Agenda, second session — San Bruno City Council, June 25, 2024 (part 1 of 2)

"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
June 25, 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/89527714086?
pwd=cI5rPG4Xcvo53LFxoA5RsTcSZ3fP1w.9yq2fdLTZtEGyShW
Phone Line: 16465588656
Webinar ID: 895 2771 4086
Webinar Password: 012848
*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 is a single public comment period for all items in this section a. Receive Presentation on Pre4th of July Safety Operations b. Receive Update on the Recreation and Aquatic Center Project

6. CONSENT CALENDAR
All items are considered routine or implement an earlier Council action and may be enacted by one motion; there will be no separate discussion, unless requested. There will be a single public comment period for all items in this section unless a Councilmember requests to pull an item for a separate vote. a. Approve the Draft Special Meeting Minutes of June 11, 2024 and Regular Meeting Minutes of May 28, 2024
b. Approve Accounts Payable for June 10, 2024 and June 17, 2024 c. Accept Payroll for June 2, 2024
d. Approve Investment Report Dated May 31,2024
e. Consider Adoption of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Amending the Zoning Map for a Portion of 300 Piedmont Avenue to Change the Zoning from SingleFamily Residential District to Open Space and Conservation District, Pursuant to Section 12.136.040 of the San Bruno Municipal Code for the Proposed Development of the Crestmoor Project at 300 Piedmont Avenue (APN: 019170020) (ZC24 001)”
f. Consider Adoption of a Resolution Approving the Fiscal Year 202425 San Bruno Community Foundation Operating Budget
g. Consider Adoption of a Resolution:
Approving the Design of the 202122 Street Reconstruction Project; Authorizing the City Manager to Execute a Construction Contract with Interstate Grading & Paving, Inc. for the 202122 Street Reconstruction Project in an amount not to exceed $3,121,064;
Approving a Material Testing Agreement with SmithEmery, Inc. in an amount not to exceed $62,810;
Approving a Construction Contingency of $470,000;
Transferring the budget in the amount of $1,072,000 from the 202324 Street Reconstruction Project to the 202122 Street Reconstruction Project; Appropriating $200,000 from the 202425 SB 1 funds projected to be in the amount of $1,139,969 to the 202122 Street Reconstruction Project; Appropriating funds from the City of Millbrae in the amount of $126,500 to fund the pavement work on the portion of Santa Helena Avenue within the City of Millbrae; Approving a total project budget in the amount of $4,491,705; and Determining the Project is Exempt Under the California Environmental Quality Act h. Consider Adoption of a Resolution Adopting a List of Projects for Fiscal Year 202425 Funded by SB1: The Road Repair and Accountability Act of 2017 and Authorizing Submittal of the Project List and Application for RMRA Funds to the California Transportation Commission i. Consider Adoption of a Resolution:

Approving the Design of the Winter Storm Hazard Mitigation Project in Crestmoor Canyon;
Authorizing the City Manager to Execute a Construction Contract with C2R Engineering, Inc. for the Winter Storm Hazard Mitigation Project within Cityowned Property within Crestmoor Canyon, Located near the 1400block of Claremont Drive in an amount not to exceed $177,800;
Approving a Construction Contingency of $27,000;
Approving a Total Project Budget in the Amount of $451,000; and Determining the Project is Exempt Under the California Environmental Quality Act j. Consider Adoption of a Resolution Authorizing the City Manager to Execute a Letter of Intent Regarding the Sale and Acquisition of San Bruno CityNet Services Substantially as Included in the Proposal from Comcast
k. Consider Adoption of a Resolution Approving the Text of the Dedication Plaque for the San Bruno Recreation and Aquatic Center and Installation of a Recognition Wall Inside the Facility to Memorialize Individuals that Contributed to the Project, and Determining that the Project is Exempt Under the California Environmental Quality Act

7. PUBLIC HEARING(S)
Public comment will be requested after each topic in this section a. Hold a Public Hearing on the Fiscal Year 202425 Capital Improvement Program Budget; and Consider Approving: (i) a Resolution Adopting the Fiscal Year 202425 Budget, (ii) a Resolution Establishing the Fiscal Year 202425 Appropriations Limit of $55,305,709, (iii) a Resolution Adopting the City of San Bruno’s Financial Policies for Investments, Fund Balances, Award of Contracts, and Debt Management; and (iv) a Resolution Amending the Fiscal Year Amended Adopted 202324 Budget

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

10. ADJOURNMENT – The next Regular City Council Meeting will be held on July 9, 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 June 21, 2024, by 9:00 pm.

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1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

2 of 181

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

"Th e 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

MINUTES

SAN BRUNO CITY COUNCIL SPECIAL MEETING
June 11, 2024
5:30 PM

1. CALL TO ORDER
The meeting was called to order at 5:30 pm

2. ROLL CALL
Councilmembers Alvarez, Hamilton, M. Medina, Vice Mayor Salazar and Mayor R.

Medina were all present

3. CLOSED SESSION
a. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: City Manager
Employee organizations: Unrepresented
No members of the public wished to speak on this item
No reportable action was taken

4. STUDY SESSION
a. Receive Presentation of the 2024 Community Priorities Survey and Provide Direction on a November 5, 2024 General Election General Obligation Bond Measure City Manager Alex McIntyre and Chief Financial Officer Nick Pegueros introduced the item to the City Council and answered questions
Bryan Godbe of Godbe Research presented the item to the City Council and answered ques
tions
No members of the public wished to speak on this item
The City Council provided direction to proceed and bring the matter back on July 9, 2024

5. ADJOURNMENT
This meeting adjourned at 6:27 pm to the next Regular City Council Meeting on June 11, 2024 at 7:00 pm.

These City Council meeting minutes were prepared by Lupita Huerta, City Clerk, and presented to the City Council for approval at the regular meeting of June 25, 2024. ______________________________ ______________________________ Lupita Huerta
City Clerk
Rico E. Medina
Mayor
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Item 6a.
"Th e 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

MINUTES

SAN BRUNO CITY COUNCIL REGULAR MEETING
May 28, 2024
7:00 PM

1. CALL TO ORDER
The meeting was called to order at 7:01 pm

2. ROLL CALL
Councilmembers Alvarez, Hamilton, M. Medina, Vice Mayor Salazar and Mayor R.

Medina were all present

3. PLEDGE OF ALLEGIANCE
Mayor R. Medina led the pledge

4. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
The following members of the public provided public comment:
• David Nigel
• Wesam D
• Karin Cromosini
• Rebecca Molano

5. ANNOUNCEMENTS/PRESENTATIONS
Mayor R. Medina spoke briefly about tear gas incident at Portola Elementary a. San Bruno Lions Club will hold the 82nd Annual Posy Parade on Sunday June 2, 2024! The Floral Parade for Children will Start at 11:00 am on San Mateo Avenue by Artichoke Joe’s. The parade will follow San Mateo Avenue south and will end at Mastick Avenue. Following the parade, there will be post parade activities and entertainment in the Mastick parking lot adjacent to Centennial Plaza.
b. On June 3, 2024 at 10:00 am, the City of San Bruno will Raise the LGBTQ+ Progress Pride Flag in Celebration of Pride Month. Members of the Public are Welcome to Join to Observe as the Ceremonial Flag Is Raised.

Mayor R. Medina added announcement for Fire Association Pancake Breakfast on June 3, 2024 from 8:30 am to 11:00 am
No members of the public wished to speak under Announcements/Presentations

6. CONSENT CALENDAR
a. Approve the Draft Regular Meeting Minutes for the Meeting of March 12, 2024 b. Approve Accounts Payable for May 13, 2024 and May 20, 2024 c. Accept Payroll for May 5, 2024
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d. Approve Reconciliation of General Ledger to Bank Report Dated March 31, 2024 No items were pulled for a separate vote
No items were pulled for questions/comments
M/S Hamilton/Salazar to approve all items on consent. Motion passed unanimously.

7. PUBLIC HEARING(S)
a. Hold Public Hearing and Consider Taking the Following Actions to Approve the Crestmoor Residential Project at 300 Piedmont Avenue:

1. Adopt a Resolution Certifying a Final Environmental Impact Report and adopting a M
itigation Monitoring and Reporting Program, CEQA Findings, and a Statement of Overriding Considerations; and

2. Adopt a Resolution Amending the General Plan Land Use Designation for the dedi
cated portion of APN: 019-170-020 to change it from Low Density Residential to O
pen Space, amend other provisions contained in the General Plan regarding the pr
eservation of open space and playing fields at the Crestmoor Site, and rescind City Council Resolution No. 2022-04 (GPA24-001); and

3. Introduce, Read by Title Only and Waive Further Reading of an Ordinance Amending t
he Zoning Map to rezone the dedicated portion of APN: 019-170-020, approximately

6.91 acres, from Single Family Residential District (R-1) to Open Space and C
onservation District (O), (ZC24-001); and

4. Adopt a Resolution Conditionally Approving a Vesting Tentative Tract Map, Planned U
nit Permit, Architectural Review Permit, Density Bonus Request, Affordable Housing P
lan, and Tree Removal Permit, to construct a residential subdivision with 155 homes at 300 Piedmont Avenue (TM22-001, PUP22-001, AR22-006, DB24-001) Councilmember Hamilton recused himself from the item due to the subject property being 1,000 feet from his home causing a conflict of interest Community Development Senior Planner Michael Smith presented the item to the City Council and answered questions
Elaine Breeze and colleagues, Applicant Summerhill Homes, presented the item to the City Council and answered questions
Community Development Director Peter Gilli answered questions Christie Beck and Taylor McAdams of Fehr & Peers answered questions The following members of the public provided comments:
• Cathy Jordensen
• Greg Land
• Randall Booker
• Larisa Ocanada
• Rich Fern
• Joe Meyer
• Alex Schiefer
• Angel LopezJeff Dachauer
• Jamal Katout
• Justin
• Unknown Name
City Attorney Trisha Ortiz provided comments
M/S Salazar/Alvarez to close public hearing. Motion passed 4-0 vote, with Councilmember Hamilton recused
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City Attorney Trisha Ortiz answered questions
M/S Salazar/Alvarez to approve as read by the City Clerk. Motion passed 4-0 vote, with Councilmember Hamilton recused
The City Council meeting recessed at 9:01 pm and reconvened at 9:12 pm

8. CONDUCT OF BUSINESS
a. Consider Adoption of a Resolution Establishing a Cap on the Fireworks Stand Permit Cost Recovery Fee in the Amount of Seven Percent (7%) of Each Permittee’s Gross Fireworks Sales for the 2023 and 2024 Independence Day Holidays and Waive C
ollection of the Non-Refundable Application Fee for All Previous Years Chief Financial Officer Nick Pegueros presented the item to the City Council and ans
wered questions
Fire Chief Ari Delay answered questions
Police Chief Ryan Johansen answered questions
City Manager Alex McIntyre answered questions
The following members of the public provided comments:
• Bob Luttrell
• Dennis Revell
M/S Hamilton/Salazar to approve the item as ready by the City Clerk. Motion passed unanimously.

9. COUNCIL COMMITTEE REPORT OUT
The following members of the City Council provided comments:
• Councilmember Hamilton
• Mayor R. Medina

10. COMMENTS FROM COUNCIL MEMBERS
a. Councilmember M. Medina
Study Session for Revisions to Parking Enforcement and Parking Kiosks Fees Councilmember M. Medina introduced the item to the City Council Cit
y Manager Alex McIntyre answered questions and provided comments The following members of the public provided comments:
• Rebecca Molano
• Adolfo
Police Chief Ryan Johansen answered questions and made comments No reportable action was taken
The following members of the City Council provided comments:
• Mayor R. Medina

11. ADJOURNMENT
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The meeting adjourned at 10:56 pm. The next Regular City Council Meeting will be held on June 11, 2024 at 7:00 pm
These City Council meeting minutes were prepared by Lupita Huerta, City Clerk, and presented to the City Council for approval at the regular meeting of June 25, 2024. ______________________________  ______________________________ Lupita Huerta
City Clerk
Rico E. Medina
Mayor
8 of 181
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 10, 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 209307 through 209437 inclusive, totaling $548,605.36 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 $232,137.36
131 In-Lieu Fees $3,166.64
132 Agency On Aging $487.40
133 Restricted Revenues $1,090.31
137 Developer Project Contributions $34,194.50
201 Parks and Facilities Capital $9,280.75
203 Street Improvement Projects $67,278.49
207 Technology Capital $4,200.00
611 Water Fund $32,191.31
631 Wastewater Fund $43,932.13
641 CityNet Services Fund $58,502.82
651 Parking Fund $44,150.03
701 Central Garage $8,940.77
702 Facility Maintenance Fund $2,235.36
707 Technology Development $6,817.49
TOTAL FOR APPROVAL $548,605.36
Respectfully submitted,
_________________________
Chief Financial Officer Date
DocuSign Envelope ID: A2CAEAE2-F2D0-47A9-8E4F-C7ED91529380 6/12/2024
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Item 6b.
6/10/2024 12:06:03PM
Positive Pay Listing
City of San Bruno
apPosPay Page: 1
Bank: apbank 432000438Document group: komalley
Vendor Code & Name Check # Check Date Amount
0017770 A-
A LOCK & ALARM INC 209307 330.996/10/2024
0104680 ACCESS 24 COMMUNICATIONS INC. 209308 457.756/10/2024 0106435 ACTION TOWING & ROAD SVC. INC. 209309 148.506/10/2024 0000858 ADECCO EMPLOYMENT SERVICES 209310 5,334.406/10/2024 0001170 AIRGAS USA, LLC 209311 298.866/10/2024
0000163 AIRPORT AUTO PARTS INC. 209312 27.516/10/2024 0104542 ALTA LANGUAGE SERVICES, INC. 209313 66.006/10/2024 0096700 ANDY'S WHEELS & TIRES 209315 1,105.136/10/2024 0109246 AQUA METRIC SALES, CO. 209316 550.236/10/2024 0111159 ASHLEY CROCIANI 209337 500.006/10/2024
0104899 ASSOCIATE PARTNERS 209317 10.006/10/2024
0016123 AT&T 209318 645.256/10/2024
0018465 AT&T MOBILITY 209319 235.976/10/2024
0105649 ATLAS PLUMBING AND ROOTER,INC. 209320 3,500.006/10/2024 0000345 BAKER & TAYLOR BOOKS 209321 1,633.576/10/2024 0109613 BAYSPORT PREVENTIVE MEDICAL GROUP 209394 440.006/10/2024 0110745 BETTERHELP, INC. 209322 1,020.006/10/2024
0109646 BIO CAR CARE 209323 635.006/10/2024
0111507 BOOSTER'S 71 209324 3,102.006/10/2024
0000378 BROADMOOR LANDSCAPE SUPPLY 209325 198.916/10/2024 0111158 CALIFORNIA SEWER ENGINEERING, INC. 209409 3,500.006/10/2024 0106437 CALIX, INC. 209326 13,225.006/10/2024
0018048 CALLANDER ASSOCIATES LANDSCAPE ARCHITECTURE, INC. 209371 4,623.786/10/2024 0106548 CAPI
TAL ONE TRADE CREDIT 209327 6,299.046/10/2024
0013965 CH BULL CO. 209328 196.546/10/2024
0111490 CHRISTIAN REEVES 209398 13.896/10/2024
0016324 CINTAS CORPORATION #464 209329 109.886/10/2024 0016324 CINTAS CORPORATION #464 209330 112.066/10/2024 0110831 CITY NATIONAL BANK 209331 49,986.456/10/2024
0000227 CITY OF SAN BRUNO-UTILITY 209332 430.156/10/2024 0109639 CLAREMONT BEHAVIORAL SVCS,INC. 209333 753.756/10/2024 0109998 CONSOR PMCM, INC. 209334 11,334.506/10/2024
0018691 CPCA 209336 730.006/10/2024
0109577 DIRECTWORX 209338 3,974.406/10/2024
0101178 DISCOUNT PLUMBING 209339 6,000.006/10/2024
0000430 DKS ASSOCIATES 209340 1,098.606/10/2024
0105820 EAST BAY TIRE CO 209341 4,077.026/10/2024
0110442 ELISEO AMAYA 209314 50.006/10/2024
0018899 EOA INC. 209344 237.006/10/2024
0000046 EWING IRRIGATION PRODUCTS INC 209345 975.536/10/2024 0017227 FAILSAFE TESTING, LLC 209346 2,517.526/10/2024 0106234 FASTRAK INVOICE PROCESSING DEPT. 209369 7.006/10/2024 0102627 FASTRK VIOLATION PROCESSING DEPT. 209428 27.006/10/2024 0111508 FATTS CUSTOM CONSTRUCTION 209347 2,000.006/10/2024 0000944 FEDEX 209348 47.106/10/2024
0001782 FLOWERS ELECTRIC & SVC.CO.INC. 209350 1,190.006/10/2024 0018117 FLYERS ENERGY, LLC 209351 8,579.046/10/2024
0109776 FRESH LINE PRODUCE 209352 192.406/10/2024
0016363 GCS ENVIRONMENTAL & EQUIPMENT SVC. 209343 43.816/10/2024 0111210 GHIRARDELLI ASSOCIATES, INC. 209353 32,056.506/10/2024 0104135 GLOBAL TRACKING COMMUNICATIONS, INC. 209421 376.956/10/2024 0105777 GODBE CORPORATION 209354 36,045.006/10/2024
0110360 GOT GOPHERS, INC. 209355 1,800.006/10/2024
Page: 1
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6/10/2024 12:06:03PM
Positive Pay Listing
City of San Bruno
apPosPay Page: 2
Bank: apbank 432000438Document group: komalley
Vendor Code & Name Check # Check Date Amount
0000162 GRAINGER 209356 93.696/10/2024
0095966 GRE
AT AMERICA FINANCIAL SVC. 209357 307.326/10/2024
0017900 GREAT LAKES DATA SYSTEMS INC 209358 2,300.006/10/2024 0110361 GREEN MACHINES INC. 209359 1,325.936/10/2024
0096837 GYM DOCTORS 209360 5,444.396/10/2024
0111486 HD SUPPLY, INC. 209361 2,223.866/10/2024
0096946 HDR ENGINEERING, INC. 209362 26,568.346/10/2024 0018544 HEART OF SAN MATEO COUNTY 209363 3,166.646/10/2024 0107476 IDAX DATA SOLUTIONS 209365 4,550.006/10/2024
0108404 IMAGETREND, INC. 209366 3,939.286/10/2024
0015531 INTERSTATE BATTERY SYS. OF SF 209368 134.276/10/2024 0111186 JASE INDREBO 209367 42.116/10/2024
0110998 LAZ PARKING ASSOCIATES LLC 209373 43,291.036/10/2024 0017570 LEHR AUTO ELECTRIC 209374 531.766/10/2024
0018777 LEXISNEXIS RISK DATA MANAGEMENT 209399 574.106/10/2024 0110309 LOOKINGPOINT, INC. 209375 4,515.586/10/2024
0017924 LORAL LANDSCAPING INC. 209376 2,100.006/10/2024 0111505 MAHESH YADAV 209435 1,000.006/10/2024
0107604 MARILOU LAFON 209370 150.006/10/2024
0017906 MICHAEL BLUNDELL 209377 500.006/10/2024
0106643 MICHAEL PAULIN 209390 176.676/10/2024
0104730 MUNICIPAL EMERGENCY SERVICES 209378 5,288.926/10/2024 0000357 NATIONAL CABLE TV CO-OP, INC. 209379 425.806/10/2024 0102920 NBS 209380 2,000.006/10/2024
0104655 NICHOLAS OLIVERA 209382 208.246/10/2024
0111055 O'REILLY AUTO PARTS 209384 29.556/10/2024
0110243 ODP BUSINESS SOLUTIONS, LLC 209381 932.486/10/2024 0097567 ONE HOUR DRY CLEANING 209383 464.706/10/2024
0000012 PACIFIC GAS & ELECTRIC 209385 1,451.106/10/2024 0000101 PACIFIC NURSERIES 209386 589.486/10/2024
0106110 PACIFIC OFFICE AUTOMATION 209387 845.896/10/2024 0106829 PACIFIC OFFICE AUTOMATION INC. 209388 548.336/10/2024 0111491 PACIFIC WEST BUILDERS 209389 957.216/10/2024
0106229 PET FOOD EXPRESS 209391 232.176/10/2024
0108277 PIVOT GROUP LLC 209392 4,600.006/10/2024
0111229 PORTER CAPITAL CORPORATION 209393 4,200.006/10/2024 0098436 PROFESSIONAL LAND SERVICES 209395 9,250.006/10/2024 0097558 PURCHASE POWER 209396 401.006/10/2024
0111236 RAPOSO ENGINEERING, INC. 209397 3,000.006/10/2024 0106293 ROBERT HALF 209400 4,230.086/10/2024
0111489 ROBERT HIGHSMITH 209364 6.486/10/2024
0018070 RON LAVEZZO 209372 40.006/10/2024
0100014 SAN BRUNO GIRLS SOFTBALL 209401 5,165.006/10/2024 0096234 SAN BRUNO POLICE ASSOCIATION 209402 6,928.006/10/2024 0111506 SAN BRUNO SOCCER, INC.(AYSO) 209403 3,520.006/10/2024 0106559 SAN BRUNO YOUTH BASEBALL 209404 2,134.006/10/2024 0106559 SAN BRUNO YOUTH BASEBALL 209405 1,987.006/10/2024 0094227 SAN MATEO COUNTY FIRE CHIEFS ASSOCIATION 209335 767.886/10/2024 0018597 SAN MATEO DAILY JOURNAL 209406 3,528.006/10/2024 0017145 SAN MATEO LAWN MOWER SHOP 209407 694.176/10/2024 0018461 SERRAMONTE FORD, INC. 209408 263.166/10/2024
0103732 SFO MEDICAL CLINIC 209410 279.006/10/2024
0097626 SHARP ELECTRONICS CORP. 209411 315.176/10/2024 0018962 SHOE DEPOT INC. 209412 200.006/10/2024
Page: 2
DocuSign Envelope ID: A2CAEAE2-F2D0-47A9-8E4F-C7ED91529380 11 of 181
6/10/2024 12:06:03PM
Positive Pay Listing
City of San Bruno
apPosPay Page: 3
Bank: apbank 432000438Document group: komalley
Vendor Code & Name Check # Check Date Amount
0001225 SIERR
A PACIFIC TURF SUPPLY,INC 209413 3,098.746/10/2024
0111509 SOUTH PACIFIC RELIEF FUND INC 209414 241.006/10/2024 0109626 SOUTHERN FIBERNET COMMUNICATIONS LLC 209349 29,210.506/10/2024 0105711 STEPFORD 209415 1,377.006/10/2024
0105796 SUNRISE FOOD DISTRIBUTOR INC. 209416 295.006/10/2024 0110995 T2 SYSTEMS CANADA INC. 209417 140.006/10/2024 0002025 TELECOMMUNICATIONS ENGINEERING ASSOCIATES 209342 496.006/10/2024 0000241 THE ADAM-HILL COMPANY 209418 144.466/10/2024
0017928 THE EDCCO GROUP, INC. 209419 15,575.286/10/2024 0000036 THOMSON REUTERS 209420 914.166/10/2024
0106660 TRIDENT K9 CONSULTING INC. 209422 550.006/10/2024 0017133 TURBO DATA SYSTEMS INC 209423 6,834.256/10/2024 0001362 TV GUIDE MAGAZINE, LLC 209424 48.476/10/2024
0018618 UNITED SITE SERVICES INC. 209425 325.936/10/2024 0105133 UTILITY TELECOM, INC. 209426 202.716/10/2024
0095749 VERIZON WIRELESS 209427 3,454.206/10/2024
0110533 WELLABLE LLC 209429 903.006/10/2024
0096767 WEST COAST ARBORISTS, INC. 209430 27,820.006/10/2024 0104660 WEST YOST ASSOCIATES, INC. 209431 2,808.256/10/2024 0000612 WESTVALLEY CONSTRUCTION CO.INC 209432 42,043.176/10/2024 0096893 WILSEY HAM 209433 19,922.766/10/2024
0109476 WORLDPAC INC 209434 34.836/10/2024
0110037 ZAYO GROUP, LLC 209436 2,142.486/10/2024
0103399 ZUMAR INDUSTRIES, INC. 209437 8,755.416/10/2024 Total count: 131
GrandTotal: 548,605.36
Page: 3
DocuSign Envelope ID: A2CAEAE2-F2D0-47A9-8E4F-C7ED91529380 12 of 181
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 17, 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 209438 through 209544 inclusive, totaling $587,696.10 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 $62,127.33
121 Federal/State Grants $10,731.00
132 Agency On Aging $904.54
133 Restricted Revenues $757.95
137 Developer Project Contributions $68,917.93
203 Street Improvement Projects $27,458.56
207 Technology Capital $6,588.33
611 Water Fund $262,254.16
621 Stormwater Fund $19,716.72
631 Wastewater Fund $17,285.92
641 CityNet Services Fund $48,896.48
701 Central Garage $9,201.31
702 Facility Maintenance Fund $5,994.18
707 Technology Development $20,361.69
711 Self-Insurance $26,500.00
TOTAL FOR APPROVAL $587,696.10
Respectfully submitted,
_________________________
Chief Financial Officer Date
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Positive Pay Listing
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apPosPay Page: 1
Bank: apbank 432000438Document group: komalley
Vendor Code & Name Check # Check Date Amount
0 111416 A SMILE 4U FROM JANET 209438 32.406/17/2024
0016708 ACOM SOLUTIONS, INC. 209439 363.656/17/2024
0000858 ADECCO EMPLOYMENT SERVICES 209440 5,218.286/17/2024 0111526 ALEXANDER PU 209512 8.396/17/2024
0018976 ALPHA ANALYTICAL LAB. INC. 209441 4,277.006/17/2024 0110697 AMAZON CAPITAL SERVICES 209444 411.056/17/2024 0109246 AQUA METRIC SALES, CO. 209447 9,274.586/17/2024 0016123 AT&T 209448 29.126/17/2024
0015110 AT&T MOBILITY 209449 747.396/17/2024
0018465 AT&T MOBILITY 209450 235.976/17/2024
0000345 BAKER & TAYLOR BOOKS 209451 2,798.476/17/2024 0102745 BAY AREA NEWS GROUP 209452 1,347.566/17/2024
0001849 BAY AREA WATER SUPPLY & CONSERVATION AGENCY 209531 7,551.716/17/2024 0108691 BEAR CLOUD TECHNOLOGIES, INC. 209453 3,500.006/17/2024 0105553 BELLECCI & ASSOCIATES, INC. 209454 852.006/17/2024 0111521 BILL TUCKETT 209539 24.446/17/2024
0111525 BRIGITTE HOLLING 209487 5.746/17/2024
0000098 BRODART CO. 209455 18.776/17/2024
0102989 CALIFORNIA DIESEL & POWER 209456 10,453.606/17/2024 0106437 CALIX, INC. 209457 787.566/17/2024
0108283 CASCADA DE FLORES 209458 1,600.006/17/2024
0111273 CHAO PING XU 209543 2,000.006/17/2024
0111514 CHRISTINA LANGFORD 209490 16.436/17/2024
0016324 CINTAS CORPORATION #464 209459 478.806/17/2024 0000508 CLEARLITE TROPHIES 209460 70.326/17/2024
0110074 COGENT COMMUNICATIONS, INC. 209461 4,000.006/17/2024 0111523 COLLEEN GILLASPY 209480 11.606/17/2024
0109788 CORE & MAIN LP 209463 1,734.356/17/2024
0111492 CORNING FORD INC. 209464 192,903.146/17/2024
0018331 CSG CONSULTANTS INC. 209465 12,840.006/17/2024 0018188 DAU PRODUCTS 209466 2,904.376/17/2024
0108696 DAVID J POWERS AND ASSOCIATES, INC. 209509 29,196.416/17/2024 0108110 DEBRA GERMENIS 209478 32.006/17/2024
0109577 DIRECTWORX 209469 1,399.456/17/2024
0101178 DISCOUNT PLUMBING 209470 9,000.006/17/2024
0110850 DOANE AND HARTWIG WATER SYSTEM, INC 209446 2,291.556/17/2024 0106349 F.A. POLI, INC. 209471 1,215.006/17/2024
0106348 FAST AGGREGATES PRODUCTS,INC. 209472 1,685.166/17/2024 0107401 FERGUSON ENTERPRISES,LLC#3326 209473 407.356/17/2024 0018117 FLYERS ENERGY, LLC 209474 20,492.546/17/2024
0017720 FOX TELEVISION STATIONS, INC. 209475 9,412.156/17/2024 0102869 FRANCHISE TAX BOARD 209476 25.006/17/2024
0104581 FRED GILLEN 209481 6.576/17/2024
0109776 FRESH LINE PRODUCE 209477 252.006/17/2024
0016154 GOETZ BROTHERS SPORTING GOODS 209482 3,281.256/17/2024 0000162 GRAINGER 209483 3,874.916/17/2024
0000541 GRANITE ROCK COMPANY 209484 3,437.706/17/2024 0095966 GREAT AMERICA FINANCIAL SVC. 209485 2,391.296/17/2024 0111520 HARRIS PERSONAL INJURY LAWYERS, INC. 209507 20,000.006/17/2024 0109502 HAULAWAY STORAGE CONTAINERS, INC. 209529 255.366/17/2024 0110056 HH ASSOCIATES US, INC. 209486 570.106/17/2024 0018553 INTERSTATE TRAFFIC CONTROL PRODUCTS 209538 825.786/17/2024 0111153 JERI EILEEN MCGOVERN 209497 62.106/17/2024
Page: 1
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City of San Bruno
apPosPay Page: 2
Bank: apbank 432000438Document group: komalley
Vendor Code & Name Check # Check Date Amount
0107255 JUANI
TA ALVARADO 209442 138.196/17/2024
0111519 JUNYAN LI 209493 11.486/17/2024
0000075 K-119 TOOLS OF CALIFORNIA INC. 209489 4,047.956/17/2024 0096379 KAREN OJAKIAN 209504 162.006/17/2024
0017661 KATHY M SCHMIDT 209521 1,996.656/17/2024
0109771 LATHROP CONSTRUCTION ASSOCIATES, INC. 209462 105.006/17/2024 0103542 LAUTZENHISER'S STATIONERY INC. 209491 1,060.696/17/2024 0111512 LAWRENCE GIANNINI 209479 18.346/17/2024
0103799 LDVALI LLC 209492 384.306/17/2024
0111456 LINDA HOLMAN 209488 225.596/17/2024
0110309 LOOKINGPOINT, INC. 209495 4,383.566/17/2024
0018177 LOWE'S 209496 8,383.236/17/2024
0111522 MAEN SARHAN 209520 8.236/17/2024
0110443 MILLBRAE COMMUNITY TELEVISION 209499 3,176.926/17/2024 0111515 NAN LIN 209494 16.686/17/2024
0102920 NBS 209500 2,000.006/17/2024
0103301 NHL NETWORK US, LP 209502 768.326/17/2024
0110243 ODP BUSINESS SOLUTIONS, LLC 209503 271.206/17/2024 0000012 PACIFIC GAS & ELECTRIC 209505 11,687.436/17/2024 0111518 PATRICK DESCHAMPS 209467 26.566/17/2024
0111517 PEDRO ALVAREZ 209443 23.236/17/2024
0001154 PENINSULA LIBRARY SYSTEM 209506 2,139.006/17/2024 0111229 PORTER CAPITAL CORPORATION 209508 5,400.006/17/2024 0111527 PRABHU ANANTHARAJ 209445 47.376/17/2024
0000285 PREFERRED ALLIANCE, INC. 209510 382.366/17/2024 0108317 PRIME ACTUARIAL CONSULTING LLC 209511 6,500.006/17/2024 0013981 QUILL CORPORATION 209513 83.236/17/2024
0000175 RECOLOGY SAN BRUNO 209514 2,022.156/17/2024
0092905 RICO E. MEDINA 209498 91.636/17/2024
0106293 ROBERT HALF 209515 5,287.606/17/2024
0109297 RORO'S AUTO REPAIR INC. 209516 9,172.106/17/2024 0108539 ROSALIE L. STEINWAY 209527 112.556/17/2024
0013581 ROVI GUIDES, INC. 209517 4,153.446/17/2024
0018597 SAN MATEO DAILY JOURNAL 209519 1,728.006/17/2024 0111524 SCOTT SABALVARO 209518 8.396/17/2024
0108537 SCOTT TONG 209537 59.406/17/2024
0110128 SEHI COMPUTER PRODUCTS INC. 209522 2,298.726/17/2024 0097626 SHARP ELECTRONICS CORP. 209523 7,648.006/17/2024 0109953 SHRED CITY 209524 63.726/17/2024
0104787 SINGER ASSOCIATES, INC. 209525 39,721.526/17/2024 0111327 SOUTH CENTRAL PLANNING& DEVELOPMENT COMMISSION(SCPDC) 209468 1,188.336/17/2024 0017087 S
TAPLES 209526 1,608.706/17/2024
0017857 STERICYCLE, INC. 209528 162.286/17/2024
0105796 SUNRISE FOOD DISTRIBUTOR INC. 209530 652.546/17/2024 0095565 SWINERTON BUILDERS 209532 36,013.006/17/2024
0096932 TASC 209534 240.436/17/2024
0000241 THE ADAM-HILL COMPANY 209535 1,971.686/17/2024 0103559 THE MLB NETWORK, LLC 209536 823.006/17/2024
0111511 THERESA/STEPHEN WELLMAN 209541 78.926/17/2024 0111513 TRISHA TABOR 209533 74.366/17/2024
0111516 TUAN NGUYEN 209501 16.776/17/2024
0104233 WAVE 209540 7,900.006/17/2024
0096893 WILSEY HAM 209542 21,697.756/17/2024
0104033 ZCORUM, INC. 209544 12,843.256/17/2024
Page: 2
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Positive Pay Listing
City of San Bruno
apPosPay Page: 3
Bank: apbank 432000438Document group: komalley
T
otal count: 107
GrandTotal: 587,696.10
Page: 3
DocuSign Envelope ID: D77BDF57-847F-4598-9AD4-7025C7EC84F0 16 of 181
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Anh Tran, Management Analyst II
SUBJECT: Payroll Acceptance
City Council acceptance of the City payroll distributed June 7, 2024 is recommended.

The Labor Summary report reflecting the total payroll amount of $1,936,592.64 for bi- weekly pay period ending June 2, 2024, by fund is shown below:

Fund Amount
Fund: 001 - GENERAL FUND 1,431,744.75
Fund: 002 - GENERAL FUND RESERVE 3,180.92
Fund: 006 - AMERICAN RESCUE PLAN ACT 53,312.22
Fund: 121 - FEDERAL/STATE GRANTS 7,417.50
Fund: 122 - SOLID WASTE/RECYCLE 2,891.85
Fund: 132 - AGENCY ON AGING 1,881.21
Fund: 137 - DEVELOPER PROJECT CONTRIBUTIONS 8,402.79
Fund: 201 - PARKS AND FACILITIES CAPITAL 208.03
Fund: 203 - STREET IMPROVE. PROJECTS 11,214.80
Fund: 207 - TECHNOLOGY CAPITAL 1,776.23
Fund: 611 - WATER FUND 115,892.77
Fund: 621 - STORMWATER FUND 28,148.32
Fund: 631 - WASTEWATER FUND 99,994.44
Fund: 641 - CITYNET SERVICES FUND 84,252.02
Fund: 701 - CENTRAL GARAGE 15,872.91
Fund: 702 - FACILITY MAINT.FUND 44,295.84
Fund: 707 - TECHNOLOGY DEVELOPMENT 24,697.83
Fund: 711 - SELF INSURANCE 1,408.21
Total: 1,936,592.64
_________________________________
Nick Pegueros, CFO Date
DocuSign Envelope ID: 0E0E118B-CCE4-4456-BCB2-1EEE11F1A13C 6/18/2024
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Item 6c.

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Nick Pegueros, Chief Financial Officer
PREPARED BY: Esther Garibay, Financial Services Manager SUBJECT: Month End Investment Report – May 2024
The table below summarizes the investment portfolio’s total book value by Investment type.

Investment Type Total Book Value
TriCounties Bank $17,553,895
Wells Fargo Bank /Sweep Money Market 23,942,942
CalTrust Liquid Money Market Fund 25,325,586
Local Agency Investment Fund 15,497,823
San Mateo County Pool 28,732,108
Government Agency Investments 98,441,590
Municipal Bonds 27,574,599
Certificate of Deposit 500,000
Money Market Investments 7,172,455
Total Investments $244,740,999
All securities held by the City of San Bruno as of May 2024 are in compliance with the City’s Investment Policy adopted on September 12, 2023.

Respectfully submitted,
__________
Chief Financial Officer Date
DocuSign Envelope ID: 789931A4-C16C-4DF9-816F-B53426287F63 6/13/2024
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Item 6d.

City of San Bruno
567 El Camino Real
San Bruno, CA 94066
Investments
Coupon
Rate CUSIP Book Value Market Value YTM Maturity Date
% of
Portfolio
Short Term Investments
TriCounties Bank Cash Balance 17,553,895 17,553,895 3.96% N/A 7% Wells Fargo General Acct /Sweep Money Market 23,942,942 23,942,942 5.17% N/A 10% Caltrust Liquid Money Market Fund 25,325,586 25,325,586 5.39% N/A 10% Pooled Investments
Local Agency Investment Fund 12,018,907 12,018,907 4.33% NA 5% Glenview Fire Local Agency Investment Fund 3,478,916 3,478,916 4.33% NA 1% Total LAIF 15,497,823 15,497,823 6%
San Mateo County Pool 28,732,108 28,732,108 3.91% 12%
US Bank Portfolio/Securities
Money Market Investments
U.S. Government Money Market 31846V567 7,172,455 7,172,455 5.20% NA 3% Total Money Market Investments 7,172,455 7,172,455
Certificate of Deposit
Morgan Stanley Bank Brokered CD 1.95% 61690UPF1 250,000 245,725 1.84% November 29, 2024 0.10% Morgan Stanley Private Bank Brokered CD 1.90% 61760A3L1 250,000 245,665 1.80% November 29, 2024 0.10% Total Certificate of Deposit 500,000 491,390 0%
Total Short Term Investments 118,724,810 118,716,200
Municipal Bonds
Riverside Community College Non-Callable GO 3.61% 76886PFF5 1,080,380 996,860 0.70% August 1, 2024 0% California St Univ Revenue Txbl Ref Ser B 2.18% 13077DHM7 1,547,193 1,499,267 1.51% November 1, 2024 1% California St Federally Taxable Var 3.38% 13063DGB8 1,105,910 987,726 0.69% April 1, 2025 0% California St Federally Taxable Var 3.38% 13063DGB8 1,466,885 1,310,125 0.65% April 1, 2025 1% University Calif Revs Taxable Gen Bds 0.88% 91412HGE7 1,513,455 1,438,605 0.65% May 15, 2025 1% Los Angeles Calif Comm Coll Dist GOB Unlimited Tax 0.77% 54438CYK2 2,000,000 1,900,820 0.77% August 1, 2025 1% California St Univ Revenue 0.89% 13077DML3 1,459,170 1,410,885 1.64% November 1, 2025 1% California St Taxable Various GOB 2.65% 13063DMA3 1,068,690 956,700 1.07% April 1, 2026 0% Pasadena USD non-callable GOB 2.07% 702282QD9 1,043,920 946,550 1.09% May 1, 2026 0% Los Angeles Unified SD non-callable 1.46% 544547FC9 2,009,340 1,853,940 1.35% July 1, 2026 1% Southern California St Public Pwer Auth 1.26% 842475P82 1,555,751 1,470,909 1.77% July 1, 2026 1% San Jose CA Redev Agy Successor Agy Tax Allocation 3.18% 798170AJ5 1,405,984 1,272,101 1.51% August 1, 2026 1% San Jose CA Redev Agy Successor Agy Tax Allocation 3.18% 798170AJ5 1,223,083 1,106,616 2.09% August 1, 2026 0% Cupertino UHSD Taxable non-callable GOB 2.15% 231237P28 1,057,240 944,300 0.96% August 1, 2026 0% Santa Monica CCD taxable non-callable GOB 1.04% 802385RR7 755,235 692,145 0.90% August 1, 2026 0% Los Angeles Calif Comm Coll Dist GOB Unlimited Tax 1.17% 54438CYL0 998,010 921,640 1.22% August 1, 2026 0% San Dieguito CA Union High Sch Dist 1.86% 797508HF8 987,050 935,510 2.17% August 1, 2026 0% California St Taxable BID non-callable 2.38% 13063DRD2 736,400 660,765 1.28% October 1, 2026 0% California St Taxable BID non-callable 2.38% 13063DRD2 743,022 666,707 1.37% October 1, 2026 0% California St Univ Revenue 1.14% 13077DQE5 949,640 911,070 1.14% November 1, 2026 0% Los Angeles CA Dept of ARPTS ARPT Revenue 1.10% 544445TW9 991,001 1,008,146 3.74% May 15, 2027 0% University Calif Rgts Med Center Poold Rev Taxable Srs M 2.56% 913366JB7 1,877,240 1,871,400 4.68% May 15, 2027 1% Total Municipal Bonds Investments 27,574,599 25,762,787 11%

Page 1 ends

CITY OF SAN BRUNO
Portfolio Summary
May 31, 2024
DocuSign Envelope ID: 789931A4-C16C-4DF9-816F-B53426287F63 19 of 181
City of San Bruno
567 El Camino Real
San Bruno, CA 94066
Investments
Coupon
Rate CUSIP Book Value Market Value YTM Maturity Date
% of
Portfolio
US Treasuries & Agencies
U.S. Treasury Notes 1.75% 9128286Z8 1,536,680 1,495,965 0.77% June 30, 2024 1% U.S. Treasury Notes 0.38% 91282CCL3 1,981,406 1,988,440 0.73% July 15, 2024 1% Federal Home Loan Bank 5.50% 3130AXCK2 2,000,092 1,999,660 5.40% August 12, 2024 1% U.S. Treasury Notes 1.25% 912828YE4 1,013,750 989,990 0.75% August 31, 2024 0% U.S. Treasury Notes 0.38% 91282CCX7 1,991,563 1,972,080 0.52% September 15, 2024 1% Federal Home Loan Bank 5.40% 3130AXMR6 10,000,000 9,991,900 5.40% October 28, 2024 4% Federal Home Loan Bank 5.38% 3130AXMP0 1,999,220 1,998,180 5.42% October 30, 2024 1% U.S. Treasury Notes 1.50% 912828YM6 3,611,016 3,446,310 0.54% October 31, 2024 1% U.S. Treasury Notes 4.38% 91282CFQ9 1,484,121 1,494,045 5.40% October 31, 2024 1% U.S. Treasury Notes 2.25% 912828G38 2,115,000 1,972,780 0.53% November 15, 2024 1% U.S. Treasury Notes 1.75% 912828YY0 2,081,563 1,959,780 0.58% December 31, 2024 1% U.S. Treasury Notes 1.38% 912828Z52 2,055,313 1,949,800 0.60% January 31, 2025 1% U.S. Treasury Notes 1.13% 912828ZC7 2,036,016 1,940,640 0.63% February 28, 2025 1% U.S. Treasury Notes 0.50% 912828ZF0 1,989,219 1,924,760 0.64% March 31, 2025 1% U.S. Treasury Notes 4.25% 91282CHD6 983,633 990,800 5.32% May 31, 2025 0% U.S. Treasury Notes 0.25% 912828ZW3 1,963,750 1,898,800 0.71% June 30, 2025 1% Federal Farm Credit Bank 5.13% 3133ERDY4 2,000,258 1,998,500 5.11% May 9, 2025 1% U.S. Treasury Notes 0.25% 91282CAB7 1,305,746 1,253,265 0.60% July 31, 2025 1% U.S. Treasury Notes 0.25% 91282CAJ0 1,958,750 1,884,220 0.75% August 31, 2025 1% U.S. Treasury Notes 5.00% 91282CHV6 1,990,938 1,997,040 5.25% August 31, 2025 1% U.S. Treasury Notes 0.25% 91282CAM3 1,967,446 1,877,580 0.63% September 30, 2025 1% U.S. Treasury Notes 5.00% 91282CJB8 1,991,953 1,997,740 5.22% September 30, 2025 1% U.S. Treasury Notes 0.26% 91282CAT8 1,465,547 1,403,025 0.76% October 31, 2025 1% Federal Farm Credit Bank 4.88% 3133EPC37 1,295,239 1,297,400 5.07% November 13, 2025 1% U.S. Treasury Notes 0.38% 91282CAZ4 1,962,891 1,867,660 0.78% November 30, 2025 1% U.S. Treasury Notes 0.38% 91282CBC4 1,971,878 1,861,020 0.69% December 31, 2025 1% U.S. Treasury Notes 0.38% 91282CBH3 970,234 927,310 1.10% January 31, 2026 0% U.S. Treasury Notes 1.57% 912828P46 2,075,391 1,891,880 0.84% February 15, 2026 1% U.S. Treasury Notes 0.51% 91282CBQ3 1,966,172 1,852,960 0.85% February 28, 2026 1% U.S. Treasury Notes 0.75% 91282CBT7 1,884,859 1,763,219 0.91% March 31, 2026 1% Federal Farm Credit Bank 4.63% 3133EP7C3 1,986,960 1,989,360 4.98% April 1, 2026 1% U.S. Treasury Notes 0.75% 91282CBW0 1,987,813 1,850,700 0.88% April 30, 2026 1% U.S. Treasury Notes 1.63% 912828R36 1,456,000 1,315,832 0.80% May 15, 2026 1% Federal Home Loan Bank 0.88% 3130AN4T4 1,148,747 1,061,680 0.90% June 12, 2026 0% U.S. Treasury Notes 0.63% 91282CCP4 992,773 914,880 0.77% July 31, 2026 0% U.S. Treasury Notes 0.75% 91282CCW9 1,997,813 1,829,220 0.77% August 31, 2026 1% U.S. Treasury Notes 1.63% 912828YG9 1,034,219 931,410 0.92% September 30, 2026 0% U.S. Treasury Notes (WIT) 0.88% 91282CCZ2 997,227 915,080 0.93% September 30, 2026 0% U.S. Treasury Notes 4.63% 91282CJC6 988,477 996,410 5.04% October 15, 2026 0% U.S. Treasury Notes (WIT) 1.13% 91282CDG3 995,391 917,250 1.22% October 31, 2026 0% U.S. Treasury Notes (WIT) 1.13% 91282CDG3 996,367 918,150 1.20% October 31, 2026 0% U.S. Treasury Notes (WIT) 1.25% 91282CDK4 1,501,684 1,377,660 1.23% November 30, 2026 1% Federal Farm Credit Bank 4.83% 3133EPM28 2,000,000 1,981,540 4.83% December 11, 2026 1% U.S. Treasury Notes 1.25% 91282CDQ1 1,647,422 1,512,390 1.28% December 31, 2026 1% U.S. Treasury Notes 1.25% 912828Z78 1,995,685 1,840,400 1.55% January 31, 2027 1% U.S. Treasury Notes 1.88% 91282CEC1 1,982,500 1,855,540 2.06% February 28, 2027 1% U.S. Treasury Notes 2.50% 91282CEF4 1,475,156 1,414,050 2.86% March 31, 2027 1% Federal Home Loan Mortgage Corp 5.75% 3134H1F32 5,000,000 4,986,650 5.75% April 15, 2027 2% U.S. Treasury Notes 0.50% 912828ZN3 1,326,680 1,331,595 2.86% April 30, 2027 1% Federal Farm Credit Bank 4.63% 3133EPC45 1,294,557 1,302,093 4.72% November 13, 2028 1% Federal Home Loan Bank 4.50% 3130AVBD3 1,986,480 1,992,660 4.65% March 29, 2029 1% Total U.S. Treasuries & Agencies 98,441,590 95,121,299 40% TOTAL PORTOFLIO 244,740,999 239,600,286 3.444% 100%
There is adequate cash flow and maturity of investments to meet the City's needs for the next six months.

Prepared By:

Reviewed By: Page 2
May 31, 2024

CITY OF SAN BRUNO
Portfolio Summary
DocuSign Envelope ID: 789931A4-C16C-4DF9-816F-B53426287F63 20 of 181
Monthly Portfolio Allocation by Investment
Sector ($Millions) May-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 TriCounties Bank Interest Bearing $15.8 $29.4 $16.3 $11.9 $76.1 $68.2 $66.1 $65.8 $67.7 $64.8 $64.8 $67.9 $21.9 $12.2 $9.7 $10.1 $11.5 $22.0 $15.2 $15.7 $13.2 $14.7 $18.8 $17.6 Wells Fargo Bank/Sweep MM - - - - - - - - - - - - $42.0 $42.2 $24.4 $25.4 $22.7 $23.9 $22.9 $23.9 $20.9 $22.1 $27.7 $23.9 CalTrust Liquid MM Fund - - - - - - - - - - - - - - - - - - $2.0 $2.0 $12.1 $22.1 $22.2 $25.3 Local Agency Investment Fund 26.9 21.9 26.0 26.0 21.0 33.0 33.1 33.2 33.2 33.2 33.2 33.4 33.4 33.7 51.5 44.5 44.8 29.8 29.8 30.2 30.2 15.2 15.5 15.5 San Mateo County Pool 25.6 23.0 26.9 27.2 24.4 25.0 33.7 35.8 36.1 36.7 36.7 43.2 43.6 38.6 40.4 40.7 36.6 37.2 45.2 47.7 41.9 36.8 32.7 28.7 Government Agency/Treasury Bonds 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 74.4 94.3 95.9 97.9 92.5 90.5 88.6 95.9 98.4 Municipal Bond Investments 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 27.3 25.7 25.7 25.7 25.7 27.6 27.6 27.6 US Treasury Bills 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Certificates of Deposit 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 US Bank - Money Market 0.0 0.0 0.2 0.3 0.1 0.2 0.2 0.3 0.5 0.6 0.6 0.9 0.9 6.4 6.6 6.6 5.9 6.1 4.2 9.8 12.1 17.2 5.4 7.2 Total $170.5 $176.5 $171.6 $167.5 $223.8 $228.6 $235.3 $237.3 $239.7 $237.5 $237.5 $247.6 $244.0 $235.3 $234.8 $229.5 $243.6 $241.1 $243.4 $248.0 $247.0 $244.7 $246.3 $244.7 Average Rate of Return 0.87% 0.92% 1.03% 1.10% 0.82% 0.95% 1.07% 1.16% 1.18% 1.26% 1.36% 1.38% 2.28% 2.54% 2.44% 2.44% 2.70% 2.97% 3.04% 3.18% 3.19% 3.33% 3.40% 3.44% May 31, 2024
Portfolio Summary Metrics

CITY OF SAN BRUNO
$0
$50
$100
Monthly Portfolio
Allocation by Investment
Sector ($Millions)
San Mateo County Pool
Government Agency/Treasury Bonds
US Treasury Bills
Certificates of Deposit
US Bank - Money Market
TriCounties Bank Interest Bearing
Wells Fargo Bank/Sweep MM
CalTrust Liquid MM Fund
Local Agency Investment Fund
Municipal Bond Investments 0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%
May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Investment Portfolio - Average Rate of Return
DocuSign Envelope ID: 789931A4-C16C-4DF9-816F-B53426287F63 21 of 181
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Peter Gilli, Community Development Director SUBJECT: Consider Adoption of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Amending the Zoning Map for a Portion of 300 Piedmont Avenue to Change the Zoning from Single-Family Residential District to Open Space and Conservation District, Pursuant to Section 12.136.040 of the San Bruno Municipal Code for the Proposed Development of the Crestmoor Project at 300 Piedmont Avenue (APN:
019-170-020) (ZC24-001)”
BACKGROUND:

At the May 28, 2024 City Council Meeting, the City Council, by a 4-0 vote, introduced, read by title only and waived further reading of an ordinance amending the Zoning Map for 300 Piedmont Avenue, to change the zoning for a portion of the site that will be dedicated to the City for recreational uses. At the same meeting, Council voted 4-0 to certify an environmental impact report for the project.

DISCUSSION:

The purpose of this consent calendar item is to finalize adoption of an ordinance that would change the Zoning Map for a 6.91 acre portion of 300 Piedmont Avenue that is proposed for dedication to the city. The acreage would rezoned from R-1 District (Single-Family Residential) to O District (Open Space and Conservation). The change in zoning coincides with the change in General Plan land use designation from Low-Density Residential to Open Space which is specified in the settlement agreement between the City and the San Mateo Union High School District, and approved by Council on May 28, 2024, along with the project entitlements.

The purpose of the O District is to preserve open space uses and provide recreational uses for the general community, including public and private parks. This zoning is appropriate for the dedicated acreage of the site if it is to become an improved recreational facility in the future.

FISCAL IMPACT:

There is no fiscal impact for the rezoning but the City has developed a master plan for recreational fields on the dedicated property which would require funding to implement. 22 of 181
Item 6e.

Honorable Mayor and Members of the City Council
June 25, 2024

Page 2 of 2 ends

ENVIRONMENTAL IMPACT:

The proposed rezoning was analyzed in the Environmental Impact Report (EIR) that was prepared for the 300 Piedmont Avenue project. On May 28, Council certified the EIR and adopted a statement of overriding considerations and a mitigation monitoring and reporting program.

RECOMMENDATION:

Adopt an Ordinance amending the Zoning Map for the property at 300 Piedmont Avenue.

ALTERNATIVES:

1. Do not adopt the Ordinance.

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

ATTACHMENTS:

1. Ordinance
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ORDINANCE NO. ______
A

N ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO AMENDING THE ZONING MAP FOR A PORTION OF 300 PIEDMONT AVENUE TO CHANGE THE ZONING

FROM SINGLE-FAMILY RESIDENTIAL DISTRICT TO OPEN SPACE AND CONSERVATION DISTRICT, PURSUANT TO SECTION 12.136.040 OF THE SAN BRUNO

MUNICIPAL CODE FOR THE PROPOSED DEVELOPMENT OF THE CRESTMOOR PROJECT AT 300 PIEDMONT AVENUE
(APN: 019-170-020) (ZC24-001)
W
HEREAS, the San Mateo Union High School District ("District") is the owner of that certain 40.2 acre site located at 300 Piedmont Avenue in the City of San Bruno, commonly known as the site of the former Crestmoor High School, and more particularly described as Assessor's Parcel Number 019-170-020 (the "Property"), and SummerHill Homes LLC ("Applicant) is the applicant for the development of the Property; and W
HEREAS, the District desires to sell the Property and has entered into a purchase and sale agreement with Applicant, who desires to develop a residential subdivision with 155 new single family homes with associated roadways and infrastructure on the Property (collectively, the "Residential Project"), and;
W
HEREAS, in order to develop the Residential Project, Applicant has submitted an application to the City of San Bruno for approval of the following: (1) a Vesting Tentative Tract Map (TM22-001); (2) a Planned Unit Permit (PUP22-001); (3) an Architectural Review Permit (AR22-006); (4) a Tree Removal Permit; (5) a Density Bonus request; and (6) an Affordable Housing Plan; and
W
HEREAS, Policy OSR-8 of the City's General Plan provides that, “During reuse of the former Crestmoor High School site (designated for single-family residential development), preserve the existing playing fields for recreational use per direction of the General Plan Update Committee,” and for many years, the playing fields on the Property were leased by the City of San Bruno and open to the public for use and were maintained and managed by the City of San Bruno pursuant to the lease; and;
WHEREAS, in order to address the City’s goal of maintaining playing fields on the site, the Applicant is dedicating a portion of the property to the City of San Bruno for recreational open space, and;
WHEREAS, on November 18, 2022, San Bruno entered into a Settlement, Release, and Tolling Agreement Extension (“Agreement”) with the District which included, among other terms, that the San Bruno City Council initiate a General Plan Amendment to modify provisions contained in the General Plan regarding the preservation of open space and playing fields at the Property, including but not limited to Policy OSR-8; and WHEREAS, on December 13, 2022, the San Bruno City Council, on its own action, initiated the General Plan Amendment to modify provisions in the Open Space and Recreation Element of the General Plan, change the General Plan Land Use Diagram designation for an approximately 5.3 acre portion of the Property to Parks/Open Space, and make other conforming amendments pursuant to the terms of the Agreement to be processed concurrently with the City’s review of the Project; and
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ATTACHMENT 1

WHEREAS, to achieve consistency between the General Plan Amendments and the zoning for the site, the zoning district must be changed from R -1 (Single-Family Residential) District to O (Open Space and Conservation) District; and

WHEREAS, on May 7, 2024, the Planning Commission held a public hearing to consider the above-described amendment to the Zoning Map and adopted Resolution 2024-05 recommending that the City Council approve the rezoning for the subject property; and

WHEREAS, on May 28, 2024, prior to adoption of this Ordinance, the City Council adopted a resolution certifying a final environmental impact report dated April 2024, and adopted CEQA findings and facts, a statement of overriding considerations, and a Mitigation Monitoring Reporting Program for the Residential Project and the City Council initiated General Plan and Zoning Map Amendments; and

WHEREAS, a Notice of Public Hearing was mailed to properties within a 1,000 foot radius of the project site on May 17, 2024, and duly posted in the San Mateo Daily Journal on Saturday, May 18, 2024; and

WHEREAS, on May 28, 2024, the City Council held a Public Hearing on the Residential Project and General Plan and Zoning Map Amendments and on said date, the Public Hearing was opened, held and closed.

NOW THEREFORE, the City Council of the City of San Bruno ORDAINS as follows:

1. In accordance with San Bruno Municipal Code Section 12.136.030, the City Council hereby finds that the Municipal Code amendment is in general conformance with the General Plan because it would preserve open space for residents on a former school site, advancing policy OSR-4. The rezoning is also consistent with public necessity, convenience and general welfare because it would preserve in perpetuity existing open space which has been actively used by the community since 1987.

2. The San Bruno City Council hereby amends the Zoning Map, as described in San Bruno Municipal Code Chapter 12.130, to change the zoning district for the dedicated portion of APN: 019-170-020 from Single-Family Residential (R-1) to Open Space (O), as shown in Exhibit A.

3. Severability. The City Council hereby declares every section, paragraph, sentence, cause and phrase is severable. If any section, paragraph, sentence, clause or phrase of this ordinance is for any reason found to be invalid or unconstitutional, such invalidity, or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentences, clauses or phrases.

4. Effective Date. This Ordinance shall be in full force and effective 30 days after its adoption and shall be posted as required by law.

Exhibit A: Proposed Amendment to Zoning Map

__________________________________
Rico E. Medina, Mayor

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ATTEST:

_________________________________
Lupita Huerta, City Clerk APPROVED AS TO FORM:

_____________________________
Trisha A. Ortiz, City Attorney
Richards Watson Gershon Law

-o0o-
I hereby certify that the foregoing Ordinance No. ____
was introduced at a regular meeting of the San Bruno City Council on May 28, 2024 and adopted by the San Bruno City Council at a regular meeting on June 25, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

_____________________________
Lupita Huerta, City Clerk

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Proposed Zoning Map amendment to change the zoning of the dedicated por�on of the property from R-1 (Single-Family Residen�al) District to O (Open Space) District.

27 of 181

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Ashley Crociani, Management Analyst
SUBJECT: Consider Adoption of a Resolution Approving the Fiscal Year 2024-25 San Bruno Community Foundation Operating Budget
BACKGROUND:

The San Bruno Community Foundation (SBCF) is the Not-for-Profit organization created by the San Bruno City Council to invest, manage and expend the restitution settlement of $70 million in cash and real property that the City of San Bruno received from PG&E after the natural gas pipeline explosion in San Bruno’s Crestmoor neighborhood.

Under Article XVI (section c) of the Foundation’s Bylaws, San Bruno City Council’s approval of the Foundation’s annual budget is required.

The Board of Directors of the SBCF adopted Resolution No. 2024-303 approving the Fiscal Year (FY) 2024-25 Budget on June 5, 2024 and directed the Executive Director to submit the budget to the City Council for consideration and approval.

At the City Council meeting on June 11, 2024, a detailed report was provided. The SBCF Executive Director presented a summary on the progress of the Foundation’s program strategy framework and provided a detailed summary of the FY 2024-25 budget, expenses, and needs.

DISCUSSION:

This consent calendar agenda item serves for City Council consideration of the adoption of a Resolution Approving the Fiscal Year 2024-25 San Bruno Community Foundation Operating Budget. The SBCF Memorandum Regarding “SBCF Budget and Transfers from the Quasi- Endowment and Strategic Pool to the Liquidity Pool for Fiscal Year 2024-2025” dated May 31, 2024 (Attachment #2) describes all of the line items in the Foundation budget including:

1. Foundation’s Overall Financial Picture

2. Foundation’s Budgeting Principles

3. Foundation’s Fiscal Year 2024-25 Expenses

4. Foundation’s Fiscal Year 2024-25 Funds Available for Operations FISCAL IMPACT:

There is no fiscal impact from adoption of a Resolution approving the Fiscal Year 2024-25 San 28 of 181
Item 6f.

Honorable Mayor and Members of the City Council
June 25, 2024

Page 2 of 2 ends

6 1
5 Bruno Community Foundation Operating Budget as this does not affect the City’s Operating Budget.

ENVIRONMENTAL IMPACT:

There is no 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 Approving the Fiscal Year 2024-25 San Bruno Community Foundation Operating Budget.

ALTERNATIVES:

Provide direction to the SBCF regarding the budget line items; revisions to the budget will require re-introduction at a future meeting.

ATTACHMENTS:

1. Resolution

2. San Bruno Community Foundation Memorandum Regarding “SBCF Budget and Transfers from the Quasi-Endowment and Strategic Pool to the Liquidity Pool for Fiscal Year 2024-2025” and Resolution No. 2024-303
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2 4
8 7
RESOLUTION NO. 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO APPROVING THE FISCAL YEAR 2024-25 SAN BRUNO COMMUNITY

FOUNDATION OPERATING BUDGET
WHEREAS, on March 12, 2012, the City entered into a Settlement Agreement with PG&E whereby PG&E would pay the City $70 million in cash and real property to resolve claims arising out of the September 9, 2011, gas pipeline explosion in the Glenview/Crestmoor neighborhood; and
WHEREAS, the Settlement Agreement calls for the creation of a not-for-profit to manage, invest, and expend the restitution settlement funds to benefit the City and its residents; and
WHEREAS, on March 12, 2013, the City Council adopted Resolution 2013-26 authorizing the filing of the Articles of Incorporation for the newly-created San Bruno Community Foundation (Foundation) to effectuate the purposes of the Settlement Agreement; and
WHEREAS, Under Article XVI (section c) of the Foundation Bylaws, San Bruno City Council’s approval of the Foundation’s annual Budget is required; and WHEREAS, on June 5, 2024, the Foundation Board of Directors, which was appointed by the City Council, reviewed and discussed the proposed Fiscal Year 2024-25 Budget (Budget), and adopted Resolution No. 2024-303 approving the Budget on June 5, 2024. The Resolution directs the Foundation Executive Director to submit the Budget to the City Council for Consideration and Approval;
WHEREAS, on June 11, 2023, a detailed report on the Budget was provided to the City Council.

NOW, THEREFORE, BE IT RESOLVED THAT the San Bruno City Council hereby approves the San Bruno Community Foundation Fiscal Year 2024-25 Budget. ---oOo---
I hereby certify that foregoing Resolution No. 2024 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on June 25, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

Lupita Huerta, City Clerk
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ATTACHMENT 1
Memorandum
Pa ge 1 of 12
DAT
E: May 31, 2024
TO: B
oard of Directors, San Bruno Community Foundation
FR
OM: Leslie Hatamiya, Executive Director
SUBJ
ECT: SBCF Budget and Transfers from the Quasi-Endowment and Strategic Pool to the Liquidity Pool for Fiscal Year 2024-2025
Unde
r our Bylaws, the Foundation’s fiscal year runs from July 1 to June 30, and its annual budget must be approved by the San Bruno City Council. As we approach the end of the 2023- 2024 fiscal year, I will present the 2024-2025 budget to the Board for approval at the June 5, 2024, Board meeting. If the Board approves the budget, I will present it to the City Council at its regular meeting on June 11, 2024, and the City Council will take formal action of approval at its regular meeting on June 25, 2024.

1. SB
CF’s Overall Financial Picture
Be
fore I provide a detailed account of the FY2024-2025 budget, I think it is instructive to review the overall financial health of the organization. The following chart provides a high-level picture of the Foundation’s overall financial history and health and includes both the investment portfolio managed by Sand Hill Global Advisors, LLC, as well as other funds (including initial funds received from the restitution funds to support the Foundation’s operations in 2015-2016 prior to establishing the investment accounts as well as donations received):

SBCF Financial Snapshot (rounded)
Total Initial Assets $70.5 million
Investment Gains Through 4/30/2024 +$19.1 million
Donations and Other Income Through 4/30/2024 +$1.9 million Total Funds Disbursed Through 4/30/2024 -$60.3 million
Portfolio Value as of 4/30/2024 $31.2 million
To
tal initial assets include the $69.8 million that was transferred to our Fidelity investment accounts in 2016 as well as about $700,000 in cash that the City had previously transferred to the Foundation to cover our expenses from inception through June 2016. Investment gains are those made by the investment portfolio (the funds managed by Sand Hill). Donations and other income have flowed through our operating accounts but are not reflected in our investment 31 of 181
ATTACHMENT 2

Memorandum

Page 2 of 12 ends

portfolio. Total funds disbursed include RAC grant payments ($49.3 million), Community Grant payments, Crestmoor Scholarship payments, and other strategic grant payments disbursed thus far, as well as operating expenses paid out since the Foundation’s creation in late 2013.

Although we remain in a period of some market volatility, the Foundation’s overall financial health remains strong. As of April 30, 2024, the Foundation’s total assets were $31,186,035, with total liabilities of $2,913,906 and net assets of $28,272,129.

It is also instructive to review this budget in the context of the Board’s strategic planning deliberations. At this time last year, we expected construction of the new Recreation and Aquatic Center (RAC) to be completed by now, with all grant payments related to the RAC project to be fully disbursed to the City of San Bruno. We also expected the Board, through a strategic planning process, to be finalizing the Foundation’s post-RAC program and investment strategies by now, which potentially would have altered the development of the FY2024-2025 budget. But, as you know, RAC construction has yet to be completed and there remain more than $2.2 million in RAC grant payments to disburse. In addition, the Board’s strategic planning process is currently on pause, as the Board waits for the City of San Bruno and the San Bruno Park School District to make decisions about potential capital projects in which the Foundation might be interested in investing. Those decisions may depend on the results of revenue measures being considered for the November 2024 ballot. As a result, I have constructed the FY2024-2025 budget following the same strategy and process as previous years’ budgets. The budget assumes that the Foundation will continue to offer the Crestmoor Scholarship and Community Grants Fund programs, funded by payout from the Quasi-Endowment, as well as continue to consider some small and medium-sized strategic grants, which, along with all operating expenses, will be funded by payout from the Strategic Pool. We are hopeful that the Board will complete its strategic planning process for the post-RAC era by the end of FY2024- 2025, and thus, the FY2025-2026 budget would reflect any adjustments to the Foundation’s program and investment strategies.

2. Budgeting Principles

In developing this budget, I am guided by the principles of transparency and economy. As prudent stewards of the restitution funds, we want to communicate our decisions and activities with the community and have accordingly provided ample budget to do so. At the same time, we will be cost-conscious in all categories of expenses.

As I remind the Board each year, ours is not a typical nonprofit budget, where the goal is for expenses to equal revenues. Most nonprofit budgets are income-driven because the nonprofit is able to spend only the funds it expects to bring in that year. In contrast, as a result of our investment portfolio, the Foundation’s budget is expense-driven. Our budgeted “income”

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consists primarily of transfers from our assets (Quasi-Endowment and Strategic Pool) to our operating budget to cover our cash needs during the fiscal year, along with a relatively small cohort of donations and interest income earned on our operating funds. We do not seek – and typically do not achieve – a “balanced budget,” as our cash needs do not necessarily match our recorded expenses in a given year. This is because we record grant and scholarship commitments as expenses at the time agreements are executed and scholarships awarded, but grant and scholarship payments are often made in a later fiscal year. As a result, the fact that in the FY2024-2025 budget expenses ($3,444,339) slightly exceed funds available for operations ($3,382,370) should not be a cause for concern. The calculations of our expenses and funds available for operations should be analyzed separately, as they are based on different factors and needs.

3. FY2024-2025 Expenses

We have three main categories of expenses: Direct Program Expenses (Crestmoor Scholarships, Community Grants Fund, Strategic Grants, and Other Grants), Personnel Expenses, and Non- Personnel Support Costs. As previously mentioned, grant and scholarship commitments are recorded as expenses at the time grant agreements are executed and scholarships are awarded (but not necessarily paid out). We are currently projecting expenses of $3,444,339.

a. Direct Program Expenses

• Crestmoor Scholarships: This line is set at $165,000, which is a $45,000 increase from the $120,000 awarded in 2017, 2018, and 2019. In 2020 and 2022, we awarded $190,000 in scholarships based on a $70,000 restricted donation from the Joseph W Welch Jr Foundation (in 2022, we also received a $1,000 restricted donation from an individual donor). In 2021, we awarded $195,000 in scholarships based on another $70,000 donation from the Welch Foundation, a $7,349 donation from the San Mateo County Association of REALTORS® Foundation, and a $1,000 donation from an individual donor. In 2023 and 2024, we received only modest donations each year ($1,500) from an individual donor and therefore awarded the budgeted amount of $160,000. At this time, we do not anticipate any donations earmarked for the Crestmoor Scholarship in fiscal year 2024-2025.

In November 2019 (prior to the first Welch donation), the Board approved an increase in scholarship awards to $160,000 based on a recommendation from the Ad Hoc Committee on Crestmoor Scholarship. This year, based on the applicant pool and deliberations by the Crestmoor Scholarship Selection Panel, I am recommending that we increase the total budgeted amount by $5,000 to $165,000. At this level, the Foundation will likely award a total of 11 scholarships in 2025: six high school to

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Memorandum

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four-year college, one high school to community college, and four community college to four-year college. In 2024, the Panel had the difficult dilemma of whether to award zero high school to community college scholarships in favor of four scholarships in the community college to four-year college category, which had a much more robust applicant pool. The $5,000 increase would enable the Panel in 2025 to maintain the same number of scholarships in the high school to four-year and community college to four-year categories, both of which receive a large number of applications, while also awarding one scholarship in the high school to community college category, which tends to have a relatively small applicant pool.

• Community Grants Fund: This line is set at $300,000, reflecting $200,000 of the Foundation’s funds and a $100,000 donation from a community partner. This level of funding is consistent with the total amount of grants awarded the past seven years of the program, with donations from Google.org/YouTube.

• Strategic Grants: This line is budgeted at $2,500,000 as a placeholder. These funds could be used to fund one or more strategic grants that the Board chooses to fund in 2024-2025 and gives the Board the flexibility to consider strategic grantmaking opportunities that may arise.

The $2,500,000 placeholder would enable the Board to consider the City’s request for startup funding for RAC programming, which the City will introduce at the June 5 Board meeting. It also allows the Board to consider several other smaller strategic grants, such as for Community Day 2025, the Narita Sister City Exchange Program, school athletic field improvements, and other programs supporting the public schools. With the Foundation set to disburse all remaining RAC grant payments in next fiscal year, the Board will be revisiting its post-RAC strategy. Fiscal year 2024- 2025 will likely serve as a ”re-set” year, as the Board continues to thoughtfully consider its strategies and priorities once the RAC project – the Foundation’s most significant legacy project – is completed. The $2,500,000 placeholder allows the Foundation to make some meaningful small-to-medium-sized strategic investments, while also identifying potential major initiatives in the coming years.

As a reminder, all strategic grants require specific Board approval, not just inclusion in the budget. Decisions on specific strategic grants will take place as proposals are vetted during the course of the year.

• Other Grants: Each year we budget $10,000 for our Off-Cycle Small Grants process.

This process is used to consider funding requests from organizations that: (a) seek

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funding for programs or projects that benefit the San Bruno community in a particularly meaningful and significant way and fall within one of the Foundation’s focus areas; (b) do not exceed $10,000; (c) cannot be reasonably considered during the next Community Grants Fund application schedule due to timing requirements; and (d) meet the organization and activity eligibility requirements of the Community Grants Fund.

b. Direct Personnel Expenses

• Salaries & Wages: This line reflects the Executive Director’s current salary and the Program Manager’s anticipated wages for the fiscal year. The Program Manager position (increased from 0.3 FTE, which was based on the previous Program Manager’s hours, to 0.375 FTE to more accurately reflect the current Program Manager’s present workload as the position has evolved over the past three years, non-exempt) is paid hourly based on actual hours worked, and the budgeted amount is an estimate for the fiscal year. Actual hours worked and therefore actual salary/wages may be slightly different than the budgeted amount.

• Payroll Taxes & Benefits: This line reflects payroll taxes, workers compensation insurance premiums, and employee benefits for the fiscal year. Benefits include retirement plan contributions, life insurance, and personal time off.

Total Personnel Expenses are budgeted to increase 2.58% ($6,905) from the projected level for 2023-2024, due to a mid-year cost-of-living increase for both staff members in the current fiscal year and an anticipated cost-of-living increase for the Program Manager in 2024-2025.

c. Non-Personnel Support Costs

• Occupancy: This line estimates the total rent for 2024-2025. It reflects actual rent for July 2024 through March 2025 under the current office lease, which concludes on March 31, 2025. Monthly rent will be $1,456 from July through December 2024, and $1,471 for January through March 2025. We have not yet begun lease extension discussions with the landlord, and for April through June 2025, I have budgeted a 10% increase to allow for a potential rent increase.

• Insurance: This line is based on the Foundation’s current commercial general liability, property, auto, cyber, and directors and officers liability insurance policies ($12,856), which have an annual renewal date of March 21. It also includes the

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Foundation’s crime insurance policy ($3,237), which has a renewal date of May 27. I have added an extra $1,000 in case we experience any premium increases upon renewal in 2025.

• Telecommunications: This line includes continuation of cell phone expenses for the Executive Director and Program Manager ($1,080), broadband Internet access for the office, and the office landline ($1,060 for Internet and landline through San Bruno CityNet Services combined). This line also includes telecommunications expenses for the Program Manager, who works from home ($270).

• Postage & Shipping: This line includes office postage ($1,020) as well as the projected postage required for the fall Annual Report mailing (nonprofit rate) to all San Bruno addresses ($1,900).

• Marketing & Communications: This line covers the projected printing costs associated with the Annual Report ($12,000). It also includes funds for graphic design services ($1,500), flyer/poster printing for the Community Grants Fund ($800), flyer/poster printing for the Crestmoor Scholarships ($1,000), website and e- newsletter costs ($275), holiday cards ($275), and costs associated with online grant and scholarship applications ($2,071).

• Office Supplies and Equipment: This line includes $175 monthly for office supplies and $1,000 for computer backup and other software fees and miscellaneous office equipment expenses (such as repairing the printer, which has seen considerable wear and tear over the past nine years). It also includes $3,000 for a new laptop and related software for the Executive Director. The current laptop is nearly five years old, and while it is working properly now, by the end of the next fiscal year it may be time to invest in a new laptop if the current laptop begins to falter. The projected useful life for business computer equipment is typically three years.

• Legal Fees: This line includes $10,800 for our outside nonprofit counsel, NEO Law Group (budgeted at two hours per month), and $33,480 for our outside municipal law counsel, Shute, Mihaly & Weinberger, LLP (budgeted at nine hours per month).

For both outside firms, I bolstered their budget allotments due to the fact that we may seek guidance from them as the Board considers the Foundation’s post-RAC strategy over the next year. In general, we typically come in well under budget on this line, but I like to include a cushion in the event that any unexpected issues requiring legal assistance arise.

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• Accounting & Payroll Fees: Payroll fees ($1,152) are based on the current arrangement with our payroll vendor (Intuit QuickBooks). For audit and tax preparation services, $11,300 is budgeted, per the Foundation’s contract with Novogradac & Company. In addition to $645 for QuickBooks accounting software, $23,760 is included for the accounting consultant/full charge bookkeeper, per the terms of our professional services agreement with him.

• Other Consultants: This line includes $10,382 for the IT consultant (based on current usage and the terms of our professional services agreement). I have also included a placeholder of $20,000 for other consultants – for additional diversity, equity, and inclusion (DEI) activities and in the event that the Board seeks consulting assistance for its strategic planning activities as it considers the Foundation’s post-RAC strategy.

• Travel, Meetings & Conferences: Now that the Foundation has resumed in-person meetings and gatherings (with a hybrid component for Board meetings), the Foundation is experiencing higher meeting costs compared with the last several fiscal years. This line includes the expenses for 12 Board meetings, although it is possible that several monthly meetings will be canceled due to lack of pressing business. It also assumes that the Board as well as the Investment and Audit committees will move their meetings to the new Recreation and Aquatic Center, where facility use-related fees will be higher than what we are currently incurring to hold meetings at the Senior Center and City Hall, starting no earlier than September.

I have generously budgeted for these expenses, as there are some uncertainties regarding exact costs until the new facility opens, and it is very possible that actual expenses will come in under budget for the year. The line includes $250 for building attendant fees at the Senior Center, $11,500 for room rentals at the RAC, and $2,000 for City of San Bruno IT staff to provide technical support for the hybrid Board meetings. This line also includes $720 for two Zoom Pro subscriptions and one Zoom webinar subscription, $200 for meeting-related refreshments (including an in-person scholarship reception), and $500 for miscellaneous conference, training, and meeting expenses. Unlike the FY2023-2024 budget, we have not budgeted for a Board member to travel to Japan as part of San Bruno’s sister city relationship with Narita in FY2024-2025.

• Miscellaneous: This line includes various expenses that may arise and do not fit in any of the other cost categories. It typically covers professional organization membership fees (such as Thrive: Alliance of Nonprofits and the California Association of Nonprofits), bank fees, online news subscriptions, Board and partner recognition, and government/agency taxes and fees.

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Total Non-Personnel Support Costs are budgeted to increase $51,154 from the 2023- 2024 year-end projection (but note that they are a $858 decrease from the 2023- 2024 budgeted amounts). This is due to a combination of (a) budgeting based on contract ceilings and providing flexibility for unanticipated expenses, and (b) several new expenses (e.g., increased meeting costs if the Board and Investment and Audit committees move their meetings to the RAC). Budgeted amounts operate as ceilings, and I am very cost-conscious in all purchasing decisions, so that actual costs frequently turn out to be lower than the budget projections. Please note that in the current fiscal year (2023-2024), actual Non-Personnel Support Costs are projected to be 26.6% ($52,012) lower than the budgeted amount.

The biggest changes in Non-Personnel Support Costs are: (a) a $2,994 increase for Marketing & Communications, which reflects a healthy cushion in the face of escalating printing costs over the past several years; (b) a $2,318 increase in Office Supplies & Equipment in case the Executive Director’s five-year-old laptop needs replacing; (c) a $10,324 increase in Legal Fees due to the potential need for additional legal guidance as the Board considers the Foundation’s post-RAC strategy; (d) a $4,776 increase in Accounting & Payroll Fees due to a slight increase in the cost of our contract with the auditing firm and budgeting the accounting consultant based on his contract ceiling; (e) a $20,919 increase in Other Consultants to provide flexibility if there is a need to engage with DEI and other consultants related to the Board’s strategic planning process; and (f) an increase of $9,456 in Travel, Meetings & Conferences, reflecting the potential change in meeting location to the RAC.

Insurance costs are projected to decrease by $1,342 due to switching carriers for the directors and officers liability insurance policy, which led to a decrease in premium for the current term.

4. FY2024-2025 Funds Available for Operations

As mentioned above, this is not a balanced budget, where income equals expenses. Instead, the Funds Available for Operations are determined by analyzing the Foundation’s cash needs for the fiscal year. Our assumption is that all Personnel Expenses and Non-Personnel Support Costs will be paid out during the fiscal year ($469,339). Projected cash needs for Program Disbursements (total of $4,299,494) are as follows:

Crestmoor Scholarship
2021 Scholars $5,000
2022 Scholars $35,000
2023 Scholars $30,000

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2024 Scholars $50,000
2025 Scholars $52,500
Total Crestmoor Scholarship $172,500

Community Grants Fund
Grants to be awarded in December 2024 $300,000
Total Community Grants Fund $300,000

Strategic Grants
RAC Grants $589,501
Centennial Plaza Improvement Project Grant $377,493
Downtown Beautification Project Grant $350,000
Centennial Plaza Improvement Project $500,000
Other miscellaneous strategic grants – to be determined $2,500,000 Total Strategic Grants $3,816,994

Other Grants
Out-of-Cycle Responsive Grants $10,000
Total Other Grants $10,000

Total cash needs for 2024-2025 are estimated at $4,768,832. This figure, after adjustment for the residual 2023-2024 cash balance, drives the Foundation’s Funds Available for Operations in 2024-2025.

We have two categories of Funds Available for Operations: Operating Income and Transfers from Investments.

a. Operating Income

At this time, projected Operating Income is zero ($0):

• Interest Income: We have decided to zero out this line this year. In the past, this line included estimated investment income from the Fidelity Liquidity Pool account and interest earned on the Wells Fargo bank accounts. The Foundation closed its Wells Fargo savings account in 2021, and the Foundation’s two other Wells Fargo accounts (checking and payroll) are non-interest-bearing. The Liquidity Pool account balance is likely to be substantially lower in FY2024-2025 with all but about $590,000 in RAC grant payments expected to be paid out by the end of the current fiscal year.

Moreover, our auditors treat income from the Liquidity Pool as investment income rather than interest income, so this change is consistent with their treatment of

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income from the Liquidity Pool. It is worth noting that in the context of the full budget, Interest Income has always represented a very miniscule portion of the Funds Available for Operations (for example, for FY2023-2024, it is projected at only

1.25% of the Funds Available for Operations).

• Restricted Donations: There are no firm commitments for donations earmarked to specific programs, but we may receive such restricted donations during the year.

b. Transfers from Investments

The Foundation’s available funds come primarily from transfers from the Quasi-Endowment and the Strategic Pool. The question in developing this budget is what portion of the needed funds comes from each pool. In answering this question, it is important to think back to the original purpose of each pool of funds. In responding to the results of the Community Listening Campaign, the Board decided to designate about $55 million of the restitution funds to establish the Strategic Pool to be spent outright on strategic initiatives, including at least one major community facility project (which ultimately turned out to be the RAC).

The Liquidity Pool was created to serve as a holding account for expenditures planned in the subsequent 0-24 months. Its purpose is to mirror the Foundation’s operating accounts, and it may be funded by both the Quasi-Endowment and the Strategic Pool. The investment goal for the Liquidity Pool is to preserve the principal balance of all funds directed into this pool, and as such, capital preservation and liquidity are the primary objectives.

The Board also created the Quasi-Endowment with $15 million of the restitution funds. The idea behind the Quasi-Endowment has been to follow a long-term endowment investment strategy, so that only a portion of the investment income would be used for operations, and that once the Strategic Pool had been depleted, a scaled-back version of the Foundation could continue to operate – possibly in perpetuity – funding the Crestmoor Scholarships, the Community Grants Fund, and potentially some smaller strategic projects on an ongoing basis.

In creating the Investment Operating Plan in 2016, the Board decided not to take any Quasi- Endowment payout in the first year of possessing the restitution funds (2016-2017) to enable the Quasi-Endowment to grow. Since then, the Board has approved the annual payout rate to cover the year’s cash needs for the Crestmoor Scholarship and Community Grants Fund, as follows:

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Fiscal Year QE Payout Rate
Average QE Balance of Past
12 Quarters Approved QE Payout
FY2017-2018 2.25% $15,685,369 $352,921
FY2018-2019 1.95% $16,409,212 $319,980
FY2019-2020 1.90% $16,711,034 $317,510
FY2020-2021 1.70% $17,392,997 $295,681
FY2021-2022 1.70% $18,407,790 $312,932
FY2022-2023 1.41% $20,279,185 $285,937
FY2023-2024 1.78% $20,946,234 $372,843

Consistent with the vision behind the Quasi-Endowment, the approved payout rates have been well below the maximum of 7% set out in the Investment Operating Plan and have allowed the Quasi-Endowment to continue to grow (Quasi-Endowment balance was $22,482,164 as of April 30, 2024), while the Foundation still has funds in the Strategic Pool to cover other expenses.

Residual cash on hand as of June 30, 2024, is projected to be $1,486,734. Of the residual cash on hand, $120,553 is earmarked for Community Grants and Crestmoor Scholarships (rollover of expected donation for Community Grants, several deferred scholarship payments, and payout overage resulting from the fact that payout rate is expressed as a percentage and not as a precise dollar amount). Of the remaining amount, up to $589,501 is earmarked for all remaining RAC grant payments, and at this time we expect to complete paying out the full $51.5 million committed to the project. As a result, of the projected June 30 cash on hand, the remaining $776,680 is designated for non-RAC Strategic Grants and operating expenses.

• Quasi-Endowment Payout: The cash flow needs of the Crestmoor Scholarships and Community Grants Fund are expected to be $472,500 for fiscal year 2024-2025. As mentioned above, $120,553 of the cash on hand at the end of fiscal year 2023-2024 will go toward meeting these cash needs, leaving a balance of $351,947 to be funded by new Quasi-Endowment payout. At the June 5 meeting, the Board will consider a recommendation from the Investment Committee to set the fiscal year 2024-2025 payout rate for the Quasi-Endowment at 1.64%, which would cover the balance of the cash flow needs of the Crestmoor Scholarships and Community Grants Fund. The payout amount is determined by multiplying the average of latest available 12 prior quarter-ending Quasi-Endowment values ($21,476,720, covering Q2 2021 through Q1 2024). The 1.64% payout rate thus results in a payout of $352,218.

• Strategic Pool: The total transfer from the Strategic Pool is budgeted at $3,030,152.

As we transferred to Liquidity all funds needed to pay out the remaining RAC grant payments in fiscal year 2022-2023, 100% of the $3,030,152 (along with the

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projected cash remaining from 2023-2024) will cover all operating expenses and non-RAC strategic and other grant payments (not including Community Grants and Crestmoor Scholarship payments).

As in past years, the attached budget resolution would give the Executive Director the discretion to manage all transfers from investment accounts, including the discretion to divide each category of transfers into smaller increments, set the timing of the incremental transfers based on the Foundation’s cash flow needs, and transfer less than the approved transfer amounts as circumstances may warrant. Thus, the Executive Director can wait to transfer funds from the Strategic Pool to cover any non-RAC strategic grants until such grants are approved and grant payments are due.

Together, Operating Income and Transfers from Investments result in a total of $3,382,370 in Funds Available for Operations. With residual cash from FY2023-2024 carried forward into FY2024-2025, this total will cover anticipated FY2024-2025 cash needs.

The attached resolution, which I recommend the Board adopt, authorizes four actions. It: (a) approves the FY2024-2025 budget; (b) sets the Quasi-Endowment payout rate for FY2024-2025; (c) approves a transfer from the Strategic Pool to the Liquidity Pool as part of the FY2024-2025 operating budget; and (d) directs the Executive Director to submit the FY2024-2025 budget to the San Bruno City Council for consideration and approval. It also gives the Executive Director the discretion to manage all transfers from investment accounts, including the discretion to divide each category of transfers into smaller increments, set the timing of the incremental transfers based on the Foundation’s cash flow needs, and transfer less than the approved transfer amounts, based on the Foundation’s cash flow needs.

Attachments:

1. Resolution Approving Fiscal Year 2024-2025 Budget, Setting the Quasi-Endowment Payout Rate for Fiscal Year 2024-2025, and Approving Transfer from the Strategic Pool Investment Account to the Liquidity Pool for Fiscal Year 2024-2025

2. Exhibit A: 2024-2025 Proposed Budget

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EXHIBIT A
Apr 2024 May-Jun 2024 Projected Proposed Change vs.

INCOME 2023-24 Budget Actual Projected 2023-24 2024-25 Budget 2023-24 Actual 1 Interest Income 17,177$ 14,314$ 2,863$ 17,177$ -$ (17,177)$ 2 Donations - 2,700 100,000 102,700 - (102,700) 3 Miscellaneous Income - 30,000 - 30,000 - (30,000) 4 Subtotal Operating Income 17,177 47,014 102,863 149,877 - (119,877) 5 Transfers from Quasi Endowment 372,843 200,000 172,843 372,843 352,218 (20,625) 6 Transfers from Strategic Pool 1,441,576 850,000 - 850,000 3,030,152 2,180,152 7 Subtotal Transfers from Investments 1,814,419 1,050,000 172,843 1,222,843 3,382,370 2,159,527 8 FUNDS AVAILABLE FOR OPERATIONS 1,831,596 1,097,014 275,706 1,372,720 3,382,370 2,039,650

EXPENSES
9 Crestmoor Scholarships 160,000 - 160,000 160,000 165,000 5,000 10 Community Grants Fund 300,000 300,000 - 300,000 300,000 - 11 Strategic Grants 500,000 - 350,000 350,000 2,500,000 2,150,000 12 Other Grants 10,000 2,500 - 2,500 10,000 7,500 13 Subtotal Direct Program Expenses 970,000 302,500 510,000 812,500 2,975,000 2,162,500 14 Salaries & Wages 234,706 202,501 40,904 243,405 246,512 3,107 15 Payroll Taxes & Benefits 26,762 22,559 1,737 24,296 28,094 3,798 16 Subtotal Direct Personnel Expenses 261,468 225,060 42,641 267,701 274,606 6,905 17 Occupancy 17,009 14,097 2,912 17,009 18,000 991 18 Insurance 19,787 15,361 3,074 18,435 17,093 (1,342) 19 Telecommunications 2,648 2,044 394 2,438 2,610 172 20 Postage & Shipping 2,560 2,460 100 2,560 2,920 360 21 Marketing & Communications 17,786 14,827 1,100 15,927 18,921 2,994 22 Office Supplies and Equipment 5,800 3,052 730 3,782 6,100 2,318 23 Legal Fees 49,740 24,856 9,100 33,956 44,280 10,324 24 Accounting & Payroll Fees 36,742 28,881 3,600 32,481 37,257 4,776 25 Other Consultants 32,882 4,463 5,000 9,463 30,382 20,919 26 Travel, Meetings & Conferences 7,924 3,474 2,240 5,714 15,170 9,456 27 Miscellaneous 2,713 1,414 400 1,814 2,000 186 28 Subtotal Non-Personnel Support Costs 195,591 114,929 28,650 143,579 194,733 51,154 29 TOTAL EXPENSES 1,427,059 642,489 581,291 1,223,780 3,444,339 2,220,559 30 NET SURPLUS 404,537$ 454,525$ (305,585)$ 148,940$ (61,969)$ (180,909)$ 2024-2025 Budget

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 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
Calvin Iwan, Assistant Engineer
SUBJECT: Consider Adoption of a Resolution:
• Approving the Design of the 2021-22 Street Reconstruction Project; • Authorizing the City Manager to Execute a Construction Contract with Interstate Grading & Paving, Inc. for the 2021-22 Street Reconstruction Project in an amount not to exceed $3,121,064;
• Approving a Material Testing Agreement with Smith-Emery, Inc. in an amount not to exceed $62,810;
• Approving a Construction Contingency of $470,000;
• Transferring the budget in the amount of $1,072,000 from the 2023-24 Street Reconstruction Project to the 2021-22 Street Reconstruction Project;
• Appropriating $200,000 from the 2024-25 SB 1 funds projected to be in the amount of $1,139,969 to the 2021-22 Street Reconstruction Project; • Appropriating funds from the City of Millbrae in the amount of $126,500 to fund the pavement work on the portion of Santa Helena Avenue within the City of Millbrae;
• Approving a total project budget in the amount of $4,491,705; and • Determining the Project is Exempt Under the California Environmental Quality Act
BACKGROUND:

The City’s Capital Improvement Program (“CIP”) includes the Pavement Management Program (“PMP”) to repair and apply preventative maintenance treatment to local, collector, and arterial streets. The 2021-22 Street Reconstruction Project (“Project”) is an approved project in the PMP.

On November 8, 2022, City Council adopted a resolution authorizing the City Manager to execute an agreement with Wilsey Ham for the design services for the Project.

Project locations and limits consist of the streets listed below. The listed streets are in failed condition with PCIs less than 25.
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Item 6g.

Honorable Mayor and Members of the City Council
June 25, 2024

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8 2
3 Street Begin End

EASTBURN CT WHITMAN WY CUL-DE-SAC

MILLS AVE KAINS AVE SAN BRUNO AVE

SANTA HELENA AVE SAN ANTONIO AVE EL CAMINO REAL

POPLAR AVE CRYSTAL SPRINGS AVE ALLEN ELEMENTARY

BAYSHORE CIRCLE (WB) HUNTINGTON AVE (EAST) HERMAN STREET

DARBY PLACE CRESTMOOR DR END

OXFORD LN NORTH END SOUTH END

MONTGOMERY AVE WALNUT ST SCOTT ST

PARKVIEW CT PARKVIEW DR END
The project was first advertised twice in the San Mateo Daily Journal newspaper on March 4, 2024, and March 11, 2024. On April 9, 2024, staff conducted the bid opening and the lowest base bid submitted was $2,600,211, reflecting a significant cost difference of over $1,000,000 compared to the second bid of $3,650,000.

The initial design incorporated the full-depth reclamation (“FDR”) method for reconstructing most of the designated streets. On May 14, 2024, because potential bidders had refrained from submitting bids due to the unavailability of the specialized subcontractors and lack of competitiveness, Council adopted a resolution rejecting all bids and authorizing City staff to re- advertise the 2021-22 Street Reconstruction project. The goal of eliminating the need for specialized subcontractors and re-advertising the project was to increase the competitiveness of the project and potentially obtain more favorable bids. The redesign of the project includes subbase stabilization and deep lift or hot mix asphalt overlay. Additionally, the Project includes the installation of accessible curb ramps within project limits.

DISCUSSION:

On May 16, 2024, the City reissued a notice inviting bids for the construction of the 2021-22 Street Reconstruction Project. Notice to bidders was sent to contractors listed in the City’s contractor directory, posted on the City’s website and provided to construction distribution centers. The Project was advertised twice in the San Mateo County Times newspaper on May 16, 2024 and May 23, 2024. Staff held a non-mandatory pre-bid meeting on May 23, 2024. On May 31, 2024, staff conducted the bid opening for the project and received two (2) bids which are summarized as follows:

No. Contractor Name
Base Bid
(Basis of
Award)
Bid Alt. A
(Montgomery)
Bid Alt. B
(Santa
Helena in
Millbrae)
Bid Alt. C
(Night /
Weekend
Work on
Montgomery) Total Bid
1 Interstate Grading
& Paving, Inc. $2,212,219.00 $804,525.00 $104,320.00 $72,000.00 $3,193,064.00 2 G. Bortolotto &
Co., Inc. $2,814,894.00 $1,414,764.00 $132,140.00 $40,000.00 $4,401,798.00

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June 25, 2024

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8 2
3 Engineer’s
Estimate $2,672,545.00 $883,910.00 $44,042.50 $116,700.00 $3,717,197.50 Below summarizes the base bid amount including potential combinations of the base bid and bid alternates:

Contractor Name Base Bid (Basis
of Award)
Base Bid + Alt A Base Bid + Alt
A+B
Base Bid + Alt
A+B+C
Interstate Grading &
Paving, Inc.
$2,212,219.00 $3,016,744.00 $3,121,064.00 $3,193,064.00 Engineer's Estimate $2,672,545.00 $3,556,455.00 $3,600,497.50 $3,717,197.50 Staff reviewed the bid materials and determined that the submitted bid is responsive. Bid alternate A includes pavement reconstruction of Montgomery Avenue between Walnut Street to Scott Street. Bid alternate B includes pavement reconstruction of Santa Helena Avenue between Santa Helena Avenue between San Antonio Avenue and San Anselmo Avenue. Within the limits of Santa Helena Avenue, half of the street is within San Bruno while the remaining half is within the City of Millbrae. Staff from San Bruno have discussed the cost sharing of Santa Helena Avenue pavement reconstruction work with staff from Millbrae. City of San Bruno is arranging with City of Millbrae to enter into an agreement to be executed between the two cities.

Bid alternate C includes the cost to perform work on Montgomery (bid alternate A) at night or on weekends.

Bid alternate C was included in the bid documents as an alternate to consider businesses during construction, but after further review, staff does not recommend bid alternate C as work can be performed with minimal disruption to businesses on Montgomery Avenue during construction by not closing of entire sections of the roadway.

Staff recommends awarding the base bid and bid alternates A & B in the amount of $3,121,064.00 to Interstate Grading & Paving, Inc., which has an office located in South San Francisco, CA and has successfully completed other pavement projects for the City. Based on the contractor’s experience and performance with other agencies including San Bruno, staff determined that Interstate Grading & Paving, Inc. meets the qualifications to perform the work for the 2021-22 Street Reconstruction Project as specified in the contract documents.

Construction of the Project will have impacts on residents in the Project vicinity such as temporary roadway closures, and noise dust and accessibility in and out of the private properties. Parking will also be restricted within each roadway as construction work is occurring.

At the end of each day, the roadway will be reopened and on-street parking will be re- established. Should the Project be awarded, staff anticipates start of construction in summer of 2024, and completed in spring of 2025.

FISCAL IMPACT:

The 2021-22 Street Reconstruction Project is a Project within the approved FY 2023-24 CIP budget funded by SB1 funds. The approximate total cost of the Project, which includes design, construction, staff and project management, inspection, construction materials testing, and construction contingency is $4,491,705. An additional $1,270,000 is needed to fund the project.

Staff recommends transferring the remaining amount of approximately $1,072,000 from the

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June 25, 2024

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8 2
3 2023-24 Street Reconstruction project, approved in the FY 2023-24 CIP, and appropriating $200,000 from the 2024-25 SB1 Funds allocated to the City that have been projected to be $1,139,969. Funds not used from the 2021-22 Street Reconstruction Project will be returned to the SB 1 fund balance to be appropriated for future pavement projects on failed streets. Staff recommends utilizing these funds to implement the failed streets already identified, designed, and ready for construction.

Bid alternative B will be funded by the City of Millbrae in the estimated amount of $104,320.

The City of Millbrae will additionally compensate the City for administrative charges in the amount of $11,500 and contingency, if needed, in the amount of $10,432, for a total amount not to exceed $126,500. Funds reimbursed by the City of Millbrae will be returned to the SB 1 fund balance.

The estimated project costs as recommended are shown in the table below.

2021-22 Street Reconstruction Project
Description Base Bid + Bid Alt A + B
Design Contract (Wilsey Ham) $ 281,811
Estimate Staff Management Time $ 67,000
Construction Contract (Interstate Grading & Paving, Inc.) $3,121,064 Construction Contingency (15%) $ 470,000
Materials & Compaction Testing (Smith Emery) $ 62,810 Project Management & Inspection (Swinerton) $ 233,300 Pavement Evaluation & Construction Support (PEI) $ 255,720 Project Total (rounded) $4,500,000
ENVIRONMENTAL IMPACT:

This project falls within the Statutory Exemption set forth in CEQA Guidelines, Section 15301(c), which exempts the repair and maintenance of existing streets, sidewalks, gutters, bicycles and pedestrian trails, and similar facilities.

RECOMMENDATION:

Consider Adoption of a Resolution:
•Approving the Design of the 2021-22 Street Reconstruction Project; •Authorizing the City Manager to Execute a Construction Contract with Interstate Grading & Paving, Inc. for the 2021-22 Street Reconstruction Project in an amount not to exceed $3,121,064;
•Approving a Material Testing Agreement with Smith-Emery, Inc. in an amount not to exceed $62,810;
•Approving a Construction Contingency of $470,000;
•Transferring the budget in the amount of $1,072,000 from the 2023-24 Street Reconstruction Project to the 2021-22 Street Reconstruction Project; •Appropriating $200,000 from the 2024-25 SB 1 funds anticipated to be in the amount of $1,139,969 to the 2021-22 Street Reconstruction Project;

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June 25, 2024

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8 2
3 •Appropriating funds from the City of Millbrae in the amount of $126,500 to fund the pavement work on the portion of Santa Helena Avenue within the City of Millbrae; •Approving a total project budget in the amount of $4,491,705; and •Determining the Project is Exempt Under the California Environmental Quality Act ALTERNATIVES:

1. Do not authorize the City Manager to execute an agreement with Interstate Grading & Paving, Inc. and reject all bids and re-advertise. Readvertising could result in higher bids and would delay construction by several months.

2. Award only the base bid and add alternate B. This would result in not needing to appropriate the 2024-25 SB Funds but would also result in Montgomery Avenue not being reconstructed.

Funds will eventually be required to reconstruct Montgomery Avenue with a future project. Costs will be incurred to repackage and readvertise the work and costs of construction may increase.

3. Award the base bid and a different selection of bid additives.

ATTACHMENTS:

1. Resolution

2. CIP Budget

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2 4
7 7
RESOLUTION NO. 2024 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO APPROVING THE DESIGN OF THE 2021-22 STREET RECONSTRUCTION PROJECT; AUTHORIZING THE

CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH INTERSTATE GRADING & PAVING, INC. FOR THE 2021-22 STREET RECONSTRUCTION PROJECT IN AN AMOUNT NOT TO EXCEED $3,121,064; APPROVING A MATERIAL TESTING AGREEMENT WITH SMITH-EMERY, INC. IN AN AMOUNT NOT TO EXCEED $62,810; APPROVING A CONSTRUCTION CONTINGENCY OF $470,000; TRANSFERRING THE BUDGET IN THE AMOUNT OF $1,072,000 FROM THE 2023-24 STREET RECONSTRUCTION PROJECT TO THE 2021-22 STREET RECONSTRUCTION PROJECT; APPROPRIATING $200,000 FROM THE 2024-25 SB 1 FUNDS ANTICIPATED TO BE IN THE AMOUNT OF $1,139,969 TO THE 2021-22 STREET RECONSTRUCTION PROJECT; APPROPRIATING FUNDS FROM THE CITY OF MILLBRAE IN THE AMOUNT OF $126,500

TO FUND THE PAVEMENT WORK ON THE PORTION OF SANTA HELENA AVENUE WITHIN THE CITY OF MILLBRAE; APPROVING THE TOTAL PROJECT BUDGET IN THE AMOUNT OF $4,491,705; AND DETERMINING THE PROJECT IS EXEMPT UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City’s Capital Improvement Program (“CIP”) includes the Pavement Management Program (“PMP”) to repair and apply preventative maintenance treatment to local, collector, and arterial streets, the 2021-22 Street Reconstruction Project (“Project”) is an approved project in the PMP; and
WHEREAS, on November 8, 2022, City Council adopted a resolution authorizing the City Manager to execute an agreement with Wilsey Ham for the design services for the Project; and
WHEREAS, the initial design incorporated the full-depth reclamation (“FDR”) method for reconstructing most of the designated streets; and
WHEREAS, on April 9, 2024, staff conducted the bid opening and the lowest base bid submitted was $2,600,211, reflecting a significant cost difference of over $1,000,000 compared to the second bid of $3,650,000; and
WHEREAS, on May 14, 2024, because potential bidders refrained from submitting bids due to the unavailability of the specialized subcontractors and lack of competitiveness, Council adopted a resolution rejecting all bids and authorizing City Staff to re-advertise the 2021-22 Street Reconstruction project; and
WHEREAS, the 2021-22 Street Reconstruction Project Design (“Design”), which consists of plans and specifications that are on file with the Public Works Department, was completed in May 2024; and
WHEREAS, the redesign of the project includes subbase stabilization and deep lift or hot mix asphalt overlay including installation of accessible curb ramps within project limits; and WHEREAS, o n May 16, 2024, the City reissued a notice inviting bids for the construction of the 2021-22 Street Reconstruction Project. And on May 31, 2024 staff conducted the bid opening for the project and received two (2) bids; and WHEREAS, staff reviewed the bid materials and determined that the submitted bid is responsive and recommends awarding the base bid and bid alternates A & B to Interstate 52 of 181
ATTACHMENT 1
2 4
7 7
Grading & Paving, Inc.; and
WHEREAS, the total base bid including bid alternates A & B is $3,121,064, which is approximately $480,000 below the engineer’s estimate of $3,600,497.50; and WHEREAS, the total cost of the project, which includes design, construction, staff and project management, inspection, construction materials testing and construction contingency is approximately $4,500,000; and
WHEREAS, an additional $1,270,000 funds is needed to fund the project which Staff recommends transferring the remaining amount of approximately $1,072,000 from the 2023-24 Street Reconstruction Project and appropriating $200,000 from the 2024-25 SB 1 funds to the 2021-22 Street Reconstruction Project; and WHEREAS, this project falls within the Statutory Exemption set forth in CEQA Guidelines, Section 15301(c), which exempts the repair and maintenance of existing streets, sidewalks, gutters, bicycles and pedestrian trails, and similar facilities.

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

1. Approves the Design of the 2021-22 Street Reconstruction Project;

2. Authorizes the City Manager to Execute a Construction Contract with Interstate Grading & Paving, Inc. for the 2021-22 Street Reconstruction Project in an amount not to exceed $3,121,064;

3. Approves a Material Testing Agreement with Smith-Emery, Inc. in an amount not to exceed $62,810;

4. Approves a Construction Contingency of $470,000;

5. Transfers the budget in the amount of $1,072,000 from the 2023-24 Street Reconstruction Project to the 2021-22 Street Reconstruction Project;

6.Appropriates $200,000 from the 2024-25 SB 1 funds anticipated to be in the amount of $1,139,969 to the 2021-22 Street Reconstruction Project;

7.Appropriates funds from the City of Millbrae in the amount of $126,500 to fund the pavement work on the portion of Santa Helena Avenue within the City of Millbrae;

8.Approves a total project budget in the amount of $4,491,705; and

9. Determines the project is exempt under the California Environmental Quality Act ---oOo---
I hereby certify that foregoing Resolution No. 2024 - ___ was introduced and adopted by the San Bruno City Council at a regular meeting on June 25, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers
_________________________
Lupita Huerta, City Clerk

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PROJECT #: 60018 3,255,329$
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
Gas Tax (SB1) RMRA 3,255,329$ 2,611,486$ -$ 2,611,486$ -$ -$ -$ -$ 2,611,486$ Total 3,255,329$ 2,611,486$ -$ 2,611,486$ -$ -$ -$ -$ 2,611,486$

PROJECT APPROPRIATIONS
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
FY2023-28
Budget
Design 983,329$ 339,486$ -$ 339,486$ -$ -$ -$ -$ 339,486$ Construction 2,272,000$ 2,272,000$ -$ 2,272,000$ -$ -$ -$ -$ 2,272,000$ Total 3,255,329$ 2,611,486$ -$ 2,611,486$ -$ -$ -$ -$ 2,611,486$ Project Details
Initial Funding Year FY2019-20
Target Completion Year FY2023-24
Expended as of July 1, 2021 643,843$
FY2023-24
Total Project Budget:

Pavement Management Program - 2021-22 Street Reconstruction Project Streets Capital
Pavement Management
Project Description: The 2021-22 Street Reconstruction Project includes the rehabilitation and reconstruction of failed streets: Santa Helena Avenue, Mills Avenue, Poplar Avenue, Eastburn Court, Bayshore Circle WB, Darby Place, Oxford Lane and additional streets approved for FY 2022-23.
367
54 of 181 ATTACHMENT 2
PROJECT #: NEW Total Project Budget: 1,088,061$
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
Gas Tax (SB1) RMRA -$ -$ 1,088,061$ 1,088,061$ -$ -$ -$ -$ 1,088,061$ Total -$ -$ 1,088,061$ 1,088,061$ -$ -$ -$ -$ 1,088,061$

PROJECT APPROPRIATIONS
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
FY2023-28
Budget
Design -$ -$ 200,000$ 200,000$ -$ -$ -$ -$ 200, 000$ Construction - - 888,061 888,061 - - - - 888,061 Total -$ -$ 1,088,061$ 1,088,061$ -$ -$ -$ -$ 1,088,061$ 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 Reconstruction Project Streets Capital
Pavement Management
Project Description: The 2023-24 Street Reconstruction Project includes the rehabilitation and reconstruction of failed streets.
368

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 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
Dalia Manaois, P.E., Principal Civil Engineer
SUBJECT: Consider Adoption of a Resolution Adopting a List of Projects for Fiscal Year 2024-25 Funded by SB1: The Road Repair and Accountability Act of 2017 and Authorizing Submittal of the Project List and Application for RMRA Funds to the California Transportation Commission
BACKGROUND:

The City of San Bruno’s (City) Capital Improvement Program (CIP) includes the Pavement Management Program (PMP) to repair and apply preventative maintenance treatment to local, collector, and arterial streets. The PMP provides an ongoing condition assessment of City streets and recommends 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 repaved street. The City maintains approximately 89 miles of streets and the City has a current average PCI score of 63.

Similar to other cities throughout the Bay Area, the City utilizes the Metropolitan Transportation Commission’s (MTC) Streetsaver program to serve as a database for tracking the condition of streets throughout the City and to recommend streets to be selected for pavement maintenance. Streetsaver analyzes the pavement lifecycle of each individual street in order to select the appropriate treatment to apply. While the Streetsaver prioritization methodology maximizes the City’s average PCI for the entire network, it also defers maintenance for those streets that are in the worst shape due to insufficient PMP funding.

The CIP budget allocated for the PMP is being supplemented by funding provided to the City by the passage of Senate Bill 1 (SB1) also referred to as the Road Repair and Accountability Act of 2017. SB1 created the Road Maintenance and Rehabilitation Account (RMRA) and increased the fuel excise taxes and vehicle registration fees in order to fund road maintenance and rehabilitation projects on local streets and roads systems. The State began collection on this new funding source on November 1, 2017. For the upcoming Fiscal Year 2024-25, the City is projected to receive $1,139,969 of SB1 funding.

The 2021 California Statewide Local Streets and Roads Needs Assessment found that the City streets and roads are in an “at-risk” condition (PCI 50-69) and this revenue will contribute towards the maintaining of the roadway network within the City. 56 of 181
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Honorable Mayor and Members of the City Council
June 25, 2024

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1 In an effort to facilitate accountability and transparency within SB1 and prior to receiving funding from the State, each local agency is required to submit to the California Transportation Commission (CTC) a list of projects proposed to be funded with the SB1 funds and adopt those projects by resolution at a regular public meeting. This project list and resolution adopting those projects must be submitted to the CTC for approval by July 1, 2024, in order to receive SB1 funding for the upcoming fiscal year. In September 2017, rather than continuing to defer maintenance on failed streets, the City Council recommended that this new funding source be utilized to perform reconstruction on some of the City’s worst streets to reduce the deferred maintenance backlog. Selection of the street segment to receive reconstruction was made by prioritizing the street rehabilitations at locations that would provide the most benefit to City residents.

DISCUSSION:

In 2017, a City Council Subcommittee recommended a methodology for prioritizing and selecting street segments to receive rehabilitation utilizing SB1 funds. That methodology was developed by directing staff to prioritize the rehabilitation of streets in the worst condition and to use selection criteria such that the streets selected for reconstruction would provide the highest public benefit. Since the allocated funds are insufficient to reconstruct all the worst streets, an assessment was created to equitably determine which streets should be prioritized for reconstruction that would provide the most benefit to City residents. The evaluation considered the following factors: existing pavement condition, proximity to public parks, gathering places, schools, bus routes, multi-family residential (MFR) buildings with at least three units, and property density. Each street can receive up to ten possible points, with point breakdowns as shown in Table 1 below and the highest scoring streets being prioritized and recommended for reconstruction.

Table 1 – SB1 Prioritization Point Breakdown

FACTOR POINTS
PCI 4 POINT MAX
MFR 2 POINT MAX
SCHOOL 1 POINT
PARK 1 POINT
GATHERING 1 POINT
BUS ROUTE 1 POINT

DENSITY TIEBREAKER
Streets in the worst shape with PCI 0-10 are allocated four points while streets in better shape with PCI 31-40 receive one point. A street that contains at least 25% MFR buildings is allocated two points while a street with at least one MFR building receives one point. Property density is calculated by dividing the pavement area by the number of properties on that street with the denser streets ranking higher. Property density is used as a tiebreaker for streets with the same point scores. For reference, PCI and density information are provided in Attachment 2.

Based on this selection methodology, the 2021-2022 Street Reconstruction Project (“Project”)

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Honorable Mayor and Members of the City Council
June 25, 2024

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8 2
1 was recommended to be constructed utilizing SB1 funds in previous fiscal years. Project limits are listed below.

Street Begin End

EASTBURN CT WHITMAN WY CUL-DE-SAC

MILLS AVE KAINS AVE SAN BRUNO AVE

SANTA HELENA AVE SAN ANTONIO AVE EL CAMINO REAL

POPLAR AVE CRYSTAL SPRINGS AVE ALLEN ELEMENTARY

BAYSHORE CIRCLE (WB) HUNTINGTON AVE (EAST) HERMAN STREET

DARBY PLACE CRESTMOOR DR END

OXFORD LN NORTH END SOUTH END

MONTGOMERY AVE WALNUT ST SCOTT ST

PARKVIEW CT PARKVIEW DR END
Due to insufficient funds needed to proceed with constructing all the streets identified in the Project, SB1 Fiscal Year 2024-25 funding is being recommended to be utilized towards the construction of the Project.

Projects identified to receive SB1 funds during the Fiscal Years 2018-19 through 2021-22 are included as part of the 2021-22 Street Reconstruction Project. The final design was completed in May 2024 and construction is scheduled to be awarded on June 25, 2024.The bids received exceeded the available SB1 funding amounts. Staff recommends the Fiscal Year 2023-24 and 2024-25 SB1 funds be utilized to complete the construction of the 2021-22 Street Reconstruction Project. Funds not used from the 2021-22 Street Reconstruction Project will be returned to the SB 1 fund balance to be appropriated for future pavement projects on failed streets.

FISCAL IMPACT:

The City is required to identify the specific streets to be repaired using SB1 funds in FY2024-25 in order to be eligible to receive the funding. The City is projected to receive $1,139,969 of SB1 funding.

ENVIRONMENTAL IMPACT:

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

RECOMMENDATION:

Consider adoption of a resolution adopting a list of projects for Fiscal Year 2024-25 funded by SB1: The Road Repair and Accountability Act of 2017 and authorizing the City Manager or designee to submit the project list and application for RMRA funds to the California Transportation Commission.

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Honorable Mayor and Members of the City Council
June 25, 2024

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8 2
1 ALTERNATIVES:

1. Direct staff to amend the proposed prioritization methodology for use of SB1 funds.

2. Select different street segments to be repaired in FY2024-25 using SB1 funds.

ATTACHMENTS:

1. Resolution

2. Prioritization List for Street Reconstruction

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RESOLUTION NO. 2024 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024-25 FUNDED BY SB1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB1), The Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB1 includes accountability and transparency provisions that will ensure the residents of the City of San Bruno (City) are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive $1,139,969 in RMRA funding in Fiscal Year 2024-25 from SB1; and
WHEREAS, this is the eighth year in which the City is receiving SB1 funding and enables the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City used a Pavement Management System to develop the SB1 project list to ensure revenues are being used on the reconstruction of streets that would provide the highest public benefit; and
WHEREAS, SB1 funding will help the City maintain and rehabilitate nine roads this year and on similar projects into the future; and
WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City streets and roads are in a “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and
WHEREAS, the SB1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will significantly help in reducing the City’s deferred maintenance backlog.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby adopts a resolution approving the following:
60 of 181
ATTACHMENT 1

1. The foregoing recitals are true and correct.

2. The following previously proposed and adopted projects may also utilize Fiscal Year 2024-25 Road Maintenance and Rehabilitation Account revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:

3. The City Manager or designee is authorized to submit the project list and application for RMRA funds to the California Transportation Commission. ---oOo---
I hereby certify that foregoing Resolution No. 2024 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on June 25, 2024, by the following vote:

Project Name Description Location Scheduled
Start
Scheduled
Completion
Useful
Life
2021-22 Street
Reconstruction
Project
This project includes the
design and construction to
reconstruct or rehabilitate
various project streets.

Included project elements
are pavement design,
preparation of contract
documents, installation of
accessible curb ramps,
and pavement
reconstruction of failed
streets.

Project streets are
located as follows:

Bayshore Circle
between Huntington
Ave and Herman St,
Darby Place
between Crestmoor
Dr and Cul-De-Sac,
Oxford Lane from
North End and
South End,
Montgomery Ave
between Walnut St
and Scott St,
Parkview Ct
between Parkview
Dr and Cul-De-Sac,
Eastburn Ct
between Whitman
Way and Cul-De-
Sac, Mills Ave
between Kains Ave
and San Bruno Ave,
Poplar Ave between
Allen Elementary
School and Crystal
Springs Ave, and
Santa Helena Ave
between El Camino
Real and San
Antonio Ave
Fall 2024 Fall 2025 15 YRS

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AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk

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Prioritization List for Street Reconstruction
RANKING SCORE STREET BEGIN END PCI Bus Route School Gathering Place Recreation MFR Ratio DENSITY
(SF/PROPERTY)
1 4 SCENIC COURT PARKVIEW DRIVE END 3 --- --- --- --- 0% 662 2 4 LOMITA AVENUE LINDEN AVENUE CITY LIMITS 4 --- --- --- --- 0% 792 3 4 HAMILTON AVENUE TRENTON DRIVE CRESTMOOR DRIVE 4 --- --- --- --- 0% 817 4 4 TOYON WAY ROLLINGWOOD DRIVE CATALPA WAY 1 --- --- --- --- 0% 830 5 4 BAYSHORE CIRCLE EB HUNTINGTON AVE EAST HERMAN STREET 4 --- --- --- --- 0% 875 6 4 ALCOTT DRIVE BENNINGTON DRIVE ROSEWOOD DRIVE 1 --- --- --- --- 0% 998 7 4 WENTWORTH DRIVE N. CITY LIMITS OLYMPIC DRIVE 5 --- --- --- --- 0% 1,158 8 4 MORELAND DRIVE RIVERSIDE DRIVE LONGVIEW DRIVE 2 X --- --- --- 0% 3,570 9 3 REID AVENUE LINDEN AVENUE ELM AVENUE 8 --- --- --- --- 0% 624 10 3 ACACIA AVENUE CRYSTAL SPRINGS AVENUE ANGUS AVENUE 23 --- X --- --- 0% 627 11 3 LINDEN COURT LINDEN AVENUE CUL-DE-SAC 11 --- --- --- --- 0% 670 12 3 DIAMOND STREET HERMAN STREET BUENA VISTA AVENUE 26 --- --- --- X 0% 701 13 3 CHILTON LANE HIGHLAND DRIVE END 7 --- --- --- --- 0% 742 14 3 PALOMAR COURT DONNER AVENUE DEAD END 12 --- --- --- --- 0% 745 15 3 MONTGOMERY AVENUE SCOTT STREET NORTH CITY LIMITS 8 --- --- --- --- 0% 808 16 3 FLEETWOOD DRIVE CATALPA WAY ROLLINGWOOD DRIVE 25 --- --- --- X 0% 896 17 3 ESSEX COURT TRENTON DRIVE END 9 --- --- --- --- 0% 955 18 3 LOWELL AVENUE BENNINGTON DRIVE ROSEWOOD DRIVE 13 --- --- --- --- 0% 984 19 3 KEEFE COURT ROSEWOOD DRIVE CUL-DE-SAC 13 --- --- --- --- 0% 1,019 20 3 LONDON COURT CRESTMOOR DRIVE CUL-DE-SAC 14 --- --- --- --- 0% 1,097 21 3 POPLAR AVENUE SANTA LUCIA AVENUE CRYSTAL SPRINGS AVENUE 38 --- --- X --- 2% 1,129 22 3 BRYANT WAY SKYLINE BLVD CUL-DE-SAC 14 --- --- --- --- 0% 1,235 23 3 ATLANTIC AVENUE SAN MATEO AV RR TRACKS 11 --- --- --- --- 0% 1,558 24 3 ROLLINGWOOD DRIVE SNEATH LANE FLEETWOOD RIVE 13 X --- --- --- 0% 1,781 25 3 HIGHLAND DRIVE ELSTON DRIVE PACIFIC HEIGHTS BLVD 9 --- --- --- --- 0% 2,610 26 3 HUNTINGTON AVENUE SNEATH LANE NOOR AVENUE (N. CITY LIMITS) 20 X --- --- --- 0% 10,080 27 3 CRYSTAL SPRINGS RD PUMP STATION CRESTMOOR DRIVE 36 --- --- --- --- 100% 53,000 28 2 BUENA VISTA AVENUE EAST HUNTINGTON AVENUE HERMAN STREET 31 --- --- --- --- 13% 639 29 2 CHERRY AVENUE NILES AVENUE JENEVEIN AVENUE 26 --- --- --- --- 0% 696 30 3 COLLEGE DRIVE WB SKYLINE BLVD. SUSAN DRIVE 28 X --- --- --- 0% 15,370 31 2 BIRCH COURT GREENWOOD DRIVE CUL-DE-SAC 26 --- --- --- --- 0% 797 32 2 LEXINGTON WAY KINGSTON AVENUE CRESTMOOR DRIVE 24 --- --- --- --- 0% 831 33 2 CHERRY AVENUE PARK AVENUE SAN BRUNO AVENUE 24 X --- --- --- 0% 933 34 2 CORONADO WAY END HIGHLAND DRIVE 25 --- --- --- --- 0% 959 35 2 EUCALYPTUS WAY ROLLINGWOOD DRIVE SEQUOIA AVENUE 20 --- --- --- --- 0% 991 36 2 ELDER COURT EUCALYPTUS WAY CUL-DE-SAC 24 --- --- --- --- 0% 998 37 2 ARBOR COURT GREENWOOD DRIVE CUL-DE-SAC 25 --- --- --- --- 0% 1,001 38 2 PIEDMONT AVENUE CRESTMOOR DRIVE MADISON AVENUE 20 --- --- --- --- 0% 1,148 39 2 OAKMONT DRIVE OLYMPIC DRIVE N. CITY LIMITS 19 --- --- --- --- 0% 1,158 40 2 RIVERSIDE DRIVE SNEATH LANE MORELAND DRIVE 34 X --- --- --- 0% 1,451 41 2 SKYLINE BLVD CAMBRIDGE LANE BRYANT WAY 24 --- --- --- --- 0% 1,818 42 2 HIGHLAND DRIVE MOULTON DRIVE YSABEL DRIVE 24 --- --- --- --- 0% 1,894 43 2 LINDEN AVENUE JENEVEIN AVENUE KAINS AVENUE 38 --- X --- --- 0% 2,148 44 2 ANGUS AVENUE WEST EL CAMINO REAL LINDEN AVENUE 35 --- --- --- X 0% 2,250 45 2 GLENVIEW DRIVE RIDGEWAY AVENUE SAN BRUNO AVENUE 39 --- --- --- --- 10% 5,550 46 2 SAN BRUNO AVENUE WB 100 W/O CRESTMOOR DRIVE GLENVIEW DRIVE 26 --- --- --- --- 0% 7,085 1 63 of 181
ATTACHMENT 2
Prioritization List for Street Reconstruction
47 2 SAN BRUNO AVENUE WB GLENVIEW DRIVE SKYLINE BLVD 22 --- --- --- --- 0% 10,250 48 2 BAYHILL DRIVE CHERRY AVENUE END 17 --- --- --- --- 0% 10,500 49 1 PEPPER DRIVE CEDAR AVENUE CEDAR AVENUE 31 --- --- --- --- 0% 577 50 1 WHITECLIFF WAY TRENTON DRIVE CHARLESTON AVENUE 29 --- --- --- --- 0% 674 51 1 PORTOLA WAY END DE SOTO WAY 31 --- --- --- --- 0% 706 52 1 ANGUS AVENUE WEST ELM AVENUE ACACIA AVENUE 39 --- --- --- --- 0% 710 53 1 OLIVE COURT KAINS AVENUE CUL-DE-SAC 35 --- --- --- --- 0% 716 54 1 TURNBERRY DRIVE N. CITY LIMITS ST. CLOUD DRIVE 39 --- --- --- --- 0% 733 55 1 SYCAMORE AVENUE KAINS AVENUE MAGNOLIA AVENUE 35 --- --- --- --- 0% 746 56 1 COLUSA COURT SNEATH LANE CUL-DE-SAC 35 --- --- --- --- 0% 760 57 1 GLENBROOK LANE ROSEWOOD DRIVE CUL-DE-SAC 38 --- --- --- --- 0% 795 58 1 SUMMIT ROAD SUSAN DRIVE ELSTON DRIVE 36 --- --- --- --- 0% 800 59 1 PLUMWOOD PLACE CHESTNUT AVENUE END 36 --- --- --- --- 0% 805 60 1 CHARLESTON AVENUE TRENTON DRIVE CRESTMOOR DRIVE 35 --- --- --- --- 0% 834 61 1 INYO COURT SNEATH LANE CUL-DE-SAC 28 --- --- --- --- 0% 851 62 1 RIDGEWAY AVENUE CRESTMOOR DRIVE SKYLINE BLVD 35 --- --- --- --- 0% 861 63 1 MORELAND DRIVE CITY LIMITS RIVERSIDE DRIVE 36 --- --- --- --- 0% 904 64 1 KINGSTON AVENUE TRENTON DRIVE CRESTMOOR DRIVE 36 --- --- --- --- 0% 919 65 1 LINDEN AVENUE KAINS AVENUE ELM AVENUE 30 --- --- --- --- 0% 991 66 1 RIVIERA COURT END OAKMONT DRIVE 29 --- --- --- --- 0% 997 67 1 KENT COURT CRESTMOOR DRIVE CUL-DE-SAC 29 --- --- --- --- 0% 1,027 68 1 ELDORADO COURT CRESTMOOR DRIVE CUL-DE-SAC 31 --- --- --- --- 0% 1,076 69 1 SCOTT STREET SAN MATEO AVENUE HERMAN STREET 30 --- --- --- --- 0% 1,272 70 1 FLEETWOOD DRIVE ROLLINGWOOD DRIVE BERKSHIRE DRIVE 24 --- --- --- --- 0% 1,273 71 1 GREENWOOD WAY ROLLINGWOOD DRIVE COTTONWOOD DRIVE 40 --- --- --- --- 0% 1,392 72 1 PEACHWOOD COURT CHESTNUT AVENUE CUL-DE-SAC 27 --- --- --- --- 0% 1,445 73 1 EXETER DRIVE SUNSET DRIVE YSABEL DRIVE 40 --- --- --- --- 0% 2,140 2 64 of 181

City Council Agenda Item
Staff Report

During the winter storms of 2022-23, severe stormwater runoffs triggered landslides in the City of San Bruno (City). A geotechnical engineer was retained to provide reconnaissance at six locations. Of those six locations, three of the landslides located on City property near the 400- block of Cunningham Way, San Bruno Avenue east of the access road to Water Tank #4, and the 1400-block of Claremont Drive were determined to require engineering design and construction to install improvements.

A project was included in the FY 2023-24 Capital Improvement Program (CIP) budget to design and construct improvements at the three locations of the landslides. To expedite the completion of the needed construction, the project is being performed in phases as designs are completed and ready to be constructed. The work near San Bruno Avenue was designed and completed by staff in 2023. The work needed near the 400 block of Cunningham Way required designs relying on information obtained through geotechnical boring. Due to the high demand of companies that provide drilling services, the design and construction schedule was anticipated to be after the third location. The designs for the third location are completed and ready for construction award. The landslide occurred in City-owned open space within Crestmoor Canyon behind the 1400 block of Claremont Drive on a relatively steep, graded grassy slope that is 50 to 60 feet in length. A concrete V-ditch is at the top of the slope and an access road within Crestmoor Canyon lies at the bottom of the slope. The landslide is roughly 25 feet wide and two to three feet in depth. A tension crack was observed adjacent to the northern side of the slide. 65 of 181
Item 6i.

Honorable Mayor and Members of the City Council
June 25, 2024

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2 In December 2023, the City retained C2R Engineering to perform temporary winterization measures in the amount of $53,750. Permanent improvements are needed to mitigate the hazard.

DISCUSSION:

The project was advertised according to the informal bidding process of the Uniform Cost Accounting Act and City municipal code. Notice Inviting Bids were sent to contractors who are on the Public Works prequalified list and construction trade journals on May 10, 2024. On May 15, the City held a non-mandatory on-site pre-bid meeting. On May 31, 2024, staff conducted the bid opening for the project and received two (2) bids which are summarized as follows:

No. Contractor Name Total Bid

1. C2R Engineering, Inc. $177,800

2. Power Engineering
Construction Co. $232,501
The bid from C2R Engineering, Inc. was in the amount of $177,800, which is $14,800 above the engineer’s estimate of $163,000. Staff reviewed the bid materials and determined that the submitted bid is responsive.

Staff recommends awarding the bid to C2R Engineering, Inc. which has an office located in Los Altos, CA and has successfully completed other landslide mitigation projects for the City. Based on the contractor’s experience and performance with other agencies including San Bruno, staff determined that C2R Engineering, Inc. meets the qualifications to perform the work for the Winter Storm Hazard Mitigation Project in Crestmoor Canyon as specified in the contract documents.

Construction of the project will have impacts on residents directly behind the project vicinity such as noise and dust. Should the project be awarded, the residents will be notified of the work. Staff anticipates starting construction in fall of 2024 and completing the project in winter of

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Honorable Mayor and Members of the City Council
June 25, 2024

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2 2024-25.

The final phase of the project for the landslide that occurred near the 400-block of Cunningham Way will come before the City Council for construction award as a separate action item.

FISCAL IMPACT:

The Winter Storm Hazard Mitigation Project is a project within the approved FY 2023-24 CIP budget. The estimated total cost of the project, which includes design, construction, staff management, construction management, inspection, and construction contingency is $451,000.

The original allocated funds in the 2023-24 CIP budget was $200,000. An additional $91,000 is funded by the Emergency Disaster Reserve. During the mid-year budget amendment, the project received an additional $70,000. Based on the estimated project total cost, an additional $90,000 is needed to fund the project. Sufficient funds are included in the FY 2024-25 recommended budget for this project and staff recommends authorizing award of contract in anticipation of the FY 2024-25 budget approval on June 25.

The estimated project costs are as follows:

Winter Storm Hazard Mitigation Project in Crestmoor Canyon Description
Design Contract (Wilsey Ham) $190,904
Staff Management $ 15,000
Estimated Construction Management Time & Inspection $ 40,000 Construction Contract (C2R Engineering, Inc.) $177,800
Construction Contingency (15%) $ 27,000
Project Total (rounded) $451,000
The full expenditures for the project are to be submitted to the State of California Office of Emergency Services (CalOES) California Disaster Assistance Act (CDAA) and Federal Emergency Management Agency (FEMA) Public Assistance (PA) programs (FEMA-4683-DR- CA/CDAA 2023-01) under their emergency protective measures damage category. If these efforts are unsuccessful, these expenditures will be funded through the General Fund Emergency Reserves.

ENVIRONMENTAL IMPACT:

This project falls within the Statutory Exemption set forth in CEQA Guidelines, Section 15269(c), which exempts specific actions necessary to prevent or mitigate an emergency.

RECOMMENDATION:

Adopt a Resolution:
•Approving the Design of the Winter Storm Hazard Mitigation Project in Crestmoor Canyon;
•Authorizing the City Manager to Execute a Construction Contract with C2R Engineering, Inc. for the Winter Storm Hazard Mitigation Project within City-owned Property within

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Honorable Mayor and Members of the City Council
June 25, 2024

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8 2
2 Crestmoor Canyon, located near the 1400-block of Claremont Drive in an amount not to exceed $177,800;
•Approving a Construction Contingency of $27,000;
•Approving a Total Project Budget in the Amount of $451,000; and •Determining the Project is Exempt Under the California Environmental Quality Act ALTERNATIVES:

1. Do not authorize the City Manager to execute an agreement with C2R Engineering and reject all bids and request staff to rebid the project; however, this will further delay the project and present unsafe conditions.

ATTACHMENTS:

1. Resolution

2. Project Map

3. CIP Budget Sheet

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RESOLUTION NO. 2024 - ___

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

THE DESIGN OF THE WINTER STORM HAZARD MITIGATION PROJECT IN CRESTMOOR CANYON; AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH C2R ENGINEERING, INC. FOR THE WINTER

STORM HAZARD MITIGATION PROJECT WITHIN CITY-OWNED PROPERTY WITHIN CRESTMOOR CANYON, LOCATED NEAR THE 1400-BLOCK OF CLAREMONT DRIVE IN AN AMOUNT NOT TO EXCEED $177,800; APPROVING A CONSTRUCTION CONTINGENCY OF $27,000; APPROVING A TOTAL PROJECT BUDGET IN THE AMOUNT OF $451,000; AND DETERMING THE PROJECT IS EXEMPT UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, during the winter storms of 2022-23, severe stormwater runoffs triggered landslides in the City of San Bruno (City); and WHEREAS, a geotechnical engineer was retained to provide reconnaissance at six locations, three of the landslides located on City property near the 400-block of Cunningham way, San Bruno Avenue East of the access road to Water Tank #4, and the 1400-block of Claremont Drive were determined to require engineering design and construction to install improvements; and
WHEREAS, a project was included in the FY 2023-24 Capital Improvement Program (CIP) budget to design and construct improvements at the three locations of the landslides; and
WHEREAS, the landslide occurred in City owned open space within Crestmoor Canyon behind the 1400-block of Claremont Drive on a relatively steep, graded grassy slope that is 50 to 60 feet in length and a concrete v-ditch is at the top of the slope and an access road within Crestmoor Canyon lies at the bottom of the slope; and WHEREAS, the project design (“Design”), which consists of plans and specifications that are on file with the Public Works Department, was completed in May 2023; WHEREAS, the project was advertised according to the informal bidding process of the Uniform Cost Accounting Act and City municipal Code; WHEREAS, notice inviting bids were sent to contractors who are on the Public Works Prequalified List and construction trade journals on May 10, 2024; and WHEREAS, on May 31, 2024, staff conducted the bid opening for the project and received two (2) bids; and
WHEREAS, the base bid from C2R Engineering, Inc. was in the amount of $177,800, which is $14,800 above the engineer’s estimate of $163,000; and WHEREAS, based on the contractor’s experience and performance with other agencies including San Bruno, staff determined that C2R Engineering, Inc. meets the qualifications to perform the work for the Winter Storm Hazard Mitigation Project in Crestmoor Canyon; and
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ATTACHMENT 1
2 WHEREAS, the total cost of the project, which includes design, construction, staff management, and construction contingency is $451,000; and WHEREAS, this project falls within the Statutory Exemption set forth in CEQA Guidelines, Section 15269(c), which exempts specific actions necessary to prevent or mitigate an emergency.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby:
•Approves the Design of the Winter Storm Hazard Mitigation Project in Crestmoor Canyon;
•Authorizes the City Manager to Execute a Construction with C2R Engineering, Inc. for the Winter Storm Hazard Landslides Mitigation Project within City-owned Property within Crestmoor Canyon, located near the 1400-block of Claremont Drive in an Amount not to Exceed $177,800;
•Approves a Construction Contingency of $27,000;
•Approves a Total Project Budget in the Amount of $451,000; and •Determines the Project is Exempt Under the California Environmental Quality Act ---oOo---
I hereby certify that foregoing Resolution No. 2024 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on June 25, 2024, by the following vote:

AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk

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7 5
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ATTACHMENT 2
PROJECT #: NEW Total Project Budget: 200,000$
DEPARTMENT: Public Works Total

FUNDING SOURCES
Prior
Appropriations
Estimated
Carryover
New
Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
FY2023-28
Budget
Citywide Development Impact Fees -
Utilities Facilities Impact Fee Fund -$ -$ 200,000$ 200,000$ -$ -$ -$ -$ 200,000$

PROJECT APPROPRIATIONS
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
FY2023-28
Budget
Design -$ -$ 50,000 50,000$ 50,000
Construction - - 150,000 150,000 - - - - 150,000 Total -$ -$ 200,000$ 200,000$ -$ -$ -$ -$ 200,000$

ADD PIC
Project Details
Initial Funding Year FY2023-24
Target Completion Year FY2023-24
Expended as of June 30, 2022 -$
FY2023-24
Winter Storm Hazard Mitigation Efforts
Stormwater Capital
Valley Gutter
Project Description: As a result of the late 2022/early 2023 winter storms, a landslide presented behind 1440 Claremont Drive, on a relatively steep, graded grassy slope which is about 50 to 60 feet high, and was not equipped with mid‐slope V‐ditches. A Geotech analysis recommends installing a valley gutter mid-way up the slope to collect and convey surface runoff off the slope and avoid further erosion.

Also, due to recent storms, a landslide occurred at 425 Cunningham Way, consisting of a narrow debris flow that flowed down a steep slope, over a 4‐1/2 wooden retaining wall and deposited debris onto the residents' back deck. Therefore, in order to reduce these risks Geotech analysts have suggested a permanent retaining wall will be designed and constructed to withstand debris flow impacts along the base of the slope/back of deck and patio of the residence.

The 22-23 winter storms also caused a landslide on westbound San Bruno Avenue just east of the access road to Water Tank #4. Visqueen (plastic barrier) was placed over the slide to prevent it from widening. However, due to a depression near the top of the slide, Geotech analysts have suggested additional sandbagging in the form of a sandbag catchment berm with pipe to convey collected water 321
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Sandeep Krishnamurthy, Director
SUBJECT: Consider Adoption of a Resolution Authorizing the City Manager to Execute a Letter of Intent Regarding the Sale and Acquisition of San Bruno CityNet Services Substantially as Included in the Proposal from Comcast BACKGROUND:

San Bruno CityNet Services (CityNet) has operated as an Enterprise of the City of San Bruno since 1971. As of June 30, 2023, the CityNet Fund had a negative equity balance of $21.5 million, comprised of negative cash and non-cash liabilities such as unfunded pension liabilities. The negative equity balance included $16.0 million owed to the General Fund due to multi-year reliance on advances from the General Fund to sustain operating expenditures, including franchise fees, internal service allocations, and general overhead allocations. Rates simply were not keeping pace with costs.

The Fund has been experiencing annual operating losses, including losses of $794,852 in FY23 and $859,995 in the prior year. City staff has worked diligently to improve CityNet’s revenue and subscription margins. One major step was increasing service rates between 9% and 12% effective August 1, 2023, which improved year-over-year operating income for the first six months of Fiscal Year 2023-24 (FY24). CityNet has grown increasingly technologically obsolete over the past decade. A significant City-funded capital investment would be required to bring CityNet’s technology and operations up to current industry standard, as well as rate adjustments. The Council rejected this capital request in April 2023.

With this negative equity balance in mind, in December 2023, the City issued a Request for Interest (RFI) to gauge the private-sector’s appetite to acquire CityNet's customer base and infrastructure as part of a broader strategy to ensure continuity of services to the community.

Interest was shown as part of the RFI process.

The City Council held its Annual Strategic Initiatives and Prioritization Retreat on February 2, 2024.

At the retreat, the Council reached consensus on the FY25 Strategic Initiatives and Top Priorities.

On February 13, 2024, the City Council adopted the Fiscal Year 2024-25 Top Priority Initiatives and Budget Principles. One of the five Top Priority Initiatives is “Stabilize CityNet’s Fiscal Sustainability,” which includes exploration of possible new ownership of CityNet.

On February 27, 2024, the City Council adopted Resolution No. 2024-18 amending the FY 2023- 24 Adopted Budget and transferring $21.5 million from the Community Benefit Fund (Fund 166) to the City Net Enterprise Fund to zero out the negative equity position as of June 30, 2023.

On April 9, 2024, after completion of the RFI process to assess marketplace interest in the 73 of 181
Item 6j.

Honorable Mayor and Members of the City Council
June 25, 2024

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8 2
7 acquisition of San Bruno CityNet Services, the City Council moved to the next step in generating options for the potential sale of CityNet. The San Bruno City Council adopted Resolution No. 2024-25 authorizing the City Manager to issue a Request for Proposals (RFP) for the acquisition of San Bruno CityNet Services. The RFP was issued on April 10, 2024, with a submittal deadline of May 31, 2024. The City of San Bruno had posted as part of the RFP a timeline of June 30, 2024, for the City’s response to proposal submissions.

DISCUSSION:

One qualified acquisition proposal was received on May 31, 2024, from Comcast Cable Communications, LLC (“Comcast”), after they completed a limited review of San Bruno CityNet Services. The next step in the RFP timeline requires Council action through consideration of adoption of the proposed Resolution which would authorize the City Manager to sign the non- binding letter of intent.

Responses to the RFP are non-binding, based on any proposer’s limited due diligence of CityNet and have the requirement of a proposed acquisition price. The Letter of Intent submitted by Comcast meets these conditions and provides a pathway to a binding purchase agreement with the following significant provisions:
•A proposed purchase price of $1,250 per data subscriber of 90 or greater days duration. In the proposal Comcast has offered a purchase price of $7 million, based on an assumption of 5,600 data customers.
•The maintenance of a minimum number of 5,000 data subscribers at the date of closing. There could be a downward or to be negotiated upward movement in the final closing price based on the actual number of data subscribers on the date of closing. •Satisfactory completion of additional due diligence by Comcast within a 120-day period initiated by the signing of Comcast’s Letter of Intent. Mutually acceptable levels of confidentiality may need to be maintained for aspects of the due diligence process. •Agreement by the City to indemnify Comcast from all matters arising prior to or from the sale and its acquisition of San Bruno CityNet Services. Such agreement may involve acceptance of a certain amount, yet to be determined and/or negotiated, of the sale proceeds to be held in escrow as an indemnification deposit through a period of time. •Maintenance of the post-acquisition operations of CityNet by City staff for a limited period as requested by Comcast during their detailed due diligence following execution of the LOI.

Details, including payment for such coverage, to be subject to a separate transition services agreement between the City and Comcast Corporation.

Excluded from the proposal are any real assets held by CityNet as well as our CityNet employees.

All terms would be subject to negotiation.

San Bruno CityNet Services currently serves approximately 5,900 households in San Bruno. While the market environment is competitive for the services offered by CityNet and competing providers are available, the Comcast proposal promises service continuity to the residents of San Bruno and erstwhile customers of San Bruno CityNet Services. Comcast has outlined in their proposal a plan to upgrade CityNet’s technological capabilities to a level that would allow the local operation to

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8 2
7 match their prevailing service levels in both fiber upgraded and non-upgraded areas in adjacent municipalities such as Millbrae and South San Francisco. The proposal also envisages centralization of physical Comcast customer service in the area, including San Bruno, to their existing retail location in Daly City and technical service locations across the peninsula.

Calculating the value of CityNet is complicated. The valuation by Comcast at $1,250 per subscriber values CityNet at one year’s worth of gross cash flow calculated on the following basis:

Base of 5,600 subscribers X Average Revenue Per User (ARPU) of $104.166 = $7 million While CityNet’s current actual ARPU is $119.42, Staff believes the valuation metric offered in the proposal mirrors sale metrics within the industry.

Next Steps and Timeline
If the LOI is executed, that starts a 120-day due diligence period by Comcast. During this period, the City Manager would negotiate the exact terms of the Sale Agreement and bring it back to Council for final execution in late October.

FISCAL IMPACT:

There is no fiscal impact from adoption of a Resolution. However, as currently proposed by Comcast, execution of an acceptable binding sale agreement between the City and Comcast would net $7 million (less any costs associated with the negotiation, communications and transition of the CityNet service).

ENVIRONMENTAL IMPACT:

RECOMMENDATION:

Adopt a Resolution Authorizing the City Manager to Execute a LOI with Comcast regarding the Sale and Acquisition of San Bruno CityNet Services substantially as included in the Comcast proposal.

ALTERNATIVES:

1. Direct City Manager and Staff not to pursue the execution of the LOI and pursue other options for the future of San Bruno CityNet Services

2. Direct City Manager and Staff to negotiate alternative pricing of San Bruno CityNet assets with Comcast
ATTACHMENTS:

1. Resolution

2. Comcast Proposal

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9 0
RESOLUTION NO. 2024 -

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

CITY MANAGER TO EXECUTE A LETTER OF INTENT REGARDING THE SALE AND

ACQUISITION OF SAN BRUNO CITYNET SERVICES SUBSTANTIALLY AS INCLUDED IN THE

PROPOSAL FROM COMCAST
WHEREAS, The City of San Bruno owns and operates San Bruno CityNet Services (CityNet).

CityNet delivers internet, television and Voice over Internet Protocol Telephony services to approximately 5,900 households in San Bruno;
WHEREAS on February 27, 2024, the City Council adopted Resolution No. 2024-18 amending the FY 2023-24 Adopted Budget and transferring $21.5 million from the Community Benefit Fund to the City Net Enterprise Fund to zero out the negative equity position as of June 30, 2023; WHEREAS CityNet has experienced technological obsolescence during the past decade. The Fund has been experiencing annual operating losses, including losses of $794,852 in FY23 and $859,995 in FY22;
WHEREAS, on February 13, 2024, the City Council adopted the Fiscal Year 2024-25 Top Priority Initiatives and Budget Principles and one of the five Top Priority Initiatives is “Stabilize CityNet’s Fiscal Sustainability,” which includes exploration of possible new ownership of CityNet; WHEREAS, on April 9, 2024, after completion of the RFI process to assess marketplace interest in the acquisition of San Bruno CityNet Services, the City Council moved to the next step in generating options for the potential sale of CityNet by adopting Resolution No. 2024-25 authorizing the City Manager to issue a Request for Proposals (RFP) for the acquisition of CityNet; WHEREAS, the RFP was issued on April 10, 2024, with a submittal deadline of May 31, 2024; WHEREAS, in response to the RFP a qualified proposal to acquire San Bruno CityNet Services has been received from Comcast Cable Communications, LLC (“Comcast”); and, WHEREAS, the next step in the RPF process is for the City Manager to execute the Letter of Intent substantially as included in the proposal offered by Comcast.

NOW, THEREFORE, BE IT RESOLVED that the San Bruno City Council authorizes the City Manager to execute a Letter of Intent with Comcast regarding the sale and acquisition of San Bruno CityNet Services substantially as included in the Comcast proposal. ---oOo---
I hereby certify that foregoing Resolution No. 2024 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on June 25, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

Lupita Huerta, City Clerk
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ATTACHMENT 1

Request for Proposal
Acquisition of San Bruno CityNet Services
Response of
Comcast Cable Communications, LLC
May 31, 2024
Please co
ntact:

Ted Janes
Senior Manager, Corp. Development
Comcast Corporation
1701 John F Kennedy Blvd
Philadelphia, PA 19103
Email: [email protected]
Brian Bottari
Senior Director, Govt. & Regulatory Affairs
Comcast Cable, California Region
3011 Triad Place
Livermore, CA 94551
Email: [email protected]
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ATTACHMENT 2

Acquisition of San Bruno CityNet Services - RFP Response

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Table of Contents

1. Experience .............................................................................................................................................. 3

2. Qualifications ......................................................................................................................................... 5

3. Post-Acquisition Plan ............................................................................................................................ 9

4. Acquisition Price and Other Transaction Details ............................................................................. 11

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Comcast Cable Communications, LLC (“Comcast” 1) appreciates the opportunity to respond to the Request for Proposal issued by the City of San Bruno (the “City”) on April 10, 2024 relating to the potential acquisition of San Bruno CityNet Services (the “RFP”).

Since acquiring its first system in 1963, Co mcast has a long history of efficiently evaluating, conducting diligence for, and completing M&A transactions, and we are prepared to dedicate sufficient resources to do the same with respect to this potential transaction.

The following sections describe Comcast’s experience (Section 1), qualifications (Section 2), potential post-acquisition plan if Comcast were to acquire the system (Section 3), and acquisition price and other relevant transaction details (Section 4), including our proposed letter of intent for acquiring San Bruno Ci tyNet Services (Appendix A). Please do not hesitate to reach out if you have further questions.

1. Experience

Comcast is a leading communications provider in the
United States, currently operating cable networks
across 39 states and the District of Columbia.

Comcast’s Cable division is divided into three
geographic divisions, each wi th operating regions to
ensure that the senior leadership responsible for
delivering services is close to the region’s customers.

With 32.2 million Internet customers - both residential customers (under the Xfin ity® brand) and business
services customers (under the Comcast Business®
brand), 13.6 million video custom ers, 7.6 million voice cust omers, 6.9 million wireless lines, and 62.7 million homes and businesse s passed, Comcast has established an industrywide reputation for technology lead ership, superior products, and operational efficiency.

The core of Comcast's network is a fiber backbone that stretches across the country with over 295,000 sheath miles of fi ber using advanced optics, la sers and Internet Protocol

1Note: Comcast Cable Communications, LLC is a wholly owned indirect subsidiary of Comcast Corporation.

Comcast Corporation is a publicly traded company that through its cable division subsidiaries, provides cable television, voice, and Internet services. For t he purposes of this response, the term “Comcast” may refer to Comcast Corporation, Comcast Cable Communications, LLC, or one or more of the cable division operating subsidiaries or affiliates holding cable television franchises in the relevant jurisdictions.

32.2 million
residential and business
services broadband
customers

62.7 million
serviceable homes and
businesses

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(“IP”) routing technologies. Dozens of Co mcast’s regional area networks interconnect, creating this fiber backbone t hat delivers high-speed Internet, video, and voice services to tens of millions of cust omers throughout the country. IP te chnology ties this network together, creating a highly scalable connectivity platform, or “IP core.” The majority of the serviceable locations in Comcast’s nationwide footprint, including customers in California, can access Xfinity Gigabit Internet and Comcast Business Gigabit services.

Comcast’s significant ongoing network and technology investments enable it to continually deliver innovative and scalable products and services that keep residents and businesses on the cutting edge and meet evolving community demands. In the last three years, Comcast has invested over $20 billion in capital nationwide, building, maintaining, and operating one of the most extensive fibe r-based networks in the country. Moreover, historically Comcast has doubled its network capacity every 2 ½ years to stay well ahead of demand. This is why, during the COVID-19 pandemic, when Internet traffic spiked more than 30% as people rapidly transitioned to wo rking and learning from home, Comcast’s network continued to deliver fast and reliable Internet connectivity, even under the heaviest usage.

Over the years, Comcast has been rec ognized by numerous organizations and publications for leadership in a variety of areas, including Human Resources, Diversity, Technology, Product Excellence, Customer Service and Community Investment. In particular, Comcast has been recognized by Fa st Company as one as one of the Most Innovative Companies for 2024 and has won four Technology and Engineering Emmy Awards. For a list of other aw ards and recognitions, please see:
https://corporate.comcast.com/press/awards.

Managerial Experience

Comcast’s decentralized organizational structure allows it to leverage its national reach while operating at a local level. The fo llowing resumés provide examples of the experienced Comcast leadership team for t he California Region, which is based in Livermore, CA.

David Tashjian, Senior Regional Vice President, California David Tashjian currently serves as Comcast’s SVP of the California Region with more than 18 years at Comcast and 28 years in the i ndustry. In this role, David is responsible for all Comcast cable operations in Cali fornia. He leads nearly 3,500 employees and serves more than 3.5 million customers, driving annual rev enue of $6 billion. David is responsible for technical operations, engi neering, business operations, marketing, external affairs, human resources, growth, cu stomer experience, fi nancial health of the

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region, and most importantly the satisfaction and engagement of the team. Most recently, David served as Senior Vice President of Comcast’s Oregon/Southwest Washington Region, which serves ~1 million residential and business customers, and previously held the title of Vice President of Sales Strategy and Operations for Comcast’s West Division.

Marcos Vicente, Vice President of Finance and Accounting, California Marcos Vicente is responsible for provid ing executive-level guidance for all financial reporting and budgeting activities for Comcas t’s entire California Region. He works collaboratively across the Region and Comcas t’s West Division to provide strategic leadership throughout all aspects of the R egion’s Finance and Bu siness Operations.

Marcos has over 22 years of industry experience and extensive knowledge of the business. He has held numerous Finance and Business Operations roles within Comcast’s Mountain West Region and West Division office. Having previously served as Comcast’s Regional Vice President of Finance and Business Operations for the Midwest Region, Marcos’s leadership and growth mindset skills have been instrumental to Comcast’s success.

2. Qualifications

Proximity to San Bruno

The proximity of Comcast’s existing network to San Bruno CityNet Services’ operations would enable Comcast to integrate its network with the City’s more quickly and at lower costs than competitors without existing infrastructure nearby. Please see the map below to reference the proximity to Comcast’s existing footprint in green.

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Comcast also has a retail Xfinity Store, wh ich handles customer inquiries, bill payment, and equipment pick up and drop off and featur es Xfinity's residential products and services, within a 15-minute drive of San Bruno located at 153 A Serramonte Center, Daly City, CA 94015. Comcast also has several field offices on the San Francisco Peninsula where technicians are stationed and dispatched.

General Qualifications

Comcast operates one of the largest hybrid fi ber coaxial (“HFC”) networks in the nation.

In addition to an all-fiber backbone that c onnects communities coast-to-coast, Comcast has consistently added and expanded fiber th roughout the portion of its network that connects directly to customers (called the “access” network). Comcast has extended its fiber network closer to customers’ homes, including numerous fiber-to-the-home (“FTTH”) and fiber-to-the-premise (“FTTP”) deployment s delivering Comcast’s full range of services to both commercial and residentia l customers and capabl e of up to 10 Gbps speeds for residential installations and 100 Gbps speeds for commercial installations.

Comcast’s fiber network is continuously monitored and protected by proprietary, internally developed artificial intelligence (“AI”) and machine learning technologies that can automatically detect issues like fiber tears and dramatically reduce the estimated time to repair. In a world where fiber cuts and tear s are a daily experience across the country,

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smart AI that detects and mitigates such incidents can
mean the difference between customers being offline
for a few minutes or several hours.

Comcast engineers know that constructing a fiber
network is only the beginning of delivering reliable
service to customers. Co mcast network engineers,
software developers and AI scientists leverage
Comcast’s extensive background in software
development and machine learning to build, deploy,
and evolve tools that continuously monitor, adjust, and improve network performance at every level. This
technology is closely linked to Comcast’s multi-year
work to digitize and virtualize its network, which not
only improves performance, but vastly increases
visibility into the network.

Comcast’s experience in building smart, digital and increasingly virtualized broadband networks protected by self-healing technolog ies and robust cybersecurity sets it apart from other providers. The network has multiple layers of security that automatically detect and block hundreds of thousands of cyber event s every second and a team of security experts who work to protect customers 24 hours a day, 365 days a year.

About the Comcast Network

Comcast’s next-generation network and Internet experience are powering homes today and into the future:
 Ultimate Capacity: Xfinity customers connect nearly 1 billion devices across Comcast’s network annually. The next-gener ation Xfinity gateways deliver the most advanced WiFi technology carrying three times more bandwidth to power streaming, gaming, videoconferencing, and more, simultaneously.  Fastest Internet: More than a third of Xfinity In ternet customers subscribe to gigabit speed products. Recently Comcast connected the first customers in the world to a DOCSIS 4.0 connection, deliv ering symmetrical gigabit speeds over existing connections to customers’ homes with plans to continue to roll out these speeds across the country over the coming years.
 Unprecedented Coverage: The latest Xfinity Gatewa y provides a more reliable connection throughout the home. Customers can get wall-t o-wall WiFi coverage with a powerful xFi Pod that extends coverage to hard-to-reach areas. +50k
Since 2017, Comcast has
built over 50k new miles of
fiber into its network.
$20B
In the last three years,
Comcast has invested over
$20 billion in capital
nationwide, building,
maintaining, and operating
one of the most extensive
fiber-based networks in the
country.

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 Most Reliable Connection: Comcast is scaling the nation’s largest and most reliable network that passes over 62 million homes and business and counting.

The company recently launched Storm-Ready WiFi , a new device that comes powered with cellular and battery backup to help keep customers connected even when the power goes out.
 Ultra-Low Latency: The Comcast Network and the latest xFi Gateway are a powerful combination that deliver ultr a-low latency for bandwidth-intensive applications, such as video games, a fast-growing category with Xfinity households averaging more than one gaming console per home.

For more information, visit https://www.xfinity.com/10G.

Community Investment

Comcast is also committed to serving residences and
businesses on a non-discriminatory basis with a variety of service options for affordable home Internet for qualifying households. Currently, under Comcast’s Internet
Essentials offering - the most comprehensive and
successful low-income broadband adoption program in the nation - qualifying hous eholds can obtain broadband
service at speeds of up to 50 Mbps/10 Mbps for
$9.95/month (plus applicable taxes, fees , and surcharges), or speeds of up to 100 Mbps/20 Mbps for $29.95/month (plus applicable taxes, fees, and surcharges), as well as free digital skills training in person and online. Internet Essentials customers have the option to purchase a low-cost Internet-ready computer, as well as one line of Xfinity Mobile at no additional cost for up to 12 months.

Since launching in 2011, Comcast has made dozens of improvements to the Internet Essentials program, including expanding eligibility 12 times—bri nging Internet Essentials to new audiences such as public housing residents, low-income veterans, seniors, and even community college students. Comcast has a history of in creasing speeds and enhancing its Internet Essentials program and anticipates continuing to do so in the future. In total, Comcast has connected more than 10 million low-income Americans, including over 2 million California residents, to the power of the Internet at home through this program.

In 2020, Comcast established its award-winning “Lift Zones” initiative to complement the Internet Essentials program. Working with its network of thousands of non-profit partners and city leaders, Comcast has launched more t han 1,250 Lift Zones, including over 150 $9.95/month
Internet Essentials

$29.95/month
Internet Essentials Plus

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in California. Lift Zones provide free, r obust WiFi in community centers to support students who, for a variety of reasons (inc luding homelessness or housing insecurity), are simply unable to participate in distance learning at home. Lift Zones also serve diverse adult populations, as they enable access to hundreds of hours of free digital skills training for remote work, telehealth services, and more.

For more information, please see the 2023 Impact Report (https://corporate.comcast.com/impact/report/2023) and the 2022 Internet Essentials Progress Report ( https://corporate.comcast.com/stories/2022-internet-essentials- progress-report).

Comcast has been a proud participant in the federal Affordable Connectivity Program (“ACP”) and announced options available to customers affected by the end of ACP. For more information on Comcast’s affordable Inte rnet and mobile offerings following the federal government’s announcement that April 2024 will be the last month that ACP is fully funded, see https://www.xfinity.com/learn/internet-service/acp. Additional information is available at: https://corporate.comcast.com/stories/comcast-remains- dedicated-to-closing-the-digital-divide.

Additionally, Comcast currently offers a range of affordable options to meet the needs of every budget, including, but not limited to:

 Comcast NOW offers affordable, pre- paid Internet, mobile, and TV plans – including home Internet plans starti ng at $30/month fo r 100/10 Mbps and NOW Mobile plans offering unlimited 5G and WiFi hotspot data for $25 per month.

 Unlimited access to the nation’s largest network of WiFi hotspots through  WiFi Pass, for $10 for the first month and $20 per month thereafter.

3. Post-Acquisition Plan

Pending further due diligence, if Comcast were to acquire San Bruno CityNet Services, Comcast would aspire to offer customers in the City its full suite of products and services, including Internet, video, voice, mobile, and home security services.

What Customers Can Expect

For a transition period following the acquisition, customers would continue to receive the same level of service they currently have with San Bruno CityNet Services.

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Following that transition period, and subject to Comcast completing the necessary enhancements to the existing San Bruno CityNet network including tying it into Comcast’s network, Comcast would offer customers mult iple choices of residential and commercial Internet services, depending on the customers’ specific needs, with speeds of up to 2 Gbps download and 200 Mbps upload throughout most of the network. Fiber portions of the network would be capable of gigabit symme trical speeds. Comcast expects it would make significant investments in San Bruno to integrate the network and achieve these enhancements. Comcast proactively monitors and maintains its network 24/7 through its dedicated Network Operations Center, which would cove r the San Bruno CityNet Services network upon completion of this interconnect.

Transition Services Required

If Comcast were to acquire San Bruno CityNet Services, in order to ensure continuity and a successful transition, Comcast would re quire temporary access to the system’s headend and certain network employees, whic h Comcast would expect the City to continue to operate / employ and provide to Comcast under a separate transition services agreement. However, Comcast would excl usively own and operate the network and be responsible for future operation and maintenance costs thereof, including the cost of tying the network into Comcast’s existing network and any necessary upgrades in connection therewith.

Supporting New Customers and Communities

When Comcast brings its services to new markets, we activate a time-tested action plan that has proven highly effective in suppor ting our new communities. We work hand-in- hand with our partners to ensure everyone involved in the project has the information and tools necessary to know what our service offerings are, how they can be accessed, and, in the event an issue arises, how that will be resolved.

Part of the process proposed for transitioning residential and business customers over to Comcast Xfinity and Comcast Business servic e offerings includes ensuring that the customer journey is seamless. Our top pr iority is keeping the residents and businesses of San Bruno informed and ensuring a smooth process throughout the roll out of Comcast products and services and beyond.

Moreover, we recognize the significance of partnering with the communities we serve, as that is the foundation of our success. Comc ast will continue to engage and collaborate with local stakeholders to ensure informatio n is shared before, throughout and after the transition period. Furthermore, our team is fully equipped to handle notifications and

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messaging, deploying resources in the comm unity in support of San Bruno's residents and businesses to educate and simplify the process, providing comprehensive support for customer transitions.

4. Acquisition Price and Other Transaction Details

Attached as Appendix A is a non-binding letter of intent (the “LOI”) that sets forth the purchase price that Comcast would be willing to pay for the acquisition of substantially all of the assets of San Bruno CityNet Services as detailed in the RFP and subject to the exceptions noted therein (which purchase pric e would be subject to certain adjustments as described in the LOI), along with the other proposed terms for such transaction. We have received all necessary internal approvals to enter into the LOI if the City selects Comcast as the winning bidder, following whic h we would proceed to complete our due diligence investigation of the system and negotiate a definitive purchase agreement with the City.

Thank you for the opportunity to respond to the RFP. We look forward to further discussion regarding a potential acquisition of San Bruno CityNet Services by Comcast.

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Appendix A: Non-Binding Letter of Intent

See attached.

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Travis Karlen, Community Services Director SUBJECT: Consider Adoption of a Resolution Approving the Text of the Dedication Plaque for the San Bruno Recreation and Aquatic Center and Installation of a Recognition Wall Inside the Facility to Memorialize Individuals that Contributed to the Project, and Determining that the Project is Exempt Under the California Environmental Quality Act
BACKGROUND:

The construction of the City of San Bruno Recreation and Aquatic Center (RAC) is nearing completion, with the dedication and grand opening tentatively scheduled for the end of August 2024. As is customary for public facilities, a dedication plaque will be installed at the entrance to mark the dedication.

It has been a considerable time since the City has dedicated a building of this magnitude. The plaques placed at City facilities exhibit various styles, as illustrated in Attachment 2.

DISCUSSION:

The RAC project has spanned several years from its inception to its dedication. Numerous community members, foundation representatives, City staff, and elected officials have contributed to this endeavor.

San Bruno Community Foundation Approved Recognition Sign The grant agreement with the San Bruno Community Foundation (SBCF) requires a recognition sign to be installed at the Recreation and Aquatic Center, as follows:

In addition, Grantee agrees to acknowledge the support of SBCF on signage permanently installed at the community recreation and aquatic center to be constructed in furtherance of the Grant Purposes. The signage shall contain the following language: “The San Bruno Recreation and Aquatic Center is made possible in large part by grants totaling Fifty Million Dollars from THE SAN BRUNO COMMUNITY FOUNDATION, in memory of those who lost lives and property in the devastating 2010 explosion and fire in the Crestmoor neighborhood.” The proposed signage shall be presented to SBCF by Grantee in advance of finalization and installation at the recreation and aquatic center and shall be subject to SBCF’s prior approval, which shall not be reasonably withheld. 94 of 181
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This commitment to the SBCF is being met with minor changes recently approved by the SBCF Board of Directors. The acknowledgement and placement for the SBCF Recognition Signage are illustrated in Attachment 3.

Recreation and Aquatic Center Dedication Plaque
The past practice of the City of San Bruno is that the dedication plaques generally include the Mayor and City Council members, and sometimes include key staff or commission members.

Due to the magnitude and length of this project, there have been many contributors. There have been numerous discussions regarding ways to commemorate the contributions of the individuals who brought this project to completion.

The City Council is requested to review the recommended actions based on past practices, evaluate all parties involved in the project, and provide staff with guidance on the wording for the dedication plaque for the Recreation and Aquatic Center. After meeting with members of the Foundation on June 11, 2024, there was a desire to add recognition of the Foundation on the dedication plaque. The Council may consider this request.

Finally, the City Council is asked to consider the recognition wall to observe the many contributions to the new Recreation and Aquatic Center. The recognition wall could be constructed from the wood salvaged from the former Recreation and Aquatic Center wood floor and would be installed in the area adjacent to the classrooms in the lower corridor.

Staff recommends that the City Council approve the recommended RAC Dedication Plaque and Recognition Wall, as shown in Attachment 4. Alternatives are presented as Attachment 5 and 6, and further discussed in the alternatives section.

FISCAL IMPACT:

There is no fiscal impact associated with adoption of the resolution. The design and installation of one dedication plaque is included in the design contract with Group 4 Architects and the Contribution/Recognition wall will be completed at no additional cost to the City.

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 Approving the Text of the Dedication Plaque for the San Bruno Recreation and Aquatic Center and Installation of a Recognition Wall Inside the Facility to Memorialize Individuals that Contributed to the Project (as shown in Attachment 5), and Determining that the Project is Exempt Under the California Environmental Quality

ALTERNATIVES:

1. Adopt a Resolution establishing the verbiage for the dedication plaque to include City Council, key City staff, and the San Bruno Community Foundation Board of Directors current members as depicted in Attachment 5.

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2. Adopt a Resolution establishing the verbiage for the dedication plaque to include City Council, key City staff, and the San Bruno Community Foundation Board of Directors current members and an additional plaque commemorating key contributors to the project as depicted in Attachments 6. Note: If Alternative 2 is selected, the staff will complete a final review of contributors to ensure there are no exclusions.

ATTACHMENTS:

1. Resolution

2. San Bruno City Facility Plaques

3. San Bruno Community Foundation Approved Recognition

4. Recommended RAC Dedication Plaque and Recognition Wall

5. Alternative 1 – RAC dedication plaque including staff and foundation members

6. Alternative 2 – RAC dedication plaques including all contributing members

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2 4
8 1
RESOLUTION NO. 2024 -

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

THE TEXT OF THE DEDICATION PLAQUE FOR THE SAN BRUNO RECREATION AND

AQUATIC CENTER AND APPROVE INSTALLATION OF A RECOGNITION WALL INSIDE

THE FACILITY TO MEMORIALIZE INDIVIDUALS THAT CONTRIBUTED TO THE PROJECT; AND DETERMINING THE PROJECT IS EXEMPT UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, the City commissioned Group 4 Architecture to develop concepts for a combined recreation and aquatic center in 2017; and
WHEREAS, in July 2018, the City authorized Group 4 Architecture to engage Phase 2 work through construction and completion; and
WHEREAS, the City held a Groundbreaking event on August 27, 2021 for the new Recreation and Aquatic Center; and
WHEREAS, the City began demolition of the former San Bruno Recreation Center and City Pool in October 2021 to make way for the new facility; and WHEREAS, construction on the new facility began in early 2022 and continued through summer 2024.

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

1. Approves the text of the dedication plaque as shown in the Staff Report Attachment 4 “Recommended RAC Dedication Plaque and Recognition Wall” for the San Bruno Recreation and Aquatic Center;

2. Approves the installation of a recognition wall as shown in the Staff Report Attachment 4 “Recommended RAC Dedication Plaque and Recognition Wall” to memorialize individuals that contributed to the project; and Determining the project is exempt under the California Environmental Quality Act. ---oOo---
I hereby certify that foregoing Resolution No. 2024 -
was adopted by the San Bruno City Council at a regular meeting on June 25, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

Lupita Huerta, City Clerk
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ATTACHMENT 1
Dedication Plaques – San Bruno Facilities
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ATTACHMENT 2
DRAFT
Group 4
1 San Bruno Recreation & Aquatic Center

SBCF RECOGNITION SIGN
UV Printed Logo
1/8”thick stainless steel
le
tterforms, 1” tall
3/8” thick glass panel
Metal Stand-Offs
Wall beyond
Sample Sign for Reference Only
4 0”
24”
Dimensional 1/16” thick lettering,
1” tall
Dimensional 1/16” thick
le
ttering, ¾” tall
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ATTACHMENT 3
2 4
8 4
Recommended Option – Dedication Plaque and Recognition Wall 100 of 181
ATTACHMENT 4
2 4
8 4

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2 4
8 4

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2 4
8 4

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2 4
8 5

SAN BRUNO

RECREATION & AQUATIC CENTER

DEDICATED TO THE COMMUNITY OF SAN BRUNO
AUGUST 2024

CITY COUNCIL
RICO E. MEDINA MAYOR

MICHAEL SALAZAR VICE MAYOR
SANDY ALVAREZ COUNCIL MEMBER, DISTRICT 1

TOM HAMILTON COUNCIL MEMBER
MARTY MEDINA COUNCIL MEMBER, DISTRICT 4

CITY STAFF
ALEX D. MCINTYRE CITY MANAGER

TRISHA ORTIZ CITY ATTORNEY

DARCY SMITH ASSISTANT CITY MANAGER
TRAVIS M. KARLEN COMMUNITY SERVICES DIRECTOR

MATTHEW LEE PUBLIC WORKS DIRECTOR

SAN BRUNO FOUNDATION BOARD OF DIRECTORS

MALISSA NETANE-JONES PRESIDENT

JIM RUANE VICE PRESIDENT

PAK LIN TREASURER

RAUL GOMEZ SECRETARY
SUPRIYA S. PERRY BOARD MEMBER

IRVING TORRES BOARD MEMBER

BELINDA WONG BOARD MEMBER

LESLIE HATAMIYA EXECUTIVE DIRECTOR

CONSTRUCTION ADVISORY COMMITEE
RICO E. MEDINA MAYOR

MICHAEL SALAZAR VICE MAYOR

KRIS GONZALES PARKS AND RECREATION COMMISSION

AUROS HARMAN PLANNING COMMISSION

KELLY LETHIN PLANNING COMMISSION

MALISSA NETANE-JONES SAN BRUNO COMMUNITY FOUNDATION

MICHAEL PALMER PARKS AND RECREATION COMMISSION

JIM RUANE SAN BRUNO COMMUNITY FOUNDATION

PARKS AND RECREATION COMMISSION

MICHAEL PALMER CHAIR

KRIS GONZALES VICE CHAIR

LORRY GREENBERG COMMISSIONER

JESSICA MARTINUCCI COMMISSIONER

DAVE NIGEL COMMISSIONER

JENNIFER WILSON COMMISSIONER

LUCY ZAMATTIA COMMISSIONER
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ATTACHMENT 5
Dedication Plaques Option 3
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ATTACHMENT 6
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: June 25, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
Esther Garibay, Financial Services Manager
Brian Liu, Management Analyst
Yu-Chiao Chao, Accountant
John Mercado, Accountant
SUBJECT: Hold a Public Hearing on the Fiscal Year 2024-25 Capital Improvement Program Budget; and Consider Approving: (i) a Resolution Adopting the Fiscal Year 2024-25 Budget, (ii) a Resolution Establishing the Fiscal Year 2024-25 Appropriations Limit of $55,305,709, (iii) a Resolution Adopting the City of San Bruno’s Financial Policies for Investments, Fund Balances, Award of Contracts, and Debt Management; and (iv) a Resolution Amending the Fiscal Year Amended Adopted 2023-24 Budget.

BACKGROUND:

The City Manager’s Recommended Fiscal Year 2024-25 Budget was released on May 17, 2024, following eleven public meetings at which City Council received updates and provided direction on essential elements of the budget document. The Recommended Budget was balanced, maintained and expanded services, and included investments in the City’s future. City Council formally received and discussed the Recommended Budget at their June 11 meeting and directed staff to return with the final budget and enabling resolutions on June 25, City Council adoption. The City’s fiscal year begins on July 1.

EXECUTIVE SUMMARY
The purpose of this agenda item is to receive City Council approvals of resolutions necessary to enact the programs, services, and capital infrastructure improvements captured in the FY25 Budget. The recommended actions fulfill regulatory requirements and operational policies and procedures.

The report is organized into five sections, all directly related to adoption of the FY25 Budget:
• Section 1 – Capital Improvement Program Public Hearing. Government Code 66002 provides that the City’s Capital Improvement Program (CIP) shall be adopted by resolution at a noticed public hearing. Members of the public had the opportunity to participate in the budget process at three public meetings: the City Council retreat on February 2, 2024, the Council’s CIP study session on March 25, 2024, and presentation 106 of 181
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6 of the City Manager’s Recommended FY25 budget at the Council’s meeting on June 11, 2024.
•Section 2 – FY25 Budget Adoption (Attachment 1). The enabling FY25 Budget Adoption resolution authorizes revenue across all funds $210.11 million and expenditures across all funds totaling $292.37 million. The recommended resolution incorporates several changes focused on improving the Budget Book’s usability and corrections to special revenue and enterprise funds appropriations as discussed in Section 2. •Section 3 – FY25 Gann Initiatives Appropriations Limit Adoption (Attachment 2). The enabling FY25 Appropriations Limit resolution fulfills requirements under the Gann Initiatives to calculate the City’s ability to collect and subsequently appropriate general taxes. The City is below the Appropriations Limit for Fiscal Year 2024-25 by 19.33 percent.
•Section 4 – Financial Policies (Attachment 3). This section outlines recommended changes to the City Council adopted financial policies which were all adopted independently. The recommendation includes combining all policies into a single document that is reviewed annually and promotes transparency in the City’s fiscal management practices.
•Section 5 – FY24 Budget Amendments (Attachment 4). Section 5 summarizes multiple recommended year-end budget amendments to the FY24 budget. The amendments largely move monies between funds to establish implement the City Council adopted Fund Balance policy and to closeout the American Rescue Plan Act (ARPA) Fund. The recommended amendment includes funding for the $630,000 budget for repairs related the 2022-23 winter storm emergency.

DISCUSSION:

Section 1 – Capital Improvement Program Public Hearing
Table 1 summarizes new and carryover appropriations by Fund for the Capital Improvement Program Budget. Project details are available in the Fiscal Year 2023-24 Budget Book (Exhibit A to Attachment 1).

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6 Table 1 – FY25 Recommended Capital Improvement Program Appropriations Fund
Resources:

Revenue,
Transfers In &
Use of
Assigned Fund
Balance
Requirements:

Expenditures &
Transfers Out
Net Increase/
(Decrease) to
Ending Fund
Balance as of
6/30/25
003 One-Time Revenue $ - $ 5,600,000 $ (5,600,000) 005 Measure G District Sales Tax - 4,590,729 (4,590,729) 101 Gas Tax - 375,000 (375,000)
102 Measure A Transportation Tax - 150,000 (150,000)
104 Measure W Transportation Tax - 600,000 (600,000)
133 Restricted Revenues - 250,000 (250,000)
160 Community Facility Impact Fee - 535,000 (535,000)
162 General Government Impact Fee - 190,000 (190,000)
166 Community Benefit Fund - 663,000 (663,000)
201 Parks And Facilities Capital 6,626,995 14,978,207 (8,351,212) 203 Streets Capital 9,547,038 26,149,700 (16,602,662)
207 Technology Capital 5,975,350 8,135,517 (2,160,167)
611 Water Fund 6,185,333 48,585,977 (42,400,644)
621 Stormwater Fund 3,008,119 4,886,074 (1,877,955)
631 Wastewater Fund - 40,095,668 (40,095,668)
Total CIP Appropriations $ 31,342,835 $ 155,784,872 $ (124,442,037) Section 2 – FY25 Budget Adoption (Attachment 1)
The City Council received the City Manager’s Recommended Fiscal Year 2024-25 (FY25) Budget at their meeting on June 11, 2024, and directed no changes. The Draft City Council Adopted FY25 Budget Summary (FY25 Budget Summary), Exhibit A to Attachment 1, formally adopts the FY25 budget appropriations by fund and authorizes the expenditure of those funds in FY25. As presented on June 11, the overall expenditure appropriations totaled $288.77 million.

The budget has been updated to incorporate the following adjustments increasing the overall expenditure appropriations to $292.37, as summarized in Table 2:

1. Corrections for clerical errors

2. Capital Improvement Program Appropriations for FY25

3. Updates to Improve Budget Transparency

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6 Table 2 – Appropriations Reconciliation: Recommended to Amended FY25 Budget Reconciling Item
Resources:

Revenue,
Transfers In &
Use of Assigned
Fund Balance
Requirements:

Expenditures
& Transfers
Out
Net Increase/
(Decrease) to
Ending Fund
Balance as of
6/30/25
Recommended FY25 Budget,
June 11, 2024 $187,487,341 $288,771,032 $(101,283,691)

1. Corrections for Clerical Errors
New Community Development Fund
reconciliation (735,000) 57,100 (792,100)
Add Water operations vehicle - 103,000 (103,000)
Add Wastewater operations vehicle - 70,000 (70,000) Add Wastewater Debt Service
accounts - 1,003,294 (1,003,294)
Add Water Debt Service accounts - 390,430 (390,430) Reduce Overbudgeting of Non-
General Fund unfunded pension
liability payment
- (1,203,078) 1,203,078
Reduce Overbudgeting of Non-
General Fund leave buyouts - (92,964) 92,964
Subtotal (735,000) 327,783 (1,062,783)

2. Capital Improvement Program (CIP)
Appropriations
Funding in FY25 for the CIP Winter
Storm Project as it was included in the
FY24 Year-End Budget Amendment
- (630,000) 630,000

3. Updates to Improve Budget
Transparency
Update to Estimated CIP Carryovers 16,335,260 (3,118,556) 19,453,816 Include Estimated Purchase Order/
Encumbrance Carryovers and Use of
Assigned Fund Balance
7,021,584 7,021,584 -
Subtotal 23,356,844 3,903,028 19,453,816
Adopted FY25 Budget Summary,
June 25, 2024 $210,109,185 $292,371,843 $(82,262,658)

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6 These adjustments collectively represent several necessary or best-practice administrative procedures, ensuring that there is transparency and that the various stakeholders retain their respective roles and responsibilities. Except for the final item in the list, each of these adjustments or corrections may be done at any time throughout the year, with the typical cadence being in parallel with either the budget adoption or mid-year amendments, given the increased budgetary activity and focus during those periods. The final item, the closeout of ARPA grant reporting, streamlines grant closure and reporting requirements to eliminate future audit and staff expenditures.

Material changes to the Recommended FY24 Budget that are now included in the Adopted FY25 Budget Summary are:

1. Net Change of ($1.06) million to correct clerical errors Community Development Fund - The FY25 budget development cycle included assumptions about creating two new Special Revenue Funds, one for the Recreation and Aquatics Center and the other for Community Development. The Community Development Fund now includes a beginning fund balance, including Community Development fees historically accounted for in the Restricted Revenue Fund, to prevent commingling with the General Fund. Making these updates before budget adoption improves clarity for year-end procedures, reduces future audit and reporting efforts, and does not change overall appropriations.

Water and Wastewater Enterprises - An omission related to the transition of budget systems and presentation styles resulted in several items being erroneously excluded from the FY25 recommended budget for debt services and capital outlay in the water and wastewater operating funds. The capital outlay omissions included a vehicle in Water and another in Wastewater. City staff also identified double counting of the unfunded pension liability allocation and leave buy-outs in the Water and Wastewater Funds that partially offset the omission. Additionally, the new fund roll-up omitted the water and wastewater debt service accounts. The corrections do not materially impact the Water or Wastewater Enterprises, but bringing these corrections as early as identified comports with best practices in governmental finance.

Presentation of Community Services Staffing - City staff’s presentation of full-time equivalent personnel (FTE) in Community Services was understated by 1.00 FTE; 35.00 rather than 36.00 FTEs. The oversight increases the overall City-wide headcount from 280.00 to 281.00. Like a previously identified error with Community Services staffing, Finance, and Community Services collaborated to track the headcount shifts resulting from the elimination of ARPA funded FTEs and creation of the new RAC Special Revenue Fund. The oversight does not impact budgeted expenditures as it was included in the gross salaries for Community Services but was disconnected from the presentation of FTE.

2. Net change of ($0.63) million for Winter Storm Hazard Mitigation Project in Crestmoor Canyon Moved from FY25 to FY24 as part of the Year-end FY24 Budget Amendment.

On June 25, 2024, the City Council will consider approving the Winter Storm Hazard Mitigation Project in Crestmoor Canyon. As noted in the staff report, sufficient funds are

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6 included in the Recommended FY25 Budget, however City staff recommends advancing the budget appropriation to FY24 for accounting and budgeting consistency.

3. Net change of $19.45 million from Updates to Improve Budget Transparency $7.02 million Inclusion of Purchase Order (Encumbrance) Carryover Estimates Updated Capital Improvement Program Carryovers - The Recommended FY25 Budget included estimated CIP carryovers as of March 31, 2023. The Adopted FY25 Budget Summary has been updated to include estimated carryovers based on 11 months of expenditures, providing a more accurate budget for the early months of the new fiscal year. Past practice deferred updates to the capital project carryovers until January or February, leaving the available project budget in limbo until the City Council approved carryover true-ups. The recommended resolution includes authorization for City staff to make administrative budget amendments to reflect actual capital project carryovers before the mid-year budget amendment. The new process reduces administrative burdens and provides more accurate budgets for project managers by advancing adjustments earlier than the mid-year process.

Inclusion of Purchase Order (Encumbrance) Carryover Estimates - Consistent with past practices, the Recommended FY25 Budget did not include estimated purchase order encumbrance carryovers. Encumbrance carryovers occur when the City has contractually committed to goods or services spanning multiple fiscal years and were procured with approved budget appropriations in a prior fiscal year. Excluding encumbrances from the adopted budget understates the City's financial commitments.

However, the City has historically amended the budget at mid-year to increase the expenditure budget commensurate with outstanding purchase orders after the year-end closing process.

City staff recommends adopting the budget with an estimate of the purchase order carryover. The net revenue/(expenditure) impact is net zero because the encumbrance assigned fund balance is a resource that offsets the budgetary impact. The Adopted FY25 Budget Summary reflects the estimated encumbrance carryover and provides a complete picture of the City's budgeted FY25 expenditures. The recommended resolution includes authorization for City staff to make administrative budget amendments to reflect actual purchase order encumbrance carryovers before the mid- year budget amendment. This new process not only reduces administrative burdens but also significantly enhances the accuracy of budgets for budget managers by advancing adjustments earlier than the mid-year process, instilling confidence in financial planning.

Section 3 – FY25 Gann Initiatives Appropriations Limit Adoption (Attachment 2) The Gann Initiatives, Proposition 4 and 111, established the Gann or Appropriations Limit (Limit) to regulate tax revenue management for all public agencies in California. As approved by California voters, the Limit caps the tax-generated revenue that a public agency can receive and appropriate each year. The Limit is determined based on each agency's 1978-79 base year appropriation of tax proceeds and is adjusted annually to account for cost-of-living and population growth.

The Gann Initiatives Appropriations Limit Report, Exhibit A to Attachment 2, details the City's FY25 Limit calculation as adjusted by indexes provided by the California State Department of

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6 Finance. For San Bruno, the FY25 appropriation limit is $55,305,709, which reflects adjustments for cost-of-living (3.62%) and population growth (-0.50%).

To determine compliance with the Limit, the City compares revenues subject to the Limit with estimated proceeds from taxes adjusted for certain exemptions. Revenues subject to the Limit are proceeds from property, sales, cannabis, transient occupancy, and business taxes.

Exemptions from the Limit include certain expenditures, such as those for debt service, capital outlay, and federal mandates. For FY25, the City’s Limit is $55.3 million, and the FY25 General Fund appropriations subject to the Limit total $44.6 million. Therefore, the City's FY25 budget is

19.33% below the FY2024-25 Limit. If proceeds from taxes subject to the Limit exceed the Limit, the City must determine whether to seek voter approval to override the Limit or refund taxes collected more than the Limit.

Section 4 – Financial Policies (Attachments 3 & 4)
As part of the annual budget process, City staff reviews various City Council adopted financial policies to ensure that the policies remain up to date and reflect best practices. The recommended action amends previously adopted policies as follows:

1. Investment Policy
City Council adopted Resolution 2023-103, which established the current Investment Policy. Following Finance’s annual review, the following policy amendment is recommended:
a. Increase the “Aggregate Maximum % of Portfolio” for Money Market Funds from 20% to 40%, and the “Per Issuer Maximum % of Portfolio” from 10% to 15%, to enable the City to fully capitalize on the current high interest rates and yields.

2. Fund Balance Policy
City Council adopted Resolution 2023-109 establishing the current Fund Balance Policy.

As part of finance’s annual review, the following policy amendments are recommended:
a. Section IV.A – Clarify the presentation of interfund balances for better financial information disclosure.
b. Section V – Update General Fund description to recognize that the Recreation and Aquatics Center and Community Development will no longer be part of the General Fund. Further, staff recommends removing the ARPA fund given that the City’s intent is to fully expend the remaining ARPA monies by June 30, 2024. c. Section VII – Clarify the possible uses of unassigned fund balance. d. Section VIII – Update special revenue fund descriptions, add newly created funds and remove funds to be closed out.
e. Section XIII – Remove Recology San Bruno Custodial Fund. The fund will be closed out at the end of fiscal year 2024 reflecting the complete transition of solid waste billing services from the City to Recology San Bruno.

3. Award of Contract Policy
City Council adopted Resolution 2024-14, establishing the current Award of Contract Policy. As part of Finance’s annual review, the following policy amendments are recommended:
a. Section III – Update the policy to clarify that this includes any contract amendments.
b. Section IV – Allow a 10% contingency for Contract amendments that exceed the City Manager’s signing authority.

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6 c. Section VI - Exempt discrete professional or contract services under $15,000 from the standard form agreement requirements provided sufficient available budgetary funds, and the department receives a purchase order. This operational efficiency seeks to reduce the administrative burden for services with minimal risk to the City. Examples include graphics designer to prepare the budget-in- brief and data entry, conversion, or collection necessary to complete a project promptly. City staff will administratively assess each request to ensure that the request is within an acceptable level of risk.

4. Debt Management Policy
City Council adopted Resolution 2017-93, establishing the current Debt Management Policy. As part of Finance’s annual review, there are no material recommended edits.

Section 5 – FY24 Budget Amendments (Attachment 4)
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. On February 27, 2024, the Council adopted Resolution No. 2024-18 to amend the FY24 budget with a net effect of $2.66 million.

To reconcile various transactions before the fiscal year end close, staff requests Council approval of the following budget amendments:

1. $2.1 million Transfer of Technology Fee and General Plan Maintenance Fee Fund (Fund 133) Balances to the Community Development Fund (Fund 141)

2. ($0.122 million) – Reconcile deficit in the In-Lieu Fund for Park In-Lieu Fees

3. $1.2 million American Rescue Plan Act (ARPA) Fund Closure

4. $0.75 million Interfund Transfers to Consolidate In-Lieu Fee Funds

5. ($0.63 million) Allocation to the Winter Storm Hazard Mitigation Project

6. $22.2 million transfer from the General Fund to the Budget Stabilization Reserve, the Contingency Reserve, and the One-Time Revenue Reserve

7. ($0.29 million) Allocation to Non-General Fund Deficits City staff is transmitting budget amendment requests for fund transfers identified after the mid- year budget amendment. Table 3 provides a summary of requests by Fund.

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Honorable Mayor and Members of the City Council
June 25, 2024

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6 Table 3 – Recommended FY24 Budget Amendments by Fund
Fund Revenue Expense
Net Revenue /
(Expenditure)
001 General Fund 3,082,778 24,502,99 (21,420,212)
002 Budget Stabilization Reserve 1,200,000 - 1,200,000
003 One-Time Revenue 11,000,000 - 11,000,000
004 Contingency Reserve 10,000,00 - 10,000,000
006 ARPA Fund 1,904,195 3,082,778 (1,178,583)
131 In-Lieu Fees 197,055 - 197,055
133 Restricted Revenues - 2,086,760 (2,086,760)
136 Emergency Disaster Reserve - 630,000 (630,000)
140 Developer In-Lieu Undergrounding - 75,000 (75,000) 141 Community Development 2,086,760 - 2,086,760
161 Public Safety Impact Fee 125,000 - 125,000
190 Disaster Recovery Fund - 13,260 (13,260)
201 Parks And Facilities Capital 68,078 - 68,078
207 Technology Capital 1,836,117 1,836,117 -
302 Lease Debt Service 15,000 - 15,000
621 Stormwater Fund 630,000 630,000 -
641 CityNet Services Fund - 68,078 (68,078)
701 Central Garage 100,000 - 100,000
702 Facility Maintenance Fund 50,000 - 50,000
Total Budget Amendment 32,294,983 32,924,983 (630,000)
$2.1 million Transfer of Technology Fee and General Plan Maintenance Fee Fund (Fund 133) Balances to the Community Development Fund (Fund 141)
City staff has reviewed policies previously adopted by the City Council and recommended changes to the Fund Balance Policy at the June 25, 2024, Council meeting. The Adopted FY25 Budget Summary includes the creation of the Community Development Special Revenue Fund to record the activities of the Community Development Department, including the City’s planning and building permit operations. The recommended action is to transfer the balance (est. $2.1 million) of the technology fee and general plan maintenance fee, currently recorded in the Restricted Revenue Fund as discrete projects, at the end of FY24.

($0.122 million) – Reconcile deficit in the In-Lieu Fund for Park In-Lieu Fees The Park In-Lieu Fund (Fund 131) held a negative cash position of $122k as of June 25, 2024.

This amount arose in FY20, when the City received $3M and made a transfer, assuming the funds were available for appropriation. However, the $3M deposit was refunded in FY22 because the developer withdrew from the project. The recommendation is to backfill the negative cash using the General Fund (Fund 001).

$1.2 million American Rescue Plan Act (ARPA) Fund Closure The funding obligation deadline is December 31, 2024. As the deadline is approaching, staff recommends transferring the remaining balance of ARPA Fund to support General Fund operation. The Fund has an estimated balance of $1.2 M as of the end of FY24. City staff

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Honorable Mayor and Members of the City Council
June 25, 2024

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8 2
6 recommends closing the ARPA fund in FY24 as an operational efficiency measure. Each year the ARPA Fund is active, the City must file quarterly reports to the Department of Treasury and conduct an annual audit. Advancing the closure of ARPA to FY24 allows the City to complete its final US Department of Treasury and annual audit reports effective June 30, 2024, rather than carry the reporting requirements into future fiscal years. The close-out requires multiple inter- fund transfers to comply with the Department of Treasury’s revenue replacement reporting requirements. The effect of the transfers, however, is zero.

$0.75 million Interfund Transfers to Consolidate In-Lieu Fee Funds Developer In-lieu Undergrounding Fund (Fund 140) has a balance of $75k as of June 25, 2024.

There has been no activity in this fund since FY17 and staff recommends transferring the balance to In-Lieu Fee Fund (Fund 131) to consolidate all the in-lieu fees into a single fund.

($0.63 million) Allocation to the Winter Storm Hazard Mitigation Project in Crestmoor Canyon During the 2022-23 winter storm emergency, severe stormwater runoffs triggered several landslides in the City. The Winter Storm Hazard Mitigation Project in Crestmoor Canyon was included in the FY 2023-24 Capital Improvement Program (CIP) budget to design and construct improvements at three locations. Additional funding of $630k is recommended to transfer from the Emergency Disaster Reserve (Fund 136) to the project. The current project budget is $361k; the total will be $991k after the recommended amendment. $22.2 million transfer from the General Fund (001) to the Budget Stabilization Reserve (002), the Contingency Reserve (004), and the One-Time Revenue Reserve (003).

The recommended budget amendment rebalances the General Funds to comply with the Fund Balance Policy and sequester funds as a contingency for an adverse ruling in pending litigation over the City’s tax-sharing agreement with Walmart.com. The first transfer will fully fund Contingency and Budget Stabilization Reserves, transfer additional funds to the Contingency Reserve for sequestered funds and transfer unassigned fund balances to the One-Time Revenue Reserve. The funds remain in the General Fund and will be used in FY25 as summarized in the Adopted FY25 Budget Summary.
($0.29 million) Allocation to Non-General Fund Deficits A total of $0.29 million transfer is recommended to resolve the fund balance deficit of the special revenue fund, internal service fund, and debt service fund. Of the total transfer, $0.277 million is from the General Fund and the balance closeout the Disaster Recovery Fund which has a fund balance of $13,000.

FISCAL IMPACT:

The Draft City Council Adopted Budget is balanced with total expenditure appropriations of $292.37 million across all Funds. Modifications to the budget are anticipated at mid-year to reflect new information.

ENVIRONMENTAL IMPACT:

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

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Honorable Mayor and Members of the City Council
June 25, 2024

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6 RECOMMENDATION:

Conduct a Public Hearing on the Fiscal Year 2024-25 Capital Improvement Program Budget; and Approve Enabling Resolutions Adopting the Fiscal Year 2024-25 Budget, Appropriations Limit, Financial Policies, and Amending the Fiscal Year 2023-24 Amended Adopted Budget.

ALTERNATIVES:

City Council is required to adopt a balanced budget by July 1, 2024 in order to continue operations.

ATTACHMENTS:

1. Resolution Adopting the FY25 Operating and Capital Improvement Program Budget

2. Resolution Approving the City’s Fiscal Year 2024-25 Appropriation Limit (Gann Limit) of $55,305,709

3. Resolution Adopting the City of San Bruno’s Financial Policies: Investments, Fund Balances, Award of Contracts, and Debt Management

4. Track Changes: City of San Bruno’s Financial Policies: Investments, Fund Balances, Award of Contracts, and Debt Management

5. Resolution Amending the Fiscal Year 2023-24 Budget

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RESOLUTION NO. 2024 -___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ADOPTING THE FISCAL YEAR 2024-25 BUDGET
WHEREAS, the City Council is the legislative body for the City of San Bruno and the San Bruno Public Financing Authority, and serves as the Board of Directors of the Successor Agency to the San Bruno Redevelopment Agency; and
WHEREAS, the City prepares and adopts a balanced annual budget with the intent of providing a planned policy program for City services and a financial system to carry out the planned program of services; and
WHEREAS, Municipal Code Section 2.12.060 requires the City Manager to prepare and transmit a recommended budget annually;
WHEREAS, the City Council adopted Fiscal Year 2024-25 Priority Initiatives and Budget Principle at their meeting on February 13, 2024; and
WHEREAS, the Revenue Measure Oversight Committee met on February 15, 2024 to receive the City Manager’s recommended uses of Measure G Sales Tax funds for Fiscal Year 2024-25 and the Committee voted unanimously to recommend City Council adoption of the City Manager’s recommendation to appropriate $4.59 million to the Fiscal Year 2024-25 Pavement Management Program capital project; and
WHEREAS, the City Council held a study session on March 12, 2024 to receive the Revenue Measure Oversight Committee’s recommendation and the City Manager’s draft Capital Improvement Program Budget;
WHEREAS, the City Council did not direct changes to the draft Capital Improvement Program Budget appropriations by the conclusion of their March 12, 2024 meeting; WHEREAS, the City Council adopted the July 1, 2024 User Fee Schedule at their April 23, 2024 meeting to ensure cost recovery for many city services in alignment with the Cost Recovery Policy; and
WHEREAS, the City Manager transmitted the City Manager’s Recommended Fiscal Year 2024-25 Operating and Capital Improvement Program Budget (Recommended FY25 Budget) to the City Council and community on May 17, 2024; and WHEREAS, the Recommended FY25 Budget fully funded City Council’s top five priority initiatives and adhered to the City Council adopted budget principles; and WHEREAS, the Recommended FY25 Budget fully complies with the City Council adopted Fund Balance Policy by funding the Budget Stabilization Reserve and Contingency Reserve at the policy’s targets resulting in thirty percent (30%) of the General Fund’s FY25 Budgeted expenditures; and
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ATTACHMENT 1
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WHEREAS, the Recommended FY25 Budget fully funds City’s Fiscal Year 2024-25 unfunded pension liability payment and Pension Obligation Bonds debt service payment; and WHEREAS, the San Bruno Planning Commission reviewed new capital improvement projects contained in the Recommended FY25 Budget on May 21, 2024 for compliance with the General Plan of the City and adopted a resolution confirming project compliance; and WHEREAS, the City Manager presented the Recommended FY25 Budget to the community at a budget workshop on June 4, 2024;
WHEREAS, the City Council further amended the User Fee Schedule on June 11, 2024 to incorporate new fees and several updates effective July 1, 2024; and WHEREAS, the City Manager presented the Recommended FY25 Budget to the City Council at their June 11, 2024 meeting and City Council directed that City staff return on June 25, 2024 with a Draft City Council Adopted FY25 Budget Summary (FY25 Budget Summary); and
WHEREAS, the FY25 Budget Summary updates the Recommended FY25 budget to reflect resources and requirements for several Funds to include updated capital project carryover estimates and use of assigned fund balance for anticipated purchase order encumbrances;
WHEREAS, the FY25 Budget Summary further incorporates City staff’s recommendation to close-out the American Rescue Plan Act (ARPA) Fund effective June 30, 2024, as an efficiency measure to eliminate the need for quarterly reporting to the Department of Treasury and annual audit requirements beginning in FY25; WHEREAS, City staff has reviewed the ARPA close-out journal entries with the City’s independent auditor and the auditor did not express any concerns with staff’s recommendation provided City Council approves the action to close APRA Fund effective June 30, 2024; WHEREAS, the FY25 Budget Summary further incorporates updated beginning fund balances to record the estimated Fiscal Year 2023-24 year-end closing entries authorized by the year-end budget amendment; and
WHEREAS, the published City Council Adopted FY25 Budget will incorporate updates to chart, graphs and narratives to reflect final City Council action; and WHEREAS, the published City Council Adopted FY25 Budget will further incorporate clerical error to number of authorized full-time equivalent personnel in the Community Services Department resulting from the transition of staff from the General Fund to the new Recreation and Aquatics Center (RAC) Special Revenue Fund to the budgeted staff of 36.00 as opposed to

35.00; and
WHEREAS, the correction to the Community Services Department will increase the City-wide total authorized full-time equivalent personnel from 280.00 to 281.00; however the appropriations remain unchanged since the budget incorporated the appropriate headcount for the department in various Funds;

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WHEREAS, the City Council, being fully advised and informed and having fully reviewed the Draft City Council Adopted FY25 Budget Summary, finds and determines that the FY25 Budget should be adopted and prepared in final form.

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

1. Adopts the Fiscal Year 2024-25 Budget as summarized in Exhibit A; and

2. Authorizes closure of the American Rescue Plan Act Fund effective June 30, 2024; and

3. Affirms the fiscal necessity of taxes collected pursuant to and in compliance with Municipal Code Chapter 3.28 “Sales and Use Tax”; and

4. Authorizes an administrative budget amendment and requisite journal entries necessary to reconcile the Adopted Budget to the June 30, 2024 audited financial statement for the estimated beginning unassigned fund balances, estimated reserve balances, estimated project and encumbrance carryover resources and requirements; and

5. Directs City staff to compile and publish the final City Council Adopted Fiscal Year 2024-25 Budget.
—oOo—
I hereby certify that foregoing Resolution No. 2024 - ____ was introduced and adopted by the San Bruno City Council at a regular meeting on June 25,2024, by the following vote:

AYES:

NOES:

ABSENT:
_________________________________
Lupita Huerta, City Clerk

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EXHIBIT A – ADOPTED FY25 BUDGET SUMMARY
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<<Insert PDF>>

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Estimated
Unassigned
Beginning Fund
Balance, 7/1/24
Resources
Revenue,
Transfers In,
Assigned Fund
Balance
Requirements
Expenditure &
Transfers Out
Net Revenue/
(Expenditure)
Estimated
Unassigned
Ending Fund
Balance, 6/30/25
General Funds
1 General Fund 71,422 $ 68,006,597$ 67,998,036 $ 8,561 $ 79,983$
2 Budget Stabilization Reserve 13,611,210 41,322 41,322 -
13,611,210
3 One-
Time Revenue 9,564,538 -
8,461,527
(8,461,527) 1,103,011
4 C
ontingency Reserve 10,892,435 5,000,000 -
5,000,000 15,892,435
5 M
easure G District Sales Tax 1,183,110 3,800,000 4,590,729 (790,729)
392,381
T
otal General Funds 35, 322,714 76,847,919 81,091,614 (4,243,695) 31,079,020 Special Revenue Funds
30 Community Development 2,086,760 4,923,000 5,555,517 (632,517) 1,454,242 50 Recreation & Aquatics -
4,459,132 4,459,132 0 0
101 Gas
Tax 13,157 2,253,089 1,618,000 635,089 648,246 102 M
easure A Transportation Tax (15,539) 1,387,090 150,000 1,237,090 1,221,551 103 Street Special Revenue 4,378 100 100 4,478
104 M
easure W Transportation Tax 1,127,328 629,502 600,000 29,502 1,156,830 111 Police Asset Forfeiture 593,926 138,000 272,545 (134,545) 459,381 113 Pol
ice Special Revenue 186,018 153,000 100,000 53,000 239,018 121 F
ederal/State Grants 287,988 561,211 561,211 - 287,988
122 Sol
id Waste/Recycl. 389,246 310,792 358,713 (47,921) 341,325
131 I
n-Lieu Fees 3,862,606 58,349 150,699 (92,350) 3,770,256
132 Agency On Aging (162,267) 497,381 351,749 145,632 (16,635) 133 R
estricted Revenues 2,343,678 287,870 288,371 (501) 2,343,177
136 Em
ergency Disaster Reserve 913,765 -
913,765
(913,765) -
138 Af
fordable Housing Impact Fee 10,028,040 -
- -
10,028,040
160 Co
mmunity Facility Impact Fee 4,826,617 170,000 535,000 (365,000) 4,461,617 161 Publ
ic Safety Impact Fee 8,012 5,000 -
5,000 13,012
162 Gener
al Government Impact Fee 352,618 24,000 190,000 (166,000) 186,618 163 Tra
nsportation Facility Impact Fee 5, 786,523 140,000 - 140,000 5,926,523
164 Utility Facility Impact Fee 180,663 40,000 - 40,000 220,663 165 B
ayhill Area Devel. Impact Fee 4,173,037 110,000 - 110,000 4,283,037
166 Community Benefit Fund 9,802,341 500,000 663,000 (163,000) 9,639,341
Total Special Revenue Funds 46, 788,895 16,647,516 16,767,701 (120,185) 46,668,709 General Capital Funds
201 Parks And Facilities Capital 4,520,346 10,939,268 14,978,208 (4,038,940) 481,407 203 Str
eets Capital 10,867,912 16,574,241 26,149,700 (9,575,459) 1,292,453 207 Technology Capital 2,127,847 5,995,303 8,135,517 (2,140,214) (12,367) T
otal General Capital Funds 17, 516,106 33,508,812 49,263,425 (15,754,613) 1,761,493 Enterprise Funds
611 Water Fund 36,359,153 29,043,696 62,315,998 (33,272,302) 3,086,851 621 Stormwater Fund 624,311 6,049,757 6,908,014 (858,257) (233,946) 631 Wastewater Fund 45,001,839 26,418,083 53,623,300 (27,205,217) 17,796,622 641 Citynet Services Fund (165,825) 8,957,275 8,052,376 904,899 739,074 651 Par
king Fund 996,125 1,023,538 1,532,349 (508,811) 487,314 T
otal Enterprise Funds 82, 815,602 71,492,349 132,432,036 (60,939,688) 21,875,914 Internal & Debt Service Funds
701 C
entral Garage 11,000 1,859,008 1,685,161 173,847 184,847 702 Fa
cility Maintenance Fund (10,515) 2,744,869 2,620,507 124,362 113,847 703 Gener
al Equipment Revolving 1,757,693 973,449 1,430,078 (456,629) 1,301,064 707 Technology Development 510,289 2,083,464 1,913,074 170,390 680,678 711 Sel
f Insurance 740,181 2,584,518 3,800,968 (1,216,450) (476,269) 302 Lease Debt Service 840 1,367,283 1,367,283 1 840 T
otal Internal & Debt Service Funds 3, 009,488 11,612,591 12,817,071 (1,204,480) 1,805,008 185,452,805$ 210,109,187$ 292,371,847$ (82,262,661)$ 103,190,144$ Fund
Total All Funds
City Council Adopted Fiscal Year 2024-25 Budget
by Fund
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ATTACHMENT 1, EXHIBIT A
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RESOLUTION NO. 2024- __

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ADOPTING THE CITY’S FISCAL YEAR 2024-25 APPROPRIATIONS LIMIT (GANN LIMIT) OF $55,305,709 WHEREAS, the City Council acts as the legislative body for the City of San Bruno and the San Bruno Public Financing Authority, and serves as the Board of Directors of the Successor Agency to the San Bruno Redevelopment Agency; and WHEREAS, Article XIII of the California Constitution and Section 7900 et seq. of the California Government Code require cities to adopt limits on appropriations for each fiscal year; and
WHEREAS, the California Department of Finance issued their annual transmittal to Fiscal Officers on April 30, 2024, detailing estimated changes in Price Factor and Population Information as of January 1, 2024 which are necessary to calculate the Appropriations Limit; and
WHEREAS, the Price Factor and Population Information memorandum estimates that the statewide change in cost of living using per capita personal income will increase 3.62% for Fiscal Year 2024-25; and
WHEREAS, the Price Factor and Population Information memorandum estimates that San Mateo County’s population decreased by 0.50 percent and San Bruno’s population decreased 0.94 percent from January 1, 2023 to January 1, 2024; and WHEREAS, City staff have calculated the Appropriations Limit using the statewide change in per capita income of 3.62 percent and the County of San Mateo’s population decrease of 0.50 percent, for a blended adjustment factor of the City Council adopted Fiscal Year 2023-24 Appropriations Limit of 3.12 percent; and
WHEREAS, the City Council, being fully advised and informed and having fully reviewed the Appropriations Limit Report, finds and determines that Appropriations Limit should be adopted and prepared in final form;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Bruno hereby:

1. Selects the change in statewide per capita personal income and the change in population for San Mateo County as provided in the April 30, 2024 letter from the California Department of Finance to Fiscal Officers; and

2. Adopts the Appropriations Limit for Fiscal Year 2024-25 of $55,305,709 and the report detailing the Appropriation Limit calculation detailed in Exhibit A; and

3. Reserves the right to recalculate this Appropriations Limit utilizing Non-Residential Assessed Valuation.
---oOo---
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ATTACHMENT 2
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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 June 25, 2024, by the following vote:

AYES:

NOES:

ABSENT:
____________________________
Lupita Huerta, City Clerk

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Exhibit A
City of San Bruno
FY2024-25 Gann Appropriation Limit
Date Prepared: 5/23/24
FY2023-24 Appropriation Limit $ 53,641,794
Calculation of FY2024-25 Adjustment Factor
Annual Change Factors
Cost of Living Adjustment Factors for FY2024-25
California Per Capita Personal Income (CPCPI) 3.62%
Population Adjustment Factors for FY2024-25
San Mateo County Population Change -0.50%
Adjustment Factor for FY2024-25
(1 +0.0362) x (1 - 0.0050) 1.03101900
FY2024-25 Appropriation Limit 55,305,709
Proceeds of Taxes 55,378,009
Exclusions:

Qualified Capital Projects and Debt (10,765,218) FY2024-25 Appropriations Subject to Limit 44,612,791

Over (Under) Appropriations Limit $ (10,692,918)
Percent Over (Under) -19.33%

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RESOLUTION NO. 2024 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO ADOPTING THE CITY OF SAN BRUNO’S FINANCIAL POLICIES FOR INVESTMENTS,

FUND BALANCES, AWARD OF CONTRACTS, AND DEBT MANAGEMENT
WHEREAS, the City Council is the legislative body for the City of San Bruno and the San Bruno Public Financing Authority, and serves as the Board of Directors of the Successor Agency to the San Bruno Redevelopment Agency; and
WHEREAS, best practices encourage regular review of financial policies to ensure their efficacy, relevance to current operations, and compliance with rules, regulations, and laws; and WHEREAS, assembling City Council adopted financial policies into a single document improves transparency in the City’s financial management; WHEREAS, City staff has conducted its annual review of the City Council adopted Investment Policy as approved by Resolution No. 2023-103 to ensure compliance with legal requirements, best practices, and operational needs of the City and does not recommend any amendments; and
WHEREAS, the recommended amendments to the Investment Policy increase the maximum percentage of the City portfolio that may be invested in Money Market Funds from twenty percent (20%) to forty percent (40%), and maximum per account/issuer from ten percent (10%) to fifteen percent (15%), to enable the City to fully capitalize on the current high interest rates and yields;
WHEREAS, the recommended Investment Policy amendments are consistent with State law and, for added safety and liquidity, retain a more restrictive list of eligible investments and maximum caps in eligible investments than State law; and WHEREAS, City staff has conducted an annual review of the City Council adopted City Council Fund Balance Policy as approved by Resolution No. 2023-109 to ensure compliance with best practices and operational needs of the City; and WHEREAS, the recommended Fund Balance Policy amendments, effective June 30, 2024, reflect the creation, deletion, and modification to the City’s Fund structure, revisions to clarify the definition of interfund balances, and updates to the year-end closing procedure for net revenue; and
WHEREAS, City staff has conducted its annual review of the City Council adopted Award of Contract Policy as approved by Resolution No. 2024-14 to ensure compliance with best practices and operational needs of the City; and
WHEREAS, the recommended Award of Contract Policy amendments enhance operational efficiency and leverage limited staff resources by clarifying the City Manager’s authority to approve a ten percent (10%) change order above the authorized award of contract, and excluding the requirement for a standard form agreement for professional and contract services less than $15,000; and
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ATTACHMENT 3
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WHEREAS, City staff and bond counsel have reviewed the City Council adopted Debt Management Policy as approved by Resolution No. 2017-33 to ensure compliance with legal requirements, best practices, and operational needs of the City and have not identified any material amendments required at this time; and
WHEREAS, the Debt Management Policy intends to comply with Government Code Section 8855(i) and will apply to all future debt considerations and issuances; and WHEREAS, Assembling the City Council adopted financial policies into a single document improves transparency in the City’s financial management; and WHEREAS, the City Council, being fully advised and informed and having fully reviewed the recommended changes to City Council adopted financial policies, finds and determines that the City of San Bruno’s Financial Policies for Investments, Fund Balances, Award of Contracts, and Debt Management should be adopted and prepared in final form; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Bruno hereby adopts the City of San Bruno’s Financial Policies for Investments, Fund Balances, Award of Contracts, and Debt Management, attached as Exhibit A. ---oOo---
I hereby certify that foregoing Resolution No. 2024 - ___ was introduced and adopted by the San Bruno City Council at a regular meeting on June 25, 2024, by the following vote:

AYES:

NOES:

ABSENT:
__________________________
Lupita Huerta, City Clerk

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City Manager's Recommended Budget - Fiscal Y ear 2024-25 (FY25)

CITY OF SAN BRUNO

FINANCIAL POLICIES
ADOPTED J UNE 25, 2024
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City
Council
Adopted
Fiscal
Year
2024-25
(FY25)
Budget
<<Insert
Adopted
Resolution>>

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Investment Policy
Resolution No. 2024-XXX
June 25, 2024

I. Purpose
The Council has adopted this Investment Policy ("Policy") in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the unexpended funds of the City. All such investments shall be made in accordance with the Policy and in compliance with the California Government Code.

II. Scope
The provisions of this Policy shall apply to all financial assets of the City and the Successor Agency to the Redevelopment Agency of the City of San Bruno, as accounted for in the City's annual comprehensive financial report, with the exception of bond proceeds, which shall be governed by the provisions of the related bond indentures or resolutions, and monies received through the Irrevocable Trust Agreement with PG&E.

All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the contributing funds based upon the proportion of the respective average balances relative to the total pooled balance in the investment portfolio.

Ill. Objectives
City and Successor Agency funds shall be invested in accordance with all applicable City policies and codes, California statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:

A. Safety of principal: Investments will be made in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.

B. Liquidity standard: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

C. Return on investment: The investment portfolio shall be structured to attain a market-average rate of return through economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

IV. Delegation of Authority
Authority to manage the City's investment program is derived from California Government Code, Sections 41006 and 53600 et seq. The City Council is responsible for the management of the City's funds, including the administration of the Investment Policy. Responsibility for the cash management of the City's funds is hereby delegated to the Chief Financial Officer. Staff members in the Finance Department may be assigned to perform the day-to-day treasury activities related to the investment of City funds. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.

The City may utilize the services of an investment adviser registered under the Investment Advisers Act of 1940, so long as it can be demonstrated that these services produce a net financial advantage or necessary protection of the City's financial resources. The adviser shall follow this Policy and such other written instructions as provided. The use of professional investment advisers is subject to City review and overriding discretion, which will be exercised as needed. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with the Investment Policy.

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City of San Bruno
Investment Policy
Resolution No. 2024-XXX

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V. Prudent Investor Standard
The standard of prudence to be used for managing the City's investments shall be California Government Code Section 53600.3, the prudent investor standard, which states that, "When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law."

The City recognizes that market prices of securities will vary depending on economic and interest rate conditions at any point in time. It is further recognized that in a well -diversified investment portfolio, occasional measured losses may occur due to economic, bond market, or individual security credit events. These occasional declines in value must be considered within the context of the overall investment program objectives and the resultant long-term rate of return.

The Chief Financial Officer and other individuals assigned to manage the investment portfolio, acting within the intent and scope of this Policy and other written procedures, and exercising due diligence, shall be relieved of personal responsibility and liability for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

VI. Internal Controls
The Chief Financial Officer has established a system of internal controls to ensure compliance with the investment policies and procedures of the City, the Successor Agency, and the California Government Code. Such controls are designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees of the City.

Investment decisions are made by the Chief Financial Officer or his/her designee and executed by staff of the Finance Department. All wire transfers initiated by Finance Department staff members must be approved and transmitted by the Chief Financial Officer or his/her designee. Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction. Timely bank reconciliation is conducted to ensure proper handling of all transactions.

The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by Finance Department staff on a monthly basis . An independent analysis by an external auditor shall be conducted annually to review and perform procedure testing on the City's cash and investments. The Chief Financial Officer shall review and ensure compliance with investment processes and procedures.

VII. Ethics and Conflict of Interests
In accordance with California Government Code Sections 1090 et seq. and 87100 et seq., officers and employees of the City will refrain from any activity that could conflict with the proper execution of the investment program or which could impair their ability to make impartial investment decisions, and all investment personnel shall subordinate their personal investment transactions to those of the City. In addition, City Council members, the City Manager, and Chief Financial Officer shall comply with the reporting requirements of California Government Code Section 87203 and regulations of the Fair Political Practices Commission and file a Statement of Economic Interest annually.

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I VIII. Authorized Investments
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609, and 53630-53686. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between the Policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit quality listed in this section apply at the time the security is purchased.

Investments Type
Aggregate
Maximum
%of
Portfolio
Per Issuer
Maximum
% of
Portfolio

Maximum
Maturity

Credit Quality
A. US Treasury Bills, Bonds,
Notes
5 years TSY
B. Federal Agency or US
Government Sponsored
Enterprise obligations
75%, with
no more
than 20% of
securities
held being
callable
40%
5 years TSY
C. Medium-term notes 20% 5% 5 years A
D. Negotiable certificates of
deposit
15% 5% 5 years Short-term: A-1
Long-term: A
E. Non-negotiable certificates of
deposit
15% 5% 3 years FDIC insured;
collateralized
above FDIC limit
F. Prime commercial paper 25% 5% 270 days A or A-1;
depending on type
of commercial
entity, see policy
G. Eligible banker's acceptances 15% 5% 180 days A-1
H. Repurchase agreements 10% 5% 30 days
I. Local Agency Investment
Fund (LAIF)
State limit N/A N/A N/A
J. San Mateo County Pool 20% N/A N/A N/A
K. California Joint Powers
Authority (JPA) pooled
investment programs
20% N/A
L. Money Market Funds 40% 15% N/A AAA
M. Obligations of the State of
California or any local agency
within the State, and
registered treasury notes or
bonds of the other 49 states
20% 5% 5 years
Short-term: A-1
Long-term: A

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Any investment currently held at the time the policy is adopted that does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment's maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers. The authorized investments are described below.

A. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.

There is no limitation on the percentage of the portfolio that can be invested in this category .

The maximum maturity shall not exceed five years.

B. Federal agency or United States government -sponsored enterprise ("GSE") obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. The aggregate investment in federal agency securities/GSEs shall not exceed 75 percent of the City's total portfolio, and the securities of any one federal agency/GSE shall not exceed 40 percent of the City's total portfolio. The maximum percent of agency callable securities in the portfolio shall be 20 percent. The maximum maturity shall not exceed five years.

C. Medium-term notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States and rated in a rating category of "A" or the equivalent or better by a Nationally Recognized Statistical Rating Organization (NRSRO) . The aggregate investment in medium - term notes shall not exceed 20 percent of the City's total portfolio, and no more than 5 percent of the City's total portfolio shall be invested in the medium -term notes of any one issuer. The maximum maturity shall not exceed five years.

D. Negotiable certificates of deposit or deposit notes issued by a nationally - or state-chartered bank, a savings association, or a federal association (as defined by Section 5102 of the Financial Code), or a state or federal credit union. Eligible negotiable certificates of deposit in amounts up to the FDIC insured limit do not require any credit ratings. Amounts above the FDIC insured limit must be issued by institutions that have long-term obligations rated in a rating category of "A" or its equivalent or better by at least one NRSRO, or have short-term obligations rated "A-1" or its equivalent or higher by an NRSRO. No more than 5 percent of the City's total portfolio shall be invested in the negotiable certificates of deposit of any one issuer, and the aggregate investment in negotiable certificates of deposit shall not exceed 15 percent of the City's total portfolio. The maximum maturity shall not exceed five years.

E. Non-negotiable certificates of deposit with a maturity not exceeding three years from the date of trade settlement in state- or nationally-chartered banks or savings banks that are insured by the FDIC, subject to the limitations of California Government Code Section 53638. Amounts in excess of FDIC insurance coverage shall be secured in accordance with California Government Code Section 53652. No more than 5 percent of the City's total portfolio shall be invested in the deposits of any one bank. The aggrega te investment in non-negotiable certificates of deposit shall not exceed 15 percent of the City's total portfolio. The maximum maturity shall not exceed three years.

F. Prime commercial paper with a maturity not exceeding 270 days from the date of trade settlement with the highest ranking or of the highest letter and number rating as provided for by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions.

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in either sub-paragraph A or sub-paragraph B below:
i. The entity shall (1) be organized and operating in the United States as a general corporation; (2) have total assets in excess of $500,000,000; and (3) have debt other than commercial paper, if any, that is rated in a rating category of "A" or the equivalent or better by an NRSRO.
ii. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company; (2) have program-wide credit enhancements, including, but not limited to, overcollateralization, letters of credit or surety bond; and (3) have commercial paper that is rated at least "A-1" or the equivalent by an NRSRO.

The City may purchase no more than 10 percent of the outstanding commercial paper of any one issuer, and the aggregate investment in commercial paper shall not exceed 25 percent of the City's total portfolio. No more than 5 percent of the City's total portfolio shall be invested in the commercial paper of any one issuer.

G. Eligible banker's acceptances with a maturity not exceeding 180 days from the date of trade settlement, rated at least "A-1" or the equivalent or better by an NRSRO, drawn on or accepted by a commercial bank whose deposits are insured by the FDIC, and whose senior long- term debt is rated in a rating category of "A" or the equivalent or better by an NRSRO at the time of purchase. No more than 5 percent of the City's total portfolio shall be invested in banker's acceptances of any one issuer, and the aggregate investment in banker's acceptances shall not exceed 15 percent of the City's total portfolio.

H. Repurchase agreements with a final termination date not exceeding 30 days collateralized by obligations of the U.S. Treasury, federal agencies and/or government -sponsored enterprises (described in sections A and B above). For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City's approved master repurchase agreement. The purchased securities shall have a minimum market value including accrued interest of 102 percent of the dollar value of the funds borrowed. All collateral must be delivered to the City's custodian bank by book entry, physical delivery, or by a third- party custodial agreement. The market value of the collateral securities shall be marked-to-the-market at least quarterly, and the value of the underlying collateral must be brought back up to 102 percent no later than the next business day. Market value must be calculated each time there is a substitution of collateral. No more than 5 percent of the City's total portfolio shall be invested in repurchase agreements with any one counterparty, and the aggregate investment in repurchase agreements shall not exceed 10 percent of the City's total portfolio.

The City or its custodian shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to the repurchase agreement.

The City may enter into repurchase agreements only with primary dealers of the Federal Reserve Bank of New York. Approved repurchase agreement counterparties shall have a short- term credit rating of at least "A-1" or the equivalent or better and a long-term credit rating in the rating category of "A" or the equivalent or better by a NRSRO. Repurchase agreement counterparties shall execute a City-approved master repurchase agreement with the City. The Chief Financial Officer shall maintain a copy of the City's approved master repurchase agreement along with a list of broker/dealers who have executed this agreement.

Reverse repurchase agreements will not be permitted.

I. The City may invest in the Local Agency Investment Fund (LAIF) established by the State Treasurer (per Government Code Section 16429.1) for the benefit of local agencies up to the maximum amount permitted by LAIF.

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J. The City may invest in the San Mateo County Investment Pool established by the San Mateo County Treasurer for the benefit of local agencies (as established in California Code Section 53684). No more than 20 percent of the market value of the City's total portfolio may be invested in this category.

K. The City may invest in other pooled investment programs which are California Joint Powers Authorities established to provide California public agencies with professional investment services (California Code Section 53601 (p)). No more than 20 percent of the market value of the City's total portfolio may be invested in this category.

L. Shares of beneficial interest issued by a diversified management company that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). Provided that the money market funds are "no-load" (no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) have a rating of "AAA" or the equivalent by at least two NRSROs or have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). No more than 10 percent of the City's total portfolio shall be invested in any one issuer and the aggregate investment in money market funds shall not exceed 20 percent of the City's total portfolio.

M. Obligations of the State of California or any local agency within the State, including bonds payable solely out of revenues from a revenue- producing property owned, controlled, or operated by the State or any local agency or by a department, board, agency, or authority of the State or any local agency.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Securities in this section must have a short-term rating of "A-1" or the equivalent or better by an NRSRO or a long-term rating in the category of "A" or the equivalent or better by an NRSRO.

No more than 5 percent of the City's total portfolio shall be invested in any one municipal issuer, and the aggregate investment in municipal bonds shall not exceed 20 percent of the City's total portfolio. The maximum maturity shall not exceed five years.

IX. Prohibited Investment Vehicles and Practices
State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to, futures and options. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest -only strips is prohibited.

Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited.

Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. Purchasing or selling securities on -margin is prohibited. The use of reverse repurchase agreements, securities lending, or any other form of borrowing or leverage is prohibited. The purchase of foreign currency denominated securities is prohibited. Local governments that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.

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X. Selection of Broker/Dealers
The Chief Financial Officer shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the City to conduct transactions only with those authorized firms. To be eligible, a firm must be licensed by the State of California as a broker/dealer as defined in Section 25004 of the California Corporations Code, and:

A. Be recognized as a Primary Dealer by the Federal Reserve Bank of New York, or B. Report voluntarily to the Federal Reserve Bank of New York, or C. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).

Each authorized broker/dealer shall be required to submit and annually update a City- approved broker/dealer information request form. The Chief Financial Officer shall maintain a list of the broker/dealers that have been approved by the City, along with each firm's most recent broker/dealer information request form.

If the City has not engaged the support services of an outside investment advisor while in the process of executing a particular transaction, the authorized broker/dealer(s) shall provide certification of having received and reviewed this Policy. For transactions initiated through an investment advisor, the investment advisor may use their own list of approved broker/dealers and financial institutions, which it will maintain and review periodically.

The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in Item F of the Authorized Investments section of this Policy.

XI. Competitive Transactions
Each investment transaction shall be competitively transacted with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction, and their bid and offering prices shall be recorded.

If the City is offered a security for which there is no other readily available competitive offering, then the Chief Financial Officer will document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

XII. Selection of Banks
The Chief Financial Officer shall maintain a list of banks approved to provide depository and other banking services for the City. To be eligible for authorization, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5, shall be a member of the FDIC, and shall secure all deposits exceeding FDIC insurance coverage in accordance with California Government Code Section 53652.

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XIII. Safekeeping and Custody
The Chief Financial Officer shall select a bank to provide safekeeping and custodial services for the City, in accordance with the provisions of Section 53608 of the California Government Code. A City- approved safekeeping agreement shall be executed with the custodian bank prior to utilizing that bank's safekeeping services. The custodian bank will be selected on the basis of its ability to provide satisfactory safekeeping services and the competitive pricing of those services.

The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery-versus-payment basis. All securities shall be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking, and commercial practices.

All investment securities will be delivered by either book entry or physical delivery and will be held by the City's custodian bank, its correspondent bank, or its Depository Trust Company (OTC) participant account.

XIV. Maximum Maturity
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment, either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

XV. Risk Management and Diversification
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:

A. The diversification requirements included in the "Authorized Investments" section of this policy are designed to mitigate credit risk in the portfolio.

B. No more than 15 percent of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

C. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity, or yield of the portfolio in response to market conditions or the City's risk preferences.

D. If the credit ratings of any security owned by the City are downgraded to a level below the quality required by the Investment Policy, it will be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. i. If a security is downgraded, the Chief Financial Officer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.
ii. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

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XVI. Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer- t
erm investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. Therefore, the City adopts the following strategies to control and mitigate its exposure to market risk:

A. The City will maintain a minimum of six months of budgeted operating expenditures in short-term investments to provide sufficient liquidity for expected disbursements.

B. The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.

C. The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20 percent) of a market benchmark, an index selected by the City based on the City's investment objectives, constraints, and risk tolerances.

XVII. Portfolio Performance
The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. An appropriate benchmark or benchmarks will be established against which portfolio performance shall be compared on a regular basis. When comparing the performance of the City's portfolio, its rate of return will be computed net of all fees and expenses.

XVIII. Monthly Reporting
Monthly, the Chief Financial Officer shall submit to the City Council a report on the investment earnings and performance results of the City's investment portfolio. The report shall include the following information:

A. Investment type, issuer, date of purchase and maturity, par value, and dollar amount invested in all securities, investments, and monies held by the City; B. A description of the funds, investments, and programs; C. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;
D. A statement of compliance with this Policy or an explanation for non-compliance; E. A statement of the City's ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case; and F. A statement of transactions made during the month.

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XIX. Investment Policy Adoption
The Investment Policy shall be adopted by resolution of the City Council. The Policy shall be reviewed
annually by the Chief Financial Officer, and any modifications made as a result must be approved by the City Council.

History

Action Date Notes
Policy adoption by resolution December 8, 2020 Resolution No. 2020-97 Policy adoption by resolution September 12, 2023 Resolution No. 2023-103 Policy adoption by resolution June 25, 2024 Resolution No. 2024 -XXX

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I. Purpose
The Fund Balance Policy (“Policy”) of the City of San Bruno shall establish the foundation for designation of monies to reserve funds that support the City Council’s commitment to ensuring financial stability and sustainability of operations during times of fiscal constraint and emergency situations. The establishment of designated reserve funds is an important step towards developing and maintaining a long-term financial plan that provides reasonable funding resources for the City’s current and future needs.

II. Objectives
The Policy is intended to meet the following objectives:

A. Governmental Accounting Standards Board (GASB) Implementation - The Policy implements GASB Statement Number 54 (GASB 54) which is applicable to the City effective July 1, 2010. The purpose of GASB 54 is to provide greater clarity and transparency in financial reporting, making it easier for stakeholders to understand how restricted funds are being managed and ensuring that they are used for their designated purposes. This helps in promoting accountability and responsible financial management within the government.

B. Ensure financial stability - The establishment of a Policy ensures that financial resources are available to allow for the continuation of services in the event of significant economic downturn or catastrophic events. It provides assurances to residents and bondholders of City debt that the City is well prepared to deal with times of potential uncertainty. One of the many takeaways that have come from the tragic September 9, 2010 gas pipeline explosion in the Crestmoor Neighborhood is the potential financial exposure the City could face in a disaster situation. Funds set aside for City costs associated with the response and recovery to catastrophic events provide some assurances that the City is prepared when the unexpected may occur.

C. Ensure that one-time revenues are used for one-time expenditures – The City receives one-time revenues for a variety of reasons, including the sale of City property and agreements with developers to provide community benefit funding outside of established fees. Best practice is for one-time or non-recurring revenues to be utilized for one-time or non-recurring expenditures to ensure that ongoing financial commitments are not made that cannot be sustained over time. A typical use of one-time revenues is funding for capital improvement projects.

D. Establish funding for unfunded liabilities - The creation of reserve funds provides an opportunity for the City to evaluate its needs and the resources available to fund future and current liabilities. Examples of unfunded liabilities include unfunded pension and accrued leave liabilities.

III. Delegation of Authority
Management responsibility for compliance with the Policy belongs to the City Manager or their designee, who shall report to the City Council annually on this Policy. The City Manager or their designee, is responsible for ensuring that the Policy is implemented in the City’s general ledger, audited financial reports, and budgets.

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IV. Fund Balance Classifications
Effective July 1, 2010, GASB 54 requires that government financial statements categorize fund balance into one of five designations: non-spendable, restricted, committed, assigned, and unassigned.

A. The Non-Spendable Fund Balance category comprises resources that are temporarily unavailable for to be expended during the current period. This category includes funds loaned to another entity or funds extended as loans to other City funds, whether through formal agreements or year-end journal entries designed to address negative fund balances in other funds. The accounting treatment for informal loans necessitates recording them as either "interfund receivable " or "interfund payable" amounts. Specifically:
a. " Interfund payables=" Amounts: Indicate a liability on the financial statements of the receiving fund.
b. " Interfund receivables" Amounts: Indicate an asset on the financial statements of the fund providing the funds.
"Interfund receivables/ payables " amounts shall be reported to City Council as part of the mid-year financial update or upon the issuance of the Annual Comprehensive Financial Report (ACFR), in which the interfund amounts are termed as “due to/from other funds” for the short-term amounts and “advances to/from other funds” for the amounts that will be repaid over multiple years for better clarity.

B. Restricted fund balances report amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions or by enabling legislation.

C. Committed fund balances are amounts constrained to specific purposes by the City Council either by ordinance, resolution, or minute order. Reported as committed, amounts cannot be used for any other purpose unless the City Council takes the same highest-level action to remove or change the constraint. The City’s General Fund Reserves are adopted through this policy by Resolution and are reported as a Committed fund balance in the financial statements.

D. Assigned fund balances are amounts the City intends to use for a specific purpose with intent expressed by the City Council, the City Manager, or a body to which the City Council delegates the authority.

E. Unassigned fund balances report the amounts that are available in the General Fund for any purpose authorized by City Council. Other funds may not have unassigned fund balances.

The order in which the City spends fund balances when there is more than one classification is available for a particular purpose shall be: restricted, assigned, committed, and unassigned.

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V. General Fund
The General Fund is the primary operating fund of the City, accounting for all activities except those legally or administratively required to be accounted for in other funds. The General Fund includes activities such as public safety, parks and recreation services (except the Recreation and Aquatics Center), public works and streets maintenance, legal and administrative services. The General Fund also accounts for reserves, Measure G funds, American Rescue Plan Act funds, and developer contributions not for a specific purpose.

VI. General Fund Reserves
The City shall establish reserve funds in accordance with the objectives listed above as outlined below. The funding levels outlined in this policy are goals and it is the City’s intent to maintain its reserves at the prescribed levels; compliance with this policy will be evaluated annually upon final closing of the City’s financial books for the fiscal year.

A. Contingency Reserve – The Contingency Reserve shall be established with a goal of maintaining a target fund balance of 10% of the budgeted General Fund expenditures and is intended to be used for non-fiscal emergencies and disasters. The Contingency Reserve can only be utilized through resolution of the City Council. While intended for non-financial emergencies or disasters, the Contingency Reserve can be utilized for other purposes at Council discretion.

B. Budget Stabilization Reserve – The Budget Stabilization Reserve is established to shield the General Fund from adverse economic fluctuations, ensuring minimal immediate impacts on service levels. This reserve aims to maintain a target balance of at least 20% of budgeted expenditures at the start of each fiscal year.
a. Use - Utilization of the Budget Stabilization Reserve will occur in response to budgeted revenue shortfalls stemming from economic volatility or unforeseen financial events. Reports on its use will be presented to the City Council through the mid-year financial report and/or during the budget adoption process for the ensuing fiscal year. b. R
eplenishment - Should the Budget Stabilization Reserve be employed, causing it to dip below the 20% target, a strategic plan will be devised to restore the balance to the desired level. Depending on the situation, this restoration plan may span multiple fiscal years, aligning with the fund's role in a broader multi-year forecasting strategy.

This strategy aims to fortify fiscal sustainability and uphold consistent service levels.

C. One-Time Revenue Reserve – The One-Time Revenue Reserve shall be established to set aside one-time revenues until the point at which point they can be appropriated by City Council for one-time uses. One-time revenues that have a legal restriction for their use or are otherwise dedicated for a particular purpose will be held in a separate special revenue fund.

One-time revenues will be approved by Council, either through the budget adoption process or by a separate resolution, for inclusion into the One-Time Revenue Reserve. As a part of the annual budget process, this reserve will be reviewed along with existing unfunded capital projects for consideration of an appropriation from this reserve in the forthcoming budget. In general, the purpose of this reserve is for it to be used for projects and initiatives throughout the City that have no other identifiable funding source.

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VII. Use of Unassigned Fund Balance
When recurring revenues exceed expenditures in a given year, the net increase in fund balance posts to unassigned fund balance unless City Council directs that all or a portion of unassigned fund balance be used in the following manner(s):

A. R eplenish or increase an existing reserve

B. M ake additional discretionary payments against unfunded liabilities, including:
i. Pension
ii. Accrued Leave Liabilities

VIII. Special Revenue Funds
Special Revenue Funds are established to collect money that must be used for a specific project or purpose. This type of fund provides an extra level of accountability and transparency to taxpayers that demonstrates that their tax dollars will go toward an intended purpose. Special Revenue Fund balances are designated as “Restricted” fund balance.

A. In Lieu Fees – This is a legacy fund used to account for housing, underground utilities, and park in-lieu fees, the fund will close when the fund balance is fully exhausted.

B. Area Agency on Aging - Accounts for grant funding of senior services.

C. Federal/State Grants - Accounts for activities for the City's grants not otherwise accounted for in a separate fund.

D. Gas Tax - Accounts for funds received and expended for street maintenance purposes as defined in sections 2103, 2105, 2106, 2107.5 of the Streets and Highway Code.

E. Police Asset Seizure – Accounts for state augmentation funds to be used for safety programs.

F. Police – Accounts for Police revenues to be used on special law enforcement programs.

G. SB322 Recycling/Litter Clean-up – Accounts for SB322 funds to be used on recycling and litter clean-up programs.

H. Restricted Revenues – Accounts for donations, bequests, and fees collected for specific purposes.

I. Streets – Accounts for funds dedicated to street improvement and mitigation.

J. City of San Bruno as Successor Housing Agency – Accounts for housing assets and functions previously performed by the former Redevelopment Agency.

K. Measure A Transportation Tax – Accounts for funds received to be used for local transportation purposes. The revenues consist primarily of revenues received from Measure A sales tax passed to the City by San Mateo County.

L. Disaster Recovery – Accounts for funds from Pacific Gas and Electric Company (PG&E) Trust to rebuild the Crestmoor/ Glenview neighborhood.

M. Measure W Transportation Tax – Accounts for funds received to be used for local transportation purposes. The revenues consist primarily of revenues received from Measure W sales tax passed to the City by San Mateo County N. Community Facilities Impact Fee - Accounts for funds received to be used for parkland acquisition and library, park, and recreation improvements, O. Public Safety Facilities Impact Fee - Accounts for funds to be utilized for police and fire capital facilities and equipment.

P. G eneral Government Facilities Impact Fee – Accounts for funds to be expended only for community facilities and equipment necessary to maintain general government functions.

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Q. Utilities Facilities Impact Fee - Accounts for funds to be expended for water, sewer, storm drainage, and telecommunications infrastructure and equipment.

R. Transportation Facility Impact Fee - Accounts for funds utilized by the City for transportation infrastructure.

S. Bayhill Area Development Impact Fee - Accounts for funds to be expended by the city to fund improvements to public infrastructure necessary to accommodate growth consistent with the Bayhill Specific Plan.

T. Affordable Housing Fund - Accounts for affordable housing commercial linkage impact fees for commercial development projects and affordable housing in-lieu fees or other funds collected under the Affordable Housing Program Ordinance.

U. Community Benefit - Accounts for funds collected from property owners under negotiated agreements.

V. Community Development - Accounts for activities of the Community Development Department including the City’s planning and building permit operations.

W. Recreation & Aquatics – Accounts for the activities of City recreation programs. r.

IX. Capital Program Funds
Capital Program Funds report major capital acquisition and construction separately from the City’s ongoing operating activities. Capital Program Fund balances are designated “Restricted” fund balance.

A. Parks and Facilities Capital Improvement Fund Accounts for funds expended on the improvement and development of the City’s facilities, infrastructure, major equipment and technological upgrades used to deliver services to the community. Funding comes from the General Fund, grants, and other sources.

B. Street Improvement Capital Project Fund – The Street Improvement Capital Project Fund accounts for funds expended for transportation infrastructure such as street rehabilitation, streetlights, traffic signals and street medians.

X. Debt Service Funds
Debt Service Funds set aside resources to meet current and future long-term debt service requirements including principal and interest.

A. Debt Service Fund: General – Accounts for funds related to the 2011 and 2012 fire apparatus lease purchase and 2013 Pension Obligation Bond.

XI. Enterprise Funds
Enterprise funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.

A. Water Fund - To account for water services provided to the citizens of San Bruno. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvement, and billing and collections.

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B. Stormwater Fund - To account for storm drain system maintenance, street sweeping and other related activities to the citizens of San Bruno. Funding comes from customers connected to the City's sewer system due to extensive infiltration and intrusion to the City's sewer system and street sweeping charges.

C. Wastewater Fund - To account for sanitary sewer services provided to the citizens of San Bruno. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, treatment and capital improvement.

D. CityNet Fund - To account for operating and capital improvement costs to provide a full suite of video, data and voice services to residential and business customers.

E. Parking Fund – To account for costs to install and manage paid parking and contracted services for enhanced enforcement.

XII. Internal Service Funds
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis. The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund is eliminated by netting them against the operations of the other City departments, which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.

A. Central Garage – To account for the cost of vehicle acquisition and disposal, preventative maintenance and repair, and support services for the City’s fleet.

B. Self-Insurance – To account for the City’s coverage for Workers’ Compensation and General Liability insurance.

C. Technology Development – To account for the cost of maintaining the City’s IT infrastructure, network and data security, business applications and management, and providing a centralized service desk.

D. Facilities Management – To account for the cost of custodial services, facility management and preventative maintenance, and repair services for the City’s facilities.

XIII. Fiduciary Funds
Fiduciary funds are used to report assets held for fiduciary activities, which may be carried out by primary governments or their component units. Fiduciary funds may be (1) held for legally established trust funds or similar arrangements, or (2) held outside of a trust exclusively for the benefit of individuals or organizations and used for activities that meet the criteria to be treated as fiduciary activities. Restricted for: Individuals, organizations, and other governments, Net position held in trust.

A. Redevelopment Agency Obligation Retirement Trust Fund To account for the assets, liabilities, and activities of the former Redevelopment Agency of the City in a trustee capacity to pay for enforceable obligations of the former Redevelopment Agency. In

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accordance with Assembly Bill (AB) X1 26 and AB 1484, the San Bruno Redevelopment Agency was dissolved February 1, 2012.

XIV. Policy Review
Annual Review - This reserve policy shall be reviewed by the City Council at a public meeting annually to ensure its consistency with the overall objectives, review target funding levels, appropriation and/or transfers between reserves. Amendments and modifications to the policy shall be approved by the City Council prior to implementation.

Mid-year Review – City staff shall report due to/from and unassigned balances for City Council review.

History

Action Date Notes
Adopted by resolution January 22, 2013 Resolution No. 2013-11 Adopted by resolution October 24, 2023 Resolution No. 2023-109 Adopted by resolution June 25, 2024 Resolution No. 2024-

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Award of Contract Policy
Resolution No. 2024-XXX
June 20, 2024

I. Purpose
The City of San Bruno Award of Contract Policy establishes efficient procedures for the acquisition of supplies, services, equipment, and technology at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases. Approval of City budget appropriations by the City Council authorizes expenditure of City funds in accordance with that appropriation and the established level of city services. 1 2

II. Delegation of Authority
The City Manager is designated as the City’s purchasing officer3, responsible for developing and implementing administrative regulations aligned with this policy's purpose. The City Manager may delegate their authority at their sole discretion.

III. Award of Contract
The purchasing officer has the authority to issue purchase orders and award contracts including contract amendments for goods or services in accordance with Table 1. City Council approval is necessary for: (1) all contracts that do not conform to the City’s standard form of agreement, and (2) public projects over $250,000.

IV. Signing Authority
The purchasing officer’s signing authority adjusts each July 1 based on the annual change in the Construction Cost Index (CCI), as reported by Engineering News Record (ENR4), during the twelve- month period prior to the previous December. The Fiscal Year 2024 (FY24) base year signing authority and CCI is $92,000 and 15525.00, respectively, with the next update for FY26 effective July 1, 2025. Adjustments round up to the next increment of $1,000 and, if the CCI experiences a negative change in any year, the signing authority valuations will remain unchanged. Finance will issue a memo each June to document the purchasing officer’s revised signing authority for the upcoming fiscal year.

The purchasing officer is authorized to execute multi-year agreements, provided the contract does not exceed five full fiscal years and terminates on or before June 30 th in the final year of the contract.

Additionally, the purchasing officer is allowed to sign contract amendments above his signing authority within 10% of the original amount for contingency purposes, provided that the new contract amount does not exceed $200,000.

1 San Bruno Municipal Code (SBMC) Section 2.12.060.i
2 SBMC Section 2.44.010
3 SBMC Section 2.44.020
4 https://www.enr.com/economics/historical_indices/SanFrancisco

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V. Standard Form Agreements
The purchasing officer may only execute standard form agreements approved by City Council unless City Council authorizes an exception to the standard form agreement in advance, except that the purchasing officer may modify the standard form agreements’ insurance requirements after considering recommendations of the City’s insurance provider upon consideration of the risks associated with the goods procured or services rendered. The City Manager may revise the standard form agreement from time to time as deemed necessary or useful by the City Manager, with the concurrence of the City Attorney.

VI. Exceptions
The following are exempt from award of contract, signing authority, and standard form agreement requirements:

1. Cooperative purchasing agreements5, Emergency procedures purchases6, and Sole/single source purchases7, in accordance with San Bruno Municipal Code Chapter 2.44.

2. Utility bill payments, payments to other governmental agencies, personnel and benefit expenditures (e.g., medical premiums, retirement payments, workers’ compensation insurance premiums, staff backfill, etc.), routine non-service-related purchases such as furniture, fixtures, equipment, and vehicles where only a purchase order is required.

3. Discrete professional or contract services under $15,000 are exempt from the standard form agreement requirements provided sufficient available budgetary funds, and the department receives a purchase order.

5 SBMC Section 2.44.110
6 SBMC Section 2.44.120.a
7 SBMC Section 2.44.120.b

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VII. Table 1: Award Authority and Bid Requirements Summary

Category Standard Form
Agreement Amount Bid
requirement
Approving
Authority
Budgeted and
pass-through
expenditures
Unmodified8

$30,000 or less Informal Bid Chief Financial
Officer
$30,001 to $100,000 Informal Bid
City Manager $100,001 to budgeted
authority or pass-through
reimbursement agreement

RFP/RFQ
Modified

$100,000 or less Informal Bid
City Council
Greater than $100,000 RFP/RFQ

Public Projects9 10
Unmodified
$200,000 or less Informal Bid
City Manager
$200,001 to $250,000 Formal Bid
N/A Greater than $250,000 Formal Bid City Council

VIII. Policy Adoption

History

Action Date Notes
Policy adoption by Resolution February 13, 2024 Resolution No. 2024-14 Policy adoption by Resolution June 25, 2024 Resolution No. 2024-XXX

8 City Manager may modify the “amount” and “approving authority” administratively at their discretion. 9 SBMC Section 2.44.070
10 Public Project limits for informal bids are set by Public Contract Code (PCC) Section 22000, et seq. under the California Uniform Public Construction Cost Accounting Act (UPCCAA)

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Debt Management Policy
Resolution No. 2024-XXX
June 25, 2024

I. Purpose
The purpose of the Debt Management Policy is to organize and formalize debt issuance and management related policies and procedures for the City of San Bruno and the San Bruno Public Financing Authority. The debt policies and procedures are subject to and limited by applicable provisions of Federal and state law and to prudent debt management principles.

II. Scope

This Debt Policy intends to comply with Government Code Section 8855(i), adopted on October 10, 2017, and readopted on June 25, 2024, will apply to all future debt considerations and issuances for which the City Council acts as the legislative body for the City and the Public Financing Authority.

III. Objectives

• Maintain cost-effective access to the capital markets through prudent fiscal management policies and practices
• Ensure debt service commitments are made through effective planning and cash management • Ensure compliance with all applicable Federal and state securities laws • Achieve the highest practical credit ratings within the context of the City's financing needs and financing capabilities
• Ensure all debt is structured to protect both current and future taxpayers, ratepayers, and constituents of the City
• Ensure that the City's debt is consistent with the City's planning goals and objectives and capital improvement program or budget.

IV. Delegation of Authority
This Policy governs issuance and management of all future debt issued by the City and the Public Financing Authority. This Policy will be reviewed and updated periodically as necessary with changes approved by the City Council. The City Council is responsible for overall policy direction of this Policy, as well as the authorization of each debt financing. The City Manager’s designee will be responsible for implementation of the Policy, as well as its day-to-day administration.

The City recognizes this Policy provides guidance and structure for the decisions and management of the City's debt. However, changes in capital markets, city programs, and other unforeseen circumstances may arise that are not addressed in this Policy. In these cases, management flexibility is appropriate and modifications or exceptions may be necessary to achieve the City’s goals.

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Debt Management Policy
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V. Debt Issuance

1. Purpose of Debt Issuance
The City's debt management program will consider debt issuance when public policy, generational equity, and economic efficiency provide a benefit to the City.

The City will utilize debt obligations and will give due consideration to all available funding sources, including available cash reserves, available current revenues, potential future revenue sources, potential grants, and all other financing sources legally available to be used for such purposes. Expenditure of bond proceeds are expected to fund major, non-recurring expenses, including financing of costs related to capital project planning and design, environmental, land acquisition, real property, and equipment acquisition; the construction or renovation of buildings, permanent structures, and infrastructure; financing costs related to the debt issuance, capitalized interest, necessary or financially prudent debt service reserves, or other costs as permitted by law. Refunding or refinancing existing debt obligations are acceptable uses of bond proceeds.

2. Types of Debt
The City will evaluate the use of appropriate financial alternatives available as permitted. These alternatives will be considered in order to secure the most cost advantageous financing alternative available while limiting the City's risk exposure. Types of debt may include, but are not limited to:

• Lease revenue bonds
• Certificates of Participation
• Revenue bonds
• Land-secured financing, i.e., special tax and assessment bonds • General Obligation bonds
• Refunding/refinancing existing debt
• Lease purchase transactions
• Short term notes

The City will also consider the advantages of negotiated or competitive bond sale and recognizes that a standard, all-purpose approach to debt financing does not serve the best interest of the City. The City will consider the unique combination of factors such as the type of debt needed, funding stream, and market conditions to structure each debt issuance.

3. Debt Structuring Practices
The maximum term of any debt issuance will not exceed the useful life of the assets funded from the financing. Capitalized interest and deferral of principal may be considered but not required during construction of a debt-funded project. Fixed rate debt is preferred, but the City may consider the appropriateness of variable rate debt when considering financial market conditions and risk factors.

4. Financing Options
In general, debt may be issued to fund new projects or to refinance existing debt.

• New Debt
New debt issuances are used to generate funding for capital projects. These funds will be used for necessary land acquisitions, capital construction, equipment related financing costs, and other necessary expenses.

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• Refinancing Existing Debt
Periodic reviews of the City's outstanding debt will be undertaken by the Finance Department to determine refunding opportunities.

Refunding bonds are issued to retire all or a portion of an outstanding bond issue, typically to secure lower interest rates and to reduce overall debt service costs. Alternatively, some refunding is undertaken for reasons other than to achieve cost savings, such as to restructure debt service payments, to change the type of debt instruments being used, or to eliminate undesirable covenants.

A present value savings analysis will be prepared to identify the economic effects of any refunding being considered by the City. The savings from any particular refunding should generally be at least 3% of the refunded principal amount, net of all transaction expenses.

This 3% savings target may be waived by the City upon a finding that such a refunding is in the City's best overall financial interest and shall not be applicable for refunding transactions that are not solely undertaken to achieve cost savings.

5. Integration with City Capital Improvement Plan and Budgets The City is committed to long-term financial planning, maintaining appropriate reserves levels, and employing prudent practices in governance, management, and budget administration. T h e City maintains a multi-year Capital Improvement Program to establish and monitor priorities for projects. The City strives to integrate its debt issuances with the goals of the CIP by timing the issuance of debt to ensure that projects are available when needed in furtherance of the City's public purposes and in a timely manner to avoid having to make unplanned expenditures for capital improvements or equipment from its General Fund budget.

6. Policy Goals
The City is committed to long-term financial planning, maintaining appropriate reserves levels and employing prudent practices in governance, management and budget administration. It is a policy goal of the City to protect taxpayers, ratepayers and constituents by utilizing conservative financing methods and techniques so as to obtain the highest practical credit ratings (if applicable) and the lowest practical borrowing costs.

The City will comply with applicable state and federal law as it pertains to the maximum term of debt and the procedures for levying and imposing any related taxes, assessments, rates, and charges.

When refinancing debt, it shall be the policy goal of the City to realize, whenever possible, and subject to any overriding non-financial policy considerations, (i) minimum net present value debt service savings equal to or greater than 3.0% of the refunded principal amount, and (ii) present value debt service savings equal to or greater than 100% of any escrow fund negative arbitrage.

7. Consultants
The City will, when appropriate and given the specific requirements of the financing, secure the services of independent financial advisors, underwriters, disclosure counsel, bond counsel, appraisal services, and other service providers.

8. Investment of Bond Proceeds
Bond proceeds will be invested according to the City-adopted Investment Policy or the Bond Fiscal Agreement, if applicable.

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Debt Management Policy
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9. Ongoing Administration and Internal Controls
When issuing debt, in addition to complying with the terms of this Debt Policy, the City will comply with any other applicable policies regarding initial bond disclosure, continuing disclosure, post- issuance compliance, and investment of bond proceeds.

The City will accurately account for all debt-related activity. These records will be designed to ensure that the City maintains compliance with all debt covenants, as well as state and Federal laws. The City will maintain a system of reporting interest earnings that relates to and complies with Internal Revenue Code requirements relating to rebate, yield limits and arbitrage.

10. Compliance
• Initial Disclosure
In accordance with Senate Bill 1029, the City will submit a report of final sale to the California Debt and Investment Advisory Commission, not later than 21 days following the sale of the debt. A copy of the final Official Statement shall accompany the report of final sale. In the event that the Official Statement has not yet been finalized, the City will provide documentation to satisfy the requirements of SB1029, as necessary.

• Ongoing Disclosure
The City will maintain compliance with the regulations set forth in Government Code Section 8855(i), Rule 15(c) 2-12 - Securities and Exchange Commission Rule 15(c) 2-12, Continuing Disclosure ("Rule 15(c) 2-12") and SB 029.

Section 8855(i), Rule 15(c) 2-12. The City will file an annual report and annual financial information with the Municipal Securities Rulemaking Board's Electronic Municipal Market Access System (EMMA). The reports will be made timely and in accordance with Rule 15(c)- 12 as amended.

SB 1029. The City will submit an annual report for any issue of debt whose final sale occurred on or after January 21, 2017. The annual report will cover the reporting period July through June 30 and will be submitted no later than seven months following the end of the reporting period.

11. Adoption by Legislative Body
In accordance with SB1029, the City and the San Bruno Public Finance Authority will adopt this policy. In implementing this policy from time to time, interpretations and variations may be made at the discretion of the City Manager in the best interests of the City.

VI. Policy Adoption

History

Action Date Notes
Policy adoption by resolution October 10, 2017 Resolution No. 2017-93 Policy adoption by resolution June 25, 2024 Resolution No. 2024-XXX

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Investment Policy
Resolution No. 2023-1032024-XXX
September 12, 2023 June 25, 2024
I. Purpose
The Council has adopted this Investment Policy ("Policy") in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the unexpended funds of the City. All such investments shall be made in accordance with the Policy and in compliance with the California Government Code.

B. Liquidity standard: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.

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San Bruno City CouncilJune 25, 2024

San Bruno City Council
June 25, 2024