Agenda, second session — San Bruno City Council, July 23, 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
July 23, 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/88504401726?
pwd=Hcg3KIZqHy1B6pKblYhBsFeTiYFa2q.1
Phone Line: 16465588656
Webinar ID: 885 0440 1726
Webinar Password: 744140
*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. The nomination period for the November 2024 General Municipal Election is now open and closes at 5:00 pm on Friday, August 9, 2024. This November, Districts 2 and 3, as well as the At Large Mayor, will be up for election.  For information about the November 2024 election, or if interested in running for office, please visit sanbruno.ca.gov/Elections or contact the City Clerk’s Office at 6506167061.
b. Each Friday night in August, enjoy good music and fun company at the Summer Concert Series!  Concerts start at 6:00 pm near the tennis courts in San Bruno City Park c. Join us on the 500 block of San Mateo Avenue Tuesday, August 6th from 5:00 to 9:00 pm for National Night Out, presented by the City and the San Bruno Improvement Group and Community. The event is a night of fun, building policecommunity partnerships and neighborhood camaraderie to make our neighborhoods safer and a better place to work and live.  This is followed by other neighborhood events
d. We are pleased to announce the Soft Opening of the new Recreation and Aquatic Center on July 24th. We invite the public to visit the facility and explore our stateoftheart fitness center, indoor swimming pool, gymnasium, and rentable spaces for parties and events. For program details and operating hours, please visit the City of San Bruno website.  Additionally, we encourage you to mark your calendars for the Grand Opening of the facility on August 24th. e. There is no regular City Council meeting on the second Tuesday in August. The next regular City Council meeting will be held on August 27, 2024 at 7:00 pm f. Receive Presentation from Caltrain

6. CONSENT CALENDAR
All items are considered routine or implement an earlier Council action and may be enacted by one motion; there will be no separate discussion, unless requested. There will be a single public comment period for all items in this section unless a Councilmember requests to pull an item for a separate vote. a. Approve the Draft Special Meeting Minutes for July 9, 2024 and Regular Meeting Minutes for July 9, 2024
b. Approve Accounts Payable for July 1, 2024, and July 8, 2024. c. Accept Payroll for June 16, 2024 and June 30, 2024
d. Consider Adoption of a Resolution Authorizing the City Manager to Execute an Agreement with CSG Forte for Payment Processing Services
e. Consider Adoption of a Resolution:

Approving the Design of the 202324 Slurry Seal Project; Authorizing the City Manager to Execute a Construction Contract with American Asphalt Repair & Resurfacing Company, Inc. for the 202324 Slurry Seal Project in the amount not to exceed $668,398.08;
Approving a Construction Contingency of $100,000;
Transferring the budget in the amount of $160,000 from the 202223 Slurry Seal Project to the 202324 Slurry Seal Project;
Approving a Total Project Budget in the Amount of $1,017,000 and Determining the Project is Exempt Under the California Environmental Quality Act f. Consider Adoption of a Resolution:

Approving the Design of the Winter Storm Hazard Mitigation Project adjacent to Water Tank 1 by Cunningham Way;
Authorizing the City Manager to Execute a Construction Contract with Farallon Company Engineering for the Winter Storm Hazard Mitigation Project within Cityowned Property, Located near the 400block of Cunningham Way in an amount not to exceed $213,980; Approving a Construction Contingency of $32,097;
Approving a Total Project Budget in the Amount of $429,486; and Determining the Project is Exempt Under the California Environmental Quality Act g. Consider Adoption of an Ordinance Amending the Zoning Map for the Properties at 111 San Bruno Avenue West and 761767 Huntington Avenue
h. Consider Adoption of a Resolution:

Accepting and Appropriating Peninsula Clean Energy Member Agency Energy Grant Funding and Authorizing the City Manager to Execute any Funding Agreements with Peninsula Clean Energy Authority in the Amount of $506,409 for Phase 1 of the Regulated Output (R.O.) Streetlight Replacement Project (CIP #60035) Accepting and Appropriating Department of Energy, Energy Efficiency Conservation Block Grant Funding and Authorizing the City Manager to Execute any Funding Agreements with the Department of Energy in the Amount of $76,430, When Received, for Phase 1 of the Regulated Output (R.O.) Streetlight Replacement Project (CIP #60035)
Authorizing the City Manager to Purchase the Solar Streetlights in an Amount Not to Exceed $686,000; and
Determining the Project is Exempt Under the California Environmental Quality Act i. Consider Adoption of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Amending Chapter 2.36 (Personnel System) of the San Bruno Municipal Code Regarding Personnel Regulations”
j. Consider Adoption of a Resolution Declaring Pursuant to Government Code Sections 54221 (b) and 54221 (f)(1)(B) that Certain Real Property Owned by the City Located at 618 San Mateo Avenue in the City of San Bruno (APN 020131240) is Exempt Surplus Land and Not Necessary for the City’s Use, Finding that Such Declaration is Exempt from Environmental Review Under the California Environmental Quality Act, and Taking Related Actions

7. CONDUCT OF BUSINESS
Public comment will be requested after each topic in this section a. Consider Introducing, Reading by Title Only, and Waiving Further Reading of an Ordinance Amending San Bruno Municipal Code Section 2.04.030 Regarding City Council Regular Meeting Location, Section 2.08.040 Regarding Planning Commission Regular Meeting Location, and Section 2.20.010 Regarding City Clerk Office Hours b. Consider Adoption of an Uncodified Ordinance Ordering the Submission of a Proposition Incurring Bonded Indebtedness to the Qualified Voters of the City of San Bruno at the General Municipal Election to be held on November 5, 2024, for the Purpose of Financing the Cost of the Acquisition, Construction and Improvement of Certain Municipal Improvement Projects Constituting Public Infrastructure of the City
c. Consider Adoption of a Resolution Placing a Measure to Approve the Issuance of General Obligation Bonds to Finance Municipal Improvements Constituting Public Infrastructure of the City on the November 5, 2024, Ballot, and Requesting Consolidation with the Statewide General Election and Setting Procedural Details and Adoption of a Resolution Setting Priorities for Filing Written Arguments and Authorizing Rebuttals for a City Measure that Approves the Issuance of General Obligation Bonds to Finance Municipal Improvements

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

10. ADJOURNMENT – The next Regular City Council Meeting will be held on August 27, 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 July 19, 2024, by 6:00 pm. 1 of 145
"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
July 23, 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.

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

10. ADJOURNMENT – The next Regular City Council Meeting will be held on August 27, 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 July 19, 2024, by 6:00 pm. 2 of 145
"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
July 23, 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.

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

10. ADJOURNMENT – The next Regular City Council Meeting will be held on August 27, 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 July 19, 2024, by 6:00 pm. 3 of 145
"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
July 23, 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.

1. CALL TO ORDER

2. ROLL CALL

3. PLEDGE OF ALLEGIANCE

8. COUNCIL COMMITTEE REPORT OUT

9. COMMENTS FROM COUNCIL MEMBERS

" 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

MINUTES

SAN BRUNO CITY COUNCIL SPECIAL MEETING
July 9, 2024
6:00 PM

1. CALL TO ORDER
The meeting was called to order at 6:00 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 LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
Name of Case: In Re: National Prescription Opiate Litigation b. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8
Property: APN 020-131-240 (618 San Mateo Ave - City Fireman's Hall) Agency Negotiator: City Manager
Negotiating Parties: Artichoke Joe’s
Under Negotiation: Price and Terms of Payment
No members of the public wished to speak on these items No reportable actions were taken

4. ADJOURNMENT
This meeting adjourned at 6:49 pm to the next Regular City Council Meeting on July 9, 2024 at 7:00 pm.

These City Council meeting minutes were prepared by Lupita Huerta, City Clerk, and pr
esented to the City Council for approval at the regular meeting of July 23, 2024. ______________________________ ______________________________ Lupita Huerta
City Clerk
Rico E. Medina
Mayor
5 of 145
Item 6a.

"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

MINUTES

SAN BRUNO CITY COUNCIL REGULAR MEETING
July 9, 2024
7:00 PM

1. CALL TO ORDER
The meeting was called to order at 7:00 pm

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

Medina were all present

3. PLEDGE OF ALLEGIANCE
Councilmember Hamilton led the pledge

4. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
No members of the public wished to address the City Council under Public Comment

5. ANNOUNCEMENTS/PRESENTATIONS
a. The nomination period for the November 2024 General Municipal Election opens on Monday, July 15, 2024. The City of San Bruno transitioned to By-District Elections, and this November, Districts 2 and 3, as well as the At Large Mayor, will be up for election.

For information about the November 2024 election, please visit sanbruno.ca.gov/Elections
b. Do you know a person or group who has provided special or extraordinary service to the San Bruno community? Nominate them for a service award! The City of San Bruno is accepting service nomination applications through August 31st. Applications will be considered in September. For more information and an application, go to sanbruno.ca.gov/srp
c. Proclamation Recognizing July 2024 as Disability Pride Month d. Proclamation Recognizing July 2024 as National Park and Recreation Month Community Services Director Travis Karlen accepted proclamation e. Receive Presentation on 4th of July Fireworks Public Safety Operations Results Police Chief Ryan Johansen presented the item to the City Council The following member of the public provided public comment:
• Matt Jones

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City Council – Minutes
July 9, 2024

Page 2 of 4 ends

6. CONSENT CALENDAR
a. Approve the Draft Special Meeting Minutes for June 25, 2024 and Regular Meeting Minutes for June 25, 2024
b. Approve Accounts Payable for June 24, 2024
c. Approve Reconciliation of General Ledger to Bank Report Dated April 30, 2024 d. Consider Adoption of a Resolution Approving a Purchase Agreement with the City and County of San Francisco, and Authorizing the City Manager to Execute all Documents Necessary to Close Escrow for the Huntington Avenue Bicycle and Pedestrian Improvement Project and Finding the Action is Exempt From CEQA e. Consider Adoption of a Resolution Establishing a Workweek and Compensation Pilot Program for the City’s Unrepresented Employees and Updating the City’s 2024 Salary Schedule Effective September 1, 2024
No items were pulled for a separate vote
Item e – Mayor R. Medina pulled the item and made a statement The following member of the public provided public comment:
• Matt Jones
M/S Hamilton/Salazar to approve the Consent Calendar. Motion passed unanimously.

7. PUBLIC HEARING(S)
a. Hold Public Hearing and Consider Taking the Following Actions to Approve the Mixed- Use Project at 111 San Bruno Avenue West: 1. Introduce, Read by Title Only and Waive Further Reading of an Ordinance Amending the Zoning Map to rezone APNs: 020-121- 350 and 020-121-360 from Planned Development District (P-D) to Medium Density, Mixed-Use District (TOD-1); 2. Adopt a Resolution Conditionally Approving a Tentative Tract Map, Density Bonus Request, Architectural Review Permit, and Affordable Housing Plan, to Allow the Construction of a New Five-Story, Mixed-Use Building with 46 Residential Units, Approximately 2,670 Square Feet of Ground Floor Commercial Space, and 48 Total Parking Spaces
Councilmember Alvarez issued a disclosure before the start of the presentation Community Development Senior Planner Michael Smith presented the item to the City Council and answered questions
The following member of the public provided public comment:
• Eli Robles
• Nick Martin
• Matt Jones
M/S Salazar/Hamilton to close public hearing. Motion passed unanimously.

Senior Planner Michael Smith made additional comments
Mayor R. Medina re-opened public comment
Senior Planner Michael Smith answered questions

7 of 145

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Page 3 of 4 ends

Property owner Larry Li answered questions
M/S Hamilton/Salazar to close public hearing. Motion passed unanimously.

M/S Hamilton/M. Medina to approve as read by the City Clerk. Motion passed unanimously.

8. CONDUCT OF BUSINESS
a. Consider Adoption of a Resolution Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Improvement of Municipal Improvement Projects Constituting Public Infrastructure of the City, and their Financing Through the I
ssuance of General Obligation Bonds; and Introduction, Reading by Title Only, and W
aiving Further Reading of an Uncodified Ordinance Ordering the Submission of a P
roposition Incurring Bonded Indebtedness to the Qualified Voters of the City of San B
runo at the General Municipal Election to be held on November 5, 2024, for the P
urpose of Financing the Cost of the Acquisition, Construction and Improvement of Certain Municipal Improvement Projects Constituting Public Infrastructure of the City City Manager Alex McIntyre introduced the item and Chief Financial Officer Nick P
egueros presented the item to the city Council
The following member of the public provided public comment:
• Matt Jones
• Ray Moser
Chief Financial Officer Nick Pegueros answered questions City Attorney Trisha Ortiz answered questions
City Manager Alex McIntyre answered questions
M/S Hamiton/Salazar to approve the resolution and ordinance as read by the City Clerk.

Motion passed unanimously.
b. Consider Introducing, Reading by Title Only and Waving a Further Reading of an Ordinance of the City Council of the City of San Bruno Amending San Bruno Municipal Code Chapter 2.36 (Personnel System)
Chief Financial Officer Nick Pegueros presented the item to the City Council.

No members of the public wished to speak on this item
M/S Salazar/Alvarez to introduce the ordinance as ready by the City Clerk. Motion pas
sed unanimously.
c. Consider Adoption of a Resolution Authorizing the Receipt and Expenditure of $91,970.55 in Department of California Highway Patrol (CHP) Grant Funds to facilitate t
he FY24/25 Cannabis Tax Fund Grant Program, Pursuant to FY24/25 CTFGP Law Enforcement - San Bruno Police Department Award #17930
Police Chief Ryan Johansen provided an oral report to the City Council No members of the public wished to speak on this item
M/S Hamilton/Salazar to approve resolution as read by the City Clerk. Motion passed un
animously.
8 of 145
City Council – Minutes
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Page 4 of 4 ends

9 COUNCIL COMMITTEE REPORT OUT
The City Council had no committee report outs.

10. COMMENTS FROM COUNCIL MEMBERS
The following members of the City Council provided comments:
• Councilmember Alvarez
• Councilmember M. Medina
• Councilmember Hamilton
• Vice Mayor R. Medina

11. ADJOURNMENT
The meeting adjourned at 8:51 pm to the next Regular City Council Meeting on July 23, 2024 at 7:00 pm.

These City Council meeting minutes were prepared by Lupita Huerta, City Clerk, and pr
esented to the City Council for approval at the regular meeting of July 23, 2024. ______________________________  ______________________________ Lupita Huerta
City Clerk
Rico E. Medina
Mayor
9 of 145
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 01, 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 209669 through 209793 inclusive, totaling $661,148.40 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 $271,206.10
006 American Rescue Plan Act $494.74
121 Federal/State Grants $6,666.66
122 Solid Waste / Recycle $425.00
132 Agency On Aging $36.21
133 Restricted Revenues $5,595.21
137 Developer Project Contributions $61,719.81
201 Parks and Facilities Capital $7,686.25
203 Street Improvement Projects $47,299.50
207 Technology Capital $6,000.00
611 Water Fund $166,179.35
621 Stormwater Fund $23,670.24
631 Wastewater Fund $22,247.45
641 CityNet Services Fund $22,067.57
701 Central Garage $1,600.92
702 Facility Maintenance Fund $13,603.81
703 General Equipment Revolving $3,402.90
707 Technology Development $1,246.68
TOTAL FOR APPROVAL $661,148.40
Respectfully submitted,
_________________________
Chief Financial Officer Date
Docusign Envelope ID: 64084CCB-513B-43E3-9215-4706872E7A87 7/9/2024
10 of 145
Item 6b.
7/1/2024 3:43:29PM
Positive Pay Listing
City of San Bruno
apPosPay Page: 1
Bank: apbank 432000438Document group: dzuniga
Vendor Code & Name Check # Check Date Amount
0107236 24/7 ROOTER & PLUMBING 209669 2,000.007/1/2024 0111541 350 BAY AREA 209670 190.007/1/2024
0106896 A-1 RHINO LININGS 209672 1,172.507/1/2024
0110685 ACME WORKWEAR 209673 4,272.487/1/2024
0000858 ADECCO EMPLOYMENT SERVICES 209674 3,173.157/1/2024 0018976 ALPHA ANALYTICAL LAB. INC. 209675 2,190.007/1/2024 0111540 AMINCO INTERNATIONAL(USA),INC. 209677 213.507/1/2024 0111546 AMS SYSTEM, INC. 209678 7,347.947/1/2024
0110688 ANA MORALES 209743 500.007/1/2024
0109246 AQUA METRIC SALES, CO. 209679 1,072.797/1/2024 0016123 AT&T 209680 1,039.587/1/2024
0017191 AT&T 209681 56.777/1/2024
0015110 AT&T MOBILITY 209682 742.027/1/2024
0105649 ATLAS PLUMBING AND ROOTER,INC. 209683 2,500.007/1/2024 0000345 BAKER & TAYLOR BOOKS 209685 5,952.347/1/2024
0001849 BAY AREA WATER SUPPLY & CONSERVATION AGENCY 209774 15,373.007/1/2024 0105737 BAY CITIES PYROTECTOR, INC. 209686 1,550.007/1/2024 0100119 BLACK & VEATCH CORPORATION 209687 2,321.247/1/2024 0000272 BMI IMAGING SYSTEMS 209688 999.007/1/2024
0110877 BRIAN LIU 209738 500.007/1/2024
0018531 CAL-STEAM, INC 209690 191.847/1/2024
0102989 CALIFORNIA DIESEL & POWER 209689 6,905.897/1/2024 0111158 CALIFORNIA SEWER ENGINEERING, INC. 209768 3,500.007/1/2024 0110885 CALVIN IWAN 209730 500.007/1/2024
0109223 CAN DO FLOORING LLC 209691 4,705.007/1/2024
0017284 CHEMSEARCHFE 209693 886.037/1/2024
0016324 CINTAS CORPORATION #464 209694 262.077/1/2024 0000386 CITY OF SOUTH SAN FRANCISCO 209695 23,133.727/1/2024 0097608 CITY OF SOUTH SAN FRANCISCO 209696 3,000.007/1/2024 0109998 CONSOR PMCM, INC. 209697 18,731.257/1/2024
0110941 CORODATA RECORDS MANAGEMENT, INC. 209760 242.527/1/2024 0018331 CSG CONSULTANTS INC. 209700 44,542.007/1/2024 0111542 CUSTOM METAL MFG.CO 209701 2,049.177/1/2024
0106011 CWEA-SFBS 209702 103.007/1/2024
0018870 DANIEL RIVAS 209762 500.007/1/2024
0097619 DARCY AXIAQ 209684 500.007/1/2024
0018188 DAU PRODUCTS 209703 1,042.267/1/2024
0108696 DAVID J POWERS AND ASSOCIATES, INC. 209756 21,373.687/1/2024 0106328 DEPT. OF TRANSPORTATION 209705 2,250.007/1/2024 0101178 DISCOUNT PLUMBING 209706 3,000.007/1/2024
0110442 ELISEO AMAYA 209676 500.007/1/2024
0017300 ENVIRONMENTAL HEALTH FEE 209710 58,624.147/1/2024 0102627 FASTRK VIOLATION PROCESSING DEPT. 209784 12.007/1/2024 0000944 FEDEX 209711 47.007/1/2024
0107401 FERGUSON ENTERPRISES,LLC#3326 209712 6,591.227/1/2024 0095608 FIRE APPARATUS SOLUTIONS 209713 5,785.857/1/2024 0109510 FIRST ALARM 209714 160.147/1/2024
0109400 FLEETROCK, LLC 209715 500.007/1/2024
0001782 FLOWERS ELECTRIC & SVC.CO.INC. 209716 33,440.827/1/2024 0018117 FLYERS ENERGY, LLC 209717 7,609.957/1/2024
0102869 FRANCHISE TAX BOARD 209719 25.007/1/2024
0111440 GALEN YUSUFZAI-BOGGS 209791 837.987/1/2024
0110778 GEMINI GROUP LLC 209722 16,841.947/1/2024
Page: 1
Docusign Envelope ID: 64084CCB-513B-43E3-9215-4706872E7A87

11 of 145

7/1/2024 3:43:29PM
Positive Pay Listing
City of San Bruno
apPosPay Page: 2
Bank: apbank 432000438Document group: dzuniga
Vendor Code & Name Check # Check Date Amount
0099124 GENNARO RUOCCO 209765 500.007/1/2024
0 111210 GHIRARDELLI ASSOCIATES, INC. 209723 5,900.007/1/2024 0000162 GRAINGER 209725 722.457/1/2024
0000541 GRANITE ROCK COMPANY 209726 402.317/1/2024
0105687 GRAPHICS ON THE EDGE 209727 1,353.737/1/2024
0095966 GREAT AMERICA FINANCIAL SVC. 209728 307.327/1/2024 0111486 HD SUPPLY, INC. 209729 1,512.707/1/2024
0108488 HINDERLITER DE LLAMAS & ASSOCIATES 209704 2,546.207/1/2024 0111528 JAMIE COVENTRY 209731 10.007/1/2024
0110359 JANE E. LIGHT 209732 1,080.007/1/2024
0111545 JESSICA MEYER 209740 8.007/1/2024
0000075 K-119 TOOLS OF CALIFORNIA INC. 209733 1,228.157/1/2024 0110872 KRISTIE WOO 209788 2,639.177/1/2024
0109500 LAMPO INVESTIGATIONS-POLYGRAPH 209735 1,000.007/1/2024 0111295 MAZIYAR KESHTGAR 209734 5,500.007/1/2024
0016041 METROMOBILE COMMUNICATIONS 209739 8,242.777/1/2024 0110060 MICHAEL LAUGHLIN 209736 182.967/1/2024
0110164 MISCOWATER 209741 688.897/1/2024
0106447 MOORE,IACOFANO, GOLTSMAN, INC. 209742 2,756.257/1/2024 0111417 NANCY GARCIA 209720 123.107/1/2024
0102920 NBS 209745 4,250.007/1/2024
0017474 NICHOLAS PEGUEROS 209752 2,000.007/1/2024
0111055 O'REILLY AUTO PARTS 209747 14.017/1/2024
0110308 OLIVER CARCAMO 209692 494.747/1/2024
0097567 ONE HOUR DRY CLEANING 209746 2,037.657/1/2024 0018701 ORKIN PEST CONTROL 209748 1,218.907/1/2024
0104416 OVERDRIVE, INC. 209749 2,526.387/1/2024
0000012 PACIFIC GAS & ELECTRIC 209750 37,734.197/1/2024 0017141 PACIFIC LIFT AND EQUIPMENT CO.INC. 209737 770.007/1/2024 0095210 PAVEMENT ENGINEERING INC. 209751 382.507/1/2024 0001154 PENINSULA LIBRARY SYSTEM 209753 555.667/1/2024 0108589 PERFORMANCE FOODSERVICE-LEDYARD 209718 36.217/1/2024 0110681 PETER GILLI 209724 2,000.007/1/2024
0018756 POLLARDWATER 209754 386.647/1/2024
0111229 PORTER CAPITAL CORPORATION 209755 6,000.007/1/2024 0102915 PRECISE PRINTING & MAILING 209757 527.977/1/2024 0098436 PROFESSIONAL LAND SERVICES 209758 3,945.007/1/2024 0013981 QUILL CORPORATION 209759 46.477/1/2024
0107432 RED WING BRANDS OF AMERICA,INC 209761 675.337/1/2024 0111272 RENAISSANCE ENTREPRENEURSHIP CENTER 209709 6,666.667/1/2024 0110332 RICHARDS,WATSON&GERSHON A PROFESSIONAL CORP. 209671 92,561.297/1/2024 0106483 ROBE
RT EDWARDS 209707 207.007/1/2024
0106293 ROBERT HALF 209763 5,287.607/1/2024
0017807 SAN MATEO COUNTY CONTROLLER'S OFFICE 209699 45,195.207/1/2024 0018597 SAN MATEO DAILY JOURNAL 209767 1,872.007/1/2024 0110939 SEAN MORRIS 209744 207.007/1/2024
0102917 SFPUC FINANCIAL SERVICES 209769 599.007/1/2024 0018778 SHANNON ROHATCH 209764 500.007/1/2024
0018962 SHOE DEPOT INC. 209770 695.937/1/2024
0018214 SIGILLO SUPPLY INC. 209771 4,897.257/1/2024
0110326 SNG & ASSOCIATES, INC. 209772 5,040.007/1/2024 0017087 STAPLES 209773 100.007/1/2024
0110887 STEVE OJEDA VALDEZ 209782 408.137/1/2024
0102991 STEVE SALAZAR 209766 551.617/1/2024
Page: 2
Docusign Envelope ID: 64084CCB-513B-43E3-9215-4706872E7A87 12 of 145
7/1/2024 3:43:29PM
Positive Pay Listing
City of San Bruno
apPosPay Page: 3
Bank: apbank 432000438Document group: dzuniga
Vendor Code & Name Check # Check Date Amount
0095565 SWINE
RTON BUILDERS 209775 3,216.007/1/2024
0110892 TEAMCIVX, LLC 209776 6,500.007/1/2024
0015671 TECHNOLOGY, ENGINEERING & CONSTRUCTION, INC. 209698 3,780.007/1/2024 0002025 TELECOMMUNICATIONS ENGINEERING ASSOCIATES 209708 85.007/1/2024 0000241 THE ADAM-HILL COMPANY 209777 4,957.827/1/2024 0017928 THE EDCCO GROUP, INC. 209778 3,450.007/1/2024 0017748 TIMOTHY J WALLACE 209779 500.007/1/2024
0109115 TONY GARCIA 209721 429.997/1/2024
0018944 ULINE, INC. 209780 1,665.227/1/2024
0098625 UPS 209781 67.587/1/2024
0095749 VERIZON WIRELESS 209783 5,174.217/1/2024
0108652 WATER WORKS ENGINEERS, LLC 209785 5,557.507/1/2024 0104660 WEST YOST ASSOCIATES, INC. 209786 3,439.007/1/2024 0096893 WILSEY HAM 209787 8,202.507/1/2024
0108261 WOODARD & CURRAN 209789 738.757/1/2024
0109109 WRECO 209790 14,048.427/1/2024
0109122 ZERO TURN POWER WASHING 209792 9,363.007/1/2024 0103399 ZUMAR INDUSTRIES, INC. 209793 1,318.317/1/2024 Total count: 125
GrandTotal: 661,148.40
Page: 3
Docusign Envelope ID: 64084CCB-513B-43E3-9215-4706872E7A87 13 of 145

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 08, 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 209794 through 209878 inclusive, totaling $1,643,938.47 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 $135,695.14
132 Agency On Aging $943.00
137 Developer Project Contributions $994.50
201 Parks and Facilities Capital $625,487.10
203 Street Improvement Projects $730,128.45
611 Water Fund $37,606.52
621 Stormwater Fund $7,081.76
631 Wastewater Fund $19,189.35
641 CityNet Services Fund $2,612.86
701 Central Garage $1,266.58
702 Facility Maintenance Fund $350.00
703 General Equipment Revolving $24,633.66
707 Technology Development $1,894.78
711 Self-Insurance $56,054.77
TOTAL FOR APPROVAL $1,643,938.47

Respectfully submitted,

_________________________
Chief Financial Officer Date
Docusign Envelope ID: FE988178-BE63-4F52-81E5-CBE3D600AC77 7/9/2024

14 of 145

7/8/2024 12:10:59PM
Positive Pay Listing
City of San Bruno
apPosPay Page: 1
Bank: apbank 432000438Document group: dzuniga
Vendor Code & Name Check # Check Date Amount
0111570 ALAA AL DEEN AL JADA AN 209794 14.837/8/2024
0100910 ALMA CONTRERAS 209817 50.007/8/2024
0104542 ALTA LANGUAGE SERVICES, INC. 209796 66.007/8/2024 0111572 AMY CORTEZ 209818 23.837/8/2024
0110688 ANA MORALES 209849 382.197/8/2024
0110894 ANH TRAN 209870 500.007/8/2024
0091577 APA CALIFORNIA CONFERENCE 209798 2,100.007/8/2024 0016123 AT&T 209799 203.337/8/2024
0017913 AT&T 209800 552.007/8/2024
0107986 ATLAS PLUMBING AND ROOTER,INC. 209801 350.007/8/2024 0109646 BIO CAR CARE 209803 565.007/8/2024
0110279 BOUCHER LAW, PC 209804 21,347.507/8/2024
0017372 CALBO 209806 1,720.007/8/2024
0018048 CALLANDER ASSOCIATES LANDSCAPE ARCHITECTURE, INC. 209842 5,057.757/8/2024 0110323 CAPF 209807 885.007/8/2024
0102998 CATHERINE BUSSANI 209805 45.007/8/2024
0109693 CBRE, INC. 209809 4,000.007/8/2024
0017206 CENTRAL CONCRETE SUPPLY CO.INC 209810 393.737/8/2024 0016324 CINTAS CORPORATION #464 209812 113.357/8/2024 0097202 CITY OF SAN MATEO 209813 60.007/8/2024
0000508 CLEARLITE TROPHIES 209814 35.167/8/2024
0018331 CSG CONSULTANTS INC. 209820 31,960.007/8/2024 0106909 DALIA MANAOIS 209847 500.007/8/2024
0111571 DAVID CARMAN 209808 15.177/8/2024
0101178 DISCOUNT PLUMBING 209822 6,000.007/8/2024
0018799 ECONOMIC&PLANNING SYSTEMS INC. 209824 255.007/8/2024 0111043 ENOVEN INDUSTRIES LLC 209825 435.587/8/2024
0017300 ENVIRONMENTAL HEALTH FEE 209826 327.427/8/2024 0018823 EUGENE QUINN 209859 500.007/8/2024
0094282 EXPRESS PLUMBING INC. 209827 2,000.007/8/2024 0013683 F. FERRANDO & CO. 209828 20,239.007/8/2024
0000944 FEDEX 209829 134.277/8/2024
0018117 FLYERS ENERGY, LLC 209830 4,698.767/8/2024
0102869 FRANCHISE TAX BOARD 209831 25.007/8/2024
0107011 FRANK J. BIANCHI 209802 1,189.507/8/2024
0109776 FRESH LINE PRODUCE 209832 412.007/8/2024
0108415 GOLDEN BAY CONSTRUCTION, INC. 209834 11,333.037/8/2024 0000541 GRANITE ROCK COMPANY 209835 1,319.047/8/2024
0111568 HANAN KATZ-LEWIS 209841 73.297/8/2024
0110689 HARRY YIP 209878 304.347/8/2024
0111567 HIEU DOAN 209823 44.177/8/2024
0104784 JD CESARE CONSTRUCTION 209837 2,000.007/8/2024 0016347 JEFFREY MADONICH 209846 1,430.007/8/2024
0093434 JT2 INTEGRATED RESOURCES 209839 29,217.507/8/2024 0000771 JT2 INTEGRATED RESOURCES 209838 26,837.277/8/2024 0018050 KAISER FOUNDATION HEALTH PLAN 209840 5,495.867/8/2024 0109771 LATHROP CONSTRUCTION ASSOCIATES, INC. 209816 583,828.297/8/2024 0103542 LAUTZENHISER'S STATIONERY INC. 209843 1,095.697/8/2024 0111553 LEADERSHIP COUNCIL SAN MATEO COUNTY 209819 2,800.007/8/2024 0017570 LEHR AUTO ELECTRIC 209844 24,633.667/8/2024
0108432 LUPITA HUERTA 209836 500.007/8/2024
0111569 MANDY CHEUNG 209811 14.837/8/2024
0111565 MARTIN ALMEIDA 209795 73.197/8/2024
Page: 1
Docusign Envelope ID: FE988178-BE63-4F52-81E5-CBE3D600AC77

15 of 145

7/8/2024 12:10:59PM
Positive Pay Listing
City of San Bruno
apPosPay Page: 2
Bank: apbank 432000438Document group: dzuniga
Vendor Code & Name Check # Check Date Amount
0097806 O'GRAD
Y PAVING, INC. 209852 680,879.917/8/2024
0110243 ODP BUSINESS SOLUTIONS, LLC 209851 77.967/8/2024 0000012 PACIFIC GAS & ELECTRIC 209853 30,193.807/8/2024 0106110 PACIFIC OFFICE AUTOMATION 209854 951.577/8/2024 0106829 PACIFIC OFFICE AUTOMATION INC. 209855 283.487/8/2024 0015163 PENINSULA SPORTS OFFICIALS ASSOC.INC. 209864 258.007/8/2024 0103921 PHILIP WOFFENDEN 209877 494.437/8/2024
0018861 PITNEY BOWES 209856 6,000.007/8/2024
0018101 PIVOT INTERIORS, INC. 209857 4,805.997/8/2024 0000285 PREFERRED ALLIANCE, INC. 209858 382.367/8/2024 0098733 RICK DAMON 209821 23.837/8/2024
0000022 ROBERT LOUIE 209845 1,452.757/8/2024
0017145 SAN MATEO LAWN MOWER SHOP 209860 2,020.947/8/2024 0018962 SHOE DEPOT INC. 209861 541.387/8/2024
0104548 SLOAN SAKAI YEUNG & WONG LLP 209862 770.007/8/2024 0105745 SMELLY MEL'S PLUMBING 209863 2,000.007/8/2024 0111564 ST. BRUNO'S CHURCH 209865 21.057/8/2024
0111566 STEPHEN MAXOUTOPOULIS 209848 31.707/8/2024
0111365 STRIPING GRAPHICS 209866 7,425.007/8/2024
0105796 SUNRISE FOOD DISTRIBUTOR INC. 209867 531.007/8/2024 0110968 SUPER SOCCER STARS 209868 9,535.507/8/2024
0111462 TALHA AMAR 209797 4.907/8/2024
0015691 TEAMSTERS LOCAL 856 209869 12,975.007/8/2024
0110140 TRUE NORTH COMPLIANCE SERVICES, INC 209850 9,187.667/8/2024 0016835 US BANK NATIONAL ASSOCIATION 209871 875.007/8/2024 0096844 USA BLUE BOOK 209872 4,237.767/8/2024
0095749 VERIZON WIRELESS 209873 5,129.127/8/2024
0096767 WEST COAST ARBORISTS, INC. 209874 15,000.007/8/2024 0105955 WEST COAST CODE CONSULTANTS, INC. 209815 41,779.547/8/2024 0104660 WEST YOST ASSOCIATES, INC. 209875 1,459.117/8/2024 0096893 WILSEY HAM 209876 6,438.037/8/2024
0110530 YIXIN GAO 209833 15.177/8/2024
Total count: 85
GrandTotal: 1,643,938.47
Page: 2
Docusign Envelope ID: FE988178-BE63-4F52-81E5-CBE3D600AC77 16 of 145
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 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 21, 2024 is recommended.

The Labor Summary report reflecting the total payroll amount of $1,923,333.30 for bi- weekly pay period ending June 16, 2024, by fund is shown below:

Fund Amount
Fund: 001 - GENERAL FUND 1,445,987.01
Fund: 006 - AMERICAN RESCUE PLAN ACT 53,215.25
Fund: 121 - FEDERAL/STATE GRANTS 51.59
Fund: 122 - SOLID WASTE/RECYCLE 2,891.94
Fund: 132 -AGENCY ON AGING 1,777.74
Fund: 137 - DEVELOPER PROJECT CONTRIBUTIONS 6,889.02
Fund: 201 - PARKS AND FACILITIES CAPITAL 207.95
Fund: 203 - STREET IMPROVE. PROJECTS 13,329.18
Fund: 207 - TECHNOLOGY CAPITAL 2,179.91
Fund: 611 - WATER FUND 119,324.99
Fund: 621 - STORMWATER FUND 28,783.67
Fund: 631 - WASTEWATER FUND 94,214.59
Fund: 641 - CITYNET SERVICES FUND 83,674.13
Fund: 701 - CENTRAL GARAGE 15,894.10
Fund: 702 - FACILITY MAINT.FUND 28,622.30
Fund: 707 - TECHNOLOGY DEVELOPMENT 24,881.72
Fund: 711 - SELF INSURANCE 1,408.21
Total: 1,923,333.30
_________________________________
Nick Pegueros, CFO Date
17 of 145
Item 6c.

18 of 145

City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Audrey Afe-Tuufuli, Community Services Business Manager SUBJECT: Consider Adoption of a Resolution Authorizing the City Manager to Execute an Agreement with CSG Forte for Payment Processing Services BACKGROUND:

The Community Services Department uses a third-party financial transaction company to process payments for the Department. The opening of the Recreation and Aquatic Center (RAC) presented an opportunity to find a new vendor who can handle the greater complexity in financial processes created by the RAC.

DISCUSSION:

Staff embarked on a strategic evaluation process and in collaboration with the Finance Department to establish a new ACH partner to manage payments for the RAC. CSG Forte, a partner of CivicRec, our registration software, was selected for its ability to provide all payment processing services for the department. This partnership will not only improve the efficiency of financial transactions but also enhance the overall service delivery to the public.

Purchasing Procedures Policy No.19-1 requires departments to utilize the General Services Agreement (GSA) for contracts. CSG Forte presented their contract considering the complexities associated with their services and products. Staff have reviewed the contract terms from CSG Forte and deemed them acceptable, through legal consultation with the City Attorney.

Therefore, staff recommends the City Council to authorize the City Manager to execute a contract with CSG Forte, acknowledging the variance in terms from the City’s standard GSA, yet recognizing the invaluable merits and consonance with the department’s operational requisites.

FISCAL IMPACT:

The agreement with CSG Forte for payment processing services will incur a cost to the Community Services Department. However, the efficiency gains and improved service delivery resulting from this partnership are expected to offset the initial investment over time.

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. 19 of 145
Item 6d.

Honorable Mayor and Members of the City Council
July 23, 2024

Page 2 of 2 ends

8 4
3 RECOMMENDATION:

Adopt a Resolution Authorizing City Manager to Sign Agreement with CSG Forte for Payment Processing Services.

ALTERNATIVES:

1. Decline to adopt the resolution. However, staff does not recommend this due to the complexity and additional research for ACH clearing house.

ATTACHMENTS:

1. Resolution

2. CSG Forte Contract

3. CSG Fee Schedule
20 of 145
1 9
4 4
RESOLUTION NO. 2024 – ___

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

CITY MANAGER TO EXECUTE AN AGREEMENT WITH CSG FORTE FOR PAYMENT

PROCESSING SERVICES
WHEREAS, the City Council of San Bruno places a high priority on the efficient and effective delivery of services to its residents, recognizing that the Community Services Department plays a vital role in meeting the diverse needs of the community; and WHEREAS, the Community Services Department of San Bruno caters to a diverse population with a wide array of needs and requirements, necessitating an efficient and dependable payment processing system capable of handling a broad range of transactions and services.

WHEREAS, the efficient processing of payments and financial transactions within the Community Services Department is vital for maintaining seamless operational continuity and ensuring the prompt delivery of essential services to residents; and WHEREAS, the adoption of modern payment processing technologies and services is essential for improving operational efficiency, reducing administrative burdens, and safeguarding the accuracy of financial transactions within the Community Services Department.

WHEREAS, the modernization and enhancement of payment processing systems are recognized as crucial steps towards improving operational efficiency, transparency, and customer service delivery within the Community Services Department, aligning with the City of San Bruno's dedication to embracing technological advancements for the betterment of its community;
WHEREAS, after thorough consideration and evaluation, CSG Forte Payments has emerged as a distinguished provider of payment processing solutions and related services, renowned for their commitment to excellence, innovation, and tailored services for governmental entities; and
WHEREAS, the partnership with CSG Forte Payments aligns with the City of San Bruno's strategic objectives to leverage industry-leading solutions, promote innovation in service delivery, and maintain the highest standards of accountability and transparency in financial practices.

WHEREAS, the billing structure with CSG Forte Payments is structured to be based on volume rather than a fixed cost, recognizing the fluctuating nature of service usage within the Community Services Department. This flexible arrangement aligns with the City of San Bruno's aim to ensure cost-effectiveness and financial prudence in its agreements with service providers.

WHEREAS, the fee schedule outlined by CSG Forte Payments indicates the following costs associated with their payment processing services for the Community Services Department:
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ATTACHMENT 1
1 9
4 4
Processing Costs:
- Visa, MasterCard, Discover, Amex, Debit Card: 3.0% per transaction - Credit Card Chargeback Fee: $25.00 per chargeback
- Batch Fee: No Charge - Waived
- ACH Fee-debits/credits: $1.00 per transaction with Forte Verify - ACH Return Fee: $2.00 per return
- Monthly Fee: $5.00 each month per Merchant Account
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes and empowers the City Manager to proceed with the execution of an agreement with CSG Forte Payments for the provision of payment processing solutions and associated services for the Community Services Department.

BE IT FURTHER RESOLVED that this resolution shall take effect immediately upon its approval by the City Council of San Bruno, furthering the City's commitment to enhancing service delivery and operational efficiency within the Community Services Department. -oOo-
I, hereby certify that foregoing Resolution No. 2024-___ was introduced and adopted by the San Bruno City Council at a regular meeting on July 23, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
___________________________________
Lupita Huerta, City Clerk
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RAC Payment Processing Agreement CSG Forte
Community Services Department
1 | P a g e

GENERAL SERVICE AGREEMENT

RECREATION AND AQUATICE CENTER PAYMENT PROCESSING AGREEMENT This Payment Processing Agreement , including all applicable appendices and addendums hereto, is made by and between CSG Forte Payments, Inc., a Delaware corporation with its primary business address at 2121 Providence Drive, Suite 151, Fort Worth, TX 76106 ("FORTE" , and the City of San Bruno, with its primary business address at 618 San Mateo Ave, San Bruno, Ca 94066 AGENCY ), and is effective upon the date last signed below (the Effective ). FORTE provides payment processing and related products and services including but not limited to credit and
debit card processing, account verification and customer identification (collectively and to AGENCY who provides services to, or
otherwise has a business relationship with, individuals and other ).

1. GENERAL
The Agreement shall consist of these terms and conditions, each of the Appendices attached hereto if applicable, and all modifications and amendments thereto. Under the terms of the Agreement, AGENCY will be furnished with the Services described in the Agreement and attached Appendices which are selected by Agency and approved by FORTE. For any terms herein that are specifically applicable to any particular Service offered by FORTE, only the terms and conditions that apply to the specific Service(s) requested by AGENCY at any given time shall apply. Some capitalized terms which are not defined herein have specific definitions provided in Appendix A, attached hereto and incorporated by this reference.

2. USAGE

2.1 Use License . Subject to the terms and conditions of this Agreement, FORTE hereby grants to AGENCY a non- exclusive and non-transferable license to access and use the Service(s) contracted for and AGENCY hereby accepts such license and agrees to utilize and access the Services in accordance with the practices and procedures established by FORTE, which may be amended from time to time in accordance with this Agreement. AGENCY may use the Services (a) for its own internal business purposes and operations, and/or (b) as a service provided to its Constituents, unless otherwise agreed by FORTE in writing. AGENCY agrees in violation of any
applicable Law or Rule. FORTE reserves the right to use all means necessary to

2.2 Use of Proprietary Property. No license or right to use, reproduce, translate, rearrange, modify, enhance, display, sell, lease, sublicense or otherwise distribute, transfer or dispose of any of FORTE's Proprietary Property, as defined in Section 3 below, in whole or in part, is granted except as expressly provided by this 23 of 145
ATTACHMENT 2
RAC Payment Processing Agreement CSG Forte
Community Services Department
2 | P a g e
Agreement. AGENCY shall not reverse engineer, decompile or disassemble the Proprietary Property. Additionally, nothing in this Agreement shall be construed to provide AGENCY with a license of any third-party proprietary information or property.

2.3 Acceptable Use. AGENCY agrees to comply with the reasonable and acceptable use policies and Rules of any networks accessed by AGENCY through the Services. FORTE reserves the right to deny access to, or close any account reasonable opinion, is causing or
may cause, harm to or negatively affect a FORTE server or third-party network accessed through FORTE. In the event of such an occurrence, FORTE shall make reasonable efforts to notify AGENCY prior to taking any such action but is not required to do so.

2.4 User and System Security. AGENCY shall ensure that its Users comply with all applicable requirements of this Agreement. AGENCY is responsible for protecting the confidentiality of any and all passwords and credentials provided to AGENCY by FORTE for the purpose of utilizing the Services or other forms of AGENCY is responsible for the
security of its systems, locations and equipment used in processing Transactions under this Agreement and for developing security procedures and training its employees on the procedures. AGENCY expressly assumes responsibility for the acts or omissions of all Users on its account(s) with FORTE and for User access to

2.5 Use of Information and Data . AGENCY acknowledges and agrees, on behalf of itself and its Constituents, that all information submitted by AGENCY to FORTE in order for FORTE to provide the Services to AGENCY or otherwise contributed by AGENCY pursuant to these Services (including Transaction results), only for the purpose of
providing the Services to its customers in compliance with all applicable Laws and Further, FORTE may track, review, compile, store and use any information or data received from AGENCY as part of a Transaction or information or data received from a Payment Association or financial institution regarding a Transaction for regulatory compliance or any other legally permissible purpose. Without limiting the foregoing, AGENCY agrees and acknowledges that FORTE may use the routing numbers, account numbers and other PII submitted by AGENCY as well as Transaction results provided to or received by FORTE for the purpose of supporting raud detection, account validation and verification, and/or other commercially available services.

3. OWNERSHIP
All computer programs, trademarks, service marks, patents, copyrights, trade secrets, know- how, and other proprietary rights in or related to the Services (the y , are and will remain the sole and exclusive property of 24 of 145
RAC Payment Processing AgreementCSG Forte
Community Services Department 3 | P a g e
FORTE, whether or not specifically recognized or perfected under applicable Law. FORTE shall own all rights, title and interest, including all intellectual property rights, in and to any improvements to the existing Services and/or any new programs, upgrades, modifications or enhancements developed by FORTE in connection with rendering Services to AGENCY, even when refinements and improvements result from AGENCY To the extent, if any, that ownership in such refinements and improvements does not automatically vest in FORTE by virtue of this Agreement or otherwise, AGENCY hereby expressly transfers and assigns to FORTE all rights, title, and interest which AGENCY may have in and to such refinements and improvements. be made in compliance with the requirements, including periodic updates thereto, as provided at http://www.forte.net/trademark. 4. CONFIDENTIALITY The Parties acknowledge that, by virtue of this Agreement, each has been and will continue to be entrusted with certain Confidential Information (as defined in Appendix A, but not limited to, proprietary information developed by, acquired by, or licensed to each Party. Each Party agrees that, except to the extent and in the manner necessary to perform its duties hereunder, it will not disclose to others or use for its own benefit any Confidential Information of the other Party and it will hold all Proprietary Property, as defined herein, confidential in perpetuity. Additionally, in the course of providing and receiving the Services, each Party acknowledges that it may receive or have access to PII. as more fully defined in Appendix A). As such, each Party shall: (i) keep all PII in strict confidence, with the degree of care necessary to avoid unauthorized access, use or disclosure; (ii) use PII solely and exclusively for the purposes provided in this Agreement; (iii) implement administrative, physical and technical safeguards to protect PII that are at least as rigorous as accepted industry practices; and (iv) have in place a program that complies with applicable legal requirements regarding PII, including, if applicable, PCI standards for data security. Except with respect to Personal Information, this Section 4 will not apply to Confidential Information that (i) was already available to the public at the time of disclosure, (ii) becomes generally known to the public after disclosure to the other Party, through no fault of the other Party, (iii) is disclosed under force of law, applicable regulation, governmental regulation or court order, or (iv) is required to be disclosed by a banking partner, an Acquirer or an applicable Payment Network. It is understood that AGENCY is subject to the California Public Records Act . If a Confidential Information, AGENCY shall notify FORTE of the request and the date that such records will be released to the requester unless FORTE obtains a court

25 of 145

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order enjoining that disclosure. If FORTE fails to obtain a court order enjoining that disclosure, AGENCY will release the requested information on the date specified.

5. TERM AND TERMINATION

5.1 Term. This Agreement shall have an initial term of 3 years (the .

Thereafter, this Agreement will automatically renew for additional one (1) year terms unless either Party provides prior written notice of termination to the other Party.

5.2 Termination for Material Breach. In the event of a material breach of this Agreement by one Party and failure to cure within thirty (30) days of receipt of written notice of the breach, the other Party may terminate immediately by providing written notice of termination.

5.3 Termination with Notice. FORTE may terminate this Agreement with prior notice in the event (i) there is a material adverse change to AGENCY or its financial condition; (ii) AGENCY experiences Excessive Chargebacks pursuant to Section 6.12 herein; or (iii) AGENCY is in violation of any applicable Law, Rule or regulation. Notwithstanding the foregoing, FORTE reserves the right to suspend receipt of services under section 6.17 in conjunction with sending notice account. Notwithstanding any other provision of
this Agreement. AGENCY may terminate this Agreement upon fifteen (15) days advance written notice to Forte.

5.4 Termination without Notice. FORTE may immediately terminate this Agreement without prior notice in the event (i) that it determines AGENCY has experienced an actual or suspected data security breach; (ii) FORTE is instructed to terminate the Agreement by a financial institution, Acquirer or Payment Network; or (iii) FORTE observes irregular, suspicious or fraudulent Transaction activity on financial, reputational, or other measurable loss. Notwithstanding the foregoing, FORTE may, in its own discretion, temporarily suspend
receipt of

6. TRANSACTION PROCESSING

6.1 Accepting Transactions. FORTE shall process credit card, debit card and ACH Transactions on AGENCYs behalf on a 24-hour basis. Transactions which are received before the daily designated cut-off time will be originated for settlement through the corresponding payment network. Transactions which are received after the designated cut-off time will be included in the next business day's settlement processing.

6.1.1 Sale Transactions. If a Transaction is sent to FORTE as a sale of goods or services, it will automatically be captured for settlement in time for the next designated cut-off time.

6.1.2 Authorization-Capture Transactions. If a Transaction is sent to FORTE 26 of 145
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for Authorization (as more fully defined in Appendix A) only or for delayed processing, then it will be the responsibility of AGENCY to submit a corresponding capture Transaction within forty-eight (48) hours of the Authorization in order to complete the Transaction process for settlement. Transactions which are not captured within forty-eight (48) hours of Authorization are untimely and may be rejected by FORTE.

6.2 Transaction Format. FORTE is responsible only for processing Transactions which are received and approved by FORTE in the proper format, as established by FORTE.

6.2.1 Card Not Present Transactions. For card-based Transactions in which the card is not present, AGENCY must obtain and include as part of the Authorization request the three (3) or four (4) digit validation code and the s billing address information.

6.3 AGENCY Account. In order to provide Transaction processing services, FORTE may need to establish one (1) or more service accounts on AGENCY behalf or require AGENCY to establish a service account with a third-party provider sub- contracting with FORTE.

6.4 Limited-Acceptance Agency
application with FORTE, AGENCY may be a Limited-Acceptance Agency, which means that AGENCY has elected to accept only certain Visa and MasterCard card types (i.e., consumer credit, consumer debit, and commercial cards) and must display appropriate signage to indicate the same. FORTE and its associated credit card Acquirer have no obligation other than those expressly provided under the Rules of a Payment Network and applicable Law as they may relate to limited acceptance.

AGENCY, and not FORTE or Acquirer, will be solely responsible for the implementation of its decision for limited acceptance, including but not limited to policing the card type(s) accepted at the point of sale.

6.5 Bona Fide Sales. AGENCY shall only complete Transactions produced as the direct result of bona fide sales made by AGENCY to cardholders, and AGENCY is expressly prohibited from processing, factoring, laundering, offering, and/or presenting sales Transactions which are produced as a result of sales made by any person or entity other than AGENCY, for purposes related to financing terrorist activities or for purposes that may be used as part of a scheme which violates any law governing the use of the Services which may include but not be limited to Bank Secrecy Act or USA Patriot Act.

6.6 Setting Limits on Transaction Amount. AGENCY may set a minimum Transaction amount to accept a card that provides access to a credit account, under the following conditions: the minimum Transaction amount does not (i) differentiate between card issuers; (ii) differentiate between MasterCard, Visa, or any other acceptance brand; and iii) exceed ten dollars (or any higher amount established by the Federal Reserve). AGENCY may set a maximum Transaction amount to accept a card that provides access to a credit account, under the following conditions:
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AGENCY is (i) a department, agency or instrumentality of the U.S. government; (ii) a corporation owned or controlled by the U.S. government; or (iii) an agency whose primary business is reflected by one of the following MCCs: 8220, 8244, 8249 Schools, Trade or Vocational; and the maximum Transaction amount does not differentiate between MasterCard, Visa, or any other acceptance brand.

6.7 Additional Agreements AGENCY understands and agrees that in order to receive the Services, Agency may be required to enter into additional agreements directly with the Payment Networks or other third parties.

6.8 Modifying Transactions. AGENCY shall regularly and promptly review all Transactions and shall immediately notify FORTE upon discovery of any and all discrepancies between the records of AGENCY compared with those provided by FORTE or AGENCY
s bank, or with respect to any Transaction that AGENCY
believes was made erroneously or without proper authorization from the Constituent or Consumer. At AGENCY's request, FORTE will make commercially reasonable efforts to reverse, modify, void or delete a Transaction after it has been submitted for settlement. All requests must be made in writing (electronic mail will be deemed as n writing for these purposes), signed or sent by an individual pre-authorized by AGENCY to make such requests and delivered to FORTE. AGENCY agrees FORTE will not be held responsible for any losses, directly or indirectly, incurred by AGENCY or other third parties as a result of FORTE's failure to accomplish the request before the Transaction has been processed through the applicable Payment Network or for making any necessary changes as requested by Agency.

6.9 Delay or Rejection of Transactions. FORTE may delay or reject any Transaction without prior notification to AGENCY which is improperly formatted, is untimely, or is missing information, which may cause it to downgrade; or if FORTE has reason to believe such Transaction is fraudulent or improperly authorized; or for any reason such delay or rejection is permitted or required under the Rules or regulations.

FORTE shall have no liability to AGENCY by reason of the rejection of any such Transaction.

6.10 Returned Items. FORTE shall make available to AGENCY details related to the receipt of any Transaction that is returned unpaid or any Transaction which is charged back and shall credit or charge such returned item to AGENCY Settlement Account.

6.11 Chargebacks. AGENCY acknowledges and agrees that it is bound by the Payment Networks Rules with respect to any Chargeback. AGENCY understands that obtaining an authorization from a Consumer for any sale shall not constitute a guarantee of payment, and such sales can be returned or charged back to AGENCY like any other item hereunder. In the event a Transaction is charged back for any reason, the amount of such Transaction will be deducted from AGENCY designated Settlement Account or any payment due to AGENCY.

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terminate AGENCY to the Services should AGENCY s chargeback ratio exceed allowable limits in any given period. FORTE will provide AGENCY with notice and a time to cure its excessive chargebacks prior to suspending or terminating AGENCY to the Services. AGENCY acknowledges and expressly authorizes FORTE, in compliance with Payment Network Rules, to provide to the Payment Networks and applicable regulatory bodies, AGENCYs name and contact information as well as Transaction details should AGENCYs chargeback ratio exceed the allowable limits in any given period.

6.13 Resubmitting Transactions. AGENCY shall not re-submit any Transaction unless it is returned as (i) insufficient funds (R01) or (ii) uncollected funds (R09) or unless a new Authorization is obtained from Constituent.

6.14 Settlement. Settlement of AGENCY funds for Transactions, less any Chargebacks or Returns, to AGENCY designated Settlement Account will occur within seventy-two (72) hours of origination excluding weekends and US federal banking holidays. Settlement of Transactions will occur via electronic funds transfer over the ACH Network. Upon receipt of AGENCY Transactions the funds transfer between the various Payment Networks and AGENCY. After Acquirer receives credit for such sales data, Acquirer will fund AGENCY, either directly to the AGENCY-Owned Designated Account or through FORTE to an account designated by FORTE (the
option, for such card Transactions. AGENCY agrees that the deposit of funds to the FORTE Designated Account shall discharge Acquirer of its settlement obligation to AGENCY and any dispute regarding the receipt or amount of settlement shall be between FORTE and AGENCY. Acquirer will debit the FORTE Designated Account for funds owed to Acquirer as a result of the Services provided hereunder unless an Agency-owned account is otherwise designated by AGENCY. Further, if a cardholder disputes a Transaction, if a Transaction is charged back for any reason, or if FORTE or Acquirer reasonably believes a Transaction is unauthorized or otherwise unacceptable, the amount of such Transaction may be charged back and debited from AGENCY if settled to an Agency-owned account or debited from the FORTE Designated Account if settled to that account.

6.15 Provisional and Final Payment .

Debit
or Credit Entries may be transmitted through the ACH Network, that payment of a Debit or Credit Entry by the RDFI to the Receiver is provisional until receipt by the RDFI of final settlement for such Debit or Credit Entry, and, if such settlement is not received, the RDFI will be entitled to a refund from the Receiver of the amount credited and AGENCY will not be deemed to have paid the Receiver the amount of the Debit or Credit Entry. The rights and obligations of AGENCY concerning the Debit or Credit Entry are governed by and construed in accordance with the laws of the state in which the processing ODFI is located unless AGENCY and FORTE have agreed that the laws of another jurisdiction govern the rights and obligations. 29 of 145
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6.16 Reporting. FORTE will make daily origination and deposit reports available to AGENCY on a 24/7 basis through the Internet-based FORTE platform. 6.17 Temporary Suspension of Services. Should any of the following occur: (i) FORTE observes irregular, suspicious or possible fraudulent Transaction activity on AGENCYAGENCYaccount, documentation, processes or financial condition that is inconsistent with AGENCY is in material breach of its payment or other financial obligations to FORTE; or (iv) FORTE is required by Laws, Rules or a Payment Network, FORTE reserves the right to temporarily suspend Services to AGENCY without prior written notice. In the event FORTE suspends Services to AGENCY under the terms of this Section, FORTE will provide AGENCY with notice of the suspension and the reason for such suspension, along with remediation actions so long as communicating such would not create a security risk or violate any legal obligation of FORTE. 6.18 Authorization. AGENCY specifically authorizes FORTE to (i) to debit and credit AGENCY carry out its duties under this Agreement and (ii) debit its designated bank account and any account owned by the same entity as AGENCY or by an entity with the same tax identification number as AGENCY to collect any payment obligation owed to FORTE by AGENCY hereunder. Further, AGENCY authorizes FORTE to act as its agent for receipt of settlement funds in connection with the Services and FORTE accepts such appointment subject to any conditions and limitations of this Agreement. AGENCY agrees that receipt by FORTE of funds from AGENCYCustomer shall constitute receipt of payment to AGENCY, extinguishing such CAGENCY (to the extent such obligation has not otherwise been extinguished) as if such Customer had paid AGENCY directly. If FORTE fails to fund AGENCYcorresponding to such CAGENCYFORTE, not the Customer. 7. TRANSACTION AUTHORIZATION 7.1 Constituent Authorization. AGENCY shall obtain authorization from Constituent prior to requesting a Transaction to or from Constituent's account. 7.2 Retention. AGENCY shall retain proof of Constituent's authorization for a period of not less than two (2) years for standard Transactions and for a period of not less than five (5) years for health- related Transactions from the Authorization date or revocation of Authorization date and shall provide such proof of Authorization to FORTE upon request within five (5) business days of the request. 7.3 Revoked Authorization. AGENCY shall cease initiating Transactions to or from a Constituenaccount immediately upon receipt of any actual or constructive notice of a Constituent's termination or revocation of authorization. AGENCY may re-initiate Transactions to or from a Constituenaccount only upon receiving new Authorization from Constituent.

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8. AGENCY PROHIBITIONS
AGENCY must not (i) require a cardhol der to complete a postcard or similar device that
signature, or any other card account data in plain view when mailed; (ii) add any tax to Transactions unless applicable Law expressly requires that AGENCY impose a tax (any tax amount, if allowed, must be included in the Transaction amount and not collected separately); (iii) request or use an account number for any purpose other than as payment for its goods or services; (iv) disburse funds in the form of travelers checks if the sole purpose is to allow the cardholder to make a cash purchase of goods or services from AGENCY; (v) disburse funds in the form of cash unless AGENCY is dispensing funds in the form of travelers checks, TravelMoney cards, or foreign currency (in such case, the Transaction amount is limited to the value of the travelers checks, TravelMoney cards, or foreign currency, plus any commission or fee charged by AGENCY) or unless AGENCY is participating in a cash back service; (vi) submit any Transaction receipt for a Transaction that was previously charged back to the Acquirer and subsequently returned to AGENCY, irrespective of cardholder approval; (vii) accept a Visa consumer credit card or commercial Visa product issued by a U.S. issuer to collect or refinance an existing debt that has been deemed uncollectable by AGENCY; or (viii) submit a Transaction that represents collection of a dishonored check. AGENCY further agrees that under no circumstance will AGENCY store cardholder data in violation of the Laws or the operating regulations of any Payment Network, including, but not limited to, the storage of track-2 data. Neither AGENCY nor its agent shall retain or store magnetic-stripe data subsequent to the authorization of a sales Transaction.

9. AUTHORIZATION

9.1 ACH Authorization. AGENCY authorizes FORTE to electronically debit AGENCY in accordance with the terms of this Agreement. Further, AGENCY authorizes FORTE to act as its agent for receipt of settlement funds in connection with the Services and FORTE accepts such appointment subject to any conditions and limitations of this Agreement. AGENCY agrees that receipt by FORTE of a Constituent
to AGENCY, extinguishing
the Constituent AGENCY as if the Constituent had paid
AGENCY directly. If FORTE fails to fund AGENCY
corresponding to a Constituent AGENCY o
FORTE, not the Constituent.

9.2 Third Party Service Provider. If AGENCY uses the Services through or in conjunction with a third-party service provider that is not a party to this Agreement, AGENCY authorizes FORTE to provide the authorized third party with its FORTE merchant account information and credentials. If applicable, AGENCY authorizes the third party to originate Transactions and receive the corresponding results on its behalf.
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10. INDEMNIFICATION AND INSURANCE

10.1 Indemnity . FORTE agrees to indemnify, defend, and hold harmless AGENCY and its elected officials, officers, directors, agents, attorneys and collective
incidental thereto, which may be suffered by, incurred by, accrued against, charged to, or recoverable from any Indemnitee, by reason of any Claim arising out of or relating to any act, error or omission, negligence, or misconduct of FORTE, its officers, directors, agents, employees, and subcontractors, during the performance of this Agreement; provided, however, that the foregoing indemnity shall not apply to the extent that the applicable Claim resulted from the sole negligence or willful misconduct of an Indemnitee.

10.2 Insurance. During the course of performing services under this Agreement, FORTE agrees to maintain the following levels of insurance: (a) Commercial General Liability of at least $1,000,000; (b) Automobile Liability of at least $1,000,000; (c) Professional Liability of at least $1,000,000; (d) Workers Compensation complying with applicable statutory requirements; (e) cyber liability ($5,000,000 per occurrence) and (f) Excess/Umbrella Liability of at least $5,000,000.

The Indemnitees shall be named as additional insureds in the commercial general, cyber, and excess liability policies which shall contain standard cross liability clauses. FORTE shall cause the liability it assumed under this Agreement to be specifically insured under the contractual liability section of the liability insurance policies. The liability policies shall be primary without right of contribution from any Indemnitee, and FORTE waives all rights of subrogation with respect to said policies. Such policies shall require that AGENCY be given no less than thirty (30) calendar days prior written notice of any cancellation thereof or material change therein. AGENCY shall have the right to request an adjustment of the limits of liability for commercial general, cyber, and excess liability, and/or professional provide AGENCY with certificates of insurance and original endorsements, evidencing all of the above coverage, including all special requirements specifically noted above, and shall provide AGENCY with certificates of insurance evidencing renewal or substitution of such insurance thirty (30) calendar days prior to the effective date of such renewal or substitution.

11. COMPLIANCE WITH LAWS, RULES AND REGULATIONS
In performing its duties under this Agreement, each Party agrees to comply with all applicable Rules, regulations and Laws, including but not limited to all confidentiality and security requirements of the USA Patriot Act (or similar law, rule or regulation), all Rules of any applicable Payment Networks, all requirements under the Payment Card Industry Data Security Standard (or similar applicable data security law, rule or regulation) including but not limited to the VISA Cardholder Information Security 32 of 145
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Program, the MasterCard Site Data Protection Program, and any other program or requirement that may be published and/or mandated by the Payment Networks.

Each Party agrees to cooperate and provide information reasonably requested by the other to facilitate its compliance with any applicable Law, Rule or regulation.

Additionally, should a Payment Network or regulatory body impose a fee or fine on AGENCY for any violation of the Rules or Laws or regulations by AGENCY, such fee or fine may be charged to FORTE as a pass-through to AGENCY. If any such fee or fine is charged to FORTE, AGENCY shall reimburse FORTE for any such fees or fines. Should a Payment Network or regulatory body impose a fee or fine on AGENCY for any violation of the Rules or Laws or regulations by FORTE, FORTE shall reimburse AGENCY for any such fees or fines. Should a Payment Network or regulatory body impose a fee or fine on FORTE for any violation of the Rules or Laws or regulations by FORTE, FORTE shall pay such fee or fine and shall not pass it through to AGENCY.

12. DATA SECURITY
FORTE shall implement and maintain a commercially reasonable security program, in accordance with the Information Security Requirements attached hereto as Appendix E.

13. PRICING AND PAYMENT

13.1 FORTE will provide the Services in accordance with the fees listed on the Pricing Fee Schedule, attached hereto as Schedule 1, or any amendments thereto.

Pricing based on AGENCY absorbing the Absorbed Fee
Model ) will result in fees being billed to the AGENCY monthly in arrears and will automatically be debited from AGENCY designated account via ACH debit.

13.2 Pricing based on a service fee that is charged to Constituents per Transaction ( Service Fee Model ) will result in a non-refundable service fee either (i) added to or (ii) charged as a separate Transaction to Constituent at the time of payment. Pricing under the Service Fee Model is calculated based on historical or estimated transactional amount activity by AGENCY. In the event that experiential transaction activity varies significantly from the historical or estimated amounts, FORTE shall have the right to adjust the service fee in accordance with the experiential transaction activity.

13.3 FORTE s pricing is subject to the underlying fees established by the Payment Networks and its service providers. As such, in the event FORTE experiences an increase in cost for any processing services utilized by AGENCY during Term of this Agreement, FORTE will pass through the increases with no additional markup to AGENCY. FORTE will provide AGENCY a minimum of thirty (30) days notice of any change or adjustment in fees.

14. LIMITS OF LIABILITY

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ANY THIRD PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES OF ANY KIND OR NATURE INCURRED IN RELATION TO THIS AGREEMENT. NEITHER PARTY WILL BE LIABLE FOR FAILURE TO PERFORM ANY OF ITS OBLIGATIONS UNDER THIS AGREEMENT IF SUCH PERFORMANCE WOULD RESULT IN IT BEING IN BREACH OF ANY LAW, RULE, REGULATION OR REQUIREMENT OF ANY GOVERNMENTAL AUTHORITY. THE PROVISIONS OF THIS SECTION WILL SURVIVE TERMINATION OF THIS AGREEMENT. 14.2 FORTE SHALL NOT BE RESPONSIBLE FOR ERRORS, ACTS OR FAILURES TO ACT OF OTHERS, INCLUDING, AND AMONG OTHER ENTITIES, BANKS, OTHER PROCESSORS, COMMUNICATIONS CARRIERS OR CLEARING HOUSES, THROUGH WHICH TRANSACTIONS MAY BE ORIGINATED OR THROUGH WHICH FORTE MAY RECEIVE OR TRANSMIT INFORMATION, SO LONG AS THE ACTS OR FAILURES TO ACT OF OTHERS IS NOT CAUSED BY AND NO SUCH ENTITY SHALL BE DEEMED AN AGENT OF FORTE. 15. REPRESENTATIONS AND WARRANTIES. 15.1 FORTE makes no representations or warranties concerning the Services except as may be specifically authorized, in writing, or set out herein. 15.1.1 FORTE hereby warrants that its software solutions and the Services will perform in accordance with their published specifications in all material respects. 15.1.2 FORTE further warrants that in performing its obligations hereunder, it shall exercise due care and reasonable efforts to ensure that information originated by AGENCY is transmitted accurately. 15.1.3 FORTE is the lawful licensee or owner of the Services and has all the necessary rights in the Services to grant the use of the Services to AGENCY; and (f) 15.1.4 The Services and any other work performed by FORTE hereunder shall not infringe upon any United States or foreign copyright, patent, trade secret, or other proprietary right, or misappropriate any trade secret, of any third-party, and that it has neither assigned nor otherwise entered into an agreement by which it purports to assign or transfer any right, title, or interest to any technology or intellectual property right that would conflict with its obligations under this Agreement. 15.2 AGENCYAGENCY represents and warrants to FORTE: 15.2.1 If applicable, with respect to all Transactions originated by FORTE on behalf of AGENCY, (i) each Transaction in all respects has been properly authorized by Receiver; (ii) each Transaction is for an amount agreed to by the

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Receiver; and (iii) AGENCY shall provide proof of Authorization in compliance with applicable Rules for any Transaction to FORTE upon request within five (5) Business Banking Days. 15.2.2 AGENCY agrees to adhere to the warranties within the applicable Rules for each Transaction FORTE processes on AGENCY 15.3 Mutual Representations and Warranties. Each Party represents and warrants to the other: 15.3.1 The execution of this Agreement does not violate any applicable international, federal, state, or local law, Payment Network rule or contract to which such Party is subject. 15.3.2 There are no actions, suits or proceedings existing or pending against or affecting it before any judicial or regulatory authority which would have a material adverse effect on its ability to perform its obligations hereunder. 15.3.3 When executed and delivered, this Agreement will constitute a legal, valid, and binding obligation, enforceable in accordance with its terms. 16. FORTE SERVICE POLICY FORTE makes no representations or warranties concerning the Services except as may be specifically authorized, in writing, or set out herein. AGENCY acknowledges and understands that FORTE does not warrant that the Services will be uninterrupted or error free and that FORTE may occasionally experience delays or outages due to Any such interruption shall not be considered a breach of the Agreement by FORTE. FORTE shall use its best efforts to remedy any such interruption in the Services as quickly as possible. 15. FORCE MAJEURE Neither Party will be held liable for any damages, delays or failure to perform any of its obligations under this Agreement if such damages, delays or failure is due to circumstances beyond the reasonable control of such Party and without its fault or negligence, such as acts of God, fire, flood, earthquakes or other natural disasters, epidemics, industry-wide strikes and governmental acts or orders or restrictions. The Party affected by such circumstances will use all commercially reasonable efforts to avoid or remove such causes of non-performance. Nothing herein shall relieve a Party from its payment obligations for Services rendered. 16. ASSIGNMENT The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties. Neither Party may assign any of its rights hereunder, nor delegate any of its duties hereunder, without the prior written consent of the other Party, and each Party acknowledges and agrees that,

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absent such prior written consent, any attempted assignment or delegation hereunder shall be null, void and of no effect. Notwithstanding the foregoing, either Party may assign this Agreement or any rights and obligations hereunder either to an Affiliate or to a third- party successor to all or substantially all of its business, stock or assets, in each case, without the prior written consent of the other Party, but shall provide the other Party notice of such assignment as soon as possible.

17. CHOICE OF LAW
This Agreement shall be governed by and construed in accordance with the Laws of the state of California without reference to choice of laws rules.

18. AMENDMENT
Except as otherwise provided for herein, the terms and conditions of this Agreement shall not be modified or amended except in writing and agreed to by the Parties.

Notwithstanding the foregoing, this Agreement is subject to such modifications, changes, and additions as may be required by reason of any applicable Law, regulation or Rule.

19. PUBLICITY
Neither Party shall use the other Party s name, logo or service marks in conjunction with a press release or advertisement without first obtaining written approval.

Notwithstanding the above, FORTE acknowledges and agrees that AGENCY is a public agency subject to open meeting and records laws, including but not limited to the Ralph M. Brown Act and California Public Records Act which may require that the Agreement a

20. NOTICE
Any notice, consent or other communication required or contemplated by this Agreement shall be in writing, and shall be delivered in person, by U.S. mail, by overnight courier, by electronic mail or by fax to the intended recipient at the address most recently provided in writing.

21. HEADINGS
The headings contained in this Agreement are for convenience of reference only and shall not affect the meaning of any provision of this Agreement.

22. SEVERABILITY
Should any term, clause or provision herein be found invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the validity or operation of any other term, clause or provision and such invalid term, clause or provision shall be construed to most closely reflect the original intent of the Parties.

23. ENTIRE AGREEMENT; WAIVER; COUNTERPARTS
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This Agreement constitutes the entire understanding of the Parties and revokes and supersedes all prior agreements between the Parties and are intended as a final expression of their agreement. Either Part waiver of any breach of any provision of this Agreement shall not be deemed a waiver of any subsequent breach of the same or other provision. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

24. ELECTRONIC SIGNATURES.

Under the Electronic Signatures in Global and National Commerce Act (E-Sign), this Payment Processing Agreement and all electronically executed documents related hereto are legally binding in the same manner as are hard copy documents executed by hand signature when (i) a person authorized to bind AGENCY indicates acceptance of the terms of this Agreement by following procedures that associate his/her electronic signature with this Agreement and related documents, (ii) such authorized person consents and intends to be bound by the Payment Processing Agreement and related documents, and (iii) the Payment Processing Agreement is delivered in an electronic record capable of retention by the recipient at the time of receipt (i.e., print or otherwise store the electronic record). This Agreement and all related electronic documents shall be governed by the provisions of E-Sign.

25. INDEPENDENT CONTRACTOR.

FORTE represents and warrants that it is an independent contractor with no AGENCY to contract for AGENCY or in any way to bind or to commit AGENCY to any agreement of any kind or to assume any liabilities of any nature in the name of or on behalf of AGENCY.

26. CONFLICT OF INTEREST.

FORTE warrants that it, its officers, employees, associates and subcontractors, presently have no interest, and will not acquire any interest, direct or indirect, financial or otherwise, that would conflict in any way with the performance of this Agreement, and that it, its officers, employees, associates and subcontractors, will not employ any person having such an interest. FORTE and its officers, employees, associates and subcontractors, if any, shall comply with all conflict of interest statutes of the State of Reform Act (Gov. Code § 81000, et seq.) and Government Code Section 1090.

27. NON-DISCRIMINATION.

In the performance of this Agreement, FORTE, and any subcontractor of FORTE shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, religious creed, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, age, physical disability, mental 37 of 145
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disability, medical condition, genetic information, sexual orientation, military or veteran status, or other basis prohibited by law, except as provided in Government Code section 12940.
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IN WITNESS HEREOF, the parties have caused their authorized representatives to execute this Agreement on ________________________. This Contract is not valid until signed by all parties below.

SERVICE PROVIDER/CONTRACTOR CITY
___________________________________ _______________________________ By: Dario DeVincenzi, Operations Manager By: Alex D. McIntyre Universal Building Services City Manager
07516597
Number
94-1692591
APPROVED AS TO FORM:
__________________________
Trisha Ortiz, City Attorney
ATTEST:
__________________________
Lupita Huerta, City Clerk
Attachments: CSG Forte Appendix A Definitions
CSG Forte Appendix B Account Verification and Authentication Services CSG Forte Appendix C Account Updater Services
CSG Forte Appendix D American Express Card Acceptance
CSG Forte Appendix E Information Security Requirements
CSG Merchant Application Pricing Fee Schedule
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APPENDIX A

DEFINITIONS
ACH Network.
processing, store-and-forward system that accumulates and distributes ACH Transactions that are received from ODFI (defined below) and are forwarded to the specified RDFI (defined below) according to the specific schedules established by the participants.

Acquirer. inancial institution or payment processor that enters into an agreement which enables merchants, government entities or their Agent(s) to submit Transactions to a payment network.

Affiliate. n entity controlled or managed by the same centralized federal, state or local government.

Agent. ny director, officer, employee, representative, Affiliate, third- party vendor or any other person acting on behalf of Agency with the actual, implied or apparent authority of Agency.

Authorization. a Transaction request on a Consumer bank account or card account to confirm open, in good standing, and has sufficient funds to complete the submitted transaction.

Business Banking Day.
excluding banking holidays.

Confidential Information. may include information regarding all of the computer software and technologies, systems, structures, architectures, processes, formulae, compositions, improvements, devices, know-how, inventions, discoveries, concepts, ideas, designs, methods, and information and databases developed, acquired, owned, produced or practiced at any time by a Party or any Affiliate thereof, including software programs and documentation licensed by third parties to the disclosing Party, any business or financial information directly or indirectly related to the internal controls, internal risk and underwriting guidelines and policies, billing and 40 of 145
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accounting systems, Customer and vendor lists and information, employee personnel products and services that is not generally available to the public.

Consumer Constituents of AGENCY.

CPA.
primary settlement systems (payment networks) in Canada, as well as establishing, revising and enforcing the operating Rules for the Canadian payment networks.

Chargeback. Transaction that is rejected by the owner of the account debited or charged because a dispute exists between the Originator of the Transaction (typically Agency) and the account owner.

Credit Entry means an ACH/EFT Transaction that is intended to deposit AGENCY
Debit Entry. means an ACH/EFT Transaction that is intended to withdraw s Settlement Account
(defined below).

Laws all international, national, regional and local regulations or laws which are applicable to the Services provided herein, including but not limited to federal Regulation E and Title 31 of the Code of Federal Regulations Part 210, Gramm-Leach- and local export control laws, including US Foreign Corrupt Practices Act, the Export Administration Act, US Department of Treasury Office of Foreign Assets Control Rule
Merchant.

NACHA.
for establishing, revising and enforcing the Operating Rules for the US ACH Network. 41 of 145
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ODFI. means the financial
institution that receives ACH Transactions from Merchant through FORTE and then forwards these Transactions (defined below) to the ACH Network.

Originator. the AGENCY who has contracted with FORTE to initiate ACH entries, on its behalf, to the ACH Network.

Payment Network.
payment Transactions, including but not limited to VISA, M/C, Discover, NACHA, CPA and m
Payment Network Resources:

VISA Regulations (from VISA website):
https://usa.visa.com/dam/VCOM/download/about-visa/visa-rules-public.pdf MasterCard Rules (from MC website):
https://www.mastercard.us/en-us/about-mastercard/what-we-do/rules.html Discover rules (from Discover website):
http://www.discovernetwork.com/merchants/index.html
NACHA: www.nacha.org

PCI-DSS -
system security measures established by the major credit card companies. The PCI- DSS is mandated by the credit card companies but administered by the Payment Card Industry Security Standards Council.

Personally Identifiable Information or PII
non-anonymized personally identifiable information regarding a Consumer or non- personally identifiable information regarding a Consumer that has been aggregated, disaggregated or decompiled in a manner that is sufficient to cause a Consumer to be identified, directly or indirectly, in particular by reference to an identification number or to economic, cultural or social identity, including, by way of example, financial account numbers, credit or debit card numbers (with or without access or pin numbers, if collected), personal addresses, IP addresses, identity cards, residency permits, passport 42 of 145
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RDFI. means the financial
institution that receives the ACH Transactions from the ODFI through the ACH Network and posts these Transactions to the accounts of Receivers (defined below).

Receiver.
account with a card issuer or financial institution upon which a Transaction is or may be acted upon.

Reserve. specific amount of money that is held in the AGENCY account to be used by FORTE to offset amounts owed to FORTE for Services provided, such as returned items, chargebacks, fees/fines, billing or other AGENCY obligations to FORTE that FORTE is unable to collect from AGENCY.

Rules. he operational rules, policies and procedures established by each applicable Payment Network to govern all transactions and parties that participate in processing Transactions through the associated Payment Network.

Settlement Account.
maintained by AGENCY with a financial institution through which the following may occur: (a) deposit of funds for Debit Entries, (b) the extractions of funds for Credit Entries, reserve funds or fee obligations unless otherwise agreed to by the Parties.

Settlement Entry. AGENCY
Settlement Account which corresponds to the net amount owed AGENCY by FORTE at the end of each Business Banking Day.

Transaction. transfer of data or information to FORTE in a format pre-approved by FORTE, including but not limited to payment, verification and authentication items.

Users. ll individuals who access a FORTE website or utilize any portion of the FORTE Services on behalf of AGENCY directly or through software that accesses the FORTE systems through AGENCY AGENCY
access credentials or any other access reasonably presumed to be on behalf of AGENCY.
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APPENDIX B

ACCOUNT VERIFICATION AND AUTHENTICATION SERVICES

1. Representation by Agency. Each request for data through the verification and authentication services shall constitute a representation, warranty and certification by AGENCY that the data (i) shall be used and disclosed only in accordance with the terms of the Agreement, and in accordance with any applicable Rules, regulations or Laws; (ii) shall be used solely for the intended use as stated by AGENCY on application and that use is in compliance with the permissible uses under the Fair Credit ded in the FCRA Requirements Addendum located at
http://www.forte.net/fair-credit-reporting-act; (iii) AGENCY will follow proper procedures for adverse action notification to its Constituents, as provided by the FCRA Requirements Addendum; and (iv) AGENCY acknowledges it has implemented security measures to prohibit the unauthorized access to the information provided.

2. Use of Services.

2.1 AGENCY SHALL USE THE VERIFICATION SERVICES ONLY IN

CONNECTION WITH PAYMENTS PRESENTED TO AGENCY BY ITS
CONSTITUENTS IN EXCHANGE FOR GOODS OR SERVICES. AGENCY

SHALL NOT RESELL THE VERIFICATION DATA OR SERVICES TO ANY THIRD PARTIES.

2.2 AGENCY understands and agrees that it cannot decline services to a consumer, Constituent or Customer after receiving an approval result from FORTE on a verification inquiry unless AGENCY is declining based on other grounds and/or information. Further, if AGENCY does decline Services to a FORTE approved consumer, Constituent or Customer based on alternate information, AGENCY
for the consumer, Constituent or Customer to pursue a dispute of the result under FCRA Adverse Action requirements.

2.3 AGENCY shall provide to FORTE, as part of a verification inquiry, the accurate amount for each Transaction AGENCY wants to verify.

3. Retention of Data. AGENCY acknowledges and agrees that it shall not retain, store, compile or aggregate the results of verification or authentication inquiries received from FORTE except as required by applicable Law or to perform its obligations under this Agreement.

4. AGENCY acknowledges and agrees, on behalf of itself and its Constituents, that all information submitted by AGENCY to FORTE in order for FORTE to provide the Services to AGENCY or otherwise contributed by AGENCY pursuant to these Services (including Transaction
FORTE only for the purpose of providing the Services to its Customers in compliance with all applicable Laws and Rules, including in accordance with the federal Fair Credit 44 of 145
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FORTE may track, review, compile, store and use any
information or data received from AGENCY as part of a Transaction or information or data received from a Payment Association or financial institution regarding a Transaction for regulatory compliance or any other legally permissible purpose. Without limiting the foregoing, AGENCY agrees and acknowledges that FORTE (and/or certain of its Affiliates) may use the routing numbers, account numbers and other PII submitted by AGENCY as well as Transaction results provided to or received by FORTE for the Affiliates) fraud detection, account
validation and verification, and/or other commercially available services. 45 of 145
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APPENDIX C

ACCOUNT UPDATER SERVICES

1. Description of Services. Participating Visa/MasterCard issuers submit the account changes to Account Updater database. On a monthly basis, FORTE will compare all of AGENCY Transactions against the Account Updater database. FORTE will then update the tokenized card information on file with updated account information.

2. Agency Requirements for Account Updater Participation. a. AGENCY must be properly established and registered in the United States. b. AGENCY must not have been disqualified from participating in the Visa, MasterCard, or Discover programs.
c. AGENCY must be in compliance with all Card Association Operating Regulations.
d. AGENCY must submit inquiries only for those accounts with which it has an ongoing Customer relationship and C
payments.
e. AGENCY may not request Authorization on accounts that have been f. AGENCY must not submit inquiries on behalf of any other entity. g. AGENCY assumes all risk associated with the use of the Account Updater Service. FORTE shall have no liability whatsoever to AGENCY for any liability associated with the Account Updater Service, including but not limited to the accuracy or completeness of the information provided via the Account Updater Service.
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APPENDIX D

AMERICAN EXPRESS CARD ACCEPTANCE

1. Merchant hereby acknowledges and agrees that for purposes of acceptance of American Express, the American Express Merchant Operating Guide and any Agreement and can be found at www.americanexpress.com/merchantopguide.

All capitalized terms found in this section shall have the attributed meaning from the Operating Guide.

2. Merchant hereby acknowledges and agrees that it is not a party to any agreement between FORTE and American Express.

3. Merchant hereby authorizes FORTE and/or Acquirer to submit American Express transactions to, and receive settlement from, American Express on behalf of Merchant.

Merchant must accept the American Express card as payment for goods and services (other than those goods and services prohibited under the Operating Guide) sold, or (if applicable) for charitable contributions made, at all of its establishments, except as expressly permitted by applicable Law. Merchant is jointly and severally liable for the o
the Operating Guide.

4. Merchant hereby acknowledges and agrees that (i) FORTE or Acquirer may disclose American Express Transaction Data (which for purposes of this section shall have the below), and other information about Merchant to American Express, (ii) American Express may use such information to perform its responsibilities in connection with the American Express Program, , perform analytics and create reports, and for any other lawful business purpose, , and (iii) American Express may use the information obtained in this application at the time of setup to screen and/or monitor Merchant in connection with American administrative purposes. If Merchant has provided a wireless phone number in connection with this Agreement, Merchant hereby agrees that it may be contacted at that number and the communications sent may include autodialed text messages or automated prerecorded calls. If Merchant has provided a fax number, Merchant hereby agrees that it may be sent fax communications. To opt out of American Express-related marketing communications, Merchant may contact FORTE customer service as described in this Agreement. For purpose
means names, postal and email addresses, tax ID numbers, names and social security numbers of the authorized signer of Merchant and similar identifying information about Merchant. For clarification, Merchant Data does not include American Express 47 of 145
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Transaction Data.

5. Merchant will adhere to the following website information display guidelines in the event Merchant has a website and/or operates an e-
website must display the following:

An accurate description of the goods/services offered, including the currency type for the Transaction (e.g., U.S. Dollars). Note: Transaction currency must be in U.S.

Dollars.

Merchant's physical address in the U.S.

An email address or telephone number for customer service disputes.

Return/refund policy.

A description of Merchant's delivery policy (e.g., no overnight delivery).

A description of Merchant's security practices (e.g., information highlighting security practices Merchant uses to secure Transactions on its systems, including Transactions conducted on the Internet).

A statement of known export restrictions, tariffs, and any other regulations.

A privacy statement regarding the type of personal information collected and how the information is used. Additionally, Merchant must provide to customers the option to decline being included in marketing campaigns or having their personal information included on lists sold to third parties.

6. Merchant hereby agrees that, in the event that Merchant becomes a High Charge Volume Merchant (as defined below), Merchant will be converted from the American Express Program to a direct American Express Card acceptance relationship with American Express, and upon such conversion, (i) Merchant will be bound by American -current card acceptance agreement, and (ii) American Express will set ess
Program Merchant with either (i) greater than $1,000,000 in American Express charge volume in a rolling twelve (12) month period or (ii) greater than $100, 000 in American Express charge volume in any three (3) consecutive months. For clarification, if Merchant has multiple establishments, the American Express charge volume from all establishments shall be summed together when determining whether Merchant has exceeded the thresholds above.

7. Except as expressly permitted by applicable Law, Merchant must not: (a) indicate or imply that Merchant prefers, directly or indirectly, any Other Payment Products over the Card, (b) try to dissuade Cardmembers from using the Card, (c) mischaracterize the Card or any of American Express' services or programs, (d) try to persuade or prompt Cardmembers to use any Other Payment Products or any other method of payment (e.g., payment by check), (e) impose any restrictions, conditions, disadvantages, or fees when 48 of 145
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the Card is accepted that are not imposed equally on all other payment products, except for electronic funds transfer, cash or check, (f) suggest or require Cardmembers to waive their right to dispute any Transaction, (g) engage in activities that harm American Express' business or the American Express Brand (or both), (h) promote any Other Payment solely at its Establishments) more actively than Merchant promotes the Card, or (i) convert the currency of the original sale Transaction to another currency when requesting Authorization or submitting Transactions (or both).

8. Merchant may offer discounts or in-kind incentives from its regular prices for payments in cash, ACH funds transfer, check, debit card, or credit/charge card, provided that (to the extent required by applicable Law): (i) Merchant clearly and conspicuously discloses the terms of the discount or in-kind incentive to its customers, (ii) the discount or in-
discount or in-kind incentive does not differentiate on the basis of the Issuer or, except as expressly permitted by applicable state statute, payment card network (e.g., Visa, MasterCard, Discover, JCB, American Express). The offering of discounts or in-kind incentives in compliance with the terms of this paragraph will not constitute a violation of the provisions set forth Section 3.2 of the Operating Guide.

9. Whenever payment methods are communicated to customers, or when customers ask what payments are accepted, Merchant must indicate its acceptance of the Card and display American Express' Marks (including any Card application forms provided to Merchant) as prominently and in the same manner as any Other Payment Products.

Merchant must not use American Express' Marks in any way that injures or diminishes the goodwill associated with the American Express Mark, nor in any way (without American goods or services. Merchant shall use the American Express brand and marks in accordance with the requirements set forth in the Operating Guide and shall remove the displayed upon termination

10. Any and all Cardmember Information is confidential and the sole property of the Issuer, American Express or its Affiliates. Except as otherwise specified, Merchant must not disclose Cardmember Information, nor use nor store it, other than to facilitate Transactions in accordance with this Agreement. For more information, refer to the Operating Guide, Section 4.2, "Completing a Transaction at the Point of Sale" and Chapter 8, "Protecting Cardmember Information".

11. Merchant shall not assign to any third party any American Express-related payments due to it under this Agreement, and all indebtedness arising from American Express Charges (as defined below) will be for bona fide sales of goods and services (or both) at its establishments (as defined below) and free of liens, claims, and encumbrances other than ordinary sales taxes; provided, however, that Merchant may sell and assign future American Express transaction receivables to FORTE, its affiliated 49 of 145
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entities and/or any other cash advance funding source that partners with FORTE or its affiliated entities, without consent of American Express.

12. Merchant understands and agrees that it shall have no third party beneficiary rights under any agreement between FORTE and American Express and/or Acquirer. Merchant shall maintain refund policies for purchases on the American Express card that are at least as favorable as its refund policy for purchases on any other payment product. Merchant will disclose any such refund policy to Cardmembers at the time of purchase and in rights to accept other card brands. To terminate American Express acceptance, Merchant may contact FORTE customer service as described in this Agreement.

13. Without limiting any other rights provided herein, FORTE and/or Acquirer shall cards upon request of American Express. Merchant may not bill or collect from any Cardmember for any purchase or payment on the Card unless a chargeback has been exercised, Merchant has fully paid for such charge, and it otherwise has the right to do so.

Merchant will comply with all procedural requirements relating to chargebacks, as provided in the Operating Guide, Chapter 11.

14. American Express Liability. SPONSORED MERCHANT AND AMERICAN

EXPRESS ACKNOWLEDGES AND AGREES THAT IN NO EVENT SHALL

SPONSORED MERCHANT OR AMERICAN EXPRESS, THEIR AFFFILIATES, AGENTS,

SUCCESSORS, OR ASSIGNS BE LIABLE TO THE OTHER PARTY FOR ANY

DAMAGES, LOSSES, OR COSTS INCURRED, INCLUDING INCIDENTAL, INDIRECT,

SPECULATIVE, CONSEQUENTIAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES

OF ANY KIND (WHETHER BASED ON CONTRACT, TORT, INCLUDING NEGLIGENCE,

STRICT LIABILITY, FRAUD, OR OTHERWISE, OR STATUTES, REGULATIONS, OR

ANY OTHER THEORY), ARISING OUT OF OR IN CONNECTION WITH THE AGREEMENT.
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APPENDIX E

INFORMATION SECURITY REQUIREMENTS

1. Acknowledgment of Information Security Requirements. FORTE acknowledges and mandated information security requirements applicable to its duties and obligations specified under this Agreement.

2. Compliance with Laws and Industry Standards. FORTE agrees to abide by all Laws, Rules and industry-mandated information security standards applicable to its duties and obligations related to information security for Services provided by FORTE to AGENCY under this Agreement.

3. Definitions.
a. Consumer Information.

Data, as defined below.
b. Source Data. AGENCY relating to AGENCY
account activity or other information collected from the AGENCY in order to process a transaction on a AGENCY AGENCY
, whether in individual or aggregate form. Source Data may include PII but is not limited to PII. Source Data is and shall remain the property of an AGENCY and /or its Consumer customer. To the extent that ISV or FORTE have access to or collects such Source Data, each agrees that it does so solely on behalf of the AGENCY and the AGENCY
obligations hereunder and shall maintain the confidentiality of such Source Data and shall treat it in accordance with applicable Law.

4. Security Obligations.
a. FORTE hereby acknowledges that AGENCY has a responsibility under the law to keep PII (as defined in Appendix A) private and confidential, and as a result of any PII received by FORTE in the performance of this Agreement, FORTE shall have the same responsibility. FORTE also acknowledges that the PII to which it will have access pursuant to this Agreement (if any), that FORTE shall gain possession of any ownership or other proprietary rights with respect to such PII. FORTE acknowledges and understands that PII may be subject to applicable local, state and federal Rules and Laws and applicable information industry standards; provided however, to the extent that AGENCY informs FORTE of a local law expanding the definition of PII in Appendix A, FORTE shall only be required to use commercially reasonable efforts to comply with such expanded local requirements.
b. Consumer Information that is collected or obtained from AGENCY pursuant to this 51 of 145
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Agreement shall be stored and maintained by FORTE in a secure environment and transmitted by FORTE in a secure form that meets industry-mandated data security standards. Although FORTE will protect and safeguard PII in a manner that meets industry-mandated data security standards, the parties agree that there may be some instances in which PII or certain PII data elements are protected in a more secure manner than other data (e.g., encryption).

5. Rights to Use and Access. AGENCY hereby grants to FORTE a non-exclusive right to use all of AGENCY AGENCY
necessary to perform the Services under this Agreement. FORTE shall limit the use and access to AGENCY
auditors and required governmental agencies, who have a need to know such information and who agree to comply with use and non-disclosure restrictions similar to those contained within this Agreement.

6. Security of Consumer Information. Each Party shall implement and maintain a Security Program that includes appropriate administrative, technical and physical safeguards reasonably designed to: (i) ensure the security and confidentiality of Consumer Information within its systems; (ii) protect against any anticipated threats or hazards to the security or integrity of Consumer Information within its systems; and (iii) protect against unauthorized access to or use of Consumer Information stored on its systems; and (iv) dispose of Consumer Information in a secure manner per applicable Rules and Laws.
a. In order to comply with safeguard obligations generally described in the preceding paragraph, each Party shall (1) designate an employee or employees to coordinate its Security Program, (2) identify reasonably foreseeable internal and external risks to the security, confidentiality and integrity of Consumer Information located on its systems that could result in the unauthorized disclosure, misuse, alteration, destruction or other compromise of such information, and assess the sufficiency of any safeguards in place to control these risks. At a minimum, such risk assessment including: (i) employee training and management; (ii) information systems, including network and software design, as well as information processing, storage, transmission and disposal; and (iii) detecting, preventing and responding to attacks, intrusions, or other systems failures, which shall include the use of commercially reasonable efforts to establish procedures and logging mechanisms for FORTE systems and networks that will allow tracking and analysis in the event there is a compromise of its systems, and maintain an audit trail history for at least three (3) months for review by AGENCY upon reasonable request; (3) design and implement information safeguards to control the risks identified through risk assessment, and systems, and procedures; and (4) use commercially reasonable efforts to assure data security when disposing of any Consumer Information. 52 of 145
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7. Disclosures. Neither Party shall have an obligation to maintain the confidentiality of any Consumer Information which: (i) has been received by it from a third party without restriction on disclosure and without breach of agreement or other wrongful act by the receiving party; or (ii) is independently developed by it without reference to any Consumer Information. If required by any court of competent jurisdiction or other governmental authority, each Party may disclose to such authority, data, information or materials involving or pertaining to Consumer Information to the extent required by such order or authority. FORTE shall, if not otherwise prohibited, give the other Party as much advance notice of the possibility of such disclosure as is practical so that it may, at its own expense, attempt to stop such disclosure or obtain a protective order concerning such disclosure.

8. Breach Notification.
system, website, database, equipment or storage medium or facility that results in (including any consultant or subcontractor of the Party that is not authorized to access such information), the Party that experienced the breach shall notify the other Party within a commercially reasonable time after taking any appropriate measures necessary to prevent further access, and shall take commercially reasonable efforts to resecure its systems as soon as possible. The Party that experienced the breach shall provide any information that the other Party reasonably requests pertaining to the incident, unless prohibited from doing so by applicable Rule or Law and shall provide reasonable cooperation to investigate any such incident. In addition, in the event of an actual or lated to
AGENCY
extent reasonably practicable, cooperate with the investigative actions of the appropriate forensic unit and/or law enforcement agency and agrees to provide the other Party with a copy of the final Incident Report, if any, upon request.

9. . FORTE and AGENCY
agree to utilize existing FORTE assessment reports and Certifications (SSAE report and Requirements set forth in this Appendix E.
a. FORTE shall maintain all records pertaining to the Services as required by applicable Rule or Law.
b. FORTE shall provide at its expense, upon AGENCY
than an annual basis, its most current independent, SSAE report (third party service organization report). An SSAE report for purposes of this Agreement is defined as a specialized report or reports of controls, generally accepted in the industry, in the areas of financial reporting and general information technology controls for the services provided by a hosted solutions provider, managed services provider, service organization, service bureau or other similarly structured provider of software and hardware solutions. FORTE shall select the type of SSAE report that will be 53 of 145
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provided based upon the relationship between the parties and the products and services provided by FORTE. In the event AGENCY wishes to receive a type of SSAE report not currently provided by FORTE, AGENCY shall provide no less than eighteen (18) months prior written notice to FORTE and FORTE in its sole discretion shall determine whether it will provide the additional type of SSAE report to AGENCY. FORTE will provide a copy of the most current report prepared; provided that AGENCY shall accept and agree to any conditions imposed by the independent audit firm for access to such report. FORTE will use good faith efforts to assist in resolving any issues that may arise between AGENCY and any independent auditor firm regarding the viewing of the SSAE report. AGENCY may not distribute or SSAE report
c. FORTE is PCI DSS certified and undergoes an annual audit in order to maintain PCI DSS compliance against the current version of PCI DSS published on the PCI SSC (PCI Security Standards Council) website.
d.
and processes, which FORTE describes as confidential, and which are disclosed as a result of any review or audit. FORTE agrees that any material failure, as defined by AGENCY in its reasonable discretion, to cooperate fully and promptly in the conduct of any audit requested pursuant to this paragraph will constitute grounds for AGENCY to immediately terminate the Agreement and cease receiving Services from FORTE; provided, however, AGENCY shall provide FORTE with written notice of such material failure to cooperate and FORTE shall have thirty (30) days exclusive remedy for any such failure to cooperate.

10. Network and Application Scans. FORTE shall perform network and application security vulnerabilities and (iii) system access. FORTE will have processes that review and remediate vulnerabilities.
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SCHEDULE 1

PRICING FEE SCHEDULE
Such Pricing Fee
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PRICING FEE SCHEDULE
San Bruno, CA
Forte Payment Systems is proud to provide a robust processing platform and flexible pricing strategies:

Absorbed Model - credit card/debit card Merchant Services, Electronic Check Services and the Secure Gateway are absorbed by your office.

Absorbed Pricing Option:

Emerging Market and Public-Sector Rate Structure
Processing Costs: Fees Frequency
Option 1. Visa, MasterCard, Discover ,
Amex, Debit Card. 3.0% Per Transaction
Credit Card Chargeback Fee $25.00 Per Chargeback
Batch Fee $0.00 No Charge - Waived
ACH Fee-debits/credits $1.00 with Forte Verify Per Transaction ACH Return Fee $2.00 Per Return
Monthly Fee $5.00 Each Month per Merchant Account
Equipment and Service Pricing:

The following table reflects our Equipment and Service Offerings Select pricing option(s) desired: Absorbed Pricing
Option 1
*Required Merchant Signature: ____________________________________________ Date ______________________________
Standard Product Description Fees and Cost of Equipment VeriFone V400c Terminal
(Hybrid with cables)
$450.00 per terminal plus
shipping
MagTek eDynamo and Counter-Top
Docking Station Bundle (recommended)
$219/Device with Docking
station plus shipping
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ATTACHMENT 3
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 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
SUBJECT: Consider Adoption of a Resolution:
• Approving the Design of the 2023-24 Slurry Seal Project; • Authorizing the City Manager to Execute a Construction Contract with American Asphalt Repair & Resurfacing Company, Inc. for the 2023-24 Slurry Seal Project in the amount not to exceed $668,398.08; • Approving a Construction Contingency of $100,000;
• Transferring the budget in the amount of $160,000 from the 2022-23 Slurry Seal Project to the 2023-24 Slurry Seal Project; • Approving a Total Project Budget in the Amount of $1,017,000 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 to repair and apply preventative maintenance treatment to local, collector, and arterial streets.

Street condition is measured in terms of the pavement condition index (PCI) from a numerical range between 0 and 100. A rating of 0 represents a failed street and a rating of 100 represents a newly paved street. The City’s current average PCI is 62 for the approximately 89 center miles of streets maintained by the City.

Similar to other cities throughout the Bay Area, the City utilizes the Metropolitan Transportation Commission’s (MTC’s) Streetsaver program to serve as a database for tracking the condition of the City’s streets and to recommend streets to be selected for treatment. Streetsaver analyzes the pavement lifecycle of each individual street segment to suggest the appropriate treatment to apply. Treatments vary from applying preventative maintenance on streets in good condition to reconstruction of failed streets. Reconstruction of failed streets is the most expensive treatment and can cost ten to twenty-five times as much as applying preventative maintenance to non- failed streets. Preventative maintenance is considered to be the most effective treatment due to this cost differential.

The proposed 2023-24 Slurry Seal Project (“Project”) is a preventative maintenance project that will apply slurry seal treatment to various streets throughout the City. A slurry seal application consists of a mixture of asphaltic emulsion and fine aggregates that is spread over an existing roadway to seal the surface and protect the underlying pavement structure. Preserving and performing preventative maintenance on existing streets that are in good condition is critical to 57 of 145
Item 6e.

Honorable Mayor and Members of the City Council
July 23, 2024

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8 3
6 prevent them from prematurely failing. Additional work includes replacing striping, base repair, and, in coordination with the traffic engineering division, the installation of speed humps and signage. Speed humps and signage will be installed on Glenview Drive whose residents successfully implemented traffic calming measures through the Traffic Safety and Parking Committee (TSPC) process.

In April 2024, the City executed an agreement with CSG Consultants, Inc. for the design of the 2023-24 Slurry Seal Project.

To provide flexibility, the project was packaged into a base bid street segment that staff calculated would be awarded based on the available funding with an additional additive street segment that could be awarded in the event the bids came in below the engineer’s estimate.

The project consists of the following base bid and bid additive streets:

Base Bid
Street Name From To

AMADOR AVENUE MONTEREY DRIVE SNEATH LANE

BURROWS AVENUE PARK AVENUE KAINS AVENUE

CASTLETON WAY LONGVIEW DRIVE ROSS WAY

CEDAR AVENUE JENEVEIN AVENUE PARK AVENUE

CEDAR AVENUE KAINS AVENUE CEDARWOOD COURT

CEDAR AVENUE PARK AVENUE KAINS AVENUE

DE SOTO WAY SANTA LUCIA AVENUE CITY PARK

EMALITA COURT END LINDEN AVENUE

EMARON DRIVE GOODWIN DRIVE GOODWIN DRIVE

HICKORY AVENUE CHERRY AVENUE CEDAR AVENUE

HOLLY AVENUE CHERRY AVENUE CEDAR AVENUE

JUNIPER AVENUE CHERRY AVENUE CEDAR AVENUE

KAINS AVENUE CHERRY AVENUE PEPPER DRIVE

LASSEN DRIVE LAKE DRIVE AMADOR AVENUE

MERCED DRIVE AMADOR AVENUE CUL-DE-SAC

PARK AVENUE CHERRY AVENUE CEDAR AVENUE

PINECREST DRIVE VALLEYWOOD DRIVE EVERGREEN DRIVE

SANTA BARBARA PLACE SNEATH LANE CUL-DE-SAC

SERRA COURT PARKVIEW DRIVE END

SHERYL DRIVE FASMAN DRIVE COLLEGE DRIVE

SISKIYOU COURT SNEATH LANE CUL-DE-SAC
Bid Additive Alternate 1

LINDEN AVENUE SANTA TERESA WAY JENEVEIN AVENUE

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Honorable Mayor and Members of the City Council
July 23, 2024

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8 3
6 DISCUSSION:

The 2023-24 Slurry Seal Project Design, which consists of plans and specifications on file with the Public Works Department, was completed in June 2024.

On June 12, 2024, staff issued a notice inviting bids for the construction of the 2023-24 Slurry Seal Project. Notice to bidders was sent to contractors in the City’s contractor list, posted on the City’s website, and provided to construction distribution advertisement centers. The project was also advertised twice in the San Mateo Times newspaper on June 12, 2024, and June 19, 2024. Staff held a non-mandatory pre-bid meeting on June 21, 2024. On June 28, 2024, staff conducted the bid opening for the project and received two (2) sealed bids as follows:

No. Contractor Name
Base Bid
(Basis of Award)
Bid Additive
Alternate 1 Total Bid
1 American Asphalt
Repair & Resurfacing
Company, Inc. $668,398.08 $107,314.76 $775,712.84
2 VSS International, Inc. $724,804.20 $130,689.42 $855,493.62 Engineer’s Estimate $537,026.60 $99,033.60 $636,060.20
American Asphalt Repair & Resurfacing Company, Inc. submitted a base bid in the amount of $668,398.08 and bid additive alternate 1 of $107,314.76. The total bid (base bid and bid additive alternate 1) from American Asphalt Repair & Resurfacing Company, Inc. is $775,712.84, which is approximately $139,652.64 above the engineer’s estimate of $636,060.20. Staff reviewed the bid materials and determined American Asphalt Repair & Resurfacing Company, Inc. to be the lowest cost, responsive and responsible bidder.

Bid additive alternate 1 was included in the bid documents as an additive street segment that could be awarded in the event the bids came in below the engineer’s estimate. Based on the bid results, the bids received were above the engineer’s estimate. Additionally, the unit price of the work on the bid additive alternate is higher than the base bid, indicating a less favorable value.

Staff recommends awarding only the base bid in the amount of $668,398.08 to American Asphalt Repair & Resurfacing Company, Inc. The street segment in Bid additive alternate 1 will be prioritized in the next slurry seal project. Postponing the work on the street segment is not anticipated to have substantial negative impact.

American Asphalt Repair & Resurfacing Company, Inc., which has an office located in Hayward, CA, has satisfactorily completed other street slurry seal projects for the City and other public agencies, meets the contractor qualifications, and has a valid contractor’s license required to perform the scope of work of this project. Based on the contractor’s experience and performance with other agencies including San Bruno, staff determined that American Asphalt Repair & Resurfacing Company, Inc. meets the qualifications to perform the work for the 2023- 24 Slurry Seal Project as specified in the contract documents. 59 of 145
Honorable Mayor and Members of the City Council
July 23, 2024

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6 The City will be entering into an agreement with Ninyo & Moore to provide materials and compaction testing services for the Project in the amount not to exceed $27,840. Construction of the project will have impacts on residents in the project vicinity such as temporary roadway closures, noise, dust, and accessibility in and out of private properties. Parking will also be restricted within each roadway as construction work is occurring. 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 starting construction in August 2024, and taking approximately forty (40) calendar days to complete.

FISCAL IMPACT:

The 2023-24 Slurry Seal Project is a project within the approved CIP budget in the amount of $836,600. Pedestrian Safety and Traffic-Calming Program - TSPC Studies (Project #60020) will fund approximately $26,000 to install speed humps within project limits. The approximate total cost of the project is $1,017,000, which exceeds the total budget of $862,600. Approximately an additional $160,000 is needed to fund the project. Staff recommends transferring the budget in the amount of $160,000 from the 2022-23 Slurry Seal Project (Project #60031) to the 2023-24 Slurry Seal Project. The cost savings from the 2022-23 Slurry Seal Project completed last fiscal year is approximately $230,000.

Total estimated project cost are as follows:

Design Contract (CSG Consultants Inc.) $ 100,485.00
Staff Project Management during Design $ 45,000.00
Advertising and Public Notice $ 10,000.00
Construction Contract (American Asphalt) $ 668,398.08
Contingency (15% of Construction Contract) $ 100,000.00 Materials and Compaction Testing (Ninyo & Moore) $ 27,840.00 Estimated Staff Management and Inspection for Construction $ 65,000.00 Estimated Total Project Cost (rounded) $ 1,017,000.00
ENVIRONMENTAL IMPACT:

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

RECOMMENDATION:

Adoption of a Resolution:
• Approving the Design of the 2023-24 Slurry Seal Project; • Authorizing the City Manager to Execute a Construction Contract with American Asphalt Repair & Resurfacing Company, Inc. for the 2023-24 Slurry Seal Project in the amount not to exceed $668,398.08;
• Approving a Construction Contingency of $100,000;
• Transferring the budget in the amount of $160,000 from the 2022-23 Slurry Seal Project to the 2023-24 Slurry Seal Project;
• Approving a Total Project Budget in the Amount of $1,017,000; and 60 of 145
Honorable Mayor and Members of the City Council
July 23, 2024

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6 •Determining the Project is Exempt Under the California Environmental Quality Act ALTERNATIVES:

1. Reject bid and direct staff to re-advertise the project. This action will delay the completion of the 2023-24 Slurry Seal Project and may result in the City receiving higher bids.

2. Award the bid additive alternate 1 and appropriate additional funding.

ATTACHMENTS:

1. Resolution

2. 2024-25 CIP Budget Worksheets

3. Location Map

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RESOLUTION NO. 2024 - ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO • APPROVING THE DESIGN OF THE 2023-24 SLURRY SEAL PROJECT; • AUTHORIZING THE CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT WITH AMERICAN ASPHALT REPAIR & RESURFACING COMPANY, INC. FOR THE 2023-24 SLURRY SEAL PROJECT IN THE AMOUNT NOT TO EXCEED $668,398.08; • APPROVING A CONSTRUCTION CONTINGENCY OF $100,000;
• TRANSFERRING THE BUDGET IN THE AMOUNT OF $160,000 FROM THE 2022-23 SLURRY SEAL PROJECT TO THE 2023-24 SLURRY SEAL PROJECT; • APPROVING A TOTAL PROJECT BUDGET IN THE AMOUNT OF $1,017,000; 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 to repair and apply preventative maintenance treatment to local, collector, and arterial streets; and
WHEREAS, the slurry seal is a cost-effective method of reconditioning and extending the life of asphalt roadway surfaces; and
WHEREAS, in April 2024, the City executed an agreement with CSG Consultants, Inc. for the design of the 2023-24 Slurry Seal Project; and
WHEREAS, the 2023-24 Slurry Seal Project Design, which consists of plans and specifications on file with the Public Works Department, was completed in June 2024; and WHEREAS, on June 12, 2024, staff issued a notice inviting bids for the construction of the 2023-24 Slurry Seal Project; and
WHEREAS, on June 28, 2024, staff conducted the bid opening for the project and received two (2) sealed bids; and
WHEREAS, American Asphalt Repair & Resurfacing Company, Inc. submitted a base bid in the amount of $668,398.08 and bid additive alternate 1 of $107,314.76; and WHEREAS, the total bid (base bid and bid additive alternate 1) from American Asphalt Repair & Resurfacing Company, Inc. is $775,712.84, which is approximately $139,652.64 above the engineer’s estimate of $636,060.20, which included the estimates for the base bid and add alternate; and
WHEREAS, staff reviewed the bid materials and determined American Asphalt Repair & Resurfacing Company, Inc. to have the lowest, responsive bid and be a responsible bidder; and WHEREAS, staff recommends awarding only the base bid in the amount of $668,398.08 to American Asphalt Repair & Resurfacing Company, Inc.; and WHEREAS, American Asphalt Repair & Resurfacing Company, Inc., which has an office located in Hayward, CA, has satisfactorily completed other street slurry seal projects for the 62 of 145
ATTACHMENT 1
2 City, meets the contractor qualifications, and has a valid contractor’s license required to perform the scope of work of this project; and
WHEREAS, the 2023-24 Slurry Seal Project is a project within the approved CIP budget in the amount of $836,600; and
WHEREAS, Pedestrian Safety and Traffic-Calming Program - TSPC Studies (Project #60020) will fund approximately $26,000 to install speed humps within project limits; and WHEREAS, the approximate total cost of the project is $1,017,000 which exceeds the total budget of $862,600; and
WHEREAS, approximately an additional $160,000 is needed to fund the project; and WHEREAS, staff recommends transferring the budget in the amount of $160,000 from the 2022-23 Slurry Seal Project (Project #60031) to the 2023-24 Slurry Seal Project; and WHEREAS, this project falls within the Categorical Exemption set forth in CEQA Guidelines, Section 15301(c), which exempts the repair and maintenance of existing streets, sidewalks, gutters, bicycle and pedestrian trials, and similar facilities.

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

1. Approves the Design of the 2023-24 Slurry Seal Project;

2. Authorizes the City Manager to Execute a Construction Contract with American Asphalt Repair & Resurfacing Company, Inc. for the 2023-24 Slurry Seal Project in the amount not to exceed $668,398.08;

3. Approves a Construction Contingency of $100,000;

4. Transfers the budget in the amount of $160,000 from the 2022-23 Slurry Seal Project to the 2023-24 Slurry Seal Project;

5. Approves a Total Project Budget in the Amount of $1,017,000; and

6. Determines that 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 July 23, 2024, by the following vote:

AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk
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ATTACHMENT 2
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ATTACHMENT 3
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 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
Hae Won Ritchie, P.E., City Engineer
Dalia Manaois, P.E., Principal Civil Engineer
Calvin Iwan, Assistant Civil Engineer
SUBJECT: Consider Adoption of a Resolution:
• Approving the Design of the Winter Storm Hazard Mitigation Project adjacent to Water Tank 1 by Cunningham Way;
• Authorizing the City Manager to Execute a Construction Contract with Farallon Company Engineering for the Winter Storm Hazard Mitigation Project within City-owned Property, Located near the 400-block of Cunningham Way in an amount not to exceed $213,980;
• Approving a Construction Contingency of $32,097;
• Approving a Total Project Budget in the Amount of $429,486; and • Determining the Project is Exempt Under the California Environmental Quality Act
BACKGROUND:

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 including near Water Tank 1 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 construction contract for the work near the 1400-block of Claremont Drive was awarded on June 25, 2024 and is in the construction phase. The work needed near the 400-block of Cunningham Way required designs relying on information obtained through geotechnical boring. The geotechnical engineer observed that the landslide consisted of a narrow debris flow down a steep slope, which deposited over a four to five feet tall wood retaining wall onto the resident’s rear deck. The slide area is about ten feet wide, starting near the top of the slope and downslope from a 24-inch corrugated metal drainpipe. The pipe was not observed to be leaking. There is roughly a 15 feet long tension crack that extends to the south 70 of 145
Item 6f.

Honorable Mayor and Members of the City Council
July 23, 2024

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5 along the contour of the slide. The debris flow is believed to have originated on City property and flowed onto the homeowner’s rear property
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 Winter Storm Hazard Mitigation Project adjacent to Water Tank 1 by Cunningham Way Project Design (“Design”), which consists of plans and specifications that are on file with the Public Works Department, was completed in June 2024.

On June 27, 2024, the City issued a notice inviting bids for the construction of the Winter Storm Hazard Mitigation Project adjacent to Water Tank 1 by Cunningham Way. Notice to bidders was sent to the 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 June 27, 2024 and July 4, 2024. Staff held a non-mandatory on- site pre-bid conference on July 3, 2024. On July 12, 2024, staff conducted the bid opening for the Project and received three (3) bids which are summarized as follows:

No. Contractor Name Total Bid
1 Farallon Company Engineering $213,980
2 Michael Glynn Construction Services $257,688
3 Brannon Corporation $277,676
The bid from Farallon Company Engineering was in the amount of $213,980, which is $6,720 below the engineer’s estimate of $220,700. Staff reviewed the bid materials and determined that the submitted bid is responsive.

Staff recommends awarding the bid Farallon Company Engineering which has an office located in Richmond, CA. Staff determined that Farallon Company Engineering meets the qualifications to perform the work for the Winter Storm Hazard Mitigation Project located adjacent to Water Tank 1 by Cunningham Way 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 2024-25.

FISCAL IMPACT:

The Winter Storm Hazard Mitigation Project is a project within the approved CIP budget of $991,000. The estimated total cost of the project adjacent to the Water Tank 1, which includes design, construction, staff management, construction management, inspection, and construction contingency is $429,486. Included the Winter Storm Hazard Mitigation Project is the Winter Storm Mitigation Project near the 1400-block of Claremont Drive, with an estimated total project 71 of 145
Honorable Mayor and Members of the City Council
July 23, 2024

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5 budget of $451,000.

The estimated project costs are as follows:

Winter Storm Hazard Mitigation Project Adjacent to Water Tank 1 by Cunningham Way Description Cost
Design Contract (Wilsey Ham) $128,409
Staff Management $15,000
Estimated Construction Management Time & Inspection $40,000 Construction Contract (Farrallon Company Engineering) $213,980 Construction Contingency (15%) $32,097
Project Total (rounded) $430,000
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:

Adoption a Resolution:
• Approving the Design of the Winter Storm Hazard Mitigation Project adjacent to Water Tank 1 by Cunningham Way;
• Authorizing the City Manager to Execute a Construction Contract with Farallon Company Engineering for the Winter Storm Hazard Mitigation Project Adjacent to Water Tank 1 by Cunningham Way in an amount not to exceed $213,980;
• Approving a Construction Contingency of $32,097;
• Approving a Total Project Budget in the Amount of $429,486; 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 Farrallon Company Engineering, reject all bids, and request staff to rebid the project; however, this will further delay the project.

ATTACHMENTS:

1. Resolution

2. Landslide Location
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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 ADJACENT TO WATER TANK 1 BY CUNNINGHAM WAY; AUTHORIZING THE CITY MANAGER TO

EXECUTE A CONSTRUCTION CONTRACT WITH FARRALLON COMPANY

ENGINEERING FOR THE WINTER STORM HAZARD MITIGATION PROJECT WITHIN CITY-OWNED PROPERTY, LOCATED NEAR THE 400-BLOCK OF CUNNINGHAM WAY IN AN AMOUNT NOT TO EXCEED $213,980; APPROVING A CONSTRUCTION CONTINGENCY OF $32,097; APPROVING A TOTAL PROJECT BUDGET IN THE AMOUNT OF $429,486; 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 work needed near the 400-block of Cunningham Way required designs relying on information obtained through geotechnical boring; and WHEREAS, the geotechnical engineer observed that the landslide consisted of a narrow debris flow down a steep slope, which deposited over a four to five feet tall wood retaining wall onto the resident’s rear deck; and
WHEREAS, the project design (“Design”), which consists of plans and specifications that are on file with the Public Works Department, was completed in June 2024; WHEREAS, on June 27, 2024, the City issued a notice inviting bids for the construction of the Winter Storm Hazard Mitigation Project adjacent to Water Tank 1 by Cunningham Way;
WHEREAS, the project was advertised twice in the San Mateo County Times newspaper on June 27, 2024 and July 4, 2024; and
WHEREAS, on July 12, 2024, staff conducted the bid opening for the project and received three (3) bids; and
WHEREAS, the base bid from Farrallon Company Engineering was in the amount of $213,980, which is $6,720 below the engineer’s estimate of $220,700; and 73 of 145
ATTACHMENT 1
2 WHEREAS, based on the contractor’s experience and performance with other agencies including San Bruno, staff determined that Farrallon Company Engineering meets the qualifications to perform the work for the Winter Storm Hazard Mitigation Project located adjacent to Water Tank 1 by Cunningham Way; and
WHEREAS, the estimated total cost of the project, which includes design, construction, staff management, and construction contingency is $429,486; 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 adjacent to Water Tank 1 by Cunningham Way;
• Authorizes the City Manager to Execute a Construction with Farrallon Company Engineering, for the Winter Storm Hazard Landslides Mitigation Project within City-owned Property, located near the 400-block of Cunningham Way in an Amount not to Exceed $213,980;
• Approves a Construction Contingency of $32,097;
• Approves a Total Project Budget in the Amount of $429,486; 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 July 23, 2024, by the following vote:

AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk
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ATTACHMENT 2
City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Peter Gilli, Community Development Director Raquel Pulido, Special Assistant
SUBJECT: Consider Adoption of an Ordinance Amending the Zoning Map for the Properties at 111 San Bruno Avenue West and 761-767 Huntington Avenue
BACKGROUND:

On July 9, 2024, the City Council voted 5-0 to introduce an ordinance to amend the Zoning Map at 111 San Bruno Avenue West and 761-767 Huntington Ave from the Planned Development (P-D) district to the Medium Density Mixed-Use (TOD-1) district.

DISCUSSION:

The purpose of this consent calendar item is to finalize adoption of an ordinance that would change the Zoning Map for 0.65 acres (111 San Bruno Avenue West and 761-767 Huntington Avenue.) from P-D (Planned Development) to TOD-1 (Medium Density, Mixed-Use).

FISCAL IMPACT:

There is no fiscal impact for the rezoning.

ENVIRONMENTAL IMPACT:

The proposed project is exempt from further review under the California Environmental Quality Act (CEQA) pursuant to the Community Plan Exemption (15183), Consistency with Program EIRs (15168), and Consistency with a Specific Plan EIR (Section 65457(a)), based on the Transit Corridor Plan (TCP) Program EIR adopted by City Council on February 12, 2013, and the determination that the project would not result in any new potential impacts not previously identified in the Program EIR.

RECOMMENDATION:

Adopt an Ordinance amending the Zoning Map for the property at 111 San Bruno Avenue West and 761-767 Huntington Avenue.
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Item 6g.

Honorable Mayor and Members of the City Council
July 23, 2024

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ALTERNATIVES:

1. Do not adopt the Ordinance

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

ATTACHMENTS:

1. Ordinance
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ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO AMENDING THE

ZONING MAP FOR THE PROPERTIES LOCATED AT
111 SAN BRUNO AVENUE WEST AND 761-767 HUNTINGTON AVENUE PURSUANT TO SECTION 12.136.040 OF THE SAN BRUNO MUNICIPAL CODE (APNs: 020- 121-360, 020-121-350) (ZC23-001)
WHEREAS, on January 18, 2023, representatives on behalf of San Bruno Development, LLC (“Applicant”) submitted an application to the City of San Bruno (“City”) to construct a five- story mixed-use building at 111 San Bruno Avenue (“Project”) (Assessor’s Parcel Number (“APN”) 020-121-360);
WHEREAS, in order to develop the Project, the Applicant requested approval of the following: an amendment to the San Bruno Zoning Map to change the zoning for Project Site (APN: 020-121-360) and the adjacent property at 761-767 Huntington Avenue ( APN: 020-121- 350) (the “Properties”) from Planned Development District (P-D) to Medium Density, Mixed-Use (TOD-1) (ZC23-001); a Tentative Map (TM23-001); an Architectural Review Permit (AR23-001); a Density Bonus request (DB24-002); and an Affordable Housing Plan; WHEREAS, the existing P-D zoning district that includes APNs 020-121-360 and 020- 121-350 is obsolete because the project for which P-D district was approved has been abandoned, and the owner of the 111 San Bruno Ave. W. has requested rescission of the P-D zoning to allow for alternate development proposals;
WHEREAS, in 2021, the city rezoned the San Bruno Avenue corridor from Commercial (C) to Medium Density, Mixed-Use (TOD-1), as part of the Transit Corridors Specific Plan (TCP) implementation;
WHEREAS, the Project is located within the TCP area;
WHEREAS, on February 12, 2013, the City Council certified a Program Environmental Impact Report (Program EIR) and adopted a Mitigation Monitoring and Reporting Program for the TCP, which were prepared pursuant to the California Environmental Quality Act (CEQA); WHEREAS, the Program EIR may be used to evaluate site-specific, individual projects, such as the proposed Project and zone change, that are within the TCP; WHEREAS, on February 16, 2023, the Architectural Review Committee reviewed the Project application and provided a favorable recommendation of the Project with comments that were forwarded to the Planning Commission;
WHEREAS, on June 18, 2024, the Planning Commission held a public hearing to consider the above-described Zoning Map amendment and adopted Resolution 2024-07 recommending that the City Council approve the proposed amendment; and WHEREAS, the Project, including the zone change, was evaluated using the Program EIR to determine if all potentially significant environmental impacts of the individual project:
• Have been previously identified (are not new) and are not substantially more severe than those identified in the Program EIR;
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ATTACHMENT 1
• Will be avoided or mitigated to the extent feasible as a result of the Program EIR; and • Have been examined in the Program EIR, site-specific project revisions, or the implementation of standards development standard regulations; WHEREAS, the City prepared a “Checklist For Streamlined Review Pursuant To California Public Resources Code Section 21083.3 and CEQA Guidelines Sections 15168 And 15182”, (hereafter “Checklist”), which found that implementation of the Project would not result in any new potential impacts that were not previously identified in the Program EIR; WHEREAS, the Checklist concludes that the Project is exempt from the California Environmental Quality Act (CEQA) pursuant to the Community Plan Exemption (15183), Consistency with Program EIR’s (15168), and Consistency with a Specific Plan EIR (California Government Code Section 65457(a));
WHEREAS, a Notice of Public Hearing was mailed to properties within a 1,000-foot radius of the proposed rezoning on June 27, 2024 and duly posted in the San Mateo Daily Journal on Saturday, June 29, 2024; and
WHEREAS, on July 9, 2024, the City Council held a Public Hearing on the Project 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 establish consistent transit oriented zoning district near the San Bruno Caltrain Station that promote new housing and mixed-use development within downtown and begins to establish the northern entrance to downtown. 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 APNs: 020-121- 350 and 020-121-360 from Planned Development District (P-D) to Medium Density, Mixed-Use (TOD-1), 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 Zoning Map Amendment.
________________________________
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 I hereby certify that foregoing Ordinance No. ____ was introduced at a regular meeting of the San Bruno City Council on July 9, 2024, and adopted by the San Bruno City Council at a regular meeting on July 23, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:
_____________________________
Lupita Huerta, City Clerk
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Exhibit A
Proposed Zoning Map Amendment
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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Dennis Bosch, Acting Public Works Director Matthew Lee, P.E., Public Works Director
Ana Morales, Management Analyst
SUBJECT: Consider Adoption of a Resolution:
• Accepting and Appropriating Peninsula Clean Energy Member Agency Energy Grant Funding and Authorizing the City Manager to Execute any Funding Agreements with Peninsula Clean Energy Authority in the Amount of $506,409 for Phase 1 of the Regulated Output (R.O.) Streetlight Replacement Project (CIP #60035)
• Accepting and Appropriating Department of Energy, Energy Efficiency Conservation Block Grant Funding and Authorizing the City Manager to Execute any Funding Agreements with the Department of Energy in the Amount of $76,430, When Received, for Phase 1 of the Regulated Output (R.O.) Streetlight Replacement Project (CIP #60035) • Authorizing the City Manager to Purchase the Solar Streetlights in an Amount Not to Exceed $686,000; and
• Determining the Project is Exempt Under the California Environmental Quality Act
BACKGROUND:

The City of San Bruno (City) owns and operates approximately 2,200 streetlights Citywide, of which there are seven Regulated Output (R.O.) streetlight circuits (see Image 1), totaling 269 streetlights. The 269 streetlights that are on the R.O. streetlight circuits function similarly to holiday lights that are in a series circuit, meaning that the failure of the wire or streetlight at one point will cause all the lights on the circuit to also stop functioning. This differs from parallel systems where the outage of one light does not cause the outage of the entire system.

The R.O. systems, including lighting, electrical wires, conduits, and poles, were installed approximately 75 years ago and have significantly exceeded their expected operational lifespans. Over the past two decades, these now outdated and inefficient R.O. systems have experienced an increasing frequency of failures, leading to both short and prolonged streetlight outages across multiple locations.
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Item 6h.

Honorable Mayor and Members of the City Council
July 23, 2024

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Image 1: Base Map of Regulated Output Areas
System Failures
Frequent failures in these R.O. circuits have resulted in significant service disruptions over the lifespan of the system. In the past six years alone, the City has experienced more than two dozen sustained outages that required significant repairs, with the most recent outages occurring in the Crestmoor neighborhood in October 2023 and the Rollingwood neighborhood in February 2024. The emergency repairs at these two outages have resulted in 16 failures of the system, with each failure further weakening the system. Each time the system is repaired and re-energized, the repair can potentially last less than a day. This is due to other weak points in the system being susceptible and prone to failure next. When there is a system failure, there is a potential unsafe condition throughout the neighborhood.

Permanent Repair
After extensive analyses, the City determined paths toward a permanent repair, and in November 2023, San Bruno’s City Council provided feedback to City staff to convert all R.O. circuits to solar power streetlights.

Staff’s efforts then focused on finalizing the design phase, which included testing and identifying the appropriate solar streetlight for the San Bruno climate, conducting a photometric analysis to confirm that the solar light output is similar or an improvement in coverage compared to the City’s current alternating current (AC)-powered lights, and performing a solar analysis to help 83 of 145
Honorable Mayor and Members of the City Council
July 23, 2024

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determine if the streetlight locations will receive adequate sunlight to power the streetlights throughout the night.

In June 2024, the City sent a letter to residents in the Crestmoor and Rollingwood neighborhoods explaining these next steps, in addition to a brief history of the streetlights and what the City has done to date.

DISCUSSION:

To implement the above-referenced selected permanent repair, Staff has developed a phased approach beginning with Phase 1, which addresses the recent months-long streetlight outages in the Rollingwood and Crestmoor neighborhoods. There are currently 150 streetlights in these areas, with 11 located in shaded spots that may prevent them from charging during the day to be powered at night. To accelerate the project timeline for Phase 1, staff will finalize the design for the Phase 1 streetlights by Fall 2024, with construction ready to commence soon thereafter.

The 11 light locations referenced above are set to receive solar lights to determine if it’s possible to utilize solar lights for the entire system. If they do not work, an alternative Phase 1a will need to be implemented as additional funding becomes available.

Phase 1 is planned to be constructed between Fall 2024 and Summer 2025.

Phase 2, which focuses on the remaining R.O. circuits in the City, will be implemented as additional funding becomes available.

Capital Costs
The budget needed to construct Phase 1 is estimated at $816,000.

The 150 solar streetlights (inclusive of a five-year warranty) are estimated to cost $686,000. In order to move forward as quickly as possible with solar lighting while remaining within the existing budget, the solar streetlights will not include GridShift Connect which is an additional application that would allow for staff to monitor the functionality of the light offsite (e.g., know when lights are turned on and off based on their normal cycle; dim/control lights; increase output within the light’s wattage capacity, etc.) to preemptively and more efficiently respond to outages.

GridShift Connect is estimated to cost approximately $1,900 per streetlight and can be explored as an added feature in the future, pending additional funding.

Additionally, to save the City on contractor mark-up, all materials purchased will be owner- furnished.

Installation is estimated to cost $130,000, however, this amount may fluctuate based on the informal bid results. To move forward expeditiously with the installation of solar lighting and at a lower expense, staff plan to provide field and administrative support to keep installation costs down. Bids will be structured so that installation costs are on a per unit basis and the costs can be controlled.

To purchase the solar streetlights for Phase 1, staff recommends a resolution authorizing the City Manager to make the purchase in an amount not to exceed $686,000. 84 of 145
Honorable Mayor and Members of the City Council
July 23, 2024

Page 4 of 6 ends

After appropriation of funds, the City plans to purchase the solar streetlights directly from the vendor and enter into a contract with the lowest responsive and responsible bidder for installation.

Maintenance Costs
As mentioned above, the solar streetlights include a five-year warranty. After the warranty period, maintenance costs (battery replacement, light replacement, and labor) are estimated at $180,000 every five years. Maintenance costs per light are estimated to be higher than the City’s current AC-powered lighting, however, the City will save on PG&E costs with the transition to solar.

Budget Summary
Table 1 below shows the one-time and ongoing budget needed for Phase 1.

Table 1: Solar Street Light Cost
Line-Item Cost Estimate
One-Time Capital Expenses
Purchase and installation $816,000
Ongoing Costs
GridShift Connect (every 5 years) – Service
enhancement
$300,000
Maintenance (every 5 years) $180,000
Subtotal Ongoing Costs (every 5 years) $480,000
TOTAL COST OVER 20 YEARS1 $2.6 million

1.Present value including one-time capital expense, GridShift Connect for 20 years, and maintenance costs for 15 years after the conclusion of the initial 5-year warranty period ($816,000 + 4x$300,000 + 3x$180,000).

A sustainable funding source (or sources) will need to be identified to support the near $500,000 in additional ongoing maintenance costs every 5 years referenced in Table 1 after the initial investment of $816,000 towards purchase and installation. Staff continue to explore other possible grant opportunities that can be used towards converting other R.O. circuits including ongoing maintenance, in addition to financing structures such as low interest loans with the California Infrastructure and Economic Development Bank as well as assessing the potential of Lighting and Landscaping Districts or Community Facilities Districts.

Peninsula Clean Energy Member Agency Energy Grant
Since FY2020-21, the City has included the Regulated Output (R.O.) Streetlight Replacement Project (#60035) as one of its priority Streets projects in the City’s Capital Improvement Program budget, investing General Fund Capital Reserve funds into the design phase of this project. The design funds have allowed the City to determine the permanent repair described above and fund the design; however, additional funds are needed to move forward with construction.

In Spring 2024, the City successfully applied for Member Agency Energy Grant funding through Peninsula Clean Energy (PCE), requesting $506,409, which is the maximum amount that the City is eligible to obtain, to partially fund Phase 1 of the R.O. Streetlight Replacement Project. 85 of 145
Honorable Mayor and Members of the City Council
July 23, 2024

Page 5 of 6 ends

Department of Energy, Energy Efficiency Conservation Block Grant In Spring 2024, the City applied for Energy Efficiency Conservation Block Grant (EECBG) funding through the Department of Energy requesting $76,430 to partially fund Phase 1 of the R.O. Streetlight Replacement Project.

Because EECBG funding is pre-determined and non-competitive, the City anticipates receiving the funds in Fall/Winter 2024. In anticipation of this award, staff is requesting acceptance and appropriate of the grant funds and authorization for the City Manager to execute any funding agreements in advance of the official award.

FISCAL IMPACT:

The total budget needed for Phase 1 is $816,000, which is being funded by: $506,409 in PCE Member Agency Energy Grant funding, an anticipated $76,430 in grant funding from the Department of Energy’s EECBG Program, and $233,161 from the funding that is currently available for CIP Project #60035: Regulated Output (R.O.) Streetlight Replacement Project.

On-going maintenance costs (battery replacement, light replacement, and labor) are estimated at $180,000 every five years and GridShift Connect service enhancement is estimated at $300,000 every five years.

ENVIRONMENTAL IMPACT:

RECOMMENDATION:

Adopt a Resolution:
• Accepting and Appropriating Peninsula Clean Energy Member Agency Energy Grant Funding and Authorizing the City Manager to Execute any Funding Agreements with Peninsula Clean Energy Authority in the Amount of $506,409 for Phase 1 of the Regulated Output (R.O.) Streetlight Replacement Project (CIP #60035) • Accepting and Appropriating Department of Energy, Energy Efficiency Conservation Block Grant Funding and Authorizing the City Manager to Execute any Funding Agreements with the Department of Energy in the Amount of $76,430, When Received, for Phase 1 of the Regulated Output (R.O.) Streetlight Replacement Project (CIP #60035) • Authorizing the City Manager to Purchase the Solar Streetlights in an Amount Not to Exceed $686,000
• Determining the Project is Exempt Under the California Environmental Quality Act ALTERNATIVES:

1. Do not adopt the resolution to receive and appropriate funding for the above-referenced project and seek alternative funding sources.

2. Do not proceed with further plans for implementation for the above-referenced project. 86 of 145
Honorable Mayor and Members of the City Council
July 23, 2024

Page 6 of 6 ends

ATTACHMENTS:

1. Resolution

2. CIP Sheet
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RESOLUTION NO. 2024 - ___

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

ACCEPTING AND APPROPRIATING PENINSULA CLEAN ENERGY MEMBER

AGENCY ENERGY GRANT FUNDING AND AUTHORIZING THE CITY MANAGER

TO EXECUTE ANY FUNDING AGREEMENTS WITH PENINSULA CLEAN ENERGY AUTHORITY IN THE AMOUNT OF $506,409 FOR PHASE 1 OF THE REGULATED OUTPUT (R.O.) STREETLIGHT REPLACEMENT PROJECT (CIP #60035);

ACCEPTING AND APPROPRIATING DEPARTMENT OF ENERGY, ENERGY

EFFICIENCY CONSERVATION BLOCK GRANT FUNDING AND AUTHORIZING THE

CITY MANAGER TO EXECUTE ANY FUNDING AGREEMENTS WITH THE DEPARTMENT OF ENERGY IN THE AMOUNT OF $76,430, WHEN RECEIVED, FOR PHASE 1 OF THE REGULATED OUTPUT (R.O.) STREETLIGHT REPLACEMENT PROJECT (CIP #60035); AUTHORIZING THE CITY MANAGER TO PURCHASE THE SOLAR STREETLIGHTS IN AN AMOUNT NOT TO EXCEED $686,000; AND

DETERMINING THE PROJECT IS EXEMPT UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, since FY2020-21, the City has included the Regulated Output (R.O.) Streetlight Replacement Project (#60035) as one of its priority Streets projects in the City’s Capital Improvement Program budget;
WHEREAS, the now-outdated and inefficient R.O. systems have experienced an increasing frequency of failures, leading to both short and prolonged streetlight outages across multiple locations, with recent months-long streetlight outages in the Rollingwood and Crestmoor neighborhoods;
WHEREAS, after extensive analyses, the City found a path toward a permanent repair, and in November 2023, San Bruno’s City Council provided feedback to City staff to convert all R.O. circuits to solar power streetlights; WHEREAS, the project budget funded design and was insufficient to fund construction;
WHEREAS, staff have developed a phased approach for construction beginning with Phase 1, which addresses the streetlights in the Rollingwood and Crestmoor neighborhoods;
WHEREAS, the City of San Bruno successfully applied to Member Agency Energy Grant funding through Peninsula Clean Energy, requesting $506,409 to partially fund Phase 1; and
WHEREAS, the City of San Bruno anticipates receiving $76,430 in Energy Efficiency Conservation Block Grant funding through the Department of Energy, to partially fund Phase 1.
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ATTACHMENT 1
2 2
5 5
7 NOW, THEREFORE, BE IT RESOLVED that the City Council hereby:
1) Accepts and Appropriates Peninsula Clean Energy Member Agency Energy Grant Funding and Authorizes the City Manager to Execute any Funding Agreements with Peninsula Clean Energy Authority in the Amount of $506,409 for Phase 1 of the Regulated Output (RO) Streetlight Replacement Project (CIP #60035), including the agreement attached hereto as Exhibit A, which the City Council hereby approves in substantial form, with such changes deemed necessary or useful by the City Manager,
2) Accepts and Appropriates Department of Energy, Energy Efficiency Conservation Block Grant Funding and Authorizes the City Manager to Execute any Funding Agreements with the Department of Energy in the Amount of $76,430, When Received, for Phase 1 of the Regulated Output (RO) Streetlight Replacement Project (CIP #60035),
3) Authorizes the City Manager to Purchase the Solar Streetlights in an Amount Not to Exceed $686,000, and
4) 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 July 23, 2024, by the following vote:

AYES:

NOES:

ABSENT:

Lupita Huerta, City Clerk
Exhibit A: Agreement Between The Peninsula Clean Energy Authority And City Of San Bruno For Member Agency Energy Grant Program
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AGREEMENT BETWEEN THE PENINSULA CLEAN ENERGY AUTHORITY AND CITY OF SAN BRUNO for MEMBER AGENCY ENERGY GRANT PROGRAM T
his Agreement is entered into this 23 day of July, 2024, by and between the Peninsula Clean Energy Authority , a joint powers authority of the state of California, hereinafter called “PCEA,” and City of San Bruno, hereinafter called “Grantee.” * * *

1. E xhibits and Attachments
The following exhibits and attachments are attached to this Agreement and incorporated into this Agreement by this reference:

Exhibit A—Project Description
Exhibit B—Grant Distribution

2. G
rant Process
In consideration of the payments set forth in this Agreement and in Exhibit B, Grantee shall implement the Project in accordance with the terms, conditions, and specifications set forth in this Agreement and in Exhibit A.

3. G rant Distribution
In consideration of the Project to be implemented by Grantee in accordance with all terms, conditions, and specifications set forth in this Agreement and in Exhibit A, PCEA shall make a grant payment to Grantee in the manner specified in Exhibit B. PCEA r eserves the right to withhold final grant payment if PCEA determines that the quantity or quality of the work performed by Grantee is unacceptable or does not meet the requirements of Exhibit B. In no event shall PCEA’s total fiscal obligation under this Agreement exceed Five hundred and six thousand, four hundred and nine dollars ($506,409). In the event that the Project described by Exhibit A does not move forward or is terminated for any reason, Grantee agrees to return any unused grant funds associated with approved project.

4. T
erm
Subject to compliance with all terms and conditions, the term of this Agreement shall be from July 23, 2024, through July 22, 2026.

5. R elationship of Parties
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ATTACHMENT 1, Exhibit A
Grantee agrees and understands that Grantee is not an employee of PCEA and that neither Grantee nor its employees acquire any of the rights, privileges, powers, or advantages of PCEA employees.

6. H old Harmless
a. General Hold Harmless
Grantee shall indemnify and save harmless PCEA and its officers, agents, employees, and servants from all claims, suits, or actions of every name, kind, and description resulting from this Agreement, the performance of any work or services required of Grantee under this Agreement, or payments made pursuant to this Agreement brought for, or on account of, any of the following:
(A) injuries to or death of any person, including Grantee or its employees/officers/agents;
(B) damage to any property of any kind whatsoever and to whomsoever belonging; (C) any sanctions, penalties, or claims of damages resulting from Grantee’s failure to comply, if applicable, with the requirements set forth in the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and all Federal regulations promulgated thereunder, as amended; or
(D) any other loss or cost, including but not limited to that caused by the concurrent active or passive negligence of PCEA and/or its officers, agents, employees, or servants. However, Grantee’s duty to indemnify and save harmless under this Section shall not apply to injuries or damage for which PCEA has been found in a court of competent jurisdiction to be solely liable by reason of its own negligence or willful misconduct.

The duty of Grantee to indemnify and save harmless as set forth by this Section shall include the duty to defend as set forth in Section 2778 of the California Civil Code.

7. P
ayment of Permits/Licenses
Grantee bears responsibility to obtain any license, permit, or approval required from any agency for work/services to be performed under this Agreement at Grantee’s own expense prior to commencement of said work/services. Failure to do so will result in forfeit of any right to compensation under this Agreement.

8. I nsurance
PCEA shall not be responsible for the provision of any insurance policy on behalf of the Grantee.
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The parties understand and agree that Grantee shall not commence work using the grant funds without insurance coverage appropriate to its specific project and as reviewed by Grantee’s own legal counsel and/or Risk Manager.

9. C
ompliance With Laws
The Project to be performed by Grantee pursuant to this Agreement shall be performed in accordance with all applicable Federal, State, County, and municipal laws, ordinances, and regulations, including but not limited to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Federal Regulations promulgated thereunder, as amended (if applicable), the Business Associate requirements set forth in Attachment H (if attached), the Americans with Disabilities Act of 1990, as amended, and Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination on the basis of disability in programs and activities receiving any Federal or County financial assistance. The Project shall also be performed in accordance with all applicable ordinances and regulations, including but not limited to appropriate licensure, certification regulations, provisions pertaining to confidentiality of records, and applicable quality assurance regulations. In the event of a conflict between the terms of this Agreement and any applicable State, Federal, County, or municipal law or regulation, the requirements of the applicable law or regulation will take precedence over the requirements set forth in this Agreement.

Grantee shall be timely and accurately complete, sign, and submit all necessary documentation of compliance.

10. R
etention of Records; Right to Monitor and Audit
(a) Grantee shall maintain all required records relating to the Project under this Agreement for three (3) years after PCEA makes final payment and all other pending matters are closed, and Grantee shall be subject to the examination and/or audit by PCEA, a Federal grantor agency, and the State of California. (b) Grantee shall comply with all program and fiscal reporting requirements set forth by applicable Federal, State, and local agencies and as required by PCEA. (c) Grantee agrees upon reasonable notice to provide to PCEA, to any Federal or State department having monitoring or review authority, to PCEA ’s authorized representative, and/or to any of their respective audit agencies access to and the right to examine all records and documents necessary to determine compliance with relevant Federal, State, and local statutes, rules, and regulations, to deter mine compliance with this Agreement, and to evaluate the quality, appropriateness, and timeliness of the Project work.

11. M erger Clause; Amendments
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This Agreement, including the Exhibits and Attachments attached to this Agreement and incorporated by reference, constitutes the sole Agreement of the parties to this Agreement and correctly states the rights, duties, and obligations of each party as of this document’s date. In the event that any term, condition, provision, requirement, or specification set forth in the body of this Agreement conflicts with or is inconsistent with any term, condition, provision, requirement, or specification in any Exhibit and/or Attachment to this Agreement, the provisions of the body of the Agreement shall prevail.

Any prior agreement, promises, negotiations, or representations between the parties not expressly stated in this document are not binding. All subsequent modifications or amendments shall be in writing and signed by the parties.

12. C
ontrolling Law; Venue
The validity of this Agreement and of its terms, the rights and duties of the parties under this Agreement, the interpretation of this Agreement, the performance of this Agreement, and any other dispute of any nature arising out of this Agreement shall be governed by the laws of the State of California without regard to its choice of law or conflict of law rules.

Any dispute arising out of this Agreement shall be venued either in the San Mateo County Superior Court or in the United States District Court for the Northern District of California.

13. N
otices
Any notice, request, demand, or other communication required or permitted under this Agreement shall be deemed to be properly given when both: (1) transmitted via facsimile to the telephone number listed below or transmitted via email to the email address listed below; and (2) sent to the physical address listed below by either being deposited in the United States mail, postage prepaid, or deposited for overnight delivery, charges prepaid, with an established overnight courier that provides a tracking number showing confirmation of receipt.

In the case of PCEA, to:

Name/Title: Shawn Marshall, Chief Executive Officer
Address: 2075 Woodside Road, Redwood City, CA 94061
Telephone: 650-474-5002
Email: smarshall @peninsulacleanenergy.com
In the case of Grantee, to:

Name/Title: Alex D. McIntyre,
Address: 567 El Camino Real, San Bruno, CA 94066
Telephone: (650) 616-7056
Email: [email protected]
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14. Electronic Signature
PCEA and Grantee wish to permit this Agreement , and future documents executed pursuant to this Agreement, to be digitally signed in accordance with California law . Any party that agrees to allow digital signature of this Agreement may revoke such agreement at any time in relation to all future documents by providing notice pursuant to this Agreement.

15. N o Recourse Against PCEA’s Member Agencies
Grantee acknowledges and agrees that PCEA is a Joint Powers Authority, which is a public agency separate and distinct from its member agencies. All debts, liabilities, or obligations undertaken by PCEA in connection with this Agreement are undertaken solely by PCEA and are not debts, liabilities, or obligations of its member agencies. Grantee waives any recourse against PCEA’s member agencies.
*
* *
In agreement with this Agreement’s terms, the parties, by their duly authorized representatives, affix their respective signatures:

PENINSULA CLEAN ENERGY

AUTHORITY
___
_______________________________
Chief Executive Officer, Peninsula Clean
Energy Authority
Date:__________________________
City of San Bruno
___
_______________________________
Title: ______________________________
Date: ________________________
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Exhibit A
In consideration of the payments set forth in Exhibit B, Grantee shall execute the following project:

S
ee attached proposal as submitted by
Submittal Date: April 25, 2024
Point of contact name: Ana Morales
Point of contact role/title: Management Analyst
Point of contact email: [email protected]
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Exhibit B
In consideration of the Project implemented by Grantee described in Exhibit A and subject to the terms of the Agreement, PCEA shall pay Grantee based on the following fee schedule and terms:

Eligible Project Expenses
Expenses funded under this agreement must be in alignment with PCEA’s mission and the goals of its Strategic Plan to decarbonize the service territory. Expense must be tangible infrastructure associated with electric power.

E
xamples of eligible projects:

1. Installation of EV charging infrastructure for fleet or public use

2. Building heat pump systems in government facilities

3. Incentive programs for electrifying landscape equipment, etc.

4. Installation of solar and storage systems

5. Upgrades to efficient street lights
I
neligible projects and costs:

1. Purchase of equipment using fossil fuels

2. Staff time associated with operations and other administrative costs

3. Indirect decarbonization education or general transportation infrastructure such as workshops and bike lanes

4. Production of reports or plans
Payments

1. First payment: 253,204. Upon execution of this contract

2. S
econd payment: 253,205. Upon receipt of project invoices for Eligible Project Expenses of $506,409 or more. Send materials to
[email protected]. PCEA reserves the right to review the submitted invoices and Grantee must respond to reasonable requests for clarifications on the information provided. PCEA reserves, at its sole discretion, the right to approve and/or reject project invoices from Grantee.

Payment Method
Grantee EFT/ACH details for transfers:
o [account name] City of San Bruno
o [financial institution] Tri Counties Bank
o [routing number] 121135045
o [account number] 432000438
o [account type] Checking
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1 Project Description

1. Overview and Description
The City of San Bruno (City) is located on the San Francisco Peninsula in San Mateo County, approximately 12 miles south of San Francisco, CA. The City owns and operates seven Regulated Output (R.O.) streetlight circuits (see Image 1), totaling 269 streetlights. These R.O. systems reside generally on the western part of town. These systems, including lighting, electrical wires, conduits, and poles, were installed approximately 75 years ago and have significantly exceeded their expected operational lifespans. Over the past two decades, these now-obsolete R.O. systems have experienced an increasing frequency of failures, leading to both short and prolonged streetlight outages across multiple locations.

System Drawbacks
R.O. streetlight systems, once widely used, are now considered outdated due to several reasons:
• System Failure: Once an R.O. circuit fails, all the affected streetlights become non-functional until the failure in the wiring system can be manually identified and repaired. • Complex and Manual Repair Process: R.O. systems use transformers that rely on a complex system of weights, magnets, and coils to regulate voltage. These components are no longer manufactured, requiring manual refurbishment, which is time-consuming and costly. Additionally, the City has experienced situations in which PG&E technicians who are assigned to fix an R.O. system are neither familiar nor experienced with them.
• Aging Infrastructure: Installed decades ago, these systems suffer from severe wear and tear, including deteriorated insulation and corroded conduits, leading to frequent failures. • Safety Hazards: High voltage in R.O. systems pose significant risks, such as electric shocks and fires, making them dangerous for both residents and maintenance workers.

Other inherent drawbacks of R.O. systems include:

Map #1: Base Map of Regulated Output (RO) Areas

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2 • Fault Identification: Troubleshooting and maintenance of the light system is more challenging with single-circuit lighting. A failure in the power source or the electrical wires can cause an entire string of lights to malfunction, akin to holiday lights. This requires an extensive diagnostics effort leading to increased down time.
• Lack of Flexibility: R.O. lighting does not cater to different preferences or specific lighting requirements in various lighting situations.
• Lighting Pollution Concerns: Lighting levels can be set too high for some areas without a way of adjusting for special needs.
• Limited Adaptability: R.O. lighting does not accommodate changing environmental conditions or varying needs. For instance, special events may require brighter or dimmer lighting that deviates from the regulated output and such adjustments would not be achievable.

System Failures
Frequent failures in these R.O. circuits have resulted in significant service disruptions over the lifespan of the system. In the past six years alone the City has experienced more than two dozen sustained outages throughout the City that required significant repairs, with the most recent outages in two different neighborhoods beginning in October 2023 and February 2024, in the Crestmoor and Rollingwood neighborhoods, respectively. The emergency repairs at these two outages have resulted in 16 failures of the system, with each failure further weakening the system. Each time the system is repaired and powered back on, the fixes last less than a day. Everytime there is a system failure there is a potential hazard of unsafe conditions throughout the neighborhood.

Permanent Solution
After extensive analyses, the City found a path towards a permanent solution. In November 2023, San Bruno’s City Council provided feedback to City staff to convert all R.O. circuits to solar power streetlights.

Efforts are now focused on finalizing the design phase. The design efforts include testing and identifying the appropriate solar streetlight for the San Bruno climate, a photometric analysis to help determine the ideal locations where streetlights should be placed to obtain optimal coverage of street segments, and a solar analysis to help determine if the streetlight location will obtain adequate sunlight to power the streetlight throughout the night.

Phasing Plan
The scope of work for the R.O. Streetlight Replacement Project includes the design and construction of converting the City’s R.O. streetlight system to solar-powered streetlights. Due to budgetary constraints, the City has developed a phasing plan to roll out the solar streetlights, beginning with Phase 1 which addresses the recent months-long outages in the Crestmoor and Rollingwood neighborhoods. As additional funding becomes available, Phase 2 will focus on the remaining R.O. circuits in the City.

The project is currently in the design phase. Please see 4. Timeline below for more details.

Funding through Peninsula Clean Energy’s (PCE) Member Agency Grants Program will be applied towards the construction phase of the R.O. Streetlight Replacement Project.

2. Outcomes and Benefits

Approximately 2,000 San Bruno residences have been affected by the R.O. streetlight outages in the Crestmoor and Rollingwood neighborhoods. The City has dedicated significant City resources over the last

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3 several months towards these outages, however, the existing R.O. system presents significant safety risks, ongoing financial costs, and resource strains, and has reached a point where it is no longer fixable, requiring the City to now focus on our identified permanent solution with solar streetlighting.

PCE funding will, therefore, allow the City to implement Phase 1 of the R.O. Streetlight Project and directly improve the quality of life of residents in the Crestmoor and Rollingwood neighborhood by providing a safer , more reliable, and sustainable street lighting solution.

Measurable outcome:
1) Purchase and install a minimum of 70 solar streetlights in the Crestmoor and Rollingwood neighborhoods.

3. Budget

Phase 1 Budget:

Solar Light Installation $800,000

4. Timeline

Design To be completed Fall 2024
Construction Fall 2024 – Summer 2026

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PROJECT #: 60035 Total Project Budget: 500,000$
DEPARTMENT: Public Works

FUNDING SOURCES
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
Total
FY2023-28
Budget
General Fund Capital Reserve 500,000$ 432,909$ -$ 432,909$ -$ -$ -$ -$ 432,909$ Total 500,000$ 432,909$ -$ 432,909$
-$ -$
-$
-$
432,909$

PROJECT APPROPRIATIONS
Prior
Appropriations
Estimated
Carryover New Request
Total
Appropriations FY2024-25 FY2025-26 FY2026-27 FY2027-28
FY2023-28
Budget
Design 500,000$ 432,909$ -$ 432,909$ -$ -$ -$ -$ 432,909$ Construction - - - - - - - - - Total 500,000$ 432,909$ -$ 432,909$
-$ -$
-$
-$
432,909$

Project Details
Initial Funding Year FY2020-21
Target Completion Year TBD
Expended as of July 1, 2021 $67,091
FY2023-24
Regulated Output Streetlight Replacement Project
Streets Capital
Streetlights
Project Description: On December 14, 2021, the City began experiencing streetlight outages within several neighborhoods which are on a Regulated Output (RO) circuit that is powered by a transformer, which sends a higher voltage to all the streetlights within the circuit. The City currently has 294 streetlights on eight (8) RO circuits. Due to the condition and service life of the antiquated RO system and the lack of any manufacturers for the transformer, it is in the best interest of the residents and the city to take steps towards moving to a parallel circuit system.

The scope of work for the Regulated Output Streetlight Replacement Project – Design Phase involves designing for the replacement of the existing RO circuit to a parallel circuit, assessment and replacement of defective streetlight poles within the RO circuit, coordination with PG&E for construction of new power sources, developing specifications for construction bidding, and providing support during the bidding and construction process. 385
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ATTACHMENT 2
City Council
Agenda Item Staff
Report

CITY OF SAN BRUNO
DATE: July 23, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Jennifer Dianos, Interim Human Resources Director SUBJECT: Consider Adoption of an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Amending Chapter 2.36 (Personnel System) of the San Bruno Municipal Code Regarding Personnel Regulations”
BACKGROUND:

On May 25, 2021, the City Council adopted Ordinance No. 1899 to amend San Bruno Municipal Code Section 2.36 (Personnel System). The 2021 staff report highlighted changes in the Ordinance to include the removal of references to the Personnel Board, the clarification of the City Manager as Personnel Officer and authorized to develop and adopt personnel rules, and other minor terminology updates.

On July 9, 2024, staff presented on the intended changes and need for amendment to Municipal Code Section 2.36. This update, as proposed, is intended to further clarify the updates that were implemented in 2021 to be consistent with the Municipal Code verbiage. The current version of the Personnel Rules and Regulations dates back to 1958 with independent amendments brought to Council for approval periodically throughout the subsequent decades and most recently in 2007 and 2021 respectively.

At the same meeting, the City Council also adopted a pilot program for an Unrepresented Compensation Plan. The changes in the ordinance reflect the unrepresented positions which are exempt from the competitive service section of the Municipal Code.

On July 9, 2024, the City Council voted unanimously to introduce, read by title only and waive further reading of the ordinance amending the code section.

DISCUSSION:

The purpose of this item is for Council consideration of an ordinance amending Chapter 2.36 of the City of San Bruno Municipal Code governing the City’s personnel system to accurately reflect the 2021 transition, and to update the staff positions that are exempt from section

2.36.020 titled “Applicability of chapter - Competitive service”. These proposed updates are noted in strikeout/underline form of the attached ordinance, and highlighted as follows:
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Item 6i.
2 Honorable Mayor and Members of the City
Council
July 23, 2024

Page 2 of 2 ends

• 2.36.020: Insert provisional employees in section 4; remove City Manager’s Office positions in section 5; remove the City Attorney’s Office positions in section 6; and, amend the wording to remove City Manager’s Office and replace with unrepresented group in section 7.
• 2.36.050: Remove duplicative wording in sections B and C to clarify that City Manager, as Personnel Officer, is authorized to develop and adopt personnel rules. (this reference is also in sections 2.36.030 and 2.36.170)
These amendments do not change the City Council’s authority to approve the Compensation Plan (salary schedule) or Budget Staffing Plan (budget allocations).

FISCAL IMPACT:

None.

ALTERNATIVES:

1. Decline to adopt the ordinance. Staff does not recommend this approach because of the reasons explaining the need for these amendments in this report; or

2. Provide additional direction to staff regarding the provisions of the ordinance. Substantive modifications would require the ordinance to be re-introduced at a future City Council meeting RECOMMENDATION:

Adopt an Ordinance Entitled “An Ordinance of the City Council of the City of San Bruno Amending Chapter 2.36 (Personnel System) of the San Bruno Municipal Code Regarding Personnel Regulations”
ATTACHMENTS:

1. Ordinance

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2 ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO AMENDING CHAPTER 2.36 (PERSONNEL SYSTEM) OF THE SAN BRUNO MUNICIPAL CODE

REGARDING PERSONNEL REGULATIONS
The City Council of the City of the City of San Bruno ORDAINS as follows:

SECTION 1. Section 2.36.020 (Applicability of chapter- Competitive service) of Chapter

2.36 (Personnel System) is hereby amended to read as follows (added language is shown with underline and deleted language is shown with strikethrough):
“2.36.020 Applicability of chapter - Competitive service.

A. The provisions of this chapter shall apply to all offices, positions and employments in the service of the city, except the following:

1. Elective officers; provided, that, in the event the people of the city shall, at a general municipal election or special election held for that purpose, elect to change the status of any one or more elective officers of the city to that of appointive officers, then at the expiration of the term of office of any such officer, the person holding the office at the time of the expiration of such term, providing that the elective officer shall have served in such position for a period of at least six months continuously immediately prior to the expiration of such term of office, shall assume regular status in the competitive service without preliminary examination or working tests and shall thereafter be subject in all respects to the provisions of this chapter;

2. Positions on appointive boards, commissions and committees;

3. All employees whose compensation is not paid by the city;

4. Temporary employees, seasonal employees, provisional employees and others that are not regular city employees (e.g., nonpermanent part-time workers);

5. The city manager; and, assistant city manager, executive assistant, administrative assistant, clerical personnel and/or other positions assigned to the city manager’s office;

6. The city attorney, any assistant, paralegal, legal secretary, law clerk or clerical personnel;

67. All employees assigned to the city’s personnel function in the city manager’s office or as otherwise designated in the unrepresented group.

B. Offices, positions and employments not exempted by subsection A of this section, shall constitute the competitive service of the city. (Ord. 1874 § 3, 2019; Ord. 1630 § 2, 2000)”
SECTION 2. Section 2.36.050 (Personnel officer - Powers and duties) of Chapter 2.36 (Personnel System) is hereby amended to read as follows (added language is shown with underline and deleted language is shown with strikethrough):
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2 “2.36.050 Personnel officer - Powers and duties. The powers and duties of the personnel officer shall be to as follows:

A. Administer administer all the provisions of this chapter and of the personnel system rules and regulations not specifically reserved to the city council; B. Under the direction of the city council, supervise the preparation of a budget staffing plan, including class specifications, and revisions of the plan; the plan, and any revisions thereof, shall become effective upon approval by the city council; and C. Under the direction of the city council, supervise the preparation of a plan of compensation, and revisions thereof, covering all classifications in the competitive service; the plan and any revisions thereof shall become effective upon approval by the city council. (Ord. 1874 § 3, 2019; Ord. 1630 § 2, 2000)” SECTION 3. California Environmental Quality Act (CEQA). This ordinance is not a “project” pursuant to Section 21065 of the Public Resource Code because it does not change the existing regulatory scheme.

SECTION 4. Severability. If any provision, clause, sentence or paragraph of this chapter or the application thereof to any person or circumstances shall be held invalid, such invalidity shall not affect the other provisions of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

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

Rico E. Medina, Mayor
ATTEST:

Lupita Huerta, City Clerk
APPROVED AS TO FORM:

Trisha Ortiz, City Attorney

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2 --oOo--
I hereby certify that the foregoing Ordinance No.
was introduced at a regular meeting of the San Bruno City Council on July 9, 2024 and adopted by the San Bruno City Council at a regular meeting on July 23, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

RECUSED: Councilmembers:

ABSENT: Councilmembers:

Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Darcy Smith, Assistant City Manager
SUBJECT: Consider Adoption of a Resolution Declaring Pursuant to Government Code Sections 54221 (b) and 54221 (f)(1)(B) that Certain Real Property Owned by the City Located at 618 San Mateo Avenue in the City of San Bruno (APN 020-131-240) is Exempt Surplus Land and Not Necessary for the City’s Use, Finding that Such Declaration is Exempt from Environmental Review Under the California Environmental Quality Act, and Taking Related Actions
BACKGROUND:

The City is the owner in fee simple of a parcel located at 618 San Mateo Avenue (the “Parcel”).

The Parcel is approximately 2,269 square feet (.05 acre), improved with a storefront building of approximately the same size which was built in 1942, and located in the downtown area in a mid-block location. The building on the Parcel was occupied by the City’s Community Services Department until their move earlier this month to the newly constructed recreation and aquatic center. The building is now vacant. The City has received an offer from the adjacent property owners, Artichoke Joe’s to purchase the Parcel. Artichoke Joe’s owns multiple properties on this block, including the properties directly to the west and north of the Parcel at 659 Huntington Avenue and 624, 626, 628, 634 and 636 San Mateo Avenue.

DISCUSSION:

Under the Surplus Land Act, Government Code Sections 54220-54233 (the “Act”), when a local agency intends to sell land, it must take formal action in a regular public meeting declaring that the land is surplus land or exempt surplus land and not necessary for the City’s use before taking any other action to sell the land.

Under the Act, land is necessary for a local agency’s use if the land is being used, or is planned to be used, pursuant to a written plan adopted by the governing board for agency work or operations. The Parcel is vacant and no longer being used by the City’s Community Services Department, which moved its operations to the newly constructed recreation and aquatic center.

City staff has evaluated the Parcel for its potential to be used for other City municipal offices and operations and has determined that the Parcel is not suitable for the City’s use because the small size of the building (2,269 square feet) and lack of on-site parking.

Under the Act, certain surplus land is exempt surplus land. A local agency may sell exempt surplus land without further regard to the requirements of the Act if the local agency notifies the 106 of 145
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Honorable Mayor and Members of the City Council
July 23, 2024

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7 California Department of Housing and Community Development (“HCD”) that it has declared the land exempt surplus land at least 30 days prior to disposing of the exempt surplus land.

Government Code Section 54221(f)(1)(B) provides that “exempt surplus land” includes land that is less than one-half acre in size and not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes. The Parcel qualifies for this exemption because it is less than one-half acre in size and is not contiguous to land owned by a state or local agency that is used for open-space or low- and moderate-income housing purposes.

FISCAL IMPACT:

There is no immediate fiscal impact associated with the adoption of the Resolution.

ENVIRONMENTAL IMPACT:

The Resolution has been reviewed with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”). The City Council’s declaration that the Parcel is exempt surplus land does not have the potential for creating a significant negative effect on the environment and therefore the adoption of the Resolution is exempt from further review under CEQA because it is not a project as defined in Section 150060(c)(3) of the State CEQA Guidelines.

RECOMMENDATION:

Adopt a Resolution Declaring Pursuant to Government Code Sections 54221 (b) and 54221 (f)(1)(B) that Certain Real Property Owned by the City Located at 618 San Mateo Avenue in the City of San Bruno (APN 020-131-240) is Exempt Surplus Land and Not Necessary for the City’s Use, Finding that Such Declaration is Exempt from Environmental Review Under the California Environmental Quality Act, and Taking Related Actions.

ALTERNATIVES:

Decline to introduce the resolution.

ATTACHMENTS:

1. Resolution

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RESOLUTION NO. 2024-____

A RESOLUTION DECLARING PURSUANT TO GOVERNMENT CODE
SECTIONS 54221(b) and 54221(f)(1)(B) THAT CERTAIN REAL
PROPERTY OWNED BY THE CITY LOCATED AT 618 SAN MATEO
AVENUE IN THE CITY OF SAN BRUNO (APN 020-131-240) IS
EXEMPT SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S

USE, FINDING THAT SUCH DECLARATION IS EXEMPT FROM

ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT, AND TAKING RELATED ACTIONS
WHEREAS, the City of San Bruno (“City) is the owner in fee simple of a certain parcel of real property located in the City at 618 San Mateo Avenue and described in Exhibit “A”, attached hereto and made a part of hereof (the “Parcel”); and
WHEREAS, under Section 54221(b) of the Surplus Land Act, Government Code Sections 54220-54234 (the “Act”), surplus land is land owned in fee simple by the City for which the City Council takes formal action in a regular public meeting declaring the land is surplus and not necessary for the City’s use. The Act provides that land must be declared either surplus land or exempt surplus land before the City may take any action to dispose of it consistent with the City’s policies or procedures; and
WHEREAS, under the Act, land is necessary for the City’s use if the land is being used, or is planned to be used pursuant to a written plan adopted by the City Council, for City work or operations; and
WHEREAS, the Parcel is approximately 2,269 square feet (.05 acre), improved with a storefront building of approximately the same size which was built in 1942, and located in the downtown area in a mid-block location. There is no parking and pedestrian ingress and egress is available from San Mateo Avenue via the storefront entrance; and WHEREAS, the building is vacant following City’s Community Services Department relocating all operations to the newly constructed recreation and aquatic center; and WHEREAS, City staff has evaluated the Parcel for its potential to be used for other City municipal offices and operations and has determined that the Parcel is not suitable for the City’s use because the small size of the building (2,269 square feet) and lack of on-site parking; and WHEREAS, Government Code Section 54221(f)(1)(B) provides that “exempt surplus land” means surplus land that is less than one-half acre in size and not contiguous to land owned by a state or local agency that is used for open-space or low and moderate income housing purposes; and
WHEREAS, the Parcel is less than one-half acre in area and is not contiguous to land owned by a state or local agency that is used for open-space or low and moderate income housing purposes; and
WHEREAS, the City Council desires to declare that the Parcel is exempt surplus land pursuant to Government Code Sections 54221(b) and 54221(f)(1)(B) and not necessary for the City’s use; and
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WHEREAS, the Act provides that the City may dispose of property declared exempt surplus land without further regard to the requirements of the Act, except for the requirement to notify the California Department of Housing and Community Development (“HCD”) at least 30 days prior to disposition of the property.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Bruno as follows:

Section 1.The above recitals are true and correct and are a substantive part of this Resolution.

Section 2.Pursuant to Government Code Sections 54221(b) and 54221(f)(1)(B), the City Council hereby declares that the Parcel is exempt surplus land and not necessary for the City’s use.

Section 3. The City Council has reviewed this Resolution with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”). The City Council hereby finds that the City Council’s designation of the Parcel as exempt surplus land does not have the potential for creating a significant negative effect on the environment and therefore the adoption of this Resolution is exempt from further review under CEQA because it is not a project as defined in Section 150060(c)(3) of the State CEQA Guidelines.

Section 4. Staff of the City are hereby authorized and directed to provide a copy of this Resolution to HCD in the form and manner required by HCD at least 30 days prior to the disposition of the Parcel.

Section 5.The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed.

Section 6.The City Clerk shall certify to the adoption of this Resolution. ---oOo---
I hereby certify that foregoing Resolution No. 2024 - ______ was introduced and adopted by the San Bruno City Council at a regular meeting on July 23, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers
ABSENT: Councilmembers:

Lupita Huerta, City Clerk

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Exhibit A
The land referred to herein is situated in the State of California, County of San Mateo, City of San Bruno and described as follows:

Lot 24, Block Lettered "L", as designated on the Map Entitled "Map of Blocks "J, K, L, M, N, O, P & Q" First Addition to San Bruno Park, San Mateo Co., cal.", which map was filed in the Office of the recorder of the County of San Mateo, State of California, on February 11, 1905 in Book "A" of Maps at Page 7, and a copy entered into Book 3 of Maps at Page

54. Excepting therefrom that portion of land as described in the deed executed by City of San Bruno, a Municipal Corporation to Marelich Manufacturing Co. Inc., dated August 23, 1950 and recorded June 11, 1951 in Book 2083, Page 502, Official Records, Instrument No.41600-J, described as follows:

Beginning at the Southeasterly corner of said Lot 24, thence Westerly along the Southerly line of said Lot a distance of 3.17 feet, thence Northerly at right angles across said Lot 10 the Northeasterly corner thereof, thence Southeasterly along the Northeasterly line of said Lot 84 to the point of beginning containing 39.63 sq. Feet.

APN: 020-131-240

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Lupita Huerta, City Clerk
SUBJECT: Consider Introducing, Reading by Title Only, and Waiving Further Reading of an Ordinance Amending San Bruno Municipal Code Section

2.04.030 Regarding City Council Regular Meeting Location, Section

2.08.040 Regarding Planning Commission Regular Meeting Location, and Section 2.20.010 Regarding City Clerk Office Hours
BACKGROUND:

Proposed changes in City operations require amendments to the San Bruno Municipal Code.

Specifically, recent changes to the City Clerk staff workweek require a change in City Clerk office hours. In addition, plans to move the location of regular meetings for the City Council and for the Planning Commission to the newly constructed recreation and aquatics center require a change from the currently established location of the Senior Center. While the Senior Center has historically been a central location for civic engagement, the new recreation and aquatics center offers enhanced features and accessibility that align with the evolving needs of our community.

DISCUSSION:

City Clerk Office Hours
On July 9, 2024, the City Council approved a resolution establishing a 36 hour workweek, comprised of four nine-hour workdays, Monday through Thursday for the City’s unrepresented employees. The City Clerk and Deputy City Clerk positions are included in the unrepresented group.

It is thereby proposed to update San Bruno Municipal Code Section 2.20.020 to align with the council’s adoption of the above reference resolution so that the City Clerk office hours will be 8:00 am to 5:00 pm, except Fridays, Saturdays, Sundays and legal holidays.

City Council and Planning Commission Regular Meeting Location The City of San Bruno has experienced growth and development over the past decade, resulting in increased demand for municipal services and facilities. As part of our commitment to providing accessible and modern facilities for community engagement, the City has recently completed construction of the new recreation and aquatics center located at 251 City Park Way.

This facility boasts state-of-the-art amenities and ample space to accommodate various 111 of 145
Item 7a.

Honorable Mayor and Members of the City Council
July 23, 2024

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9 community gatherings and events.

City staff proposes relocating the City Council and Planning Commission meetings from the San Bruno Senior Center to the newly constructed recreation and aquatics center. This relocation aims to leverage the benefits of the new facility, including:

1. Modern Amenities: The recreation and aquatics center is equipped with modern audio- visual capabilities, which will enhance the quality of presentations and public access to meetings.

2. Accessibility: Situated in a central location and ADA-compliant facilities, the recreation and aquatics center ensures accessibility for all community members, including seniors and individuals with disabilities.

3. Community Focus: By utilizing the recreation and aquatics center, the City Council demonstrates its commitment to engaging with residents in a facility designed to promote health, recreation, and community cohesion.

The relocation of City Council and Planning Commission meetings to the recreation and aquatics center represents a proactive step towards aligning our municipal facilities with the needs and expectations of our growing community. Staff believes this move will foster greater community participation and contribute to the overall vibrancy of San Bruno. Staff are also consider moving the Parks and Recreation Commission meetings to the recreation and aquatics center; however, this would not require any amendments to the San Bruno Municipal Code but rather only updates to the Parks and Recreation Commission ByLaws, which would be considered separately by the City Council at a future meeting.

Implementation Plan:

1. Communication: Notify residents and stakeholders of the change through official city communications, website updates, and local media outlets.

2. Logistics: Coordinate with City staff and the recreation and aquatics center management to ensure seamless logistics for meeting setup and public access.

3. Feedback Mechanism: Establish a feedback mechanism to gather input from residents regarding their experience with the new meeting location and make adjustments as needed.

FISCAL IMPACT:

The proposed change to the City Clerk’s office hours is not expected to incur additional costs.

Operational adjustments will be made within existing budgetary constraints.

The relocation for City Council and Planning Commission meetings will incur additional costs involving routine operational expenses associated with venue occupancy and maintenance. The City has budgeted for these expenditures within existing appropriations.

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
July 23, 2024

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9 RECOMMENDATION:

Consider Introducing, Reading by Title Only and Waiving Further Reading of an Ordinances 1) Amending San Bruno Municipal Code Section 2.20.010 City Clerk Office and Office Hours from and San Bruno Municipal Code Section 2.04.030 City Council Regular Meetings – Place.

ALTERNATIVES:

1. Do not approve the ordinance, which would keep the City Clerk Office hours as is and keep the meeting locations at the Senior Center.

2. Approve the ordinance with changes that either (i) keep the City Clerk Office hours as is, or (ii) keep the meeting locations at the Senior Center.

ATTACHMENTS:

1. Ordinance

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ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN BRUNO AMENDING SECTION 2.04.030 REGARDING CITY COUNCIL
REGULAR MEETING LOCATION, SECTION 2.08.040 REGARDING

PLANNING COMMISSION REGULAR MEETING LOCATION, AND
SECTION 2.20.010 REGARDING CITY CLERK OFFICE HOURS
The City Council of the City of San Bruno ORDAINS as follows:

SECTION 1. Section 2.04.030 (Regular meetings - Place) of Chapter 2.04 (City Council) of Title 2 (Administration and Personnel) of the San Bruno Municipal Code is hereby amended to read as follows (deleted language is shown with strikethrough and added language is shown with underline):

The regular meetings shall be held in the interim council chambers at the Senior Center, 1555 Crystal Springs Road recreation and aquatics center, located at 251 City Park Way, San Bruno, or such other location designated by resolution of the council. If, by reason of fire, flood, earthquake or other emergency, it shall be unsafe to meet at said place, the meeting may be held for the duration of the emergency at such place as may be designated by the mayor or, in his or her absence, by the presiding officer of the council.

SECTION 2. Paragraph A of Section 2.08.030 (Meetings) of Chapter 2.08 (Planning Commission) of Title 2 (Administration and Personnel) of the San Bruno Municipal Code is hereby amended to read as follows (deleted language is shown with strikethrough and added language is shown with underline):

A. Regular meetings of the planning commission shall be on the third Tuesday of each month at seven p.m. If at any time any regular meeting day falls on a legal holiday, such regular meeting shall be held on the next business day if practical. The regular meetings shall be held in the San Bruno Senior Center recreation and aquatics center, located at 251 City Park Way, San Bruno, or alternative location as designated by the city council.

SECTION 3. Section 2.20.010 (Office and office hours) of Chapter 2.20 (City Clerk) of Title 2 (Administration and Personnel) of the San Bruno Municipal Code is hereby amended to read as follows (deleted language is shown with strikethrough and added language is shown with underline):

There shall be an office of the city clerk in the City Hall. Such office shall be open for the transaction of all city business between the hours of eight a.m. and five p.m. every calendar day except Fridays, Saturdays, Sundays, and legal holidays.

SECTION 4. The City Manager may determine, in his sole and absolute discretion, that the recreation and aquatics center, located at 251 City Park Way, San Bruno, is not yet suitable for public meetings. In such event, the regular meeting location for the City Council and for the Planning Commission will continue to be the Senior Center until such date determined by the City Manager.

SECTION 5. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional, invalid or ineffective by a court of competent 114 of 145
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jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance. The city council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional, invalid or ineffective.

SECTION 6. This ordinance shall take effect 30 days from and after the date of its adoption.

SECTION 7. The City Clerk is directed to cause publication of this ordinance as required by law.
__________________________________
Rico E. Medina, Mayor
ATTEST:
___________________________
Lupita Huerta, City Clerk
APPROVED AS TO FORM:
__________________________________
Trisha A. Ortiz, City Attorney
---oOo---
I hereby certify that foregoing Ordinance No. ____
was introduced at a regular meeting of the San Bruno City Council on ________, 2024 and adopted by the San Bruno City Council at a regular meeting on _______, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
__________________________________
Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
SUBJECT: Consider Adoption of an Uncodified Ordinance Ordering the Submission of a Proposition Incurring Bonded Indebtedness to the Qualified Voters of the City of San Bruno at the General Municipal Election to be held on November 5, 2024, for the Purpose of Financing the Cost of the Acquisition, Construction and Improvement of Certain Municipal Improvement Projects Constituting Public Infrastructure of the City BACKGROUND:

Consistent with the City Council’s Fiscal Year 2023-24 Strategic Initiatives to strengthen the City’s fiscal sustainability, City Council established a Ballot Measure Ad Hoc Committee (Salazar/Hamilton) to explore a potential the November 2024 general election ballot measure (“Ballot Measure”) authorizing issuance of General Obligation Bonds. Council received a recommendation from the Committee to consider a Ballot Measure and received results from the April 2024 Community Priorities Survey which indicates general support for investments in stormwater, streets, and fire station infrastructure. At their July 9, 2024, meeting, Council voted unanimously to take the first step necessary for a Ballot Measure by adopting a Resolution of Necessity (Resolution No. 2024-59) and the introduction and first reading of a Ballot Measure Ordinance.

DISCUSSION:

The purpose of this item is for the City Council to consider the final adoption of the Ballot Measure Ordinance (Attachment 1). At their July 9, 2024, meeting, the Council voted unanimously to Introduce an uncodified Ordinance that identifies the objects and purposes of the General Obligation Bonds, the estimated cost of the improvements to be financed, accountability requirements applicable to the Bonds, and related matters.

The second reading of the Ordinance is on the “Conduct of Business” portion of the Council’s agenda immediately before the final action necessary to place a measure on the ballot. As the Council is aware, second readings of ordinances usually take place on the consent calendar portion of the agenda, but in light of the importance of this Ordinance, it was determined that it should be placed on the Conduct of Business section of the agenda.

FISCAL IMPACT:

There is no fiscal impact.
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Item 7b.

Honorable Mayor and Members of the City Council
July 23, 2024

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ENVIRONMENTAL IMPACT:

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

RECOMMENDATION:

Adopt an Uncodified Ordinance Ordering the Submission of a Proposition Incurring Bonded Indebtedness to the Qualified Voters of the City of San Bruno at the General Municipal Election to be held on November 5, 2024, for the Purpose of Financing the Cost of the Acquisition, Construction and Improvement of Certain Municipal Improvement Projects Constituting Public Infrastructure of the City
ALTERNATIVES:

Take no action.

ATTACHMENTS:

1. Ordinance

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ORDINANCE NO. ____

AN ORDINANCE ORDERING THE SUBMISSION OF A PROPOSITION INCURRING

BONDED INDEBTEDNESS TO THE QUALIFIED VOTERS OF THE CITY OF SAN BRUNO AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, FOR

THE PURPOSE OF FINANCING THE COST OF THE ACQUISITION, CONSTRUCTION AND

IMPROVEMENT OF CERTAIN MUNICIPAL IMPROVEMENT PROJECTS CONSTITUTING

PUBLIC INFRASTRUCTURE OF THE CITY
WHEREAS, the City of San Bruno (the “City”) is a municipal corporation and general law city duly organized and existing under the Constitution and laws of the State of California; and WHEREAS, the City is undertaking the following capital improvement projects:
(1) repairing, replacing, and improving the deteriorating stormwater drain system to prevent system failure, flooding, water pollution and sinkholes, (2) repairing and improving the City streets, and (3) constructing and upgrading fire stations to ensure rapid emergency response, accommodate modern fire-fighting and life-saving emergency medical equipment and allow the stations to function during earthquakes and other natural disasters (collectively, the “Improvements”); and
WHEREAS, the undertaking of the Improvements by the City constitutes the construction, reconstruction, rehabilitation and replacement of “municipal improvements” and “public infrastructure” because the Improvements are (1) part of the structures, facilities and equipment owned and operated under the control of the City, (2) part of the basic, underlying features of the City’s physical landscape, community identity, and organization, (3) once completed, open to the public for use and/or benefiting the public, and (4) necessary or convenient to carry out the objects, purposes and powers of the City; and
WHEREAS, the City intends to issue its general obligation bonds (the “Bonds”) to finance the cost of the acquisition, construction and improvement of the Improvements; and WHEREAS, under existing law, approval of the Bonds requires 2/3 of the voters in the City voting on the proposition to vote in favor; and
WHEREAS, Assembly Constitutional Amendment No. 1 (“ACA1”) has qualified for the November 5, 2024 Statewide ballot and would, among other things, change existing law to authorize a city, county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure if the proposition proposing that tax is approved by 55% of the voters of the city, county, city and county, or special district, as applicable, and the proposition includes specified accountability requirements; and
WHEREAS, the foregoing amendments effectuated by ACA1, if approved at the November 5, 2024 Statewide ballot, would apply to any proposition authorizing general obligation bonds of a city that is submitted at the same election as ACA1; and WHEREAS, the proposition to approve the Bonds complies with all the provisions of ACA1, including all of its accountability requirements, so that, if ACA1 is approved on November 5, 2024, approval of the Bonds shall require that 55% (not 2/3) of the voters in the City voting on the proposition vote in favor; and
WHEREAS, if the ballot measure authorizing issuance of the Bonds is approved by the requisite number of affirmative votes, the City will be authorized to issue the Bonds. 118 of 145
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4 NOW, THEREFORE, the City Council of the City of San Bruno does ordain as follows:

SECTION 1. PURPOSE AND INTENT. Pursuant to the authority provided by the California Government Code and California Elections Code, the City Council proposes to order the submission of a proposition authorizing the City to issue general obligation bonds (the “Bonds”) to the qualified voters of the City at the general municipal election to be held on November 5, 2024.

SECTION 2. FINDINGS. The City Council hereby makes the following findings with respect to the proposed measure for the Bonds:
(i) On July 9, 2024, the City Council adopted, by a two-thirds vote of all its members, a resolution entitled “A Resolution of the City Council of the City of San Bruno Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Improvement of Municipal Improvement Projects Constituting Public Infrastructure of the City, and Their Financing Through the Issuance of General Obligation Bonds,” pursuant to which the City Council has found and determined that the public interest and necessity demand the issuance of general obligation bonds to finance the Improvements, which are municipal improvement projects constituting public infrastructure of the City. (ii) In order to provide for the issuance by the City of general obligation bonds to provide financing for the Improvements, it is necessary for the City Council to adopt an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the City at a municipal election.
(iii) The City Council desires to submit said ballot measure to the qualified voters of the City at the regular election to be held in the City on November 5, 2024, and to consolidate the bond election with other elections held within the City on that date.

SECTION 3. CALL FOR ELECTION. The City Council hereby orders that there be submitted to the qualified voters of the City a proposition on incurring bonded indebtedness for the purposes set forth in this Ordinance, at the regular election to be held on November 5, 2024.

SECTION 4. BALLOT PROPOSITION. The City Council hereby submits to the qualified voters of the City, at the regular election to be held on November 5, 2024, a proposition on issuing the Bonds. The statement of the measure shall be in substantially the form set forth in the resolution of the City placing the measure on the ballot.

SECTION 5. OBJECT AND PURPOSE OF BONDS. The object and purpose of the Bonds is to finance some or all of the costs of the Improvements. The authorized Improvements also include all work, facilities and expenditures necessary and incidental to the projects described above.

Examples of such work, facilities, and expenditures include, but are not limited to: costs of design, engineering, architect and other professional services, inspections, site preparation, utilities, landscaping, construction management and other planning and permitting, legal, accounting and similar costs; a customary construction contingency; demolition and disposal of existing structures; rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction; addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes and other applicable law, including the Americans with Disabilities Act; costs of the bond election; bond issuance costs; project administration during the duration of such projects; and financing and interest costs on the Bonds.

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4 The final costs, locations, designs, layouts and other components of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed.

Therefore, the City Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements.

SECTION 6. ESTIMATED COST OF IMPROVEMENTS. The estimated cost of the Improvements is $102,000,000.00. The estimated cost includes legal or other fees, the costs of printing the Bonds, and other costs and expenses incidental to or connected with the authorization, issuance and sale of the Bonds. To the extent the Improvements financed are revenue-producing public works, the cost of the Improvements may also include bond interest estimated to accrue during the construction period and for a period of not to exceed 12 months after completion of construction.

SECTION 7. PRINCIPAL AMOUNT OF BONDS. The amount of the principal of the Bonds shall not exceed $102,000,000.00.

SECTION 8. MAXIMUM INTEREST RATE. The maximum rate of interest to be paid on the Bonds shall be the statutory maximum of 12% per annum. Said interest shall be payable semiannually, except that interest for the first year after the date of the Bonds may be made payable at the end of said year.

SECTION 9. ISSUANCE AND SALE OF BONDS. The City proposes to issue and sell the Bonds pursuant to Article 1, commencing with Section 43600, of Chapter 4 of Division 4 of Title 4 of the California Government Code, or Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, in one or more series, in the maximum amount and for the objects and purposes set forth above if the requisite number of qualified voters voting on the proposition vote in favor thereof. The Bonds will be general obligations of the City payable from and secured by ad valorem taxes levied and collected in the manner prescribed by the laws of the State of California. The revenue generated from the ad valorem tax levied and collected will be used for the payment of debt service on the Bonds. All of the Bonds shall be equally and ratably secured, without priority, by the taxing power of the City.

SECTION 10. MANNER OF CONDUCTING ELECTION. The election on the Bonds held on November 5, 2024 shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted, and returned, returns canvassed, results declared, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the election with which it is consolidated.

SECTION 11. PROCEDURE FOR VOTING ON PROPOSITION. Ballots for the election shall be provided in the form and in the number provided by law. Voters shall be provided an opportunity to vote for or against the proposition on the ballot, in accordance with procedures to be adopted by the authorized officers of the County of San Mateo (the “County”) charged with conducting the election.

SECTION 12. ACCOUNTABILITY REQUIREMENTS. In accordance with ACA1 and Sections 53410 and 53411 of the California Government Code, the City Council hereby adopts the following accountability requirements relating to the Bonds:
(i) The proceeds from the sale of the Bonds shall be used only for the purposes specified in this Ordinance, and not for any other purpose, including City employee salaries and

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4 other operating expenses. The administrative cost of the City for the Improvements shall not exceed 5% of the proceeds from the sale of the Bonds. (ii) The proceeds from the sale of the Bonds shall only be spent on the Improvements, which are projects that serve the jurisdiction of the City. (iii) This Ordinance shall be the ordinance through which projects will be funded and the City hereby certifies that it has evaluated alternative funding sources. (iv) The City shall conduct an annual, independent performance audit to ensure that the Bond funds are expended pursuant to the Ordinance specified in clause (iii). (v) The City shall conduct an annual, independent financial audit of the proceeds from the sale of the Bonds until all of those proceeds have been expended for the projects. (vi) The City shall post the audits required by clauses (iv) and (v) in a manner that is easily accessible to the public.
(vii) The City shall submit the audits required by clauses (iv) and (v) to the California State Auditor for review.
(viii) The City shall appoint a citizens’ oversight committee to ensure that Bond proceeds are expended only for the purposes described in the measure approved by the voters.

Members appointed to the oversight committee shall receive educational training about bonds and fiscal oversight.
(ix) Any entity owned or controlled by a member of the City Council shall be prohibited from bidding on any work funded by the proposition.
(x) A separate account shall be created and held by the City, into which the proceeds of the Bonds shall be deposited and applied solely for the purpose of financing the Improvements.
(xi) The Finance Director of the City shall file a report with the City Council at least annually showing the amount of Bond proceeds collected and expended, and the status of the Improvements.

SECTION 13. IDENTIFICATION OF TAX. The tax imposed by this measure is an ad valorem tax levied upon taxable real property in the City, and will be used to pay the principal and interest on the Bonds.

SECTION 14. OFFICIAL ACTIONS. The Mayor, the City Manager, the Finance Director, the City Clerk, and any of their designees, are hereby authorized to execute any documents and to perform all acts necessary to place the Bond measure on the ballot.

SECTION 15. INTERPRETATION. The provisions of this Ordinance, being necessary for the health, welfare, and safety of the City and its residents, is to be liberally interpreted to carry out its purposes. No error, irregularity or informality, and no neglect or omission of any officer, in any proceeding taken related to the submission of the proposition incurring bonded indebtedness to the qualified voters of the City shall void or invalidate any such proceeding, any Bonds issued by the City or any levy of ad valorem taxes to pay principal of and interest on the Bonds.

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4 SECTION 16. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or applications, and to this end the provisions this Ordinance are declared to be severable.

SECTION 17. PUBLICATION OF ORDINANCE. This Ordinance shall be published once a day for at least seven days in a newspaper published at least six days a week in the City, or once a week for two weeks in a newspaper published less than six days a week in the City. The first of said publications shall, in either event, be within 15 days after the adoption of this Ordinance. If there are no such newspapers, it shall be posted in three public places in the City for two succeeding weeks. No other notice need be given.

SECTION 18. EFFECTIVE DATE. In accordance with Section 36937(a) of the California Government Code, this Ordinance shall become effective immediately, as an ordinance relating to an election, upon its adoption by two-thirds vote of all the members of this City Council. __________________________________
Rico E. Medina, Mayor
ATTEST:
___________________________
Lupita Huerta, City Clerk
APPROVED AS TO FORM:
__________________________________
Trisha A. Ortiz, City Attorney
--oOo--
I hereby certify that foregoing Ordinance No. _____
was introduced at a regular meeting of the San Bruno City Council on ___________, 2024 and adopted by the San Bruno City Council at a regular meeting on ______________, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
__________________________________
Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 23, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
SUBJECT: Consider Adoption of a Resolution Placing a Measure to Approve the Issuance of General Obligation Bonds to Finance Municipal Improvements Constituting Public Infrastructure of the City on the November 5, 2024, Ballot, and Requesting Consolidation with the Statewide General Election and Setting Procedural Details and Adoption of a Resolution Setting Priorities for Filing Written Arguments and Authorizing Rebuttals for a City Measure that Approves the Issuance of General Obligation Bonds to Finance Municipal Improvements BACKGROUND:

Consistent with the City Council’s Fiscal Year 2023-24 Strategic Initiatives to strengthen the City’s fiscal sustainability, the City Council established a Ballot Measure Ad Hoc Committee (Salazar/Hamilton) to explore a potential November 2024 general election ballot measure (“Ballot Measure”) authorizing issuance of General Obligation Bonds (G.O. Bonds).

The Council received a recommendation from the Committee to consider a Ballot Measure and received results from the April 2024 Community Priorities Survey which indicates general support for investments in stormwater, streets, and fire station infrastructure.

At their July 9, 2024 meeting, the Council voted unanimously to take the first step necessary for a Ballot Measure by adopting a Resolution of Necessity (Resolution No. 2024-59) and the introduction and first reading of a Ballot Measure Ordinance (Attachment 3). If the Ballot Measure is approved by the voters, the measure authorizes issuance of G.O. Bonds that would be payable from a dedicated property tax levied on taxable property in the City. The Ballot Measure would authorize an ad valorem property tax of $0.03 per $100 of assessed valuation, which is expected to generate an estimated $102 million in bonding capacity to finance infrastructure improvements for stormwater, streets, and fire facilities.

A City’s general municipal election can be held in conjunction with the statewide general election in November of every even year. The City can consolidate its election with the San Mateo County Elections Division, which then conducts the election, tallies the results, and supplies the City with certified election results. The City bears the cost for its election, which would include the race for mayor, city councilmember districts, and any local measures. 123 of 145
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DISCUSSION:

The City Council is being asked to take final action to place a G.O. Bond measure on the November 2024 ballot. At the July 9, 2024, meeting, the Council voted unanimously to take the first step in a Ballot Measure.

The next step requires the City Council to adopt the Ordinance on second reading by a two- thirds majority vote or 4 affirming. The second reading of the Ordinance was placed on the “Conduct of Business” portion of the Council’s agenda immediately before this item, so it will have been voted on before it is presented. As the Council is aware, second readings of ordinances usually take place on the consent calendar portion of the agenda, but in light of the importance of this Ordinance, it was determined that it should be placed on the Conduct of Business section of the agenda.

Calling of the Election and Consolidation
If at least four Councilmembers vote to adopt the Ordinance, the Council should adopt a Resolution (Attachment 1) calling for the City’s general municipal election, placing the proposed measure on the ballot, and requesting that the County Board of Supervisors consolidate its general municipal election of City officers and the proposed bond measure with the statewide general election. Costs for the Ballot Measure will be in addition to the regular election costs for the election of officers, which, in San Bruno, is the Mayoral seat and two Councilmember seats.

The Resolution also contains the ballot question (“Question”) that will appear for voter consideration. City staff have developed the Question based on advice from professional services retained to assist in this effort. The San Mateo County Elections Office reviewed the Question to confirm that it meets the specifications of a Question for the November 5, 2024 election.

Impartial Analysis and Arguments/Rebuttals for Proposed Measure The recommended Resolution sets forth the last day for filing direct arguments for or against the measure (August 13, 2024), not to exceed 300 words in length, and related details for submission. Likewise, the resolution sets forth the last day for filing rebuttal arguments for or against the measure (August 20, 2024), not to exceed 250 words in length, and related details for submission.

Should the City Council decide to include the proposed measure on the November 5, 2024, ballot, the City Attorney is directed in the resolution to prepare an impartial analysis of the measure. Under Elections Code Section 9280:

Whenever any city measure qualifies for a place on the ballot, the governing body may direct the city elections official to transmit a copy of the measure to the city attorney, unless the organization or salaries of the office of the city attorney are affected. The city attorney shall prepare an impartial analysis of the measure showing the effect of the measure on the existing law and the operation of the measure.

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Setting Priorities for Filing Written Arguments and Authorizing Rebuttals If the Council adopts the resolution calling an election for the G.O. Bond measure, then the City Council should consider a Resolution (Attachment 2) to decide whether it will authorize arguments in favor or against the measure and rebuttal arguments to be included in the ballot materials.

Pursuant to Elections Code Section 9282, any councilmember, registered voter, or bona fide association of citizens may file a written argument for or against a city measure, which must be included in the voter information guide. If more than one argument is submitted for or against any measure, the City Clerk must select only one argument in favor and one argument against for distribution, using the following order of priority:

1. The City Council, or any member of members of the council authorized by the City Council,

2. Bona fide sponsor proponent of the measure,

3. Bona fide associations of citizens, and

4. Individual voters who are eligible to vote on the measure.

The proposed resolution authorizes City Councilmembers to author arguments in favor of or opposed to the ballot measure. In the event that more than one argument is submitted in favor of or opposed to the ballot measure, the Councilmembers’ argument will have priority and will be included in the voter information guide. If the City Council authorizes three or more members of the City Council to author an argument, then the proposed argument must be submitted to the City Council for approval in a public meeting of the City Council. In the event that the City Council does not authorize any authors, arguments submitted by a registered voter, or bona fide association of citizens will be chosen as specified in the Election Code.

The proposed resolutions also adopt Elections Code Section 9285(a) to allow rebuttal arguments. Rebuttal arguments are not permitted if the City Council does not adopt Elections Code Section 9285(a).

Questions from the July 9th Meeting
In considering their first actions on the ballot measure, the City Council posed several questions about the G.O. Bonds. The following provides a brief response to those questions and is intended to clarify topics of interest.

1.Can the bond proceeds be used to renovate City Hall, build a park, or replace water and sewer mains? The Ordinance restricts the use of bond proceeds to the following list of eligible capital infrastructure (“Improvements”):
a. Repairing, replacing, and improving the deteriorating stormwater drain system to prevent system failure, flooding, water pollution and sinkholes, b. Repairing and improving the City streets, and
c. Constructing and upgrading fire stations to ensure rapid emergency response, accommodate modern firefighting and life-saving emergency medical equipment and allow the stations to function during earthquakes and other natural disasters.

2.Can the bond proceeds be used to pay City employee salaries? State law prohibits the use of G.O. Bond proceeds for operational expenditures, including salaries, that are

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not required to build the Improvement. Examples of expenditures that are typically necessary to build an improvement include, but are not limited to:
a. Costs of design, engineering, architect and other professional services, inspections, site preparation, utilities, landscaping, construction management and other planning and permitting, legal, accounting and similar costs; b. A customary construction contingency;
c. Demolition and disposal of existing structures;
d. Rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction; e. Addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes and other applicable law, including the Americans with Disabilities Act; f. Costs of the bond election;
g. Bond issuance costs;
h. Project administration during the duration of such projects; and i. Financing and interest costs on the Bonds.

3.Can bond proceeds be allocated to specific projects today? Council will review and approve the project scope for all Improvements funded by the G.O. Bond as part of the City’s annual capital improvement program budget process. The City’s ability to execute the scope ultimately depends on factors such as final costs, locations, designs, layouts, and other components of the Improvements, which will be determined as plans are finalized, construction bids are awarded, and projects are completed.

4.When will the City issue the G.O. Bonds? If voters approve the Ballot Measure, the City will have the authority to issue G.O. Bonds for Improvements. It is common, however, for a city to issue G.O. Bonds in phases (“Tranches”) over a decade or more, given the multi-year nature of building the Improvements. Further, tax-exempt bonds tend to have the lowest borrowing costs, and tax regulations place time restrictions on using tax-exempt bond proceeds to maintain their tax-exempt status. The City estimates bond issuance in three Tranches: fiscal years 2025, 2030, and 2035. Circumstances can change, however, and Tranches may be delayed or accelerated based on various conditions.

5.When will property owners start paying the G.O. Bond levy? Property owners will see a new line on their property tax bills in the fiscal year following the bond issuance.

Using the example above, the 2025 Tranche will appear on tax bills in 2026. Additionally, while the Ballot Measure authorizes a maximum bond levy of $30 per $100,000 of assessed value, the actual levy in 2026 for a 30-year $35 million bond issued in 2025 is estimated to be less than $30 per $100,000 of assessed value with factors such as project bids and interest rates playing a part in the ultimate debt financing details. The tax rate statement (Attachment 4) is required as part of the Ballot Measure, however, does not require City Council approval.

6.Is there a sunset on the G.O Bond levy? The end date of the bond levy depends on when the City issues the final Tranche of bonds and bond market conditions when bonds are issued. If we assume that the City issues three Tranches (2025, 2030, and 2035), each for 30-year terms, the bond levy fully expires in 2066. The example above is based on many assumptions and is provided solely to illustration when the bond levy might fully expire.

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Next Steps
City staff will transmit the Council’s action to the County of San Mateo and, as directed in the recommended Resolution, the City Attorney will prepare an impartial analysis of the ballot measure. The last day for filing direct arguments for or against the measure is August 13, 2024.

The last day for filing rebuttal arguments for or against the measure is August 20, 2024.

FISCAL IMPACT:

The estimated cost for the Ballot Measure is $40,000 and is included in the City Council Adopted FY25 Budget. If City Council approves the recommendation and voters approve in November, the G.O. Bonds would be issued, and a dedicated ad valorem property tax would be levied on all taxable property in the City in an amount sufficient to pay debt service on the bonds each year. No other City funds would be pledged to the bonds.

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 the following resolutions:

1. Resolution placing a measure to approve the issuance of general obligation bonds to finance municipal improvements constituting public infrastructure of the City on the November 5, 2024, ballot, and requesting that the Board of Supervisors consolidate the City's general municipal election with the statewide general election.

2. Resolution setting priorities for filing written arguments and authorizing rebuttals for a City measure that approves the issuance of general obligation bonds to finance municipal improvements.

ALTERNATIVES:

Take no action.

ATTACHMENTS:

1. Resolution Placing A Measure To Approve The Issuance Of General Obligation Bonds To Finance Municipal Improvements Constituting Public Infrastructure Of The City On The November 5, 2024 Ballot, Requesting Consolidation With The Statewide General Election, And Setting Procedural Details

2. Resolution Of The City Council Of The City Of San Bruno Setting Priorities For Filing Written Arguments And Authorizing Rebuttals For A City Measure That Approves The Issuance Of General Obligation Bonds To Finance Municipal Improvements

3. July 9, 2024 Staff Report

4. Tax Rate Statement

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RESOLUTION NO. 2024 - ____

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

PLACING A MEASURE TO APPROVE THE ISSUANCE OF GENERAL

OBLIGATION BONDS TO FINANCE MUNICIPAL IMPROVEMENTS

CONSTITUTING PUBLIC INFRASTRUCTURE OF THE CITY ON THE
NOVEMBER 5, 2024 BALLOT, REQUESTING CONSOLIDATION WITH THE

STATEWIDE GENERAL ELECTION, AND SETTING PROCEDURAL DETAILS WHEREAS, the City of San Bruno (the “City”) is a municipal corporation and general law city duly organized and existing under the Constitution and laws of the State of California; and WHEREAS, the City Council is required by the California Constitution as well as other applicable provisions of California law to submit the proposal for bonded indebtedness to the voters for their consideration; and
WHEREAS, on July 9, 2024, the City Council adopted, by a two-thirds vote of all its members, Resolution No. 2024-59 determining the necessity to incur a bonded indebtedness to finance municipal improvement projects constituting public infrastructure of the City (the “Bonds”); and
WHEREAS, on the date hereof, the City Council adopted, by a two-thirds vote of all its members, AN ORDINANCE ORDERING THE SUBMISSION OF A PROPOSITION INCURRING

BONDED INDEBTEDNESS TO THE QUALIFIED VOTERS OF THE CITY OF SAN BRUNO AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, FOR THE

PURPOSE OF FINANCING THE COST OF THE ACQUISITION, CONSTRUCTION AND

IMPROVEMENT OF CERTAIN MUNICIPAL IMPROVEMENT PROJECTS CONSTITUTING PUBLIC INFRASTRUCTURE OF THE CITY (the “Ordinance”), which orders the submission to the voters of a proposition authorizing the issuance of the Bonds to the voters of the City for their consideration; and
WHEREAS, under existing law, approval of the Bonds requires 2/3 of the voters in the City voting on the proposition to vote in favor; and
WHEREAS, Assembly Constitutional Amendment No. 1, as amended by Assembly Constitutional Amendment No. 10, has qualified for the November 5, 2024 Statewide ballot as “Proposition 5” and would, among other things, change existing law to authorize a city, county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure if the proposition proposing that tax is approved by 55% of the voters of the city, county, city and county, or special district, as applicable, and the proposition includes specified accountability requirements; and
WHEREAS, the foregoing amendments effectuated by Proposition 5, if approved at the November 5, 2024 Statewide ballot, would apply to any proposition authorizing general obligation bonds of a city that is submitted at the same election as Proposition 5; and WHEREAS, the proposition to approve the Bonds complies with all the provisions of Proposition 5 so that, if Proposition 5 is approved on November 5, 2024, approval of the Bonds shall require 55% (not 2/3) of the voters in the City voting on the proposition to vote in favor; and 128 of 145
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2 5
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WHEREAS, if the ballot measure authorizing issuance of the Bonds is approved by the requisite number of affirmative votes, the City will be authorized to issue the Bonds.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Bruno as follows:

SECTION 1: Pursuant to its right, power and authority under the California Constitution and the laws of the State of California, the City Council on its own motion hereby orders submitted to the voters at an election to be held in the City on November 5, 2024, a ballot measure designated by letter by the San Mateo County Registrar of Voters authorizing the sale of general obligation bonds to finance the costs of municipal improvement projects constituting public infrastructure of the City described in the Ordinance, to appear on the ballot in substantially the following form:

YES
_____
Shall City of San Bruno measure be adopted to repair
deteriorating storm-drains, preventing failure, flooding, water pollution/ sinkholes; repair potholes/ city streets; upgrade fire stations, improving emergency response, accommodate modern firefighting/ lifesaving emergency medical equipment, function during earthquakes/ natural disasters; authorizing $102,000,000 in bonds, at a tax rate of 3¢ per $100 of assessed value, while bonds are outstanding, initially generating $3,300,000 annually, without funds for administrators/ cannot be taken by the State of California, with citizen oversight/ independent audits? NO
______
SECTION 2: The full text of the proposed measure to be submitted to the voters is set forth in the Ordinance, and incorporated herein by reference as if set forth in full. The full text of the Ordinance shall be printed in the voter information guide. The proposed measure shall not take effect unless approved by (1) if Proposition 5 passes, a 55% vote of the City voters voting on the question or (2) if Proposition 5 does not pass, a 2/3rds vote of the City voters voting on the question.

SECTION 3: The City Council hereby finds that the estimates and projections contained in the measure and in the tax rate statement required by Section 9401 of the California Elections Code and prepared in connection with the measure, have been made based on currently available information, but depend on a number of variables which are subject to variation. Such estimates and projections have been made in good faith, and are not binding or intended to be limitations on the terms of the Bonds. The City Manager, or his designee, is hereby authorized to finalize and execute the tax rate statement, and to file the tax rate statement and any other documents required for the Bond measure with the San Mateo County Registrar of Voters.

SECTION 4: Pursuant to Section 10002 and 10403 of the California Elections Code, the City hereby requests that the Board of Supervisors of San Mateo County and the San Mateo County Registrar of Voters consolidate the City’s general obligation bond measure with the Statewide general election to be held on November 5, 2024, and further requests the services of the San Mateo County Registrar of Voters in carrying out the election for the City’s general obligation bond measure, including sending to the City’s registered voters all required election materials, conducting the election, canvassing the vote received, and taking all steps necessary and required for the holding of this election within the City. The City Clerk of the City shall receive the canvass as it pertains to the election on the measure from the County, and shall certify the results to the City Council, as and to the extent required by law.

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SECTION 5:The City acknowledges that the consolidated election will be held and conducted in the manner prescribed in Section 10418 of the California Elections Code. The location of the central counting place for the ballots to be cast at the election shall be as established by the Board of Supervisors of San Mateo County and/or the San Mateo County Registrar of Voters. The precincts, ballot drop box locations and hours of operations, vote center locations and hours of operations, vote-by-mail procedures and timing, and election officers, and all other persons and procedures for the election shall be the same as those utilized by San Mateo County.

SECTION 6:The City acknowledges that the compensation for election officers, polling place rental fees and any other fees or costs of the election shall be based on the rates set by the San Mateo County Board of Supervisors which are in effect at the time of the consolidated election, and the County shall be reimbursed by the City for such services as they are performed.

SECTION 7: The last day for filing direct arguments for or against the measure shall be August 13, 2024 at 5:00 p.m., and all such arguments shall be filed with the City of San Bruno City Clerk, 567 El Camino Real, San Bruno, CA 94066 and shall not exceed 300 words in length.

Each argument shall be signed and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the “Form of Statement to be filed by Author(s) of Argument” as provided by the City Clerk. Arguments received prior to the deadline shall be confidential until the deadline. The City Clerk, upon receipt of arguments and after the filing deadline, shall immediately transmit copies to any known opposing parties who may then submit rebuttals within the time period described below.

SECTION 8:The last day for filing rebuttal arguments for or against the measure shall be August 20, 2024 at 5:00 p.m., and all such arguments shall be filed with the City of San Bruno City Clerk, 567 El Camino Real, San Bruno, CA 94066 and shall not exceed 250 words in length.

The rebuttal arguments shall be accompanied by the “Form of Statement to be filed by Author(s) of Argument” as provided by the City Clerk. Arguments received prior to the deadline shall be confidential until the deadline.

SECTION :The City Council directs the City Clerk to submit to the City Attorney a copy of the measure, and the City Attorney is hereby authorized and directed to prepare an impartial analysis of the ballot measure showing the effect of the measure on the existing law and operation of the measure. The impartial analysis shall be submitted by the City Attorney to the City Clerk on or before August 20, 2024 at 5:00 p.m., shall not exceed 500 words in length, and otherwise shall comply in all respects with the applicable provisions of the California Elections Code.

SECTION :Pursuant to Section 9295 of the California Elections Code, there shall be a 10-day public review period for the impartial analysis, arguments submitted for or against the measure, and rebuttal arguments. These time periods are established as follows: (a) with respect to arguments submitted for or against the measure, commencing on August 13, 2024 and closing on August 20, 2024, and (b) with respect to the impartial analysis and rebuttal arguments, commencing on August 20, 2024 and closing on August 30, 2024.

SECTION :The City Clerk shall comply with all provisions of law establishing priority of arguments for printing and distribution to the voters, and shall take all necessary actions to cause the selected arguments to be printed and distributed to the voters. Rebuttal arguments shall be

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printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.

SECTION : In all particulars not recited in the Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION : The City Clerk is directed to give notice of the election and synopsis of the City’s general obligation bond measure in the time, form, and manner as required by law.

SECTION :The City Clerk is authorized to transmit a certified copy of this resolution to the San Mateo County Board of Supervisors and the San Mateo County Registrar of Voters.

SECTION : Each of the City Manager, the Administrative Services Director/CFO and the City Clerk are hereby authorized and directed to work with the appropriate officials of San Mateo County to carry out the purposes and intent of this Resolution, including preparing, signing, filing and/or revising any applicable documents, agreements, or other materials.

SECTION:If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

SECTION:This Resolution shall take effect immediately upon its adoption. ---oOo---
I hereby certify that foregoing Resolution No. 2024 -___ was introduced and adopted by the San Bruno City Council at a regular meeting on July 23, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
________________________________
Lupita Huerta, City Clerk

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RESOLUTION NO. 2024-____

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

SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS

AND AUTHORIZING REBUTTALS FOR A CITY MEASURE THAT APPROVES

THE ISSUANCE OF GENERAL OBLIGATION BONDS TO

FINANCE MUNICIPAL IMPROVEMENTS
WHEREAS, by prior resolution, the City Council called a general municipal election for November 5, 2024 (the “Election”), to be consolidated with the statewide general election to be held on that same date; and
WHEREAS, by prior resolution, the City Council submitted to the voters at the Election an ordinance that would approve the issuance of general obligation bonds to finance municipal improvements (the “Measure”).

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of San Bruno, California, as follows:

SECTION 1. The City Council authorizes
__________________________(Council Member in Favor/Against) __________________________(Council Member in Favor/Against) __________________________(Council Member in Favor/Against) __________________________(Council Member in Favor/Against) __________________________(Council Member in Favor/Against) to file a written argument in favor of or against the Measure as specified above, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California and to change the argument until and including the date fixed by the City Clerk after which no arguments for or against the Measure may be submitted to the City Clerk. If it is proposed that three or more members of the City Council will author an argument, then the proposed argument shall be submitted to the City Council for approval in a public meeting of the City Council.

SECTION 2. Pursuant to Section 9285 of the California Elections Code of the State of California, when the City Clerk has selected the arguments for and against the Measure that will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the Measure to the author(s) of the argument against, and copies of the argument against to the author(s) of the argument in favor. The author(s), or a majority of the authors, may prepare and submit rebuttal arguments not exceeding 250 words or may authorize, in writing, others to submit a rebuttal argument. The rebuttal arguments shall be filed with the City Clerk, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. Rebuttal arguments shall not be signed by more than 5 persons.

Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument that it seeks to rebut. The provisions of this Section 2 shall apply only to the Election concerning the Measure set forth in this Resolution and shall then be repealed.
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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 July 23, 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
________________________________
Lupita Huerta, City Clerk

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City Council Agenda Item
Staff Report

CITY OF SAN BRUNO
DATE: July 9, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Alex D. McIntyre, City Manager
PREPARED BY: Nick Pegueros, Chief Financial Officer
SUBJECT: Consider Adoption of a Resolution Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Improvement of Municipal Improvement Projects Constituting Public Infrastructure of the City, and their Financing Through the Issuance of General Obligation Bonds; and Introduction, Reading by Title Only, and Waiving Further Reading of an Uncodified Ordinance Ordering the Submission of a Proposition Incurring Bonded Indebtedness to the Qualified Voters of the City of San Bruno at the General Municipal Election to be held on November 5, 2024, for the Purpose of Financing the Cost of the Acquisition, Construction and Improvement of Certain Municipal Improvement Projects Constituting Public Infrastructure of the City BACKGROUND:

The City Council’s Fiscal Year 2024-25 Strategic Initiatives identified the exploration of a revenue measure for the upcoming general election to strengthen the City’s fiscal sustainability.

Mayor Medina appointed Vice Mayor Salazar and Councilmember Hamilton to serve on a Ballot Measure Ad Hoc Committee (Committee) to review various revenue measures and report their findings. At the Council’s February 27, 2024 meeting, the Committee recommended exploring placing a General Obligation Bond (G.O. Bond) on the November 2024 ballot to finance City infrastructure improvements, and the Council unanimously supported the recommendation. The Council also authorized a budget to continue the exploration by appropriating $135,000 for professional services, including financial analysis, surveys, communications, and legal support.

At their June 11, 2024 meeting, City Council received the results of the April 2024 Community Priorities Survey indicating general support for a G.O. Bond measure and provided direction to return on July 9th for City Council action to take the necessary actions to place an item on the November 2024 ballot.

DISCUSSION:

At the City Council’s direction, this staff report transmits the enabling resolution and ordinance necessary to place a G.O. Bond measure on the November 5, 2024, general election ballot. If approved by the voters, a G.O. Bond would be payable from a dedicated ad valorem property tax levied on all taxable property in the City. A G.O. Bond levy of $0.03 per $100 (or $30 per $100,000) of assessed valuation is expected to generate an estimated $102 million in bonding capacity to finance infrastructure improvements. Given the size of the anticipated G.O. Bond 154 of 184
Item 8a.
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Honorable Mayor and Members of the City Council
July 9, 2024

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San Bruno City CouncilJuly 23, 2024

San Bruno City Council
July 23, 2024