and 2024­25 Street Rehabilitation Project

7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Introducing, Reading by Title Only and Waiving a Further Reading of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Adopting by Reference Chapter 4.98 of the San Mateo County Ordinance Code (Tobacco Retailer Permit); Repealing and Replacing in its Entirety San Bruno Municipal Code Chapter 6.52 (Tobacco Retailer Permit) in Connection with such Adoption; and Finding the Amendment Exempt from the California Environmental Quality Act” and Set Public Hearing on Adoption of Ordinance for March 26, 2024
b. Receive Report on the City's Long­Range Forecast for Fiscal Years 2024­25 through Fiscal Year 2033­34
c. Receive Recommendation from the Ballot Measure Ad Hoc Committee and Provide Direction to City Staff
d. Consider Adoption of a Resolution Amending the 2023­24 Budget

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

10. ADJOURNMENT – The next Regular City Council Meeting will be held on March 12, 2024 at 7:00 pm.

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 February 23, 2024, by 6:00 p.m. 1 of 82
"The City With a Heart"
Rico E. Medina, Mayor
Michael Salazar, Vice Mayor
Sandy Alvarez, Councilmember, District 1
Tom Hamilton, Councilmember
Marty Medina, Councilmember, District 4
AGENDA
SAN BRUNO CITY COUNCIL REGULAR MEETING
February 27, 2024
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/89516235183?
pwd=aYAG­
L31eRK4SWW8Q3HdBvLkPq_1gQ.BbeXNrP3nG4PGE9w
Phone Line: 1­646­558­8656
Webinar ID: 895 1623 5183
Webinar Password:  621727
*Teleconference broadcasting is offered in the meeting via Zoom as a courtesy to the public.
**No public comment accepted via Zoom.

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.  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 up to three minutes, subject to the Mayor’s discretion based on the anticipated length in the meeting. 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
There will be a single public comment period for all items in this section a. Presidential Primary Election will be held on March 5, 2024. Vote Centers in San Bruno will be located at Carlton Corners (Girl Scout House), 299 Carlton Avenue and the Courtyard by Marriott, 1050 Bayhill Drive. Vote Centers will be open March 2nd – 4th from 9 am ­ 5 pm and on Election Day, March 5th from 7 am ­ 8 pm.  Ballot Drop Off Boxes are located outside of City Hall at 570 Linden Avenue and in Senior Center Parking Lot located at 1555 Crystal Springs Road. For more information, please contact the San Mateo Elections Division at (650) 312­5222 or go to smcacre.gov
b. Issue Proclamation Recognizing March as National Women’s History Month c. Receive General Update from the San Mateo County Mosquito & Vector Control District d. CalCities Legislative Update

6. CONSENT CALENDAR
All items are considered routine or implement an earlier Council action and may be enacted by one motion; there will be no separate discussion, unless requested. There will be a single public comment period for all items in this section unless a Councilmember requests to pull an item for a separate vote. a. Approve Accounts Payable for February 12, 2024 and February 20, 2024 b. Accept Payroll for February 11, 2024
c. Approve Investment Report dated January 31, 2024
d. Approve Reconciliation of General Ledger to Bank Report Dated August 31, 2023, September 30, 2023, October 31, 2023, November 30,2023 and December 31,2023 e. Consider Adoption of a Resolution Rejecting All Bids and Authorizing Staff to Re­advertise for the Huntington Avenue Bicycle and Pedestrian Improvements Project f. Consider Adoption of a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement with Bellecci & Associates, Inc. for Design and Construction Support Services in the Amount Not to Exceed $387,648 for the 2023­24 and 2024­25 Street Rehabilitation Project

7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Introducing, Reading by Title Only and Waiving a Further Reading of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Adopting by Reference Chapter 4.98 of the San Mateo County Ordinance Code (Tobacco Retailer Permit); Repealing and Replacing in its Entirety San Bruno Municipal Code Chapter 6.52 (Tobacco Retailer Permit) in Connection with such Adoption; and Finding the Amendment Exempt from the California Environmental Quality Act” and Set Public Hearing on Adoption of Ordinance for March 26, 2024
b. Receive Report on the City's Long­Range Forecast for Fiscal Years 2024­25 through Fiscal Year 2033­34
c. Receive Recommendation from the Ballot Measure Ad Hoc Committee and Provide Direction to City Staff
d. Consider Adoption of a Resolution Amending the 2023­24 Budget

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

10. ADJOURNMENT – The next Regular City Council Meeting will be held on March 12, 2024 at 7:00 pm.

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 February 23, 2024, by 6:00 p.m.

2 of 82

"The City With a Heart"
Rico E. Medina, Mayor
Michael Salazar, Vice Mayor
Sandy Alvarez, Councilmember, District 1
Tom Hamilton, Councilmember
Marty Medina, Councilmember, District 4
AGENDA
SAN BRUNO CITY COUNCIL REGULAR MEETING
February 27, 2024
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/89516235183?
pwd=aYAG­
L31eRK4SWW8Q3HdBvLkPq_1gQ.BbeXNrP3nG4PGE9w
Phone Line: 1­646­558­8656
Webinar ID: 895 1623 5183
Webinar Password:  621727
*Teleconference broadcasting is offered in the meeting via Zoom as a courtesy to the public.
**No public comment accepted via Zoom.

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.  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 up to three minutes, subject to the Mayor’s discretion based on the anticipated length in the meeting. 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
There will be a single public comment period for all items in this section a. Presidential Primary Election will be held on March 5, 2024. Vote Centers in San Bruno will be located at Carlton Corners (Girl Scout House), 299 Carlton Avenue and the Courtyard by Marriott, 1050 Bayhill Drive. Vote Centers will be open March 2nd – 4th from 9 am ­ 5 pm and on Election Day, March 5th from 7 am ­ 8 pm.  Ballot Drop Off Boxes are located outside of City Hall at 570 Linden Avenue and in Senior Center Parking Lot located at 1555 Crystal Springs Road. For more information, please contact the San Mateo Elections Division at (650) 312­5222 or go to smcacre.gov
b. Issue Proclamation Recognizing March as National Women’s History Month c. Receive General Update from the San Mateo County Mosquito & Vector Control District d. CalCities Legislative Update

6. CONSENT CALENDAR
All items are considered routine or implement an earlier Council action and may be enacted by one motion; there will be no separate discussion, unless requested. There will be a single public comment period for all items in this section unless a Councilmember requests to pull an item for a separate vote. a. Approve Accounts Payable for February 12, 2024 and February 20, 2024 b. Accept Payroll for February 11, 2024
c. Approve Investment Report dated January 31, 2024
d. Approve Reconciliation of General Ledger to Bank Report Dated August 31, 2023, September 30, 2023, October 31, 2023, November 30,2023 and December 31,2023 e. Consider Adoption of a Resolution Rejecting All Bids and Authorizing Staff to Re­advertise for the Huntington Avenue Bicycle and Pedestrian Improvements Project f. Consider Adoption of a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement with Bellecci & Associates, Inc. for Design and Construction Support Services in the Amount Not to Exceed $387,648 for the 2023­24 and 2024­25 Street Rehabilitation Project

7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Introducing, Reading by Title Only and Waiving a Further Reading of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Adopting by Reference Chapter 4.98 of the San Mateo County Ordinance Code (Tobacco Retailer Permit); Repealing and Replacing in its Entirety San Bruno Municipal Code Chapter 6.52 (Tobacco Retailer Permit) in Connection with such Adoption; and Finding the Amendment Exempt from the California Environmental Quality Act” and Set Public Hearing on Adoption of Ordinance for March 26, 2024
b. Receive Report on the City's Long­Range Forecast for Fiscal Years 2024­25 through Fiscal Year 2033­34
c. Receive Recommendation from the Ballot Measure Ad Hoc Committee and Provide Direction to City Staff
d. Consider Adoption of a Resolution Amending the 2023­24 Budget

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

10. ADJOURNMENT – The next Regular City Council Meeting will be held on March 12, 2024 at 7:00 pm.

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 February 23, 2024, by 6:00 p.m. 3 of 82

4 of 82
Item 5b.

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 12, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
Kathleen O’Malley, Accounting & Customer Service Representative SUBJECT: Accounts Payable Warrant Register
This is to certify that the claims listed on pages 1 to 3 inclusive, and/or claims numbered from 207459 through 207594 inclusive, totaling $1,014,659.64 have been checked in detail and approved by the proper officials, and in my opinion, represent fair and just charges against the City in accordance with their respective amounts. The table below summarizes the total paid by Fund.

Fund Fund Name Amount
001 General Fund $355,177.72
131 In-Lieu Fees $30,000.00
132 Agency On Aging $3,643.45
133 Restricted Revenues $8,638.00
137 Developer Project Contributions $168,298.44
201 Parks and Facilities Capital $80,015.72
203 Street Improvement Projects $16,062.25
207 Technology Capital $11,475.00
611 Water Fund $98,589.29
621 Stormwater Fund $48,187.45
631 Wastewater Fund $25,403.86
641 CityNet Services Fund $50,508.80
651 Parking Fund $31,134.80
701 Central Garage $10,032.22
702 Facility Maintenance Fund $31,574.76
707 Technology Development $39,386.88
711 Self-Insurance $6,531.00
TOTAL FOR APPROVAL $1,014,659.64
Respectfully submitted,
_________________________
Chief Financial Officer Date
DocuSign Envelope ID: 5904E745-DAA2-48FB-A6AA-88F2863A077F 2/12/2024
5 of 82
Item 6a.
2/12/2024 11:44:37AM
Positive Pay Listing
City of San Bruno
apPosPay Page: 1
Bank: apbank 432000438Document group: komalley
Vendor Code & Name Check # Check Date Amount
0016499 ACTION SPORTS 207460 1,542.192/12/2024
0106435 ACTION TOWING & ROAD SVC. INC. 207461 523.882/12/2024 0109873 AECOM TECHNICAL SERVICES, INC. 207462 718.282/12/2024 0000163 AIRPORT AUTO PARTS INC. 207464 300.392/12/2024 0111242 ALAN WU 207592 1,000.002/12/2024
0104542 ALTA LANGUAGE SERVICES, INC. 207465 132.002/12/2024 0109578 AMERICAN LEAK DETECTION 207466 1,025.002/12/2024 0096700 ANDY'S WHEELS & TIRES 207467 892.892/12/2024
0016123 AT&T 207468 1,659.822/12/2024
0018465 AT&T MOBILITY 207469 95.932/12/2024
0110971 BALFOUR BEATTY INC. 207470 276.002/12/2024
0110591 BAVCO 207472 2,094.482/12/2024
0100526 BAY ALARM COMPANY 207473 194.972/12/2024
0111311 BAY AREA UNDERPINNING 207474 4,999.002/12/2024 0001849 BAY AREA WATER SUPPLY & CONSERVATION AGENCY 207570 602.462/12/2024 0108691 BEAR CLOUD TECHNOLOGIES, INC. 207475 5,723.722/12/2024 0105553 BELLECCI & ASSOCIATES, INC. 207476 949.502/12/2024 0109646 BIO CAR CARE 207477 925.002/12/2024
0109661 BIRITE FOODSERVICE DISTRIBUTORS 207506 1,871.922/12/2024 0111255 BOB BAQLEH 207471 1,000.002/12/2024
0000378 BROADMOOR LANDSCAPE SUPPLY 207478 187.232/12/2024 0000098 BRODART CO. 207479 146.872/12/2024
0108665 BUBBA'S FIRE EXTINGUISHER CO. 207480 100.002/12/2024 0018355 CALIFORNIA BUILDING OFFICIALS 207481 160.002/12/2024 0102989 CALIFORNIA DIESEL & POWER 207482 13,158.832/12/2024 0106437 CALIX, INC. 207483 774.362/12/2024
0110323 CAPF 207484 885.002/12/2024
0111230 CBF, INC. 207485 18,000.002/12/2024
0017679 CDW GOVERNMENT, INC 207486 118.742/12/2024
0016324 CINTAS CORPORATION #464 207487 2,626.782/12/2024 0098588 CITY OF BURLINGAME 207488 3,280.502/12/2024
0000227 CITY OF SAN BRUNO-UTILITY 207489 271.042/12/2024 0109807 CIVICPLUS, LLC 207490 23,234.902/12/2024
0109998 CONSOR PMCM, INC. 207492 69,907.482/12/2024
0110941 CORODATA RECORDS MANAGEMENT, INC. 207553 52.952/12/2024 0105811 CSAC EXCESS INSURANCE AUTHORITY 207503 14,219.502/12/2024 0018331 CSG CONSULTANTS INC. 207494 13,550.002/12/2024 0106011 CWEA-SFBS 207495 675.002/12/2024
0106909 DALIA MANAOIS 207531 180.002/12/2024
0108696 DAVID J POWERS AND ASSOCIATES, INC. 207547 44,240.382/12/2024 0109577 DIRECTWORX 207497 4,109.802/12/2024
0018799 ECONOMIC&PLANNING SYSTEMS INC. 207499 828.752/12/2024 0017300 ENVIRONMENTAL HEALTH FEE 207501 285.362/12/2024 0018899 EOA INC. 207502 1,198.802/12/2024
0000944 FEDEX 207504 53.462/12/2024
0001782 FLOWERS ELECTRIC & SVC.CO.INC. 207505 715.312/12/2024 0109776 FRESH LINE PRODUCE 207508 288.252/12/2024
0016363 GCS ENVIRONMENTAL & EQUIPMENT SVC. 207500 2,240.682/12/2024 0111210 GHIRARDELLI ASSOCIATES, INC. 207510 66,990.002/12/2024 0104135 GLOBAL TRACKING COMMUNICATIONS, INC. 207578 282.992/12/2024 0018864 GMA NETWORK INC. 207511 4,047.582/12/2024
0105753 GOOGLE, INC. 207512 103,382.612/12/2024
0000162 GRAINGER 207513 1,696.402/12/2024
Page: 1
DocuSign Envelope ID: 5904E745-DAA2-48FB-A6AA-88F2863A077F

6 of 82

2/12/2024 11:44:37AM
Positive Pay Listing
City of San Bruno
apPosPay Page: 2
Bank: apbank 432000438Document group: komalley
Vendor Code & Name Check # Check Date Amount
0017900 GREAT LAKES DATA SYSTEMS INC 207514 2,300.002/12/2024 0110361 GREEN MACHINES INC. 207515 986.962/12/2024
0105488 HINES EDM, INC. 207516 6,414.262/12/2024
0091742 HIP HOUSING, INC. 207517 30,000.002/12/2024
0109121 INFORMATION PROFESSIONALS,INC. 207518 480.002/12/2024 0110359 JANE E. LIGHT 207519 2,925.002/12/2024
0096533 JANWAY CO. USA INC. 207520 478.912/12/2024
0103342 JMB CONSTRUCTION, INC. 207521 844.162/12/2024 0018376 JT2 INTEGRATED RESOURCES 207522 6,531.002/12/2024 0018050 KAISER FOUNDATION HEALTH PLAN 207523 5,495.862/12/2024 0111091 KBM-HOGUE 207524 51,249.322/12/2024
0000132 KELLY-MOORE PAINT CO INC. 207525 153.672/12/2024 0111196 KENNETH TAN RONQUILLO 207556 403.002/12/2024
0110872 KRISTIE WOO 207588 1,041.002/12/2024
0109500 LAMPO INVESTIGATIONS-POLYGRAPH 207526 450.002/12/2024 0110998 LAZ PARKING ASSOCIATES LLC 207527 31,134.802/12/2024 0109978 LINDE GAS & EQUIPMENT INC. 207528 390.042/12/2024 0110309 LOOKINGPOINT, INC. 207529 4,475.552/12/2024
0018177 LOWE'S 207530 2,789.892/12/2024
0109097 M-GROUP 207532 2,681.252/12/2024
0110443 MILLBRAE COMMUNITY TELEVISION 207533 3,204.722/12/2024 0001709 MILLBRAE LOCK 207534 652.712/12/2024
0110164 MISCOWATER 207535 10,000.002/12/2024
0098639 MUNICIPAL RESOURCE GROUP, LLC 207536 200.002/12/2024 0000357 NATIONAL CABLE TV CO-OP, INC. 207537 1,117.242/12/2024 0109934 NEMA CONSTRUCTION 207538 18,710.902/12/2024
0109974 NOAH AGIUS 207463 110.002/12/2024
0098749 NUALA & TOM DIETRICH 207496 201.202/12/2024
0111055 O'REILLY AUTO PARTS 207540 131.182/12/2024
0110243 ODP BUSINESS SOLUTIONS, LLC 207539 47.242/12/2024 0018701 ORKIN PEST CONTROL 207541 891.922/12/2024
0000012 PACIFIC GAS & ELECTRIC 207542 49,484.712/12/2024 0000691 PARTITION SPECIALTIES, INC 207543 4,614.332/12/2024 0001154 PENINSULA LIBRARY SYSTEM 207544 27,562.002/12/2024 0108589 PERFORMANCE FOODSERVICE-LEDYARD 207507 1,158.782/12/2024 0108277 PIVOT GROUP LLC 207545 4,600.002/12/2024
0111229 PORTER CAPITAL CORPORATION 207546 11,475.002/12/2024 0098436 PROFESSIONAL LAND SERVICES 207548 2,210.002/12/2024 0110569 PROMO PLUMBING 207549 205.662/12/2024
0111209 PUBLIC SECTOR EXCELLENCE 207550 105.002/12/2024 0111291 PUMA POWER WASH INC 207551 689.652/12/2024
0000175 RECOLOGY SAN BRUNO 207552 2,022.152/12/2024
0110332 RICHARDS,WATSON&GERSHON A PROFESSIONAL CORP. 207459 9,488.702/12/2024 0106293 ROBERT HALF 207555 5,287.602/12/2024
0111309 ROXANA CRUZ 207493 25.002/12/2024
0111292 SAN BRUNO MARKET LLC 207557 50.022/12/2024
0018597 SAN MATEO DAILY JOURNAL 207558 4,600.002/12/2024 0105552 SCHAAF & WHEELER 207559 3,990.002/12/2024
0109773 SECURITY 101 207560 5,160.002/12/2024
0110128 SEHI COMPUTER PRODUCTS INC. 207561 1,637.752/12/2024 0018461 SERRAMONTE FORD, INC. 207562 1,010.852/12/2024 0097626 SHARP ELECTRONICS CORP. 207563 644.612/12/2024 0101667 SHELL DOOR SERVICE 207564 3,443.982/12/2024
0018962 SHOE DEPOT INC. 207565 196.842/12/2024
Page: 2
DocuSign Envelope ID: 5904E745-DAA2-48FB-A6AA-88F2863A077F

7 of 82

2/12/2024 11:44:37AM
Positive Pay Listing
City of San Bruno
apPosPay Page: 3
Bank: apbank 432000438Document group: komalley
Vendor Code & Name Check # Check Date Amount
0016458 SIADAT ENTERPRISES INC. 207566 84.702/12/2024 0105481 STARVISTA 207567 17,268.292/12/2024
0017857 STERICYCLE, INC. 207568 161.362/12/2024
0105796 SUNRISE FOOD DISTRIBUTOR INC. 207569 324.502/12/2024 0096932 TASC 207571 510.162/12/2024
0018073 TEAMSTERS LOCAL 350 207572 3,010.002/12/2024
0015691 TEAMSTERS LOCAL 856 207573 13,392.002/12/2024 0000241 THE ADAM-HILL COMPANY 207574 299.952/12/2024
0108402 THE HOME DEPOT PRO 207575 2,881.302/12/2024
0108402 THE HOME DEPOT PRO 207576 45.542/12/2024
0100009 THE WHITING-TURNER CONTRACTING 207577 22,000.002/12/2024 0109115 TONY GARCIA 207509 429.992/12/2024
0103736 TURF STAR, INC. 207579 1,462.682/12/2024
0001362 TV GUIDE MAGAZINE, LLC 207580 50.442/12/2024
0110714 UNDERGROUND REPUBLIC WATER WORKS, INC. 207554 156.092/12/2024 0018618 UNITED SITE SERVICES INC. 207581 325.932/12/2024 0102744 UNIVERSAL BUILDING SERVICES 207582 1,991.002/12/2024 0109658 WATER ONE INDUSTRIES, INC. 207583 675.002/12/2024 0104233 WAVE 207584 7,900.002/12/2024
0105955 WEST COAST CODE CONSULTANTS, INC. 207491 65,000.862/12/2024 0104660 WEST YOST ASSOCIATES, INC. 207585 7,283.252/12/2024 0000612 WESTVALLEY CONSTRUCTION CO.INC 207586 32,761.182/12/2024 0096893 WILSEY HAM 207587 43,963.012/12/2024
0108261 WOODARD & CURRAN 207589 1,957.502/12/2024
0109476 WORLDPAC INC 207590 525.102/12/2024
0109109 WRECO 207591 30,339.912/12/2024
0102990 ZACH DORNELL 207498 75.002/12/2024
0110037 ZAYO GROUP, LLC 207593 2,171.542/12/2024
0104033 ZCORUM, INC. 207594 13,041.972/12/2024
Total count: 136
GrandTotal: 1,014,659.64
Page: 3
DocuSign Envelope ID: 5904E745-DAA2-48FB-A6AA-88F2863A077F

8 of 82

9 of 82

10 of 82

11 of 82

12 of 82

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 27, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: John Mercado, Accountant
SUBJECT: Payroll Acceptance
City Council acceptance of the City payroll distributed February 16, 2024 is recommended. The Labor Summary report reflecting the total payroll amount of $2,004,698.26 for bi-weekly pay period ending February 11, 2024, by fund is shown below:

Fund Amount
Fund: 001 - GENERAL FUND 1,504,892.95
Fund: 006 - AMERICAN RESCUE PLAN ACT 52,423.66
Fund: 121 - FEDERAL/STATE GRANTS 19,505.97
Fund: 122 - SOLID WASTE/RECYCLE 2,891.83
Fund: 132 - AGENCY ON AGING 2,494.42
Fund: 137 - DEVELOPER PROJECT CONTRIBUTIONS 3,066.87
Fund: 203 - STREET IMPROVE. PROJECTS 17,044.37
Fund: 611 - WATER FUND 104,018.47
Fund: 621 - STORMWATER FUND 26,575.63
Fund: 631 - WASTEWATER FUND 94,041.24
Fund: 641 - CITYNET SERVICES FUND 92,940.82
Fund: 701 - CENTRAL GARAGE 15,927.65
Fund: 702 - FACILITY MAINT.FUND 45,174.79
Fund: 707 - TECHNOLOGY DEVELOPMENT 22,291.39
Fund: 711 - SELF INSURANCE 1,408.20
Total: 2,004,698.26
_________________________________
Nick Pegueros, CFO Date
DocuSign Envelope ID: 129C2A32-4AD9-45B2-A36B-35AE7F85E21F 2/16/2024
13 of 82
Item 6b.
14 of 82
Item 6c.

15 of 82

16 of 82

17 of 82

Cash Fund Total
3,680,026.63 3,737,302.35
11,497,059.15 11,497,059.15
542,691.46 542,691.46
267,515.68 267,515.68
1,348,186.69 1,348,186.69
4,529,193.66 4,529,193.66

0.00 0.00
884,973.16 884,973.16
1,163,841.12 1,163,841.12
4,298.09 4,298.09
875,365.89 875,365.89
798,942.02 798,942.02
112,252.75 112,252.75
(109,017.66) (109,017.66)
459,445.67 459,445.67
29,495.43 29,495.43
3,785,254.89 3,785,254.89
521.73 521.73
3,571,667.19 3,571,667.19
2,857,478.03 2,857,478.03
1,320,357.31 1,320,357.31
10,170,356.60 10,170,356.60
75,000.00 75,000.00

0.00 0.00
700,648.55 700,648.55
1,120,867.87 1,121,133.07
6,873,597.60 6,873,597.60
633,527.66 633,527.66
967,630.91 967,630.91
5,684,491.33 5,684,491.33
1,676,977.00 1,676,977.00
5,651,546.71 5,651,546.71
25,627,375.56 25,627,375.56
13,260.44 13,260.44
20,795,798.19 20,795,798.19
14,385,682.55 14,385,682.55
332,860.45 332,860.45
450.43 665.41
48,543,001.85 48,543,603.59
(850,096.76) (850,096.76)
50,449,075.37 50,510,160.72
250,627.55 250,627.55
(2,489.75) (2,489.75)
(156,002.98) (156,002.98)
(139,237.26) (139,237.26)
3,413,075.27 3,413,075.27
413,177.87 413,177.87
(137,831.34) (46,712.84)
(25,485.47) (25,485.47)
234,087,435.09 234,297,996.58
* Reconciliation of Pooled Cash & Investments to Portfolio Book Value In
vestment Portfolio Value 225,079,246.74
Cash on hand - Checking Account 9,691,994.85
Payroll and Accounts Payable Outstanding Checks (654,697.23) Deposits in Transit (29,109.27)
General Ledger Cash Balance as of August 31, 2023 234,087,435.09 Prepared By: ____________________________________________________ Reviewed By: ____________________________________________________ glCashInv.rpt Cash and Investments Report Page: 1
2/20/2024 12:15:11PM
City of San BrunoThrough period: 2 Through August 2023
Investments
001 GENERAL FUND 57,275.72
002 GENERAL FUND RESERVE 0.00
003 ONE-TIME REVENUE 0.00
004 CAP IMPROV/ONE-TIME INITIATIVE RSRV 0.00
005 MEASURE G DISTRICT SALES TAX 0.00
006 AMERICAN RESCUE PLAN ACT 0.00
009 PARKING FUND 0.00
101 GAS TAX 0.00
102 MEASURE A TRANSPORTATION TAX 0.00
103 STREET SPECIAL REVENUE 0.00
104 MEASURE W TRANSPORTATION TAX 0.00
111 POLICE ASSET FORFEITURE 0.00
113 POLICE SPECIAL REVENUE 0.00
121 FEDERAL/STATE GRANTS 0.00
122 SOLID WASTE/RECYCL. 0.00
130 IMPACT FEES 0.00
131 IN-LIEU FEES 0.00
132 AGENCY ON AGING 0.00
133 RESTRICTED REVENUES 0.00
136 EMERGENCY DISASTER RESERVE 0.00
137 DEVELOPER PROJECT CONTRIBUTIONS 0.00
138 AFFORDABLE HOUSING IMPACT FEES 0.00
140 DEVELOPER IN-LIEU UNDERGROUNDING 0.00
151 SUCCESSOR AGENCY TO THE SB RDA - OPS 0.00
152 CITY OF SB AS SUCCESSOR HOUSING AGENC 0.00
153 RDA OBLIGATION RETIREMENT FUND 265.20
160 COMMUNITY FACILITIES IMPACT FEE 0.00
161 PUBLIC SAFETY FACILITIES IMPACT FEE 0.00
162 GENERAL GOVERNMENT FACILITIES IMPACT F 0.00
163 TRANSPORTATION FACILITIES IMPACT FEE 0.00
164 UTILITIES FACILITIES IMPACT FEE 0.00
165 BAYHILL SPECIFIC PLAN AREA DEVELOPMEN
T 0.00
166 COMMUNITY BENEFIT FUND 0.00
190 DISASTER RECOVERY FUND 0.00
201 PARKS AND FACILITIES CAPITAL 0.00
203 STREET IMPROVE. PROJECTS 0.00
207 TECHNOLOGY CAPITAL 0.00
302 LEASE DEBT SERVICE 214.98
611 WATER FUND 601.74
621 STORMWATER FUND 0.00
631 WASTEWATER FUND 61,085.35
641 CITYNET SERVICES FUND 0.00
651 PARKING FUND 0.00
701 CENTRAL GARAGE 0.00
702 FACILITY MAINT.FUND 0.00
703 GENERAL EQUIPMENT REVOLVING 0.00
707 TECHNOLOGY DEVELOPMENT 0.00
711 SELF INSURANCE 91,118.50
891 RECOLOGY SAN BRUNO 0.00
Grand Total: 210,561.49
Totals are through period: 2










 









18 of 82
Item 6d.

Cash Fund Total
1,224,289.19 1,281,564.91
11,251,642.71 11,251,642.71
574,191.46 574,191.46
267,515.68 267,515.68
1,636,686.80 1,636,686.80
4,428,280.55 4,428,280.55

0.00 0.00
765,021.68 765,021.68
1,266,955.05 1,266,955.05
4,298.09 4,298.09
921,154.68 921,154.68
791,279.49 791,279.49
183,667.69 183,667.69
(128,400.68) (128,400.68)
456,781.18 456,781.18
11,992.66 11,992.66
3,785,254.89 3,785,254.89
8,802.45 8,802.45
3,573,987.53 3,573,987.53
2,857,478.03 2,857,478.03
1,373,870.66 1,373,870.66
10,170,356.60 10,170,356.60
75,000.00 75,000.00

0.00 0.00
700,648.55 700,648.55
1,120,867.87 1,192,892.87
6,873,597.60 6,873,597.60
633,527.66 633,527.66
967,630.91 967,630.91
5,684,491.33 5,684,491.33
1,676,977.00 1,676,977.00
5,651,546.71 5,651,546.71
25,627,375.56 25,627,375.56
13,260.44 13,260.44
16,753,987.55 16,753,987.55
14,329,063.98 14,329,063.98
305,867.16 305,867.16
342,229.43 342,445.32
46,315,285.94 46,315,890.22
(958,796.00) (958,796.00)
50,673,501.70 50,734,594.84
108,907.97 108,907.97
(2,489.75) (2,489.75)
2,280.00 2,280.00
252,790.01 252,790.01
3,441,840.39 3,441,840.39
724,000.43 724,000.43
668,171.45 759,289.95
(100,059.07) (100,059.07)
227,306,611.21 227,588,943.74
* Reconciliation of Pooled Cash & Investments to Portfolio Book Value Investment Portfolio Value 219,405,534.85
Cash on hand - Checking Account 10,122,103.87
Payroll and Accounts Payable Outstanding Checks (1,751,998.10) Deposits in Transit (469,029.41)
General Ledger Cash Balance as of September 30, 2023 227,306,611.21 Prepared By: ____________________________________________________ Reviewed By: ____________________________________________________ glCashInv.rpt Cash and Investments Report Page: 1
2/20/2024 12:29:41PM
City of San BrunoThrough period: 3 Through September 2023 Investments
001 GENERAL FUND 57,275.72
002 GENERAL FUND RESERVE 0.00
003 ONE-TIME REVENUE 0.00
004 CAP IMPROV/ONE-TIME INITIATIVE RSRV 0.00
005 MEASURE G DISTRICT SALES TAX 0.00
006 AMERICAN RESCUE PLAN ACT 0.00
009 PARKING FUND 0.00
101 GAS TAX 0.00
102 MEASURE A TRANSPORTATION TAX 0.00
103 STREET SPECIAL REVENUE 0.00
104 MEASURE W TRANSPORTATION TAX 0.00
111 POLICE ASSET FORFEITURE 0.00
113 POLICE SPECIAL REVENUE 0.00
121 FEDERAL/STATE GRANTS 0.00
122 SOLID WASTE/RECYCL. 0.00
130 IMPACT FEES 0.00
131 IN-LIEU FEES 0.00
132 AGENCY ON AGING 0.00
133 RESTRICTED REVENUES 0.00
136 EMERGENCY DISASTER RESERVE 0.00
137 DEVELOPER PROJECT CONTRIBUTIONS 0.00
138 AFFORDABLE HOUSING IMPACT FEES 0.00
140 DEVELOPER IN-LIEU UNDERGROUNDING 0.00
151 SUCCESSOR AGENCY TO THE SB RDA - OPS 0.00
152 CITY OF SB AS SUCCESSOR HOUSING AGENC 0.00
153 RDA OBLIGATION RETIREMENT FUND 72,025.00
160 COMMUNITY FACILITIES IMPACT FEE 0.00
161 PUBLIC SAFETY FACILITIES IMPACT FEE 0.00
162 GENERAL GOVERNMENT FACILITIES IMPACT
F 0.00
163 TRANSPORTATION FACILITIES IMPACT FEE 0.00
164 UTILITIES FACILITIES IMPACT FEE 0.00
165 BAYHILL SPECIFIC PLAN AREA DEVELOPMEN
T 0.00
166 COMMUNITY BENEFIT FUND 0.00
190 DISASTER RECOVERY FUND 0.00
201 PARKS AND FACILITIES CAPITAL 0.00
203 STREET IMPROVE. PROJECTS 0.00
207 TECHNOLOGY CAPITAL 0.00
302 LEASE DEBT SERVICE 215.89
611 WATER FUND 604.28
621 STORMWATER FUND 0.00
631 WASTEWATER FUND 61,093.14
641 CITYNET SERVICES FUND 0.00
651 PARKING FUND 0.00
701 CENTRAL GARAGE 0.00
702 FACILITY MAINT.FUND 0.00
703 GENERAL EQUIPMENT REVOLVING 0.00
707 TECHNOLOGY DEVELOPMENT 0.00
711 SELF INSURANCE 91,118.50
891 RECOLOGY SAN BRUNO 0.00
Grand Total: 282,332.53
Totals are through period: 3










 










19 of 82

Cash Fund Total
3,216,137.62 3,273,413.34
11,229,690.95 11,229,690.95
570,794.76 570,794.76
267,515.68 267,515.68
1,937,822.81 1,937,822.81
4,323,864.67 4,323,864.67

0.00 0.00
1,074,201.38 1,074,201.38
1,376,034.55 1,376,034.55
4,298.09 4,298.09
969,488.03 969,488.03
788,120.13 788,120.13
198,209.49 198,209.49
(130,983.27) (130,983.27)
450,483.07 450,483.07
11,992.66 11,992.66
3,785,254.89 3,785,254.89
(57,593.17) (57,593.17)
3,600,181.89 3,600,181.89
2,887,934.47 2,887,934.47
1,197,115.95 1,197,115.95
10,170,356.60 10,170,356.60
75,000.00 75,000.00

0.00 0.00
700,648.55 700,648.55
1,049,109.19 1,121,135.28
6,873,597.60 6,873,597.60
633,527.66 633,527.66
967,630.91 967,630.91
5,684,491.33 5,684,491.33
1,676,977.00 1,676,977.00
5,651,546.71 5,651,546.71
35,949,501.56 35,949,501.56
13,260.44 13,260.44
17,935,840.72 17,935,840.72
13,647,043.55 13,647,043.55
278,599.69 278,599.69
342,229.43 427,831.94
46,645,482.29 46,646,089.04
(1,080,193.42) (1,080,193.42)
52,140,911.97 52,202,012.68
109,555.68 109,555.68
(3,164.75) (3,164.75)
(66,752.70) (66,752.70)
100,929.00 100,929.00
3,006,969.49 3,006,969.49
529,693.40 529,693.40
590,878.74 681,997.24
(71,441.14) (71,441.14)
241,252,794.15 241,620,524.43
* Reconciliation of Pooled Cash & Investments to Portfolio Book Value Investment Portfolio Value 232,209,802.03
Cash on hand - Checking Account 11,469,868.25
Payroll and Accounts Payable Outstanding Checks (2,328,645.21) Deposits in Transit (98,230.92)
General Ledger Cash Balance as of October 31, 2023 241,252,794.15 Prepared By: ____________________________________________________ Reviewed By: ____________________________________________________ glCashInv.rpt Cash and Investments Report Page: 1
2/20/2024 12:31:03PM
City of San BrunoThrough period: 4 Through October 2023 Investments
001 GENERAL FUND 57,275.72
002 GENERAL FUND RESERVE 0.00
003 ONE-TIME REVENUE 0.00
004 CAP IMPROV/ONE-TIME INITIATIVE RSRV 0.00
005 MEASURE G DISTRICT SALES TAX 0.00
006 AMERICAN RESCUE PLAN ACT 0.00
009 PARKING FUND 0.00
101 GAS TAX 0.00
102 MEASURE A TRANSPORTATION TAX 0.00
103 STREET SPECIAL REVENUE 0.00
104 MEASURE W TRANSPORTATION TAX 0.00
111 POLICE ASSET FORFEITURE 0.00
113 POLICE SPECIAL REVENUE 0.00
121 FEDERAL/STATE GRANTS 0.00
122 SOLID WASTE/RECYCL. 0.00
130 IMPACT FEES 0.00
131 IN-LIEU FEES 0.00
132 AGENCY ON AGING 0.00
133 RESTRICTED REVENUES 0.00
136 EMERGENCY DISASTER RESERVE 0.00
137 DEVELOPER PROJECT CONTRIBUTIONS 0.00
138 AFFORDABLE HOUSING IMPACT FEES 0.00
140 DEVELOPER IN-LIEU UNDERGROUNDING 0.00
151 SUCCESSOR AGENCY TO THE SB RDA - OPS 0.00
152 CITY OF SB AS SUCCESSOR HOUSING AGENC 0.00
153 RDA OBLIGATION RETIREMENT FUND 72,026.09
160 COMMUNITY FACILITIES IMPACT FEE 0.00
161 PUBLIC SAFETY FACILITIES IMPACT FEE 0.00
162 GENERAL GOVERNMENT FACILITIES IMPACT
F 0.00
163 TRANSPORTATION FACILITIES IMPACT FEE 0.00
164 UTILITIES FACILITIES IMPACT FEE 0.00
165 BAYHILL SPECIFIC PLAN AREA DEVELOPMEN
T 0.00
166 COMMUNITY BENEFIT FUND 0.00
190 DISASTER RECOVERY FUND 0.00
201 PARKS AND FACILITIES CAPITAL 0.00
203 STREET IMPROVE. PROJECTS 0.00
207 TECHNOLOGY CAPITAL 0.00
302 LEASE DEBT SERVICE 85,602.51
611 WATER FUND 606.75
621 STORMWATER FUND 0.00
631 WASTEWATER FUND 61,100.71
641 CITYNET SERVICES FUND 0.00
651 PARKING FUND 0.00
701 CENTRAL GARAGE 0.00
702 FACILITY MAINT.FUND 0.00
703 GENERAL EQUIPMENT REVOLVING 0.00
707 TECHNOLOGY DEVELOPMENT 0.00
711 SELF INSURANCE 91,118.50
891 RECOLOGY SAN BRUNO 0.00
Grand Total: 367,730.28
Totals are through period: 4










 










20 of 82

Cash Fund Total
4,513,611.14 4,570,886.86
11,230,665.43 11,230,665.43
570,794.76 570,794.76
267,515.68 267,515.68
2,331,054.27 2,331,054.27
4,208,682.25 4,208,682.25

0.00 0.00
1,174,507.13 1,174,507.13
1,492,750.04 1,492,750.04
4,298.09 4,298.09
1,021,211.54 1,021,211.54
785,051.74 785,051.74
213,015.00 213,015.00
(158,596.12) (158,596.12)
458,408.19 458,408.19
10,087.00 10,087.00
3,782,904.89 3,782,904.89
(56,975.82) (56,975.82)
4,025,249.92 4,025,249.92
2,887,934.47 2,887,934.47
1,173,191.79 1,173,191.79
10,170,356.60 10,170,356.60
75,000.00 75,000.00

0.00 0.00
700,648.55 700,648.55
1,049,109.19 1,049,180.12
6,873,597.60 6,873,597.60
633,527.66 633,527.66
967,630.91 967,630.91
5,684,491.33 5,684,491.33
1,676,977.00 1,676,977.00
5,651,546.71 5,651,546.71
35,949,501.56 35,949,501.56
13,260.44 13,260.44
13,169,165.78 13,169,165.78
13,503,112.65 13,503,112.65
166,034.20 166,034.20
256,843.69 342,447.12
47,551,174.55 47,768,199.55
(1,246,086.58) (1,246,086.58)
52,980,518.29 53,586,721.73
346,471.21 346,471.21
(7,639.75) (7,639.75)
(113,613.38) (113,613.38)
(5,469.96) (5,469.96)
2,990,175.14 2,990,175.14
438,811.33 438,811.33
533,840.76 624,959.26
(122,864.68) (122,864.68)
239,821,482.19 240,878,779.21
* Reconciliation of Pooled Cash & Investments to Portfolio Book Value Investment Portfolio Value 219,187,364.21
Cash on hand - Checking Account 21,990,190.44
Payroll and Accounts Payable Outstanding Checks (1,323,824.91) Deposits in Transit (32,247.55)
General Ledger Cash Balance as of November 30, 2023 239,821,482.19 Prepared By: ____________________________________________________ Reviewed By: ____________________________________________________ glCashInv.rpt Cash and Investments Report Page: 1
2/20/2024 12:32:13PM
City of San BrunoThrough period: 5 Through November 2023 Investments
001 GENERAL FUND 57,275.72
002 GENERAL FUND RESERVE 0.00
003 ONE-TIME REVENUE 0.00
004 CAP IMPROV/ONE-TIME INITIATIVE RSRV 0.00
005 MEASURE G DISTRICT SALES TAX 0.00
006 AMERICAN RESCUE PLAN ACT 0.00
009 PARKING FUND 0.00
101 GAS TAX 0.00
102 MEASURE A TRANSPORTATION TAX 0.00
103 STREET SPECIAL REVENUE 0.00
104 MEASURE W TRANSPORTATION TAX 0.00
111 POLICE ASSET FORFEITURE 0.00
113 POLICE SPECIAL REVENUE 0.00
121 FEDERAL/STATE GRANTS 0.00
122 SOLID WASTE/RECYCL. 0.00
130 IMPACT FEES 0.00
131 IN-LIEU FEES 0.00
132 AGENCY ON AGING 0.00
133 RESTRICTED REVENUES 0.00
136 EMERGENCY DISASTER RESERVE 0.00
137 DEVELOPER PROJECT CONTRIBUTIONS 0.00
138 AFFORDABLE HOUSING IMPACT FEES 0.00
140 DEVELOPER IN-LIEU UNDERGROUNDING 0.00
151 SUCCESSOR AGENCY TO THE SB RDA - OPS 0.00
152 CITY OF SB AS SUCCESSOR HOUSING AGENC 0.00
153 RDA OBLIGATION RETIREMENT FUND 70.93
160 COMMUNITY FACILITIES IMPACT FEE 0.00
161 PUBLIC SAFETY FACILITIES IMPACT FEE 0.00
162 GENERAL GOVERNMENT FACILITIES IMPACT
F 0.00
163 TRANSPORTATION FACILITIES IMPACT FEE 0.00
164 UTILITIES FACILITIES IMPACT FEE 0.00
165 BAYHILL SPECIFIC PLAN AREA DEVELOPMEN
T 0.00
166 COMMUNITY BENEFIT FUND 0.00
190 DISASTER RECOVERY FUND 0.00
201 PARKS AND FACILITIES CAPITAL 0.00
203 STREET IMPROVE. PROJECTS 0.00
207 TECHNOLOGY CAPITAL 0.00
302 LEASE DEBT SERVICE 85,603.43
611 WATER FUND 217,025.00
621 STORMWATER FUND 0.00
631 WASTEWATER FUND 606,203.44
641 CITYNET SERVICES FUND 0.00
651 PARKING FUND 0.00
701 CENTRAL GARAGE 0.00
702 FACILITY MAINT.FUND 0.00
703 GENERAL EQUIPMENT REVOLVING 0.00
707 TECHNOLOGY DEVELOPMENT 0.00
711 SELF INSURANCE 91,118.50
891 RECOLOGY SAN BRUNO 0.00
Grand Total: 1,057,297.02
Totals are through period: 5










 










21 of 82

Cash Fund Total
10,896,741.81 10,954,017.53
11,230,665.43 11,230,665.43
570,794.76 570,794.76
267,515.68 267,515.68
2,608,717.81 2,608,717.81
4,048,880.57 4,048,880.57

0.00 0.00
1,149,688.80 1,149,688.80
1,592,529.15 1,592,529.15
4,298.09 4,298.09
1,065,476.06 1,065,476.06
780,256.67 780,256.67
200,312.39 200,312.39
(183,902.96) (183,902.96)
438,861.46 438,861.46
10,087.00 10,087.00
3,782,904.89 3,782,904.89
(127,610.03) (127,610.03)
4,047,631.93 4,047,631.93
2,887,934.47 2,887,934.47
986,903.53 986,903.53
10,170,356.60 10,170,356.60
75,000.00 75,000.00

0.00 0.00
700,648.55 700,648.55
1,049,109.19 1,049,180.40
6,873,597.60 6,873,597.60
633,527.66 633,527.66
967,630.91 967,630.91
5,684,491.33 5,684,491.33
1,676,977.00 1,676,977.00
5,039,118.76 5,039,118.76
35,949,501.56 35,949,501.56
13,260.44 13,260.44
11,047,232.24 11,047,232.24
12,514,005.08 12,514,005.08
134,930.93 134,930.93
598,622.69 598,932.40
46,709,343.88 46,926,371.38
(1,437,507.18) (1,437,507.18)
50,426,444.97 51,032,656.08
140,934.10 140,934.10
(8,560.75) (8,560.75)
7,013.42 7,013.42
305,584.34 305,584.34
2,912,406.20 2,912,406.20
624,068.45 624,068.45
1,344,810.50 1,435,929.00
(134,438.81) (134,438.81)
240,276,797.17 241,248,810.92
* Reconciliation of Pooled Cash & Investments to Portfolio Book Value Investment Portfolio Value 228,207,306.42
Cash on hand - Checking Account 15,232,258.50
Payroll and Accounts Payable Outstanding Checks (3,059,741.29) Deposits in Transit (103,026.46)
General Ledger Cash Balance as of December 31, 2023 240,276,797.17 Prepared By: ____________________________________________________ Reviewed By: ____________________________________________________ 891 RECOLOGY SAN BRUNO 0.00
Grand Total: 972,013.75
Totals are through period: 6
707 TECHNOLOGY DEVELOPMENT 0.00
711 SELF INSURANCE 91,118.50
702 FACILITY MAINT.FUND 0.00
703 GENERAL EQUIPMENT REVOLVING 0.00
651 PARKING FUND 0.00
701 CENTRAL GARAGE 0.00
631 WASTEWATER FUND 606,211.11
641 CITYNET SERVICES FUND 0.00
611 WATER FUND 217,027.50
621 STORMWATER FUND 0.00
207 TECHNOLOGY CAPITAL 0.00
302 LEASE DEBT SERVICE 309.71
201 PARKS AND FACILITIES CAPITAL 0.00
203 STREET IMPROVE. PROJECTS 0.00
166 COMMUNITY BENEFIT FUND 0.00
190 DISASTER RECOVERY FUND 0.00
164 UTILITIES FACILITIES IMPACT FEE 0.00
165 BAYHILL SPECIFIC PLAN AREA DEVELOPMEN T 0.00
162 GENERAL GOVERNMENT FACILITIES IMPACT F 0.00
163 TRANSPORTATION FACILITIES IMPACT FEE 0.00
160 COMMUNITY FACILITIES IMPACT FEE 0.00
161 PUBLIC SAFETY FACILITIES IMPACT FEE 0.00
152 CITY OF SB AS SUCCESSOR HOUSING AGENC 0.00
153 RDA OBLIGATION RETIREMENT FUND 71.21
140 DEVELOPER IN-LIEU UNDERGROUNDING 0.00
151 SUCCESSOR AGENCY TO THE SB RDA - OPS 0.00
137 DEVELOPER PROJECT CONTRIBUTIONS 0.00
138 AFFORDABLE HOUSING IMPACT FEES 0.00
133 RESTRICTED REVENUES 0.00
136 EMERGENCY DISASTER RESERVE 0.00
131 IN-LIEU FEES 0.00
132 AGENCY ON AGING 0.00
122 SOLID WASTE/RECYCL. 0.00
130 IMPACT FEES 0.00
113 POLICE SPECIAL REVENUE 0.00
121 FEDERAL/STATE GRANTS 0.00
104 MEASURE W TRANSPORTATION TAX 0.00
111 POLICE ASSET FORFEITURE 0.00
102 MEASURE A TRANSPORTATION TAX 0.00
103 STREET SPECIAL REVENUE 0.00
009 PARKING FUND 0.00
101 GAS TAX 0.00
005 MEASURE G DISTRICT SALES TAX 0.00
006 AMERICAN RESCUE PLAN ACT 0.00
003 ONE-TIME REVENUE 0.00
004 CAP IMPROV/ONE-TIME INITIATIVE RSRV 0.00
Investments
001 GENERAL FUND 57,275.72
002 GENERAL FUND RESERVE 0.00
glCashInv.rpt Cash and Investments Report Page: 1
2/20/2024 12:33:17PM
City of San BrunoThrough period: 6 Through December 2023 









 










22 of 82

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 27, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex 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 Staff to Re-advertise for the Huntington Avenue Bicycle and Pedestrian Improvements Project
BACKGROUND:

The Huntington Avenue Bicycle and Pedestrian Improvements Project (“Project”) is an approved project in the City of San Bruno’s Capital Improvement Program. The project scope is to improve the pedestrian and bicycle network on Huntington Avenue from San Bruno Avenue to the entrance of the Centennial Way Trail near the city limits with South San Francisco.

Huntington Avenue within the vicinity of the project is currently configured as a four-lane divided roadway with two (2) lanes in both directions and a landscaped median. The project would construct a separated two-way Class IV cycle track by reconstructing the sidewalk and asphalt roadway along northbound Huntington Avenue. A cycle track is a protected bike lane that is physically separated from the vehicular travel lane. The existing landscaped median would need to be narrowed or removed and the width of travel lanes along northbound Huntington Avenue would be reduced to accommodate the construction of a cycle track while continuing to maintain a pedestrian sidewalk and two lanes of vehicular northbound lanes. Project improvements would consist of roadway and median reconstruction, concrete sidewalk replacement, relocation of street lighting, drainage inlet construction, pavement delineation, traffic signal modifications, and tree/landscape removal.

At the City Council meeting on March 23, 2021, staff presented various alternatives for City Council consideration. These alternatives included removing a northbound travel lane to reduce project costs, which would result in an increase to the corridor travel time by an additional 10 to 20 seconds, or completing the project without travel lane removal but in phased segments as funding becomes available. Those two segments were defined as Segment 1 (San Bruno Avenue to Herman Street) and Segment 2 (Herman Street to Centennial Way Trail). Staff was directed to proceed with the design of both Segment 1 and Segment 2, to construct Segment 1 upon design completion and to seek additional funds to construct Segment 2. The design services agreement was authorized by City Council to design both segments with Segment 1 being designed as fully independent while also facilitating a future connection to Segment 2.

Bidding documents for Segment 1 were completed in November of 2023 and on December 13, 2024, staff issued a notice inviting bids for the construction of the Project. The notice inviting 23 of 82
Item 6e.

Honorable Mayor and Members of the City Council
February 27, 2024

7 7
2 bids was sent to contractors, posted on the City’s website, and provided to construction distribution plan rooms.

DISCUSSION:

On January 11, 2024, staff conducted the bid opening for the project and received six (6) bids which are as follows:

No. Contractor Name Bid Total
1 Interstate Grading & Paving, Inc. $2,164,680.00
2 JPB Designs, Inc. $2,427,775.00
3 Golden Bay Construction $2,428,471.50
4 O’Grady Paving Inc. $2,439,986.00
5 Sposeto Engineering, Inc. $2,633,459.00
6 Ray’s Electric $2,659,519.53
Engineer’s Estimate $2,500,020.00
The lowest bid received was from Interstate Grading & Paving, Inc. in the amount of $2,164,680.00. After careful review of the bid documents, staff found the bid to be non- responsive for not meeting the project specifications by exceeding the 5% mobilization limit. The second, third, fifth, and sixth lowest bids were also found to be non-responsive due to not meeting project mobilization specifications. After reviewing the bids and project documents with the City Attorney’s Office, staff recommends that Council reject all bids and direct staff to re- advertise the project.

FISCAL IMPACT:

The total cost of the re-bid process including advertisement is approximately $2,000 and are covered in the project costs. 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.

ALTERNATIVES:

1. None
RECOMMENDATION:

Adopt a Resolution Rejecting All Bids and Authorizing Staff to Re-advertise for the Huntington Avenue Bicycle and Pedestrian Improvements Project.

ATTACHMENTS:

1. Resolution

24 of 82

2 2
6 1
RESOLUTION NO. 2024 - ___

RESOLUTION REJECTING ALL BIDS AND AUTHORIZING STAFF TO

RE-ADVERTISE FOR THE HUNTINGTON AVENUE BICYCLE AND PEDESTRIAN

IMPROVEMENTS PROJECT
WHEREAS, the City advertised the Huntington Avenue Bicycle and Pedestrian Improvements Project (“Project”) for bid in compliance with California Public Contract Code, and local purchasing regulations;
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 responsive and responsible bidder submitting a responsive bid;
WHEREAS, pursuant to California Public Contract Code Section 20166, in its discretion, the City may reject any bids presented and re-advertise the Project; WHEREAS, Staff has evaluated the bids with the City Attorney’s Office and found it in the best interests of the City to reject all bids and re-advertise the Project; NOW, THEREFORE, BE IT RESOLVED that pursuant to California Public Contract Code Section 20166, the City Council rejects all bids and authorizes Staff to re-advertise for the Huntington Avenue Bicycle and Pedestrian Improvements Project. -o0o-
I, hereby certify that the foregoing Resolution No. 2024 - _______ was introduced and adopted by the San Bruno City Council at a regular meeting on February 27, 2024, by the following vote:

AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk
25 of 82
ATTACHMENT 1
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 27, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Matthew Lee, P.E., Public Works Director
Jake Zhang, Assistant Engineer
SUBJECT: Consider Adoption of a Resolution Authorizing the City Manager to Execute an Amendment to the Agreement with Bellecci & Associates, Inc. for Design and Construction Support Services in the Amount Not to Exceed $387,648 for the 2023-24 and 2024-25 Street Rehabilitation Project
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 62.

Pavement in “Good” condition has a PCI above 70, pavement in “Fair” condition has a PCI between 50 and 69, pavement in “Poor” condition has a PCI between 25 and 49, and finally, pavement in “Failed” condition has a PCI below 25.

On November 8, 2022, the City Council authorized the City Manager to execute an agreement with Bellecci & Associates, Inc. for design services in an amount not to exceed $529,760 to design the 2022-23 Street Rehabilitation Project. Bellecci & Associates was selected based on the firm’s understanding of the scope of services, qualifications and experience of the project manager(s) and team, qualifications relating to engineering services, and experience with design and construction of CIP projects. The scope of work included testing and evaluating the pavement by collecting core samples, performing deflection testing and developing design recommendations for streets in fair condition, preparing construction bid documents, and providing design support services during construction. The design was completed in August 2023. Construction began in November 2023 and is expected to be complete in summer 2024.

To enable future projects to be designed more efficiently, all remaining streets on the failed list and near failed list as of June 13, 2023 were proposed to be evaluated under one contract instead of by individual design contract. On October 25, 2022, the City Council authorized the City Manager to execute an agreement for consultant services with Pavement Engineering, Inc. to provide pavement evaluation services that included collecting core samples, performing deflection testing, and developing design recommendations for all remaining streets on the failed and near failed list.
26 of 82
Item 6f.

Honorable Mayor and Members of the City Council
February 27, 2024

7 6
9 DISCUSSION:

To expedite the construction of the 2023-24 and 2024-25 Street Rehabilitation Project (“Project”) to begin in fall 2024, staff is recommending amending the existing design services agreement with Bellecci & Associates, Inc. to add budget in the amount of $387,648 to design and provide construction support services for the Project. Because pavement testing and evaluation were conducted on most of the street segments being considered in the Project by Pavement Engineering, Inc. as discussed above, the design will be streamlined to meet the anticipated construction schedule, weather depending.

Bellecci & Associates will review approximately 30 sections of street pavement with PCIs of 8- 62 for pavement treatment within the 2023-24 and 2024-25 fiscal years’ construction budget. Pavement sections that cannot be included in the Project due to budget, will be considered for subsequent paving projects based on available budget.

The Project will repair or replace portions of existing pavement and prevent further deterioration to increase pavement longevity and install accessible curb ramps within project limits.

Design of the Project is expected to be complete in summer of 2024 and staff will request for authorization to award construction in the Fiscal Year 2024-25.

FISCAL IMPACT:

Bellecci & Associate, Inc.’s original approved agreement amount was $529,760. This amendment request for $387,648 will be allocated from the 2023-24 Street Rehabilitation Project (Project Number 60039) resulting in a total revised agreement amount of $914,408.

There is adequate balance available in Project 60039 to cover the amendment amount.

ENVIRONMENTAL IMPACT:

This project falls withing the Categorical Exemption set forth in CEQA guidelines, Section 15301, which exempts the rehabilitation of deteriorated existing facilities that involve negligible or no expansion of use.

RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute an Amendment to the Agreement with Bellecci & Associates, Inc. for Design and Construction Support Services in the amount not to exceed $387,648 for the 2023-24 and 2024-25 Street Rehabilitation Project ALTERNATIVES:

1. Do not approve the agreement amendment with Bellecci & Associates, Inc. for design and construction support services.

ATTACHMENTS:

1. Resolution

2. Project Site Map

3. CIP Budget

27 of 82

RESOLUTION NO. 2024 - ___

A RESOLUTION AUTHORIZING AN AMENDMENT TO THE AGREEMENT WITH BELLECCI & ASSOCIATES, INC. FOR DESIGN AND CONSTRUCTION SERVICES IN THE AMOUNT NOT TO EXCEED $387,648 FOR THE 2023-24 AND 2024-25 STREET REHABILITATION

PROJECT
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, on November 8, 2022, the City Council authorized the City Manager to execute an agreement with Bellecci & Associates, Inc. for design services in an amount not to exceed $529,760 to design 2022-23 Street Rehabilitation Project; and WHEREAS, Bellecci & Associates was selected based on the firm’s understanding of the scope of services, qualifications and experience of the project manager(s) and team, qualifications relating to engineering services, and experience with design and construction of CIP projects; and
WHEREAS, the scope of work included testing and evaluating the pavement by collecting core samples, performing deflection testing and developing design recommendations for streets in fair condition, preparing construction bid documents, and providing design support services during construction; and
WHEREAS, to enable future projects to be designed more efficiently, all remaining streets on the failed list and near failed list as of June 13, 2023 were proposed to be evaluated under one contract instead of by individual design contract; and WHEREAS, on October 25, 2022, the City Council authorized the City Manager to execute an agreement for consultant services with Pavement Engineering, Inc. to provide pavement evaluation services that included collecting core samples, performing deflection testing, and developing design recommendations for all remaining streets on the failed and near failed list; and WHEREAS, to expedite the construction of the 2023-24 and 2024-25 Street Rehabilitation Project (“Project”) to begin in fall 2024, staff is recommending amending the existing design services agreement with Bellecci & Associates, Inc. to add budget in the amount of $387,648 to design and provide construction support services for the Project; and WHEREAS, Bellecci & Associates will review approximately 30 street pavement with PCIs of 8-62 for pavement treatment within the 2023-24 and 2024-25 fiscal years’ construction budget.

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

Authorizes an amendment to the agreement with Bellecci & Associates, Inc. for design and construction support services in the amount not to exceed $387,648 for the 2023-24 and 2024- 25 Street Rehabilitation Project.
---oOo---
I hereby certify that foregoing Resolution No. 2024 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on 28 of 82
ATTACHMENT 1
2 2
7 7
February 27, 2024, by the following vote:

AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk

29 of 82

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30 of 82
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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ATTACHMENT 3
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 27, 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 Introducing, Reading by Title Only and Waiving a Further Reading of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Adopting by Reference Chapter 4.98 of the San Mateo County Ordinance Code (Tobacco Retailer Permit); Repealing and Replacing in its Entirety San Bruno Municipal Code Chapter 6.52 (Tobacco Retailer Permit) in Connection with such Adoption; and Finding the Amendment Exempt from the California Environmental Quality Act” and Set Public Hearing on Adoption of Ordinance for March 26, 2024 BACKGROUND:

Since 2009, the City of San Bruno has utilized services from the San Mateo County Health Department for license and renewal administration, inspections, monitoring, and enforcement for Tobacco Retailers. Chapter 6.52 of the San Bruno Municipal Code requires Tobacco Retailers obtain permits from San Mateo County Health before obtaining a business license and zoning clearance to operate. This requirement was codified in Chapter 6.52 of the San Bruno Municipal Code. Thirteen other jurisdictions utilized the County’s Tobacco Retailer services.

In July 2022, the County of San Mateo (County) placed a hold on all new permits and renewals while the County worked to update their regulations. Based on data reported by the County in December 2023, the City of San Bruno had 34 tobacco retailers when the County paused new permits and renewals. These businesses are shown in Map of Current San Bruno Tobacco Retailers and Buffers (Attachment 3).

In May 2023, the County of San Mateo Board of Supervisors adopted a new Chapter 4.98 of the County Code of Ordinances regarding Tobacco Retailer’s Permits. The public policy basis for adoption of the new Ordinance is included in the recitals of the adopted San Mateo County Chapter 4.98 – Tobacco Retailer Permit Regulations (Attachment 2). This includes reported levels of the use of tobacco by youth and documented sales of tobacco by retailers to underage decoys as part of the San Mateo County Sherriff’s Office coordinated undercover enforcement operations. The County also cites that strong policy enforcement and monitoring of retailer compliance with tobacco control policies is necessary to achieve reductions in youth tobacco sales.

Since the City depends on the County for administrating the County’s Tobacco Retailer program, the City Council must adopt the new County regulations in its entirety, without any local amendments. If the City does so, each of the tobacco retailers with valid permits as of 32 of 82
Item 7a.

Honorable Mayor and Members of the City Council
February 27, 2024

2022 may continue operation as long as they comply with revised regulations about product sales and maintain annual renewals.

DISCUSSION:

The County Board of Supervisors considers the new County regulations to be appropriate and necessary to implement best practices in tobacco prevention in order to protect the health, safety, and welfare of residents. The following discussion includes the most substantive provisions of the ordinance that would affect existing and future tobacco retailers within San Bruno:

Buffers for new Tobacco Retailer Permits (SMC 4.98.230) The new regulations establish buffers where new Tobacco Retailer Permits are no longer allowed. There is a 1,000-foot buffer from a Youth-Populated Area (i.e. a school, library, playground, daycare, etc.), and a 500-foot buffer from another tobacco retailer. As shown in Attachment 3, the majority of San Bruno’s existing Tobacco Retailers are within these buffers.

These retailers are allowed to continue to operate so long as they comply with the new prohibitions and maintain their annual renewals. There are few commercial areas where a new Tobacco Retailer could open. And as existing retailers exit the market over time, many of the existing locations would not be able to have a new retailer take over the existing location, and thus locations would cease operations.

Prohibition (SMC 4.98.160)
The County regulations prohibit the sale of electronic smoking devices and prohibits pharmacies from selling any tobacco products. Typically, a retail pharmacy business sells a wide range of products, and ceasing the sale of one product should not significantly damage the economic viability of that business. The same should be true of electronic smoking devices.

County regulations also prohibit a tobacco retailer from selling any flavored tobacco product or tobacco flavor enhancer. The County specifically includes all hookah products in their definition of flavored tobacco, thereby banning hookah entirely. Paradise Hookah Lounge, an existing hookah lounge in downtown, would have to close or completely or change their business model based on the County’s new regulations.

Notification
The City mailed a notice to all businesses with existing Tobacco Retailer Permits with the County as of 2022, including Paradise Hookah Lounge, informing them of the County’s amended regulations and this agenda item where City Council would consider continuing to utilize County services by adopting the new County regulations. In addition, staff visited Paradise Hookah Lounge and spoke to the owners directly.

Other Jurisdictions
Five cities within San Mateo County have adopted the new County regulations: Millbrae, San Carlos and San Mateo in 2023, and East Palo Alto and Menlo Park in 2024. South San Francisco is considering adoption. Only Burlingame has formally declined to adopt the new County regulations and seeks to adopt and operate a local program primarily to allow hookah.

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Honorable Mayor and Members of the City Council
February 27, 2024

FISCAL IMPACT:

There is minimal fiscal impact by adopting the County’s regulations. There would be a modest decrease in citywide sales tax revenue by certain products not being able to be sold, or the closure or re-programming of one local business. There would be no on-going costs to the City for monitoring and enforcement of the regulations, as the County would perform these functions.

ENVIRONMENTAL IMPACT:

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.

RECOMMENDATION:

Introduce, Read by Title Only and Waive a Further Reading of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Adopting by Reference Chapter 4.98 of the San Mateo County Ordinance Code (Tobacco Retailer Permit); Repealing and Replacing in its Entirety San Bruno Municipal Code Chapter 6.52 (Tobacco Retailer Permit) in Connection with such Adoption; and Finding the Amendment Exempt from the California Environmental Quality Act” and Set Public Hearing on Adoption of Ordinance for March 26, 2024 ALTERNATIVES:

1. Do not adopt the recommended ordinance, and:
a. Do not direct staff to prepare a local tobacco retailer ordinance. With this alternative, the City will have no regulation, monitoring or enforcement of tobacco retailers beyond that which is provided by the State. Staff does not recommend this approach because of the potential negative effects of unregulated tobacco retailers on the community; or b. Direct staff to prepare a local tobacco retailer ordinance that differs from the County regulations. While a local ordinance can be more customized for San Bruno, this alternative would have significant short and long-term fiscal impacts. There would be a one-time fiscal impact for the creation of the local program, particularly given the City’s lack of expertise for tobacco licensing, inspections and monitoring. There would be on-going fiscal impacts from the required license and renewal administration, inspections, monitoring and enforcement. Staff does not recommend this approach because of the fiscal impacts and limited resources for developing new programs given other priority initiatives.

ATTACHMENTS:

1. Ordinance

2. San Mateo County Chapter 4.98 – Tobacco Retailer Permit Regulations

3. Map of Current San Bruno Tobacco Retailers and Buffers

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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ADOPTING BY REFERENCE CHAPTER 4.98 OF THE SAN MATEO COUNTY ORDINANCE CODE (TOBACCO RETAILER PERMIT); REPEALING AND

REPLACING IN ITS ENTIRETY SAN BRUNO MUNICIPAL CODE
CHAPTER 6.52 (TOBACCO RETAILER PERMIT) IN CONNECTION
WITH SUCH ADOPTION; AND FINDING THE AMENDMENT EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of San Bruno currently authorizes personnel from the County of San Mateo to administer and enforce Municipal Code Chapter 6.52 (Tobacco Retailer Permit) on behalf of the City; and
WHEREAS, the San Mateo County Board of Supervisors found that a stronger local licensing system for tobacco retailers is appropriate to ensure that retailers comply with tobacco control laws and business standards of the County of San Mateo in order to protect the health, safety, and welfare of our residents, and adopted Ordinance No. 4878 (“Ordinance”) to amend San Mateo County Code of Ordinances Chapter 4.98 – Tobacco Retailer Permit on May 23, 2023; and; WHEREAS, a local licensing system for tobacco retailers is appropriate to ensure that retailers comply with tobacco control laws and business standards to protect the health, safety, and welfare of San Bruno residents;
WHEREAS, San Mateo County has indicated it will continue to administer a tobacco retailer permit program for those cities which adopt the County's same comprehensive ordinance in its entirety; and
NOW, THEREFORE, the City Council of the City of San Bruno does ordain as follows:

SECTION 1. Chapter 6.52 – Tobacco Retailer Permit, is hereby repealed and replaced with the following:

Chapter 6.52 TOBACCO RETAILER PERMIT

6.52.010 Adoption.

The city adopts by reference Chapter 4.98 of the San Mateo County Code of Ordinances, titled “Tobacco Retailer Permit” in its entirety, as such chapter now exists and as such chapter may be amended in the future by the San Mateo County Board of Supervisors, for the purpose of regulating tobacco retailers.

6.52.020 Authorization of enforcement.

The Director is hereby authorized to administer and enforce this chapter on behalf of the city, within the jurisdiction of this city. For the purposes of this chapter, “Director” means the Chief of San Mateo County Health, or designee.

6.52.030 Suspension or Revocation of Permit.
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ATTACHMENT 1
A. Grounds for Suspension or Revocation.
(1) A Tobacco Retailer Permit may be suspended or revoked, as set forth below in subdivision B., if any court of a competent jurisdiction determines, or the Director finds, based on a preponderance of the evidence after notice and opportunity for the Tobacco Retailer to be heard, that either of the following violations have occurred:
i. After the Permit was issued it is determined that the Application for the Permit is incomplete or inaccurate.
ii. The Tobacco Retailer or Tobacco Retailer’s agent has violated any of the requirements, conditions, or prohibitions of this Chapter or any applicable local, state, or federal tobacco-related law.
(2) Notwithstanding the foregoing, a Tobacco Retailer Permit shall be suspended or revoked, for the maximum time periods and as set forth in subdivision B., if any court of competent jurisdiction determines, or the Director finds, based on a preponderance of evidence and after notice and opportunity for the Tobacco Retailer to be heard, that the Tobacco Retailer, or any agent or employee of the Tobacco Retailer, has Sold Tobacco Products to any Person(s) under the age of 21 years.

B. Time Period of Suspension of Permit.
(1) Upon the first violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to 30 days.
(2) Upon the second violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to 90 days.
(3) Upon the third violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to one year.
(4) Upon the fourth violation within any sixty (60) month period, the Permit to Sell Tobacco Products shall be revoked. If a Permit is revoked, the Retailer shall not be eligible for a new Permit for a period of five (5) years after the effective date of revocation.

6.52.040 Administrative Fine.

A. Grounds for Fine. A fine shall be imposed on a Tobacco Retailer upon findings made by the Director, based on a preponderance of the evidence, that any Tobacco Retailer, or any agent or employee of the Tobacco Retailer, has violated any of the requirements, conditions, or prohibitions of this Chapter. A fine shall be imposed in the maximum amounts set forth in subsection B. of this section upon findings made by the Director that the Tobacco Retailer, or any agent or employee of the Tobacco Retailer, has Sold any Tobacco Product to any Person(s) under the age of 21 years. Any administrative fine shall be imposed solely against the Tobacco Retailer, not the Tobacco Retailer’s employees or agents.

B. Amount of Fine. Upon written findings made by the Director under subsection A., the person or entity holding the Tobacco Retailer Permit shall be subject to an administrative fine for each such violation as follows:

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(1) A fine not exceeding five hundred dollars ($500) for a first violation within a sixty (60) month period; and
(2) A fine not exceeding one thousand dollars ($1,000) for each subsequent violation within a sixty (60) month period.

C. Each day that Tobacco Products are Sold or offered for Sale without a Permit or otherwise in violation of this Chapter shall constitute a separate violation. A finding of "offered for Sale" in violation of this Chapter will be made if Tobacco Products are either actually Sold and/or displayed in the retail establishment, or if advertisements offering to Sell Tobacco Products are visible to customers.

SECTION 2. California Environmental Quality Act (CEQA). 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 3. Severability. If any provision, clause, sentence or paragraph of this chapter or the application thereof to any person or circumstances shall be held invalid, such invalidity shall not affect the other provisions of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

SECTION 4. Effective Date. The City Clerk shall certify to the adoption of this ordinance and shall cause a summary thereof to be published in a newspaper of general circulation at least five (5) days prior to the meeting at which the proposed ordinance is to be adopted and shall post a certified copy of the proposed ordinance in the office of the City Clerk, and within fifteen (15) days of its adoption, shall cause a summary of it to be published, including the vote for and against the same, and shall post a certified copy of the adopted ordinance in the office of the City Clerk, in accordance with California Government Code Section 36933.
_______________________________
ATTEST: Rico E. Medina, Mayor ______________________________
Lupita Huerta, City Clerk
APPROVED AS TO FORM:

_______________________________
Trisha Ortiz, City Attorney
---oOo---

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

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

_______________________________
Lupita Huerta, City Clerk

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ORDINANCE NO. ______

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA * * * * * *
AN ORDINANCE REPEALING CHAPTERS 4.95, 4.98, AND 4.99, AND ADOPTING A NEW CHAPTER 4.98 OF TITLE 4 OF THE SAN MATEO COUNTY ORDINANCE

CODE TO CONSOLIDATE AND CLARIFY EXISTING DEFINITIONS AND ENACT

ADDITIONAL REQUIREMENTS FOR TOBACCO RETAILER PERMITS
The Board of Supervisors of the County of San Mateo, State of California, ORDAINS as follows:

SECTION 1. Findings.

The Board of Supervisors finds and determines that:
(a) A local licensing system for tobacco retailers is appropriate to ensure that retailers comply with tobacco control laws and business standards of the Board of Supervisors, to protec t the health, safety, and welfare of San Mateo County residents.
(b) Despite the state’s efforts to limit youth access to tobacco, youth are still able to access tobacco products, as evidenced by the following:

1. In California, over 67% of current and for mer adult smokers started smoking by the age of 18;¹

2. In a survey taken i n 2019-20, 28.6% of California high school students reported that th ey had used a tobacco product and 9.7% of students reported that they had used tobacco in the last 30 days;² and

3. According to the 201 9-20 California Student Tobacco Surv ey, for San Mateo County, the prevalence of the use of vaping devices among high school students was 8.7%.³
(c) California retailers continue to sell tobacco to underage consumers, evidenced by the following:

1. According to the 2019 -20 California Student Tobacco Survey, among current underaged vapers, 51.2% reported paying for their vapes. Of those who paid for their vapes, 27.1% reported buying them from a retail store;⁴

2. In the Bay Area, 21.6% of licensed tobacco retailers sold tobacco products to underage decoys in 2019;⁵ and
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ATTACHMENT 2

3. In 2019, the San Mateo County Sheriff’s Office coordinated undercover enforcement operations and found that 25 out of 289 visits to retailers by underage decoys resulted in tobacco sales to youth decoys. (d) The tobacco industr y’s price discou nting strategies, such as coupons and multiple-package discounts, are popular among consumers, with more than half of adults using some price minimization strategy. In California, indi viduals who use price minimization strategies save an a verage $1.04 per pack (or 18.6% off the total price per pack).⁶
(e) The density and proximity of tobacco retailers influence smoking behaviors, including the number of cigarettes smoked per day.⁷
(f) Adults who smoke have a harder time quitting when residential proximity to tobacco retailers is smaller⁸ and density is higher.⁹
(g) Policies to reduce tobacco retailer density have been shown to be effective¹º and may reduce or eliminate inequities in the location and distribution of tobacco retailers.
(h) Strict enforcement of policies prohibiting retail sales of cigarettes to youth, sales of cigarettes via vending machines, and other means through which youth gain access to tobacco in the commercial settings can limit their opportunities to obtain these products.¹¹
(i) Strong policy enforcement and monitorin g of retailer compliance with tobacco control policies (e .g., requiring identification checks) is necessary to achieve reductions in youth tobacco sales.¹²
(j) The Board of Supervisors has a substantial interest in protecting youth and underserved populations from the harms of tobacco use.
(k) The Board of Supervisors finds that a stronger local licensing system for tobacco retailers is appropriate to ensure that retailers comply with tobacco control laws and business standards of the County of San Mate o in order to protect the health, safety, and welfare of our residents.
(l) As lessons are learned with implementation of licensing systems throughout the State, it is appropriate to update existing County regulations to ensure that the County implements best practices in tobacco prevention. 40 of 82
SECTION 2. Chapters 4.95, 4.98 and 4.99 of the San Mateo County Ordinance Code are hereby repealed and replaced in their entirety by a new Chapter 4.98 to be numbered and entitled and to read as follows:

Chapter 4.98 - TOBACCO RETAILER PERMIT

4.98.100 - Definitions.
(a) "Characterizing Flavor" means a distinguishable taste or aroma , or both, other than the taste or aroma of tobacco, imparted by a Tobacco Product or any byproduct produced by the Tobacco Product. Characterizing flavors include, but are not limited to, tastes or aroma relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, menthol, mint, wintergreen, herb, or spice. A Tobacco Product shall not be determined to hav e a Characterizing Flavor solely because of the use of additives or flavorings or the provision of ingredient information. Rather, it is the presence of a distinguishable taste or aroma, or both, as described in the first sentence of this definition, that constitutes a Characterizing Flavor.
(b) "Constituent" means any ingredient, substance, chemical, or compound, other than tobacco, water, or reconstituted tobacco sheet that is added by the manufacturer to a Tobacco Product during the processing, manufacture, or packing of the Tobacco Product.
(c) “Consumer” means a person who purchases a Tobacco Product for consumption.
(d) “Coupon” means any voucher, rebate, card, paper, note, form, statement, ticket, image, or other issue, whether in paper, digital, or other form , used for commercial purposes to obtain an article, product, service, or accommodation without charge or at a discounted price.
(e) “Director” means the Chief of San Mateo County Health, or designee. (f) "Distinguishable" means perceivable by either the sense of smell or taste. (g) “Electronic Smoking Device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e -cigarette, e -cigar, e -pipe, vape pen, or e - hookah. Electronic smoking device includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine, and whether natural or synthetic. “E lectronic Smoking Device” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic 41 of 82
purposes where such product is marketed and sold solely for suc h an approved purpose.
(h) "Flavored Tobacco Product" means any Tobacco Product that contains a Constituent that imparts a Characterizing Flavor.
(i) “Full Retail Price” means the price listed for a Tobacco Product on its Packaging or on any related shelving, advertising, or display where the Tobacco Product is sold or offered for Sale, plus all applicable taxes and fees if such taxes and fees are not included in the listed price.
(j) “Labeling” means written, printed, pictorial, or graphic matter upon any Tobacco Product or any of its packaging.
(k) “Packaging” means a pack, box, carton, or container of any kind or, if no other container, any wrapping (including cellophane) in which a Tobacco Product is sold, or offered for Sale, to a Consumer.
(l) “Permit” or “Tobacco Retailer Permit” means a valid permit issued by the Director to a Person to act as a Tobacco Retailer.
(m) “Person” means any natural person, partnership, cooperative association, corporation, personal representative, receiver, trustee, assignee, or any oth er entity.
(n) "Pharmacy" means any retail establishment in which the profession of pharmacy is practiced by a pharmacist licensed by the State of California in accordance with the Business and Professions Code and where prescription pharmaceuticals are offer ed for Sale, regardless of whether the retail establishment Sells other retail goods in addition to prescription pharmaceuticals. (o) “Sale” or “Sell” means transfer to, exchange, barter, or distribute for a commercial purpose.
(p) “Self-Service Display” shall be defined as the open display or storage of Tobacco Products in a manner that is physically accessible to the general public without the assistance of the retailer or employee of the retailer and a direct face -to-face transfer between the purchaser and th e retailer or employee of the retailer. A vending machine is a form of self-service display.
(q) “Tobacco Paraphernalia” means any item designed or marketed for the consumption, use, or preparation of Tobacco Products.
(r) “Tobacco" or "Tobacco Product(s)" means:
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(1) any product containing, made of, or derived from tobacco or nicotine , whether natural or synthetic, that is intended for human consumption or is likely to be consumed, whether inhaled, absorbed, or ingested by any other means, including but not limited to, a cigarette, a cigar, pipe tobacco, chewing tobacco, snuff, or snus;
(2) any electronic smoking device and any substances that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine, and whether natural or synthetic; or (3) any component, part, or accessory of (1) or (2), whether or not any of these contains tobacco or nicotine, whether natural or synthetic, including but not limited to filters, rolling papers, blunt or hemp wraps, hookahs, mouthpieces, and pipes.
(4) “Tobacco Product” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where such product is marketed and sold solely for such an approved purpose.
(s) “Tobacco Product Flavor Enhancer” means a product designed, manufactured, produced, marketed or Sold to produce a Characterizing Flavor when added to a Tobacco Product.
(t) “Tobacco Retailer” means any Person who Sells, or offers for Sale, Tobacco Products. This definition is without regard to the quantity of Tobacco Products sold or offered for Sale.
(u) “Youth-Populated Area” means a parcel of real property that is occupied , in whole or in part, by any of the following:
(1) a private or public school that educates children in grades kindergarten through high school;
(2) a library that is open to the public;
(3) a playground that is open to the public;
(4) a youth center, defined as a facility where children ages 6 to 17 come together for programs and activities;
(5) a recreation facility open to the public, defined as an area, place, structure, or other facility that is used either permanently or temporarily for community recreation, even though it may be used for other purposes. “Recreation facility” includes, but is not limited to, a gymnasium, playing court, playing field, and swimming pool;
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(6) a public or private college or university that serves as an institution for education beyond the high school level;
(7) a licensed child-care facility or preschool, other than a small-family day care home or a large-family daycare home as defined in California Health & Safety Code § 1596.78.

4.98.110 - Requirement for a Permit.
(a) No Tobacco Retailer or other Person shall Sell or offer for Sale any Tobacco Product without a current and valid Tobacco Retailer Permit from San Mateo County for each location where such activities are conducted. (b) Permits are valid for one year and must be timely renewed annually by the Permit holder in order to continue to sell or offer for sale any Tobacco Product. A Retailer must o btain a separate Permit for each location at which any Tobacco Product will be sold, offered for sale or distributed. A Permit that is not renewed in a timely manner shall expire at the end of its term , and the Tobacco Retailer must obtain a new Permit prior to any further sale, offer for sale, or distribution of any Tobacco Product.
(c) No Tobacco Retailer shall violate, or cause or allow the Tobacco Retailer’s agents or employees to violate, any provision of this Chapter or any other local, state, or federal law applicable to Tobacco Products or Tobacco Retailing. (d) Tobacco Retailers are responsible for the actions of their employees and agents relating to the sale, offer to sell, an d furnishing of tobacco produ cts at the retail location. The sale of any tobacco product by an employee shall be considered an act of the tobacco retailer and the permit holder shall be responsible for any monetary penalties levied.
(e) Nothing in this Chapte r shall be construed to penal ize the purchase, use, or possession of a Tobacco Product by any Person not engaged in Tobacco Retailing.

4.98.120 - Permit is Nontransferable.
(a) Tobacco Retailer Permits are nontransferable as between Persons, locations, or otherwise. Any attempted transfer shall render the Permit null and void. (b) Notwithstanding any other provision of this Chapter, prior violations of this Chapter at a location shall continue to be counted against that location and Permit ineligibility and suspensio n periods shall continue to a pply to that location unless:
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(1) One hundred percent of the interest in the stock, assets, or income of the business, other than a security interest for the repayment of debt, has been transferred to the new owner(s); and
(2) The County is provided with clear and convincing evidence, including an affidavit, that the business has been acquired in an Arm's Length Transaction. An Arm ’s Length Transaction , for the purposes of this section, means a transaction in which two or more unre lated a nd unaffiliated partie s agree on the transfer in question; the parties act independently and in their own self-interest; and the parties have equal bargaining power and symmetric information, leading the parties to agree upon fair-market terms.

4.98.130 - Permit Conveys a Limited, Conditional Privilege.

Nothing in this Chapter shall be construed to grant any Person or entity obtaining and maintaining a Permit any status or right other than the limited, conditional privilege to Sell Tobacco Produ cts and act as a Tobacco Reta iler at the location in the County identified on the face of the Permit for the period of time shown on the Permit. All Permits are issued subject to the County’s right to amend this Chapter from time to time, and Retailers shall comply with all provisions of this Chapter, as amended.

4.98.140 - Application, Issuance and Renewal Procedure. (a) Application for a Tobacco Retailer's Permit or the renewal of a Tobacco Retailer Permit shall be submitted in the name of the Person proposing to conduct retail sales of Tobacco Products , referred to herein as the “Applicant,” and shall be signed by such Person or an authorized agent thereof. All applications shall be submitted to the Director on a form supplied by the Director and contain , at a minimum, the following information:
(1) The name, address, and telephone number of the Applicant; (2) The business name, address, and telephone number of the location where Tobacco Products are proposed to be sold, offered for sale or distributed by the Applicant; and
(3) Proof that the location for which a Tobacco Retailer’s Permit is sought has been issued a valid state license for the sale of Tobacco Products, if the Tobacco Retailer sells products that require such license; (4) A statement whether or not the Tob acco Retailer or any a gent of the Retailer has been found to have violated this Chapter or other applicable law governing Tobacco Products or Tobacco Retailing and, if so, the dates and locations of all such violations within the previous five years; and 45 of 82
(5) Such other information as the Director determines is necessary for implementation of this Chapter.
(6) An application for a new or renewal Permit will be denied if there are any outstanding fines or late fees issued by the Director, or during any period of suspension.
(7) It is the responsibility of each Permit holder to be informed regarding all laws applicable to Tobacco Retailing, including those laws affecting the issuance of a Tobacco Retailer Permit. No Permit holder may rely on the issuance of a Permit as a determination by San Mateo County that the Permit holder has complied with all laws applicable to Tobacco Retailing.

A Permit issued contrary to this Chapter or any other law, or on the basis of false or misleading information supplied by the Applicant, shall be revoked. Nothing in this Chapter shall be construed to vest in any person or entity obtaining or maintaining a Tobacco Retailer’s Permit any status or right to act as a Tobacco Retailer in contravention of any provision of law.

4.98.150 - Display of Permit.

Upon receipt of an application for a Tobacco Retailer Permit in compliance with the requirements of this Chapter , the Director or designee may issue a Permit which , if issued, must be prominently displayed in a publicly visible loca tion at the location where Tobacco Product Sales are conducted and permitted.

4.98.160 - Prohibitions Regarding Coupons, Discounts, Pharmacies, Flavored Tobacco, and Electronic Smoking Devices.
(a) No Tobacco Retailer shall do any of the following:
(1) Honor or redeem, or offer to honor or redeem, a Coupon to allow a Consumer to purchase a Tobacco Product for less than Full Retail Price; (2) Sell any Tobacco Product to a Consumer through a multiple package discount or otherwise provide any such product to a C onsumer for less than the Full Retail Price in consideration for the purchase of any Tobacco Product or any other item; or
(3) Provide any free or discounted item to a Consumer in consideration for the purchase of any Tobacco Product.
(b) No Person, Tobac co Retailer or other legal entity shall sell or distribute to a person any electronic smoking device that delivers natural or synthetic nicotine or any other substance(s) to the person inhaling from the device. This includes 46 of 82
any component, part, or accessory intended or reasonably expected to be used with the electronic device, whether or not sold separately. (c) No Person or Tobacco Retailer shall sell or offer to sell any Flavored Tobacco Product or Tobacco Product Flavor E nhancer. There shall be a rebuttable presumption that a Tobacco Prod uct is a Flavored Tobacco Product if a manufacturer or any of the manufacturer's agents or employees, in the course of their agency or employment, has made a statement or claim directed t o consumers or to the public that the Tobacco Product has or produces a Characterizing Flavor including, but not limited to, text, color, and/or images on the product's labeling or packaging that are used to explicitly or implicitly communicate that the Tobacco Product has a Characterizing Flavor. (d) No Pharmacy or Pharmacy employee or agent shall sell or offer to sell any Tobacco Product. The Director shall not issue any new, or renew any existing, Tobacco Retailer Permit for any Pharmacy.
(e) Subdivisions (b) and (c) of this Section shall not apply to the duty - free sto res located at the San Francisco International Airport.

4.98.170 - Packaging and Labeling.

No Tobacco Retailer or other Person shall Sell or offer for Sale any Tobacco Product to any Consumer unless the Tobacco Product (1) is Sold in the original manufacturer’s Packaging intended for Sale to Consumers; (2) conforms to all applicable federal Labeling requirements; and (3) conforms to all applicable child -resistant packaging requirements.

4.98.180 - Self-Service Displays Prohibited; On-Site, In-Person Sales Required. (a) Tobacco Retailing by means of a Self-Service Display is prohibited (b) All Sales of Tobacco Products and Tobacco Paraphernalia shall be conducted in- person, over the counter, in the permitted location.

4.98.190 - Notice of Minimum Age for Purchase of Tobacco Products.

Tobacco Retailers shall post conspicuously, at each point of purchase, a notice stating that Selling Tobacco Products to anyone under 21 years of age is illegal and subject to penalties. The form and content of such notic e shall be subject to the approval of the Director.

4.98.200 - Positive Identification Required.

No Tobacco Retailer or other Person shall Sell or offer to Sell a Tobacco Product to another Person without first verifying by means of government -issued ph otographic 47 of 82
identification that the recipient is at least the minimum legal sales age required under state law to purchase a Tobacco Product.

4.98.210 - Minimum Age for Individuals Selling Tobacco Products.

No Tobacco Retailer shall allow, at its Retail location, any individual who is younger than 21 years of age to Sell or offer to Sell Tobacco Products.

4.98.220 - Display or Offers to Sell Tobacco Products Without Tobacco Retailer Permit Prohibited.

A Tobacco Retailer without a current valid Permit:
(a) Shall keep all Tobacco Products out of public view. The public display of Tobacco Products in violation of this provision shall constitute Tobacco Retailing without a Permit.
(b) Shall not display any advertisement relating to Tobacco Products that of fers the Sale of such products from the Tobacco Retailer’s location.

4.98.230 - Limits on Eligibility for a Permit.
(a) No Tobacco Retailer’s Permit may be issued to authorize Tobacco Retailing at or from other than a fixed location. For example, Sales by Persons on foot or from vehicles or other forms of mobile vending are prohibited. (b) No Tobacco Retailer’s Permit may be issued to authorize Sales of Tobacco Products at a temporary event, such as flea markets and farmers’ markets. (c) No new Tobacco Retailer Permit may be issued to authorize Tobacco Product Sales at any location within 1,000 feet of a Youth -Populated Area, as measured by a straight line from the nearest point of the property line o f any parcel on which a Youth-Populated Area is located and an y point along the property line of the parcel on which the Permit applicant has or proposes to locate the business. (d) No new Tobacco Retailer’s Permit may be issued for a location which i s within 500 feet of a location already occupied by another Tobacco R etailer, as measured by a straight line from the nearest point of the property line of the parcel on which the applicant’s business is located to the nearest point of the property line of the parcel on which an existing Tobacco Retailer’s business is located.
(e) Tobacco Retailers with a current and valid Permit as of the date of adoption of this ordinance shall be exempt from subsections (c) and (d) of this Section unless the existing Tobacc o Retailer fails to timely renew the Permit prior to its annual expiration.
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(f) The Sale of Tobacco Products and accessories is prohibited in County owned structures and in any area of a structure leased by the County, wherever located.

4.98.240 - Fees for Permit.

Tobacco Retailer s shall pay all applicable fees at t he rates set forth in section

5.64.070 of this ordinance code. Fees shall be used by the Director to administer and enforce this Chapter.

4.98.250 - Enforcement.
(a) The Director or the Director’s designee shall enforce this Chapter consistent with the provisions herein.
(b) Violations of this Chapter may be criminally pr osecuted as infraction(s ) or misdemeanor(s) at the discretion of the prosecuting attorney as the interests of justice require.
(c) This Section shall not be interpreted to limit the applicable civil or administrative remedies available under law.

4.98.260 - Public Nuisance.

Any violation of this Chapter is hereby declared a public nuisance, subject to all applicable civil, administrative, and criminal remedies and penalties according to the provisions and procedures of contained in this Ordinance Code and state law, including but not limited to, an action for abatement or injunctive relief

4.98.270 - Compliance Monitoring.
(a) Compliance with this Chapter shall be monitored by the Director. In addition, any peace officer may enforce the provisions of this Chapter. The Director may designate additional persons to monitor an d facilitate compliance with this Chapter.
(b) Individuals designated to enforce the provisions of this Chapter shall inspect each Tobacco Retailer at least two times during each twelve-month period to determine if the Tobacco Retailer is complying with all applicable laws .

Compliance checks shall t ake place during normal business hours, with or without notice. If a violation has occurred, the Tobacco Retailer shall be inspected again within three months. All permitted premises must be open to inspection by designated persons during regular business hours. 49 of 82
(c) Nothing in th is section shall create a right of action in any Tobacc o Retailer or other person or entity against the County or its agents.

4.98.290 - Suspension or Revocation of Permit.
(a) Grounds for Suspension or Revocation.
(1) A Tobacco Retail er Permit may be suspe nded or revoked, as set forth below in subdivision (b), if any court of a competent jurisdiction determines, or the Director finds, based on a preponderance of the evidence after notice and opportunity for the Tobacco Retailer to be heard, that either of the following violations have occurred:
i. After the Permit was issued it is determined that the Application for the Permit is incomplete or inaccurate.
ii. The Tobacco Retailer or Tobacco Retailer’s agent has violated any of the requirem ents, conditions, or p rohibitions of this Chapter or any applicable local, state, or federal tobacco-related law. (2) Notwithstanding the foregoing, a Tobacco Retailer Permit shall be suspended or revoked, for the maximum time periods and as set forth in subdivision (b), if any court of competent jurisdiction determines, or the Direc tor finds, based o n a preponderance of evidence and after notice and opportunity for the Tobacco Retailer to be heard, that the Tobacco Retailer , or any agent or employee of the Tobacco Retailer, has Sold Tobacco Products to any Person(s) under the age of 21 years.
(b) Time Period of Suspension of Permit.
(1) Upon the first violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to 30 days. (2) Upon the second violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to 90 days. (3) Upon the third violation within any sixty (60) month period, the Permit to Sell Tobacco Products may be suspended for up to one year. (4) Upon the fourth violation within any sixty (60) month period, the Permit to Sell Tobacco Products shall be revoked. If a Permit is revoked, the Retailer shall not be eligible for a new Permit for a period of five (5) years after the effective date of revocation.
(c) Effective Date of Suspension or Revocation.
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Within te n (10) calendar days of the hearing, the Director shall issue written findings and an order regarding the suspension or revocation, which order will be effective ten (10) calendar days from the date such order was sent by certified mail to the Retailer, unless a timely appeal is filed in accordance with subsection (d).
(d) Appeal of Suspension or Revocation.

The decision of the Di rector is appealable to the San Mat eo County Licensing Board and the procedural rules of the San Mateo County Li censing Board shal l govern hearings on all appeals of suspensions and revocations. (1) An appeal must be in writing, be addressed to the Director and be hand- delivered to the offices of the Division of Environmental Health. (2) An appeal must be received by the Director before t he effective date of suspension or revocation provided by subsection (c) in order to be considered.
(3) The filing of a timely appeal will stay a suspension or revocation pending a decision on the appeal by the San Mateo County Licensing Board. (4) The decision of the San Mateo County Licensing Board shall be a final administrative order, with no further administrative right of appeal.

4.98.300 - Administrative Fine.
(a) Grounds for Fine. A fine shall be imposed on a Tobacco Retailer upon findings made by the Director, based on a preponderance of the evidence, that any Tobacco Retailer , or any agent or employee of the Tobacco Retailer, has violated any of the r equirements, conditions, or prohibitions of this Chapter. A fine shall be impose d in the maximum am ounts set forth in subsection (b) of this section upon findings made by the Director that the Tobacco Re tailer, or any agent or employee of the Tobacco R etailer, has Sold any Tobacco Product to any Person(s) under the age of 21 years . Any administrative fin e shall be imposed solely against the Tobacco Retailer, not the Tobacco Retailer’s employees or agents.
(b) Amount of Fine. Upon written findings made by the Director under subsection (a), the person or entity holding the Tobacco Ret ailer Permit shall be subject to an administrative fine for each such violation as follows:
(1) A fine not exceeding five hundred dollars ($ 500) for a first violation within a sixty (60) month period; and
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(2) A fine not exceeding one thousand dollars ( $1,000) for each subsequent violation within a sixty (60) month period.
(c) Each day that Tobacco Products are Sold or offered for Sale without a Permit or otherwise in viol ation of this Chapter shall constitute a separate violation. A finding of "offer ed for Sale" in viola tion of t his Chapter will be made if Tobacco Products are either actually Sold and/or displayed in the retail establishment, or if advertisements offering to Sell Tobacco Products are visible to customers. (d) Fine Procedures. Notice o f the fine shall be served on the Tobacco Retailer by certified mail. The notice shall contain a description of the facts upon which the asserted violation is based and an advisement of the right to request a hearing before the Director contesting the impo sition of the fine. Said hea ring mu st be requested within ten calendar days of the date appearing on the notice of the fine.

The decision of the Director shall be a final adm inistrative order, with no administrative right of appeal.
(a) Failure to Pay Fine. If a fine imposed p ursuant to this Chapter is not paid within 30 calendar days from the date appearing on the notice of the fine or of the notice of determination of the Dire ctor after the review provided for under subdivision (c) of this Section , the fine may be referred to a collec tion ag ency within or external to the County. In addition, any outstanding fines must be paid prior to the issuance of any new Permit or renewal of a Permit.

4.98.310 - Enforcement of this Chapter in Cities.

The Director may administer and e nforce the provisions of this Chapter on behalf of any city located within San Mateo County, within the jurisdictional boundaries of that city, if the city council of that city does each of the following:
(a) Adopts, and makes part of its municipal code:
(1) This Chapter 4.98 in its entirety by reference; or
(2) An ordinance that contains each of the provisions of this Chapter 4.98 verbatim with no additional provisions not included in this Chapter 4.98; and
(b) Authorizes, by ordinance or resolution, the Director to administer and enforce, on behalf of that city, the provisions of this Chapter as adopted pursuant to subsection (a) of this section.
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SECTION 3. It is the intent of the Board of Supervisors of the County of San Mateo to supplement applicable state and federal law and not to duplicate or contradict such law and this ordinance shall be construed consistently with that intention. If any provision of this Chapter or the application of such provision to any person or in any circumst ances shall be held invalid, the remainder of this Chapter, or the application of such provision to person or in circumstances other than those as to which it is held invalid , shall not be affected thereby.

SECTION 4 . Except as otherwise provided, this ordinance shall app ly only t o the unincorporated area of San Mateo County.

SECTION 5. This ordinance shall be effective thirty days after adoption.

SOURCES

1. California Department of Public Health California Tobacco Control Program.

California Tobacco Facts and Figures 2016. Sacramento, CA: California Department of Public Health. 2016. Available at:
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Documen t%20Library/ResearchandEvaluation/FactsandFigures/2016FactsFiguresWeb.pdf

2. Zhu S-H, Braden K, Zhuang Y-L, Gamst A, Cole AG, Wolfson T, Li S. (2021).

Results of the Statewide 2019-20 California Student Tobacco Survey. San Diego, California: Center for Research and Intervention in Tobacco Control (CRITC), University of California San Diego.
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Documen t%20Library/ResearchandEvaluation/FactsandFigures/CSTS2019- 20BiennialReport_ADA.pdf
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3. Zhu S-H, Braden K, Zhuang Y-L, Gamst A, Cole AG, Wolfson T, Li S. (2021).

Results of the Statewide 2019-20 California Student Tobacco Survey. San Diego, California: Center for Research and Intervention in Tobacco Control (CRITC), University of California San Diego.
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Documen t%20Library/ResearchandEvaluation/FactsandFigures/CSTS2019- 20BiennialReport_ADA.pdf

4. Zhu S-H, Braden K, Zhuang Y-L, Gamst A, Cole AG, Wolfson T, Li S. (2021).

Results of the Statewide 2019-20 California Student Tobacco Survey. San Diego, California: Center for Research and Intervention in Tobacco Control (CRITC), University of California San Diego.
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Documen t%20Library/ResearchandEvaluation/FactsandFigures/CSTS2019- 20BiennialReport_ADA.pdf

5. California Department of Public Health, California Tobacco Control Program.

California Tobacco Facts and Figures 2021. Sacramento, CA: California Department of Public Health; November 2021.
https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/CDPH%20Document %20Library/ResearchandEvaluation/FactsandFigures/CaliforniaTobaccoFactsAnd Figures2021-V3A.pdf

6. Xu X, Pesko MF, Tynan MA, Gerzoff RB, Malarcher AM, Pechacek TF. Cigarette price-minimization strategies by U.S. smokers. Am J Prev Med. 2013;44(5):472- 476. doi: 10.1016/j.amepre.2013.01.019.

7. Chuang YC, Cubbin C, Ahn D, Winkleby MA. Effects of neighborhood socioeconomic status and convenience store concentration on individual level smoking. J Epidemiol Community Health. 2005;59(7):568-573. doi:

10.1136/jech.2004.029041.

8. Reitzel LR, Cromley EK, Li Y, et al. The effect of tobacco outlet density and proximity on smoking cessation. Am J Public Health. 2011;101(2):315-320. doi:

10.2105/AJPH.2010.191676.

9. Cantrell J, Anesetti-Rothermel A, Pearson JL, Xiao H, Vallone D, Kirchner TR.

The impact of the tobacco retail outlet environment on adult cessation and differences by neighborhood poverty. Addiction. 2015;110(1):152-161. doi:

10.1111/add.12718.
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10. Ribisl KM, Luke DA, Bohannon DL, Sorg AA, Moreland-Russell S. Reducing Disparities in Tobacco Retailer Density by Banning Tobacco Product Sales Near Schools. Nicotine Tob Res. 2017;19(2):239-244. doi: 10.1093/ntr/ntw185.

Myers AE, Hall MG, Isgett LF, Ribisl KM. A comparison of three policy approaches for tobacco retailer reduction. Prev Med. 2015; 74:67-73. doi:

10.1016/j.ypmed.2015.01.025.

Luke DA, Hammond RA, Combs T, et al. Tobacco Town: Computational Modeling of Policy Options to Reduce Tobacco Retailer Density. Am J Public Health. 2017;107(5):740-746. doi: 10.2105/AJPH.2017.303685.

11. U.S. Department of Health and Human Services. Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General. Atlanta, GA:

U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health. 2012. Available at:
https://www.surgeongeneral.gov/library/reports/preventing-youth-tobacco-use/.

DiFranza JR. Which interventions against the sale of tobacco to minors can be expected to reduce smoking? Tob Control. 2012;21(4):436-442. doi:

10.1136/tobacco control - 2011-050145.

12. Macinko J, Silver D. Impact of New York City's 2014 Increased Minimum Legal Purchase Age on Youth Tobacco Use. Am J Public Health. 2018;108(5):669-675. doi: 10.2105/AJPH.2018.304340.
* * * * *
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3 4
5 7
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13 14
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19 20
21 2224
23 25
26 27 28
29 30
31 34
32 33
6 380
280
35 35
El Camino RealSan Bruno Ave W
San Bruno Ave E
San Mateo Ave
Sneath Ln
Jenevein Avenue
State Route 35
Interstate 280
Int
erstate 280
State Route 35
Tobacco Retailers with County Permits as of 2022
/gid00017 /gid00022/gid00017/gid00017 /gid00018/gid00017/gid00017/gid00017/gid00019/gid00017/gid00017/gid00017 /gid00039/gid00038/gid00038/gid00053
/gid00047
Double AA El Camino
800 El Camino Real
Crestmoor Gas & Food Inc
2901 San Bruno Ave W
*currently Econo Gas
Walgreens Company
333 El Camino Real
Cigarettes Cheaper
292 El Camino Real
Liquor Locker
185 El Camino Real
San Bruno Arco
1799 El Camino Real
Mid East Market
1776 El Camino Real
The Twilight Zone
1630 El Camino Real
7 Eleven
2020 Rollingwood Drive
7 Eleven
2100 Crestmoor Drive
San Bruno Kwik Serve
2101 San Bruno Ave W
*currently Grand Gasoline
Lucky’s
1322 El Camino Real
Specialty Tobacco Outlet
1230 El Camino Real #L
Beverages & More Inc
1262 El Camino Real
Tanforan Shell
1199 El Camino Real
*currently Hangry Planet
Sam’s Food Market
899 San Mateo Ave
Saye Cayetano Mini Market
875 Huntington Ave
La Dora Liquors & Deli
604 San Bruno Ave
San Bruno Shell
798 El Camino Real
Mini Mart
297 San Bruno Ave E
1,000 ft Buffer as required by County Ordinance Chapter 4.98.100 Youth-Populated Area
As defined by San Mateo County Ordinance Chapter 4.98.100 Exotic Vapes & CBD
711 Kains Ave
San Bruno Valero
310 San Bruno Ave E
76 Mart
717 San Bruno Ave E
Artichoke Joe’s Casino
659 Huntington Ave
Grand Leader Market
600 San Mateo Ave
7 Eleven
105 Angus Ave W
Los Primos Produce and Market
599 San Mateo Ave
Paradise Hookah Lounge
591 San Mateo Ave
San Bruno Liquors
542 San Mateo Ave
Exotic Puff N Stuff
484 San Mateo Ave
Speedy Spot
701 Jenevein Ave
San Bruno Gas
401 San Mateo Ave
Chevron
2001 Rollingwood Drive
76 2000 Rollingwood Drive
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ATTACHMENT 3
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 27, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
SUBJECT: Receive Report on the City's Long-Range Forecast for Fiscal Years 2024- 25 through Fiscal Year 2033-34
BACKGROUND:

In the context of the City’s ongoing fiscal year 2024-25 (FY25) budget development process, this report provides a comprehensive long-term forecast of the General Fund for the next 5 and 10 years. The forecast is instrumental in evaluating available resources against projected costs for maintaining current service levels, addressing unfunded capital infrastructure needs, and implementing the City Council's Priority Initiatives. City staff provided a preliminary overview of this forecast model at the City Council’s Annual Strategic Initiatives & Prioritization Retreat on February 2, 2024 and has made substantive improvements in the forecast model since that time. The model will continue evolving as new data that impact assumptions are available.

DISCUSSION:

First and foremost, the City’s forecast model provides a single data point that can change monthly as new information arises, from which City Council may weigh policy considerations.

Before delving into details of the General Fund's long-term forecast, it is imperative to understand the foundational elements shaping the financial landscape in which the City is positioned. The assumptions below guided the development of the forecast and may be adjusted. However, it is important to note that any adjustments to the financial forecast must be quantifiable in terms of timing and magnitude of assumption or fiscal impact. • Assumption of Maintaining Current Services: The forecast is based on the continuation of services as approved in the FY24 adopted budget, with no significant changes to service offerings, assuming operations continue under current conditions, except for planned changes like the RAC opening. The forecast focuses solely on the General Fund and does not provide insight into the City’s multiple Special Revenue, Capital, and Enterprise Funds.
• Staffing Challenges Impacting Service Delivery: A critical aspect affecting the ability to deliver budgeted services is the current staffing vacancies, with over 30 positions unfilled. This hinders the staff’s capacity to meet all service-level commitments, highlighting the need for effective staffing strategies to maintain or improve service levels.
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Item 7b.

Honorable Mayor and Members of the City Council
February 27, 2024

•Forecasting and Budgeting Estimates and Accounting Differences: Because they include years of compounded changes, forecasts are highly sensitive to inputs such as long-term inflation (indicative of future costs). While the budget process will follow the City Council’s adopted budget principles for assumptions and conservativeness in estimates for FY25, forecasted years may diverge due to differences in near- and long- term assumptions, particularly regarding growth rates. Additionally, the forecast shown removes some accounting activities for projections (most notably, the fair market value adjustment for unrealized gains/(losses) at the end of each fiscal year, which has no material impact on current year revenues and expenditures), so historical totals will not exactly match previously published financial statements. It is also important to note that forecast categories have not been fully evaluated for correlation; while statistical methods are used to develop some forecast categories1, the upper and lower bounds represent extreme outcomes rather than an exact likelihood of occurrence. •Known or Anticipated Events: The forecast assumes that long-term trends will generally continue, except where a known change is planned. An example would be secured property tax, which sees measurable effects the first year a major development is complete and the value assessed, but whose future increases more closely follow the maximum increase under Proposition 13. The forecast incorporates estimates of future events to the extent that they are known from a timing and magnitude perspective, including these discrete examples:
oResidential development projects: These include those at 732-740 El Camino Real, 840 San Bruno Avenue West, 300 Piedmont Avenue (Former Crestmoor High School site), and 2101 Sneath Lane (former Engvall School site). oCommercial development projects: These include the YouTube office campus expansion and the Tanforan redevelopment projects with incremental gains in the forecast period; however, most activities occurred outside the forecast timeframe.
oOther commercial elements: Forecasted events include the Hyundai/Genesis dealership relocating from the former Sears department store at The Shops at Tanforan to a purpose-built facility and a new cannabis retailer, materially affecting sales and business license taxes, respectively. oPersonnel expenditure increases: Negotiated agreements with the City’s bargaining units, CalPERS pension costs, and other fringe benefits are incorporated.
•Other General Funds: The preliminary forecast discussed at the City Council Retreat included only Fund 001, the only General Fund that provides services to the community.

The other General Funds are restricted by City Council policy or practice and do not 1 Several stable categories use a deterministic static method, while volatile or unknown categories use an exponential smoothing time series method, selecting best fit from nine model variants which range in treatment of trend, seasonality, damping, additive, and multiplicative recursive changes. Some professional judgement also applied (typically <1% of total resources or requirements).

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Honorable Mayor and Members of the City Council
February 27, 2024

support ongoing services except for ARPA. Notable and material differences between Fund 001 and the General Funds presented in some other contexts include:
oMeasure G District Sales Tax (Measure G, Fund 005): Measure G is a general purpose tax and is accounted for separately from the other sales taxes in Fund 001. The forecast assumes that the City Council will continue dedicating Measure G Funds primarily to capital programs. However, since Measure G is a general tax and may be used for any governmental purpose, the revenue may be used to balance future year operating deficits.
oAmerican Rescue Plan Act (ARPA, Fund 006): ARPA funding must be fully expended by December 31, 2025, or returned to the Federal government. The City remains on track to accomplish expending the full award, though some remains currently unspent. While the City continues to expend the remainder of these funds, they are not available as structural resources, nor are they material to the overall forecast deficit, and as such, are not included in the forecast.

Long-term Forecast
Forecasting primarily aims to prepare for future events, positive or adverse, with as much warning as possible. Using historical data to separate trends and seasonality from statistical “noise,” forecasts can help make proactive decisions about where to deploy or reserve capital and effort. Additionally, forecasting allows scenario modeling to help identify when and where to utilize various levers of available control to achieve City Council budget principles and priorities.

An important feature of forecasting is that it is inherently wrong – forecasters acknowledge that actual results will differ from the predictions, but the direction, degree, and consistency are all important. In practice, this manifests primarily in the context of budgeting and risk tolerance. The City’s one-year budget forecast incorporates the direction that the City Council provides in terms of preferred categories of error (i.e., should actuals differ from the budget consistently in one direction) and allowable uncertainty. In technical terms, forecast displays vary depending on the degree to which reality is likely to fall within a range of outcomes; in practical terms, more certainty typically results in unused (which is not to say useless) planning. The forecast uses a statistically unimportant range that nevertheless displays where most outcomes are expected to lie.

The long-range forecast covers FY25-FY34, Table 1, and shows expected General Fund resources increasing from $66.1 million to $83.8 million with a corresponding requirement increase from $70.9 million to $101.9 million. The result is a mid-point projection of a structural operating deficit. The projected $4.85 million deficit in FY25 increases throughout the forecast, with the most rapid growth coming in FY29 and FY30. The deficit is projected to grow less rapidly but persist during the latter half of the forecast period due to the land development timelines, which increase revenue faster than earlier in the forecast period.

The ongoing expectation of requirements in excess of resources indicates the necessity for strategic fiscal interventions. Displayed below, the mid-point estimated structural deficit is the column graphs (blue) extending below the graph’s horizontal axis, while the green shaded section is the upper estimate of expected outcomes, and the orange shading indicates the lower estimate of expected outcomes. An important takeaway of the forecast model is that City staff is confident that actual surplus or deficits will be between the top of the green-shaded area and

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Honorable Mayor and Members of the City Council
February 27, 2024

the bottom of the orange-shaded area. The blue mid-point bars reflect our best guesstimate of where the General Fund will be based on assumptions used in this report’s preparation.

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Honorable Mayor and Members of the City Council
February 27, 2024

Table 1: Historical and forecast General Fund surplus/ (deficit) The above forecast is a composite of a number of elements, shown at an annual level. On a more granular level and to facilitate both forecasting and planning, elements are also predicted individually, such as the hotel taxes forecast below. As individual elements of the forecast, each revenue source is plotted every quarter to allow for quarterly vs. annual analysis. The analysis is intended to spotlight when actual activity diverges from the mid-point and to confirm whether the divergence is sufficiently material to warrant policy level discussions of the City’s financial stability above and beyond the annual budgeting process and review. -80
-60
-40
-20
0 20
40 60
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Lower estimate
Upper estimate
Mid-point estimate
$ millions
Fiscal year

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Honorable Mayor and Members of the City Council
February 27, 2024

Table 1: Historical and forecast General Fund surplus/ (deficit) When investigating the drivers of the projected deficit, several factors stand out. These factors are described in greater detail below:
•Service Levels: The forecast assumes the continuation of current service levels, with staffing levels and associated revenues and expenditures expected to operate under current conditions, highlighting the gap between budgeted services and the actual delivery due to staffing vacancies.
•One-time Revenues: No substantial one-time revenues are on the horizon, emphasizing the need for a sustainable revenue generation and fiscal management approach.
•Deferred Maintenance: A significant challenge is the need to address deferred maintenance for city infrastructure and facilities, totaling $1.1 billion over the next ten years, pointing to a critical need for prioritizing capital investments and exploring funding options. An important policy consideration is that deferred maintenance costs escalate annually with inflation. A $1.1 billion unfunded infrastructure need grows by $33 million each year, using a 3% construction cost inflation estimate.

The operating deficit is projected to grow over the forecast period, underscoring the urgency for comprehensive financial planning and the development of mitigation strategies. To address the operating deficit, City Council has several levers available to intervene. Some of these are discussed below:
$.0
$.5
$1.0
$1.5
$2.0
$2.5
Q1-2018Q3-2018Q1-2019Q3-2019Q1-2020Q3-2020Q1-2021Q3-2021Q1-2022Q3-2022Q1-2023Q3-2023Q1-2024Q3-2024Q1-2025Q3-2025Q1-2026Q3-2026Q1-2027Q3-2027Q1-2028Q3-2028 Actual Mid-point Upper Lower
Hotel tax historical and forecast
80th percentile confidence interval
$ millions
Fiscal Year

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Honorable Mayor and Members of the City Council
February 27, 2024

•Revenue Measures: City Council can consider raising additional revenues through various means. General or special taxes require a majority and supermajority vote of the residents, respectively, while fees and charges for services must be tied to their service. •Service Level Changes: The modification of current service levels to provide fewer services or attempt to recover a higher percentage of costs, each materially affecting the net revenue for programs, with ranges depending on the nature of the service considered.

Significant Revenue Risks
The revenues discussed below are at risk, and their reduction or loss directly impacts the City’s finances. When viewing the forecast, if one or more of the following events materialize, the mid- point forecast line will move closer to the lower estimate. •Property tax in-lieu of Vehicle License Fees (In-lieu VLF) and Educational Revenue Augmentation Fund (ERAF): In-lieu VLF is a decades-old State action that reduced local agency VLF revenue and backfilled the lost revenue using property taxes, In-Lieu VLF. The complicated formula instituted by the State adversely impacts several counties in California, including San Mateo County, by failing to meet the backfill needs. Further, the backfill gap is not fully funded in the proposed State budget released in January 2024. The County projects that the City will lose $3 million in structural revenue if the backfill formula remains as-is and the State does not close the gap resulting from their action that effectively shifted local tax dollars to Sacramento. In addition to the In-Lieu VLF, this category includes the net effect of the Educational Revenue Augmentation Fund (ERAF) shift, as estimated by the City’s property tax consultants. The forecast assumes the tax consultant’s estimate as the base or mid-point, while the pessimistic estimate includes a steady loss of this entire category over eight years. The optimistic estimate includes a +1% growth over the base.
•California Business Roundtable (CBRT) November 2024 Ballot Initiative: The “Taxpayer Protection and Government Accountability Act” will ask voters whether cities must receive a supermajority approval to increase, modify, or add charges for services, including everything from library fines to water rates. A group of the state’s wealthiest corporations, the California Business Roundtable, developed and is supporting the measure.

Currently, voter-approved propositions (13, 218, 26, and 62 and their corresponding case law) establish tax and fee protections to ensure accountability for establishing charges for services. Further, if the CBRT initiative is approved, new or increased charges for services or fees approved after December 31, 2021, may be null, requiring the City to refund revenue collections resulting from the new or increased charges. The impacts of the CBRT initiative threaten to reverse the City’s progress toward funding safe and reliable water and wastewater and buttressing CityNet’s finances. Voter approval of the CBRT initiative may also devastate the City’s ability to achieve cost-recovery goals through user fees. The forecast does not incorporate a contingency for recent fee and charge increase claw backs or future growth if the CBRT initiative succeeds in November’s election.
•Walmart.com tax sharing agreement: On April 17, 2023, the California Department of Tax & Fee Administration notified the City and Walmart.com about a $27.5 million sales tax reallocation to other areas. In response, the City and Walmart contested this decision

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Honorable Mayor and Members of the City Council
February 27, 2024

on October 26, 2023, risking a potential $15.3 million repayment if unsuccessful. The City has held a portion of recent sales taxes in reserve while the case is resolved, and the revenues presented in the forecast have already incorporated the forward guidance.

Future Forecast Improvements
Looking to the future, the potential for refining the forecast is vast, but time and resources are limited. Plans include exploring more sophisticated methods such as machine learning and neural network models. More foundational is incorporating the known or expected events and creating contingency plans for potential outcomes. Identifying known or anticipated events that may materially affect the forecast and the potential levers available to the City Council for consideration will improve the forecast and continue through budget development.

FISCAL IMPACT:

There is no fiscal impact from this item.

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. a Mitigation Monitoring and Reporting.

RECOMMENDATION:

Receive Report on the City's Long-Range Forecast for Fiscal Years 2024-25 through Fiscal Year 2032-33.

ALTERNATIVES:

None
ATTACHMENTS:

None

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DAT
E: February 27, 2024
TO
: Honorable Mayor and Members of the City Council
F
ROM: Vice Mayor Salazar
Councilmember Hamilton
PR
EPARED BY: Nick Pegueros, Chief Financial Officer
S
UBJECT: Receive Recommendation from the Ballot Measure Ad Hoc Committee and Provide Direction to City Staff
BA
CKGROUND:

The C
ity Council’s Fiscal Year 2024-25 Strategic Initiatives identified exploration of a revenue measure on the ballot in the upcoming general election to strengthen the City’s fiscal sustainability. Mayor Medina appointed Vice Mayor Salazar and Councilmember Hamilton to serve on a Ballot Measure Ad Hoc Committee (Committee) to review various revenue measures and report back with their findings. The Committee has met five times this year with support from the City Manager’s Office, City Attorney’s Office, Finance, and several consultants to explore various options. This report transmits the Committee’s work and recommendation for City Council consideration.

DI
SCUSSION:

W
hen the Committee evaluated various revenue measure options, it considered several factors, including types of revenue measures and results from the 2022 and 2023 Community Perceptions Survey, which identified community priorities and general support for a revenue measure. The November 2024 ballot, however, is more complicated than past years due to a web of potential statewide ballot measures discussed below that can substantively improve or impair the City’s success in a ballot measure.

Types of Local Revenue Measures
Cities may impose general or special taxes to support operations and infrastructure. A general tax is levied to fund a wide range of city services without a designated purpose, requiring a majority vote for its imposition, increase, or extension. General taxes are typically placed on the ballot during a general election, though they can be presented at other times if the City Council unanimously declares an emergency. Measure G is a general tax whose funds can be used for any purpose designated by the City Council. A special tax, in contrast, is earmarked for specific projects or services, such as enhancing public safety services or financing infrastructure improvements. Special taxes must be directly related to the purpose specified in the ballot measure and cannot be diverted for other uses. Special taxes require a supermajority approval from voters. Additional information about various revenue measures is available in 65 of 82
Item 7c.

Honorable Mayor and Members of the City Council
February 27, 2024

Understanding the Basics of Municipal Revenues in California: Cities, Counties and Special Districts1 and Propositions 26 and 218 Implementation Guide2.

November 5, 2024 Statewide Ballot Measures
California Voters may have the opportunity to vote on three initiatives that have the potential to impact cities’ ability to manage their finances structurally. Two, ACA-1 and ACA-13, are supported by the League of California Cities (CalCities) and are currently pending final approval by the legislature for the November ballot. CalCities firmly opposes the third initiative sponsored by the California Business Roundtable (CBRT), which has already qualified to be on the ballot and is currently subject to challenge in the California Supreme Court. The optimal outcome in November for local government finances is that ACA-1 and ACA-13 pass with simple majorities, and the CBRT fails to achieve the supermajority vote required by ACA-13 . • A
CA-1: Local government financing: affordable housing and public infrastructure3 A
ssembly Constitutional Amendment 1 (ACA-1) would lower the voter approval threshold from 66.67% to 55% for bonds or special taxes dedicated to affordable hous
ing and public infrastructure projects. The amendment states that if approved, it would apply to any relevant local measures also on the ballot on November 5, 2024. The amendment currently defines public infrastructure projects as water quality, sanitation, wastewater treatment, property protection from sea level rise, parks and recreati on
f
acilities, open space, flood control, streets, highways, broadband internet access, local hospital construction, public safety buildings or facilities, equipment related to fire suppression, emergency response equipment, or interoperable communications equipment for direct and exclusive use by fire, emergency response, police, or sheriff personnel, and public libraries.
• ACA-13: Vote Requirements for Initiatives Requiring Supermajority Vot es
A
mendment
Assembly Constitutional Amendment 13 (ACA-13) would require future ballot measures that increase voter approval requirements to also pass by the same threshold. It would al
so preserve the right of local governments to place advisory questions on the ballot asking voters their opinions on issues. ACA-13 would significantly impact another measure on the November 2024 ballot put forward by the California Business Roundtable (CBRT). If voters approve ACA-13, the CBRT measure must be approved by a two-thirds majority vote.
• California Business Roundtable (CBRT): Taxpayer Protection and Government Accountability Act
The CBRT’s Taxpayer Protection and Government Accountability Act aims to amend California's constitution by requiring supermajority voter approval of certain ballot measures that currently have a simple majority voter approval requirement. Additionally, the initiative establishes strict standards for fees and charges, with the potential for City fees and charges to be reclassified as taxes and requiring 66.67% voter approval to take ef
fect, including charges for services in city departments and utilities. The initiative will l
ikely lead to interpretive legal challenges and affect cities’ financial autonomy and planning capabilities if approved. CalCities firmly opposes the CBRT ballot initiative and 1 Institute for Local Government: Understanding the Basics of Municipal Revenues 2 CalCities Propositions 26 and 218 Implementation Guide 3 Legislative Information: ACA-1 Local government financing: affordable housing and public infrastructure 66 of 82
Honorable Mayor and Members of the City Council
February 27, 2024

joined an amicus brief4 seeking the removal of the ballot initiative from the November 5, 2024, ballot.

Potential November 2024 Ballot Measures
The Committee explored multiple tax measures, as summarized in Table 1, and ultimately chose to recommend City Council consideration of a General Obligation Bond (GO Bond) Measure in November. A GO Bond provides the highest annual revenue of the available options, with a $30 per $100,000 of assessed value generating $3.1 million annually, and a 30- year bonding capacity of approximately $100 million to fund significant infrastructure improvements, including fire stations, parks, and roadway improvements. Key drivers of bonding capacity include assumptions for municipal bond interest rates and growth in assessed values.

T
able 1 – Ballot Measure Exploration Summary
Potential ballot
measure
Estimated
Annual
Revenue
Voter Approval
Threshold5 Notes
GO Bond
($30 per $100,000 of
assessed value)
$3.1
million

66.67% or 55% if
ACA-1 passes
Committee recommendation. GO Bond
proceeds can only be used for
infrastructure.

Utility Users’ Tax

3.0%
$2.9
million,
estimated
General tax =
50% +1
Special tax = 66.67%
New general tax and can be used for
operations or capital, similar to Measure
G. A
3% UUT would increase a $500
mont
hly utility bill by $15 per month, $180
per
year; and is based on utility
consumption. The estimated revenue
requires additional analysis.

Parcel Tax
$100 flat, per parcel
$1.25
million 66.67%
Based on 12,500 taxable parcels; either a
flat, per-parcel rate or a rate that varies
based on other factors, such as parcel
size, use, or other physical attributes.

Transient Occupancy
Tax

1.0%
$0.25
million
General tax =
50% +1
Special tax = 66.67%
Measure increases existing TOT of 14%
to 15%.

Business tax Unknown
General tax =
50% +1
Special tax = 66.67%
Multiple options making estimates difficult.

For order of magnitude, existing business
taxes generate approximately $2.2 million
per year.

Benefit Assessment
Districts n/a
Assessment ballots in
favor must exceed
ballots opposed;
weighted according to
financial obligation.

Multiple options; unlikely an effective city-
wide tax measure. May be feasible for
highly local interests such as street light
replacements and landscape
improvements.

Sales tax add-on

0.50%
(Special transaction and
use tax)
$3.5
million
General tax =
50% +1
Special tax = 66.67%
Measure increases existing sales tax from

9.875% to 10.375%. The City is at the sales
tax cap and special legislation to exceed the
cap is not possible for the November 2024
election based on the legislative calendar.
4 Local Agencies Amicus Brief re: Taxpayer Protection and Government Accountability Act 5 If the CBRT initiative passes by a simple majority and ACA-13 fails in November, the voter approval threshold for all measures increases to 66.67%, regardless of the measure being a general or special tax. 67 of 82
Honorable Mayor and Members of the City Council
February 27, 2024

General Obligation Bonds6
General obligation bonds (GO bonds) issued by cities are payable from ad valorem taxes on real property (property tax based on assessed value, also referred to as the “GO bond levy”) within the public agency's jurisdiction, secured by liens on the taxed properties. Tax rates are collected with general property taxes and are established annually at levels necessary to generate amounts sufficient to pay debt service. As assessed values increase from new construction, improvements, property transfers, and reassessments, the GO bond levy decreases for those who have held their properties without changes. The GO bond levy applies to all real property including residential, commercial, and industrial uses. GO bonds are considered low-risk obligations and a source of low-cost, long-term, fixed-rate financing. The principal challenge with GO bonds is obtaining supermajority voter approval.

G
O bonds can only finance the acquisition or improvement of real property, generally including rehabilitation, acquisition, installation of fixtures, and financing and other soft costs directly connected to real property acquisition and improvement, excluding routine maintenance and equipment acquisition. GO bonds are commonly used to finance buildings for general governmental use or to acquire property for open space or future public use.

The 2023 C
ommunity Perceptions Survey7 asked a statistically significant sample size of likely voters whether they would support a GO Bond. The survey results do not suggest sufficient support to achieve the 66.67% voter threshold requirements to approve a GO Bond in November. If, however, ACA-1 is on the Statewide ballot and successfully reduces the voter approval threshold for infrastructure bond measures to 55%, the survey results suggest that a GO Bond may also pass in San Bruno. More specifically, the 2022 and 2023 Community Perceptions Surveys asked whether respondents would support 3 cents per $100 of assessed value GO Bond, generating $124 million in bonding capacity. In 2022, the average of the 2nd and 3rd tests in the 2022 survey was 55.5% “Yes.” And, in the 2023 survey, 53.2% responded “Yes.” Statistically, there is no difference between the two results, but the heightened concern about inflation during 2023 could explain the minor difference.

Ut
ility Users’ Tax8
An additional consideration may be to pursue a Utility Users’ Tax (UUT), which can be either a general purpose or special tax with a simple majority or supermajority voter approval threshold, respectively. The benefit of a general purpose UUT is that it may be used for operations similar to Measure G.

A
voter-approved Utility User Tax (UUT) can be imposed on the consumption of various utilities, including traditional and digital communication services. The tax is collected directly from consumers by the utility providers and then passed on to the respective taxing agency. Twelve cities in San Mateo and Santa Clara counties currently have a UUT, with Pacifica and Daly City being the nearest agencies, charging 6.5% and 5.0%, respectively. The use of UUT revenues is dependent on whether the tax is approved as either a general purpose or special revenue tax. A general purpose tax has a 50% + 1 voter approval threshold. A dedicated special tax, however, requires approval by 66.67% of ballots cast.
6 Source: CDIAC - California Debt Financing Guide
7 City of San Bruno’s 2023 Community Perceptions Survey 8 Utility Users’ Tax Facts
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Honorable Mayor and Members of the City Council
February 27, 2024

Potential GO Bond Funded Projects
The City’s unfunded infrastructure needs an estimated $1.1 billion and grows $33 million annually, assuming a 3% annual inflation factor. While the need is great, the revenue- generating options are limited, thereby requiring a narrowing of possible projects that a GO Bond can reasonably support. In addition to the City Council’s Strategic Initiative to identify funding for stormwater, fire stations, and wildfire mitigation, the Committee identified additional projects that may be of value to the community in line with the Community Perceptions Survey results. If City Council pursues a general purpose UUT, the annual revenue may also provide debt service capacity approximately similar to a GO Bond measure for infrastructure financing.

T
able 2: Unfunded Capital Needs Responsive to Community Perceptions Survey Project Name FY24 Estimate9
*Stormwater Infrastructure $350,000,000
*Fire Station No. 51 Reconstruction 48,000,000
*Fire Station No. 52 Reconstruction 68,000,000
*Crestmoor Canyon Fire Safety Improvements and Trails 2,000,000 Crestmoor Playfield Construction & Other Pocket Parks
Enhancements 18,000,000
Accelerated Pavement Management Program 60,000,000
Senior Center Renovation 28,000,000
RO System Street Light Replacement 7,000,000
Grand Total $581,000,000
*City Council FY24 Strategic Initiative
Next Steps
The deadline for City Council action to place a measure on the ballot is the last meeting in July.

With Council's direction to move forward, City staff will take the steps necessary to return with the information needed to decide whether to place the matter on the November ballot including in-depth financial analysis, additional community surveys, and a communication plan. In order to deliver the analysis, City staff will procure financial analysis, polling, and communications professional services. The City Attorney’s Office will provide legal support, and city staff will support the project as necessary.

Tentative Calendar
• February - Internal decision making re Bond, proposed rate, etc, develop potential ballot question
• March/April - stakeholder/community outreach and assessment; drafting of poll • May - Polling of residents by Godbe research
• June - Public communications (mail/digital)
• July 23rd - Placement of measure on ballot by Council 9 FY2024 Estimate is intended to provide a rough approximation of the costs. Final project costs depend on project specific circumstances, design, siting, and construction costs. Note that construction cost increases have reached double digits in the recent years. On $581,000,000, a 3% inflation factor results in costs increases of $17.4 million. 69 of 82
Honorable Mayor and Members of the City Council
February 27, 2024

FISCAL IMPACT:

C
ity staff estimates that professional services (financial analysis, polling, communications, legal) will result in a cost of approximately $135,000 to support this effort. Except for the City Attorney’s Office, City staff time is not included in that estimated cost.

E
NVIRONMENTAL 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.

RE
COMMENDATION:

R
eceive Recommendation from City Council Ballot Measure Ad Hoc Committee and Provide Direction to City Staff
A
LTERNATIVES:

1. Tak
e no action

2. Provide direction to explore revenue measures other than the General Obligation Bond AT
TACHMENTS:

N
one
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: February 27, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
John Mercado, Accountant
SUBJECT: Consider Adoption of a Resolution Amending the 2023-24 Budget BACKGROUND:

City Council adopted Resolution No. 2023-84 establishing the Fiscal Year 2023-24 (FY24) budget on June 27, 2023, with an operating budget of $131.98 million and new capital appropriations of $26.4 million, totaling $158.38 million. In addition to the FY24 appropriations, the City Council adopted an estimated carryover appropriation of $70.82 million, representing unexpended capital program appropriations carried forward from FY23 to FY24 “carryovers.” DISCUSSION:

The recommended budget amendments fall into four categories, as summarized in Table 1, and detail the change in resources (revenues and transfers-in) and requirements (expenditures and transfers-out). Net revenue is the increase or decrease in the fund balance, with a positive net revenue increasing the fund balance. The first three amendment categories include adjustments necessary to accurately reflect the City’s financial and budgetary position in FY24, Tables 2, 3, and 4. Consistent with past practice, City staff is also transmitting budget amendment requests for services, goods, or supplies that became known after the start of FY24 (Table 5).

Table 1. All Funds Budget Amendment Summary
Budget Amendment Category
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Net Revenue
Increase/
(Decrease)
Table 2: Audit Adjustments and Budget
Corrections $27,148,959 ($29,278,959) ($2,130,000)
Table 3: Capital Improvement Program
Carryovers - 9,852,668 9,852,668
Table 4: Purchase Order Carryovers 35,362,956 (35,362,956) - Table 5: Budget Amendment Requests 805,000 (11,192,040) (10,387,040) Total $63,316,915 ($65,981,287) ($2,664,372)
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Item 7d.

Honorable Mayor and Members of the City Council
February 27, 2024

Budget Corrections and Audit Adjustments
Upon completion of the June 30, 2023, Annual Comprehensive Financial Report, City staff recommends several transfers to record audit adjustments as follows:

1. CityNet and Stormwater Enterprise Funds. As of June 30, 2023, the CityNet and Stormwater Enterprises held a total negative cash balance of $16.7 million. The auditors posted an inter-fund advance from the General Fund to offset the negative cash.

However, the City Council did not authorize those transfers and did not fully address the negative equity positions in the three funds. The recommended action is to transfer $23.67 million from the Community Benefit Fund (Fund 166) to the City Net and Stormwater funds to zero out their negative equity positions as of June 30, 2023. The Community Benefit Fund results primarily from the YouTube/Google development agreement with YouTube/Google and is unrestricted.

2. Federal/State Grants Fund. The Federal/State Grants Fund (Fund 121) held a negative cash position as of June 30, 2023, of $1.35 million. This amount arises from the 2023 Winter Storm Emergency, and reimbursement claims are pending with the Federal Emergency Management Agency (FEMA) Local Assistant Program. The recommendation is to backfill the negative cash using the Emergency Disaster Reserve (Fund 136), a special revenue fund set aside by City Council policy using funds originally received from PG&E from the 2010 Pipeline Explosion.

Table 2. Audit Adjustments and Budget Corrections
Fund
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Net Revenue
Increase/
(Decrease)
121 - Federal/State Grants 1,352,099 - 1,352,099
136 - Emergency Disaster Reserve - (1,352,099) (1,352,099) 160 - Community Facilities Impact
Fee
- (1,830,000) (1,830,000)
161 - Public Safety Facilities
Impact Fee - (300,000) (300,000)
166 - Community Benefit - (23,666,860) (23,666,860)
201 - Parks And Facilities Capital 2,130,000 (2,130,000) - 621 - Stormwater 2,186,271 - 2,186,271
641 - CityNet 21,480,589 - 21,480,589
Total 27,148,959 (29,278,959) (2,130,000)
In addition to audit adjustments, City staff have identified two budget corrections required to reconcile the City Council adopted FY24 Capital Improvement Program budget. First, the Fire Station 52 Replacement Phase 1 project requires $0.3 million to proceed with the initial project.

The oversight is related to an FY23 budget adjustment that was never formally approved by the City Council despite being included in the FY24 adopted budget as carryover funding. The recommendation is to transfer monies from the Public Safety Facilities Impact Fee Fund to the Parks and Facilities Capital Fund.
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Honorable Mayor and Members of the City Council
February 27, 2024

The second budget amendment is $1.8 million for the Recreation and Aquatics Center (RAC) to backfill Park In-Lieu Fee from the Community Facilities Impact Fee to the Parks and Parks and Facilities Capital Fund. The amendment results from an appropriation of $1.83 million from the Parks In-Lieu (PIL) fund in FY22 using $3.2 million paid by the developer of a new mixed-use project at 111 San Bruno Avenue. In FY22, the developer decided not to proceed with construction and withdrew their project applications, requiring the City to refund the full $3.2 million to the application. Consequently, City staff reversed the PIL transfer and replacement funding was not provided, leaving the RAC budget with a cash deficit of $1.8 million. The recommendation is to use the Community Facilities Impact Fee Fund, which replaced the PIL fund, to fill the gap.

Capital Improvement Program Carryovers
The adopted budget anticipated unexpended Capital Improvement Program appropriations carried forward from FY23 to FY24. Carryovers are a standard practice in CIP budgeting due to the nature of the capital projects, some of which span multiple fiscal years and others that are programmatic, such as wildfire mitigation. Table 3 outlines the estimated FY24 carryover appropriations by the fund as adopted by Resolution 2023-84, the actual carryover, and the required budget amendment. A positive adjustment reflects that the project expended less than anticipated by the end of FY23, and the estimated budgeted carryover needs to be higher. A negative adjustment reflects that the project expended more than estimated for FY23, requiring a lower budget carryover than the adopted budget. Regardless of the carryover adjustments, no projects are over budget. CIP carryover is predominantly in Streets, Water, and Wastewater for multi-year construction contracts.

Table 3. Capital Improvement Program Carryovers
Fund
FY24
Budgeted CIP
Carryover
Appropriations
Required
Increases/
(Decreases)
FY24
Amended
Carryovers
201 - Parks and Facilities Capital $11,281,616 ($5,929,726) $5,351,890 203 - Streets Capital 17,343,604 ($1,435,019) 15,908,585 207 - Technology Capital 1,664,583 ($171,332) 1,493,251 611 - Water 19,277,173 $148,642 19,425,815
621 - Stormwater 987,804 ($28,586) 959,218
631 - Wastewater 20,191,970 ($2,431,568) 17,760,402
641 - CityNet 73,157 ($5,079) 68,078
Total $70,819,907 ($9,852,668) $60,967,239
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Honorable Mayor and Members of the City Council
February 27, 2024

Purchase Order Carryovers
The adopted budget did not anticipate carryover of purchasing commitments made before June 30, 2023; however, as past practice, staff carries over the purchase order commitments from year to year. Table 4 summarizes the purchase order carryovers by Fund. Carryover purchases are funded by a restricted fund balance recorded at year-end to ensure funds are available in the next fiscal year to satisfy the expenditure commitments. The largest purchase order carryovers occur in capital projects with active construction. For example, the $18.6 million Parks and Facilities Capital Program carryover includes purchase orders for the Recreation and Aquatics Center (RAC) construction.

Table 4. Purchase Order Carryovers
Fund
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Net Revenue
Increase/
(Decrease)
001 - General Fund $2,094,703 ($2,094,703) $-
002 - General Fund Reserve 37,834 ($37,834) -
006 - American Rescue Plan Act 65,582 ($65,582) -
111 - Police Asset Forfeiture 25,000 ($25,000) -
121 - Federal/State Grants 155,830 ($155,830) -
122 - Solid Waste/ Recycle 32,322 ($32,322) -
130 - Impact Fees 22,450 ($22,450) -
133 - Restricted Revenues 81 ($81) -
201 - Parks and Facilities Capital 18,597,045 ($18,597,045) - 203 - Streets Capital 3,191,653 ($3,191,653) -
207 - Technology Capital 48,942 ($48,942) -
611 - Water 4,716,996 ($4,716,996) -
621 - Stormwater 599,690 ($599,690) -
631 - Wastewater 4,450,052 ($4,450,052) -
641 - CityNet 21,371 ($21,371) -
702 - Facility Maintenance Internal
Service 53,198 ($53,198) -
703 - General Equipment Revolving 1,209,465 ($1,209,465) - 707 - Technology Internal Service 40,742 ($40,742) -
Total $35,362,956 ($35,362,956) $-
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Honorable Mayor and Members of the City Council
February 27, 2024

Budget Amendment Requests
City staff annually return to Council after the annual budget adoption with budget amendment requests for items that were not identified in the annual budget process. Department heads present the City Manager with requests for amendments that rise to the level of operation necessity and either have a dedicated funding source or rely on unanticipated revenue increases. Table 5 provides a summary of requests by Fund. Additional descriptions of the budget request are included as Attachment 2.

Table 5. Budget Amendment Requests
Fund
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Net Revenue
Increase/
(Decrease)
001 - General Fund $685,000 ($195,204) $489,796
111 - Police Asset Forfeiture - (79,806) (79,806)
122 - Solid Waste/ Recycle - (32,430) (32,430)
133 - Restricted Revenues - (69,600) (69,600)
160 - Community Facilities Impact Fee - (85,000) (85,000) 201 - Parks and Facilities Capital 120,000 (120,000) - 611 - Water - (2,585,000) (2,585,000)
621 - Stormwater - (70,000) (70,000)
631 - Wastewater - (7,955,000) (7,955,000)
Total $805,000 ($11,192,040) ($10,387,040)
FISCAL IMPACT:

Overall, the recommended amendments increase net revenue in the General Fund by approximately $0.5 million due to increased business tax revenue from the recently negotiated business tax agreement with Walmart.com. Notable decreases are observed in the Special Revenue Funds, which reflects the significant transfer of cash from the Community Benefit Fund to Stormwater and CityNet Enterprises and a less significant transfer to the Capital Funds.

Finally, Water and Wastewater Enterprises reflect a significant increase in budget amendment requests to authorize staff to encumber funds for the anticipated award of contracts before the end of FY24.

Table 6 summarizes all budget amendments resulting in a net revenue decrease of $3.9 million, mostly attributed to capital spending anticipated in the Water and Wastewater Enterprises.

Attachment 1 lists the fund-by-by change in resources and requirements that will be recorded in the City’s budget system, if approved by City Council.
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Honorable Mayor and Members of the City Council
February 27, 2024

Table 6. Summary of Amendments by Fund Category
Fund Category
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Net Revenue
Increase/
(Decrease)
General Funds $2,883,119 ($2,393,323) $489,796
Special Revenue Funds 1,587,782 (27,651,478) (26,063,696) Capital Funds 24,087,640 (16,551,563) 7,536,077
Water & Sewer Enterprises 9,220,246 (17,477,320) (8,257,074) Stormwater & CityNet Enterprises 24,287,921 (657,396) 23,630,525 Internal Services 1,250,207 (1,250,207) -
Total $63,316,915 ($65,981,287) ($2,664,372)
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 a Resolution Amending the Fiscal Year 2023-24 Budget ALTERNATIVES:

1. Approve City staff’s recommendation and add a $135,000 budget for November 2024 ballot measure professional services, if City Council takes action to move forward with the effort.

2. Approve the recommendation as modified by Council.

3. Take no action on the recommended, which has the effect of de-funding carryover appropriations, purchase order commitments, and previously approved budget amendments.

4. Take no action on budget corrections and audit adjustments.

ATTACHMENTS:

1. Resolution

2. Mid-year budget amendment requests
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RESOLUTION NO. 2024 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO AMENDING THE FISCAL YEAR 2023-24 ADOPTED BUDGET
WHEREAS, the City prepares and adopts its budgets with the intent of funding priorities, capital improvements, and general governmental business through a planned program of services adopted in the annual budget and recorded in the City’s financial system; and WHEREAS, the City Council approved Resolution no. 2023-84 adopting the Fiscal Year 2023-24 (FY24) Operating and Capital Budget on June 27, 2023; and WHEREAS, the City Council may amend the adopted budget as necessary to account for changing conditions, carryover adjustments, and supplemental budget requests; NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of San Bruno hereby resolves to amend the FY24 budgets as follows:

Fund
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Increase/
(Decrease)
Net Revenue
001 - General Fund $2,779,703 ($2,289,907) $489,796
002 - General Fund Reserve 37,834 (37,834) -
006 - American Rescue Plan Act 65,582 (65,582) -
111 - Police Asset Forfeiture 25,000 (104,806) (79,806) 121 - Federal/State Grants 1,507,929 (155,830) 1,352,099 122 - Solid Waste/ Recycle 32,322 (64,752) (32,430)
130 - Impact Fees 22,450 (22,450) -
133 - Restricted Revenues 81 (69,681) (69,600)
136 - Emergency Disaster Reserve - (1,352,099) (1,352,099) 160 – Community Facilities Impact Fee - (1,915,000) (1,915,000) 161 - Public Safety Facilities Impact Fee - (300,000) (300,000) 166 - Community Benefit - (23,666,860) (23,666,860)
201 - Parks And Facilities Capital 20,847,045 (14,917,319) 5,929,726 203 - Streets Capital 3,191,653 (1,756,634) 1,435,019 207 - Technology Capital 48,942 122,390 171,332
611 - Water 4,770,194 (7,503,836) (2,733,642)
621 - Stormwater 2,785,961 (641,104) 2,144,857
631 - Wastewater 4,450,052 (9,973,484) (5,523,432)
641 - CityNet 21,501,960 (16,292) 21,485,668
703 - General Equipment Revolving 1,209,465 (1,209,465) - 707 - Technology Internal Service 40,742 (40,742) -
Total $63,316,915 ($65,981,287) ($2,664,372)
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ATTACHMENT 1
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I hereby certify that foregoing Resolution No. 2024 -
was introduced and adopted by the San Bruno City Council at a regular meeting on February 27, 2024, by the following vote:

AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk

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City of San Bruno
Budget Amendment Requests Detail (Staff Report Table 5.) February 27, 2024
Fund Request Name Description
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Net Revenue
Increase/
(Decrease)
001 Business License
Revenue
Budget adjustment to account for one-time adjustment to business license revenue from the recently executed business license agreement with Walmart.com
600,000 600,000
001
Firefighter Personal
Protective Equipment
(PPE)
This request increases the department's budget for an unanticipated PPE purchase for two firefighters who are currently in the San Mateo County Joint Fire Academy.
(25,000) (25,000)
001 LiveScan Machine
The current machine is approximately 14-years-old and has reached its end of life, as it is no longer supported by the vendor. This means that the software cannot be updated, which creates a serious security risk in a system that accesses extremely confidential personal identifying information. This machine is also periodically experiencing technical glitches that cannot be repaired. The new machine will replace the aging and no longer serviceable equipment to allow fingerprint supported background checks and critical arrestee identification and booking to continue. These background checks are done for permitting purposes, including all the card room employees, and background checks for city employees. This replacement machine will also produce identification cards required as part of the licensing/permitting processes. Lastly this will also provide mobile fingerprint readers for infield identifications, better ensuring that dangerous wanted persons are not inappropriately released in the field and increasing the safety of officers. (35,204) (35,204)
001 Police Training
Budget
The City has not increased the police department's training budget in many years despite these increased costs, and we are nearly out of money for the current fiscal year despite the need to complete substantial additional training. Costs of trainings have increased dramatically, as have state mandated required training hours. Failing to meet these training mandates can result in decertification of officers and substantial liability exposure for the City. As just one example, Emergency Vehicle Operations Course (EVOC) is required every year, which costs the department approximately $15k. This does not include travel accommodations or meal reimbursements, which have also increased by at least 10%. Most required trainings occur outside of the local area and are conducted by a third party, POST-approved vendor, which dictates the cost. Trainings apply to all Sworn personnel as well as all dispatchers, including per-diem dispatchers. Any equipment that pertains to training is also purchased from this account, which could include things like, cones for motor/bike patrol school, range related items not covered under the range budget, K9 training tools, notary licenses, etc. To have meaningful training classes, there are consumable items that must be purchased frequently. The cost of all these items has increased considerably over the last few years, which means that we can no longer meet our needs with the allotted budget.
(50,000) (50,000)
001 Consultant for All
Parks Assessment
Funding for an assessment of the overall condition and functionality of the park system as it relates to various neighborhoods and the overall City. The assessment will address deferred maintenance and relevance of the current infrastructure in the various neighborhoods to guide future planning for maintenance, repair, and replacement. 85,000 (85,000) -

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ATTACHMENT 2
City of San Bruno
Budget Amendment Requests Detail (Staff Report Table 5.) February 27, 2024
Fund Request Name Description
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Net Revenue
Increase/
(Decrease)
111 Additional AXON
Fleet Cameras
The Corp Yard increased the PD's vehicle fleet by 4 vehicles in 2023.

This created the need for four additional fleet cameras from Axon. It is critical that we be able to deploy these vehicles as soon as they can be outfitted due to the extensively reported shortage of available patrol vehicles, and we cannot deploy these vehicles without the in-car cameras.
(49,806) (49,806)
111 TruNarc Handheld
Narcotics Analyzer
The Thermo Scientific™ TruNarc™ Handheld Narcotics Analyzer enables officers and other personnel to quickly scan more than 530 suspected controlled substances in a single, definitive test providing court approved identification of the substance. This equipment is mobile, allowing for field identification of controlled substances prior to handling and transport that can expose officers to dangerous substances and accidental overdoses. Emerging substances such as Fentanyl, Carfentanyl, and Iso are prevalent in our area and nearly impossible to differentiate from other drugs visually. If accidentally inhaled or in some cases even touched, these substances can cause overdose and death quickly. Additionally, this machine will remove the need for costly initial substance testing by the crime lab as it uses the same machine and charges us approximately $150 for each test.
(30,000) (30,000)
122 CalRecycle Grant
Grant funds were received in FY2023 but the revenue was not budgeted for FY2024. Grant funds need to be spent by March 2024 - a portion of the grant was encumbered in PO #3010-00523. The remainder that will be spent on equipment and office supplies. (32,430) (32,430)
133 Document Scanning
The funds would go toward a major scanning project of construction plans, which is consistent with the purpose of the restricted revenue fund. The City Council prioritizes online permitting, and getting more of our historical paper plans scanned furthers this goal. YTD revenues from the document imaging fee is over 40,000, and there is ample fund balance.
(50,000) (50,000)
133 Posy Park Mural
Repairs Public Art Maintenance and Repair - Preservation of Public Art (7,600) (7,600) 133
Tech fund for
Granicus short term
rental data
Originally, this money was appropriated in last year's budget. There were delays in getting the agreement finalized. The appropriation was not carried over. The data is a key part of the short term rental process, which was a prior City Council strategic initiative. (12,000) (12,000)
160 Consultant for All
Parks Assessment Transfer to General Fund. (85,000) (85,000) 201 RAC CIP #51009 Additional funding needed to complete wastewater components of the RAC project 120,000 (120,000) - 611
Funding for
Consultant Services
to Update Water and
Sewer Capacity
Charge Study
It has been 6 years since the last water and sewer capacity charge study was prepared and adopted. Reviews or updates are recommended every 5 years to account for changes to the capital projects lists. The water master plan was updated in late 2022 so a review of the capacity charge study would be beneficial. (35,000) (35,000)

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City of San Bruno
Budget Amendment Requests Detail (Staff Report Table 5.) February 27, 2024
Fund Request Name Description
Resources
Budget
Increase/
(Decrease)
Requirements
Budget
(Increase)/
Decrease
Net Revenue
Increase/
(Decrease)
611
Water Main
Improvement and
Replacement
Program - Avenues
No. 2-1
Request authorizes department to encumber funds. (900,000) (900,000) 611
Water Main
Improvement and
Replacement
Program - Avenues
No. 3-1
Request authorizes department to encumber funds. (50,000) (50,000) 611
Water Pump Station
Improvement and
Replacement
Program - Lake Drive
Pump Station
Request authorizes department to utilities staff and project management time to close-out the project. (800,000) (800,000) 611
Water Pump Station
Improvement and
Replacement
Program - Sneath
Lane Pump Station
Request authorizes department to encumber funds. (800,000) (800,000) 621 Winter Storm Hazard
Mitigation Efforts Request authorizes department to encumber funds. (70,000) (70,000) 631
Crestwood Pump
Station Improvement
and Replacement
Request authorizes department to encumber funds. (2,200,000) (2,200,000) 631
Funding for
Consultant Services
to Update Water and
Sewer Capacity
Charge Study
It has been 6 years since the last water and sewer capacity charge study was prepared and adopted. Reviews or updates are recommended every 5 years to account for changes to the capital projects lists. The water master plan was updated in late 2022 so a review of the capacity charge study would be beneficial. (35,000) (35,000)
631
Main Improvement
and Replacement -
Avenues No. 2-1
Request authorizes department to encumber funds. (2,600,000) (2,600,000) 631
Main Improvement
and Replacement -
Avenues No. 2-2
Request authorizes department to encumber funds. (2,100,000) (2,100,000) 631
Main Improvement
and Replacement -
Crestwood Drive
Request authorizes department to encumber funds. (600,000) (600,000) 631
Main Improvement
and Replacement -
Earl Ave / Glenview
Ave
Request authorizes department to encumber funds. (300,000) (300,000) 631 RAC CIP #51009 Transfer to Fund 201 (120,000) (120,000) Total 805,000 (11,192,040) (10,387,040)

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