San Carlos City Council
March 13, 2023

CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
March 13, 2023  7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both in­person at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

In­Person Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Masks are no longer required, but are still highly recommended in accordance with California Dept of Health Guidelines. To maintain public health and safety, please do not attend in person if you are experiencing symptoms associated with COVID­19.

Provide Public Comment.  To address the City Council on any item on the posted agenda, fill out a Request to Speak Form located in the back of the Council Chambers and submit it to the City Clerk; or, you may raise your hand when the Mayor calls for public comments.

Remote Participation :

Observe via:
­    Zoom. https://us02web.zoom.us/j/88256140939; or call 1­669­900­9128 and enter the Meeting ID     #: 882 5614 0939
­    Meeting Webportal .  www.cityofsancarlos.org/agenda ­    Local TV. Comcast Channel 27 and AT&T Uverse Channel 99 Provide Public Comment.  If you plan to make a public comment on any item on the posted agenda, please observe the meeting via Zoom (see above access information), and during the public comment period for the agenda item you wish to address, use the “raise hand” feature. If joining Zoom by phone, press *9 to “raise hand”.

Councilmembers may participate in this meeting remotely pursuant to Assemby Bill 2449.

MAYOR:  Adam Rak
COUNCIL: Ronald Collins, John Dugan, Sara McDowell, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. PRESENTATIONS
a. Present a Proclamation Recognizing March 2023 as Women’s History Month. b. Present a Proclamation to Joshua Lipman for Receiving the Synopsys Science and Technology Championship Award.

6. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS
Council Communications and Announcements are brief items from members of the City Council regarding upcoming events in the community and correspondence that they have received. They are informational in nature and no action will be taken on these items at this meeting.

7. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

Each speaker is limited to two minutes. If there are more than five individuals wishing to speak during public comment, the Mayor may choose to allow the first five speakers to speak during this time, and the balance of the Public Comment speakers will be called upon at the end of the Council Meeting.

If the item you are speaking on is not listed on the agenda, please be advised that the City Council may briefly respond to statements made or questions posed as allowed under the Brown Act (Government Code Section 54954.2). The City Council's general policy is to refer items to staff for attention, or have a matter placed on a future City Council agenda for a more comprehensive action or report and formal public discussion and input at that time.

8. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve the January 27, 2023 City Council Special Meeting Minutes. c. Authorize Reappointment of Anthony Kamm to the Economic Development Advisory Commission for the Term Ending June 30, 2026.
d. Authorize Reappointment of Rajesh Krishnan to the Economic Development Advisory Commission for the Term Ending June 30, 2026.
e. Authorize Reappointment of Hae Young Datwani to the Residential Design Review Committee for the Term Ending June 30, 2026.
f. Appoint Parks, Recreation and Culture (PR&C) Commission's Alternate Member Robert Bollier as a PR&C Voting Member for a Full Term Beginning July 1, 2023 and ending June 30, 2026.
g. Adopt a Resolution Authorizing the City Manager to Execute a Three­Year Professional Services Agreement with Badawi & Associates, Certified Public Accountants, for Professional Audit Services for the Three Fiscal Years Beginning with the Fiscal Year Ending June 30, 2023, in an Amount Not to Exceed $92,000 for the First Year, $94,700 for the Second Year, and $97,600 for the Third Year, with the Option to Extend for Two Fiscal Years.
h. Deny Claim of Muhammad Hayatullah.
i. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Altec Industries, Inc. for the Purchase of a Sign Truck in the Amount of $196,087.66. j. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Mission Valley Ford and Authorizing an Appropriation from the Wastewater Fund 0006 (Sewer Fund) Unassigned Fund Balance for the Purchase of a Dump Truck in the Amount of $122,028.44.
k. Adopt a Resolution Authorizing the Updates to the Delegation of Authority to Request Disbursements from the California Employer's Retiree Benefits Trust (CERBT).
l. Adopt a Resolution Authorizing the City Manager to Execute a Two­Year Professional Services Agreement with Flock Group Inc. for Flock Safety Automatic License Plate Recognition (ALPR) Cameras/Licenses in the Amount of $130,350 and Authorizing the Approval of the Use of Prior Year Savings from the Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office in the Amount of $130,350 for this Service.

9. NEW BUSINESS
a. Consideration of Adopting a Resolution Adopting the City of San Carlos 2023 Strategic Plan.
b. Consider the Advantages and Disadvantages of an Elected Versus Appointed City Treasurer Position and Provide Direction to Staff as to Whether to Submit the Matter to the San Carlos Electorate as Part of the November 2024 Consolidated Municipal Election.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

11. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

In  compliance  with  the  Americans  with  Disabilities  Act  and  Title  VI, and as outlined in the Ciyt’s Reasonable Accomomodattions Policy, if  you  need  special  assistance  or translation services to participate in this meeting, please contact the City Clerk’s Office at (650) 802­4222 or via email at [email protected]. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

1 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
March 13, 2023  7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both in­person at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

In­Person Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Masks are no longer required, but are still highly recommended in accordance with California Dept of Health Guidelines. To maintain public health and safety, please do not attend in person if you are experiencing symptoms associated with COVID­19.

Provide Public Comment.  To address the City Council on any item on the posted agenda, fill out a Request to Speak Form located in the back of the Council Chambers and submit it to the City Clerk; or, you may raise your hand when the Mayor calls for public comments.

Remote Participation :

Observe via:
­    Zoom. https://us02web.zoom.us/j/88256140939; or call 1­669­900­9128 and enter the Meeting ID     #: 882 5614 0939
­    Meeting Webportal .  www.cityofsancarlos.org/agenda ­    Local TV. Comcast Channel 27 and AT&T Uverse Channel 99 Provide Public Comment.  If you plan to make a public comment on any item on the posted agenda, please observe the meeting via Zoom (see above access information), and during the public comment period for the agenda item you wish to address, use the “raise hand” feature. If joining Zoom by phone, press *9 to “raise hand”.

Councilmembers may participate in this meeting remotely pursuant to Assemby Bill 2449.

MAYOR:  Adam Rak
COUNCIL: Ronald Collins, John Dugan, Sara McDowell, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. PRESENTATIONS
a. Present a Proclamation Recognizing March 2023 as Women’s History Month. b. Present a Proclamation to Joshua Lipman for Receiving the Synopsys Science and Technology Championship Award.

6. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS
Council Communications and Announcements are brief items from members of the City Council regarding upcoming events in the community and correspondence that they have received. They are informational in nature and no action will be taken on these items at this meeting.

7. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

Each speaker is limited to two minutes. If there are more than five individuals wishing to speak during public comment, the Mayor may choose to allow the first five speakers to speak during this time, and the balance of the Public Comment speakers will be called upon at the end of the Council Meeting.

If the item you are speaking on is not listed on the agenda, please be advised that the City Council may briefly respond to statements made or questions posed as allowed under the Brown Act (Government Code Section 54954.2). The City Council's general policy is to refer items to staff for attention, or have a matter placed on a future City Council agenda for a more comprehensive action or report and formal public discussion and input at that time.

8. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve the January 27, 2023 City Council Special Meeting Minutes. c. Authorize Reappointment of Anthony Kamm to the Economic Development Advisory Commission for the Term Ending June 30, 2026.
d. Authorize Reappointment of Rajesh Krishnan to the Economic Development Advisory Commission for the Term Ending June 30, 2026.
e. Authorize Reappointment of Hae Young Datwani to the Residential Design Review Committee for the Term Ending June 30, 2026.
f. Appoint Parks, Recreation and Culture (PR&C) Commission's Alternate Member Robert Bollier as a PR&C Voting Member for a Full Term Beginning July 1, 2023 and ending June 30, 2026.
g. Adopt a Resolution Authorizing the City Manager to Execute a Three­Year Professional Services Agreement with Badawi & Associates, Certified Public Accountants, for Professional Audit Services for the Three Fiscal Years Beginning with the Fiscal Year Ending June 30, 2023, in an Amount Not to Exceed $92,000 for the First Year, $94,700 for the Second Year, and $97,600 for the Third Year, with the Option to Extend for Two Fiscal Years.
h. Deny Claim of Muhammad Hayatullah.
i. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Altec Industries, Inc. for the Purchase of a Sign Truck in the Amount of $196,087.66. j. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Mission Valley Ford and Authorizing an Appropriation from the Wastewater Fund 0006 (Sewer Fund) Unassigned Fund Balance for the Purchase of a Dump Truck in the Amount of $122,028.44.
k. Adopt a Resolution Authorizing the Updates to the Delegation of Authority to Request Disbursements from the California Employer's Retiree Benefits Trust (CERBT).
l. Adopt a Resolution Authorizing the City Manager to Execute a Two­Year Professional Services Agreement with Flock Group Inc. for Flock Safety Automatic License Plate Recognition (ALPR) Cameras/Licenses in the Amount of $130,350 and Authorizing the Approval of the Use of Prior Year Savings from the Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office in the Amount of $130,350 for this Service.

9. NEW BUSINESS
a. Consideration of Adopting a Resolution Adopting the City of San Carlos 2023 Strategic Plan.
b. Consider the Advantages and Disadvantages of an Elected Versus Appointed City Treasurer Position and Provide Direction to Staff as to Whether to Submit the Matter to the San Carlos Electorate as Part of the November 2024 Consolidated Municipal Election.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

11. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

In  compliance  with  the  Americans  with  Disabilities  Act  and  Title  VI, and as outlined in the Ciyt’s Reasonable Accomomodattions Policy, if  you  need  special  assistance  or translation services to participate in this meeting, please contact the City Clerk’s Office at (650) 802­4222 or via email at [email protected]. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

2 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
March 13, 2023  7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both in­person at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

In­Person Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Masks are no longer required, but are still highly recommended in accordance with California Dept of Health Guidelines. To maintain public health and safety, please do not attend in person if you are experiencing symptoms associated with COVID­19.

Provide Public Comment.  To address the City Council on any item on the posted agenda, fill out a Request to Speak Form located in the back of the Council Chambers and submit it to the City Clerk; or, you may raise your hand when the Mayor calls for public comments.

Remote Participation :

Observe via:
­    Zoom. https://us02web.zoom.us/j/88256140939; or call 1­669­900­9128 and enter the Meeting ID     #: 882 5614 0939
­    Meeting Webportal .  www.cityofsancarlos.org/agenda ­    Local TV. Comcast Channel 27 and AT&T Uverse Channel 99 Provide Public Comment.  If you plan to make a public comment on any item on the posted agenda, please observe the meeting via Zoom (see above access information), and during the public comment period for the agenda item you wish to address, use the “raise hand” feature. If joining Zoom by phone, press *9 to “raise hand”.

Councilmembers may participate in this meeting remotely pursuant to Assemby Bill 2449.

MAYOR:  Adam Rak
COUNCIL: Ronald Collins, John Dugan, Sara McDowell, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. PRESENTATIONS
a. Present a Proclamation Recognizing March 2023 as Women’s History Month. b. Present a Proclamation to Joshua Lipman for Receiving the Synopsys Science and Technology Championship Award.

6. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS
Council Communications and Announcements are brief items from members of the City Council regarding upcoming events in the community and correspondence that they have received. They are informational in nature and no action will be taken on these items at this meeting.

7. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

Each speaker is limited to two minutes. If there are more than five individuals wishing to speak during public comment, the Mayor may choose to allow the first five speakers to speak during this time, and the balance of the Public Comment speakers will be called upon at the end of the Council Meeting.

If the item you are speaking on is not listed on the agenda, please be advised that the City Council may briefly respond to statements made or questions posed as allowed under the Brown Act (Government Code Section 54954.2). The City Council's general policy is to refer items to staff for attention, or have a matter placed on a future City Council agenda for a more comprehensive action or report and formal public discussion and input at that time.

8. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve the January 27, 2023 City Council Special Meeting Minutes. c. Authorize Reappointment of Anthony Kamm to the Economic Development Advisory Commission for the Term Ending June 30, 2026.
d. Authorize Reappointment of Rajesh Krishnan to the Economic Development Advisory Commission for the Term Ending June 30, 2026.
e. Authorize Reappointment of Hae Young Datwani to the Residential Design Review Committee for the Term Ending June 30, 2026.
f. Appoint Parks, Recreation and Culture (PR&C) Commission's Alternate Member Robert Bollier as a PR&C Voting Member for a Full Term Beginning July 1, 2023 and ending June 30, 2026.
g. Adopt a Resolution Authorizing the City Manager to Execute a Three­Year Professional Services Agreement with Badawi & Associates, Certified Public Accountants, for Professional Audit Services for the Three Fiscal Years Beginning with the Fiscal Year Ending June 30, 2023, in an Amount Not to Exceed $92,000 for the First Year, $94,700 for the Second Year, and $97,600 for the Third Year, with the Option to Extend for Two Fiscal Years.
h. Deny Claim of Muhammad Hayatullah.
i. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Altec Industries, Inc. for the Purchase of a Sign Truck in the Amount of $196,087.66. j. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Mission Valley Ford and Authorizing an Appropriation from the Wastewater Fund 0006 (Sewer Fund) Unassigned Fund Balance for the Purchase of a Dump Truck in the Amount of $122,028.44.
k. Adopt a Resolution Authorizing the Updates to the Delegation of Authority to Request Disbursements from the California Employer's Retiree Benefits Trust (CERBT).
l. Adopt a Resolution Authorizing the City Manager to Execute a Two­Year Professional Services Agreement with Flock Group Inc. for Flock Safety Automatic License Plate Recognition (ALPR) Cameras/Licenses in the Amount of $130,350 and Authorizing the Approval of the Use of Prior Year Savings from the Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office in the Amount of $130,350 for this Service.

9. NEW BUSINESS
a. Consideration of Adopting a Resolution Adopting the City of San Carlos 2023 Strategic Plan.
b. Consider the Advantages and Disadvantages of an Elected Versus Appointed City Treasurer Position and Provide Direction to Staff as to Whether to Submit the Matter to the San Carlos Electorate as Part of the November 2024 Consolidated Municipal Election.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

11. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

In  compliance  with  the  Americans  with  Disabilities  Act  and  Title  VI, and as outlined in the Ciyt’s Reasonable Accomomodattions Policy, if  you  need  special  assistance  or translation services to participate in this meeting, please contact the City Clerk’s Office at (650) 802­4222 or via email at [email protected]. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

3 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
March 13, 2023  7:00 PM
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
www.cityofsancarlos.org
AGENDA
This meeting will be conducted both in­person at City Hall and virtually via Zoom. Members of the public will have the option to observe the meeting and address the City Council as outlined below.

In­Person Participation:

Location. City Hall – 600 Elm Street, Council Chambers.

Masks are no longer required, but are still highly recommended in accordance with California Dept of Health Guidelines. To maintain public health and safety, please do not attend in person if you are experiencing symptoms associated with COVID­19.

Provide Public Comment.  To address the City Council on any item on the posted agenda, fill out a Request to Speak Form located in the back of the Council Chambers and submit it to the City Clerk; or, you may raise your hand when the Mayor calls for public comments.

Remote Participation :

Observe via:
­    Zoom. https://us02web.zoom.us/j/88256140939; or call 1­669­900­9128 and enter the Meeting ID     #: 882 5614 0939
­    Meeting Webportal .  www.cityofsancarlos.org/agenda ­    Local TV. Comcast Channel 27 and AT&T Uverse Channel 99 Provide Public Comment.  If you plan to make a public comment on any item on the posted agenda, please observe the meeting via Zoom (see above access information), and during the public comment period for the agenda item you wish to address, use the “raise hand” feature. If joining Zoom by phone, press *9 to “raise hand”.

Councilmembers may participate in this meeting remotely pursuant to Assemby Bill 2449.

MAYOR:  Adam Rak
COUNCIL: Ronald Collins, John Dugan, Sara McDowell, Pranita Venkatesh

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

5. PRESENTATIONS
a. Present a Proclamation Recognizing March 2023 as Women’s History Month. b. Present a Proclamation to Joshua Lipman for Receiving the Synopsys Science and Technology Championship Award.

6. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS
Council Communications and Announcements are brief items from members of the City Council regarding upcoming events in the community and correspondence that they have received. They are informational in nature and no action will be taken on these items at this meeting.

7. PUBLIC COMMENT
Persons wishing to address the City Council on matters NOT on the posted agenda may do so.

Each speaker is limited to two minutes. If there are more than five individuals wishing to speak during public comment, the Mayor may choose to allow the first five speakers to speak during this time, and the balance of the Public Comment speakers will be called upon at the end of the Council Meeting.

If the item you are speaking on is not listed on the agenda, please be advised that the City Council may briefly respond to statements made or questions posed as allowed under the Brown Act (Government Code Section 54954.2). The City Council's general policy is to refer items to staff for attention, or have a matter placed on a future City Council agenda for a more comprehensive action or report and formal public discussion and input at that time.

8. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve the January 27, 2023 City Council Special Meeting Minutes. c. Authorize Reappointment of Anthony Kamm to the Economic Development Advisory Commission for the Term Ending June 30, 2026.
d. Authorize Reappointment of Rajesh Krishnan to the Economic Development Advisory Commission for the Term Ending June 30, 2026.
e. Authorize Reappointment of Hae Young Datwani to the Residential Design Review Committee for the Term Ending June 30, 2026.
f. Appoint Parks, Recreation and Culture (PR&C) Commission's Alternate Member Robert Bollier as a PR&C Voting Member for a Full Term Beginning July 1, 2023 and ending June 30, 2026.
g. Adopt a Resolution Authorizing the City Manager to Execute a Three­Year Professional Services Agreement with Badawi & Associates, Certified Public Accountants, for Professional Audit Services for the Three Fiscal Years Beginning with the Fiscal Year Ending June 30, 2023, in an Amount Not to Exceed $92,000 for the First Year, $94,700 for the Second Year, and $97,600 for the Third Year, with the Option to Extend for Two Fiscal Years.
h. Deny Claim of Muhammad Hayatullah.
i. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Altec Industries, Inc. for the Purchase of a Sign Truck in the Amount of $196,087.66. j. Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Mission Valley Ford and Authorizing an Appropriation from the Wastewater Fund 0006 (Sewer Fund) Unassigned Fund Balance for the Purchase of a Dump Truck in the Amount of $122,028.44.
k. Adopt a Resolution Authorizing the Updates to the Delegation of Authority to Request Disbursements from the California Employer's Retiree Benefits Trust (CERBT).
l. Adopt a Resolution Authorizing the City Manager to Execute a Two­Year Professional Services Agreement with Flock Group Inc. for Flock Safety Automatic License Plate Recognition (ALPR) Cameras/Licenses in the Amount of $130,350 and Authorizing the Approval of the Use of Prior Year Savings from the Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office in the Amount of $130,350 for this Service.

9. NEW BUSINESS
a. Consideration of Adopting a Resolution Adopting the City of San Carlos 2023 Strategic Plan.
b. Consider the Advantages and Disadvantages of an Elected Versus Appointed City Treasurer Position and Provide Direction to Staff as to Whether to Submit the Matter to the San Carlos Electorate as Part of the November 2024 Consolidated Municipal Election.

10. AGENDA SETTING
Items discussed in this Agenda Setting Section will be considered by the Council for placing on a future agenda. No action will be taken on these items at this meeting.

11. ADJOURNMENT
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection upon request.

In  compliance  with  the  Americans  with  Disabilities  Act  and  Title  VI, and as outlined in the Ciyt’s Reasonable Accomomodattions Policy, if  you  need  special  assistance  or translation services to participate in this meeting, please contact the City Clerk’s Office at (650) 802­4222 or via email at [email protected]. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

4 San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Special Meeting
San Carlos Library – 2nd Floor Community Room
610 Elm Street, San Carlos, CA 94070
January 27, 2023 9:00 AM

MINUTES

ROLL CALL

City Council Present: Adam Rak, Mayor
Ronald Collins, Vice Mayor
John Dugan, Councilmember
Sara McDowell, Councilmember
Pranita Venkatesh, Councilmember

Staff Present:

Adam Aronson, Economic Development and Housing Manager
Kristina Bell, Police Captain
Nil Blackburn, Assistant City Manager
Brian Cary, Communications Manager
Lou Duran, Public Works Superintendent
Grace Le, City Engineer
Steven Machida, Public Works Director
Jeff Maltbie, City Manager
Andrea Mardesich, Principal Planner
Rebecca Mendenhall, Administrative Services Director
Tyler Muela, Recreation Supervisor
Crystal Mui, City Clerk
Amy Newby, Parks & Recreation Director
Lisa Porras, Planning Manager
Dave Pucci, RWCFD Deputy Fire Chief
Greg Rubens, City Attorney
Al Savay, Community Development Director
Chris Valley, Building Official

1. CALL TO ORDER

Mayor Rak called the meeting to order at 9:00 AM.

2. PUBLIC COMMENT

Patty Marsters, resident, expressed concern with the flooding from recent storms and commented on the need for stormdrain management at the Harbor Industrial area. (comment received at end of meeting)

3. STUDY SESSION

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a. Strategic Planning Retreat

Mayor Adam Rak and City Manager Jeff Maltbie commenced the Strategic Retreat.

Council and staff shared their top accomplishments from the previous year that they’re most proud of and also shared a source of work concern/stress.

Council recessed at 10:15 AM and reconvened at 10:20 AM.

The Council reviewed the 2022 Mission, Vision and Values and were satisfied with keeping the language as-is. The Council then reviewed the 2022 Strategic Plan and provided the below direction for the 2023 Strategic Plan goals:

Goal - Recreational Opportunities.

 Add a new goal to explore new recreational opportunities that will incorporate 2022 goals of Childcare and youth programming and senior services and programming.
 Develop a title, goal statement and objectives that consider Council’s below interests/concerns:
 Consider an update of the 2005 Parks and Recreation Master Plan as a vehicle to explore and plan for recreational opportunities for all age levels  Large developments on the drawing board and on the horizon present an opportunity for planning recreational uses and facilities.  Review recreational opportunities and discuss land allocation and the linkage between recreational uses and development proceeds.  Ensure that the community understands the connection between new development and community benefits that will enhance their quality of life.
 Understand the community’s recreat ional needs and desires holistically.  Consider a plan for Trails and Regional connections.
 Consider increased access to North Crestview Park.
 Consider a conceptual plan for a Community Center (includes how much land would be needed).
 Consider activating City Hall area and its proximity to the Downtown and create a community center adjacent to downtown.
 Consider additional multicultural community events.
 Pursue funding for Childcare (e.g., impact fees) and consider how to distribute funds collected through these fees.
 Consider how to make some funding impacts sooner, since impact fees are development dependent and consequently take time to realize.  Consider zoning/co-location options for childcare sites.  Develop a 5-year action plan for the Age Friendly Communities program and communicate the plan.
 Continue partnering with Public Works for age friendly streets to promote accessibility and mobility.
 Continue Medical Equipment Loan Program.
 Consider accessibility barriers for Seniors to programs and services in the community.

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Goal - Climate Change.

 Continue this goal and update title to add resiliency, adaptability and consider the earlier title of “Climate Change, Mitigation and Adaptation”.  Broaden the goal statement and evolve scope of this goal to add a reference to the City’s Water Management Policy.
 Update/add new objectives as follows:
 Update the objectives to reflect next Climate Mitigation and Adaptation projects that will be undertaken.
 Add resiliency as an objective.
 Add the need to “develop funding sources” to implement key elements of the Climate Mitigation and Adaptation Plan (CMAP).
 Review the City’s Water Management Policy.
 Conduct a joint study with Redwood City of shared natural waterways (e.g., creeks).
 Explore creating a climate change fund for amenities such as solar and EV chargers on public properties. Consider what is already in the CMAP  Continue working with One Shoreline and develop guidance on new building construction particularly with respect to building heights and setbacks.

Goal – Downtown.

 Continue this goal and keep title, goal statement and current objectives.  Consider how to pursue immediate and easy-to-achieve improvements to parklets while the Downtown specific Plan is under development.

Council recessed for a lunch break at 11:30 AM. They reconvened at 12:15 PM and continued providing direction on 2023 goals:

Goal – Housing.

 Continue this goal and keep title and goal statement.  Consider the City’s strategic acquisition of property for affordable housing (includes the City maintaining relationships with realtors and staff initiating discussions with Council regarding direction to look at certain properties).  Consider that housing (and housing diversification) is imbedded in all that the City does.
 Consider rezoning in the Northeast Specific Plan to include housing.

Goal - Mobility, Traffic and Transportation Infrastructure.

 Continue this goal.
 Keep the title and broaden the goal statement to incorporate pedestrian oriented facilities.
 Keep current objectives with some clarifications and additions as follows:
 Objective #1 clarify that “non-vehicular” means “non-automotive”.  Objective #4 add bicycles
 Consider a transit service/district with Northeast Area Planning.

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 Consider on-going sidewalk improvements based on Safe Routes to Schools and Bicycle/Pedestrian Masterplan.
 Specify pedestrian crossings with new housing.

Goal - Northeast Area Specific Plan:

 Continue this goal.
 Keep the title and goal statement.
 Update objectives to reflect the next steps for the specific plan:
 Consider a transit service/district with Northeast Area Planning  Consider key messages about density on the eastside (e.g., Why? What? Community Benefits, etc.).

Council added two items for consideration in 2024:
 Crestview: Consider supporting a connection between 280 and Crestview. This interest is linked to climate change, public safety, and traffic management.  Water Management Policy and Sea-level Rise: All related components, impacts and mitigation measures.

4. ADJOURNMENT

The meeting adjourned at 1:58 PM.

_____________________________
Crystal Mui,
City Clerk

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Authorize Reappointment of Anthony Kamm to the Economic Development Advisory Commission for the Term Ending June 30, 2026.

RECOMMENDATION:

Staff provides no recommendation, as commission appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

On October 11, 2021, the City Council appointed Anthony Kamm to fill a seat for an unexpired term on the Economic Development Advisory Commission, ending June 30, 2023. Mr. Kamm has expressed interest in continuing to serve on this commission. Attached is his attendance report covering October 2021 through February 2023.

According to San Carlos Municipal Code §2.24.060, commissioners may serve two three-year terms, or no more than a total of six consecutive years. However, time served to fill unexpired terms shall not be counted as a term or against the overall limit of six years of consecutive service.

Therefore, at this time, Mr. Kamm is eligible to serve for two more three-year terms.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Reappoint Anthony Kamm to the Economic Development Advisory Commission for the term ending June 30, 2026; or

2. Do not reappoint Anthony Kamm to the Economic Development Advisory Commission and direct staff to proceed with a recruitment to fill the seat beginning July 1, 2023; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk

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Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Attendance Report - Kamm

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City of San Carlos
Attendance Report for Commissioner Anthony Kamm
October 1, 2021 through February 1, 2023
FY 2021-2022

TOTAL UNEXCUSED

ABSENCES
Quarter 2 10/26/2021 11/23/2021 11/28/2021
P C C 0
Quarter 3 1/25/2022 2/22/2022 3/22/2022
P C P 0
Quarter 4 4/26/2022 5/24/2022 6/28/2022
C P C 0
FY 2022-2023

TOTAL UNEXCUSED

ABSENCES
Quarter 1 7/26/2022 8/23/2022 9/27/2022
C U C 1
Quarter 2 10/25/2022 11/22/2022 12/27/2022
P C C 0
Quarter 3 1/24/2023 2/28/2023 3/28/2023
P C 0
P = Present
U = Unexcused Absence
E = Excused
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg cancelled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Authorize Reappointment of Rajesh Krishnan to the Economic Development Advisory Commission for the Term Ending June 30, 2026.

RECOMMENDATION:

Staff provides no recommendation, as commission appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

On August 16, 2022, the City Council appointed Rajesh Krishnan to fill a seat for an unexpired term on the Economic Development Advisory Commission, ending June 30, 2023. Mr. Krishnan has expressed interest in continuing to serve on this commission. Attached is his attendance report covering August 2022 through February 2023.

According to San Carlos Municipal Code §2.24.060, commissioners may serve two three-year terms, or no more than a total of six consecutive years. However, time served to fill unexpired terms shall not be counted as a term or against the overall limit of six years of consecutive service.

Therefore, at this time, Mr. Krishnan is eligible to serve for two more three-year terms.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Reappoint Rajesh Krishnan to the Economic Development Advisory Commission for the term ending June 30, 2026; or

2. Do not reappoint Rajesh Krishnan to the Economic Development Advisory Commission and direct staff to proceed with a recruitment to fill the seat beginning July 1, 2023; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk

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Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Attendance Report - Krishnan

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City of San Carlos
Attendance Report for Commissioner Rajesh Krishnan
August 1, 2022 through February 28, 2023
FY 2022-2023

TOTAL UNEXCUSED

ABSENCES
Quarter 1 7/26/2022 8/23/2022 9/27/2022
C P C 0
Quarter 2 10/25/2022 11/22/2022 12/27/2022
P C C 0
Quarter 3 1/24/2023 2/28/2023 3/28/2023
P C 0
P = Present
U = Unexcused Absence
E = Excused
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg cancelled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Authorize Reappointment of Hae Young Datwani to the Residential Design Review Committee for the Term Ending June 30, 2026.

RECOMMENDATION:

Staff provides no recommendation, as commission appointments are made at the Council’s discretion.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

On June 10, 2019, the City Council appointed Hae Young Datwani to fill a seat for an unexpired term on the Residential Design Review Committee (RDRC), ending June 30, 2020. Council reappointed her on March 9, 2020 to a full term beginning July 1, 2020 through June 30, 2023.

Ms. Datwani has expressed interest in continuing to serve on the RDRC for another term.

Attached is her attendance report covering July 1, 2019 through February 2023.

According to San Carlos Municipal Code §2.24.060, commissioners may serve two three-year terms, or no more than a total of six consecutive years. However, time served to fill unexpired terms shall not be counted as a term or against the overall limit of six years of consecutive service.

Therefore, at this time, Ms. Datwani is eligible to serve for another three-year term.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Reappoint Hae Young Datwani to the RDRC for the term ending June 30, 2026; or

2. Do not reappoint Hae Young Datwani to the RDRC and direct staff to proceed with a recruitment to fill the seat beginning July 1, 2023; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk

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Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Datwani Attendance Report

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City of San Carlos
Attendance Report for RDRC Member Hae Young Datwani
July 1, 2019 through March 6, 2023
FY 2019-2020

TOTAL UNEXCUSED

ABSENCES
Quarter 1 7/1/2019 7/15/2019 8/5/2019 8/19/2019 9/3/2019 9/16/2019 P E U C C C 1
Quarter 2 10/7/2019 10/21/2019 11/4/2019 11/18/2019 12/2/2019 12/16/2019 C P P P P E 0
Quarter 3 1/6/2020 1/21/2020 2/3/2020 2/18/2020 3/2/2020 3/16/2020 C P C P P C 0
Quarter 4 4/6/2020 4/20/2020 5/4/2020 5/18/2020 6/1/2020 6/15/2020 C P P C P P 0
FY 2020-2021

TOTAL UNEXCUSED

ABSENCES
Quarter 1 7/6/2020 7/20/2020 8/3/2020 8/17/2020 9/7/2020 9/21/2020 E E E E P P 0
Quarter 2 10/5/2020 10/19/2020 11/2/2020 11/16/2020 12/7/2020 12/21/2020 C P C P C C 0
Quarter 3 1/4/2021 1/16/2021 2/1/2021 2/16/2021 3/1/2021 3/15/2021 C E C C U P 1
Quarter 4 4/5/2021 4/19/2021 5/3/2021 5/17/2021 6/7/2021 6/21/2021 6/29/2021 P P P P P P P 0
FY 2021-2022

TOTAL UNEXCUSED

ABSENCES
Quarter 1 7/6/2021 7/13/2021 7/19/2021 8/2/2021 9/7/2021 9/20/2021 P P P P P P 0
Quarter 2 10/4/2021 10/18/2021 11/1/2021 11/15/2021 12/6/2021 12/20/2021 P C P P P P 0
Quarter 3 1/3/2022 1/18/2022 2/7/2022 2/22/2022 3/7/2022 3/21/2022 C P P U P P 1
Quarter 4 4/4/2022 4/18/2022 5/2/2022 5/16/2022 6/6/2022 6/16/2022 C P P P P P 0
FY 2022-2023

TOTAL UNEXCUSED

ABSENCES
Quarter 1 7/5/2022 7/18/2022 8/1/2022 8/15/2022 9/6/2022 9/19/2022 P C E P P P 0
Quarter 2 10/3/2022 10/17/2022 11/7/2022 11/21/2022 12/5/2022 12/19/2022 C P C E E C 0
Quarter 3 1/3/2023 1/17/2023 2/6/2023 2/21/2023 2/28/2023 3/6/2023 C U C E P P 1
P = Present
U = Unexcused Absence
E = Excused
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg cancelled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Appoint Parks, Recreation and Culture (PR&C) Commission's Alternate Member Robert Bollier as a PR&C Voting Member for a Full Term Beginning July 1, 2023 and ending June 30, 2026.

RECOMMENDATION:

Staff provides no recommendation, as commission appointments are made at the Council’s discretion
FISCAL IMPLICATIONS:

None for this action.

BACKGROUND AND ANALYSIS:

Parks, Recreation and Culture (PR&C) Commissioner Stacy Dent’s term will expire on June 30, 2023. She is not interested in serving another term.

Robert Bollier has been serving on the PR&C Commission as an alternate member since his appointment in August 2022 and has expressed interest in being appointed to the voting member seat beginning July 1, 2023 and ending June 30, 2026.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Appoint Robert Bollier to serve as a voting member on the Parks, Recreation and Culture Commission for a full term beginning July 1, 2023 and ending June 30, 2026; or

2. Do not appoint Robert Bollier and direct staff to recruit to fill the seat; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Crystal Mui, City Clerk
Approved for submission by:
_______________________
Jeff Maltbie, City Manager

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute a Three- Year Professional Services Agreement with Badawi & Associates, Certified Public Accountants, for Professional Audit Services for the Three Fiscal Years Beginning with the Fiscal Year Ending June 30, 2023, in an Amount Not to Exceed $92,000 for the First Year, $94,700 for the Second Year, and $97,600 for the Third Year, with the Option to Extend for Two Fiscal Years.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute a three-year professional services agreement with Badawi & Associates, Certified Public Accountants (Badawi & Associates), for audit services for the three years beginning with the fiscal year ending June 30, 2023, in an amount not to exceed $92,000 for the first year, $94,700 for the second year, and $97,600 for the third year, with the option to extend for two fiscal years.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with this recommendation.

The City’s audit fees are included in the Finance Division’s operating budget. The audit fees specific to City/County Association of Governments of San Mateo County (C/CAG) and Peninsula Traffic Relief Alliance (Commute.org) are paid for directly by C/CAG and Commute.org.

BACKGROUND:

The Government Finance Officers Association (GFOA) recommends that all governmental agencies enter into multi-year audit agreements of at least five years in duration. Multi-year agreements allow for greater continuity and help minimize the potential for disruption in connection with the independent audit. In addition, multi-year agreements can also help to reduce audit costs by allowing auditors to recover certain “start-up” costs over several years, rather than over a single year.

Over the past few years, the Governmental Accounting Standards Board (GASB) has issued a number of pronouncements that have increased the level of complexity in the audit. Since the City has had the same auditing firm, Maze & Associates (“Maze”), since 2016, the City has been able to sustain the increased complexity with minimal cost increases.

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The GFOA also recommends that the government agency undertake a full-scale competitive process at the end of the term of each audit contract. In March of 2016, the City Council approved a three-year Professional Services Agreement with Maze for independent auditing services for Fiscal Years (FYs) 2015-16, 2016-17, and 2017-18 in the amount of $83,960 per year. The agreement included an option to renew for two additional fiscal years. The original three-year agreement expired upon the completion of the FY 2017-18 financial audits and the option to renew expired with the FY 2019-20 financial audit.

In November 2017, the City Council approved Resolution 2017-086, authorizing an agreement for professional services between the City and Commute.org for the City to render certain financial services related to carrying on the day-to-day financial operations of Commute.org.

The City has been providing similar services to C/CAG for several years. In February 2018, the City Council approved Resolution 2018-024, authorizing an amendment to include the FY 2017- 18 audit costs for Commute.org and authorizing a two-year contract extension through the financial audit of FY 2019-20.

In June 2020, the City Council authorized the City Manager to sign an addendum to the Professional Services Agreement with Maze authorizing a two-year contract extension through the financial audits of FY 2020-21 and FY 2021-22 due to the global COVID-19 pandemic, which delayed the bidding process and ensured continuity of service with the same auditing firm.

Given the complexity and special requirements involved with municipal audits, it is sometimes difficult to find audit firms fully qualified to perform public sector audits. Therefore, it is recommended that the agency actively seek the participation of all qualified firms, including the current auditors, assuming the past performance of the current auditors has proven satisfactory.

ANALYSIS:

On January 13, 2023, the City released a request for proposals (RFP) for Professional Auditing Services. Four proposals were received from the following firms: Badawi & Associates; EideBailly; Maze & Associates; and the Pun Group. Listed in the table below are the responding firms and the total the bid amount for the first year of the contract. There are proposed increases in costs for the subsequent years. The costs include amounts for the City and the Successor Agency audits as well as audits for the C/CAG and Commute.org, to whom the City provides financial services. The audit costs to both C/CAG and Commute.org are passed through directly to those agencies.

Firm Name Total Bid Amount
Badawi & Associates $79,970
EideBailly $131,230
Maze & Associates $90,335
The Pun Group $82,000
A team comprised of the City Treasurer, two Senior Accountants, the Financial Services Manager, and the Administrative Services Director reviewed each proposal and rated each firm based on a number of criteria: completeness of proposal; services provided; government and staff experience; project approach; and price. Given the rating criteria and reference checks, the firm that scored the highest was Badawi & Associates.

All proposals, except for the one from Badawi & Associates, included fees for additional

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programs, such as for new federal grant awards. As such, staff included a 15% contingency for each audit year listed above. For example, in FY 2022-23, the audit fees will be $92,000 ($79,970 with a $12,030 contingency); for FY 2023-24 the audit fees will be $94,700 ($82,365 with a $12,335 contingency); and for FY 2024-25 the audit fees will be $97,600 ($84,855 with a $12,745 contingency). Any increases in costs for C/CAG and Commute.org will be passed along to those agencies.

Badawi & Associates was the lowest bidder and was selected for the following reasons:

1.Experience and Qualifications
Badawi & Associates has over 20 years of experience auditing local governments, including cities, special districts, successor agencies, joint powers authorities and single audits. The partner assigned to our contract, Ahmed Badawi, is the founder of the firm and a licensed Certified Public Accountant (CPA), who has over 20 years of experience with municipal audits.

2.Scope of Services
The proposal includes all required services as requested, including training and continuing education for our staff at no extra charge.

3.Ability to Meet Timeframes Requested
Badawi & Associates has committed to meet the interim and final field-work dates and report deadlines as requested in the RFP.

4.Flowcharting Documentation
As part of the firm’s risk assessment procedures, Badawi & Associates prepared flowcharts for documenting their understanding of the City’s significant accounting and financial processes. These will be updated annually for any changes and can be provided to the City upon request.

5.References
Each proposer was asked to include references as part of their proposal. The Financial Services Manager contacted four of these references and that feedback was also factored into the selection process.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution authorizing the City Manager to execute a professional services agreement with Badawi & Associates for professional auditing services for the three years beginning with the fiscal year ending June 30, 2023, in an amount not to exceed $92,000 for the first year, $94,700 for the second year, and $97,600 for the third year, with the option to extend for two fiscal years; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director

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Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Badawi & Associates’ Technical Proposal

3. Badawi & Associates’ Cost Proposal

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

AUTHORIZING THE CITY MANAGER TO EXECUTE A THREE-YEAR PROFESSIONAL

SERVICES AGREEMENT WITH BADAWI & ASSOCIATES, CERTIFIED PUBLIC

ACCOUNTANTS, FOR PROFESSIONAL AUDIT SERVICES FOR THE THREE FISCAL YEARS BEGINNING WITH THE FISCAL YEAR ENDING JUNE 30, 2023, AN AMOUNT NOT TO EXCEED $92,000 FOR THE FIRST YEAR, $94,700 FOR THE SECOND YEAR, AND $97,600 FOR THE THIRD YEAR, WITH THE OPTION TO EXTEND FOR TWO FISCAL YEARS.

WHEREAS, on January 13, 2023, the City released a request for proposals for professional auditing services; and
WHEREAS, a team comprised of the City Treasurer, two Senior Accountants, the Financial Services Manager, and the Administrative Services Director reviewed each proposal and rated each firm based on a number of criteria: completeness of proposal; services provided; qualifications; government and staff experience; project approach; and price; and WHEREAS, given the rating criteria and reference checks, the firm that scored the highest was Badawi & Associates, Certified Public Accountants.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council authorizes the City Manager can execute a professional services agreement with Badawi & Associates, Certified Public Accountants for the three fiscal years beginning with the fiscal year ending June 30, 2023, an amount not to exceed $92,000 for the first year, $94,700 for the second year, and $97,600 for the third year, with the option to extend for two fiscal years. * * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of March 2023, by the following vote:

AYES, COUNCILMEMBERS:_____________________________________________ NOES, COUNCILMEMBERS:_____________________________________________ ABSENT, COUNCILMEMBERS:_____________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos

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City of
San Carlos

TECHNICAL PROPOSAL

For Professional Auditing Services for
the City of San Carlos
For fiscal years ending June 30, 2023 through 2025,
with the option of extending the contract for each of
the two (2) subsequent fiscal years.

February 10, 2023

Contact Person:

Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Phone: (510) 768-8244
Fax: (510) 768-8249
E-mail: abadawi
@b-acpa.com

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City of San Carlos

Table of Contents
Page
Letter of Transmittal ......................................................................................................................................... 1 Firm Qualifications and Experience ................................................................................................................ 3 Independence ................................................................................................................................................ 3 Insurance ....................................................................................................................................................... 3 License to Practice in California .................................................................................................................... 3 Conflict of Interest .......................................................................................................................................... 3 Firm Qualifications ......................................................................................................................................... 3 Technical Approach ....................................................................................................................................... 4 Firm Experience ............................................................................................................................................. 5 Additional Activities ........................................................................................................................................ 5 Client Training Seminar ................................................................................................................................. 6 GASB 68 Firm Developed Tools and Assistance .......................................................................................... 6 Flowcharting Documentation ......................................................................................................................... 6 Quality Control Review .................................................................................................................................. 6 Federal or State Desk Reviews ..................................................................................................................... 9 Disciplinary Action .......................................................................................................................................... 9 Litigations ....................................................................................................................................................... 9 Partner, Supervisory, and Staff Qualifications and Experiences .............................................................. 10 Similar Engagements with Other Governmental Entities ........................................................................... 17 Understanding of Services to be Provided .................................................................................................. 21 Specific Audit Approach ................................................................................................................................ 22 Objectives of Our Services .......................................................................................................................... 22 Audit Approach ............................................................................................................................................ 22 Technical Approach ..................................................................................................................................... 23 Use of Technology in the Audit ..................................................................................................................... 26 Audit Schedule ................................................................................................................................................ 28 Discussion of Relevant Accounting Issues ................................................................................................. 31 Conclusion ...................................................................................................................................................... 32 Appendix A ...................................................................................................................................................... 33 References ................................................................................................................................................... 33 Appendix B ...................................................................................................................................................... 34 Exceptions to the Contract ........................................................................................................................... 34

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Letter of Transmittal
February 10, 2023

Crystal Mui
City Clerk
City of San Carlos
600 Elm St
San Carlos, CA 94070

Dear Crystal Mui:

Badawi & Associates (B&A), Certified Public Accountants (the “Firm”) is pleased to have th e opportunity to respond to your request for a proposal to provide exte rnal audit services and to submit its qualifications to perform an independent audit of the financial statements of t he City of San Carlos (the “City”) for the fiscal years ending June 30, 2023 through 2025, with the option of extending the contract for each of the two (2) subsequent fiscal years. The objective of our audits is to issue opinions regarding the fairness of presentation of the financial position of the City in accordance with generally accepted accounting principles. These audits are to be performed in accordance with generally ac cepted auditing standards, the standards set forth for financial audits in the Government Accountability O ffice’s (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act of 1984, as amended in 1996, and the Uniform Guidance, Audits of States, Local Governments and Non-Profit Organizations, Uniform Administrative Requirements, as well as any other applicable federal, state, local or programmatic audit requirements.

We will also perform the following as part of our engagement:
- City Single Audit
- GANN Limit Agreed-upon Procedures
- State Controller’s Report
- Transportation Development Act (TDA)
- City Measure A Compliance
- City Measure W Compliance
- Successor Agency Audit
- C/CAG Audit

- C/CAG Single Audit
- C/CAG Measure M
- C/CAG AB1546
- C/CAG State Transportation Improvement
Program (STIP)
- Commute.org Audit
- Commute.org -Measure A
We will also apply limited audit procedures to Managem ent’s Discussion and Analysis (MD&A) and required supplementary information. In addition, we will pr epare the management letter containing comments and recommendations regarding our review and evaluation of the systems of internal control and accounting procedures.

This proposal will highlight the background of the partners and staff assigned to the engagement, summarize our experience in the governmental area, and describe our approach to auditing the City.

This proposal demonstrates our ability to render th e quality examination and to perform the necessary accounting and auditing services requested by the City on a timely basis.

As a partner of the Firm, I will be the primary contact for negotiation of the contract. Additionally, I have been authorized to legally bind the Firm. You may contact me at the following address and phone number:

Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Telephone: (510)768-8244
E-mail: [email protected]

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Crystal Mui
City Clerk
City of San Carlos

2 We are committed to performing the required work, co mpleting the audit, and issuing the necessary auditors’ reports.

We believe we are the best qualified to perform the audit because our audit staff includes individuals well versed in municipal auditing and reporting requirements. We have performed auditing and consulting engagements for numerous cities throughout Ca lifornia. We will be responsive to the nee ds of the City, we understand the City’s operational environment, and pledge to you our complete commitment to providing a quality product that meets the City’s requirements.

The approach to the audit has been designed to meet the audit requirements of the various authorities with the least disruption to the City’s office operations. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “surprises”. Initial planning and pr oper assignment of duties to experienced personnel provide for an effective and efficient audit process. C onsequently, inefficiencies and disruptions are kept to a minimum. In addition, we perform almost half of the audit tasks during the interim phase to minimize any unforeseen delays during the year-end phase and to ensure a smooth and timely audit process.

The Firm maintains liability insurance coverage for professional liability, Workers’ Compensation, Comprehensive General Liability and Auto as part of our comprehensive insurance policy.

The Firm is an Equal Opportunity employer and complies with all Federal and State hiring requirements. The Firm also supports Affirmative Action philosophies and works hard to provide disadvantaged groups with opportunities for self enhancement.

This proposal is a firm and irrevocable offer for 180 days.

We are confident that you will find our organization o ffers the required expertis e, technical knowledge, and business understanding to perform an audit of the City. Our past experience provides us with a thorough understanding of the needs and requirem ents of the City, as well as the technical knowledge to perform such services in accordance with the accounting and auditi ng guidelines as published by the various authoritative entities.

We welcome your inquiries and look forward to further discussions with you.

Sincerely,

Ahmed Badawi
Partner
Badawi & Associates
Certified Public Accountants

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City of San Carlos Technical Proposal

3 Independence
The Firm is independent of the City of San Carlos as defined by the GAO’s Standards for Audit of Governmental Organizations, Programs, Ac tivities and Functions, and the AICPA and California State Society of Cert ified Public Accountants as pr omulgated in various auditing and professional standards.

Insurance
The Firm maintains professional liability insu rance and other coverage as part of our comprehensive insurance policy. Upon selection as the City’s independent auditor, the Firm and our insurance provider will pr ovide a certificate of insurance to the City which shows the minimum requirements identified by City have been met.

License to Practice in California
The Firm and all key professional staff assigned to the City’s audit are properly licensed to practice as Certified Public Accountants in the State of California and comply with GAO Government Auditing Standards.

The Firm is registered with t he California State Board of Acco untancy. Its State number is COR6823.

The Firm has met all required State and local laws, rules, and regulations.

Conflict of Interest
The Firm has no conflicts of interest in connection with providing the services described in this proposal. The Firm does not have any financial, business, or other professional relationships with the City or any member of City staff.

Firm Qualifications
Badawi & Associates was founded by Mr. Ahmed Badawi. Mr. Badawi has over 20 years of experience working with state and local government with a special focus on cities. Prior to founding B&A, Mr. Badawi was a par tner with several local and national firms, where he headed their government practice in Northern California. Mr. Badawi founded Badawi & Associates to serve the fast-paced needs of California's local governments. The goal is to build a proactive, client-focused culture fr om the ground up and to eliminate the entrenched bureaucratic culture and intrinsic limitations of the big audit firms.

Located in Berkeley, CA, the Firm serves a variety of cities and towns throughout California as well as conducting financial related services for numerous special districts and authorities.

Names and phone numbers of several of our current and past clients and other references are provided for your inquiries. We encourage you to contact these individuals to obtain information on the quality of the audit and the ability of the audit staff.

Our Berkeley office will be the Engagement Office assigned to the City.

In addition to specific City financial statem ents, the Firm members have also audited numerous redevelopment agencies, public fina ncing authorities, hospitals, housing authorities, transportation authorit ies, special districts, water districts, OCJP grants, self- insurance pools, joint power authorities and has also performed numerous compliance audits in accordance with the Single Audit Act, childcare regulations, TOT regulations, AQMD regulations, franchise requirements.

The Engagement Partner assigned to the City will be Mr. Ahmed Badawi. Mr. Badawi has over 20 years of government audit experience. He is a member of various governmental committees, has actively participated in the development of accounting and audit guidelines for the governmental sector, and is an instructor for the California Society of Municipal Finance Officers.

Firm
Qualifications
and
Experience

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City of San Carlos Technical Proposal

4 The professional staffs assigned to the E ngagement are qualified and experienced. Each individual of the Engagement Team has several years of experience and has conducted or participated in numerous municipal audits of various sizes. Their understanding of governmental operations and the various authoritative guidelines will provide the where-with- all to perform the audit in an efficient and effective manner with minimal disruption to the City’s finance department.

Technical Approach
The approach to the audit has been designed to meet the audit requirements of the various authorities with the least disr uption to the City’s operatio ns. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “surprises”. Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit process. Consequently, inefficiencies, disruptions, and lack of understanding are kept to a minimum.

The audit approach will consist of four phases:
1) Initial Planning Meeting:

The Engagement Partner and Ma nager will meet with City Management to discuss the audit approach, identify specif ic needs of City Managemen t, and familiarize themselves with City policies and practices.
2) Interim:

The Engagement Team members including t he Engagement Team Pa rtner will perform the internal control reviews, test transaction s, evaluate compliance with Single Audit Act requirements, identify potential audit issues that need to be addressed, perform limited confirmation procedures, and develop a cl ear understanding between the Engagement Team and City Management of the year-end audit responsi bilities and as signments. In addition, we strive to complete many of the year-end audit tasks during the interim phase to ensure a smoother audit process. We will work with the City on providing a list of those tasks that we will target to complete during interim and work with the City on how to complete them to minimize the amount of effort and time needed at year-end which in turn will assist the City in meeting its goal of issuing the Annual Comprehensive Financial Report.
3) Year-end:

The Engagement Team members including t he Engagement Team Pa rtner will conduct validation procedures on general ledger ac count balances, complete confirmation procedures, perform analytical procedures on revenue and expenditures, perform search for unrecorded liabilities, complete compliance work on Federal Assistance, and wrap up audit field work.
4) Reporting:

Auditor’s reports for all City reporting entities and compliance requirements will be finalized along with Single Audit Reports and Manag ement Letter comments. The Partner and Manager will be available to make presentatio ns to the City Counc il and/or designated bodies.

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City of San Carlos Technical Proposal

5 Firm Experience
The Firm is located in Berkeley and prov ides a full range of accounting services to governmental agencies throughout California, including audit, tax and accounting. The Firm’s professional staff members provide the financial background and specific experience to meet the City’s operational needs. Additionally, this situation provides the City with an auditing firm that has depth in capabilities to address any financial issue the City may need assistance with, and the quality audit approach that you expect.

Our Berkeley office will be the Engagement Office assigned to the City.

Firm policy requires that the Engagement Partner, during the first year of the engagement, be actively involved in the daily fieldwork. This means to the City that Mr. Badawi will actually be on-site during the audit coordinating the audit pr ocess, supervising the audit staff, gaining a hands-on understanding of City proc esses, and benefiting the City with his broad municipal experience. We have found that this effort benefits the City and the Firm through developing a thorough knowledge of the Ci ty’s practices and issues and establishing a close working relationship with the City’s Management. Additionally, continuity of audit personnel is assured because of the hands on involvement of the Partner.

We are committed to providing appropriate and related experience, personal involvement, and a broad business perspective to produce a quality end product within the time frames required.

The Firm provides financial and compliance auditing services to governmental agencies throughout California. We are a governmental agency auditing firm and our professional staff members have been performing these services for many years. As a result, we have performed financial and compliance audits on most, if not all, types of governmental agencies and operations including:
 Cities
 Redevelopment
Agencies
 Financing
Authorities
 Housing Authorities
 Special Districts
 Water Districts
 Waste Management
Authorities and
Operations
 Pension Plans
 Child Care
Operations
 Joint Power
Authorities
 Investment Activities
 Landfills
 Enterprise Funds
 Airports
 Transportation
Operations
 Federal and State
Grants
Additional Activities
We offer a full range of accounting and finance services to the governmental sector. These services include:
 Financial audits
 Compliance audits
 Tax advice
 Development of financial and
accounting policies and procedures
 Investment review and compliance
evaluation
 Operational reviews
 Technical guidance on existing and
upcoming accounting issues
 Training seminars
 Pension/profit-sharing plans
 Performance audits
 Business consulting
Consequently, Firm personnel are well qualified to perform the services expected by the City.

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City of San Carlos Technical Proposal

6 Client Training Seminar
The Firm hosts an annual update on recent technical accounting and finance issues affecting the governmental area. This all day session reviews new and anticipated pronouncements from GASB, discusses future issues under consideration by GASB, reviews accounting treatment of various transactions where issues may arise, and provides a general overview of state and federal compliance issues. All of our clients are invited to attend, free of charge. The one day session qualifies for CPE under the rules of the State Board of Accountancy and is held in the Bay Area.

GASB 68 Firm Developed Tools and Assistance
The Firm has developed tools to assist our clients with preparation of GASB 68 journal entries for the CalPERS’ Cost Sharing Plans (for whic h individualized actuarial valuations are no longer prepared) and the CalPERS’ Agent Multiple Employer Plans. In addition to providing our clients with these tools and in structions on how to use them, we are available to answer any questions on how to prepare and complete the GASB 68 journal entries.

Flowcharting Documentation
As part of our risk assessment procedures, we prepare flowcharts for documenting our understanding of the City’s significant accoun ting and financial processes. Flowcharts are updated annually for any changes in the City’s processes and copies can be provided upon request for the City’s internal use. Flowcharted processes may include:
 Financial Reporting, Closing, and Manual Journal Entries  Cash Receipts, Billing, and Accounts Receivable/Revenues  Cash Disbursements, Purchasing, and Accounts Payable/Expenditures  Payroll and Human Resources
Quality Control Review
According to Government Auditing Standards, firms who perform audits under the Yellow Book are required to have a peer review once every three years. We received a report with a rating of pass with no deficiencies which we attached for your review.

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City of San Carlos Technical Proposal

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City of San Carlos Technical Proposal

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City of San Carlos Technical Proposal

9 The Firm has policies and procedures to ensure it hires only qualified people, that it properly supervises them and provides prof essional training, that it adv ances them to responsibilities they are capable of handling, and that it provides them with necessary technical resources. All members of the Firm are very familiar with the stringent quality control standards established by the AICPA.

The Firm is a member of the AICPA Government Audit Quality Center.

The Firm is a member of the AICPA Private Companies Practice Section.

Federal or State Desk Reviews
The Firm has had no negative federal or state reviews in the past three (3) years.

Disciplinary Action
There has not been any state or federal disciplinary actions taken or pending against the Firm nor any findings to report.

Litigations
The Firm has not experienced any lawsuits or legal actions that have been resolved or are currently pending in the prior five years.

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City of San Carlos Technical Proposal

10 The Engagement Team will normally consist of seven individuals who provide a broad business perspective and significant experience in governmental auditing. This team will provide access to a wide range of technical capabilities which will provide the City with not only the technical support necessary to per form the audit, but also the broad business background to interpret findings and observations to offer effective solutions to issues, and the personal involvement of the Engagement and Compliance Partners of the Firm.

The Engagement Team will be led by Ahmed Badawi, CPA. Mr. Badawi’s background includes over twenty years of municipal auditing experi ence with a special focus on cities. He is the instructor of the CSMF O “Introduction to Governmental Accounting” training classes. Mr.

Badawi is a member of the Government Accounting and Auditing Committee of the California Society of Certified Public Ac countants. He has participated in the audits of numerous City, county and special district governments, as we ll as non-profit entities. His diversified background offers the technical qualities require d of the governmental and non-profit areas and the necessary wherewithal to properly evaluate the entir e accounting process, develop opportunities to improve the accounting process, and to offer practical business recommendations
The second member of the Engagement Team will be Mitesh Desai, CPA. Mr. Desai’s background includes sixteen y ears of experience in muni cipal auditing. Mr. Desai has participated in the audits of numerous government al agencies, assisted in their efforts to publish their Annual Comp rehensive Financial Reports in compliance with GASB 34, and a volunteer member of the GFOA Special Revi ew Committee. Mr. Desai is responsible for conducting in-house trainings for staff auditors and is credentialed with the Advanced Single Audit Certificate offered by the AICPA. He will serve as the Audit Manager.

The third member of the Engagement Team will be Wenwei Zhao, CPA. Ms. Zhao’s background includes six years of accounting and auditing experience. She has participated in the audits of numerous governmental entities a nd assisted in their efforts to publish their financial statements in compliance with various regulations, and is a volunteer member of the GFOA Special Review Committee. Ms. Zhao will be the Audit Senior of this engagement.

Engagement Partner

Ahmed Badawi
CPA

Audit Manager

Mitesh Desai
CPA
Engagement Quality
Reviewer

Monica Singhai
CPA

Audit Senior

Wenwei Zhao
CPA

Professional
Audit Staff

Professional
Audit Staff

Professional
Audit Staff
Partner,
Supervisory,
and Staff
Qualifications
and
Experiences

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City of San Carlos Technical Proposal

11 The fourth member of the Engagement Team will be Monica Singhai, CPA. Mrs. Singhai’s background includes over sev enteen years of experience in municipal auditing. She has participated in the audits of numerous government al agencies and assisted in their efforts to publish their financial statements in compliance with various regulations. Mrs. Singhai will be the Engagement Quality Reviewer of this engagement.

Each member of the Engagement Team participates in continuing education programs offered by the AICPA and California State Society of Certified Public Accountants, and each has met the continuing education requirements for municipalities. In addition, the firm offers at least 60 hours of in-house CPE annually focused mainly on municipal audits.

Professional Development:

The Firm maintains a comprehensive training program targeted at appropriate professional staff levels. It utilizes in-hou se developed educational programs, AICPA and California CPA Foundation educational programs, and on-the-job training.

The Firm’s annual training schedule which officially begins in April for all professional staff and administrative staff includes comprehensive in-house training sessions on such topics as:
 Review of principles of accounting a nd financial reporting for state and local governments
 Review of governmental fund types and account groups
 Review of newly issued generally ac cepted auditing standards and GAO auditing standards
 Review of Internal Control evaluation approaches including COSO principles  Updates on recent governmental accounting and reporting guidelines  Review of Single Audit requirements and approaches
 Review of financial audit approaches
 Overview of audit and internal control work paper techniques  Review of GASB reporting requirements
 Review of current issues facing the governmental community During the year, professional staff members are sent to various educational sessions sponsored by the AICPA and California State Society of CPAs, as considered appropriate for the level and need of the individual. These classes include, among others:
 Governmental Financial Reporting Standards and Practices  Yellow Book: Government Auditing Standards
 Financial Accounting Standar ds: Comprehensive Review  Single Audit
 Governmental Auditing & Accounting Update
 Governmental Accounting Principles
 Comprehensive Review of Generally Accepted Auditing Standards The result of the Firm’s training program is the production of a highly educated and competent municipal audit group capable of performing an efficient and effective audit for the City.

The Engagement Team members will continue their professional development efforts.

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City of San Carlos Technical Proposal

12 Staff Retention and Continuity:

The Firm's policy on providing service to our clients includes a commitment to maintaining continuity of audit personnel. We cannot guarantee that our staff will remain with the Firm.

However, to encourage our staff to remain with us, we pay competitive wage rates; offer promotional opportunities; provide state-of -the-art equipment and excellent working conditions; and offer various benefits, such as re tirement plans, medical plans, profit sharing programs, educational benefits, and other such benefits. We can also guarantee that the partner will be involved in future years. Continuity of audit staff is of prime concern to us and because of the hands-on involvement of the par tner; we can assure you that future years’ audits will be conducted in an efficient and e ffective manner with qualified and experienced professionals.

The Firm is an Equal Opportunity employer an d complies with all Federal and State hiring requirements. The Firm also supports Affi rmative Action philosophies and works hard to provide disadvantaged groups with opportunities for self enhancement.

Resumes of each member of the Engagement Team follow.

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City of San Carlos Technical Proposal

13 Ahmed Badawi, Certified Public Accountant – Engagement Partner Length of Career
 Twenty years experience in municipal auditing and accounting with a special focus on cities  Certified Public Accountant for the State of California Professional Experience
 Partial listing of clients served:

 Has performed numerous financial audits, Single Audits, Transportation Development Act audits, housing audits, electrical utility audits, RDA audits, PFA audits, and Trust Fund audits, and has prepared numerous Annual Comprehensive Financial Reports Education
 BS Degree in Accounting from the University of Alexandria, Egypt Professional Activities
 Instructor, CSMFO’s “Introduction to Governmental Accounting” training class  Member, CALCPA Government Accounting and Auditing Committee  Member, American Institute of Certified Public Accountants  Member, California Society of Certified Public Accountants  Member, Government Finance Officers Association
 Member, California Society of Municipal Finance Officers Continuing Education
 Has met the current CPE educational requir ements to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Albany X X X X
A n t i o c h XX XXX
Atwater X X X
Azus a X X X X
Berkeley X X X X X
Buena Park X X X X X
Burlingame X X X
Cotati X X X
Dublin X X X
E a s t P a l o A l t o XX XX
El Cerrito X X X X X
F o l s o m XX XX
Foster City X X X X X
Fremont X X X X
Guadalupe X X X X X
Lafayette X X X X
Larkspur X X X X
Lindsay X X X
Menlo Park X X X X X
Newark X X X X
Oakdale X X X X X
Ontario X X X X
Petaluma X X
Pinole X X X X
Pleasanton X X X X
R i c h m o n d XXXXXX
San Bruno X X X X X
San Leandro X X X X
San Luis Obispo X X X
San Mateo X X X X X
Scotts Valley X X X X
Solvang X X
Susanville X X
T u r l o c k XXXXXX
Union City X X X X X
Vacaville X X X X X
Walnut Creek X X X X X
Counties:

S a n t a C r u z C o u n t y XXXXXX
Contra Costa County X X XXXX
Special Districts and Other:

Alameda County Water District X X X
East Bay Regional Park District X X X
Services Provided

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City of San Carlos Technical Proposal

14 Mitesh Desai, Certified Public Accountant – Professional Audit Manager Length of Career
 Sixteen years experience in municipal auditing with a special focus on cities  Certified Public Accountant for the State of California Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development Act audits, and housing audits

Education
 BS Degree in Business Economics with an emphasis in Accounting from University of California, Santa Barbara
Professional Activities
 Member, American Institute of Certified Public Accountants  Member, California Society of Certified Public Accountants  Volunteer Member, GFOA Special Review Committee
Continuing Education

 Various municipal accounting courses offered by the California Society of CPAs and local universities including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
 Has met the current CPE educational requirem ents to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Albany X
Antioch X X X
Azus a X X X X
Berkeley X X X X X
Buena Park X X X X
Calimesa X X X
Crescent City X X X X X
Dablin X X X
East Palo Alto X X X X
E l C e r r i t o XXX XX
Foster City X X X X X
Fremont X X X X X
Lemon Grove X X
Lindsay X X X
Menlo Park X X X
Millbraie X X X X
Newark X X X X
Oakdale X X X X
Pittsburg X X X X X
Placerville X X X X
R i o V i s t a XXX X
S a n M a t e o XXX XX
Sebastopul X X X X
Solvang X X
Susanville X
Turlock XX X
Union Cit
y XX X
Vacaville XXXX X
W a t e r f o r d XXX X
Yountville XX X
Yuba City XX XX
Child Care Programs:

Menlo Park Child Care XX
Stanislaus County Childcare XX
Non-profits:

Housing Endowment and Regional Trust X
Special Districts and Other:

Castro Valley Sanitary District X
Cosumnes Community Serv ices Distric t X
Marin Municipal Water Distric t X
West County Wastewater District XX
XX
Services Provided
Contra Costa Child Development Programs

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City of San Carlos Technical Proposal

15 Wenwei Zhao, Certified Public Accountant – Professional Audit Senior Length of Career
 Six years experience in auditing
 Certified Public Accountant for the State of California Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development Act audits, and housing audits

Education
 Master of Accounting from University of Pittsburgh, PA Professional Activities
 Volunteer Member, GFOA Special Review Committee
Continuing Education
 Various municipal accounting courses offered by the California Society of CPAs and local universities including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Municipal Accounting
- Single Audit
 Has met the current CPE educational requir ements to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Barstow X
Berkeley X X X
Crescent City X X X X
East Palo Alto X X X
El Cerrito X X
Folsom X X
Lafayette X X X X
Larkspur X
Menlo Park X X X
Millbrae X
Newark X X X X
Oakdale X X X
Pinole X X
Redwood City X
Richmond X X X X X
San Luis Obispo X X X
San Mateo X X
Susanville X X
Town of Los Gatos X
Town of Yountville X X
Union City X X X X
Waterford X
Y u b a C i t y XX XX
Towns:

Los Gatos X
Child Care Programs:

Contra Costa County Child Care X X
Special Districts:

Alameda County Single Audit X
Cosumnes Services District X
Elk Grove Water District X
Hayward Area Recreation and Park District X
Marin Municipal Water District X
Resource Conservation District of Santa
Cruz County
X
San Mateo County Mosquito and Vector
Control District
X
Santa Cruz Regional 9-1-1 X
Services Provided

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City of San Carlos Technical Proposal

16 Monica Singhai, Certified Public Accountant – Engagement Quality Reviewer Length of Career
 Seventeen years of experience in auditi ng with special focus on municipalities.  Certified Public Accountant for the State of California.

Professional Experience
 Has performed numerous financial audits, Single Audits, RDA audits and PFA audits

Education
 Bachelor of Science in Accounting from Jabalpur University, India.

Professional Activities
 Member, California Society of Certified Public Accountants.  Member, Institute of Char tered Accountants of India.

Continuing Education
 Various local governments and not for profit acco unting courses offered by the California Society of CPAs and AICPA including:
- Governmental Financial Reporting Standards and Practices - Yellow Book: Government Auditing Standards
- Single Audit
 Has met the current CPE educational requirement s to perform audits on governmental agencies.

Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Berkeley XX X
East Palo Alto XX
Menlo Park XX X
Redwood City XX X
Special District:

Alameda County Fire District X
Alameda County Law Library X
Burbank Sanitary District XX
Lions Gate Community Service District X
Los Medanos Community Health Care District X
Oakland-Alameda County Coliseum Authority X
School District:

Bayshore Elementary School District X
Belmont-Redwood Shores School District XX X
Brisbane School District X
Jefferson Elementary School District XX
La Honda-Pescadero Unified School District XX X
Pacifica School District XX
Ravenswood City School District XX X
Redwood City School District XX
San Mateo-Foster City School District XX X
Charter schools:

Oakland Military Institute College Preparatory
Academy XX
Sacramento Valley Charter School X
West Sacramento College Prep Charter School X
First 5:

First 5 Alameda County XX
First 5 Inyo County X
First 5 Marin County X
First 5 Monterey County X
First 5 Santa Cruz County X
Others:

Alameda County Housing Community
Development Agency X X X
Alameda County Redevelopment Agency X X
Alameda County Successor Agency X
City of Oakland - Measure C X
City of Oakland - Measure Y X
City of Oakland - Child Care and
Development Program X
City of Oakland - Wildfire Prevention
Assessment District X
Services Provided

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City of San Carlos Technical Proposal

17 The tables below and on the following page are a partial listing of our clients similar to the City, and illustrates the many different types of components involved in each audit engagement that present very difficult and complex auditing and accounting challenges (in order of audit hours). ** Indicates cities with population over 50,000
** Indicates cities with governmental revenues over $100 million and population over 50,000

City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
** Richmond 2020 3,160 Ahm ed
Badaw i
Delmy Cuellar
Finance Manager
(510)620-6790
[email protected]

X XXX X XXX
** Berkeley 2008 1,850 Mites h
Des ai
Henry Oyekanmi
Finance Director
(510)981-7300
[email protected]

X XXXX X XX
** Ontario 2021 1,012 Ahm ed
Badaw i
Jialuan Ning
Acting Accounting Manager
(909)395-2096
[email protected]

XX X X X X X
* Union City 2006 850 Mites h
Des ai
Jackie Acosta
Finance Director
(510)675-5345
[email protected]

X XXXX X
** Folsom 2019 807 Ahm ed
Badaw i
Stacey Tamagni
Finance Director
(916)461-6712
[email protected]

XX X X X X
* Petaluma 2019 691 Ahm ed
Badaw i
Corey Garberolio
Finance Director
(707)778-4357
[email protected]

X X XXXXX
* San Luis
Obispo 2019 638 Ahm ed
Badaw i
Brigitte Elke
Finance Director
(805)781-7125
[email protected]

X X XXXX
* Antioch 2005 586 Mites h
Des ai
Daw n Merchant
Finance Director
(925)779-6135
[email protected]

X XXXXXX X
Lafayette 2020 586 Ahm ed
Badaw i
Jennifer Wakeman
Assis. Adm inistrative Services D irector
(925)299-3213
[email protected]
XX X X
East Palo Alto 2014 560 Mites h
Des ai
Tomohito Oku
Finance Director
(650)853-3122
[email protected]

X XXX X X
** Dublin 2018 546 Ahm ed
Badaw i
Lisa Hisatom i
Director of Finance & Admin. Services
(925)833-6640
[email protected]
XX X X
Similar
Engagements
with Other
Governmental
Entities

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City of San Carlos Technical Proposal

18 City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
Azusa 2017 540 Ahm ed
Badaw i
Talika Johnson
Adm inistrative Services Director
(626)812-5202
[email protected]

X XXX XX X
Millbrae 2015 524 Mites h
Des ai
Mike Sung
Finance Director
(650)259-2433
[email protected]

X XXX XX X
* Yuba City 2017 450 Mites h
Des ai
Spencer M orrison
Finance Director
(530)822-4615
[email protected]

X XXX XX X
Wasco 2021 428 Ahm ed
Badaw i
Isarel Perez-Hernandez
Finance Director
(661)758-7230
isperez@cityofw asco.org
XXXXX
Pinole 2018 419 Ahm ed
Badaw i
Markisha Guillory
Finance Director
(510)724-9823
[email protected]

XX X X X
Larkspur 2019 382 Ahm ed
Badaw i
Cathy Orme
Adm inistrative Services Director
(415)927-5019
[email protected]
XX X
Atw ater 2021 380 Ahm ed
Badaw i
Delilah Youmara
Finance Director
(209)357-6347
dyoumara@atw ater.org

XX XX X
Waterford 2018 311 Ahm ed
Badaw i
Tina Envia
Finance Manager
(209)874-2328 Ext: 104
tenvia@cityofw aterford.org
XX XX
Solvang 2019 308 Ahm ed
Badaw i
Brad Vidro
Interim City Manager
(805)688-5575 ext 204
[email protected]
XX X X
Oakdale 2016 306 Mites h
Des ai
Albert Avila
Finance Director
(209)845-3584
[email protected]

XXXXX X
Guadalupe 2017 303 Mites h
Des ai
Lorena Zarate
Finance Director
(805)356-3895
[email protected]

XX XX X
Sebastopol 2017 275 Mites h
Des ai
Ana Kw ong
Finance Director
(707)824-4879
akw [email protected]

XX X X X X

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City of San Carlos Technical Proposal

19 City
Client Since
Hours
Engagement Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
RDA/Successor Agency
Single Audit
TDA
Water Fund
Sewer Fund
Child Care Audit
Housing Authority
Enterprise Funds
Pension Trust Fund
Cotati 2020 265 Ahm ed
Badaw i
Angela Courter
Director of Administrative Services
(707)665-4236
[email protected]

XX X X X
Crescent City 2014 227 Mites h
Des ai
Linda Leaver
Finance Director
(707)464-7483 x224
[email protected]

XX XX XX
Scotts Valley 2019 202 Ahm ed
Badaw i
Selina Andrew s
Finance Manager
(831)440-5614
sandrew [email protected]
XX X X
Calimesa 2013 193 Mites h
Des ai
Celeste Reid, CPA
Finance Director
(909)795-9801
creid@cityofcalim esa.net
X

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City of San Carlos Technical Proposal

20 The table below lists all special district engagements (in order of audit hours):

Special District
Client Since
Hours
Engagement
Partner
Principal Contact
Annual Comprehensive
Financial Report
GFOA Award
Single Audit
Enterprise Funds
Florin Resource Conservation District/
Elk Grove Water District 2015 350 Mites h
Desai
Patrick Lee
Finance Manager / Treasurer
(916)685-3556
[email protected]
Yes Yes X
Solano County Water Agency 2020 243 Ahm ed
Badawi
Roland Sanford
General Manager
(707) 455-1103
[email protected]
No N/A
Alameda County Waste Management
Authority (StopWaste) 2018 154 Ahm ed
Badawi
Jennifer Luong
Finance Services Manager
(510)891-6500
[email protected]
Yes Yes
San Gabriel Valley Council of Governments 2021 618 Ahm ed Badawi
Rey Alimoren,
Director of Finance
(626) 962-9292
[email protected]
No N/A X X
County of Contra Costa Community
Services Bureau Child Development
Program
2013 450 Mites h
Desai
Nancy Benavides
Fiscal Officer
(925)681-4268
nbenavidas@ehsd. cccounty.us
No N/A
Hayward Area Recreation
and Park District 2017 350 Mites h
Desai
Anne Maze
Administrative Services Director
(510)881-6707
[email protected]
No N/A
Amador County
Transportation Commission 2019 260 Ahm ed
Badawi
John Gedne
y
Executive Director
(209)267-2282
[email protected]
No N/A
San Mateo Mosquito and
Vector Control District 2018 228 Ahm ed
Badawi
Richard Arrow
Finance Director
(650)344-8592
[email protected]
Yes Yes
Monterey Bay Unified Air
Pollution Control District 2016 200 Mites h
Desai
Rosa Rosales
Administrative Services Manager
(831)718-8019
[email protected]
No N/A
Southern Marin Fire
Protection District 2020 160 Ahm ed
Badawi
Alyssa Schiffmann
Finance Manager
(415)388-8182
[email protected]
No N/A
Port of San Luis
Harbor District 2017 150 Mites h
Desai
Kristen Stout
Business Manager
(805)595-5413
[email protected]
Yes Yes X
Central County
Fire Department 2012 150 Mites h
Desai
Jan Cooke
Finance Director
(650)375-7408
[email protected]
Yes Yes
Central Fire Protection District of
Santa Cruz County 2018 150 Mites h
Desai
Nancy Dannhause
r
Finance Director
(831)479-6842
[email protected]
No N/A
Resource Conservation
District of Santa Cruz
County
2017 150 Mites h
Desai
Sharon Corkrean
Director of Finance
[email protected]
No N/A X
Santa Cruz
Regional 9 - 1 - 1 2016 150 Mites h
Desai
Dennis Kidd
General Manager
(831)471-1038
[email protected]
No N/A
Zayante Fire
Protection District 2017 150 Mites h
Desai
John Stipes
Fire Chief
(831) 335-5100
[email protected]
No N/A

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City of San Carlos Technical Proposal

21 The City desires an audit of the financial records for the City and an expression of an opinion in accordance with generally accepted accounting principles on the fairness of presentation of financial statements for the fiscal years ending June 30, 2023 through 2025, with the option of extending the contract for each of the two (2) subsequent fiscal years.

The Firm will:
 Express an opinion on the fair presentati on of its basic financial statements which includes but is not limited to the financial statements of governmental activities, the business-type activities, each major fund and all aggregate remaining fund information in conformity with generally accepted accoun ting principles in the United States of America.
 Express an "in-relation-to" opinion on the fair presentation of its combining and individual non-major and fiduciary fund financial statements and schedules in conformity with generally accepted account ing principles. The Firm will provide an “in-relation-to” report on the supporting schedules contained in the Annual Comprehensive Financial Report based on the auditing procedures applied during the audit of the basic financial statements and schedules.
 Provide an “in-relation-to” report on the schedule of expenditures of federal awards based on the auditing procedures applied during the audit of the financial statements.  Perform the audit in accordance with gener ally accepted auditing standards accepted in the United States of America, applic able to the financial audit contained in the Government Auditing Standards issued by the Comptroller General of the United States and the provisions of the Unif orm Guidance, Audits of States, Local Governments and Non-Profit Organizations.
 Perform limited procedures on supplementary information required by the Government Accounting Standards Board.
 Issue the following reports, following the co mpletion of the audit of the fiscal year’s financial statements:
 Independent Auditor’s Report on Fi nancial Statements and Schedule of Expenditure of Federal Awards
 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
 Independent Auditor’s Report on Comp liance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with the Uniform Guidance
 Schedule of Findings and Questioned Costs
 Auditor’s Communication with Those Charged with Governance  Annual Comprehensive Financial Re port following the requirements and guidelines of the GFOA award program
 GANN Limit Agreed-upon Procedures
 State Controller’s Report
 Transportation Development Act (TDA)
 City Measure A Compliance
 City Measure W Compliance
 Successor Agency Audit
 C/CAG Audit
 C/CAG Single Audit
 C/CAG Measure M
 C/CAG AB1546
 C/CAG State Transportation Improvement Program (STIP)  Commute.org Audit and Related Reports
 Commute.org -Measure A
Understanding
of Services to be
Provided

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City of San Carlos Technical Proposal

22  Provide special assistance to the City as needed.
 Retain all working papers and reports at the audit firm’s expense for a minimum of 7 years. In addition, make working papers av ailable to the City and/or any government agency as appropriate.

Should any conditions be discovered requiring corrective action, the Firm will provide a detailed description of the findings and recommended actions as to their resolution.

The Firm will submit a report to the City ’s Council and management detailing auditor’s responsibility under generally ac cepted auditing standar ds, significant accounting policies, management judgments and accounting statement s, significant audit adjustments, other information in documents containing audited financial statements, disagreements with management, management consultations with other accountants, major issues discussed with management prior to retention, difficulties encountered during the audit, and any significant deficiencies or material weaknesses found during the audit. Non-material instances of noncompliance will be reported in a separate management letter, if appropriate, along with any other observations or recommendations determined to be informative to City Management.

The Firm will be available to provide advice a nd counsel regarding significant matters during the year.

The Firm’s Partner and Staff welcome the opportunity to make presentations to the City Council and will be ready to respond to questions from the Council and citizens of the City.

Objectives of Our Services
The basic objective of our audit of the City is to conduct an examinat ion of the financial statements in accordance with generally ac cepted auditing standards and to express our opinion on the fairness of presentation of such financial statements in conformity with generally accepted accounting principles.

Additionally, we believe that another real value of our audit lies in meeting other objectives at no additional cost. The following are other objec tives of our services that have important benefits to the City:
 To offer substantive observations and re commendations relating to accounting and operating control policies and procedures.
 To identify opportunities for operating effi ciencies and isolate candidate activities for cost reduction opportunities.
 To perform a professional audit in an efficient and effective way to minimize disruption to the office operations.
 To offer ongoing advisory services to assist in the running of the operation and implementation of improved operating procedures.

The engagement will be conducted within the framework of the Firm's quality control program which includes the use of audit programs, careful planning, use of computerized audit software and internal control evaluation and documentation software, and objective review procedures.

On-site staff will use Firm supplied portable computers and printers.

Audit Approach
The specific audit approach has been designed to efficiently and effectively address the audit requirements of the City, to perform the audit of the City’s financial records in a timely manner with minimal disruptions to office operations, and to meet the City’s timeline.

The audit will be conducted in accordance with:
1) Generally accepted auditing stand ards established by the AICPA. 2) The standards contained in Government Auditing Standards issued by the GAO. 3) Provisions of the Single Au dit Act and the Uniform Guidance. 4) Requirements issued by the California State Controller’s office. 5) Other requirements as required.

Specific Audit
Approach

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City of San Carlos Technical Proposal

23 We will conduct the necessary audit steps to perform:
 Planning of the engagement
 Evaluation of the existing internal cont rol environment to determine degree of risk of material misstatement
 Determination of degree of compliance with laws, regulations, grant provisions, and City approved policies
 Assessment of potent ial fraudulent issues
 Validation of account balances
 Verification of reasonableness of management estimates Technical Approach
We use an industry specific audit approach tailored to governmental entities. Our governmental audit approach addresses the sp ecial risks and circumstances of local governments. As a result, the audit is conducte d efficiently and effectively with minimal disruption to your staff.

The core of our governmental technical audit approach can be summarized as follows:

1. Planning, Understanding and Communication:

Based on our previous audit experience, using the budget, organizational charts, manuals and other financial information systems and our knowledge of how governments work, we will obtain an insight to the specific conc erns and sensitivities of the City. Our understanding is updated continuously through our year-round contact and communication efforts. We will agree on comm on audit objectives and expectations with management before audit work begins and, throughout the audit, will meet regularly with management to discuss audit issues and to gather feedback.

2. In-Depth Review of Systems and Controls:

We have developed diagnostic reviews whic h enable us to evaluate your systems and controls, and to provide management with constructive feedback. Combined with our knowledge of the City and understanding and experience with the City’s accounting software, our control review will form the basis of our audit risk assessment. We will utilize the COSO approach in our evaluation of the City’s internal processes to identify potential control deficiencies. In future years, we will update our underst anding through similar procedures.

3. Risk-Based Customized Testing Program:

Our audit approach is tailored to governmental applications. We will use audit programs specifically designed to address the operational environment of governmental entities. Our approach will identify potential control risks and the opportunities for risk of material misstatements and fraud. We will evaluate t he various risk assessments and identify the potential risks relating to the:
 Balance Sheets / Statement of Net Position
 Statement of Revenues and Expendi tures / Statement of Activities  Presentation
 Disclosure
Our audit procedures will then be developed to address these risk areas.

4. Expanded Interim Fieldwork:

Timeliness and audit efficiency is enhanced by performing extensive interim work.

Partners, managers and s enior staff work with City sta ff to identify and resolve potential audit issues early. Accordingly, the amount of audit work to perform at year end is minimized. Because our audit staff is familiar with the operations before year-end fieldwork begins, disruption of accounting staff is minimized.

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City of San Carlos Technical Proposal

24 5. Smooth Transition:

Our testing program focuses on audit risks id entified by our understanding of the City’s operations. We will work with t he accounting staff to identify the most effective ways to address our objectives. Communication bet ween the members of the audit engagement team and City staff will be fluid and continuous.

6. Sample Size and Sampling Techniques:

Our audit approach will include sampling activi ties. Population size and the level of assurance to be derived from a particular test will dictate the sample size. We use sampling in our audit approach to compliment skilled judgment and knowledge of the particular situation. Our sample size will range normally from 25 to 60 items.

7. Automated Systems:

We will evaluate controls over the IT functions to assess control risk. We intend to test controls for purposes of reliance. Our review procedures will evaluate controls over:
 Security Management
 Logical and Physical Access
 Configuration Management
 Segregation of Duties
 Contingency Planning
In addition, we will review controls over:
 Input, processing, output, master data
 Application interface
 Data management system interface

8. Analytical Procedures:

We use analytical procedures in several as pects of our audit. Extensive knowledge and industry background are required for effectiv e analytics, and our staff possesses the appropriate experience and knowledge for the City to benefit from these procedures.

9. Approach to be Taken in Determining Laws and Regulations Subject to Audit Test Work:

We continuously refer to specific regulati ons, compliance supplements, state guidelines and contracts currently in force. We perform the procedures required related to laws and regulations, using inquiries, observations and sampling techniques. Some of the laws and regulations that we believe may be applicable to the City are the requirements of the California Public Utilities Commission, Si ngle Audit Act and other applicable laws and regulations, including the California Governme nt Code, provisions of applicable Grant guidelines, California Constitution GANN Limi t requirements, requirements of local measures, Child Care Program compliance requirements, etc.

10. Report Format:

We will meet with City Management to review report formats. Any report format changes will be made in conjunction with approval from City Management.

11. Work Plans:

The detailed work plans will be designed to efficiently and effectiv ely address the audit requirements of the City in accordance wi th generally accepted auditing standards, to perform the audit of the City’s financial records in a timely manner with minimal disruptions to office operations, and to meet the City’s timeline.

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25 12. Adjusting Journal Entries:

We will discuss and explain proposed audit adjus ting entries with the City’s designated Finance Department personnel prior to recording. Audit adjusting entries will be provided in a format showing the lowest level of pos ting detail needed for data entry on the City’s general ledger system.

13. Listing of Schedules and Tables (anticipated to be prepared by the City):

Based on preliminary inquiries made with management and City staff and review of documents, we will tailor a list of schedules, tables, and other reconciliations required for the audit. We will take into account as much as possible reconciliations already prepared by the City for day to day operations and reporting, as well as any reports that are system generated to limit the need for additional City staff hours.

The following is a listing of some of the si gnificant reconciliations and schedules that we would normally expect the City to provide to us in assisting us in conducting our fieldwork.  Trial Balance
 Annual Comprehensive Financial
Report Account Roll Up
Schedules
 Budget to Actual Reports
 Bank Reconciliations
 Listing of manually prepared
journal entries posted
 Summary of Investments held by
the City
 Capital Asset Schedules
 Long Term Debt Schedules
 Debt amortization schedules &
Calculations of deferred amounts
 Calculations of any debt
covenants amounts or
percentages
 Schedule of Leases
 Schedule of Expenditures of
Federal Awards
 Analysis of Deferred Inflows of
Resources and Deferred
Outflows of Resources
 Reconciliation of Receivables to
subsidiary ledgers
 Calculations for estimate of
allowance for uncollectible
accounts
 Loans Receivable Schedules
 Reconciliation of Significant
Revenue Accounts
 Utility billing R egisters and Fee
schedules
 Compensated Absences
Schedules and Copies of Related
Policies
 Claims Payable Schedules
 Pension and OPEB Roll Forward &
Supporting Schedules
 GASB 54 Fund Balance Roll
Forward Schedule
 Interfund Transaction Schedules

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City of San Carlos Technical Proposal

26 The Firm maintains a variety of specialized software packages during the audit that enable us to perform an efficient, thorough, and timely au dit and keeping time demands on City staff to a minimum.

Trial Balance Management and Financial Statement Preparation ProSystem Fx Engagement allows us to import and manage multiple years of trial balance data including budgetary information, create mult iple account groupings, generate reports, post journal entries proposed during the audi t (including GASB 34 conversion entries), and link information directly to the financial statements. This gives us the ability to:
 Generate immediate trend and other compar ative analysis of trial balance and budget data prior to the start of the audit. This allows us to identify potential issues and make inquiries early in the audit
 Link the financial statements and footnotes pr ior to the start of the audit allowing us to have majority of the financial statements (including budgetary comparison schedules and other supplementary information) prepar ed at the time the trial balance is uploaded
 Audit adjustments or City adjustments prov ided during the audit are automatically reflected in the financial statements
Audit Request Management and Document Exchange
CCH Engagement Organizer (“Organi zer”) is a virtual “Prepared by Client (PBC) List” that streamlines the process of requesting, rece iving, and keeping track of documents. The Organizer is an integr ated cloud-based request list that helps to facilitate the engagement through more seamless collaboration between th e Firm and our clients. By utilizing the Organizer, the City can do all of the following in one secure virtual environment:
 Attach files of any type to document requests
 Easily track the status of document requests that are ei ther pending, completed by the City, accepted by us, or rejected by us
 Access templates and documents from us that require completion  Have multiple City staff get involved and assist in the audit process  Participate in a dialog with us for questions and notes We have found that the use of the Organizer has helped our clients be always informed as to the status of their audit, and not be surprised with new requests or follow up on outstanding requests previously provided.

Computer Aided Audit Tools (CAATs)
The Firm’s data analytics software enables our Engagement Team to perform more than 150 Computer Aided Audit Tools (or “CAATs”). CCH Teammate Analytics gives us the ability to perform advanced data analysis and increase efficiency. By utilizing this software, we can:
 Immediately visualize and analyze 100% of account populations with graphs, charts and statistics to identify anomalies
 Make fewer sample selections that are targeted to problematic areas  Quickly analyze transactional data for:
o Duplicate records
o Missing transactions
o Transaction sequence
o Unusual items
 Compare excel worksheets for changes or differences
 Generate immediate testing samples
 Perform regression analysis
 Filter and extract data from City reports
Use of
Technology in
the Audit

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City of San Carlos Technical Proposal

27 Audit Planning, Risk Assessment, and Audit Programs
Our firm utilizes CCH Know ledge Coach, which is an ex pert system that adapts and customizes our audit approach specifically based on the City’s structure, operating environment, specific transactions, and identified risks or matters to be addressed in the audit.

The software is frequently updated for new indu stry trends and audit requirements. Included in the software is a continuous diagnosis of audi t forms that identifies missing information, procedures, or any conflicts that need to be add ressed prior to issuance of the audit report.

We have found that this audit tool greatly benefits our audit clients in the following ways:
 Removal of standardized audit steps and pr ocedures that do not add value to the audit  Targeted audit procedures focusing on ris ks and accounts specific to the City’s operations
 Audit is always performed in accordance with audit standards especially the risk assessment standards
 Maximizing audit efficiency having less City staff time dedicated to gathering information or responding to inquiries by focusing on material issues  Automatic self-diagnostics ensure no audi t steps are missed, gua ranteeing a quality audit
Research Tools
We maintain multiple research software packages that are always kept up to date to ensure compliance with accounting and auditing standards, and are also a resources for us to provide guidance to our clients. In addition to acco unting and audit literature, we have access to interactive disclosure checklists that incl ude sample footnote disclosures and financial statements.

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City of San Carlos Technical Proposal

28 2023
Period

Audit Tasks

March

- Planning and Administration
 Review and obtain copies of key work papers of prior audit firm.  The entrance conference shall be held with City staff. The purpose of this meeting will be to discuss prior audits and the interim work to be performed. This meeting will also be used to establish overall liaison for the audits and to make arrangements for work space and other needs
 Review and evaluate the City's ac counting and financial reporting.

Prepare an overall memo of recommendations, potential issues, and suggestions for improvements
 Prepare overall memo to the City confirming audit procedures, timing, and assistance
 Prepare detailed audit work plan and audit programs, audit budget and staffing schedule, and list of schedules to be prepared by the City staff
 Send the Organizer to the City t hat will include all request items considered to be necessar
y for the audit

March

- Internal Control Evaluation
 Meeting with City Manager and Department Heads of other departments with large operating budgets or which have significant federal grant expenditures
 Attending City Council meetings
 Meeting with off-site locations
 Meeting with key Finance Department personnel
 Obtain and document understandi ng of key internal control systems through walk-thr oughs, interviews of staff, and review of supporting documentation
o General ledger system
o Budgeting system
o Revenue, utility billing, accounts receiv able, and cash collections
o Purchasing, expenditures, accounts payable, and cash
disbursements
o Payroll
o Federal Financial Assistance
o Other systems
 Identify control risks
 Evaluate IT control environment
 Perform testing of the internal control system and evaluate the effectiveness of the City’s systems. Select large dollar and random samples of transactions in key operating systems. Sample size to meet required level for deter mined degree of risk. Review supporting documentation of selected transactions, evaluate adequacy of support and approvals, and conclude on degree of adherence to accuracy and compliance with City policies  Conduct fraud assessment procedures
 Assess degree of risk for material misstatement
 Provide to the City’s management a memo concerning
mana
gement letter points and identify issues, if any
Audit
Schedule

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City of San Carlos Technical Proposal

29 2023
Period

Audit Tasks

March - Other Tasks
 Review minutes of City Council meetings and other key committees  Perform preliminary substantive procedures, which would include tests of:
o Vendor and contractor payments
o Payroll expense
o Utility billing
o Pension and OPEB testing
o Capital asset acquisitions
o Journal entries
o Retrospective review of accounting estimates
 Financial statement database ma nagement and other setup, in addition to drafting of all necessary report templates
 Preliminary Single Audit and other compliance testing  Coordinate with City staff and prepare of all appropriate confirmation requests including:
o Bank accounts
o Investment pool accounts
o Accounts receivable
o Federal grants
o Revenue from governmental agencies
o Bond and other debts
o Pension plan
o Attorney letters
o Others, as required
 Update the Organizer with any additional request s that will be needed for the City's audit
 Provide the City with audit plan and list of year-end audit schedules  Hold progress conference with City Management
 Hold exit conference with Cit y Management

September

- Final Fieldwork

 Entrance conference with City Management
 Follow-up on all outstanding confirmations
 Verify and validate account balances by reviewing supporting documentation including invoices, vouchers, council resolutions, minutes, and other documents, as required
 Perform analytical review of rev enue and expenditures. Determine reason for material differences between budget and actual  Perform a search for unrecor ded liabilities by reviewing disbursements subsequent to June 30, testing terms of contractual obligations, and interviewing City staff
 Perform review of subsequent events by discussions with City Management and update all minutes of City Council and key committees

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City of San Carlos Technical Proposal

30 2023
Period

Audit Tasks

- Single Audit Compliance
 Entrance conference with City Management
 Obtain Federal Financial Assistance Schedule
 Determine grants to be consider ed as major programs including clusters
 Perform audit tests of major grant programs and compliance with Federal Law and Regulations
 Review grant documents, select sufficient number of transactions to test for compliance of Federal Requirements
 Coordinate Single Audit efforts with the Financial Audit efforts  Communicate findings to City Management
 Other Compliance

September -
October

- Audit Reports
 Complete drafts of City’s Annual Comprehensive Financial Report  Prepare draft of Single Audit R eports concerning internal control structure, compliance with laws and regulations, and administering of federal financial assistance programs
 Prepare other reports as required
 Provide revised final drafts of a ll required reports to the City for approval

October -
November

- Final City Audit Reports, Financial Statements, Single Audit Reports, and other reports delivered in October 2023.
- Audit Presentation to Council

November -
December

- Single Audit Report package submitted to Federal Audit Clearinghouse

January 2024

- State Controller’s Reports delivered and submitted

Estimated Hours by Audit Phase
Position Planning
Interim
Fieldwork
Year End
Fieldwork Reporting Total
Partner 15 39 26 7 87 Audit Manager 13 61 67 10 151 Audit Senior 27 97 104 14 242 Professional Audit Staff - 168 154 20 342 Administrativ e Assistant 10 16 - 17 43 Total 65 381 351 68 865

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City of San Carlos Technical Proposal

31 Identification of Anticipated Potential Audit Problems We do not anticipate that there will be any audit problems at the City. However, the following are some areas that we will carefully investigate and monitor during our audit procedures:
 Financial Reporting:
 Review and evaluate that the City’s Annual Comprehensive Financial Report are in compliance with current reporting and disclosures requirements issued by the GASB and GFOA.
 Review Annual Comprehensive Financial Report for financial reporting conformance awards issued by CSMFO and GFOA.
 Review and evaluate degree of complianc e with the various GASBs in effect.  Review degree of compliance with infr astructure obligations and regulatory provisions.
 Internal Control Structure:
 Review and evaluate the City’s internal control functions and ascertain compliance with proper internal control philosophies.
 Review computer system processes and controls and evaluate adequacy of the control environment.

Several new GASB pronoun cements will become effective ov er the time period of this proposal. As such, specific attention will be provided to determine the proper implementation of these new pronouncements. A list of kn own new pronouncements with implementation dates that fall within this proposal period are as follows:
2023
 Statement 91 – Conduit Debt
 Statement 94 – Public-private Partnerships
 Statement 96 – Subscription-Based Information Technology Arrangements  Statement 99 – Omnibus 2022
2024
 Statement 100 – Accounting Changes a nd Error Corrections—an amendment of GASB Statement No. 62
2025
 Statement 101 – Compensated Absences

Discussion of
Relevant
Accounting
Issues

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City of San Carlos Technical Proposal

32 A client relationship with the City will be of great value to our Firm and we welcome the opportunity to develop a long-term relationship with the City. We are committed to:
 Rendering the highest standard of service
 Developing a long-term working relationship dedicated to meeting the needs of the City  Assisting the City in operational issues
 Producing a quality end-product
We have the technical qualifications and experi ence to provide the level of service desired and expected by the City and stand ready to provide our knowledge and experience for the benefit of your organization.

We would like to express our appreciation to t he City and to its Staff for allowing us the opportunity to submit a proposal to perform pr ofessional auditing services. We are available, at your convenience, to discuss any aspects of our proposal.

Thank you for allowing us to present our Firm to you.

* * * * * * * * * * * * * * * * *

Conclusion

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City of San Carlos Technical Proposal

33 References

1) City of Berkeley
 Scope of Work: Annual Comprehensive Financial Report, Gann Limit, SAS114, Measure B (Alameda County), Vehicle Registration F ee Audit (Alameda County), Due Diligence Reviews for the RDA Successor Agency
 Engagement Partner: Ahmed Badawi (2008 – 2019), Mitesh Desai (2020- Present)  Address: 2180 Milvia Street, Berkeley, CA 94704
 Principal Contact:

Henry Oyekanmi
Finance Director
(510)981-7332
[email protected]

2) City of Antioch
 Scope of Work: Annual Comprehensive Fi nancial Report, SAS 114, GANN Limit, Single Audit, Antioch Public Financing Authority, Antioch Area Public Facilities Financing Agency  Engagement Partner: Ahmed Badawi (2005 – 2019), Mitesh Desai (2020- Present)  Address: 200 H Street, Antioch, CA 94509
 Principal Contact:

Dawn Merchant
Finance Director
(925)779-6135
[email protected]

3) City of Folsom
 Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit, SAS114, Folsom Successor Agency Report, Public Financing Authority Report, Folsom Ranch Financing Authority Report
 Engagement Partner: Ahmed Badawi (2019 – Present)
 Address: 50 Natoma Street, Folsom, California 95630
 Principal Contact:

Stacey Tamagni
Finance Director
(916)461-6712
[email protected]

4) City of Petaluma
 Scope of Work: Annual Comprehensive Fina ncial Report, Transportation Development Act Fund, SAS 114
 Engagement Partner: Ahmed Badawi (2019 – Present)
 Address: 11 English St, Petaluma, CA 94952
 Principal Contact:

Corey Garberolio
Finance Director
(707)778-4357
[email protected]

5) City of Lafayette
 Scope of Work: Annual Comprehensive Fina ncial Report, Single Audit, Gann Limit, TDA, Lamorinda Fee and Finance Authority Report, Lamorinda School Bus Transportation Agency Report
 Engagement Partner: Ahmed Badawi (2020 – Present)
 Address: 3675 Mount Diablo Blvd., #210, Lafayette, CA 94549  Principal Contact:

Jennifer Wakeman
Assistant Administrative Services Director
(925)299-3213
[email protected]

Appendix A

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City of San Carlos Technical Proposal

34 Exceptions to the Contract
With regard to the Agreement for Professional Services, we would like the following items to be edited:

Attachment C, Agreement for Professional Services, 8. Documents, we would like to edit the paragraph as follows:

8. Documents. Unless such property is proprietary in nature, all documents, plans, drawings, renderings, and other papers, or copies th ereof, as finally rendered, prepared by CONSULTANT pursuant to the terms of th is Agreement, shall, upon preparation and delivery to CITY, become the property of CITY.

Appendix B

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City of
San Carlos

SEALED DOLLAR COST BID PROPOSAL

For Professional Auditing Services for
the City of San Carlos
For fiscal years ending June 30, 2023 through 2025,
with the option of extending the contract for each of
the two (2) subsequent fiscal years.

February 10, 2023

Contact Person:

Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Phone: (510) 768-8244
Fax: (510) 768-8249
E-mail: abadawi
@b-acpa.com

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City of San Carlos Cost Proposal

1 Name of Firm and Certification

Name of Firm: Badawi & Associates
Address: 2855 Telegraph Avenue, Suite 312
City, State, Zip: Berkeley, CA 94705
Contact Name: Ahmed Badawi
Contact Telephone Number(s): 510-768-8244
Contact Fax Number(s): 510-768-8249
Contact E-mail Address: [email protected]

I, the undersigned, certify I am duly authorized to repr esent the above named firm and am empowered to submit this bid. In addition, I certify I am authorized to contract with the City on behalf of the above named firm.

The Firm will honor the prices listed in this proposal for 180 days from the submittal deadline.

President February 10, 2023
Signature Title Date

Ahmed Badawi
Name

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City of San Carlos Cost Proposal

2 AUDIT WORK COST PROPOSAL

Serv ice
2023
Hours 2023 2024 2025
2026
Optional
Year
2027
Optional
Year
Financial Statements Audit 445 41,170$ 42,285 $ 43,620 $ 45,185 $ 46,455 $ Single Audit 33 3,030 3,155 3,165 3,255 3,435 GANN Limit Agreed-upon Procedures 5 505 555 585 615 645 State Controller’s Report 19 1,745 1,855 1,965 1,870 1,970 Transportation Dev elopment Act (TDA) 26 2,455 2,430 2,385 2,525 2,565 City Measure A Compliance 31 2,835 2,900 3,075 3,255 3,210 City Measure W Compliance 25 2,335 2,250 2,385 2,430 2,565 Successor Agency 42 3,855 4,020 4,260 4,255 4,390 C/CAG Audit 79 7,315 7,475 7,620 7,860 8,295 C/CAG Single Audit 31 2,835 2,900 3,075 3,255 3,210 C/CAG Measure M 24 2,185 2,250 2,295 2,430 2,295 C/CAG AB1546 22 2,025 2,165 2,055 2,080 2,195 C/CAG State Transportation Improvement
Program (STIP) 21 1,950 2,165 2,055 2,080 2,195 Commute.org Audit and Related Reports 49 4,565 4,755 5,040 4,955 5,230 Commute.org -Measure A 13 1,165 1,205 1,275 1,350 1,425 Total 865 79,970$ 82,365 $ 84,855 $ 87,400 $ 90,080 $

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City of San Carlos Cost Proposal

3 AUDIT WORK COST PROPOSAL

Name of Firm Badawi & Associates
Address 2855 Telegraph Avenue, Suite 312
Berkeley, CA 954705
Contact Name Ahmed Badawi
Contact Phone # 510-768-8244 Fax # 510-768-8249
Contact E-mail [email protected]
I, the undersigned, certify I am duly authorized to represent the above named firm and am empowered to submit this bid. In addition, I certify I am authorized to contract with the City of San Carlos on behalf of the above named firm.

President February 10, 2023
Signature Title Date
Ahmed Badawi
Name (print)

Partner 150 $ 160 $ 165 $ $ 170 $ 175 Audit Manager 120 130 135 140 145 Audit Senior 85 95 105 115 125 Professional Audit Staff 75 85 90 95 100 Administrativ e Assistant 60 75 75 80 85 Total Maxium Cost for the Audit
Auditors Quoted Hourly Billing Rate
90,080$
2026-27
(Optional
Extension)2022-23 2023-24 2024-25
2025-26
(Optional
Extension)Position
79,970$ 82,365 $ 84,855 $ 87,400 $

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City of San Carlos Cost Proposal

4 Manner of Payment:

Each Engagement Team member maintains detailed ti me sheets describing work performed, date of work, and amount of time spent on each task for the Engagement. The Firm will bill the City after completion of each phase of the audit and bill the City up to a maximum of 90%. The remaining 10% of the proposal amount will not be due until all final reports are del ivered and accepted by the City. T he City can anticipate three billings as follows:

Work Performed
% of Proposal
Amount

For interim work 45%
For year-end work 45%
At presentation and acceptance of final reports 10%
Total 100%

Rates for Additional Professional Services:

Any services outside the scope of our engagement will be promptly identified before the services are rendered.

Upon mutual agreement, the out-of-scope services will be separately billed at our standard hourly rates. While it can be difficult to simply state hour ly rates, as often times the needs of the client and the specific tasks directly impact the billing rates for our services, we want to prov ide the following inform ation regarding our published billing rates:

Position Hourly Rate
Partner $ 200
EQR 200
Mana ger 150
Senior 125
Staff 100
Admin. 75

Our Standard Hourly Rates are adjusted annually by 3% for Cost of Living and Inflation Adjustments

Conclusion:

A client relationship with the City will be of great value to our Firm and we welcome the opportunity to develop a long-term relationship with the City. We are committed to:
* Rendering the highest standard of service.
* Developing a long-term working relationship dedicated to meeting the needs of the City. * Assisting the City in operational issues.
* Producing a quality end-product.

We have the technical qualifications and experience to provide the level of service desired and expected by the City and stand ready to provide our knowledge and experience for the benefit of your organization.

We would like to express our appreciation to the City and to its Staff for allowing us the opportunity to submit a proposal to perform professional auditing services. We are available, at your co nvenience, to discuss any aspects of our proposal.

Thank you for allowing us to present our Firm to you.
* * * * * * * * * * * * * * * * *

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Deny Claim of Muhammad Hayatullah.

RECOMMENDATION:

Staff recommends that the City Council deny the claim of Muhammad Hayatullah as recommended by the Sedgwick representative.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

This item is coming before the Council to act on the claim submitted by Muhammad Hayatullah.

Staff recommends that the City Council deny the claim based on Sedgwick’s guidance.

The Tort Claims Act. California Government Code Sections 900, seq., mandates that all claims for money or damages against a public entity must be presented in writing to the public entity prior to filing suit. Generally, claims concerning personal injury, wrongful death, damage to personal property, or damage to crops must be presented to the public within six (6) months of the accrual of the claim. All other claims, principally claims on contracts and damage to real property, are subject to a one-year statute of limitations for presentation of the tort claim. Once a tort claim is received by the public entity, the entity has forty-five (45) days to act on the claim. A claim can be settled or rejected. If no action is taken within 45 days, the claim is deemed rejected by operation of law on the last day.

Claims Processing in San Carlos. When the City receives a claim, the claim is immediately forwarded to claims examiners at Sedgwick for investigation. After Sedgwick investigates the claim, Sedgwick provides a recommendation to the City on the handling of the claim.

About Sedgwick. Sedgwick is a leading global provider of technology-enabled risk, benefits and integrated business solutions. In July 2019, Sedgwick acquired York Risk Services Group (“York”). York was originally hired through the Pooled Liability Assurance Network Joint Powers Authority (“PLAN JPA”), and Sedgwick will continue claims administration services to provide claims administration services to the City. The City Council approved the City’s participation in the PLAN JPA (previously known as the Association of Bay Area Government Pooled Liability Assurance Network or “ABAG PLAN”) on November 27, 2017 and designated the Administrative Services Director and Senior Management Analyst as primary and alternate PLAN JPA Board members.

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ANALYSIS:

Muhammad Hayatullah filed a claim against the City for damages to his vehicle when he was driving at or near Old County Road and Commercial Street. The claimant alleged that at 5:45 p.m. on December 22, 2022, he drove over unsecured construction metal, which resulted in him getting a flat tire and a bent rim.

This does not appear to be a case of liability against the City. No City staff were working at the loss location on the date of loss. A contractor, Preston Pipeline, had a permit to work in the loss location for potholing as a part of the Rule 20 underground work done for the Kelly-Moore development. Preston Pipelines was issued an encroachment permit which included the permit holder’s agreement to hold the City harmless from any liability or responsibility resulting from any work under the permit. Preston Pipelines also secured a general liability policy and additionally endorsed the City. As such, Sedgwick recommends formal rejection of Muhammad Hayatullah’s claim and will tender the claim to Preston Pipelines.

The Council’s rejection of this claim does not prohibit staff or the staff of Sedgwick from continuing to work with the claimant to resolve the dispute.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Deny claim of Muhammad Hayatullah; or

2. Do not deny claim of Muhammad Hayatullah; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Hayatullah Claim Form

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Altec Industries, Inc. for the Purchase of a Sign Truck in the Amount of $196,087.66.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute an agreement with Altec Industries, Inc. for the purchase of a sign truck in the amount of $196,087.66.

FISCAL IMPLICATIONS:

There is no fiscal implication associated with this recommendation, nor is additional appropriation necessary.

Funding for the sign truck is included in Equipment Replacement Fund (Fund 10), and was budgeted to be purchased this fiscal year.

Fund 10 is used for the anticipated replacement of general equipment and inventory needs. Items included in this fund are vehicles, park equipment, and computers and networking equipment.

BACKGROUND:

A sign truck has a “boom” or mast and a bucket at the end of the boom to raise a worker off the ground. Typically, this truck is used to change out street lightbulbs, put up banners on poles, change out street signs on traffic signals, and help to reach up and over tree canopies to perform light trimming, gutter cleaning, etc. They are safer to use than erecting scaffolding or using a scissor lift.

The City’s current sign truck is 20 years old and needs replacement. The truck is experiencing maintenance issues that are becoming more and more costly to repair. The current truck does not have the boom lift option, so the City pays electrician rates to change our overhead signs and lights. It is costly to hire electricians and we cannot use them to clean gutters or trim trees.

Under Chapter 3.12, Purchasing of City Supplies and Services, of the San Carlos Municipal Code, any contracts (including amendments) less than $75,000 can be approved by the City Manager under his signing authority but those greater than $75,000 must be approved by City Council. The

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total cost of this agreement is above the City Manager’s signing authority and requires approval by City Council.

ANALYSIS:

A sign truck is necessary for the City’s street maintenance program, and the City’s current 2002 Dodge Ram 2500 sign truck was due for replacement in 2022.

Altec Industries, Inc. (“Altec”) is the leader in building custom boom trucks to fit specific needs.

They work with all truck manufacturers, build custom boxes, different size bucket options, multiple size truck options, etc. Altec is being used to equip the truck to fit our needs. Altec is a leader in the boom/bucket custom truck industry. Many other agencies such as Cal West, PG&E, Comcast, and AT&T use Altec to provide solutions to fit their specific needs.

Altec was selected as they provide the most complete options, will make the equipment for our specific truck model chassis, can provide a medium size truck to fit within our fleet, and are a reliable well-known manufacturer for custom boom/bucket lift trucks. As such, staff determined Altec Industries, Inc. to be the sole source supplier of the sign truck based on the City’s standards and specifications and in accordance with Section 3.12.220 of the Municipal Code.

ALTERNATIVES:

Options available to the City Council include:

1. Adopt a Resolution authorizing the City Manager to execute an agreement with Altec Industries, Inc. for the purchase of a sign truck in the amount of $196,087.66; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida, Public Works Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Altec Industries Proposal

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RESOLUTION NO. 2023–_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH ALTEC INDUSTRIES, INC. FOR THE PURCHASE OF A SIGN TRUCK IN THE AMOUNT OF $196,087.66.
___________________________________________________________________________ WHEREAS, a sign truck has a “boom” or mast and a bucket at the end of the boom to raise a worker off the ground, and is typically used to change out street lightbulbs, put up banners on poles, change out street signs on the traffic signals, and help to reach up and over tree canopies to perform light trimming, gutter cleaning, and more; and WHEREAS, the City’s current sign truck needs to be replaced as it is now 20 years old and it is experiencing maintenance issues that are becoming more and more costly to repair; and WHEREAS, the City’s current truck does not have the boom lift option so it is necessary to pay electrician rates to change overhead signs and lights, and we cannot use electricians to clean gutters or trim trees; and
WHEREAS, Altec Industries Inc. (“Altec”) is the leader in building custom boom trucks to fit specific needs, and they work with all truck manufacturers, build custom boxes, different size bucket options, multiple size truck options, etc; and
WHEREAS, Altec is a leader in the boom/bucket custom truck industry, and many other agencies such as Cal West , PG&E, Comcast, AT&T use them to fit their specific needs; and

WHEREAS, Altec was selected as they provide the most complete options, will make the equipment for our specific truck model chassis, can provide a medium size truck to fit within our fleet, and are a reliable well-known manufacturer for custom boom/bucket lift trucks; and WHEREAS, staff determined Altec to be the sole source supplier of the sign truck based on the City’s standards and specifications under Section 3.12.220 of the San Carlos Municipal Code; and
WHEREAS, the purchase of this truck has been included in the budget as part of the Equipment Replacement Program; and
WHEREAS, the purchase is consistent with Section 3.12.170 of the San Carlos Municipal Code, which governs purchases of $75,000 or more.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of San Carlos hereby authorizes the City Manager to execute an agreement with Altec Industries, Inc. for the purchase of a sign truck in the amount of $196,087.66.
* * * * *

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I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of March 2023, by the following vote:

AYES, COUNCILMEMBERS:______________________________________________ NOES, COUNCILMEMBERS:______________________________________________ ABSENT, COUNCILMEMBERS:______________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Mission Valley Ford and Authorizing an
Appropriation from the Wastewater Fund 0006 (Sewer Fund) Unassigned Fund Balance for the Purchase of a Dump Truck in the Amount of $122,028.44.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute an agreement with Mission Valley Ford and authorizing an appropriation from the Wastewater Fund 0006 (Sewer Fund) unassigned fund balance for the purchase of a dump truck in the amount of $122,028.44 (Attachment 2).

FISCAL IMPLICATIONS:

Approval of this Resolution will require an appropriation from the Sewer Fund Unassigned Fund Balance in the amount of $122,028.44. There are sufficient funds available to accommodate this request.

BACKGROUND:

This item is coming before the City Council for approval based on the City of San Carlos Municipal Code requirements. Under Chapter 3.12 Purchasing of City Supplies and Services, any contracts (including amendments) less than $75,000 can be approved by the City Manager under his signing authority but those greater than $75,000 must be approved by City Council. The total cost of this agreement is above the City Manager’s signing authority, requiring approval by City Council.

Although this is a vehicle in the City’s fleet, this purchase would not be funded from the Equipment Replacement Fund 0010. This is a vehicle that was purchased from the Sewer Fund and therefore would be replaced by that same fund. The Sewer Fund is an Enterprise Fund which is financed and operated separately, similar to private business enterprises.

ANALYSIS:

Dump trucks are essential for the City’s sewer maintenance treatment program, and the City’s current 1995 GMC dump truck is due for replacement. As part of the next budget process, staff is reviewing the fleet inventory and replacement schedule and will make proposed adjustments to the budgeted appropriations, if needed.

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Staff solicited price quotes from three vendors for a dump truck adhering to the City’s specifications. Staff selected Mission Valley Ford of San Jose to provide a Ford F750 dump truck (Attachment 2).

ALTERNATIVES:

Options available to the City Council include:

1. Adopt a Resolution authorizing the City Manager to execute an agreement with Mission Valley Ford and authorizing an appropriation from the Wastewater Fund 0006 (Sewer Fund) Unassigned Fund Balance for the purchase of a dump truck in the amount of $122,028.44; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida, Public Works Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Mission Valley Ford Proposal

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RESOLUTION NO. 2023–_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH MISSION

VALLEY FORD AND AUTHORIZING AN APPROPRIATION FROM THE WASTEWATER FUND 0006 (SEWER FUND) UNASSIGNED FUND BALANCE FOR THE PURCHASE OF A DUMP TRUCK IN THE AMOUNT OF $122,028.44.
____________________________________________________________________________ WHEREAS, a dump truck is essential for the City’s sewer maintenance treatment program; and
WHEREAS, the City’s current 1995 GMC dump truck is due for replacement; and WHEREAS, staff solicited quotes from three vendors to supply a new dump truck according to City standards and specifications; and
WHEREAS, the proposal from Mission Valley Ford in San Jose was selected after a thorough evaluation of dump trucks available on the market; and WHEREAS, this purchase is governed by Section 3.12.170 of the San Carlos Municipal Code, which governs purchases of $75,000 or more; and
WHEREAS, there are sufficient funds available in the Sewer Fund to accommodate this request.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of San Carlos hereby authorizes the City Manager to execute an agreement with Mission Valley Ford and authorizes an appropriation from the Wastewater Fund 0006 (Sewer Fund) Unassigned Fund Balance for the purchase of a dump truck in the amount of $122,028.44. * * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of March 2023, by the following vote:

AYES, COUNCILMEMBERS:______________________________________________ NOES, COUNCILMEMBERS:______________________________________________ ABSENT, COUNCILMEMBERS:______________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Adopt a Resolution Authorizing the Updates to the Delegation of Authority to Request Disbursements from the California Employer's Retiree Benefits Trust (CERBT).

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the updates to the Delegation of Authority to Request Disbursements from the California Employer’s Retiree Benefits Trust (CERBT).

FISCAL IMPLICATIONS:

There are no fiscal implications for authorizing the updates to the Delegation of Authority to Request Disbursements from the CERBT.

BACKGROUND:

On August 11, 2008, the City Council adopted Resolution 2008-052 approving an agreement and election to prefund other post employment benefits (OPEB) by establishing an irrevocable trust account with California Public Employees’ Retirement System (CalPERS) to provide retiree benefit trust services, facilitate the funding, investment management and administration of OPEB, and authorizing the City Manager to execute the agreement, transfer funds, and take other actions required by CalPERS.

ANALYSIS:

At the request of CalPERS, the City is updating the City Council’s Delegation of Authority to Request Disbursements from CERBT to update the titles of those delegated within the Finance Division. On October 24, 2022, the City Council approved Resolution 2022-109 to reclassify the Accounting Technician II position to Accountant. Therefore, the language within the Delegation of Authority needs to be revised to incorporate the title change.

The proposed revised language of Exhibit A to the Resolution states “The City Council delegates to the incumbents in the positions of City Manager, Administrative Services Director, Financial Services Manager, and Senior Accountant, Accountant, Accounting Technician I/II, and/or Human Resources Manager authority to request on behalf of the employer disbursements from the OPEB and to certify as to the purpose for which the disbursed funds will be used.” ALTERNATIVES:

The alternatives available to the City Council include:

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1. Adopt a Resolution authorizing the updates to the Delegation of Authority to Request Disbursements from the CERBT; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Rebecca Mendenhall, Administrative Services Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution
Exhibit A to Resolution - Updated CERBT Delegation of Authority to Request Disbursements

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

AUTHORIZING THE UPDATES TO THE DELEGATION OF AUTHORITY TO REQUEST DISBURSEMENTS FROM THE CALIFORNIA EMPLOYER’S RETIREE BENEFITS TRUST (CERBT).

WHEREAS, on August 11, 2008, the City Council adopted Resolution 2008-052 approving an agreement between CalPERS and the City of San Carlos to participate in the California Employer’s Retiree Benefits Trust to prefund the City’s retiree medical benefits obligation; and WHEREAS, on October 24, 2022, the City Council adopted Resolution 2022-109 approving the reclassification of the Accounting Technician II position to Accountant; and WHEREAS, it is now necessary to adopt a Resolution authorizing the updates to the Delegation of Authority to Request Disbursements (attached as Exhibit A) with the new updated titles.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council authorizes the updates to the Delegation of Authority to Request Disbursements from the California Employer’s Retiree Benefits Trust (CERBT).
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of March 2023, by the following vote:

AYES, COUNCILMEMBERS:_______________________________________________ NOES, COUNCILMEMBERS:_______________________________________________ ABSENT, COUNCILMEMBERS:_______________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibit A - Delegation of Authority to Request Disbursements

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California Public Employees’ Retirement System California Employers’ Retiree Benefit Trust (CERBT)
400 Q Street, Sacramento, CA 95811
www.calpers.ca.gov
Delegation of Authority to Request Disbursements
California Employers’ Retiree Benefit Trust
(CERBT)

RESOLUTION
OF THE
(GOVERNING BODY)
OF THE
(NAME OF EMPLOYER)
The delegates to the incumbents
(GOVERNING BODY)
in the positions of and
(TITLE)
and/or
(TITLE)
authority to request on
(TITLE)
behalf of the Employer disbursements from the Other Post Employment Prefunding Plan and to certify as to the purpose for which the disbursed funds will be used.

By
Title
Witness
Date
City Council
City Manager, Administrative Services Director, Financial Services Manager Senior Accountant, Accountant, Accounting Technician I/II, Human Resources Manager
City Council
City of San Carlos

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute a Two- Year Professional Services Agreement with Flock Group Inc. for Flock Safety Automatic License Plate Recognition (ALPR) Cameras/Licenses in the Amount of $130,350 and Authorizing the Approval of the Use of Prior Year Savings from the Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office in the Amount of $130,350 for this Service.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute a two-year professional services agreement with Flock Group Inc. for Flock Safety Automatic License Plate Recognition (ALPR) Cameras/ Licenses in the amount of $130,350 and authorizing the use of prior year savings from the Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office in the amount of $130,350. This system would replace the current ALPR system within the City of San Carlos.

FISCAL IMPLICATIONS:

The City of San Carlos’ total fiscal implication for a 24-month period is $130,350.

The City of San Carlos plans to purchase twenty-four annual Flock Safety camera subscriptions for $130,350, for a two-year subscription, using prior year savings accumulated in the Sheriff’s Office Trust Fund Account. As per Section 3.1.2 of the Agreement with the Sheriff’s Office, if the actual costs of service are less than the calculated totals for the fiscal year, the excess will be set aside in a trust fund for the City to use at its discretion. Per the Sheriff’s Office Fiscal Department, the trust fund balance as of February 28, 2023 is approximately $911,000.

The City of San Carlos currently pays an average of $600 per month for wireless cellular fees for fourteen fixed Vigilant cameras and a $400 subscription fee per camera. With Flock Safety cameras, the cellular fees are included in the contract. The fixed Vigilant cameras would be removed, and the wireless cellular fees would no longer be applicable. As noted above, any savings generated from no longer paying for the Vigilant camera system will be added back to the Trust Fund Account for future use.

Flock Safety offers a standard government rate of $2,500 per Falcon camera and $3,000 per Falcon Flex camera for an annual subscription that is non-negotiable. Twenty-four annual subscriptions will be used to support twenty-four ALPR cameras. There are no per-user license fees such as “seat licenses.” If a camera suffers from a manufacturer defect, Flock Safety will replace the camera at no additional cost. Effective April 1, 2023, the Flock Safety cameras will increase by $500 per subscription. If accepted now, we will have an estimated $12,000 in savings.

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Professional Services and One-Time Purchases
Name Price/Usage
Fee
QTY Subtotal
Professional Services – Standard
Implementation Fee
$350.00 21 $7,350.00
Hardware and Software Products
Annual recurring amounts over subscription term
Name Price/Usage
Fee
QTY Subtotal
Falcon $2,500.00 21 $52,500.00
Falcon Flex $3,000.00 3 $9,000.00
Subtotal Year 1: $68,850.00
Subscription Term: 24 Months
Annual Recurring
Total:
$61,500.00
Estimated Sales Tax: $0.00
Total Contract
Amount:
$130,350.00
BACKGROUND:

Between 2015 and 2018, the City of San Carlos purchased twenty-two Vigilant Solutions fixed ALPRs which cost approximately $10,000 to 15,000 per camera, depending on the placement and equipment needed. Vigilant Solutions did not maintain these cameras which required an additional contract with another vendor Odin Systems. The last transaction for maintenance for the ALPRs was $13,000. The current subscription with Vigilant Solutions is set to expire on June 30, 2023. At that time, the City will suspend service with the fixed ALPRs which were pre-paid.

Vehicles will still have Vigilant Solution ALPRs and are set to transition to new technology in the next few years with Axon and Flock Safety capabilities. That cost will be integrated with the Axon contract that the County holds.

The life of the current ALPR cameras is due for an upgrade. The San Mateo County Sheriff’s Office wants to align with the same system used in other jurisdictions of the Sheriff’s Office and the region by switching to Flock Safety. Flock Safety has become the current law enforcement industry ALPR standard in San Mateo County. A change in ALPR systems will maximize the Sheriff’s Office’s investigative capabilities by sharing information with other local law enforcement agencies and help increase crime clearance rates. Changing to Flock Safety will also increase the footprint within the City, allowing for more coverage of the ingress and egress of the city.

ANALYSIS:

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The Sheriff’s Office requests Flock Safety as the sole source vendor for the Flock Safety Camera.

Flock Safety is the sole manufacturer and distributor of the Flock Safety Automatic License Plate Recognition (ALPR) Camera. Flock Safety is also the sole provider of the comprehensive monitoring, processing, and machine vision services that integrate with the Flock Safety Camera.

Flock Safety provides crime-fighting technology (cameras and software) under a service subscription model. Flock Safety’s service is a flat annual fee that includes ALPR camera hardware, hardware maintenance, ALPR software, software updates, unlimited users, 30 days of unlimited data storage, LTE connectivity, solar panels, poles, mounting equipment, and monitoring. Flock Safety provides all supplies and equipment under standard operating procedures and complies with all government regulations and workplace safety guidelines. Flock Safety will remove the cameras if the Sheriff’s Office chooses not to renew the agreement.

Flock Safety is a public safety operating system that helps communities and law enforcement in over one thousand cities nationwide work that together to eliminate crime, protect privacy, and mitigate bias. Other local California government agencies currently using Flock Systems include the San Mateo Police Department, Atherton Police Department, Hillsborough Police Department, Colma Police Department, San Bruno Police Department, Foster City Police Department, San Jose Police Department, San Ramon Police Department, Danville Police Department, and Livermore Police Department.

The Sheriff’s Office is already successfully utilizing Flock Safety with the San Mateo County Vehicle Theft Task Force and several of its contract cities are either operational (City of Millbrae) or soon to be operational (Towns of Woodside and Portola Valley) on the system. This purchase is exclusively for the program’s expansion into the City of San Carlos. Through the Flock Safety system, law enforcement agencies can access each other’s systems. Many more municipalities within the county are actively considering migrating to the Flock Safety system.

Flock Safety is the only fully integrated ALPR one-stop solution from the production of the camera to delivery and installation. The camera utilizes motion to capture start and stop recording with machine learning and artificial intelligence, allowing Flock Safety to capture vehicle characteristics without the need for a reflective license plate. The cameras can capture and process 30,000 vehicles per day and capture two lanes of traffic simultaneously with a single camera from a vertical mass powered by solar power. Flock Safety analyzes a vehicle’s license plate, color, and vehicle make objects (roof rack, unique hub cap, etc.) based on image analytics (not car registration data), which also protects against stolen/removed license plates.

The software transmits alerts for hot plates with the capability of the plate state match and can set up alerts based on vehicle description without the need for a license plate. The software makes actionable evidence available when needed that is easily searchable by vehicle type, make, model, color, timeframe, partial/full license plate, and object detection. This technology will allow the Sheriff’s Office to more accurately detect and stop the actual vehicle used in a crime, instead of similar looking vehicles. This will not only save law enforcement time in the investigation of criminal activity, but also prevent the unnecessary stops and detentions of motorists driving vehicles which may look similar to wanted vehicles but are truly uninvolved in criminal activity associated with the vehicle.

Flock Safety focuses on objective evidence (vehicles and license plates) by capturing car features (make, model, color, license plate, state of the plate, timestamp) through an image. Privacy is protected by not using facial recognition technology and not recording any personally identifiable

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information such as names, addresses, or phone numbers. The Sheriff’s Office will own their data and Flock Safety does not sell the data to third parties. The camera footage is stored, secured, and encrypted in AWS Government Cloud and automatically deleted every thirty days on a rolling basis. The camera only takes photos, and there is no live feed. No one monitors the system, and it is not used for surveillance purposes.

As per California Assembly Bill (AB) 1215, facial recognition and biometric surveillance technology are banned within this State. The software used by Flock Safety’s cameras are specifically designed not to collect any facial recognition data and is in compliance with AB 1215.

As per Sheriff’s Office Policy 346.2, ALPR cameras and networks will not be used for facial recognition purposes.

As per California Senate Bill 54, this technology and/or data would not be used to enforce immigration law or provide information to federal law enforcement agencies enforcing immigration law. The data collected from Flock Safety Cameras is owned by the Sheriff’s Office and will not be disseminated to federal agents for that purpose. As per Sheriff’s Office Policy 413, an inquiry of this data shall not be utilized by law enforcement agencies enforcing immigration law.

Impact on Residents and Businesses
Flock Safety Cameras help community residents, businesses, and law enforcement work together to eliminate crime, protect privacy, and mitigate bias. In addition to allowing law enforcement to quickly identify the suspects of a crime, the current use of Flock Safety Cameras has enabled law enforcement to reduce innocent civilians from being contacted, deter crime, and recover property quickly.

While the 4th Amendment does not preclude law enforcement from obtaining information on the movements of civilians in public places, there has been notable discomfort among the general public over the idea of the “surveillance state” when using ALPR cameras. Several cities in the United States have discontinued their use due to public outcry. However, as stated above, Flock Safety Cameras only alert law enforcement to license plates that are reported as stolen, associated with a criminal act, and/or a missing person. Information that does not generate an alert is only stored for 30 days before being deleted. While it is possible for a law enforcement officer to delve into this information, strict protocols are already in place to restrict the use and dissemination of this information. San Mateo County Sheriff’s Office Policy 420 (ALPRs) specifically outlines the authorized and prohibited uses of this data. With these policies in place, Flock Safety’s system allows for minimal intrusion and unauthorized dissemination.

CONCLUSION:

The San Mateo County Sheriff’s Office emphasizes the importance of using progressive technology in assisting our members in criminal investigations. The implementation of Flock Safety Cameras would be a financially conservative ALPR option. Most importantly, it would allow access to all members that would benefit from utilizing the technology – both patrol deputies and investigators alike.

The implementation of Flock Safety Cameras would assist the San Mateo County Sheriff’s Office in investigating crime as it occurs within the City of San Carlos. The ability to share this data with other law enforcement agencies has contributed to a faster and higher closure rate of criminal investigations. Overall, the systematic implementation of Flock Safety Cameras would enhance public safety within the City of San Carlos.

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ALTERNATIVES:

The alternatives available to the City Council include:

1. Leave Vigilant Solutions in place with outdated technology; or

2. Upgrade Vigilant Solutions cameras with limited capabilities for useful data; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Kristina Bell, Police Captain and
Greg Rubens, City Attorney
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Flock Group Inc. Service Agreement

3. Sole Source Justification

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS

AUTHORIZING THE CITY MANAGER TO EXECUTE A TWO-YEAR PROFESSIONAL SERVICES AGREEMENT WITH FLOCK GROUP INC. FOR FLOCK SAFETY AUTOMATIC

LICENSE PLATE RECOGNITION (ALPR) CAMERAS/LICENSES IN THE AMOUNT OF $130,350 AND AUTHORIZING THE APPROVAL OF THE USE OF PRIOR YEAR SAVINGS

FROM THE LAW ENFORCEMENT SERVICES AGREEMENT WITH THE SAN MATEO COUNTY SHERIFF’S OFFICE IN THE AMOUNT OF $130,350 FOR THIS SERVICE.

WHEREAS, between 2015 and 2018, the City of San Carlos purchased twenty-two Vigilant Solutions fixed ALPRs costing approximately $10,000 to 15,000 per camera, depending on the placement and equipment needed; and
WHEREAS, the current subscription with Vigilant Solutions is set to expire on June 30, 2023 and the life of the current ALPR cameras is due for an upgrade; and WHEREAS, the San Mateo County Sheriff’s Office wants to align with the same system used in other jurisdictions of the Sheriff’s Office and the region by switching to Flock Safety; and WHEREAS, Flock Safety has become the current law enforcement industry ALPR standard in San Mateo County. A change in ALPR systems will maximize the Sheriff’s Office’s investigative capabilities by sharing information with other local law enforcement agencies and increase crime clearance rates. Changing to Flock Safety will also increase the footprint within the City, allowing for more coverage in the ingress and egress of the city; and WHEREAS, the City plans to purchase a two-year subscription using prior year savings accumulated in the Sheriff’s Office Trust Fund Account. As per Section 3.1.2 of the Agreement with the Sheriff’s Office, if the actual costs of service are less than the calculated totals for the fiscal year, the excess will be set aside in a trust fund for the City to use at their discretion. Per the Sheriff’s Office Fiscal Department, the trust fund balance as of February 28, 2023 is approximately $911,000.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Manager to execute a two-year Professional Services Agreement with Flock Group Inc. for Flock Safety Automatic License Plate Recognition (ALPR) Cameras/Licenses in the amount of $130,350 and authorizes the approval of the use of prior year savings from the Law Enforcement Services Agreement with the San Mateo County Sheriff’s Office in the amount of $130,350 for this service.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of March 2023, by the following vote:

AYES, COUNCILMEMBERS:_____________________________________________ NOES, COUNCILMEMBERS:_____________________________________________ ABSENT, COUNCILMEMBERS:_____________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos

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FLOCK GROUP INC.

SERVICES AGREEMENT

ORDER FORM
This Order Form together with the Terms (as defined herein) describe the relationship between Flock Group Inc. (“Flock”) and the customer identified below (“Agency”) (each of Flock and Customer, a ”Party”). This order form (“Order Form”) hereby incorporates and includes the “GOVERNMENT AGENCY AGREEMENT” attached (the “Terms”) which describe and set forth the general legal terms governing the relationship (collectively, the "Agreement" ). The Terms contain, among other things, warranty disclaimers, liability limitations and use limitations.

The Agreement will become effective when this Order Form is executed by both Parties (the “Effective Date”).

Agency: CA-City of San Carlos, a Municipal
Corporation
Legal Entity Name: \City of San Carlos\
Contact Name: Jesse Myers
Address:
600 Elm Street
San Carlos, California 94070
Phone: (650) 802-4225
E-Mail: [email protected]
Expected Payment Method: Check
\FSExpectedPaymentMethod1\
Billing Contact: Rebecca Mendenhall
[email protected]
Initial Term: 24 months
Renewal Term: 24 months
Billing Term: Invoice Plan payment due Net 30 per
terms and conditions
Billing Frequency: Annual Plan

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Professional Services and One-Time Purchases
Name Price/Usage Fee QTY Subtotal
Professional Services - Standard Implementation Fee $350.00 21.00 $7,350.00 Hardware and Software Products
Annual recurring amounts over subscription term
Name Price/Usage Fee QTY Subtotal
Falcon $2,500.00 21.00 $52,500.00
Falcon Flex $3,000.00 3.00 $9,000.00
Subtotal Year 1: $68,850.00
Subscription Term: 24 Months
Annual Recurring Total: $61,500.00
Estimated Sales Tax: $0.00
Total Contract Amount: $130,350.00

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I have reviewed and agree to the Customer Implementation Guide on Schedule B at the end of this agreement.
\FSInitials1\
By executing this Order Form, Agency represents and warrants that it has read and agrees all of the terms and conditions contained in the Terms attached. The Parties have executed this Agreement as of the dates set forth below.

FLOCK GROUP, INC. Agency: CA-City of San Carlos
By:
\FSSignature2\
By:
\FSSignature1\
Name:
\FSFullname2\
Name:
\FSFullname1\
Title:
\FSTitle2\
Title:
\FSTitle1\
Date:
\FSDateSigned2\
Date:
\FSDateSigned1\

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GOVERNMENT AGENCY AGREEMENT
This Government Agency Agreement (this “Agreement”) is entered into by and between Flock Group, Inc. with a place of business at 1170 Howell Mill Rd NW Suite 210, Atlanta, GA 30318 (“Flock”) and the police department or government agency identified in the signature block of the Order Form (“Agency”) (each a “Party,” and together, the “Parties”).

RECITALS
WHEREAS, Flock offers a software and hardware situational awareness solution for automatic license plates, video and audio detection through Flock’s technology platform (the “Flock Service”), and upon detection, the Flock Services are capable of capturing audio, video, image, and recording data and can provide notifications to Agency upon the instructions of Non-Agency End User (as defined below) (“Notifications”); WHEREAS, Agency desires access to the Flock Service on existing cameras, provided by Agency, or Flock provided Flock Hardware (as defined below) in order to create, view, search and archive Footage and receive Notifications, including those from Non-Agency End Users of the Flock Service (where there is an investigative or bona fide lawful purpose) such as schools, neighborhood homeowners associations, businesses, and individual users; WHEREAS, Flock deletes all Footage on a rolling thirty (30) day basis, excluding Wing Replay which is deleted after seven (7) days. Agency is responsible for extracting, downloading and archiving Footage from the Flock System on its own storage devices for auditing for prosecutorial/administrative purposes; and WHEREAS, Flock desires to provide Agency the Flock Service and any access thereto, subject to the terms and conditions of this Agreement, solely for the awareness, prevention, and prosecution of crime, bona fide investigations by police departments, and archiving for evidence gathering (“Permitted Purpose”).

AGREEMENT
NOW, THEREFORE, Flock and Agency agree that this Agreement, and any addenda attached hereto or referenced herein, constitute the complete and exclusive statement of the Agreement of the Parties with respect to the subject matter of this Agreement, and replace and supersede all prior agreements, term sheets, purchase orders, correspondence, oral or written communications and negotiations by and between the Parties.

1. DEFINITIONS
Certain capitalized terms, not otherwise defined herein, have the meanings set forth or cross-referenced in this Section 1.

1.1 “Advanced Search” means the provision of Services, via the web interface using Flock’s software applications, which utilize advanced evidence delivery capabilities including convoy analysis, multi-geo search, visual search, cradlepoint integration for automatic vehicle location, and common plate analysis.

1.2 “Agency Data” means the data, media and content provided by Agency through the Services. For the avoidance of doubt, the Agency Data will include the Footage.

1.3 “Agency Generated Data” means the messages, text, illustrations, files, images, graphics, photos, comments, sounds, music, videos, information, content, ratings, reviews, data, questions, suggestions, other information or materials posted, uploaded, displayed, published, distributed, transmitted, broadcasted, or otherwise made available on or submitted through the Wing Suite.

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1.4. “Agency Hardware” means the third-party camera owned or provided by Agency and any other physical elements that interact with the Embedded Software and the Web Interface to provide the Services.

1.5. “Aggregated Data” means information that relates to a group or category of individuals, from which any potential individuals’ personal identifying information has been permanently “anonymized” by commercially available standards to irreversibly alter data in such a way that a data subject (i.e., individual person or impersonal entity) can no longer be identified directly or indirectly.

1.6 “Authorized End User(s)” means any individual employees, agents, or contractors of Agency accessing or using the Services through the Web Interface, under the rights granted to Agency pursuant to this Agreement.

1.7 “Deployment Plan” means the strategic geographic mapping of the location(s) and implementation of Flock Hardware, and/or other relevant Services required under this Agreement.

1.8 “Documentation” means text and/or graphical documentation, whether in electronic or printed format, that describe the features, functions and operation of the Services which are provided by Flock to Agency in accordance with the terms of this Agreement.

1.9 “Embedded Software” means the software and/or firmware embedded or preinstalled on the Flock Hardware or Agency Hardware.

1.10 “Falcon Flex” means an infrastructure-free, location-flexible license plate reader camera that enables the Agency to self-install.

1.11 “Flock Hardware” means the Flock cameras or device, pole, clamps, solar panel, installation components, and any other physical elements that interact with the Embedded Software and the Web Interface to provide the Flock Services.

1.12 “Flock IP” means the Services, the Documentation, the Embedded Software, the Installation Services, and any and all intellectual property therein or otherwise provided to Agency and/or its Authorized End Users in connection with the foregoing.

1.13 “Flock Safety Falcon™” means an infrastructure-free license plate reader camera that utilizes Vehicle Fingerprint™ technology to capture vehicular attributes.

1.14 “Flock Safety Raven™” means an audio detection device that provides real-time alerting to law enforcement based on programmed audio events such as gunshots, breaking glass, and street racing.

1.15 “Flock Safety Sparrow™” means an infrastructure-free license plate reader camera for residential roadways that utilizes Vehicle Fingerprint™ technology to capture vehicular attributes.

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1.17 “Footage” means still images, video, audio and other data captured by the Flock Hardware or Agency Hardware in the course of and provided via the Services.

1.18 “Hotlist(s)” means a digital file containing alphanumeric license plate related information pertaining to vehicles of interest, which may include stolen vehicles, stolen vehicle license plates, vehicles owned or associated with wanted or missing person(s), vehicles suspected of being involved with criminal or terrorist activities, and other legitimate law enforcement purposes. Hotlist also includes, but is not limited to, national data (i.e. NCIC) for similar categories, license plates associated with AMBER Alerts or Missing Persons/Vulnerable Adult Alerts, and includes manually entered license plate information associated with crimes that have occurred in any local jurisdiction.

1.19 “Implementation Fee(s)” means the monetary fees associated with the Installation Services, as defined below.

1.20 “Installation Services” means the services provided by Flock for installation of Agency Hardware and/or Flock Hardware, including any applicable installation of Embedded Software on Agency Hardware.

1.21 “Non-Agency End User(s)” means any individual, entity, or derivative therefrom, authorized to use the Services through the Web Interface, under the rights granted to pursuant to the terms (or to those materially similar) of this Agreement.

1.22 “Services” or “Flock Services” means the provision, via the Web Interface, of Flock’s software applications for automatic license plate detection, alerts, audio detection, searching image records, video and sharing Footage.

1.23 “Support Services” means Monitoring Services, as defined in Section 2.10 below.

1.24 “Usage Fee” means the subscription fees to be paid by the Agency for ongoing access to Services.

1.25 “Web Interface” means the website(s) or application(s) through which Agency and its Authorized End Users can access the Services, in accordance with the terms of this Agreement.

1.26 “Wing Suite” means the Flock interface which provides real-time access to the Flock Services, location of Flock Hardware, Agency Hardware, third-party cameras, live-stream video, Wing Livestream, Wing LPR, Wing Replay, alerts and other integrations.

1.27 “Wing Livestream” means real-time video integration with third-party cameras via the Flock interface.

1.28 “Wing LPR” means software integration with third-party cameras utilizing Flock’s Vehicle Fingerprint Technology™ for license plate capture.

1.29 “Wing Replay” means enhanced situational awareness encompassing Footage retention, replay ability, and downloadable content from Hot Lists integrated from third-party cameras.

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1.30 “Vehicle Fingerprint™” means the unique vehicular attributes captured through Services such as: type, make, color, state registration, missing/covered plates, bumper stickers, decals, roof racks, and bike racks.

2. SERVICES AND SUPPORT

2.1 Provision of Access. Subject to the terms of this Agreement, Flock hereby grants to Agency a non-exclusive, non-transferable right to access the features and functions of the Services via the Web Interface during the Term, solely for the Authorized End Users. The Footage will be available for Agency’s designated administrator, listed on the Order Form, and any Authorized End Users to access and download via the Web Interface for thirty (30) days.

Authorized End Users will be required to sign up for an account and select a password and username (“User ID”).

Flock will also provide Agency with the Documentation to be used in accessing and using the Services. Agency shall be responsible for all acts and omissions of Authorized End Users, and any act or omission by an Authorized End User which, if undertaken by Agency, would constitute a breach of this Agreement, shall be deemed a breach of this Agreement by Agency. Agency shall undertake reasonable efforts to make all Authorized End Users aware of the provisions of this Agreement as applicable to such Authorized End User’s use of the Services and shall cause Authorized End Users to comply with such provisions. Flock may use the services of one or more third parties to deliver any part of the Services, (such as using a third party to host the Web Interface for cloud storage or a cell phone provider for wireless cellular coverage) which makes the Services available to Agency and Authorized End Users. Warranties provided by said third party service providers are the agency’s sole and exclusive remedy and Flock’s sole and exclusive liability with regard to such third-party services, including without limitation hosting the Web Interface. Agency agrees to comply with any acceptable use policies and other terms of any third-party service provider that are provided or otherwise made available to Agency from time to time.

2.2 Embedded Software License. Subject to all terms of this Agreement, Flock grants Agency a limited, non- exclusive, non-transferable, non-sublicensable (except to the Authorized End Users), revocable right to use the Embedded Software as installed on the Flock Hardware or Agency Hardware; in each case, solely as necessary for Agency to use the Services.

2.3 Documentation License. Subject to the terms of this Agreement, Flock hereby grants to Agency a non- exclusive, non-transferable right and license to use the Documentation during the Term in connection with its use of the Services as contemplated herein, and under Section 2.5 below.

2.4 Wing Suite License. Subject to all terms of this Agreement, Flock grants Agency a limited, non-exclusive, non- transferable, non-sublicensable (except to the Authorized End Users), revocable right to use the Wing Suite software and interface.

2.5 Usage Restrictions.

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2.5.1 Flock IP. The permitted purpose for usage of the Flock Hardware, Agency Hardware, Documentation, Services, support, and Flock IP are solely to facilitate gathering evidence that could be used in a lawful criminal investigation by the appropriate government agency (“Permitted Purpose”). Agency will not, and will not permit any Authorized End Users to, (i) copy or duplicate any of the Flock IP; (ii) decompile, disassemble, reverse engineer, or otherwise attempt to obtain or perceive the source code from which any software component of any of the Flock IP is compiled or interpreted, or apply any other process or procedure to derive the source code of any software included in the Flock IP; (iii) attempt to modify, alter, tamper with or repair any of the Flock IP, or attempt to create any derivative product from any of the foregoing; (iv) interfere or attempt to interfere in any manner with the functionality or proper working of any of the Flock IP; (v) remove, obscure, or alter any notice of any intellectual property or proprietary right appearing on or contained within any of the Services or Flock IP; (vi) use the Services, support, Flock Hardware, Documentation, or the Flock IP for anything other than the Permitted Purpose; or (vii) assign, sublicense, sell, resell, lease, rent, or otherwise transfer, convey, pledge as security, or otherwise encumber, Agency’s rights under Sections 2.1, 2.2, 2.3, or 2.4.

2.5.2. Flock Hardware. Agency understands that all Flock Hardware is owned exclusively by Flock, and that title to any Flock Hardware does not pass to Agency upon execution of this Agreement. Except for Falcon Flex products, which are designed for self-installation, Agency is not permitted to remove, reposition, re-install, tamper with, alter, adjust or otherwise take possession or control of Flock Hardware. Notwithstanding the notice and cure period set for in Section 6.3, Agency agrees and understands that in the event Agency is found to engage in any of the restricted actions of this Section 2.5.2, all warranties herein shall be null and void, and this Agreement shall be subject to immediate termination (without opportunity to cure) for material breach by Agency.

2.6 Retained Rights; Ownership. As between the Parties, subject to the rights granted in this Agreement, Flock and its licensors retain all right, title and interest in and to the Flock IP and its components, and Agency acknowledges that it neither owns nor acquires any additional rights in and to the foregoing not expressly granted by this Agreement. Agency further acknowledges that Flock retains the right to use the foregoing for any purpose in Flock’s sole discretion. There are no implied rights.

2.7 Suspension.

2.7.1 Service Suspension. Notwithstanding anything to the contrary in this Agreement, Flock may temporarily suspend Agency’s and any Authorized End User’s access to any portion or all of the Flock IP or Flock Service if Flock reasonably determines that (a) there is a threat or attack on any of the Flock IP by Agency; (b) Agency’s or any Authorized End User’s use of the Flock IP disrupts or poses a security risk to the Flock IP or any other customer or vendor of Flock; (c) Agency or any Authorized End User is/are using the Flock IP for fraudulent or illegal activities; (d) Agency has violated any term of this provision, including, but not limited to, utilizing the Services for

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anything other than the Permitted Purpose; or (e) any unauthorized access to Flock Services through Agency’s account (“Service Suspension”). Agency shall not be entitled to any remedy for the Service Suspension period, including any reimbursement, tolling, or credit.

2.7.2 Service Interruption. Services may be interrupted in the event that: (a) Flock’s provision of the Services to Agency or any Authorized End User is prohibited by applicable law; (b) any third-party services required for Services are interrupted; (c) if Flock reasonably believe Services are being used for malicious, unlawful, or otherwise unauthorized use; (d) there is a threat or attack on any of the Flock IP by a third party; or (e) scheduled or emergency maintenance (“Service Interruption”). Flock will make commercially reasonable efforts to provide written notice of any Service Interruption to Agency and to provide updates regarding resumption of access to Flock Services. Flock will use commercially reasonable efforts to resume providing access to the Services as soon as reasonably possible after the event giving rise to the Service Interruption is cured. Flock will have no liability for any damage, liabilities, losses (including any loss of data or profits), or any other consequences that Agency or any Authorized End User may incur as a result of a Service Interruption. To the extent that the Service Interruption is not caused by Agency’s direct actions or by the actions of parties associated with the Agency, the expiration of the Term will be tolled by the duration of the Service Interruption (for any continuous suspension lasting at least one full day) prorated for the proportion of cameras on the Agency’s account that have been impacted. For example, in the event of a Service Interruption lasting five (5) continuous days, Agency will receive a credit for five (5) free days at the end of the Term.

2.8 Installation Services.

2.8.1 Designated Locations. For installation of Flock Hardware, excluding Falcon Flex products, prior to performing the physical installation of the Flock Hardware, Flock shall advise Agency on the location and positioning of the Flock Hardware for optimal license plate image capture, as conditions and location allow. Flock may consider input from Agency regarding location, position and angle of the Flock Hardware (“Designated Location”) and collaborate with Agency to design the Deployment Plan confirming the Designated Locations. Flock shall have final discretion on location of Flock Hardware. Flock shall have no liability to Agency resulting from any poor performance, functionality or Footage resulting from or otherwise relating to the Designated Locations or delay in installation due to Agency’s delay in confirming Designated Locations, in ordering and/or having the Designated Location ready for installation including having all electrical work preinstalled and permits ready, if necessary. After installation, any subsequent changes to the Deployment Plan (“Reinstalls”) will incur a charge for Flock’s then- current list price for Reinstalls, as listed in the then-current Reinstall policy (available at https://www.flocksafety.com/reinstall-fee-schedule) and any equipment fees. For clarity, Agency will receive prior notice and provide approval for any such fees. These changes include but are not limited to re-positioning, adjusting of the mounting, re-angling, removing foliage, replacement, changes to heights of poles, regardless of whether the need for Reinstalls related to vandalism, weather, theft, lack of criminal activity in view, and the like. Flock shall have full discretion on decision to reinstall Flock Hardware.

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2.8.2 Agency Installation Obligations. Agency agrees to allow Flock and its agents reasonable access in and near the Designated Locations at all reasonable times upon reasonable notice for the purpose of performing the installation work. Although Flock Hardware is designed to utilize solar power, certain Designated Locations may require a reliable source of 120V or 240V AC power. In the event adequate solar power is not available, Agency is solely responsible for costs associated with providing a reliable source of 120V or 240V AC power to Flock Hardware. Flock will provide solar options to supply power at each Designated Location. If Agency refuses recommended solar options, Agency waives any reimbursement, tolling, or credit for any suspension period of Flock Services due to low solar power. Additionally, Agency is solely responsible for (i) any permits or associated costs, and managing the permitting process of installation of cameras or AC power; (ii) any federal, state, or local taxes including property, license, privilege, sales, use, excise, gross receipts, or other similar taxes which may now or hereafter become applicable to, measured by or imposed upon or with respect to the installation of the Flock Hardware, its use (excluding tax exempt entities), or (iii) any other supplementary cost for services performed in connection with installation of the Flock Hardware, including but not limited to contractor licensing, engineered drawings, rental of specialized equipment, or vehicles, third-party personnel (i.e. Traffic Control Officers, Electricians, State DOT-approved poles, etc., if necessary), such costs to be approved by the Agency (“Agency Installation Obligations”). In the event that a Designated Location for Flock Hardware requires permits, Flock may provide the Agency with a temporary alternate location for installation pending the permitting process. Once the required permits are obtained, Flock will relocate the Flock Hardware from the temporary alternate location to the permitted location at no additional cost. Without being obligated or taking any responsibility for the foregoing, Flock may pay and invoice related costs to Agency if Agency did not address them prior to the execution of this Agreement or a third party requires Flock to pay. Agency represents and warrants that it has, or shall lawfully obtain, all necessary right title and authority and hereby authorizes Flock to install the Flock Hardware at the Designated Locations and to make any necessary inspections or tests in connection with such installation.

2.8.3 Flock’s Obligations. Installation of Flock Hardware shall be installed in a workmanlike manner in accordance with Flock’s standard installation procedures, and the installation will be completed within a reasonable time from the time that the Designated Locations are confirmed. Upon removal of Flock Hardware, Flock shall restore the location to its original condition, ordinary wear and tear excepted. Following the initial installation of the Flock Hardware and any subsequent Reinstalls or maintenance operations, Flock’s obligation to perform installation work shall cease; however, for the sole purpose of validating installation, Flock will continue to monitor the performance of Flock Hardware for the length of the Term and will receive access to the Footage for a period of seven (7) business days after the initial installation for quality control and provide any necessary maintenance. Labor may be provided by Flock or a third-party. Flock is not obligated to install, reinstall, or provide physical maintenance to Agency Hardware. Notwithstanding anything to the contrary, Agency understands that Flock will not provide installation services for Falcon Flex products.

2.8.4 Ownership of Hardware. Flock Hardware shall remain the personal property of Flock and will be removed upon the natural expiration of this Agreement at no additional cost to Agency. Agency shall not perform any acts which would interfere with the retention of title of the Flock Hardware by Flock. Should Agency default on any

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payment of the Flock Services, Flock may remove Flock Hardware at Flock’s discretion. Such removal, if made by Flock, shall not be deemed a waiver of Flock’s rights to any damages Flock may sustain as a result of Agency’s default and Flock shall have the right to enforce any other legal remedy or right.

2.9 Hazardous Conditions. Unless otherwise stated in the Agreement, Flock’s price for its services under this Agreement does not contemplate work in any areas that contain hazardous materials, or other hazardous conditions, including, without limit, asbestos, lead, toxic or flammable substances. In the event any such hazardous materials are discovered in the designated locations in which Flock is to perform services under this Agreement, Flock shall have the right to cease work immediately in the area affected until such materials are removed or rendered harmless.

2.10 Support Services. Subject to the payment of fees, Flock shall monitor the performance and functionality of Flock Services and may, from time to time, advise Agency on changes to the Flock Services, Installation Services, or the Designated Locations which may improve the performance or functionality of the Services or may improve the quality of the Footage. The work, its timing, and the fees payable relating to such work shall be agreed by the Parties prior to any alterations to or changes of the Services or the Designated Locations (“Monitoring Services”).

Flock will use commercially reasonable efforts to respond to requests for support. Flock will provide Agency with reasonable technical and on-site support and maintenance services (“On-Site Services”) in-person or by email at [email protected], at no additional cost. Notwithstanding anything to the contrary, Agency is solely responsible for installation of Falcon Flex products. Agency further understands and agrees that Flock will not provide monitoring services or on-site services for Falcon Flex.

2.11 Special Terms. From time to time, Flock may offer certain special terms related to guarantees, service and support which are indicated in the proposal and on the Order Form and will become part of this Agreement, upon Agency’s prior written consent (“Special Terms”). To the extent that any terms of this Agreement are inconsistent or conflict with the Special Terms, the Special Terms shall control.

2.12 Upgrades to Platform. Flock may, in its sole discretion, make any upgrades to system or platform that it deems necessary or useful to (i) maintain or enhance (a) the quality or delivery of Flock’s products or services to its agencies, (b) the competitive strength of, or market for, Flock’s products or services, (c) such platform or system’s cost efficiency or performance, or (ii) to comply with applicable law. Parties understand that such upgrades are necessary from time to time and will not materially change any terms or conditions within this Agreement.

3. RESTRICTIONS AND RESPONSIBILITIES

3.1 Agency Obligations. Flock will assist Agency Authorized End Users in the creation of a User ID. Agency agrees to provide Flock with accurate, complete, and updated registration information. Agency may not select as its User ID a name that Agency does not have the right to use, or another person’s name with the intent to impersonate that person. Agency may not transfer its account to anyone else without prior written permission of Flock. Agency

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will not share its account or password with anyone and must protect the security of its account and password. Unless otherwise stated and defined in this Agreement, Agency may not designate Authorized End Users for persons who are not officers, employees, or agents of Agency. Authorized End Users shall only use Agency-issued email addresses for the creation of their User ID. Agency is responsible for any activity associated with its account.

Agency shall be responsible for obtaining and maintaining any equipment and ancillary services needed to connect to, access or otherwise use the Services. Agency will, at its own expense, provide assistance to Flock, including, but not limited to, by means of access to, and use of, Agency facilities, as well as by means of assistance from Agency personnel to the limited extent any of the foregoing may be reasonably necessary to enable Flock to perform its obligations hereunder, including, without limitation, any obligations with respect to Support Services or any Installation Services.

3.2 Agency Representations and Warranties. Agency represents, covenants, and warrants that Agency will use the Services only in compliance with this Agreement and all applicable laws and regulations, including but not limited to any laws relating to the recording or sharing of video, photo, or audio content. Although Flock has no obligation to monitor Agency ’s use of the Services, Flock may do so and may prohibit any use of the Services it believes may be (or alleged to be) in violation of the foregoing.

4. CONFIDENTIALITY; AGENCY DATA

4.1 Confidentiality. To the extent allowable by applicable FOIA and state-specific Public Records Acts, each Party (the “Receiving Party”) understands that the other Party (the “Disclosing Party”) has disclosed or may disclose business, technical or financial information relating to the Disclosing Party’s business (hereinafter referred to as “Proprietary Information” of the Disclosing Party). Proprietary Information of Flock includes non-public information regarding features, functionality and performance of the Services. Proprietary Information of Agency includes non-public data provided by Agency to Flock or collected by Flock via the Flock Hardware or Agency Hardware, to enable the provision of the Services, which includes but is not limited to geolocation information and environmental data collected by sensors . The Receiving Party agrees: (i) to take the same security precautions to protect against disclosure or unauthorized use of such Proprietary Information that the Party takes with its own proprietary information, but in no event will a Party apply less than reasonable precautions to protect such Proprietary Information, and (ii) not to use (except in performance of the Services or as otherwise permitted herein) or divulge to any third person any such Proprietary Information. Flock’s use of the Proprietary Information may include processing the Proprietary Information to send Agency alerts, or to analyze the data collected to identify motion or other events. The Disclosing Party agrees that the foregoing shall not apply with respect to any information that the Receiving Party can document (a) is or becomes generally available to the public, or (b) was in its possession or known by it prior to receipt from the Disclosing Party, or (c) was rightfully disclosed to it without restriction by a third party, or (d) was independently developed without use of any Proprietary Information of the Disclosing Party. Nothing in this Agreement will prevent the Receiving Party from disclosing the Proprietary Information pursuant to any judicial or governmental order, provided that the Receiving Party gives the Disclosing

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Party reasonable prior notice of such disclosure to contest such order. For clarity, Flock may access, use, preserve and/or disclose the Footage to law enforcement authorities, government officials, and/or third parties, if legally required to do so or if Flock has a good faith belief that such access, use, preservation or disclosure is reasonably necessary to: (a) comply with a legal process or request; (b) enforce this Agreement, including investigation of any potential violation thereof; (c) detect, prevent or otherwise address security, fraud or technical issues; or (d) protect the rights, property or safety of Flock, its users, a third party, or the public as required or permitted by law, including respond to an emergency situation. Flock may store deleted Footage in order to comply with certain legal obligations, but such retained Footage will not be retrievable without a valid court order.

4.2 Agency Data. As between Flock and Agency, all right, title and interest in the Agency Data, belong to and are retained solely by Agency. Agency hereby grants to Flock a limited, non-exclusive, royalty-free, worldwide license to (i) use the Agency Data and perform all acts with respect to the Agency Data as may be necessary for Flock to provide the Flock Services to Agency, including without limitation the Support Services set forth in Section 2.10 above, and a non-exclusive, perpetual, irrevocable, worldwide, royalty-free, fully paid license to use, reproduce, modify, display, and distribute the Agency Data as a part of the Aggregated Data, (ii) disclose the Agency Data (both inclusive of any Footage) to enable law enforcement monitoring for elected law enforcement Hotlists as well as provide Footage search access to law enforcement for investigative purposes only, and (iii) and obtain Aggregated Data as set forth below in Section 4.5. As between Agency and Non-Agency End Users that have prescribed access of Footage to Agency, each of Agency and Non-Agency End Users will share all right, title and interest in the Non-Agency End User Data. This Agreement does not by itself make any Non-Agency End User Data the sole property or the Proprietary Information of Agency. Flock will automatically delete Footage older than thirty (30) days. Agency has a thirty (30) day window to view, save and/or transmit Footage to the relevant government agency prior to its deletion. Notwithstanding the foregoing, Flock automatically deletes Wing Replay after seven (7) days, during which time Agency may view, save and/or transmit such data to the relevant government agency prior to deletion. Flock does not own and shall not sell Agency Data.

4.3 Agency Generated Data in Wing Suite. Parties understand that Flock does not own any right, title, or interest to third-party video integrated into the Wing Suite. Flock may provide Agency with the opportunity to post, upload, display, publish, distribute, transmit, broadcast, or otherwise make available on or submit through the Wing Suite, messages, text, illustrations, files, images, graphics, photos, comments, sounds, music, videos, information, content, ratings, reviews, data, questions, suggestions, or other information or materials produced by Agency. Agency shall retain whatever legally cognizable right, title, and interest that Agency has in Agency Generated Data. Agency understands and acknowledges that Flock has no obligation to monitor or enforce Agency’s intellectual property rights to Agency Generated Data. To the extent legally permissible, Agency grants Flock a non-exclusive, perpetual, irrevocable, worldwide, royalty-free, fully paid license to use, reproduce, modify, display, and distribute the Agency Generated Data for the sole purpose of providing Flock Services. Flock does not own and shall not sell Agency Generated Data.

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4.4 Feedback. If Agency provides any suggestions, ideas, enhancement requests, feedback, recommendations or other information relating to the subject matter hereunder, Agency hereby assigns (and will cause its agents and representatives to assign) to Flock all right, title and interest (including intellectual property rights) with respect to or resulting from any of the foregoing.

4.5 Aggregated Data. Flock shall have the right to collect, analyze, and anonymize Agency Data and Agency Generated Data to create Aggregated Data to use and perform the Services and related systems and technologies, including the training of machine learning algorithms. Agency hereby grants Flock a non-exclusive, worldwide, perpetual, royalty-free right (during and after the Term hereof) to use and distribute such Aggregated Data to improve and enhance the Services and for other development, diagnostic and corrective purposes, other Flock offerings, and crime prevention efforts. Parties understand that the aforementioned license is required for continuity of Services. No rights or licenses are granted except as expressly set forth herein. Flock does not sell Aggregated Data.

5. PAYMENT OF FEES

5.1. Fees. Agency shall pay the fees as set forth in the Order Form.

5.2 Notice of Changes to Fees. Flock reserves the right to change the fees for subsequent Renewal Terms by providing sixty (60) days’ notice (which may be sent by email) prior to the end of the Initial Term or Renewal Term (as applicable).

5.3 Invoicing, Late Fees; Taxes. Flock may choose to bill through an invoice, in which case, full payment for invoices must be received by Flock thirty (30) days after the date of invoice. If Agency is a non-tax-exempt entity, Agency shall be responsible for all applicable taxes associated with Services (for non-tax-exempt reasons). If Agency believes that Flock has billed Agency incorrectly, Agency must contact Flock no later than sixty (60) days after the closing date on the first billing statement in which the error or problem appeared, to receive an adjustment or credit. Agency acknowledges and agrees that a failure to contact Flock within this sixty (60) day period will serve as a waiver of any claim Agency may have had due to such billing error.

6. TERM AND TERMINATION

6.1 Term. The initial term of this Agreement shall be for the period of time set forth on the Order Form and shall commence at the time outlined in this section below (the “Term”). Following the Term, unless otherwise indicated on the Order Form, this Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

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a. For Wing Suite products: the Term shall commence upon execution of this Agreement and continue for one (1) year, after which, the Term may be extended by mutual consent of the Parties, unless terminated by either Party. b. For Falcon and Sparrow products: the Term shall commence upon first installation and validation of Flock Hardware.
c. For Raven products: the Term shall commence upon first installation and validation of Flock Hardware. d. For Falcon Flex products: the Term shall commence upon execution of this Agreement. e. For Advanced Search products: the Term shall commence upon execution of this Agreement.

6.2 Termination for Convenience. At any time during the agreed upon Term, either Party may terminate this Agreement for convenience. Termination for convenience of the Agreement by the Agency will be effective immediately. Termination for convenience by Agency will result in a one-time removal fee of $500 per Flock Hardware. Termination for convenience by Flock will not result in any removal fees. Upon termination for convenience, a refund will be provided for Flock Hardware, prorated for any fees for the remaining Term length set forth previously. Wing Suite products and Advanced Search are not subject to refund for early termination. Flock will provide advanced written notice and remove all Flock Hardware at Flock’s own convenience, within a commercially reasonable period of time upon termination. Agency’s termination of this Agreement for Flock’s material breach of this Agreement shall not be considered a termination for convenience for the purposes of this Section 6.2.

6.3 Termination. Notwithstanding the termination provisions in Section 2.5.2, in the event of any material breach of this Agreement, the non-breaching Party may terminate this Agreement prior to the end of the Term by giving thirty (30) days prior written notice to the breaching Party; provided, however, that this Agreement will not terminate if the breaching Party has cured the breach prior to the expiration of such thirty (30) day period. Either Party may terminate this Agreement, without notice, (i) upon the institution by or against the other Party of insolvency, receivership or bankruptcy proceedings, (ii) upon the other Party's making an assignment for the benefit of creditors, or (iii) upon the other Party's dissolution or ceasing to do business. Upon termination for Flock’s material breach, Flock will refund to Agency a pro-rata portion of the pre-paid fees for Services not received due to such termination.

6.4 No-Fee Term. Flock will provide Agency with complimentary access to Hotlist alerts, as further described in Section 4.2 (“No-Fee Term”). In the event a Non-Agency End User grants Agency access to Footage and/or notifications from a Non-Agency End User, Agency will have access to Non-Agency End User Footage and/or notifications until deletion, subject to a thirty (30) day retention policy for all products except Wing Replay, which is subject to a seven (7) day retention policy. Flock may, in their sole discretion, provide access or immediately terminate the No-Fee Term. The No-Fee Term will survive the Term of this Agreement. Flock, in its sole discretion, can determine to impose a price per No-Fee Term upon thirty (30) days’ notice to Agency. Agency may terminate any No-Fee Term or access to future No-Fee Terms upon thirty (30) days’ notice.

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6.5 Survival. The following Sections will survive termination: 2.5, 2.6, 3, 4, 5, 6.4, 7.3, 7.4, 8.1, 8.2, 8.3,

8.4, 9.1 and 9.6.

7. REMEDY; WARRANTY AND DISCLAIMER

7.1 Remedy. Upon a malfunction or failure of Flock Hardware or Embedded Software (a “Defect”), Agency must notify Flock’s technical support as described in Section 2.10 above. If Flock is unable to correct the Defect, Flock shall, or shall instruct one of its contractors to repair or replace the Flock Hardware or Embedded Software suffering from the Defect. Flock reserves the right in their sole discretion to refuse or delay replacement or its choice of remedy for a Defect until after it has inspected and tested the affected Flock Hardware provided that such inspection and test shall occur within a commercially reasonable time, but no longer than seven (7) business days after Agency notifies the Flock of a known Defect. In the event of a Defect, Flock will repair or replace the defective Flock Hardware at no additional cost to Agency. Absent a Defect, in the event that Flock Hardware is lost, stolen, or damaged, Agency may request that Flock replace the Flock Hardware at a fee according to the then-current Reinstall policy (https://www.flocksafety.com/reinstall-fee-schedule). Agency shall not be required to replace subsequently lost, damaged or stolen Flock Hardware, however, Agency understands and agrees that functionality, including Footage, will be materially affected due to such subsequently lost, damaged or stolen Flock Hardware and that Flock will have no liability to Agency regarding such affected functionality nor shall the Usage Fee or Implementation Fees owed be impacted. Flock is under no obligation to replace or repair Flock Hardware or Agency Hardware.

7.2 Exclusions. Flock will not provide the remedy described in Section 7.1 if Agency has misused the Flock Hardware, Agency Hardware, or Service in any manner.

7.3 Warranty. Flock shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and interruptions in the Services and shall perform the Installation Services in a professional and workmanlike manner. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by Flock or by third-party providers, or because of other causes beyond Flock’s reasonable control, but Flock shall use reasonable efforts to provide advance notice in writing or by e-mail of any scheduled service disruption.

7.4 Disclaimer. THE REMEDY DESCRIBED IN SECTION 7.1 ABOVE IS AGENCY’S SOLE REMEDY, AND FLOCK’S SOLE LIABILITY, WITH RESPECT TO DEFECTIVE EMBEDDED SOFTWARE. FLOCK DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT

MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SERVICES. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES ARE PROVIDED “AS IS” AND FLOCK DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT

LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR

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PURPOSE AND NON-INFRINGEMENT. THIS DISCLAIMER OF SECTION 7.4 ONLY APPLIES TO THE EXTENT ALLOWED BY THE GOVERNING LAW OF THE STATE MENTIONED IN SECTION 9.6.

7.5 Insurance. Flock will maintain commercial general liability policies with policy limits reasonably commensurate with the magnitude of Flock’s business risk. Certificates of Insurance can be provided upon request.

7.6 Force Majeure. Parties are not responsible or liable for any delays or failures in performance from any cause beyond their control, including, but not limited to acts of God, changes to law or regulations, embargoes, war, terrorist acts, acts or omissions of third-Party technology providers, riots, fires, earthquakes, floods, power blackouts, strikes, supply chain shortages of equipment or supplies, weather conditions or acts of hackers, internet service providers or any other third Party acts or omissions. Force Majeure includes the novel coronavirus Covid-19 pandemic, and the potential spread of variants, which is ongoing as of the date of the execution of this Agreement.

8. LIMITATION OF LIABILITY; NO FEE TERM; INDEMNITY

8.1 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY, FLOCK AND ITS

SUPPLIERS (INCLUDING BUT NOT LIMITED TO ALL HARDWARE AND TECHNOLOGY SUPPLIERS),

OFFICERS, AFFILIATES, REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL NOT BE

RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR

TERMS AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCT LIABILITY, OR OTHER THEORY: (A) FOR ERROR OR INTERRUPTION OF USE

OR FOR LOSS OR INACCURACY, INCOMPLETENESS OR CORRUPTION OF DATA OR FOOTAGE OR

COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY OR LOSS OF BUSINESS; (B) FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (C) FOR ANY MATTER BEYOND FLOCK’S ACTUAL KNOWLEDGE OR REASONABLE

CONTROL INCLUDING REPEAT CRIMINAL ACTIVITY OR INABILITY TO CAPTURE FOOTAGE OR IDENTIFY AND/OR CORRELATE A LICENSE PLATE WITH THE FBI DATABASE; (D) FOR ANY PUBLIC DISCLOSURE OF PROPRIETARY INFORMATION MADE IN GOOD FAITH; (E) FOR CRIME PREVENTION; OR (F) FOR ANY AMOUNTS THAT, TOGETHER WITH AMOUNTS ASSOCIATED WITH

ALL OTHER CLAIMS, EXCEED THE FEES PAID AND/OR PAYABLE BY AGENCY TO FLOCK FOR THE SERVICES UNDER THIS AGREEMENT IN THE TWELVE (12) MONTHS PRIOR TO THE ACT OR

OMISSION THAT GAVE RISE TO THE LIABILITY, IN EACH CASE, WHETHER OR NOT FLOCK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION OF LIABILITY OF SECTION 8 ONLY APPLIES TO THE EXTENT ALLOWED BY THE GOVERNING LAW OF THE STATE MENTIONED IN SECTION 9.6.

8.2 Additional No-Fee Term Requirements. IN NO EVENT SHALL FLOCK’S AGGREGATE LIABILITY, IF

ANY, ARISING OUT OF OR IN ANY WAY RELATED TO THE COMPLIMENTARY NO-FEE TERM AS DESCRIBED IN SECTION 6.4 EXCEED $100, WITHOUT REGARD TO WHETHER SUCH CLAIM IS BASED

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IN CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR OTHERWISE. Parties acknowledge and agree that the essential purpose of this Section 8.2 is to allocate the risks under the No-Fee Term described in Section 6.4 and limit potential liability given the aforementioned complimentary service, which would have been substantially higher if Flock were to assume any further liability other than as set forth herein. Flock has relied on these limitations in determining whether to provide the complementary No-Fee Term. The limitations set forth in this Section 8.2 shall not apply to claims or damages resulting from Flock’s other obligations under this Agreement.

8.3 Responsibility. Each Party to this Agreement shall assume the responsibility and liability for the acts and omissions of its own employees, deputies, officers, or agents, in connection with the performance of their official duties under this Agreement. Each Party to this Agreement shall be liable (if at all) only for the torts of its own officers, agents, or employees.

9. INDEMNIFICATION
Agency hereby agrees to indemnify and hold harmless Flock against any damages, losses, liabilities, settlements and expenses in connection with any claim or action that arises from an alleged violation of Section 3.1, a breach of this Agreement, Agency’s Installation Obligations, Agency’s sharing of any data in connection with the Flock system, Flock employees or agent or Non-Agency End Users, or otherwise from Agency’s use of the Services, Flock Hardware, Agency Hardware and any Embedded Software, including any claim that such actions violate any applicable law or third Party right. Although Flock has no obligation to monitor Agency’s use of the Services, Flock may do so and may prohibit any use of the Services it believes may be (or alleged to be) in violation of Section 3.1 or this Agreement.

10. MISCELLANEOUS

10.1 Compliance With Laws. The Agency agrees to comply with all applicable local, state and federal laws, regulations, policies and ordinances and their associated record retention schedules, including responding to any subpoena request(s). In the event Flock is legally compelled to comply with a judicial order, subpoena, or government mandate, to disclose Agency Data or Agency Generated Data, Flock will provide Agency with notice.

10.2 Severability. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect.

10.3 Assignment. This Agreement is not assignable, transferable or sublicensable by either Party, without prior consent. Notwithstanding the foregoing, either Party may assign this Agreement, without the other Party's consent,

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(i) to any parent, subsidiary, or affiliate entity, or (ii) to any purchaser of all or substantially all of such Party's assets or to any successor by way of merger, consolidation or similar transaction.

10.4 Entire Agreement. This Agreement, together with the Order Form(s), the then-current Reinstall policy (https://www.flocksafety.com/reinstall-fee-schedule), Deployment Plan(s), and any attached addenda are the complete and exclusive statement of the mutual understanding of the Parties and supersedes and cancels all previous written and oral agreements, communications and other understandings relating to the subject matter of this Agreement, and that all waivers and modifications must be in a writing signed by both Parties, except as otherwise provided herein. None of Agency’s purchase orders, authorizations or similar documents will alter the terms of this Agreement, and any such conflicting terms are expressly rejected. In the event of any conflict of terms found in this Agreement or any other terms and conditions, the terms of this Agreement shall prevail.

10.5 Relationship. No agency, partnership, joint venture, or employment is created as a result of this Agreement and Agency does not have any authority of any kind to bind Flock in any respect whatsoever. Flock shall at all times be and act as an independent contractor.

10.6 Governing Law; Venue. This Agreement shall be governed by the laws of the State in which the Agency is located. The Parties hereto agree that venue would be proper in the chosen courts of the State of which the Agency is located. The Parties agree that the United Nations Convention for the International Sale of Goods is excluded in its entirety from this Agreement.

10.7 Publicity. Upon prior consent from Agency, Flock has the right to reference and use Agency’s name and trademarks and disclose the nature of the Services provided hereunder in each case in business and development and marketing efforts, including without limitation on Flock’s website.

10.8 Export. Agency may not remove or export from the United States or allow the export or re-export of the Flock IP or anything related thereto, or any direct product thereof in violation of any restrictions, laws or regulations of the United States Department of Commerce, the United States Department of Treasury Office of Foreign Assets Control, or any other United States or foreign agency or authority. As defined in Federal Acquisition Regulation (“FAR”), section 2.101, the Services, the Flock Hardware and Documentation are “commercial items” and according to the Department of Defense Federal Acquisition Regulation (“DFAR”) section 252.2277014(a)(1) and are deemed to be “commercial computer software” and “commercial computer software documentation.” Flock is compliant with FAR Section 889 and does not contract or do business with, use any equipment, system, or service that uses the enumerated banned Chinese telecommunication companies, equipment or services as a substantial or essential component of any system, or as critical technology as part of any Flock system. Consistent with DFAR section 227.7202 and FAR section 12.212, any use, modification, reproduction, release, performance, display, or disclosure of such commercial software or commercial software documentation by the U.S. Government will be

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governed solely by the terms of this Agreement and will be prohibited except to the extent expressly permitted by the terms of this Agreement.

10.9 Headings. The headings are merely for organization and should not be construed as adding meaning to the Agreement or interpreting the associated sections.

10.10 Authority. Each of the below signers of this Agreement represent that they understand this Agreement and have the authority to sign on behalf of and bind the Parties they are representing.

10.11 Notices. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered; when receipt is electronically confirmed, if transmitted by email; the day after it is sent, if sent for next day delivery by recognized overnight delivery service; and upon receipt, if sent by certified or registered mail, return receipt requested.

FLOCK NOTICES ADDRESS:
1170 HOWELL MILL ROAD, NW SUITE 210
ATLANTA, GA 30318
ATTN: LEGAL DEPARTMENT
EMAIL: [email protected]
AGENCY NOTICES ADDRESS:

ADDRESS: 600 Elm Street
San Carlos, CA 94070
/FlockAgencyNoticeAddress1/
ATTN: Rebecca Mendenhall /FlockAgencyNoticeAttention1/
EMAIL: [email protected]/

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Sole Source Letter for Flock Safety™ ALPR Cameras and Solution Flock Safety is the sole manufacturer and developer of the Flock Safety ALPR Camera. Flock Safety is also the sole provider of the comprehensive monitoring, processing, and machine vision services which integrate with the Flock Safety ALPR Camera.

The Flock Safety ALPR camera and devices are the only Law Enforcement Grade ALPR System to offer the following combination of proprietary features:

1. Vehicle Fingerprint Technology™:
○ Patented proprietary machine vision to analyze vehicle license plate, state recognition, and vehicle attributes such as color, type, make and objects (roof rack, bumper stickers, etc.) based on image analytics (not car registration data) ○ Machine vision to capture and identify characteristics of vehicles with a paper license plate and vehicles with the absence of a license plate ○ Ability to ‘Save Search’ based on description of vehicles using our patented Vehicle Fingerprint Technology without the need for a license plate, and set up alerts based on vehicle description
○ Only LPR provider with “Visual Search” which can transform digital images from any source into an investigative lead by finding matching vehicles based on the vehicle attributes in the uploaded photo
○ Falcon Flex™: an infrastructure-free, location-flexible license plate reader camera that is easy to self install. Falcon Flex ties seamlessly into the Flock ecosystem with a small and lightweight camera with the ability to read up to 30,000 license plates and vehicle attributes on a single battery charge

2. Integrated Cloud-Software & Hardware Platform:
○ Ability to capture two (2+) lanes of traffic simultaneously with a single camera from a vertical mass
○ Best in class ability to capture and process up to 30,000 vehicles per day with a single camera powered exclusively by solar power
○ Wireless deployment of solar powered license plate reading cameras with integrated cellular communication weighing less than 5lbs and able to be powered solely by a solar panel of 60W or less
○ Web based footage retrieval tool with filtering capabilities such as vehicle color, vehicle type, vehicle manufacturer, partial or full license plate, state of license plate, and object detection
○ Utilizes motion capture to start and stop recording without the need for a reflective plate
1170 Howell Mill Rd. NW · Suite 210, Atlanta, GA 30318
As of 12.13.2022

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○ Motion detection allows for unique cases such as bicycle capture, ATV,motorcycle, etc.○ On device machine processing to limit LTE bandwidth consumption○ Cloud storage of footage○ Covert industrial design for minimizing visual pollution

3. Transparency & Ethical Product Design:○ One-of-a-kind “Transparency Portal” public-facing dashboard that details thepolicies in place by the purchaser, as well as automatically updated metrics fromthe Flock system○ Built-in integration with NCMEC to receive AMBER Alerts to find missing children○ Privacy controls to enable certain vehicles to “opt-out” of being captured

4. Integrated Audio & Gunshot Detection:○ Natively integrated audio detection capabilities utilizing machine learning torecognize audio signatures typical of crimes in progress (e.g., gunshots)

5. Live Video Integration:○ Ability to apply computer vision to third-party cameras using Wing™LPR,transforming them to evidence capture devices using the same VehicleFingerprint technology offered on the Flock Safety Falcon™ALPR cameras○ Wing™Livestream integrates live stream traffic cameras,publicly or privatelyowned livestream security cameras into one cloud-based situational awarenessdashboard to increase response time in mission-critical incidents○ Manage various government intelligence including ALPR, livestream cameras,CAD, automatic vehicle location (AVL) on Flock Safety’s Wing™Suite○ Access Wing™Replay to unlock enhanced situational awareness with 7-dayfootage retention, Hot List Live Video Instant Replay, and downloadable MP4

6. Partnerships:○ Flock Safety is the only LPR provider to officially partner with AXON to benatively and directly integrated into Evidence.com○ Flock Safety is the only LPR provider to be fully integrated into a dynamicnetwork of Axon’s Fleet 3 mobile ALPR cameras for patrol cars and FlockSafety’s Falcon cameras○ Access to additional cameras purchased by our HOA and private businesspartners, means an ever-increasing amount of cameras and data at no additionalcost 1170 Howell Mill Rd. NW · Suite 210, Atlanta, GA 30318

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7. Warranty & Service:○ Lifetime maintenance and support included in subscription price○ Flock Safety is the only fully integrated ALPR one-stop solution from productionof the camera to delivery and installation○ Performance monitoring software to predict potential failures, obstructions, tilts,and other critical or minor issues Thank you,
Garrett Langley CEO, Flock Safety
1170 Howell Mill Rd. NW · Suite 210, Atlanta, GA 30318

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Consideration of Adopting a Resolution Adopting the City of San Carlos 2023 Strategic Plan.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution adopting the 2023 Strategic Plan which includes the City’s mission, vision, core values, strategic goals, and objectives.

FISCAL IMPLICATIONS:

There are no fiscal implications associated with adopting the 2023 Strategic Plan (“Strategic Plan”). Specific tasks and projects in furtherance of the Strategic Plan’s goals and objectives may require funding appropriation. Staff will submit these requests to the City Council separately, on an as-needed basis.

BACKGROUND:

The purpose of a strategic plan is to identify issues, needs, and interests that are of strategic importance to our community. It is developed to ensure that the City Council and staff address and prioritize the community’s long-term vision and goals. To contrast, most City initiatives and projects are considered ongoing, routine, and necessary to deliver the day-to-day operations and responsibilities of the City. This work is considered “operational.” A well-defined strategic plan, with clear objectives and tasks, helps ensure that City staff continue to propel the community’s priorities and goals forward, while still meeting their day-to-day responsibilities.

Every year, the City Council reviews its strategic goals and objectives and adopts a strategic plan.

The Strategic Plan is the culmination of several planning meetings including a Council mini- retreat, a strategic planning retreat, and an executive/management team meeting, where staff develops specific objectives and tasks for the upcoming year in a document called the Work Plan.

A facilitation team consisting of consultants Debra Figone and Shawn Spano leads the Council and staff through the City’s annual strategic planning process, as they have for the last several years.

During the public strategic planning retreat on January 27, 2023, the City Council and City staff reviewed progress that’s been made toward achieving the City’s 2022 Strategic Plan. In addition, the City Council reviewed the City’s mission, vision, and values and discussed goals and objectives for 2023.

On March 3, 2023, the City’s executive/management team met to assess the Council’s feedback and recommendations from the January 27, 2023 strategic planning retreat. The team developed

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the proposed 2023 Strategic Plan (attached as Exhibit A to Resolution) for the Council’s review and adoption. Staff also developed the 2023 Work Plan (Attachment 2), which includes detailed actions and/or tasks needed to achieve the Council’s 2023 Strategic Plan. Staff provides updates to the Council on completed Work Plan action items two to three times per year.

ANALYSIS:

At the January 27, 2023 strategic planning retreat, no changes were made to the City’s mission, vision, and core values outlined in Exhibit A to the Resolution. The Council did, however, recommend changes to the City’s goals. The table below compares the Council’s 2022 strategic goals with its 2023 strategic goals.
2022 Strategic Goals 2023 Strategic Goals
Child Care & Youth Programming Child Care
Climate Mitigation &
Adaptation

Climate Change Mitigation, Adaptation
& Resilience
Downtown Specific Plan

Downtown

Housing

Housing

Mobility, Traffic & Transportation
Infrastructure

Mobility, Traffic & Transportation
Infrastructure

Northeast Area Specific Plan

Northeast Area Specific Plan

Senior Services & Programming

Recreation Services
To summarize the table above, child care continues to be an important, strategic goal. Youth programming and senior services and programming were removed because many of the objectives and tasks associated with these are recurring and receive consistent and steady focus as part of staff’s day-to-day operations. The titles of the climate change and downtown goals were slightly modified to more broadly encompass the range of objectives that fall within their scope.

Finally, a new goal, recreation services, was added to address the community and the Council’s growing interest in exploring new recreational opportunities and improved parks, open spaces, and facilities for the health and well-being of community members of every age.

The 2023 Work Plan (Attachment 2) further defines the tasks and actions staff will pursue in furtherance of the 2023 Strategic Plan. Staff will provide its first update on the Work Plan in June.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution adopting the 2023 Strategic Plan as attached; or

2. Amend the 2023 Strategic Plan before adoption; or

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3. Do not adopt a Resolution adopting the 2023 Strategic Plan; or

4. Develop an alternative based on additional Council discussion.

Respectfully submitted by:

Nil Blackburn, Assistant City Manager
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution
Exhibit A to Resolution - 2023 Strategic Plan

2. 2023 Work Plan

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RESOLUTION NO. 2023 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS ADOPTING THE CITY OF SAN CARLOS 2023 STRATEGIC PLAN.

WHEREAS, the San Carlos City Council recognizes the importance of strategic planning and leadership in achieving the mission, vision, and goals of the City of San Carlos; and WHEREAS, the City Council, City staff, and members of the public met January 27, 2023 in a strategic planning retreat; and
WHEREAS, the Council provided staff with guidance to revise language in the Strategic Plan and to develop objectives and a Work Plan to attain the Council’s strategic goals for 2023; and WHEREAS, on March 3, 2023, staff met with the facilitators and developed the 2023 Strategic Plan and 2023 Work Plan to meet the Council’s goals; and WHEREAS, City staff will provide the Council with Work Plan updates two to three times per year.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of San Carlos that the attached 2023 Strategic Plan, which includes the City’s mission, vision, core values, goals and objectives, be approved.
* * * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Resolution was duly and regularly passed and adopted by the City Council of the City of San Carlos at a scheduled meeting thereof held on the 13th day of March 2023, by the following vote:

AYES, COUNCILMEMBERS:___________________________________________ NOES, COUNCILMEMBERS:___________________________________________ ABSENT, COUNCILMEMBERS:___________________________________________ ________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
Exhibit A: 2023 Strategic Plan

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C I T Y O F S A N C A R L O S
2 0 2 3 S T R A T E G I C P L A N

THE SAN CARLOS STRATEGIC PLAN
The San Carlos Strategic Plan identifies current issues, needs and interests that are of strategic importance to the quality of life of the community. Addressing these issues requires the leadership focus of the City’s elected officials and professional staff for an extended period of time, typically several years. The Strategic Plan is not a summary of all City services. The issues identified in the plan are unique because they have an urgent impact on the community and because they are complex.

Strategic goals are a central feature of the Strategic Plan. These are established to find ways to address the strategic issues now and into the foreseeable future. If a solution is found, and there is an on-going need to address the issue, this will occur through the City’s on-going service delivery system. At that time, the issue will no longer be identified as a strategic goal.

HOW THE STRATEGIC PLAN IS DEVELOPED
The Strategic Plan is developed through an annual process that involves the City Council and City professional staff in facilitated, collaborative working sessions. The process is completed early each year so that the Strategic Plan can be incorporated into the City’s budget.

The plan is a document comprised of the City’s mission, vision and core values statements, the strategic goals and objectives for the next planning period and detailed work plans that will accomplish the goals.

Strategic goals are identified based on the knowledge and understanding that each participant in the process has about what is of strategic importance to the community. City Council members are elected by the residents to govern and represent their needs and interests. They bring the perspective of the residents and business of the community. Professional City staff members are trained in local government management and services. They bring the perspective of how to address the complex issues that are of concern. Through the strategic planning work sessions, these two unique perspectives come together to identify the areas of focus for the next planning period.

THE STRATEGIC PLAN PROCESS
The key steps to the process are listed below.

City Council Mini-Retreat. City Council, City Manager and City Attorney brainstorm the current community issues of strategic importance. This is a public meeting.

City Council and City Management Team Retreat. This is a facilitated, collaborative working session. The participants review accomplishments from last year; review the City’s mission, vision and values to ensure relevance; check the status of current strategic plan issues and progress; and identify new strategic issues to work on for the next year and possibly beyond. Council strategic goals and objectives are established at a high level through this process. The “handoff” is given to City staff to work through the details by refining the goals and objectives and developing work plans to achieve Council’s strategic goals. This is a public meeting.

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City Management Team Retreat. This facilitated, collaborative working session with the City’s management team is designed to refine the strategic goals, develop objectives to achieve each goal and establish work plans that identify specific tasks, set timelines and assign responsibility for accomplishment. This is an internal staff meeting.

Council Adoption of Strategic Plan and Progress Updates. After all work sessions are complete, a final Strategic Plan is agendized for Council adoption at a regularly scheduled Council meeting.

City staff then periodically updates Council on the progress of strategic goals during future Council meetings. All of these Council meetings are public meetings.

MISSION
The City of San Carlos provides high-quality services and facilities to its residents in an equitable, sustainable, transparent, responsive, and friendly manner to foster an inclusive, safe, and healthy community now and in the future.

VISION
The City of San Carlos will continue to lead with confidence into the future as a desirable, vibrant, equitable, inclusive, and business friendly community, admired by all as a great place to live, learn, work, and play.

CORE VALUES
N o t i n p r i o r i t y o r d e r
•Fostering a safe, diverse, welcoming, and engaged community that recognizes the importance of social equity
•Ensuring fiscal responsibility and the sustainability of San Carlos’ resources, infrastructure, and social/cultural environment
•Proactively protecting our physical environment from the threats of climate change and reducing greenhouse gas emissions
•Recognizing the needs and challenges of the community and promoting its well-being. •Demonstrating high ethical and professional standards, including high quality customer service
•Leading and managing effectively by engaging the community, thinking strategically, remaining proactive, and planning for the future
•Supporting the well-being of employees, investing in their development, and aligning staffing and resources with the demand for City services 2023 STRATEGIC GOALS AND OBJECTIVES
I n a l p h a b e t i c a l o r d e r

1. Child Care: The City of San Carlos will encourage and support the creation of child care facilities by reducing barriers to creation and expansion.

Objective #1: Develop a plan on how to apply child care funds that are collected through impact fees.

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Objective #2: Consider zoning/co-location options for child care sites.

Objective #3: Consider reducing or waiving City-controlled permit fees for child care projects.

Objective #4: Create/modify resources and learning opportunities for stakeholders.

2. Climate Change Mitigation, Adaptation, and Resilience: The City of San Carlos will support sustainability initiatives and address climate change. As part of its focus on climate change, the City of San Carlos will continue to prepare for reduced vulnerability and adapt to changing climate conditions such as wildfires, flooding, drought, and sea level rise.

Objective #1: Plan and implement measures approved by the Council in the Climate Mitigation and Adaptation Plan (CMAP).

Objective #2: Perform community engagement and outreach.

Objective #3: Update emergency plans and policies.

3. Downtown: The City of San Carlos will work with residents, property owners, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan to understand and ensure that the downtown meets the needs of the community and businesses now and into the future.

Objective #1: Implement the community engagement strategy for the Downtown Specific Plan.

Objective #2: Create the Downtown Specific Plan and corresponding implementation strategies.

Objective #3: Ensure that the vision and goals of the Downtown Specific Plan come to fruition.

Objective #4: Explore safe, interim improvements to parklets while the Downtown Specific Plan is being developed and implemented.

4. Housing: The City of San Carlos will actively encourage and support the creation of housing to provide a safe, inclusive, diverse, and affordable supply by facilitating development of housing for all income levels.

Objective #1: Increase the number of Below Market Rate (BMR) housing units to meet local and regional housing requirements (e.g.: regional collaboration, grant programs, acquisition, and new development).

Objective #2: Facilitate completion of projects currently underway.

Objective #3: Increase housing production.

Objective #4: Consider General Plan amendments and rezoning in the Northeast Specific Plan to include housing.

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5. Mobility, Traffic and Transportation Infrastructure: The City of San Carlos will actively pursue plans and strategies for improving mobility, traffic, parking, transportation infrastructure, and street maintenance while encouraging alternative modes of transportation to provide efficient, safe, and effective movement throughout the city.

Objective #1: Implement the Bicycle and Pedestrian Master Plan to encourage alternative modes of transportation and improve mobility.

Objective #2: Identify and implement citywide street and intersection projects and initiatives to improve traffic flow and parking.

Objective #3: Develop community education, reporting, outreach, and information tools using change management principles and practices.

Objective #4: Implement Safe Routes to School improvements to increase bicycle and pedestrian safety.

Objective #5: Structure a partnership among the City, property owners, businesses, and employers and leverage resources to create effective trip reduction strategies through the creation of a Transportation Management Agency (TMA).

6. Northeast Area Specific Plan: The City of San Carlos will work with residents, property owners, stakeholders, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan in response to continued development interest in the life sciences and biotechnology sectors, and develop policies and strategies to incorporate housing as part of this new development.

Objective #1: Create outreach and engagement opportunities that actively involve Northeast Area stakeholders and the San Carlos community in the visioning and development of the Specific Plan.

Objective #2: Develop a “preferred scenario,” or a preferred plan for the future that envisions and describes the appropriate mix of land uses, mobility improvements, flooding and climate change strategies, and other necessary initiatives to plan for and support a thriving Northeast Area.

Objective #3: Initiate the environmental review of the preferred scenario.

7. Recreation Services: The City of San Carlos will explore new recreational opportunities by completing an assessment of parks, open space, and other recreation facilities to support the health and well-being for community members of all ages.

Objective #1: Complete a Parks, Open Space, and other Recreational Opportunities Master Plan Assessment (12-24 month process).

Objective #2: Explore additional recreational opportunities at North Crestview Park that meet the needs of the community.

Objective #3: Assess new opportunities to implement Trails Connection Plan for public trails.

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2023 Work Plan

C I T Y O F S A N C A R L O S
2 0 2 3 S T R A T E G I C W O R K P L A N U P D A T E ***Assume “Actions/Tasks” listed below will occur within 12 months of adoption of this update (or by March 2024), unless otherwise explicitly stated.

Child Care: The City of San Carlos will encourage and support the creation of child care facilities by reducing barriers to creation and expansion.

Objective #1: Develop a plan on how to apply child care funds that are collected through impact fees.

Actions/Tasks:

1. Develop and bring to the Council for consideration a strategy on how to distribute child care impact fee funds, including guidance on whether to prioritize certain types of providers and the structure by which such funding should be provided (e.g., grants versus loans).

Objective #2: Consider zoning/co-location options for child care sites.

Actions/Tasks:

1. Consider rezoning to allow child care centers in single-family residential districts on sites that were previously schools, religious facilities, or community centers.

Objective #3: Consider reducing or waiving City-controlled permit fees for child care projects.

Actions/Tasks:

1. Incorporate waiver of City-controlled permit fees for child care centers into annual update for user fee schedule.

Objective #4: Create/modify resources and learning opportunities for stakeholders.

Actions/Tasks:

1. Conduct a Child Care Roundtable Event with stakeholders, the Child Care Subcommittee, and City staff.

Climate Change Mitigation, Adaptation, and Resilience: The City of San Carlos will support sustainability initiatives and address climate change. As part of its focus on climate change, the City of San Carlos will continue to prepare for reduced vulnerability and adapt to changing climate conditions such as wildfires, flooding, drought, and sea level rise.

Objective #1: Plan and implement measures approved by the Council in the Climate Mitigation and Adaptation Plan (CMAP).

Actions/Tasks:

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2023 Work Plan

1. Review and update City standards related to creek setbacks, buffer zones, and minimum floor elevations.

2. Continue to coordinate with One Shoreline to integrate its sea level rise mitigation planning into City’s planning initiatives.

3. Work with Peninsula Clean Energy to administer funds for EV charging incentive program for multifamily buildings.

4. Conduct a fee study to develop an in lieu fee to offset greenhouse gas emissions associated with projects exempted from the City’s all electric reach code.

5. Develop a program for use of the in lieu, impact, or other related funds to implement electrification projects, i.e. solar, EV chargers on public property, etc.

6. Coordinate with regional and state agencies, and neighboring jurisdictions (Belmont, Redwood City, and San Mateo County) to study, develop, and implement coordinated approaches to flood protection, sea level rise, and rising groundwater levels due to climate change.

Objective #2: Perform community engagement and outreach.

Actions/Tasks:

1. Host Earth Day event at the Farmers’ Market in collaboration with partners to promote sustainability related resources and programs.

2. Plan and host a sustainability block party this summer.

3. Organize annual community creek cleaning event in the fall.

4. Investigate feasibility of an adopt-a-drain program.

Objective #3: Update emergency plans and policies.

Actions/Tasks:

1. Adopt updated Emergency Operations Plan (EOP) by July 2023.

2. Build Emergency Operations Center roster and communication plan by July 2023.

3. Deliver EOC training to City staff, including Cal OES courses and exercises.

Downtown: The City of San Carlos will work with residents, property owners, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan to understand and ensure that the downtown meets the needs of the community and businesses now and into the future.

Objective #1: Implement the community engagement strategy for the Downtown Specific Plan.

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2023 Work Plan

Actions/Tasks:

1. Continue to work with the Downtown Advisory Committee (DTAC) and obtain their feedback in developing the preferred concepts to inform development of the Specific Plan.

2. Involve the community in the Specific Plan process through Community Workshops to gather their input, shape the future vision for the area, and share information and key findings.

3. At key stages of the project, invite the public to open houses to learn more about the project and provide feedback.

4. Hold study sessions with the Planning and Transportation Commission and the City Council to share public input, alternative concepts, and shared preferences; and receive guidance and feedback to be used to prepare the Specific Plan.

5. Distribute a Spotlight Newsletter to inform the community about the preferred vision for downtown San Carlos.

Objective #2: Create the Downtown Specific Plan and corresponding implementation strategies.

Actions/Tasks:

1. Select the preferred concept for Laurel Street and street/roadway design and beautification for all other streets within the Downtown Specific Plan area.

2. Develop a comparative analysis of multimodal circulation for selected alternatives.

3. Analyze impacts and tradeoffs of potential street closures and reconfigurations, including sitewide parking demand.

4. Determine the location and design of public spaces (parks, plazas, and street closures), sustainability features, and community facility options.

5. Prepare an infrastructure development services plan and budget as a key chapter of the Specific Plan.

6. Prepare and release Draft Specific Plan.

7. Begin environmental evaluation.

Objective #3: Ensure that the vision and goals of the Downtown Specific Plan come to fruition.

Actions/Tasks:

1. Conduct and complete market demand analyses, economic studies, and develop implementation recommendations.

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2023 Work Plan

2. Recommend strategic public improvements, including timing/phasing, and key catalyst projects and programs.

3. Develop implementation strategies and financing mechanisms for short- and long-term goals. Discover opportunities to leverage public financing with private investment.

4. Work with Public Works/Engineering, Parks & Recreation, and Fire to provide regular updates, share key information, receive feedback and determine necessary steps to develop Plans, specifications, and estimates needed to implement first phase streetscape and roadway improvements identified in the Specific Plan.

Objective #4: Explore safe, interim improvements to parklets while the Downtown Specific Plan is being developed and implemented.

Actions/Tasks:

1. Research and investigate safe options to beautify parklets and surrounding areas with art, water walls, and planter boxes.

Housing: The City of San Carlos will actively encourage and support the creation of housing to provide a safe, inclusive, diverse, and affordable supply by facilitating development of housing for all income levels.

Objective #1: Increase the number of Below Market Rate (BMR) housing units to meet local and regional housing requirements (e.g.: regional collaboration, grant programs, acquisition, and new development).

Actions/Tasks:

1. Explore strategically acquiring property for future affordable housing projects, maintaining relationships with the local broker community and bringing opportunities to the Council for direction as needed.

2. Explore the acquisition of market rate units to convert to BMR and complimentary strategies for leveraging BMR Housing Funds to increase BMR housing supply. Staff is reviewing and working with representatives from two programs, one from the California Community Housing Agency (CalCHA) and the other from the California Statewide Communities Development Authority (CSCDA).

Objective #2: Facilitate completion of projects currently underway.

Actions/Tasks:

1. Continue development of affordable housing project at 1232 Cherry Street.

2. Complete regulatory agreements for market rate multi-family projects building BMR units.

Objective #3: Increase housing production.

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2023 Work Plan

Actions/Tasks:

1. Continue to expedite ADU approvals and provide guidance/resources to homeowners.

2. Adopt Updated ADU Ordinance.

3. Adopt Objective Design Standards for single-family, including SB 9 units, and multi- family residential projects.

4. Implement the 2023-2031 Housing Element and report on its progress as required by the State within the Housing Element Annual Progress Report due every year in April.

Objective #5: Consider General Plan amendments and rezoning in the Northeast Specific Plan to include housing.

Actions/Tasks:

1. See Goal, Northeast Specific Plan, Objective 2, Task 2 (below).

Mobility, Traffic and Transportation Infrastructure: The City of San Carlos will actively pursue plans and strategies for improving mobility, traffic, parking, transportation infrastructure, and street maintenance while encouraging alternative modes of transportation to provide efficient, safe, and effective movement throughout the city.

Objective #1: Implement the Bicycle and Pedestrian Master Plan to encourage alternative modes of transportation and improve mobility.

Actions/Tasks:

1. San Carlos Avenue pedestrian safety improvements phase III – Wellington to Beverley.

2. Brittan Avenue Sidewalk Construction – Sunset Drive to Rogers Avenue.

3. Alameda de las Pulgas Corridor Improvement (Four Corners).

4. Coordinate with C/CAG on a countywide shared micro-mobility policy/program.

5. Identify funding mechanisms and public/private partnership opportunities to support and enhance transportation, traffic, and mobility.

Objective #2: Identify and implement citywide street and intersection projects and initiatives to improve traffic flow and parking.

Actions/Tasks:

1. Perform citywide traffic signal study.

2. Increase PCI through Annual Pavement Rehabilitation program.

3. Implement Neighborhood Traffic Management Program.

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2023 Work Plan

4. Develop a citywide policy for the residential parking permit program.

Objective #3: Develop community education, reporting, outreach, and information tools using change management principles and practices.

Actions/Tasks:

1. Maintain citywide construction activities webpage.

2. Develop additional ways to outreach to the community to ensure they understand changes that will impact them.

Objective #4: Implement Safe Routes to School improvements to increase bicycle and pedestrian safety.

1. Enhance traffic and pedestrian safety through education and enforcement.

2. Analyze crosswalk improvements at San Carlos Avenue and Kenton, San Carlos Avenue and Prospect, and intersection of School Street, Woodland Ave. and Chestnut Street.

3. Crosswalk stripping and marking at various locations per SRTS.

4. Arroyo Avenue and Chestnut Street SRTS improvements.

Objective #5: Structure a partnership among the City, property owners, businesses, and employers and leverage resources to create effective trip reduction strategies through the creation of a Transportation Management Agency (TMA).

1. Hold a Study Session with the City Council and Planning and Transportation Commission with regard to transportation management agencies.

2. Perform outreach and coordinate with developers, property owners, and businesses; set up development participation thresholds; and, create the organizational framework for the TMA.

Northeast Area Specific Plan: The City of San Carlos will work with residents, property owners, stakeholders, business owners, committees, commissions, the Chamber of Commerce, and all other interested members of the community to develop a plan in response to continued development interest in the life sciences and biotechnology sectors, and develop policies and strategies to incorporate housing as part of this new development.

Objective #1: Create outreach and engagement opportunities that actively involve Northeast Area stakeholders and the San Carlos community in the visioning and development of the Specific Plan.

Actions/Tasks:

1. Involve Northeast Area property owners and business owners through focus group meetings to gather their input and vision for the future of the area.

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2023 Work Plan

2. Involve the community in the Specific Plan process through community workshops to gather their input, shape the future vision for the area, and share information and key findings.

3. Participate in monthly Harbor Industrial Association meetings to create a feedback loop with stakeholders to gather input and share process updates.

4. Create a Northeast Area Specific Plan website to inform the community about the planning process and update the website at key milestones throughout the planning process.

5. Distribute a Spotlight Newsletter which focuses on the Northeast Area Specific Plan process and how the community can be involved.

Objective #2: Develop a “preferred scenario,” or a preferred plan for the future that envisions and describes the appropriate mix of land uses, mobility improvements, flooding and climate change strategies, and other necessary initiatives to plan for and support a thriving Northeast Area.

Actions/Tasks:

1. Gather the critical information that is needed to make informed decisions about the future vision of the Northeast Area. This includes conducting an existing conditions analysis, including an economic, land use, environmental, transportation, and utilities evaluation.

2. Explore the possibility of introducing housing as a new land use and its compatibility with the existing industrial uses through discussions with stakeholders, housing analyses, and economic analyses.

3. Conduct case study reviews of areas with similar characteristics to learn what has been successful in similar communities.

4. Develop alternative scenarios, or different options, based on community input, existing conditions review and analysis, and case studies. Identify what is best and most desired from the alternatives to create the preferred scenario.

Objective #3: Initiate the environmental review of the preferred scenario.

Actions/Tasks:

1. Once the preferred scenario is drafted, develop a project description as a first step in the environmental review process.

Recreation Services: The City of San Carlos will explore new recreational opportunities by completing an assessment of parks, open space, and other recreation facilities to support the health and well-being for community members of all ages.

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2023 Work Plan

Objective #1: Complete a Parks, Open Space, and other Recreational Opportunities Master Plan Assessment (12-24 month process).

Actions/Tasks:

1. Request funding as part of the Fiscal Year 2023-25 budget process.

2. Post a Request for Proposals to hire a consultant to facilitate the process.

3. Schedule community input meetings.

4. Initiate a conceptual design of a community center with community engagement.

Objective #2: Explore additional recreational opportunities at North Crestview Park that meet the needs of the community.

Actions/Tasks:

1. Request funding in Fiscal Year 2022-23.

2. Post a Request for Proposals to hire a consultant.

3. Schedule community input meetings.

Objective #3: Assess new opportunities to implement Trails Connection Plan for public trails.

Actions/Tasks:

1. Request funding as part of the Fiscal Year 2023-25 budget process.

2. Obtain new public trail easements in the community.

3. Work with neighboring agencies on regional trail connections.

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CITY COUNCIL

STAFF REPORT
MEETING DATE: March 13, 2023
ITEM TITLE: Consider the Advantages and Disadvantages of an Elected Versus Appointed City Treasurer Position and Provide Direction to Staff as to Whether to Submit the Matter to the San Carlos Electorate as Part of the November 2024 Consolidated Municipal Election.

RECOMMENDATION:

Staff recommends that the City Council receive a report on the need for a City Treasurer and the advantages and disadvantages of an elected versus appointed City Treasurer position and provide staff direction as to whether to forward the matter to the San Carlos electorate as part of the November 2024 consolidated Municipal Election.

FISCAL IMPLICATIONS:

The cost associated with the City Treasurer position is somewhat dependent upon the individual selected for the position. Base compensation for the City Treasurer is $560 per month. Health and welfare benefits can vary depending on the individual, but have been budged at $2,100 per month. The Fiscal Year 2022-23 budget for the City Treasurer’s Department is $33,900.

The San Mateo County Elections Office estimates that the cost range to conduct a special election in November 2023 would be between be $304,000 to $364,800. However, the cost of adding a measure to the November 2024 General Municipal Election would be marginally higher than the cost of running a General Municipal Election with only City Council and City Treasurer seats on the ballot.

BACKGROUND:

The City Treasurer position and duties are established by the California Government Code Section 41001-41007 (Attachment 1). General Law cities such as San Carlos are required to have an elected or appointed City Treasurer. Currently, the position of City Treasurer is an elected office. The only qualifications in State law for elected City Treasurers is that they must be at least 18 years old and registered voters of the City. The City is prohibited from establishing any other requirements.

The City Treasurer is required to prudently invest and manage City funds, currently in excess of $180 million, to adhere to all laws and regulations governing municipal finance, and to review and approve all warrants including payroll registers. The City Treasurer position has mandatory duties and responsibilities under State law and as part of best practices. The Treasurer should be knowledgeable of numerous accounting and fiscal reporting requirements mandated by the Government Accounting Standards Board. In the past several years with the new governmental accounting pronouncements, the duties of the City Treasurer have become significantly more

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complex. In short, this position performs critical City functions that should require specialized education and experience to properly discharge these duties. Unlike members of the City Council, this elected position has no independent policy-making authority.

For this reason, most cities now have appointed City Treasurers. The law also provides that the City Council, by resolution, can delegate this appointment authority to the City Manager. This is currently the case with the City Clerk position. The City Treasurer is not a full time position.

Converting the Treasurer from an elected position to an appointed one will ensure that the position is filled by a qualified candidate, appointed either by the City Council or City Manager. San Carlos’ routine financial tasks are performed by the Administrative Services Director and accounting staff.

The Administrative Services Director or other qualified city employee may be appointed Treasurer.

In San Mateo County, many cities have appointive City Treasurers. The voters in the Cities of Millbrae, San Bruno, Belmont, and South San Francisco, all in the last 15 years approved appointment of their City Treasurers.

Advantages/Disadvantages of an elected City Treasurer may include, but not be limited to:

Advantages:
•More direct public oversight through the electoral process and financial review provided by the City Treasurer;
•Elected officers may provide “checks and balances” to actions of the City Council; and •There is a residency requirement for the position.

Disadvantages:
•Lack of mandatory minimum professional qualifications for the City Treasurer position (other than being 18 years of age and a City resident); •Applicant pool is limited to City residents;
•Duplication and potential conflict, between duties and activities of the elected position versus professional staff;
•The electoral process runs the risk of politicizing functions that are now generally technical and ministerial pursuant to law; and
•Cost (for periodic elections, salary, benefits and supplies).

Additionally, specific to the elected City Treasurer, it should be noted that the financial “checks and balances” system has improved over the years pursuant to new requirements for annual audits, use of outside independent auditors, adoption of investment policies consistent with detailed investment requirements set forth in the Government Code, and the maintenance of fidelity bonds covering city officers as a means to safeguard public funds.

ANALYSIS.

Making the City Treasurer position appointive would help ensure that the City is able to appoint an individual to this office who possess the necessary education, training, and experience to perform their respective duties effectively and consistently with the direction of the City Council as delegated to the City Manager. It would eliminate the possibility that individuals, whose only qualification is that they are adult residents of the City, could be elected to assume responsibilities for which they are unqualified, with the potential of creating significant risk to the City’s efficient operations.

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In evaluating the desirability of an elected versus appointed Treasurer, the Council may wish to consider whether:
•the appropriate nature and degree of oversight/supervision for the office is best achieved by an elected or appointed office
•the appropriate qualifications for the office are best assured by an elected or appointed office
•the operational needs of the City are best met by an elected or appointed office SUMMARY:

The term for the sitting elected City Treasurer in San Carlos expires in 2024. Voter approval of a ballot measure to change the Treasurer position to appointive would not be effective until the existing term expires. The Council could by resolution delegate appointment authority to the City Manager if the measure passes.

If the intention of the City Council is to ask the voters whether to change the position to appointive before the end of the current City Treasurer’s term, a special election would be required, which is authorized by law. This would prevent a new term from starting after the November 5, 2024 election. As indicated above, there is a significant cost for a special election, especially if no other measures are on the same ballot. If the measure to make the City Treasurer position appointive occurs on November 5, 2024 and if there are no candidates, the appointment could occur at the end of the current term. However, if a Treasurer is elected in the 2024 election, the elected official would serve the remainder of her/his term until 2028 and then the position would become appointed.

ALTERNATIVES:

Options available to the City Council include:

1. Direct the City Attorney to draft a measure for consideration by the Council for a special election; or

2. Direct the City Attorney to draft a measure for consideration by the Council for the November 5, 2024 consolidated Municipal Election; or

3. Defer action on this item to a future time; or

4. Provide alternate direction
Respectfully submitted by:

Gregory Rubens, City Attorney
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Government Code Section 41001-41007 (City Treasurer)

2.Procedure for voter approval (Govt. Code 36508-510)

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Attachment 1 - Government Code Section 41001-41007 (City Treasurer) 41001.

The city treasurer shall receive and safely keep all money the treasurer receives. (Amended by Stats. 2017, Ch. 77, Sec. 1. (SB 742) Effective January 1, 2018.) 41002.

(a) The city treasurer shall comply with all laws governing the deposit and securing of public funds and the handling of trust funds in his or her possession. (b) If the city has issued bonds, the city treasurer shall use a system of accounting and auditing that adheres to generally accepted accounting principles. (Amended by Stats. 2017, Ch. 77, Sec. 2. (SB 742) Effective January 1, 2018.) 41003.

The city treasurer shall pay out money only on warrants signed by legally designated persons. (Amended by Stats. 2017, Ch. 77, Sec. 3. (SB 742) Effective January 1, 2018.) 41004.

Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances. The city treasurer shall file a copy with the legislative body.
(Amended by Stats. 2017, Ch. 77, Sec. 4. (SB 742) Effective January 1, 2018.) 41005.

The city treasurer shall perform such duties relative to the collection of city taxes and license fees as are prescribed by ordinance.
(Added by Stats. 1949, Ch. 79.)
41006.

The city treasurer may appoint deputies.
(Amended by Stats. 2017, Ch. 77, Sec. 5. (SB 742) Effective January 1, 2018.) 41007.

The deputies shall hold office at the pleasure of the city treasurer and receive such compensation as is provided by the legislative body.
(Added by Stats. 1949, Ch. 79.)

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Attachment 2 - Procedure for Voter Approval (Govt. Code 36508-510) 36508.

At any municipal election, or a special election held for that purpose, the city council may submit to the electors the question whether the elective officers, or any of them except council members, shall be appointed by the city council; provided, however, that the city council shall not submit such question to the electors more often than once in an 11-month period. (Amended by Stats. 2010, Ch. 699, Sec. 11. (SB 894) Effective January 1, 2011.) 36509.

The question shall be printed on the ballots used at the election substantially in one of the following forms:
(a) “Shall the offices of city clerk and city treasurer be appointive?”; or (b) “Shall the office of city clerk be appointive?”; or (c) “Shall the office of city treasurer be appointive?” The words “yes” and “no” shall be so printed on the ballots that the voters may express their choice.
(Amended by Stats. 1957, Ch. 765.)
36510.

If a majority of the votes cast on the proposition is for it, the city council shall appoint such officers at the expiration of the terms of the officers then in office, and on a vacancy in any such office. Such officers shall hold office during the pleasure of the city council and, notwithstanding Section 36502 to the contrary, are not required to be residents or electors in the city. The city council may by ordinance vest in the city manager its authority to appoint such officers.

9.b
March 13, 2023

Packet Pg. 162