Agenda packet — San Carlos City Council, April 8, 2024

CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
April 08, 2024 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 recommended by the California Department of Health. To maintain public health and safety, please do not attend in person if you are experiencing respiratory symptoms (e.g. cough, runny nose, and/or sore throat).

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 as authorized by Assembly Bill 2449.

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

6. 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.

7. CONSENT CALENDAR
a. Motion to Waive Reading of All Ordinances.
b. Approve the February 26, 2024 City Council Regular Meeting Minutes. c. Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Good City Company for Planning Staffing Consulting Services for the Community Development Department’s Planning and Economic Development & Housing Divisions, and Other Departments as Requested, for a Period of Three Years, with the Option of Two OneYear Extensions, in an Amount Not to Exceed $400,000 from March 21, 2024 to June 30, 2024; Thereafter Not to Exceed $1,200,000 Per Fiscal Year for a Total Contract Amount NottoExceed $6,000,000.
d. Accept the Quarterly Reports from City Commissions and Boards. e. Adopt a Resolution Authorizing the City Manager to Execute a FiveYear Professional Services Agreement with AMS Printing for OnCall Publishing, Printing, and Mailing Services for a NottoExceed Amount of $1,000,000, or $200,000 Annually.
f. Adopt a Resolution Authorizing an Amendment to the Professional Services Agreement with CSG Consultants, Inc. for Building Permit Plan Review Consultant Services in an Amount Not to Exceed $140,000 for the Fiscal Year 202324. g. Adopt a Resolution Awarding the 2023 Pavement Rehabilitation Project C9416, Authorizing the City Manager to Execute an Agreement with G. Bortolotto & Company, Inc. in the Amount of $4,847,767.85, and Authorizing the Expenditure of $969,600 for a 20% Project Contingency Budget.

8. NEW BUSINESS
a. Consideration of Adopting a Resolution Setting a Public Hearing on June 10, 2024, Pursuant to Proposition 218, to Consider Three Years of Annual Increases in Wastewater Rates and Introduction of an Ordinance Amending Section 13.08.160 of the Municipal Code – Sewer Service Charges and Fees. b. Consideration of Introducing an Ordinance Amending San Carlos Municipal Code Chapter 2.24 Commissions, to Update the Meeting Frequency for the Economic Development Advisory Commission.

9. 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.

10. 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 City’s Reasonable Accommodations 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 cityclerk @cityofsancarlos.org. 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
April 08, 2024 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.

Remote Participation :

Councilmembers may participate in this meeting remotely as authorized by Assembly Bill 2449.

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

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

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

9. 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.

10. 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.

2 CITY OF SAN CARLOS
City Council/Successor Agency to the
Redevelopment Agency/Housing Authority
Regular Meeting
April 08, 2024 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.

Remote Participation :

Councilmembers may participate in this meeting remotely as authorized by Assembly Bill 2449.

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

1. CALL TO ORDER

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

3. PLEDGE OF ALLEGIANCE

4. CHANGES TO THE ORDER OF THE AGENDA

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

9. 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.

10. 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.

3 San Carlos City Council/Successor Agency to the
Redevelopment Agency/Housing Authority Regular Meeting
Council Chambers, City Hall
600 Elm Street, San Carlos, CA 94070
February 26, 2024 7:00 PM

MINUTES

ROLL CALL

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

Staff Present: Nil Blackburn, Assistant City Manager
Lisa Costa Sanders, Principal Planner Consultant
Greg DaCunha, Deputy Fire Chief
Sajuti Haque, Senior Management Analyst
Paul Harris, Financial Services Manager
Jenny Liu, Senior Management Analyst
Jeff Maltbie, City Manager
Rebecca Mendenhall, Administrative Services Director
Crystal Mui, City Clerk
Lisa Porras, Planning Manager
Gregory Rubens, City Attorney
Al Savay, Community Development Director

1. CALL TO ORDER

Mayor Dugan called the meeting to order at 7:00 PM.

2. ASSEMBLY BILL 2449 TELECONFERENCE REQUESTS

None.

3. PLEDGE OF ALLEGIANCE

Mayor Dugan led the Pledge of Allegiance.

4. CHANGES TO THE ORDER OF THE AGENDA

None.

5. PRESENTATIONS

a. Present a Proclamation Recognizing February 2024 as Cancer Prevention Month.

Mayor Dugan present ed a proclamation to Rob Tufel, CEO of Cancer Support Community , recognizing Cancer Prevention Month.

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Mr. Tufel spoke on the importance of Cancer Prevention Month.

b. Present a Proclamation Recognizing February 2024 as American Heart Month.

Mayor Dugan presented a proclamation recognizing American Heart Month to Molly St Clair, Senior Development Director at the American Heart Association.

Ms. St. Clair spoke on the importance of American Hearth Month.

6. COUNCIL COMMUNICATIONS AND ANNOUNCEMENTS

In honor of Black History Month, Councilmember Collins recognized Lee Thompson for his services on the San Carlos City Council in 2000.

Councilmember Collins also provided updates from the County’s Housing and Community Development Committee and the Caltrain Electrification Project.

Mayor Dugan reminded the Community of the March 5th election.

7. PUBLIC COMMENT

None.

8. CONSENT CALENDAR

Vice Mayor McDowell pulled item ‘i’ from the Consent Calendar.

MOTION: Approve City Council Consent Calendar Items ‘a’ through ‘h’.

MOVER: Adam Rak
SECONDER: Ronald Collins
AYES: Collins, Venkatesh, Rak, McDowell, Dugan
NAYS: None.

RESULT: Motion Passed 5 – 0

a. Motion to Waive Reading of All Ordinances.

b. Approve the January 18, 2024 City Council Special Meeting Minutes.

c. Approve the January 22, 2024 City Council Special Meeting Minutes.

d. Accept the Fiscal Year 2023 -24 Second Quarter Financial Report for the Period Ending December 31, 2023.

e. Accept the Fiscal Year 2023-24 Second Quarter Investment Report for the Period Ending December 31, 2023.

f. Adopt a Resolution Acknowledging Receipt of the Fiscal Year 2022 -2023 Fire Inspection Report in Compliance with California Health and Safety Code Section 13146.4. Resolution 2024-016

g. Deny Claims of Damian and Chandra Arvitzu, Carilee Chen, Teresa Cloyd, Mark Donovan, Cesar Fonseca, Ryan Heidari, Gregory and Jennifer Holmes, Kent Apartments LLC, Tae Kim,

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Tim Philibosian, Alejandro Ramirez, Sondra Renly, Patrick and Belinda Spiteri, Andrew Stebbins, Brian Wong, and Alfred Giovannetti.

h. Deny Claim of Pacific Hacienda HOA.

i. Adopt a Resolution Approving the Plans and Specifications for the San Carlos Avenue Pedestrian Safety Improvement Project Phase III C1806 and Authorizing a Call for Bids.

This item was pulled from the Consent Calendar for a staff presentation.

8i. Adopt a Resolution Approving the Plans and Specifications for the San Carlos Avenue Pedestrian Safety Improvement Project Phase III C1806 and Authorizing a Call for Bids.

Vice Mayor McDowell requested staff to provide an overview of the San Carlos Avenue Pedestrian Safety Improvement Project.

Public Works Director Steven Machida presented the project plans and responded to Council questions.

MOTION: Adopt Resolution 2023-017 Approving the Plans and Specifications for the San Carlos Avenue Pedestrian Safety Improvement Project Phase III C1806 and Authorizing a Call for Bids.

MOVER: Sara McDowell
SECONDER: Adam Rak
AYES: McDowell, Collins, Venkatesh, Rak, Dugan
NAYS: None.

RESULT: Motion Passed 5 – 0

9. PUBLIC HEARING

a. Consideration of Introducing an Ordinance Amending Title 18 of the San Carlos Municipal Code Chapters 18.07 - Industrial Districts and 18.30 - Use Permits, and Adding a New Chapter 18.14A - Northeast Area Overlay District.

Planning Manager Lisa Porras presented on the proposal to update the Municipal Code to include a Northeast Area Overlay District and then, along with City Attorney Greg Rubens, responded to Council questions.

Public Comments
None.

MOTION: Move to Close the Public Hearing.

MOVER: Adam Rak
SECONDER: Ronald Collins
AYES: Rak, McDowell, Collins, Venkatesh, Dugan
NAYS: None.

RESULT: Motion Passed 5 – 0

Senior Anaylst Sajuti Haque responded to Council’s additional question regarding the next steps for the project.

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MOTION: Introduce Ordinance 1611 Amending Title 18 of the San Carlos Municipal Code Chapters 18.07 - Industrial Districts and 18.30 - Use Permits, and Adding a New Chapter 18.14A - Northeast Area Overlay District.

MOVER: Pranita Venkatesh
SECONDER: Adam Rak
AYES: Venkatesh, Rak, McDowell, Collins, Dugan
NAYS: None.

RESULT: Motion Passed 5 – 0

10. NEW BUSINESS

a. Consideration of Introducing an Omnibus Ordinance Approving the San Carlos Municipal Code Clean-up Amendments to Various Sections of the Municipal Code and to Conform Chapter 3.14 – Public Projects, with Updated Informal Bidding Threshold Amounts under State Law.

City Clerk Crystal Mui presented the proposed minor updates to the Municipal Code.

Vice Mayor McDowell suggested a review of the ‘Do Not Knock Registry’ and Solicitor Permit processes to consider if they’re working as intended. The suggestion received Council support and will be agendized on a future agenda.

MOTION: Introduce Ordinance 1612 Approving the San Carlos Municipal Code Clean - up Amendments to Various Sections of the Municipal Code and to Conform Chapter 3.14 – Public Projects, with Updated Informal Bidding Threshold Amounts under State Law.

MOVER: Sara McDowell
SECONDER: Ronald Collins
AYES: Collins, Venkatesh, Rak, McDowell, Dugan
NAYS: None.

RESULT: Motion Passed 5 – 0

11. AGENDA SETTING

None.

12. ADJOURNMENT

The meeting adjourned at 7:50PM.

Crystal Mui,
City Clerk

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 8, 2024
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Agreement with Good City Company for Planning Staffing Consulting Services for the Community Development Department’s Planning and Economic Development & Housing Divisions, and Other Departments as Requested, for a Period of Three Years, with the Option of Two One-Year Extensions, in an Amount Not to Exceed $400,000 from March 21, 2024 to June 30, 2024; Thereafter Not-to-Exceed $1,200,000 Per Fiscal Year for a Total Contract Amount Not-to-Exceed $6,000,000.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing the City Manager to execute a contract with Good City Company to continue support staffing consulting services for the Planning Divisions, Economic Development & Housing Division of the Community Development Department, and for other departments, as requested, for a period of three years, with the option of two one-year extensions, in an amount not to exceed $400,000 from March 21, 2024 to June 30, 2024; thereafter not-to-exceed $1,200,000 per fiscal year, for a total contract amount not-to-exceed $6,000,000.

FISCAL IMPLICATIONS:

There is no fiscal impact associated with this recommendation and no additional budget appropriation is necessary at this time.

Funding for the Good City Company contract would come from the budget allocated for the “Contractors” account for Community Development, Current Planning, Advance Planning, Economic Development, and Housing in-lieu.

A portion of the fees will be offset by developer fees. Table 1 provides account information for each division.

Table 1: Budget appropriations for “Contractors” account Division Account number Allocated Budget (FY 24/25)
Community Development 1640000-520330 $11,496
Current Planning 01191000-520330 $366,000
Advance Planning 01191001-520330 $191,800
Economic Development 01640033-520330 $168,200
Housing In-lieu 02929100-520330 $324,300
Key Development Projects 01191000-407009 Developer Fees/Deposit Collected

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BACKGROUND:

The Community and Economic Development Department has relied on contract staffing services for many years, particularly supplemental staffing services to assist the City’s full-time staff with processing development applications, managing complex projects, facilitating key development applications, and supporting long-range planning and implementation initiatives. Support staffing enables the Community Development Department to adjust its staffing needs up or down in accordance with economic cycles and fluctuations in workload demand.

Current Development Activity: In the past few years, market demand activity resulted in more development applications, including complex projects for proposed research and development, and biotech and life science developments. In addition, City Council priorities have given rise to two specific plans initiated and underway at the same time. Also, state mandates require staff attention to additional projects, such as completion of objective design standards which require a higher level of expertise. All of these give rise to requests for meetings, responding to inquiries from the public and local-regional-state agencies, organizing and conducting public outreach, and consultant management and oversight.

Furthermore, in recent years, the City has experienced a substantial increase in projects critical to its strategic objectives. This surge necessitates considerable staff engagement in meeting requests, research, background analysis, and strategizing to fulfill these objectives.

Consequently, there’s a frequent need to extend research and advisory capacities through contract staffing. These contracts not only provide routine assistance but also offer strategic guidance, requiring the inclusion of a senior staff and policy advisor for special projects or initiatives. Moreover, there are instances where planning services must extend to other departments to support inter-departmental projects, such as open space planning with the Park and Recreation Department or transportation planning with the Public Works Department.

The desire to have additional contract staff to supplement departmental needs is also due to the increase in complex, key development projects (such as 60+ townhomes Vista del Grande project, research and development proposals by Alexandria development, specific plan projects, state- driven ordinance updates, state-driven annual reporting, etc.). These projects require additional oversight and a higher level of experience and expertise to administer through the entitlement and approval process within very short turnaround times.

The Need for Contract Planning Services: Full-time City staffing occasionally fluctuates with employees moving on from their positions, or common day-to-day absences. With this fluctuating demand, the Community Development Department can increase support staffing services to respond to the continued variations in workload to maintain quality customer service and quality products. Support staffing allows the Community Development Department to grow and reduce staff as needed in response to economic cycles and workload demand.

ANALYSIS:

Request for Qualifications: A request for qualifications (RFQ) was released for six weeks to solicit statements of qualifications from qualified firms. The RFQ was sent directly to firms, and posted on the City’s website, Planetizen (a professionally recognized independent resource for planning), and the American Planning Association (APA) website. The Community and Economic Development Department received six responses from 4Leaf, City Advisors, CSG, Good City Company, Interwest, and VCA code and short-listed two qualified firms. Table 2 indicates main office locations of responding firms.

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Table 2: Office locations of responding firms
Firm Location
1 4Leaf Santa Cruz, CA
2 City Advisors Rancho Mission Viejo, CA
3 CSG Orange, CA; Foster City, CA
4 Good City Company Redwood City, CA
5 Interwest Loveland, CO; Fremont, CA
6 VCA Code Orange, CA
The criteria for shortlisting firms included their ability to be physically present at City Hall, professional standing and experience in the Bay Area, alignment of planning services with the City's needs, and the regular availability of staff. Notably, some firms primarily operated in Southern California, limiting their in-person availability, while others proposed billing for travel expenses.

After careful consideration, two firms were shortlisted (CSG and Good City Company) and subsequently interviewed in-person by a selection committee consisting of Al Savay (Community and Economic Development Director), Andrea Mardesich (Assistant Community Development Director), Chris Valley (Chief Building Official), and Rucha Dande (Principal Planner). The interviews allowed the committee to engage with the firms' principals and key staff members.

Following the interviews, staff recommends that Good City Company be retained for planning staffing consulting services. Notably, the hourly rates offered by Good City Company are comparable to the other firm (see Table 3 below).

Table 3: Comparison of Hourly Rates
Position Good City Company
Hourly Rate
CSG Hourly Rate
Principal Planner $195 $200
Senior Planner $170 $185
Associate Planner $140 $170
Economic Development Coordinator $140 Service not provided About Good City Company: Good City Company is co-owned by Lisa Costa Sanders and Aaron Aknin. The staff are familiar with the City’s policies and procedures and have developed a good rapport with City staff, regional agencies, and the development community. Good City Company has served the City of San Carlos for many years with high quality and professional expertise and has a significant amount of historical knowledge and institutional memory that continues to be a high-value asset. In choosing Good City Company, staff determined that although the competing firms proposed competent staffing, they would not necessarily be available in-person per City’s needs, and there would be a significant investment in time and training to assimilate new staff.

Good City Company provides a unique service by providing staff that can work up to 40 hours per week at City Hall alongside regular, full-time city staff. Other firms interviewed by the City could not readily meet this need.

Agreement: Under this agreement it is recommended that the total contract cap be set at an

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amount not to exceed $6,000,000 to cover the initial three years, and two, one-year extensions with each year not to exceed $1,200,000. Altogether, this amounts to 5 years and a total of $6,000,000, costs will be covered by appropriations under the current and future budgets for Current Planning, Advance Planning, Economic Development and Housing Contract Services.

It is important to note that the expenditure on the contract may vary depending on the annual activity level, potentially falling below the maximum contract limit in certain years. Moreover, deposits received for significant development projects will offset the expenses incurred by Good City Company for each project. To address these costs, the Council has already allocated funds for FY 2024-25, as detailed in Table 1.

The subsequent increase in budget allocation compared to previous planning staffing services contract aims to accommodate the increased hourly billing rates based on the current market and the ability to help with cross-functional projects without necessitating subsequent contract amendment from the City Council.

Contract Timeline: For operational efficiency, if approved by the Council, the contract will be divided into two phases. The first phase will run from March 21, 2024 to June 30, 2024, followed by the second phase spanning from July 1, 2024 to June 30, 2025 to align with the fiscal year cycle.

During the initial phase, covering March 21, 2024 to June 30, 2024, the budget allocation shall not exceed $400,000. Subsequently, for the period from July 1, 2024 to June 30, 2025, the maximum annual contract amount shall not exceed $1,200,000 per fiscal year for a period of three years, with the option of two one-year extensions and total contract amount not to exceed $6,000,000.

In addition, upon approval of this contract agreement, the Council will retroactively approve the contract for Good City Company, effective from March 21, 2024, marking the expiration of the previous contract.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution authorizing the City Manager to execute a Professional Services Agreement with Good City Company for Planning Staffing Consulting Services to the Community Development Department’s Planning and Economic Development & Housing Divisions, including Other Departments as Requested, for a period of three years, with the option of two one-year extensions, in an amount not to exceed $400,000 from March 21, 2024 to June 30, 2024; thereafter Not to Exceed $1,200,000 Per Fiscal Year for a Total Contract Amount Not to Exceed $6,000,000; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

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Respectfully submitted by:

Al Savay, Community Development Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

2. Good City Company Proposal

3. Standard Contract Agreement

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RESOLUTION NO. 2024 – ____

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

AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES

AGREEMENT WITH GOOD CITY COMPANY FOR PLANNING STAFFING CONSULTING SERVICES FOR THE COMMUNITY DEVELOPMENT DEPARTMENT’S PLANNING AND

ECONOMIC DEVELOPMENT & HOUSING DIVISIONS, AND OTHER DEPARTMENTS AS

REQUESTED, FOR A PERIOD OF THREE YEARS, WITH THE OPTION OF TWO ONE-YEAR EXTENSIONS, IN AN AMOUNT NOT-TO-EXCEED $400,000 FROM MARCH 21, 2024 TO JUNE 30, 2024; THEREAFTER NOT TO EXCEED $1,200,000 PER FISCAL YEAR FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $6,000,000.

WHEREAS, the City of San Carlos has traditionally used the expertise of consulting firms for support staffing services to respond to the workload generated by market-driven development activity; and
WHEREAS, staff wishes to enter into a Professional Services Agreement following past practice to allow the Community Development Department to grow and reduce consulting staff as needed in order to respond to economic cycles and workload demand; and WHEREAS, a formal request for qualifications (RFQ) process was used to select the best qualified firm for in-house planning staffing services; and WHEREAS, staff reviewed the proposals and statements of qualifications from six responding firms and, following two interviews, found Good City Company best qualified to continue performing the services; and
WHEREAS, Good City Company, has served the City of San Carlos for many years with high quality and professional expertise and has significant amount of historical and institutional knowledge;
WHEREAS, Good City Company is well established in the Bay Area and is able to provide regular in-person services at City Hall per the needs of the City; WHEREAS, to align with the fiscal year cycle, staff recommends the contract timeline be split into two phases: from March 21, 2024 to June 30, 2024 with contract amount not to exceed $400,000 and from July 1, 2024, not to exceed $1,200,000 per fiscal year for a period of three fiscal years, with the option of two one-year extensions and the total contract amount to not exceed $6,000,000;
WHEREAS, staff recommends the contract with Good City Company be retroactively effective starting March 21, 2024, marking the date when the previous contract with Good City Company expired;
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of San Carlos hereby authorizes the City Manager to Execute a Professional Services Agreement with Good City Company for Planning Staffing Consulting Services to the Community Development Department’s Planning and Economic Development & Housing Divisions, Including Other Departments as Requested, for a Period of Three Years, with the Option of Two One-Year

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Extensions, in an Amount Not to Exceed $400,000 from March 21, 2024 to June 30, 2024; thereafter Not to Exceed $1,200,000 Per Fiscal Year for a Total Contract Amount Not to Exceed $6,000,000.
* * * * *
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 8th day of April 2024, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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PROPOSAL TO PROVIDE IN-HOUSE

PLANNING CONSULTING STAFF

SERVICES

FOR THE CITY OF SAN CARLOS

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Good City Company | www.goodcityco.com 2

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Good City Company | www.goodcityco.com 3

TABLE OF

CONTENTS

1. Cover Letter ............................................................................................................. 4

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

3. Scope of Work ........................................................................................................ 8

4. Project Team ......................................................................................................... 12

5. References ............................................................................................................. 20

6. Proposed Compensation Rates ........................................................................... 21

7. Resumes ................................................................................................................. 23

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Good City Company | www.goodcityco.com 4

1. COVER LETTER
February 29, 2024

Rucha Dande, AICP, Principal Planner
600 Elm Street
San Carlos, CA 94070

RE: Response to Request for Qualifications for In-House Planning Staffing Services

Dear Rucha Dande,

Good City Company (Good City), is pleased to submit this proposal to provide In-House Planning Staff Consultant Services for the City of San Carlos. Headquartered in Redwood City, Good City’s technical expertise in current planning, zoning code updates, objective design and development standards development, urban design peer review, and economic development strategy and implementation is built upon decades of close collaboration with our local jurisdiction clients across the greater Bay Area.

Additionally, as creators and users of zoning codes, development standards, and economic development strategies, Good City is well qualified to communicate these requirements or plans to external stakeholders providing a bridge between them and City staff. We are confident in our ability to deliver high-quality work that meets the unique needs of the City of San Carlos throughout the engagement.

Lisa Costa Sanders will serve as project manager and primary point of contact for this proposal. We take immense pride in our long-standing relationship with the City of San Carlos and look forward to the opportunity to continue working with the City of San Carlos.

Please contact me if you have any questions or need additional information. I can be reached at (650) 333-0248 or [email protected]

Sincerely,

Lisa Costa Sanders, Principal and Co-Owner

Good City Company
601 Allerton Street Suite 110
Redwood City, CA 94063

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Good City Company | www.goodcityco.com 5

2. QUALIFICATIONS
Firm Overview
Good City Company
601 Allerton Street, Suite 110, Redwood City, CA 94063
www.goodcityco.com
Good City Company is a local government and land use consulting firm headquartered in Redwood City, California. Initially founded in 1972 as Neal Martin & Associates, the company was re-established in 2019 as Good City Company (Good City) and is a California Corporation. Good City has a long track record of serving public sector clients. Our San Francisco Peninsula-based headquarters uniquely positions the company to provide technical services tailored to the local area. Our collective experience includes:
» Policy Planning: Creation and process facilitation of policy planning initiatives such as General Plans, Specific Plans, Master Plans, Downtown/ Transit Corridor Plans, and Zoning Codes.
» Economic Development: Develop economic development strategies and economic development program implementation.
» Community Engagement: Design, execute, and facilitate inclusive and meaningful community engagement in lower-income areas and experience reaching hard-to-reach populations.
» Policy Implementation: Implementation and tracking of Long-Range Planning documents, such as General Plans, Housing Elements, Downtown Plans, and Specific Plans.
» Housing Plans: In addition to general policy planning work, Good City assists in developing strategies and policies to produce more housing for all income levels. » Local Jurisdiction Experience: Aaron Aknin, Carol Johnson, and Dara Sanders have served as Planning Directors in multiple jurisdictions locally and throughout the United States. We are users and interpreters of zoning ordinances and have

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experience in writing zoning code updates. We understand the value of zoning codes tailored to a City's specific needs and its users.

Good City understands that the City of San Carlos requests in -house consultant staff services to serve as an extension of City staff. Specifically, the City seeks contract planning staff at the level of Principal Planner, Senior Planner, Associate Planner, Assistant Planner, and other s as needed, in response to workflow demands to support the Community Development Department’s Current and Advance Planning Divisions. The work may include other City departments as needed.

Good City has significant experience in successfully guiding policy and development projects in the City of San Carlos as well as throughout Northern California. In partnership with local jurisdictions, Good City provides professional direction to ensure projects are completed in a streamlined fashion with careful attention to both local and State requirements and with adherence to local context.

Good City will provide both in-house and remote staff to review all scales of development projects and augment City staff capacity. Good City staff will assist with current and long planning projects, economic d evelopment, housing objectives and other strategic tasks as needed. Developing a collaborative approach and working with other departments and agencies is at the core of our service delivery philosophy.

Key Staff
Good City has assembled the following team for the City of San Carlos. Key team members and roles are identified below.
» Lisa Costa Sanders, Principal-in-Charge
» Aaron Aknin, Strategic Advisor
» Brandon DeLucas, Senior Planner
» Ralph Robinson, Associate Planner
» Eliza Bailey, Assistant Planner

Resumes, including key experiences, for Lisa, Aaron, Brandon, Ralph, and Eliza are found under Section 3. Additional resumes for the entire Good City team are found under Section 7.

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Good City Principals Lisa Costa Sanders and Aaron Aknin have e xtensive experience and knowledge of the City of San Carlos and have worked for numerous jurisdictions in San Mateo County and the greater Bay Area. Ms. Costa Sanders’ expertise includes managing large complex development applications, working across departments to resolve project conflicts, making clear and concise presentations to community groups, Planning and Transportation Commission and the City Council on complex topics, managing contentious planning initiatives and providing strategic advice on long-range planning studies. Ms. Costa Sanders will serve as the Principal in Charge and Principal Planner .

Aaron Aknin has served as a Community Development Director for several jurisdictions , and managed large-scale projects as well as General Plan updates, Specific Plan preparation and Zoning Code Updates. Mr. Aknin is available as a strategic advisor as needed by the City.

As noted above, Good City will assign Bandon DeLucas, Senior Planner, Ralph Robinson, Associate Planner and Eliza Bailey, Assistant Planner as in-house consultants for the City of San Carlos. We are also able to assign additi onal Good City staff members as needed for special project assignments, fill-in for staff on leave or to address increase s in workload.

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3. SCOPE OF WORK
Good City prides itself on providing highly qualified and professional planners that can adapt to the unique needs of each client. Our planners stay abreast of changes to State law and are knowledgeable in regional agencies’ oversight and best industry practices.

The experience of Good City’s senior leadership is comprehensive and wide-ranging. This will give staff the time to focus on operational or organizational projects and on long - range or development projects of specific importance to the community, Council, or City staff.

Good City Scope of Services for the City of San Carlos
includes:
» Development Review for Current Planning: Provide planning project management services for development applications ranging from single-family homes to large complex mixed-use developments. Effective project management starts with responding to public inquiries. Good City staff will provide front- counter staffing at the Planning Division counter to respond to public inquiries promptly and accurately as well as response to phone and email inquiries. » Good City staff will process planning applications, including Compliance Review, Design Review, Use Permits, Sign Permits, land use verification of Business Registrations, Tree Removal Permits, Variances, Annexations, Planned Development Zoning, Planned Development Permits, Grading and Dirt Haul and Transportation Demand Management Plans.
» Planning application review includes:
o Evaluation of applications for compliance with the City’s Zoning Code, General Plan, and applicable Specific Plans, Objective Design Criteria, Design Guidelines, and State law.
o Coordination of interdepartmental review, routing plans for comments, conducting interdepartmental meetings with relevant City departments

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and staff, and returning comments to applicants in accordance with the Permit Streamlining Act. Good City staff will proactively work to resolve any conflicts between comments, offer creative solutions, and provide clear communication to applicants.
o Review building permit submittals within timeframe established by City o Preparation of completeness letters and correspondence with applicants to communicate City objectives, requests, and standards. o Respond to community comments on development applications and work with applicants to address any concerns.
o Preparation of notices, staff reports, and presentation of projects to decision-makers at public meetings and hearings.
» Assist with Advance Planning’s Long-Range Planning Initiatives: Good City staff can assist the City with the preparation of RFPs for consultant services, management of outside consultants, and attendance at meetings as strategic advisors.
o Assist with the implementation and tracking of Long-Range Planning documents, such as General Plans, Housing Elements, Downtown Plans, and Specific Plans.
o Managing environmental review, urban design, and streetscape consultants.
o Complete environmental reviews, categorical exemptions, negative declarations, and monitor projects consistent with CEQA. » Assist with Housing and Economic Development Projects including Key Developments. Good City staff will serve as the Project Manager for key development projects and initiatives. Good City staff will follow the approach outlined above for Development Review for Current Planning projects. Particular attention will be paid to ensuring the project meets the City Council’s goals and objectives and Strategic Plan. Good City will help facilitate private and public development opportunities and assist with implementation programs identified in the 2023-2031 Housing Element. Staff will assist in strategies to produce more housing at all income levels. Good City staff will assist with economic development initiatives including program development, management and implementation, priority goal setting, analysis and research of economic development and revenue-generating opportunities. » As outlined above, Good City staff will ensure the appropriate environmental review is completed in accordance with the California Environmental Quality Act

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(CEQA). Good City staff will administer the CEQA process ensuring complete analysis, adequate community outreach, and follow legal notification procedures. » Attend the City’s commissions, committees, and associated groups. We will prepare agendas, notifications, staff reports, presentations, meeting minutes, facilitate meetings, and perform other duties as directed by the City. Good City staff is also available to attend meetings outside the City as well as coordinate with neighboring jurisdictions and regional agencies (C/CAG, Airport, SamTrans, MTC, ABAG, HCD, etc.).
» Community engagement and outreach: Facilitate community meetings or open houses - whether they relate to specific policy planning topics or broader community topics.
» Advise on strategic initiatives under the direction of the Community & Economic Development Director including research and analysis for the preparation of amendments to City Ordinances, Plans, and Resolutions.
» Good City staff will assist with Municipal Code and Zoning Code amendments.

Staff will serve as project managers for these tasks and/or act as collaborative advisors with City staff.
» Assist with training and development of policies and procedures. This may include other Good City staff members depending on the particular expertise desired.
» Support other City Departments as needed. Good City staff has experience managing capital improvement projects, overseeing large public works projects, assisting with grant management, working with the Parks Department for new park land and shared facilities, evaluating city facilities, and assisting the City Manager’s office with special projects.

APPROACH
Good City manages projects through clear and frequent communication to ensure high- quality, on-schedule work through the following tasks:
» Check-in Meetings. Organize and facilitate check-in meetings to ensure clear communication among the City departments, other City consultants, and applicants or other stakeholders, share progress, and address issues promptly. » Task-tracking. Create and maintain a task-tracking document to allow collaboration with City and consultant staff.
» Project Timeline and Milestones. Develop a detailed project timeline with key milestones for the overall process. Good City will work with City staff to identify

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competing priorities (other large development projects or policy initiatives, etc.) occurring during the same period to determine a realistic project timeline. » Consultant Management. Coordinate with the City’s other consultants and City staff on tasks and project status; collect data; review draft reports and deliverables; assist with outreach or required noticing; and ensure deliverables are accurate and aligned with the City’s objectives.
» CEQA Review. Manage the project’s compliance with the California Environmental Quality Act (CEQA), including:
o Engaging and selecting CEQA consultants to identify the appropriate level of environmental review via an RFP process or the city’s on-call environmental bench.
o Coordinating data needs among the CEQA consultant, Applicant, and interdepartmental staff.
o Reviewing CEQA documents, including Initial Studies, Mitigated Negative Declarations, and Environmental Impact Reports, and coordinating City staff review.
o Facilitating project alternatives development.
o Preparation and distribution of notices, assistance with response to comments, and preparation of reports and presentations for decision- makers.
o Ensure appropriate recording of final documents.

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4. PROJECT TEAM
Project Manager and Key Members

Lisa Costa Sanders will lead the Good City team. She has over 30 years of experience that includes interdepartmental project management, current, and long-range planning, solid waste and recycling management, budget preparation, and economic development and housing program implementation. As project manager, Lisa will serve as an extension to City staff coordinating all aspects of planning services . Aaron Aknin is available as Strategic Advisor, Brandon DeLucas will be assigned as Senior Planner, Ralph Robinson, Associate Planner and Eliza Bailey, Assistant Planner.

EDUCATION
B.S., City and Regional
Planning, California
Polytechnic State
University San Luis
Obispo

MEMBERSHIPS

American Planning
Association

LISA COSTA SANDERS
Principal, Owner Good City Company

PROFESSIONAL EXPERIENCE
Ms. Costa Sanders has been with the firm since 1992. Her experience and specialties include interdepartmental project management, current, and long-range planning, and economic development and housing program implementation. She also has extensive experience in design review, California Environmental Quality Act (CEQA), Subdivision Map Act, and worked on permit streamlining and permit tracking systems. Ms. Costa Sanders manages staff, processes large complex development projects, and manages long-range planning initiatives.

Serving as Principal Planner for the City of San Carlos, Ms. Costa Sanders provides staff assistance for larger complex planning and economic development projects. She was the Project Planner for the Wheeler Plaza Development, Landmark Hotel Development and recently completed the processing of several key development Research and Development projects including assisting with community benefit negotiation. She also assisted with property acquisition for economic development, managed city-owned properties, and managed the City’s affordable housing programs.

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Lisa also assists with General Plan and Zoning Code updates and amendments and serves as strategic advisor for Specific Plan preparation.

Lisa also served as the Acting Assistant City Manager for the City of San Carlos. In that capacity, she prepared the Mayor’s State of the City presentation, managed the City’s annual Strategic Plan update, reviewed all City Council staff reports and attended several regional meetings on behalf of the City Manager’s office.

Lisa currently assists the City of San Bruno as Project Manager for the Tanforan development project, consisting of 2 million square feet of life science office/lab space, over 1,000 housing units, and new retail space. Previously as the Acting Planning Manager for the City of San Bruno, she was the project planner for the Tanforan Remodel Project, Crossing 350-unit housing development, Pacific Bay Vistas, 308-unit multi-family development, Merimont 70 new home development, Skycrest 24 new home development, and Cedar Mills 14 new home development. She also assisted the Public Services Director with preparing reports to the City Council, managing sustainability projects, managing grant programs, and served as the Assistant Project Manager for the San Bruno Grade Separation project.

Lisa assisted the City of South San Francisco with its comprehensive General Plan update, preparation of the Environmental Impact Report, and Zoning Code Update. She also served as Project Manager for the Lindenville Specific Plan and managed the Mayor’s Commission on Race and Social Equity.

As Contract Principal Planner for the City of Redwood City, Lisa managed larger complex development applications including the Harbor View Place, Rocketship Charter School, multi -family development at 150 El Camino Real, mixed -use development at 557 E. Bayshore and 610 Walnut Street, Sandpiper School expansion and the City’s new water tank project.

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EDUCATION
B.A., Urban Studies, San
Francisco State
University
M.A., Public Policy, Cal
State Northridge

MEMBERSHIPS
American Institute of
Certified Planners
American Planning
Association
International City/
County Manager
Association

Aaron Aknin
Principal, Owner Good City Company

PROFESSIONAL EXPERIENCE
Aaron is a Partner at Good City, where he helps lead the day-to-day operations and client relations for the company. Since joining Good City, he has served as Principal for projects and policy documents in numerous local government agencies. Aaron has more than two decades of Bay Area municipal experience, including serving in an executive capacity in several cities. Aaron has frequently spoken at regional events, as well as served on panels at national conferences on topics related to development, downtown planning,
transportation, parking, affordable housing, and related issues.

Aaron most recent municipal position was with the City of Redwood City, where he served as the Assistant City Manager and Community Development Director. In this capacity, he oversaw a 70+ member department, which included the Planning, Housing, Engineering, Transportation, Front Counter Services, and Code Enforcement divisions. As the Assistant City Manager, he led key Citywide initiatives, Economic Development and also served as Interim City Manager. Aaron was in Redwood City during a time of
unprecedented growth and community involvement (2014-2019).

During his half-decade with the City, the City reviewed and processed over 4,000 new housing units, as well as several million square feet of office space. In addition, Aaron oversaw the implementation and amendments to the Redwood City Downtown Precise Plan. Aaron helped shape a first of its kind community benefits program (“Partnership Redwood City”), adoption of several key affordable housing initiatives including an inclusionary housing ordinance, an Airbnb affordable housing tax and renter protections, and the adoption the Citywide Transportation Plan.

Prior to coming to Redwood City, Aaron was with the City of Palo Alto in 2012-2014. He served as both the Assistant and Interim Director of Planning and Community Environment Department. In this capacity, he led the Planning and Transportation Divisions within the City. Key projects included the formation of the first Downtown Residential Permit Program (RPP), leading the
downtown development cap process, providing direction related to the Comprehensive Plan (General Plan), being the Planning

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Commission liaison, and overseeing several Stanford related developments. During his time in Palo Alto, Aaron focused much of his efforts on transparency by increasing the amount of available (and understandable) public information and building a connection within the community.

Aaron “grew up” as a local government professional in the City of San Bruno. He began his career in San Bruno in 2002 as an Assistant Planner, and left in 2012, after spending the last 5 years as the Community Development Director. As Community Development Director, he was in charge of the Planning, Building, and the Code Enforcement divisions, and staffed the Planning Commission.

During his time in San Bruno, the Shops at Tanforan mall was renovated for the first time in generations, and over 1,500 residential units were constructed citywide. This included over 1,000 units at “The Crossing” (former Navy Base) which included 315 affordable units. During Aaron’s tenure as Director, the first General Plan in 25 years was adopted, and the draft Transit Corridor Plan was released. Most importantly, Aaron served as the Plan Section Chief during the PG&E Pipeline Explosion and worked closely with property owners during the immediate aftermath and in the months and years following the disaster.

PROJECT EXPERIENCE HIGHLIGHTS
» Caltrain at Diridon, Project Manager/City Laison, Caltrain » Harbor Industrial Area Specific Plan, Principal-in-Charge, Belmont
» Scotts Valley Town Center Specific Plan, Principal-in-Charge, Scotts Valley
» North Fair Oaks Community Plan, Principal-in-Charge, County of San Mateo
» Redwood City Precise Plan Implementation, Lead, Redwood City*
*Work completed at a previous place of employment

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EDUCATION
Masters of Public
Administration, San
Francisco State
University

Bachelors in
Geographic Science
and Community
Planning, Northern
Arizona University

Brandon H DeLucas
Senior Planner

PROFESSIONAL EXPERIENCE
Brandon H DeLucas is a Senior Planner for Good City
Company, bringing over six years of dedicated experience in land use planning, Geographic Information Systems (GIS), and program implementation. He has worked professionally in several San Francisco Bay Area and Arizona cities.

Brandon is skilled at managing diverse stakeholders, building partnerships, and developing solutions for complex problems.

His current planning experience includes overseeing various development projects, from new single-family homes to large commercial/industrial developments. Brandon has played a supportive role in reviewing large multi-family developments and has led Comprehensive zoning text amendments. These amendments aimed to reformat chapters for ease of use,
update standards, and streamline planning review processes.

With a master’s degree in public administration and a
background in data collection, analysis, and research, Brandon has spearheaded process and system improvements,
developed small business assistance programs, and trained new staff.

In his recent role with the City of Union City, Brandon has successfully reformatted and updated the City’s Industrial Districts Chapter to establish new performance and design standards. He managed a city-wide GIS system migration and implementation and was crucial in creating objective design standards for single-family projects, including accessory dwelling units (ADUs) and SB9.

Ralph Robinson
Associate Planner

PROFESSIONAL EXPERIENCE
Ralph Robinson joined Good City in 2021. As Associate Planner, he works extensively with local communities on conformance with state requirements related to their Housing Elements, Senate Bill 9

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EDUCATION
B.A., Geography,
University of Richmond
Advanced Certificate in
Transportation & Land
Use Planning, San Jose
State University
Master of Urban
Planning, San Jose
State University
regarding residential developments, Accessory Dwelling Units, and other associated issues. Additionally, he manages public meetings, reviews development applications, and serves as a valuable resource and first point of contact for the public. He has experience in San Mateo, San Carlos, Burlingame, Alameda, Portola Valley and Atherton.

While earning his master’s in urban planning at San Jose State University, he worked with two professors through the Mineta Transportation Institute to publish original research on local solutions for transportation financing and issues of walkability and sustainability in the Bay Area. He also worked with CommUniverCity managing the creation of a robust assessment of a historically underserved Eastside San José community.

For his efforts as a student, he was recognized with an APA (American Planning Association) Outstanding Planning Student Award and his project was recognized with both a 2020 San Francisco Bay Area Planning and Urban Research Association (SPUR) Impact Award and an Award of Excellence by the APA California Chapter Northern Section. Prior to his master’s program, Ralph was Vice President of Research, Strategy & Content with ZEITGUIDE, a coaching and consultation firm targeted to chief-level executives.

He has also worked as a classroom teacher, tutor and in volunteer capacities with young students.

Ralph is a Massachusetts native whose principal focus is rethinking land use policies to make our communities livable for everyone, and capable of providing the economic, educational, mental, physical, and social benefits we all require.

PROJECT EXPERIENCE HIGHLIGHTS
» SB 9 Zoning Code Amendments, Atherton, Alameda and San Carlos, CA
» 1200-1340 Bayshore Highway, 12-acre Office + Life Science Redevelopment, Review and Entitlement Coordination,
Burlingame, CA
» Housing Element Update, Atherton, CA
Single- and Multi -Family Entitlements, Subdivisions,
Annexations, Zoning Code and General Plan Amendments

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EDUCATION
B.A, Geography, Urban
Environment,
Transportation, and
Land-Use Planning, San
Francisco State
University
M.A., Geography, San
Francisco State
University
Eliza Bailey
Assistant Planner

PROFESSIONAL EXPERIENCE
Eliza Bailey joins Good City as an Assistant Planner helping with current and advance planning projects. Eliza earned her master’s degree in geography and has spent over 11 years in high volume guest-facing roles and is eager to combine her years of facilities and operations, and project management experience. Her planning interests include housing, climate change mitigation, environmental justice, and food justice.

Eliza has completed numerous research studies on various geographical topics examining how land-use planning,
transportation, water resources, food resources, climate, race and ethnicity, and gender affect housing choices.

Key research projects include:

Personal Narratives: Discovering San Francisco’s Changing Spaces for Queer Women – an oral history of the lived experiences of » 20 participants and how the city’s changing urban and economic landscape pushed most of them out of San
Francisco.
» Qualitative analysis of San Francisco’s Hunters Point Shipyard Development project, its community impact, and how the
developers dealt with a lengthy toxic waste cleanup process. » The filling of Islais Creek, San Francisco from 1890 to 1930 – what once was a flowing river through multiple San Francisco neighborhoods now runs through an enclosed system under the street.

Outside of work, Eliza enjoys playing softball, trivia, and traveling.

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The Good City Team
The team will be supported by Principal, Senior, Associate and Assistant Planners, and other Good City members. Full resumes, including their education, experience, and expertise are included in Section 7.

LISA COSTA SANDERS
Principal, Owner

AARON AKNIN, AICP
Principal, Owner

ELIZA BAILEY
Assistant Planner

KELLY BEGGS
Housing Specialist

JAMIE BOURNE
Assistant Planner

PAUL CHYTLA-HINZE
Assistant Planner

SANDY COUNCIL
Housing Services Consultant

CHRISTOPHER

DACUMOS
Senior Planner

STEPHANIE DAVIS, AICP
Principal Planner

BRANDON DE LUCAS
Senior Planner

JEREMY DENNIS
Public Policy Manager

JACOB GARCIA
Senior Planner

VERA GIL
Housing Specialist

NICHOLAS HAMILTON
Public Policy Lead

CAROL JOHNSON, AICP
Planning Director

RON LA FRANCE
Chief Building Official

ROBERT MCDONALD
Project Manager: Land Use
Entitlements

SABINA MORA
Senior Economic Development
Planner

ARIANNA O’CONNELL
Associate Planner

MONIQUE ORZECHOWSKI
Office Manager

LESLIE PARKS
Economic Development Director

DARA PHUNG
Marketing Specialist/
Graphic Designer

RALPH ROBINSON
Associate Planner

DARA SANDERS
Principal Planner/
Planning Manager

MARK SULLIVAN, AICP
Housing Specialist

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5. REFERENCES

CITY OF SAN BRUNO
Darcy Smith, Assistant City Manager
[email protected] | (650) 616-7002
567 El Camino Real, San Bruno, CA 94066

CITY OF SAN MATEO
Christina Horrisberger, Community Development Director
[email protected] | (650) 294-4154
330 W. 20th Avenue, San Mateo, CA 94403

CITY OF SOUTH SAN FRANCISCO
Nell Selander, Economic & Community Development Department [email protected] | 650-763-6141
400 Grand Ave, South San Francisco, CA 94080

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6. PROPOSED

COMPENSATION RATES
Good City Classification
Title
City of San Carlos Classification Title Good City
Billable Rate
Principal/Partner Community and Economic Development
Director
$260
Planning Director Assistant Community and Economic
Development Director
$230
Principal Planner/Planning
Manager
Principal Planner $195
Economic Development
Director
Assistant Community and Economic
Development Director
$230
Public Policy Manager Assistant Community and Economic
Development Director
$225
Chief Building Official Building Official $170
Senior Planner/Project
Manager
Senior Planner $170
Senior Economic
Development Planner
Economic Development & Housing
Manager
$170
Public Policy Lead Senior Planner $170
Housing Services
Consultant
Senior Management Analyst $170
Associate Planner Associate Planner $140
Economic Development
Associate
Economic Development Coordinator $140
Assistant Planner Assistant Planner $130

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Planning Technician Permit Technician $100
Marketing
Specialist/Graphic
Designer
Permit Tech $100
Administrative Specialist Administrative Assistant $90

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7. RESUMES

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Agreement for Professional Services 1 Revised 04/08/2022

AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement is made and entered into as of __________________ by and between the City of San Carlos hereinafter called "CITY" and ____________________ hereinafter called "CONSULTANT".

RECITALS
This Agreement is entered into with reference to the following facts and circumstances:

A. That CITY desires to engage CONSULTANT to render certain professional services in the CITY;
B. That CONSULTANT is qualified to provide such services to the CITY and; THEREFORE, the CITY has elected to engage the services of CONSULTANT upon the terms and conditions as hereinafter set forth.

1. Services. The services to be performed by CONSULTANT under this Agreement shall include those services set forth in Exhibit A, which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Performance of the work specified in said Exhibit is hereby made an obligation of CONSULTANT under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

Where in conflict, the terms of this Agreement supersede and prevail over any terms set forth in Exhibit A.

2. Term; Termination. (a) The term of this Agreement shall commence upon the date hereinabove written and shall expire upon completion of performance of services hereunder by CONSULTANT. (b)
Notwithstanding the provisions of (a) above, CITY may terminate this Agreement without cause by giving written notice not less than ten (10) days prior to the effective date of termination, which date shall be included in said notice. In the event of such termination, CITY shall compensate CONSULTANT for services rendered, and reimburse CONSULTANT for costs and expenses incurred, to the date of termination, calculated in accordance with the provisions of paragraph 3. In ascertaining the services actually rendered to the date of termination, consideration shall be given both to completed work and work in process of completion.

Nothing herein contained shall be deemed a limitation upon the right of

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Agreement for Professional Services 2 Revised 04/08/2022 CITY to terminate this Agreement for cause, or otherwise to exercise such rights or pursue such remedies as may accrue to CITY hereunder.

3. Compensation; Expenses; Payment. CITY shall compensate CONSULTANT for all services performed by CONSULTANT hereunder in an amount based upon CONSULTANT’s hourly rates during the time of the performance of said services. A copy of CONSULTANT’s hourly rates for which services hereunder shall be performed are set forth in CONSULTANT’s fee schedule marked Exhibit B hereof, attached hereto and by this reference incorporated herein.

Notwithstanding the foregoing, the combined total of compensation and reimbursement of costs payable hereunder shall not exceed the sum of _____________________ ($________________) unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services or incurring such costs and expenses by CITY’s City Manager (for contracts less than $75,000 or authorized by City Council action for contracts $75,000 or more by motion duly made and carried).

Compensation and reimbursement of costs and expenses hereunder shall be payable upon monthly billing therefor by CONSULTANT to CITY, which billing shall include an itemized statement, briefly describing by task and labor category or cost/expense items billed.

4. Additional Services. In the event CITY desires the performance of additional services not otherwise included within the services described in Exhibit A, such services shall be authorized in advance of the performance thereof by CITY’s City Manager (for contracts less than $75,000 or authorized by City Council action for contracts $75,000 or more by motion duly made and carried). Such amendment to this Agreement shall include a description of the services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefor, the time of performance thereof, and such other matters as the parties deem appropriate for the accomplishment of such services. Any additional services causing the total contract price to exceed $75,000, shall require approval by the City Council. Except to the extent modified by written amendment, all other terms and conditions of this Agreement shall be deemed incorporated in each such amendment.

5. Records. CONSULTANT shall keep and maintain accurate records of all time expended and costs and expenses incurred relating to services to be performed by CONSULTANT hereunder. Said records shall be available to CITY for review and copying during regular business hours at CONSULTANT’s place of business or as otherwise agreed upon by the parties.

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Agreement for Professional Services 3 Revised 04/08/2022

6. Authorization. This Agreement becomes effective when endorsed by both parties in the space provided below.

7. Reliance on Professional Skill of CONSULTANT. CONSULTANT represents that it has the necessary professional skills to perform the services required and the CITY shall rely on such skills of the CONSULTANT to do and perform the work. In performing services hereunder CONSULTANT shall adhere to the standards generally prevailing for the performance of expert consulting services similar to those to be performed by CONSULTANT hereunder. CONSULTANT acknowledges the importance to CITY of the skill, competency, ability to appropriately work with CITY staff and expertise of individual staff assigned to the project, and accordingly the individuals assigned to the Project must be acceptable to CITY.

8. Documents. All documents, plans, drawings, renderings, and other papers, or copies thereof, as finally rendered, prepared by CONSULTANT pursuant to the terms of this Agreement, shall, upon preparation and delivery to CITY, become the property of CITY.

9. Relationship of Parties. It is understood that the relationship of CONSULTANT to the CITY is that of an independent contractor and all persons working for or under the direction of CONSULTANT are its agents or employees and not agents or employees of the CITY.

10. Schedule. CONSULTANT shall adhere to the schedule set forth in Exhibit A; provided, that CITY shall grant reasonable extensions of time for the performance of such services occasioned by governmental reviews of CONSULTANT’s work product or other unavoidable delays; provided, further, that such unavoidable delay shall not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, CONSULTANT’s officers or employees.

CONSULTANT acknowledges the importance to CITY of CITY’s Project schedule and agrees to put forth its best professional efforts to perform its services under this Agreement in a manner consistent with that schedule.

11. Indemnity. CONSULTANT shall indemnify, defend, and hold harmless City, its officers, employees, agents and volunteers from and against all liability, loss, damage, expense, and cost (including, without limitation, reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONSULTANT’s negligence, recklessness, or willful misconduct in the performance of work hereunder, or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage

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Agreement for Professional Services 4 Revised 04/08/2022 caused by the active negligence or willful misconduct of the City. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. Nothing herein contained shall be construed to require CONSULTANT to indemnify CITY its officers, employees, agents and volunteers against any responsibility or liability in contravention of Section 2782 of the California Civil Code.

12. Insurance. CONSULTANT shall acquire and maintain Workers’ Compensation, employer’s liability, commercial general liability, owned and non-owned and hired automobile liability, and professional liability insurance covering risks relating to CONSULTANT’s services to be performed hereunder in form subject to the approval of the City Attorney and/or CITY’s Risk Manager. The minimum amounts of coverage corresponding to the aforesaid categories of insurance per insurable event, shall be as follows:

Insurance Category Minimum Limits
Workers’ Compensation statutory minimum
Employer’s Liability $1,000,000 per accident for bodily injury or disease. CONSULTANT shall submit
to City a Waiver of Subrogation
endorsement in favor of City, its officers,
agents, employees, and volunteers.

Commercial General Liability $1,000,000 (to $5,000,000 depending on exposure) per occurrence for bodily
injury, personal injury, and property
damage, including without limitation,
blanket contractual liability and
coverage for explosion, collapse and
underground property damage hazards.

If a general aggregate limit applies,
either the general aggregate limit shall
apply separately to this project/location
or the general aggregate limit shall be
twice the required occurrence limit.

Coverage must be at least as broad as
Insurance Services Office form CG 00

01. Automobile Liability $1,000,000 per accident for bodily injury and property damage (coverage

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Agreement for Professional Services 5 Revised 04/08/2022 required to the extent applicable to
CONSULTANT’s vehicle usage in
performing services hereunder)
1Professional Liability $1,000,000 per claim and if a general aggregate limit applies, general
aggregate limit shall be twice the
required occurrence limit.

Concurrently with the execution of this Agreement, CONSULTANT shall furnish CITY with certificates and copies of information or declaration pages of the insurance required hereunder and, with respect to evidence of commercial general liability and automobile liability insurance coverage, original endorsements:
(a) Precluding cancellation or reduction in per occurrence limits before the expiration of thirty (30) days (10 days for nonpayment) after City shall have received written notification of cancellation in coverage or reduction in per occurrence limits by first class mail; (b) CONSULTANT’s general liability policies shall be primary and non- contributory, and be endorsed using Insurance Services Office form CG 20 10 to provide that City and its officers, officials, employees, and agents shall be additional insured under such policies. An endorsement providing completed operations coverage for the additional insured, ISO form CG 20 37, is also required.

Claims Made Policies
If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.

Verification of Coverage
1 Note: Professional liability insurance coverage is not required if the contractor/vendor/consultant is not providing a service regulated by the state. (Examples of service providers regulated by the state are insurance agents, professional engineers, doctors, certified public accountants, lawyers, etc.) Please check and initial the following if professional liability is NOT required for this agreement. Recommended ______ [Project Manager] Approved _______[Risk Manager]

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Agreement for Professional Services 6 Revised 04/08/2022 Consultant shall furnish the CITY with original certificates and amendatory endorsements effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the CITY before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The CITY reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Waiver of Subrogation
Consultant hereby grants to CITY a waiver of any right to subrogation which any insurer of said Consultant may acquire against the CITY by virtue of the payment of any loss under such insurance. This provision applies regardless of whether or not the CITY has requested or received a waiver of subrogation endorsement from the insurer.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Special Risks or Circumstances
CITY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Coverage
It is a requirement under this agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be made available to the Additional Insured and shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any insurance policy, whichever is greater.

Primary and Non-Contributory Coverage
The Additional Insured coverage under the Consultant’s policy shall be “primary and non-contributory” as will not seek contribution from the CITY insurance or self-insurance and shall be at least as broad as CG 20 01 04

12. Excess Insurance
The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of CITY before the CITY insurance or self-insurance shall be called upon to protect it as a named insured.

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Agreement for Professional Services 7 Revised 04/08/2022

13. Workers’ Compensation. CONSULTANT acknowledges and certifies awareness of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and CONSULTANT certifies and agrees to compliance with such provisions before commencing the performance of the work of this agreement.

14. Subcontractors (If applicable). CONSULTANT agrees to include with all subcontractors in their subcontracts the same requirements and provisions of this agreement including the indemnity and Insurance requirements to the extent they apply to the scope of the Subcontractors’ work. Subcontractors hired by CONSULTANT agree to be bound to CONSULTANT and CITY in the same manner and to the same extent as CONSULTANT is bound to CITY under the Contract documents.

Subcontract shall agree to include these same provisions in any agreement with a sub-subcontractor. CONSULTANT shall require all subcontractors to provide a valid certificate of insurance and the required endorsements included in the agreement prior to commencement of any work and will provide proof of compliance to the CITY.

Subcontractor shall agree to be bound to CONSULTANT and CITY in the same manner and to the same extent as CONSUTLANT is bound to CITY under the Contract Documents. Subcontractor shall further agree to include the same requirements and provisions of this agreement, including the indemnity and Insurance requirements, with a Sub-subcontractor to the extent they apply to the scope of the Sub-subcontractors’ work. A copy of the CITY Contract Document Indemnity and Insurance provisions shall be furnished to the subcontractor upon request.

15. Non-Discrimination. The CONSULTANT hereby assures that it will comply with Subchapter VI of the Civil Rights Act of 1964, 42 USC Section 2000 (e)(17), to the end that CONSULTANT will not exclude any person from participation in, be denied the benefits of, or be otherwise subject to discrimination from any project, program, or activity supported by this Agreement, based on the grounds of race, color, national origin, sex, disability, age, or religion,. CONSULTANT shall comply with its EEO Certification (Form PW-7). In addition, CONSUTLANT will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The CONSULTANT will take affirmative action to insure that applicants are employed and the employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, advancement, demotion, transfer,

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Agreement for Professional Services 8 Revised 04/08/2022 recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT shall at all times be in compliance with the requirements of the Federal Americans With Disabilities Act (Public Law 101-336) which prohibits discrimination on the basis of disability by public entities. The CONSULTANT agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.

15. Notice. All notices required by this Agreement shall be given to the CITY and CONSULTANT in writing, by first class mail, postage prepaid, addressed as follows:

CITY: City of San Carlos
600 Elm Street
San Carlos, CA 94070
Attention: ____________________
CONSULTANT: _____________________
Address
Phone
Attention: ______________

16. Non-Assignment. This Agreement is not assignable either in whole or in part.

17. Amendments. This Agreement may be amended or modified only by written agreement signed by both parties.

18. Business Registration. VENDOR agrees to comply with Chapter 5.04 of the Municipal Code and pay all fees required to be paid.

19. Validity. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

20. Governing Law. This Agreement shall be governed by the laws of the State of California and any suit or action initiated by either party shall be brought in the County of San Mateo, California. In the event of litigation between the parties hereto to enforce any provision of the Agreement, the unsuccessful party will pay the reasonable attorney’s fees and expenses of litigation of the successful party.

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Agreement for Professional Services 9 Revised 04/08/2022

21. Mediation. Should any dispute arise out of this Agreement, the parties shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither party shall be permitted to file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The costs of the mediator, if any, shall be paid equally by the parties. If a mediated settlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and each party shall bear its own legal costs. If a party refuses or fails to participate in mediation in good faith prior to filing a lawsuit, then that party shall be barred from recovery of attorneys fees and costs of suit.

22. Conflict of Interest. CONSULTANT may serve other clients, but none who are active within the City of San Carlos or who conduct business that would place CONSULTANT in a "conflict of interest" as that term is defined in State law.

23. Entire Agreement. Each party acknowledges that this agreement, the exhibits hereto, and the documents incorporated by reference herein constitute the complete agreement and exclusive statement of the terms and conditions between the parties, which supercedes and merges all prior proposals, understandings and all other agreements, verbal and written, between the parties relating to the subject matter of this agreement. This agreement may not be modified or altered except by written instrument duly executed by both parties.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

CITY OF SAN CARLOS:

Dated: _______________ ______________________________
Jeff Maltbie, City Manager
ATTEST:

Dated: _______________ ______________________________
Crystal Mui, City Clerk

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Agreement for Professional Services 10 Revised 04/08/2022 APPROVED AS TO FORM:

Dated: _______________ ______________________________
Gregory J. Rubens, City Attorney
CONSULTANT/CONTRACTOR/VENDOR:

I acknowledge that I have full authority to execute this agreement on behalf of the Consultant/Contractor/Vendor, and have read, understand, and agree to comply with the provisions of this Agreement, including the Insurance and indemnity requirements set forth herein.

Dated: _______________ ______________________________

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 8, 2024
ITEM TITLE: Accept the Quarterly Reports from City Commissions and Boards.

RECOMMENDATION:

Staff recommends that the City Council accept the Quarterly Reports from the City’s Commissions and Boards.

FISCAL IMPLICATIONS:

None for this action.

BACKGROUND:

Since 2020, the City Council receives quarterly reports from each Commission and Board, with updates on activities from the preceding period, along with its member attendance report.

ANALYSIS:

Attached are the Fiscal Year 2023-24 third quarter reports from the following Commissions and Boards for the period of January through March 2024:
- City Centennial Advisory Committee
- Downtown Advisory Committee
- Economic Development Advisory Commission
- Museum of San Carlos History
- Parks, Recreation and Culture Commission
- Planning and Transportation Commission
- Youth Advisory Council
ALTERNATIVES:

The alternatives available to the City Council include:

1. Accept the Quarterly Reports from City Commissions and Boards; or

2. Do not accept the Quarterly Reports from City Commissions and Boards; or

3. Provide staff with alternative direction.

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Respectfully submitted by:

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

1. City Centennial Advisory FY2024 Q3 Report

2. Downtown Advisory FY2024 Q3 Report

3. Economic Development Advisory FY2024 Q3 Report

4. Museum FY2024 Q3 Report

5. Parks, Recreation and Culture FY2024 Q3 Report

6. Planning and Transportation FY2024 Q3 Report

7. Youth Advisory FY2024 Q3 Report

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City Centennial Advisory Committee
3rd Quarter for FY 24
January 2024 – March 2024

The City Centennial Advisory Committee met three times during the third quarter, FY 2024 on January 17, February 21, and March 20, 2024. The January meeting was held in-person at the San Carlos Library Community Rooms and at the February and March meetings were held in-person at the San Carlos Adult Community Center.
• Committee members took their Oath of Office to be sworn in as official representatives of the City Centennial Advisory Committee.
• Committee members and staff brainstormed many ideas for the City Centennial Celebrations for 2025.
• Committee members prioritized beginning the process of Centennial branding processes. • Committee members received a presentation from Brian Cary, Communications Manager, to discuss the City Centennial logo.
• Committee members voted on recommendations for City Council on three different topics:
celebration date; history projects; and consideration of renaming the 700-block redevelopment.

For attendance, please see attached CCAC Attendance Log.

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Meeting Date Chris Adair
Twisha
Anand
Richard
Armanino
Connie
Barba
(Alternate)
Ellen
Bateman
(Alternate)
Patti Brown Gordy Burton
Cori
Carpenter
Janet
Castaneda
Scott
Cleaveland Jean Dehner
Louise Della
Maggiora
Debbie
Denton
(Alternate)
No Meetings held in Q1
Total Unexcused Absences
1st Quarter
No Meetings held in Q2
Total Unexcused Absences
2nd Quarter
1/17/2024 P P P E P P P P P E P P P
2/21/2024 P P P P P E P P P P P P P
3/20/2024 P P P P P E P P P P P P E
Total Unexcused Absences
3rd Quarter 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Unexcused Absences
This Fiscal Year 0 0 0 0 0 0 0 0 0 0 0 0 0
Meeting Date John Dugan
John Durkin
(Alternate)
Paula Ebejer-
Moffitt Joe Fimiani
Jennifer
Gaboury Linda Garvey
Lesley
Hoelper
(Alternate)
Rosie
Jimenez
(Alternate)*
Maya
Kacholiya
(Alternate)
Ramesh
Kamath Sufiya Kaul
Rajesh
Krishnan
(Alternate)
Neil Lundy
(Alternate)
No Meetings held in Q1
Total Unexcused Absences
1st Quarter
No Meetings held in Q2
Total Unexcused Absences
2nd Quarter
1/17/2024 P P P P P P P P P P P P
2/21/2024 E P P P P E E P E P P P E
3/20/2024 P P P P P P P P P P P E P
Total Unexcused Absences
3rd Quarter 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Unexcused Absences
This Fiscal Year 0 0 0 0 0 0 0 0 0 0 0 0 0
City of San Carlos
Centennial Advisory Committee Attendance Log
Members are expected to attend all regularly scheduled meetings and should make every effort to do so. Such attendance ensures a steady flow of communication and keeps everyone abreast of current topics under discussion. Unexcused absences from three (3) Meetings within a Fiscal Year will result in that Committee member’s seat being declared vacant by the City Clerk. For those Commissions that are scheduled to meet less than once a month, unexcused absences from two (2) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk.

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Meeting Date
Marci Lyzun
(Alternate)
Mark
Maxwell
Sara
McDowell
Sailesh
Mehra
Jessie Myers
(Alternate)
Kim
Norgaard
(Alternate)*
Brian Perkins
(Alternate) Allison Rak
David Roof
(Alternate)
Suan Rose
(Alternate) Jay Strauss
Jessica Yang
(Alternate) Will Strohl
No Meetings held in Q1
Total Unexcused Absences
1st Quarter
No Meetings held in Q2
Total Unexcused Absences
2nd Quarter
1/17/2024 P P E P P P P P P E P P
2/21/2024 E E P P E E E P E P E E P
3/20/2024 P E P E P P P E P P E E P
Total Unexcused Absences
3rd Quarter 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Unexcused Absences
This Fiscal Year 0 0 0 0 0 0 0 0 0 0 0 0 0
*Appointed by Council at 2.12.24 meeting
P = Present
U = Unexcused Absence
E = Excused Absence
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg canceled 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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Downtown Advisory Committee (“DTAC”)
Q3 Quarterly Reports
January 1, 2024 – March 31, 2024

Q3 Accomplishments

DTAC endorses the streetscape design for downtown San Carlos.

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Summary

In Q3, the DTAC met on Tuesday, March 19, 2024. This was the 7th meeting of the DTAC since they first met on June 22, 2022.

The purpose of the March 19, 2024, DTAC meeting was to consider endorsing the refined streetscape design (1100 & 1200 blocks of San Carlos Avenue; and 600, 700, and 800 blocks of Laurel Street) and ideas for programming public spaces. The project team asked the DTAC if anything was missing that is critical to advancing the vision for downtown San Carlos. DTAC members organized into three breakout groups to discuss and share their input and perspectives about the streetscape designs and programming public spaces ideas presented. DTAC representatives from each group reported back their key takeaways from their group discussion. At the close of the meeting, all DTAC members present raised their hands showing support of the streetscape design that was presented, giving city staff and the consultant team clear indication the design is moving in the right direction.

Following the DTAC’s endorsement of the streetscape design and programming ideas, technical analysis of the streetscape proposal, including traffic and parking studies, will begin.

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Meeting Date
James Bertram
(Alternate)
Madison
Blanton
Allie
Board
Amy
Buckmaster
Sreecharan
Chandrasekharan
Allison
Chang
Tom
Davids
Jean
Dehner
Samina
Ginwalla
Anthony
Kamm
Cecile
Lee
Donna
Lera
Tracy Massaro
(Alternate)
Mark
Maxwell
Monette
Meredith
Elizabeth
Min
Dylan
Karmin
Joaquin
Pedrin
No Meeting Held in Q1
Total Unexcused Absences
1st Quarter
11/14/2023 E U P E U P P P P P P P U P P U P P
Total Unexcused Absences
2nd Quarter 0 1 - U 0 0 1 - U 0 0 0 0 0 0 0 1 - U 0 0 1 - U 0 0 3/19/2024 P P P E U P P P P P E P U P P P P P
Total Unexcused Absences
3rd Quarter 0 0 0 0 1 - U 0 0 0 0 0 0 0 1 - U 0 0 0 0 0 Total Unexcused Absences
This Fiscal Year 0 1 - U 0 0 2 - U 0 0 0 0 0 0 0 2 - U 0 0 1 - U 0 0 P = Present
U = Unexcused Absence
E = Excused Absence
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg canceled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum Members are expected to attend all regularly scheduled meetings and should make every effort to do so. Such attendance ensures a steady flow of communication and keeps everyone abreast of current topics under discussion. Unexcused absences from three (3) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk. For those Commissions that are scheduled to meet less than once a month, unexcused absences from two (2) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk.

City of San Carlos
Downtown Advisory Committee Attendance Log

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CITY OF SAN CARLOS

ECONOMIC DEVELOPMENT ADVISORY COMMISSION (EDAC)

QUARTERLY REPORT, JANUARY-MARCH 2024

Commissioners
Sailesh Mehra (Chair)
Heather Liu (Vice-Chair)
Kelly Hickey, Anthony Kamm, Rajesh Krishnan, Madhura Kumar, Karen Molinari, Laura Kotee (alternate)

Advisory
Al Savay, Community Development Director
Adam Aronson, Economic Development & Housing Manager
Cristian Padilla, Economic Development Coordinator
Sajuti Haque, Sr. Management Analyst

Meetings Summary

The Economic Development Advisory Commission (EDAC) met twice during the third quarter of Fiscal Year 2024 (January-March). The first meeting, held on January 23rd, focused on the Downtown Specific Plan. Planning Manager Lisa Porras provided an overview of the project, followed by a review of community outreach efforts. WRT Design's Poonam Narkar and Jim Stickley presented the urban design concepts, and the presentation concluded with an economic analysis of the current downtown conditions by subconsultants Greensfelder Commercial Real Estate and BAE Urban Economics. Due to time constraints, EDAC tabled discussions on shop local campaigns, including the Tote Bag Giveaway designed to support small businesses during Small Business Saturday, and website articles related to the selected 10 businesses featured in the Small Business Spotlight Program.

The second meeting, held on March 26th, featured an update from Community and Economic Development Director Al Savay on commercial and residential development projects, planning initiatives like the Housing Element, Downtown Specific Plan, and Northeast Area Specific Plan, as well as ongoing affordable housing efforts sponsored by the City of San Carlos. Following the presentation, the commission adopted a resolution to establish its meeting schedule. They then revisited the tabled shop local campaigns, including the Tote Bag Giveaway and website articles for the Small Business Spotlight Program.

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Meeting Date
Sailesh Mehra
(Chair) Anthony Kamm Madhura Kumar Kelly Hickey
Heather Liu*
(Vice-Chair) Rajesh Krishnan Karen Molinari
Laura Kotee
(Alternate)
7/25/2023 - C
8/22/2023 P P P E E P P N/A
9/26/2022 - C
Total Unexcused Absences 1st Quarter 0 0 0 0 0 0 0 0
10/24/2023 P P P P P P P N/A
11/28/2023 - C
12/26/2023 - C
Total Unexcused Absences 2nd Quarter 0 0 0 0 0 0 0 0
1/23/2024 E P P U P P P N/A
2/27/2024 - C
3/26/2024 P E P P P P P N/A
Total Unexcused Absences 3rd Quarter 0 0 0 1 - U 0 0 0 0 Total Unexcused Absences
This Fiscal Year 0 0 0 1 - U 0 0 0 0
*Heather Liu's attendance has been corrected to reflect "Excused" for the 8/22/2023 meeting. Her attendance was erroneously reported as "Unexcused" on the Q1 and Q2 reports.

P = Present
U = Unexcused Absence
E = Excused Absence
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg canceled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum City of San Carlos
Economic Development Advisory Commission Attendance Log Members are expected to attend all regularly scheduled meetings and should make every effort to do so. Such attendance ensures a steady flow of communication and keeps everyone abreast of current topics under discussion. Unexcused absences from three (3) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk. For those Commissions that are scheduled to meet less than once a month, unexcused absences from two (2) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk.

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1 Museum of San Carlos History
2024 3rd Quarter Report to the San Carlos City Council

This report covers the time period from January 1 – March 31, 2024.

The Museum Board had two regularly scheduled meetings during this time period. The meetings took place on Tuesday, January 9 and March 12. Meetings were convened via Zoom.

The 3rd quarter begins a busy time for the Museum. We hold two Board meetings, begin discussion about officer position changes for the next fiscal year, start planning events and exhibits for the coming year, and, begin meetings to plan the Proposed Annual Budget. Additionally, as the weather improves, we see an increase in our weekly visitor logs.

Attendance
• Two City appointed Board members were present at the January 9 meeting, three at the March 12 meeting. • The Villagers, the Museum docent group, held an in person meeting at the Museum on January 4. Most Museum Board members attended that meeting as well.

Activities & More
 The Museum was open to the public every Saturday January through March from 1 to 4pm.  Board members and Villagers continue to inventory the artifacts in the storage rooms and sheds. Our goal is to make sure we have a complete and up to date inventory, and, remove the odds and ends that ended up in our storage but have no relevance to the history of San Carlos.  Centennial News: The Museum Board has representation on the City Centennial Committee. Our Museum Centennial Committee, which has been meeting since 2021, is ready to change out and upgrade exhibits as soon as the inventory is complete. Progress continues to be made on the San Carlos Stories continuation project as interviews continue to take place. This continuation of the oral history of San Carlos will cover the years from 2000 to present and be formatted as videos, not a book.  During this quarter we received our annual Liability Insurance invoice, it increased 40%. Therefore, the Board President reached out to the City Manager to negotiate an understanding where the City will reimburse us for this cost.
 The museum hosted San Carlos School District students and their parents on two early release Wednesday afternoons between 1:00 p.m. – 3:00 p.m.; the next one is April 3. They were both very well attended. The School District announces this opportunity in their weekly newsletter.  The Museum schedules groups for private tours when requested. Two Cub Scout troops came for tours on March 9 and March 15, and, a group of realtors held their meeting at the Museum followed by a tour on January 31. We ensure there are 5-6 docents at these events.  Four informational Zoom presentations took place February 20 and 27, and, March 5 and 12. These were informal 90 minute chats with former employees of Varian, Eimac, Lenkurt, Ampex and Litton. (6-7:30pm).  The Museum received three donations from local community members; two $150 donations and one very generous $500 donation.

The next report will be submitted at the end of the 4th quarter in June of 2024.

Respectfully Submitted by,
Molly Barton
MoSH Secretary
03/22/2024

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Meeting Date Molly Barton Andy Klein John Durkin
7/20/2023 P P P
9/21/2023 P P P
Total Unexcused Absences
1st Quarter 0 0 0
11/14/2023 P P P
Total Unexcused Absences
2nd Quarter 0 0 0
1/9/2024 P E P
3/12/2024 P P P
Total Unexcused Absences 3rd
Quarter 0 0 0
Total Unexcused Absences
This Fiscal Year 0 0 0
P = Present
U = Unexcused Absence
E = Excused Absence
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg canceled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum City of San Carlos
Museum of San Carlos History Attendance Report
Members are expected to attend all regularly scheduled meetings and should make every effort to do so. Such attendance ensures a steady flow of communication and keeps everyone abreast of current topics under discussion. Unexcused absences from three (3) consecutive Regular Meetings, will result in that Commission member’s seat being declared vacant by the City Clerk. For those Commissions that are scheduled to meet less than once a month, unexcused absences from (2) consecutive Regular Meetings will result in that Commission member’s seat being declared vacant by the City Clerk.

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Parks, Recreation & Culture Commission
Third Quarter for FY 2024
January – February 2024

The Parks, Recreation & Culture Commission met once during third quarter, FY 2024, on February 13, 2024 for a Special Meeting. The meeting was held in-person at the San Carlos Library Community Rooms.

• Commissioners received updates on the San Carlos Museum of History Board by Commissioner John Durkin.
• Commissioners approved the proposed meeting schedule for 2024. • Commissioners provided a recommendation on the Public Art Mural at Cedar Park be completed by Girl Scout Troop 62263.
• Commissioners received a presentation and participation in a study session on the Downtown Specific Plan presented by Lisa Porras, Planning Manager, and the consultants from WRT.
• Commissioners also received updates on Parks & Recreation programs and services and Current Improvement Projects such as trails and the North Crestview Master Plan from Tyler Muela, Recreation Manager.

Please see attached PR&C Commission Attendance Log.

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Meeting Date John Durkin Cecile Lee Mark Maxwell Tony Chao Bob Bollier Julie Lubetkin
(Alternate)
8/2/2023 P P E E P E
Total Unexcused Absences
1st Quarter 0 0 0 0 0 0
10/4/2023 P P P U P P
12/6/2023 P P P P P P
Total Unexcused Absences
2nd Quarter 0 0 0 1 - U P P
2/7/2024 - C
2/13/2024 P P P E P P
Total Unexcused Absences
3rd Quarter 0 0 0 0 0 0
Total Unexcused Absences
This Fiscal Year 0 0 0 1 - U 0 0
P = Present
U = Unexcused Absence
E = Excused Absence
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg canceled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum City of San Carlos
Parks, Recreation and Culture Commission Attendance Log Members are expected to attend all regularly scheduled meetings and should make every effort to do so. Such attendance ensures a steady flow of communication and keeps everyone abreast of current topics under discussion. Unexcused absences from three (3) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk. For those Commissions that are scheduled to meet less than once a month, unexcused absences from two (2) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk.

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Planning and Transportation Commission
Q3 Quarterly Reports
January 1, 2024 – March 31, 2024

Summary of Accomplishments

The Planning and Transportation Commission (PTC) held three meetings in the third quarter of FY 2023/2024 and addressed the following items:

January 16, 2024:

1. Study Session for the Northeast Area Specific Plan – Consideration of a Revised Draft Land Use Option, with Modifications to Proposed Streets and Open Space Concepts.

February 5, 2024:

1. 308 and 310 Phelps Road – Public Hearing to Consider Approving a Design Review, Conditional Use Permit, Below Market Rate Housing Plan, Protected Tree Removal Permit, Natural State Reduction Request, Tentative Subdivision Map, Dirt Haul and Grading Certificate, and Adopting Resolutions Recommending the City Council to adopt an Initial Study/Mitigated Negative Declaration, and approving General Plan Amendment and an Ordinance for a Zoning Amendment to rezone the project site from RS-3: Single-Family, Low Density to RS6: Single-Family within the Hillside Overlay District for Nine Single-Family Homes. (APNs: 049292 050; 049292- 040; 049292060) – Approved with two additional conditions: (1) the gate of the emergency vehicle access shall be designed to allow pedestrian and bicycle access and shall meet all fire department requirements. (2) the signate at the entrance to the project on Spring Valley Way shall indicate pedestrian bike access is allowed.

2. Consideration of Proposed Amendments to the San Carlos Municipal Code Title 18 (Zoning), Sections 18.07 (Industrial Districts), 18.30 (Use Permits) and Adding a New Section 18.14A (Northeast Area Overlay District) – Approved.

March 18, 2024:

1. Adopt a Resolution Recommending City Council Approval of the City of San Carlos Traffic Signal Masterplan – Approved.

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2. Adopt a Resolution Recommending City Council Approval of the Arroyo Avenue and Chestnut Street Safe Routes to School Improvements Project C2201 – Approved.

3. Consideration of General Plan Conformity for the County of San Mateo Acquisition of 626, 640 & 642 Walnut Street, San Carlos (APNs 050-131-060, 050-131-070 and 050-131-080) for Housing Purposes – Approved.

4. Presentation on the City of San Carlos’ 2023 Housing Element Annual Progress Report.

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Meeting Date Janet Castaneda Kristen Clements Ellen Garvey Jim Iacaponi David Roof 7/3/2023 - C
7/17/2023 - C
8/7/2023 - C
8/21/2023 P P P P P
9/5/2023 P E P E P
9/18/2023 P P P P P
Total Unexcused Absences
1st Quarter 0 0 0 0 0
10/2/2023 - C
10/16/2023 E P P P P
11/6/2023 P P P P P
11/20/2023 P P P P P
12/4/2023 P P P P P
12/18/2023 - C
Total Unexcused Absences
2nd Quarter 0 0 0 0 0
1/2/2024 - C
1/16/2024 P P E P P
2/5/2024 P E E P P
2/20/2024 - C
3/4/2024 - C
3/18/2024 P P P P P
Total Unexcused Absences
3rd Quarter 0 0 0 0 0
Total Unexcused Absences
This Fiscal Year 0 0 0 0 0
P = Present
U = Unexcused Absence
E = Excused Absence
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg canceled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum City of San Carlos
Planning and Transportation Commission Attendance Log
Members are expected to attend all regularly scheduled meetings and should make every effort to do so. Such attendance ensures a steady flow of communication and keeps everyone abreast of current topics under discussion. Unexcused absences from three (3) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk. For those Commissions that are scheduled to meet less than once a month, unexcused absences from two (2) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk.

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YOUTH ADVISORY COUNCIL (YAC): QUARTERLY REPORT

January 2024 – March 2024

February 2024:
• The Youth Advisory Council (YAC) launched their new Instagram account, @sancarlosyac, on February 8. By creating the social media account, YAC hopes to amplify youth voices, bring youth together, communicate upcoming youth events, spark collaboration, and empower the youth of San Carlos to become the change makers of tomorrow.

March 2024:
• On March 1, YAC hosted and operated the Youth Center Spring Dance for 5th and 6th graders and managed the coat and bag check for the 200 youth in attendance. • On March 9, YAC attended a one-day conference called “YAC Attack” at the Burlingame Community Center. During YAC Attack, YAC members learned about local government by attending a keynote panel of selected and elected officials. Additionally, YAC networked with youth council members from San Mateo and Santa Clara counties while attending workshop sessions led by both industry professionals and other youth councils. • YAC began recruitment efforts for the 2024-2026 term by promoting the YAC application, creating school-wide presentations, and communicating with local schools to spread the message about applying to be a voting member on the Council. • During the YAC Regular Meeting on March 13, council members and members-at-large participated in a Downtown Specific Plan review session. Led by the DTSP consultants, YAC members learned about the Downtown Specific Plan thus far, provided comments on suggested design features, and gave input on youth specific needs on Laurel Street. • On March 15, YAC hosted and operated the Youth Center “SCYChella” Dance for 7 th and 8th
graders and managed the coat and bag check for the 200 youth in attendance.

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Meeting Date Dylan Karmin Hannah Delizo Sufiya Kaul
Samina
Ginwalla
Annika
Gupta Zuri Kadiwar Cecily Mock
Eva
McLinden Ellora Mehta
Ava
Stathacopoulos Connor Huh
Maya
Kacholiya
(Alternate)
Michael
Sandoval
(Alternate)
7/12/2023 - C (Summer Break)
8/30/2023 P P P P P P P E P P P P P
9/13/2023 P P P P P P P P P E P P P
Total Unexcused
Absences
1st Quarter 0 0 0 0 0 0 0 0 0 0 0 0 0
10/11/2023 E P P P P P P U P P P P P
11/8/2023 P P P P P P P P P U P P P
12/13/2023 P P P P P P P P P P P P E
Total Unexcused
Absences
2nd Quarter 0 0 0 0 0 0 0 1 - U 0 1 - U 0 0 0
1/10/2024 P E P P P P P P P P P P P
2/7/2024 P P P P P P P P P E E P P
3/13/2024 E P P P U P P P P P P P P
Total Unexcused
Absences 3rd Quarter 0 0 0 0 1 - U P P P P P P P P
Total Unexcused
Absences
This Fiscal Year 0 0 0 0 1 - U 0 0 1 - U 0 1 - U 0 0 0
P = Present
U = Unexcused Absence
E = Excused Absence
QA = Mtg canceled for lack of quorum, Commissioner wasn't able to attend QP = Mtg canceled for lack of quorum, Commissioner would have been able to attend C = Mtg Canceled for any reason other than lack of quorum Members are expected to attend all regularly scheduled meetings and should make every effort to do so. Such attendance ensures a steady flow of communication and keeps everyone abreast of current topics under discussion. Unexcused absences from three (3) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk. For those Commissions that are scheduled to meet less than once a month, unexcused absences from two (2) Meetings within a Fiscal Year will result in that Commission member’s seat being declared vacant by the City Clerk.

City of San Carlos
Youth Advisory Council Attendance Log

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 8, 2024
ITEM TITLE: Adopt a Resolution Authorizing the City Manager to Execute a Five- Year Professional Services Agreement with AMS Printing for On-Call Publishing, Printing, and Mailing Services for a Not-to-Exceed Amount of $1,000,000, or $200,000 Annually.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution approving a five-year professional services agreement (“Agreement”) with AMS Printing for a total not-to-exceed amount of $1,000,000, or $200,000 annually, to provide on-call publishing, printing, and mailing services and authorizing the City Manager to execute and amend the Agreement, if needed, for additional services within the contract not-to-exceed amount. Per the Agreement, the City will have the right to cancel the agreement without cause by giving written notice not less than ten (10) days prior to the effective date of termination.

FISCAL IMPLICATIONS:

There is no fiscal impact associated with this request and no additional appropriation is necessary.

These funds are already budgeted and will be funded by the general operating budget.

BACKGROUND:

The Communications Division of the City Manager’s Office (CMO) is responsible for citywide digital and print communications. Each year, the CMO produces, publishes, prints, and distributes four Good Living newsletters and four Spotlight newsletters to every residence and business in San Carlos. The City distributes other targeted print communications such as a Mental Health Resource Guide, flyers related to sustainability programs, notices of major construction and community improvement projects, and postcards detailing workshops and opportunities for the community to provide input and feedback.

The 2023 Community Survey (question #14) asked residents what information sources they used to find out about City of San Carlos news, events, and programs. The most frequently cited answer was newsletters that are mailed to the home, mentioned by 55% of respondents. The next most frequent answer was postcards, letters, flyers, or brochures mailed to the home, mentioned by 25% of respondents. These numbers indicate that the San Carlos community places a high importance on printed communication, with 80% of respondents indicating that they rely on printed sources for City information. Unlike digital communication through social media channels or the City’s website that must be actively sought (and as such could be missed), printed media delivered to homes and businesses ensures that important information reaches every member of our community.

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In addition to the CMO, several other departments rely on the services of a single publishing and mailing vendor to distribute critical communications. These communication projects often arise on an “as-needed” basis and staff must execute these on-call communication projects quickly, without going through the contract process each time. For example, the Community Development Department distributes postcards for informational meetings and collaborative workshops regarding major development projects, the Public Works Department delivers flyers to homeowners regarding sewer, pavement, and other construction projects, and the Parks and Recreation Department sends out notices for citywide events, programs, and classes.

ANALYSIS:

The City Manager’s Office issued an RFP for on-call publishing, printing, and mailing services on January 12, 2024 and received three proposals by the due date on February 12, 2024. Three complete proposals were received in total from AMS Printing, ELXEL Creative, and Chase VP.

The three proposals received were evaluated by the Communications Team in the City Manager’s Office based on the following criteria:
Proposal completeness
Cost of services
Prior design work for city projects
Ability to complete projects on time
Local or regional firm with ability to provide all needed services in-house Of the three proposals received, only AMS Printing and Chase VP were local vendors, with ELXEL Creative based in Washington D.C. The nature of the scope of work requires in-person meetings and timely delivery of printed materials, making the selection of a remote or non-local vendor problematic.

Of the two local vendors, Chase VP and AMS Printing, only AMS Printing provided all requested details concerning process and pricing for both design work and printing work. It was evident in its proposal that Chase VP is primarily a printing company, with little graphic design experience and no other government clients. It is critical for the City to contract with a client that can provide design, printing, and mailing services in an all-in-one manner, because of deadline constraints, consistency issues, and design elements that carry over into printing practices, such as bleeding or perforated edges.

After review, it was determined that AMS Printing provided the best option for an all-in-one vendor that could provide publishing, printing, and mailing services. The City of San Carlos is currently contracted with AMS Printing and is satisfied with its performance. AMS Printing continues to meet demands and deliver projects on time and on budget for multiple departments.

AMS Printing’s proposal is included as Attachment 2.

Adopting this Resolution will allow City staff to complete on-call outreach projects in a timely manner and provide the ability to complete every step of the project from design to mailing with the same vendor. Using AMS Printing will also help to maintain a consistent look and tone for outreach communications across departments.

ALTERNATIVES:

The alternatives available to the City Council include:

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1. Adopt a Resolution authorizing the City Manager to execute a five-year professional services agreement with AMS Printing for on-call publishing, printing, and mailing services for a not to exceed amount of $1,000,000, or $200,000 annually; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

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

1. Resolution

2. AMS Printing 2024 Proposal

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RESOLUTION NO. 2024 – ____

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

AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE-YEAR PROFESSIONAL

SERVICES AGREEMENT WITH AMS PRINTING FOR ON-CALL PUBLISHING, PRINTING, AND MAILING SERVICES FOR A NOT-TO-EXCEED AMOUNT OF $1,000,000, OR $200,000 ANNUALLY.

WHEREAS, the City relies on the services of an on-call vendor to develop, publish, print and mail printed communications to all City residents and business in a timely manner; and WHEREAS, all City departments develop, produce, publish, and mail a range of different communications including, newsletters, postcards, flyers and brochures, to inform the community about news, events, projects, programs, and workshops in the city; and WHEREAS, based on the results of a 2023 Community Survey, 80% of respondents indicated they relied primarily on printed communications as their primary source of City information; and WHEREAS, the City conducted a comprehensive selection process and identified AMS as the most qualified vendor to provide on-call publishing, printing, and mailing services for the City; and NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Manager to execute a five-year professional services agreement with AMS Printing for on-call publishing, printing, and mailing services for a total not-to-exceed amount of $1,000,000, or $200,000 annually.
* * * * *
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 8th day of April 2024, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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Company Profile, History and Location Founded in 1984, AMS Printing started as a full service printing company with in-house design services, pre-press, printing and a full bindery department. Through its vast knowledge of printed materials and manufacturing capabilities customers began to request that AMS Printing produce high quality labels, index tabs, tags, datasheets, mailing pieces, publications, and other identification products. Through its use of in house printing and manufacturing capabilities, AMS Printing was able to produce these products with unparalleled quality and fast turn-around. Creating a complete line of labels, tags, index tabs, mailers, corrugated cartons, envelopes, signs, laser/inkjet labels, and index end tab folder, printed documentation services, postcards, newsletters and other publications and design services. These products helped production facilities and offices to identify and organize their workplace as well as advertise products and services in a efficient and cost effective manner. About Ron Shmargad Upon graduating with a degree in Mass Communications from University of California Berkeley, he embarked on a career that took him through several areas of the mass communications industry. I learned the skills required to run my own business in 25 years at AMS Printing, dealing with management, public relations, pre-press and printing production. The goal for the past 25+ years has been to learn hands-on as much as possible. This meant getting my hands dirty and doing the work rather than hiring others to do it at times. It meant wearing many hats and often working long hours; and, it always meant keeping my eye on the long term goal. That goal: Creating solutions for my clients that gets the job done on time, in line with the bottom line and with the best quality. Company is located at 335d Convention Way Redwood City, CA 94063 Phone: 650.298.9330 www.amsprinting.com History and Experience AMS Printing has provided print and design services for many municipalities including: City of San Carlos City of Foster City City of Redwood City City of San Mateo City of Half Moon Bay

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We are well versed with the need of municipalities need for quick, clear and effective communications. Project Team Members Dr. Mike Shmargad – Project Lead (30 Years experience, resume attached) Mr. Ron Shmargad – Project Manager (25 Years experience) Mrs. Marit Shanzer – Admin Assistant Applicable Client References 1) City of San Carlos, Contact Name: Tyler Muela, email: [email protected] Phone # 650-802-4130 (Projects: Mailing Piece, Design Jobs and Posters) 2) City of San Carlos, Contact Name: Nicole Scott, email: [email protected] Phone # 650-802-4204 (Projects: Mailing Pieces, Design Jobs and Posters) 3) City of San Carlos, Contact Name: Brian Cary, email: [email protected] Phone # 650-802-4218 (Projects: Mailing Pieces, Design Jobs and Posters) 4) City of San Carlos, Contact Name: Tamara Shapero, email: [email protected] Phone # 650-802-4194 (Projects: Mailing Pieces, Design Jobs and Posters) Identify any Suggested Modification to the Scope of Services We plan to use the latest technologies and software programs to design and print these projects. This will make any changes or modifications easy in the future. We will be more than happy to do a kick off meeting when the project starts with the relevant team members. With over 25 years of hands on experience in printing and using the standard industry software programs, we are able to produce everything from brochures, datasheets, newsletters, postcards, boxes, websites, banners and more. Popular software programs we use include: • Adobe Creative Cloud including Photoshop CC, Illustrator CC, InDesign CC, Dreamweaver CC, Fireworks CC, Flash CC and Acrobat XI • Microsoft Office including Excel, Word and Powerpoint • Cloud software such as Squarespace and Wordpress for Web design. We have also created artwork and posting for client Facebook, Google Plus and Twitter pages.

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Fee Proposal
AMS Printing Billable rate is $95.00 per hour. Each project will be estimated based on customer specifications and quantity. No project will begin without clients written approval.

Travel Expenses
We are local so we do not see any need for travel expenses.

Incremental Costs:

We do not see any incremental costs based on the projects we estimate. If the project changes scope we bill at $95.00 per hour. No additional charges will be added to projects unless written approval is received.

Insurance:

We acknowledge that an insurance certificate will be issued naming the City of San Carlos as additionally, insured and meeting the insurance requirement in Exhibit A if the contract is awarded.

City’s Standard Professional Services Agreement (Attachment A):

We acknowledge the City’s standard Professional Services Agreement is acceptable as written.

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Dr. Mike A. Shmargad 335-D Convention Way Redwood City, CA 94063 [email protected] MANAGEMENT EXPERIENCES • Managed large-scale printing projects. Including single and multi-color literature, books, and promotional materials. • Managed and supporting printing projects from design initiation, printing reviews, variable data, and customer interface. • Managed graphic design teams and managed from the graphic design through the completion of the printing project. • Providing management and marketing consulting services to businesses in the USA and abroad. • Program Manager of the development and build of the 5 Armor Multi-Purpose Vehicle (AMPV) variants. In this capacity, I conceived, led, and managed the teams that developed, and promoted the AMPV program; The Medical Evacuation, Medical Treatment, Mortar Vehicle, General Purpose, and the Command and Control vehicle. Led the AMPV vehicle delegation to the national shows such as AUSA in Washington, DC, National Guards events, and made presentations to the Army and foreign attaches at the events. • Deputy Director of Bradley Derivative, and MLRS. In this position, I planned the product development activities, manage the budget, develop the marketing campaign, interface with the customers (all levels), interfaced with production and vendors, managed shows, and planed future business development avenues and activities to capture the business. • Initiated strategic plans and road map to have exclusive distribution rights for BAE Systems for products in the USA market. One of the initial products was the LED Dome Light made by ELTAM. I drafted the business agreement that provided BAE Systems exclusive sales rights throughout the defense industry in the USA. The business was captured and was highly successful. • Led the initiative to identify potential Unmanned Aerial Vehicle (UAV) Candidate Company to be acquired by UDLP. In this initiative, I was given the task to search the US and other countries for a company that had a UAV platform with significant potential to be a major UAV platform for the US Army and NATO countries. • Managed the Strategic Business Development group for survivability solutions– developed plans and managed execution of strategic business development activities, including identification of technologies, selection of the products, market segmentation and market penetration. These activities included: contacting potential customers, preparing presentations, presenting data at shows, conduct presentations at customers’ sites, such as: Boeing, and Caterpillar, and submitting proposals. • Managed variety of projects and business activities. Responsibilities included the planning of projects, business initiatives, and management of the personnel; preparing budgets and schedules; evaluating and reporting on projects and employees progress. Business and services includes: proposal preparations, product evaluation, and product design (MMPV Ramp, and other systems), and variety of Integrate Product Teams (IPTs). • Programs Manager – Evaluated and developed programs schedules and costs, coordinated subcontractors, and manufacturing schedule. • While working at Technhac LTD., overseas, I managed the market development in the USA for the company’s product line and supported other international marketing efforts. This included preparing marketing plans, evaluation of distributors, appointing distributors, and managing orders. ENGINEERING and ENGINEERING MANAGEMENT EXPERIENCES • Chief Engineer: Conceived and the managed the design, and modification of the RG33-4X4 vehicle in preparation for AUSA shows. In addition, I managed the road shows for this vehicle across the US. • The Bradley Engineering Design Manager for more than 11 years. Managed engineering of a main armor carrier, the Bradley fighting vehicle, and the MLRS. Managed the design, material selection, development, schedule, cost, and technical personnel for the system. • Implemented and used the most advanced design tools, Computer Aided Design – 3D-Modeling, Solid-Modeling. Implemented techniques for performing analysis of mechanical systems and parts.

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• Selected material for survivability solutions, including transparent armor, steel, Aluminum, Ti., ceramics, and composites, as well as selections of passive and active protection solutions • Managed the EMA (Electro-Magnetic-Armor) solutions for the armored vehicles. Worked with ARL and other Gov. agencies to develop and test the EMA. • Pioneered and implemented the use of a new manufacturing technique in steel casting known as the Lost Foam Casting Process – for armor solution. Switching to the new manufacturing technique was considered unattainable, since the process had never been used on steel before. I managed an organization of technical personnel that designed and produced a product utilizing this casting method within budget and on schedule. The plan, the execution, and the quality were superior and it became the preferred method of manufacturing. • All the projects I managed have been designed and implemented with Total Quality Management (TQM) in mind from inception through planning and execution. TEACHING EXPERIENCES • At the request of BAE Systems’ training center, I became a part-time instructor for the employees delivering courses on material selection techniques. I prepared the lesson plans as well as taught the classes. The classes were such a great success that the training center requested that I deliver the class several more times. • Taught advanced mathematics for MBA program at The National University in San Jose, CA. This was a successful teaching assignment and I received positive evaluation feedback from both the students and the administration. EXPERIENCE Business Consulting and Printing/Graphics Manger 2015-Present Program Manager 2010 - 2015 Deputy Director Bradley Derivative (AMPV) 2007 - 2010 BAE Systems Manager of Strategic Business Development 2005 - 2007 BAE Systems Program Manager 2003 - 2005 UAV Program United Defense L.P. Senior Engineering Manager 1992 - 2003 United Defense L.P. Business Lecturer 1992 - 1992 The National University, San Jose, CA (while working at UDLP/BAE Systems) Technical Trainer (BAE Systems) 1987 - 1989 Engineering and Engineering Supervisor 1984 - 1992 United Defense L.P. Project Manager 1983 - 1984 Applied Material Inc. Mechanical Design Engineer 1981 - 1983 United Pump Company Marketing Manager & Market Development 1973 - 1977

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Technohac Ltd. Engineering & Sales Support 1970 - 1973 Technohac Ltd. EDUCATION Doctor of Business Administration Golden Gate University Concentration – Management Masters of Business Administration Golden Gate University Concentration – Marketing B.S. Mechanical Engineering California State University, Sacramento PATENTS Holds 3 US Patents LANGUEGES - English (read, write, speak) - Hebrew (read, write, speak) MEMBERSHIP IN PROFESSIONAL ORGANIZATIONS American Society of Mechanical Engineers (ASME) National Defense Industry Association (NDIA – Life Member) HONORS Dean’s List 1978 Warrel Engineering Award 1978 Graduated With Honors – Doctor of Business Administration 2001 INSTRUCTOR CREDENTIAL Board of Governors of The California Community Colleges Instructor Credential No. 360813 Issued by The Board of Governors of The California Community Colleges Subjects Authorized to Teach: Business, Management, and Engineering Issued date: October 24, 1989 Validation: Valid For Life

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Estimate
Date
2/6/2024
Estimate #
61766E
Name / Address
City of San Carlos
Brian Cary
600 Elm Street
San Carlos, CA 94070-1309
AMS Systems, Inc
PO BOX 4190
Foster City, CA 94404
Phone: 1-800-427-5585
email: [email protected]
Project
Customer Signature
Total
Description Qty Cost Total
Stock Type: 80 # gloss paper (text Stock)
Custom Printing: Brochures/Newsletters
6 pager (page Size: 8.5" x 11")
Bindery: Trifold
Ink: 4cp + aq. varnish
* I quoted this on 80 # gloss paper (TEXT) since Req for quote did not specify if it was (Text) or (Cover) Stock.
500 1.398 699.00T
Create initial concepts for client to approve. AMS Printing will send client a few design ideas and client can choose template design they like as the concept design template to use. Price includes edits to refine template to clients approval. AMS Printing will study the City's design guidelines to make sure all rules and design guidelines are followed.
1 1,200.00 1,200.00
Layout and Design production of subsequent newsletters 1 1,200.00 1,200.00 Sales Tax San Carlos 9.375% 65.53
_____________________________________
$3,164.53

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Estimate
Date
2/6/2024
Estimate #
61767E
Name / Address
City of San Carlos
Brian Cary
600 Elm Street
San Carlos, CA 94070-1309
AMS Systems, Inc
PO BOX 4190
Foster City, CA 94404
Phone: 1-800-427-5585
email: [email protected]
Project
Customer Signature
Total
Description Qty Cost Total
Stock Type: 80 # gloss cover (cover stock)
Custom Printing: Brochures/Newsletters
6 pager (page Size: 8.5" x 11")
Bindery: Trifold
Ink: 4cp + aq. varnish
* I quoted this on 80 # gloss paper (COVER) since Req for quote did not specify if it was (Text) or (Cover) Stock.
500 1.71 855.00T
Create initial concepts for client to approve. AMS Printing will send client a few design ideas and client can choose template design they like as the concept design template to use. Price includes edits to refine template to clients approval. AMS Printing will study the City's design guidelines to make sure all rules and design guidelines are followed.
1 1,200.00 1,200.00
Layout and Design production of subsequent newsletters 1 1,200.00 1,200.00 Sales Tax San Carlos 9.375% 80.16
_____________________________________
$3,335.16

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 8, 2024
ITEM TITLE: Adopt a Resolution Authorizing an Amendment to the Professional Services Agreement with CSG Consultants, Inc. for Building Permit Plan Review Consultant Services in an Amount Not-to-Exceed $140,000 for the Fiscal Year 2023-24.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution authorizing an amendment to the Professional Services Agreement with CSG Consultants, Inc. to increase the services to be provided for building permit plan review consultant services in an amount not to exceed $140,000 for Fiscal Year (FY) 2023-24.

FISCAL IMPLICATIONS:

There is no fiscal impact associated with this recommendation and no additional appropriation is required. There is sufficient funding in the Building Division Professional Services budget to cover this request.

The current Professional Services Agreement with CSG Consultants, Inc. (CSG) has a not-to- exceed amount of $261,600 for FY 2023-24, and a not-to-exceed amount of $269,000 for FY25.

A $140,000 contract increase is proposed for the remainder of FY 2023-24 due to the increase in the number of projects that have been routed to CSG for plan review services.

BACKGROUND:

At its June 26, 2023 City Council Meeting, the City Council adopted a Resolution authorizing the City Manager to execute a two-year extension for on-call plan review services with CSG in the not-to-exceed amount of $530,600 ($261,600 for FY 2023-24 and $269,000 for FY 2024-25). At that time, it was estimated that $261,600 would be sufficient for FY 2023-24, given the anticipated amount of residential plan review activity.

During this timeframe, an effort was undertaken to facilitate in-house plan check training of new employees, which increased the need for applications to be sent for outside plan review to CSG and contributed to the need to exceed the original projection of $261,600 for FY 2023-24. As a result, staff anticipates more in-house review for interior remodels, decks, and simple residential projects in FY 2024-25. Therefore, the previously estimated $269,000 for plan review services in FY 2024-25 should align with permit application projections in FY 2024-25.

The proposed $140,000 increase for FY 2023-24 should be sufficient to cover expected need through June 30, 2024.

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ANALYSIS:

Use of outside plan review services is critical for efficient and timely processing of permit applications. Plan review turn-around time has improved, and complaints have reduced significantly with the use of outside plan review services. Larger projects continue to be processed with outside plan review consultants, while less complex projects are typically reviewed in-house.

The balance of in-house and outside plan review has proven to be a good model for developers and homeowners in San Carlos.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution authorizing an amendment to the Professional Services Agreement with CSG Consultants, Inc. for Building Permit Plan Review Consultant Services in an amount not to exceed $140,000 for the FY 2023-24; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Christopher Valley, Building Official
Al Savay, Community Development Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Resolution

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RESOLUTION NO. 2024 – ____

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

AUTHORIZING AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH CSG CONSULTANTS, INC. FOR BUILDING PERMIT PLAN REVIEW CONSULTANT SERVICES IN AN AMOUNT NOT-TO-EXCEED $140,000 FOR FISCAL YEAR 2023-24.

WHEREAS, the Building Division relies on contract as-needed plan review services to help maintain exceptional customer service and plan review turn-around time; and WHEREAS, the current Professional Services Agreement with CSG Consultants, Inc (CSG) has a not-to-exceed amount of $261,600 for Fiscal Year (FY) 2023-24; and WHEREAS, during the FY 2023-24 timeframe, an effort was undertaken to facilitate in-house plan review and training of new employees, which increased the need to send additional projects to CSG and contributed to the need to exceed the original budget projection of $261,600 for FY 2023-24; and
WHEREAS, the proposed increase of $140,000 for FY 2023-24 should be sufficient for the remainder of the fiscal year through June 30, 2024; and WHEREAS, there is sufficient funding available in the Building Division Professional Services budget to cover this request.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby approves an amendment to the Professional Services Agreement with CSG Consultants, Inc. (CSG).
* * * * *
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 8th day of April 2024, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 8, 2024
ITEM TITLE: Adopt a Resolution Awarding the 2023 Pavement Rehabilitation Project C9416, Authorizing the City Manager to Execute an Agreement with G. Bortolotto & Company, Inc. in the Amount of $4,847,767.85, and Authorizing the Expenditure of $969,600 for a 20% Project Contingency Budget.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution awarding the 2023 Pavement Rehabilitation Project C9416 (“Project”), authorizing the City Manager to execute an agreement with G. Bortolotto & Company, Inc. in the amount of $4,847,767.85, and authorizing the expenditure of $969,600 for a 20% project contingency budget.

FISCAL IMPLICATIONS:

There are no fiscal impacts associated with this recommendation and no additional funding is needed at this time.

The Project is funded out of C9416, which has an available Project budget of approximately $7,067,890 for Fiscal Year (“FY”) 2023-24. There is sufficient budget to award and complete the Project with contingency.

As the lowest responsible bid was under the respective Project budget, any budgeted funds not spent will be used to perform additional pavement rehabilitation work beyond the original scope of work via change order.

BACKGROUND:

The purpose of this Project is to proactively identify and repair locations of poor asphalt pavement on City streets as part of the Pavement Management Program (“PMP”). In addition, the Project furthers the City’s goal of increasing the average pavement condition index (“PCI”) to 65, which aligns with the San Francisco Bay Area average.

The Project includes rehabilitating the existing pavement to a new or like-new condition, repairing failures within the pavement, reconstructing existing or constructing new curb ramps, removing and replacing existing traffic striping and pavement markings with high-visibility thermoplastic striping, installing green infrastructure, and improving the existing storm drain utility.

The scope of work was developed based upon the PMP, staff observations, and resident concerns. The Project will rehabilitate streets in the final year of the PMP and will encompass all

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remaining streets that were not addressed in previous years.

The PMP primarily targets streets with PCI scores that are 70 and below, which are at-risk/fair or poor. However, streets that meet other factors such as traffic volume and utility project coordination are also considered for the rehabilitation.

Streets described as at-risk/fair, with a PCI from 50 to 70, will receive slurry sealing. Slurry seal is a thin asphalt overlay intended to repair surface imperfections and seal cracks, which can preserve the existing pavement and prevent infiltration of water leading to further failure. A digout includes digging out pavement sections where a spot failure has occurred and then repaving the section.

Streets described as poor, with a PCI between zero to 50, will receive an overlay. Overlay is a treatment which consists of removing the top layer of the existing pavement and replacing it with a new layer of asphalt concrete. Streets requiring an overlay are typically deteriorating with significant cracking and failing that cannot be repaired with surface treatment.

Staff retained Bellecci & Associates, Inc. (“Consultant”) to provide engineering services and prepare the construction documents. Staff and the Consultant worked with site-adjacent residents and businesses during the preparation of construction documents to ensure the improvements would not result in any negative impacts.

ANALYSIS:

On February 13, 2024, the City advertised for bids for construction and bids were opened on March 18, 2024. Bids for the Project were received with the following results:

Contractor Bid Amount
Engineer’s Estimate $6,368,700
G. Bortolotto & Company $4,847,767.85
Interstate Grading & Paving $4,864,908.44
Teichert Construction $4,884,036.00
O'Grady Paving $5,239,278.45
DeSilva Gates Construction $5,850,850.00
Granite Construction $6,392,957.14
The lowest responsible and responsive bid for the Project was submitted by G. Bortolotto & Company, Inc. in the amount of $4,847,767.85.

After bid evaluations, staff recommends awarding the contract to the lowest responsible and responsive bidder identified above and authorizing the expenditure of contingency up to the Project budget.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution awarding the 2023 Pavement Rehabilitation Project C9416, authorizing the City Manager to execute an agreement with G. Bortolotto & Company, Inc. in the amount of $4,847,767.85, and authorizing the expenditure of $969,600 for a 20% project contingency budget; or

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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

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS AWARDING THE 2023 PAVEMENT REHABILITATION PROJECT C9416, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH G. BORTOLOTTO & COMPANY, INC. IN THE AMOUNT OF $4,847,767.85, AND AUTHORIZING THE EXPENDITURE OF $969,600 FOR A 20% PROJECT CONTINGENCY BUDGET.

WHEREAS, the purpose of the 2023 Pavement Rehabilitation Project (“Project”) is to proactively identify and repair locations of poor asphalt pavement on City streets as part of the Pavement Management Program (“PMP”); and
WHEREAS, the Project furthers the City’s goal of increasing the average pavement condition index (“PCI”) to 65, bringing it into alignment with the San Francisco Bay Area average; and
WHEREAS, the Project includes rehabilitating the existing pavement to a new or like-new condition, repairing failures within the pavement, reconstructing existing or constructing new curb ramps, removing and replacing existing traffic striping and pavement markings with high-visibility thermoplastic striping, installing green infrastructure, and improving the existing storm drain utility; and WHEREAS, the scope of work was developed based upon the PMP, staff observations, and resident concerns; and
WHEREAS, the 2023 Project will rehabilitate streets on the final year of the PMP and will encompass all remaining streets that were not addressed in previous years; and WHEREAS, the PMP primarily targets streets with PCI scores that are 70 and below, which are at-risk/fair or poor; and
WHEREAS, streets described as at-risk/fair, with a PCI from 50 to 70, will receive slurry sealing; and
WHEREAS, streets described as poor, with a PCI between zero to 50, will receive an overlay; and
WHEREAS, staff retained Bellecci & Associates, Inc. to provide engineering services and prepare the construction documents; and
WHEREAS, on February 13, 2024, the City advertised for bids for construction of the Project and bids were opened on March 18, 2024; and
WHEREAS, the lowest responsible and responsive bid was submitted by G. Bortolotto & Company, Inc. in the amount of $4,847,767.85.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby awards the 2023 Pavement Rehabilitation Project C9416, authorizes the City Manager to execute an agreement with G. Bortolotto & Company, Inc. in the amount of $4,847,767.85, and authorizes the expenditure of $969,600 in project contingency.

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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 8th day of April 2024, by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
___________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 8, 2024
ITEM TITLE: Consideration of Adopting a Resolution Setting a Public Hearing on June 10, 2024, Pursuant to Proposition 218, to Consider Three Years of Annual Increases in Wastewater Rates and Introduction of an Ordinance Amending Section 13.08.160 of the Municipal Code – Sewer Service Charges and Fees.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution setting a Public Hearing to be held on June 10, 2024, pursuant to Proposition 218, to consider three annual rate increases (effective July 1, 2024, July 1, 2025, and July 1, 2026) to the residential and commercial wastewater rates and introduction of an Ordinance amending Section 13.08.160 of the Municipal Code – Sewer Service Charges and Fees.

FISCAL IMPLICATIONS:

Staff recommends that the City implement annual 3.0% sewer rate increases in each of the next three years. The rate increases are needed to ensure adequate funding for operating and maintenance expenses for the City and Silicon Valley Clean Water (SVCW), a prudent level of pay‐as‐you‐go funding for capital improvements to the City’s aging collection system, and the City’s share of costs for a major rehabilitation and reconstruction of SVCW’s regional wastewater transmission and treatment facilities.

Including the three 3.0% annual rate increases in the Proposition 218 notification letter allows the Council discretion to consider a lower rate change or shorter term at the public hearing; however, the Council will not be able to set rates higher than shown in the Proposition 218 notice.

The figure below shows a five‐year projection of revenues verus the revenue requirement, which is broken out into five key functional categories. Revenues at current rates are insufficient to fund the growing revenue requirement, as demonstrated by the figure. The proposed rate increases are balanced with the use of reserves. Reserves help offset the increased costs projected, reducing the rate increases borne by ratepayers. The increases recommended ensure the Wastewater Enterprise has sufficient reserves to meet its operating cash flow and capital funding needs. Further, with recommended increases, the reserves maintained continue to meet the days of operating cash on hand to continue satisfying credit rating requirements.

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The proposed sewer rates for the next three fiscal years are shown on the following table:

BACKGROUND:

The City owns and operates a wastewater collection system consisting of approximately 104 miles of sanitary sewer pipelines and four pump stations. The City’s sewer utility system is paid for by a self‐supporting enterprise fund, with sewer service charges providing roughly 81% of total revenues as of FY 2023-24. As such, the City’s sewer rates need to be set at levels adequate to fund the cost of providing wastewater service. These costs include both the City’s sewer collection system operating and capital improvement funding needs, and the City’s share of the cost for treatment plant operations and debt service. Therefore, the City must evaluate and adjust City sewer rates to maintain a self-sustaining budgetary status.

The City also requires sewer connection fees on new or expanded connections to the sewer system. Connection fees are levied as a condition of development or change in use, and are designed to recover the cost of capacity in infrastructure and assets benefitting new development.

These capacity charges are one‐time fees, paid upfront as a condition of new development or expansion. Capacity charges are separate from the City’s rates for sewer service and are not being adjusted at this time. The City updated its Sewer Capacity Charges in 2016 and is adjusted Current Proposed Rates Effective on or After
Units Sewer Rates 7/1/2024 7/1/2025 7/1/2026
Annual Rate Increase 3.0% 3.0% 3.0%
Residential Fixed Service Charges
Single-Family dwelling unit $1,401.27 $1,443.31 $1,486.61 $1,531.21 Multi-Family dwelling unit $1,203.44 $1,239.54 $1,276.73 $1,315.03 Nonresidential Sewer Rates
Commercial High Strength¹ hcf $22.30 $22.97 $23.66 $24.37 Commercial Mod Strength² hcf $19.13 $19.70 $20.29 $20.90 Commercial Std Strength hcf $14.36 $14.79 $15.23 $15.69 Institutional - Hospitals hcf $16.54 $17.04 $17.55 $18.08 Institutional - Public/Other hcf $13.90 $14.32 $14.75 $15.19 Industrial Flow hcf $11.89 $12.25 $12.62 $13.00
Industrial BOD lb $1.48 $1.52 $1.57 $1.62
Industrial TSS lb $1.66 $1.71 $1.76 $1.81
Minimum annual charge³ parcel/account $1,050.95 $1,082.48 $1,114.95 $1,148.40 ¹Includes restaurants, bakeries, mortuaries, markets with garbage disposals, and mixed use accounts whose wastewater is comprised of 75% or higher flow from high strength users. ²Includes hotels with food service and/or laundry facilities, and mixed use accounts whose wastewater is comprised of greater than 25% but less than 75% of flow from high strength users. ³All Commercial, Institutional, and Industrial accounts are subject to the minimum annual charge per parcel or account.

The City shall determine which customers class best reflects the wastewater characteristics of each account.

Note: 1 hcf = One hundred cubic feet, or approximately 748 gallons.

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annual based on the change in the Engineering News-Record Construction Cost Index (20-Cities Average) from the March 2016 Index.

The City provides sewer service to approximately 11,000 sewer connections within the city.

Roughly 92% of total sewer connections are residential customers, 4% are commercial, 3% are industrial, and the remaining customers are institutional accounts. Wastewater is conveyed by the City from four San Mateo County sewer maintenance districts to the Silicon Valley Clean Water (“SVCW”) treatment plant pursuant to agreements with each agency. SVCW is a joint powers authority whose members include San Carlos, Belmont, Redwood City, and the West Bay Sanitary District. Since 2008, SVCW has been rebuilding, rehabilitating, and upgrading its wastewater transmission and treatment facilities, and the associated costs are allocated to each agency according to the structure of the original Joint Powers Agreement.

ANALYSIS:

Based on financial projections and recommendations, the City’s sewer enterprise fund is facing a number of financial challenges that will require modest sewer rate increases in upcoming years:
•San Carlos is responsible for funding 15.14% of SVCW capital costs. Over the next ten years, SVCW anticipates spending $438 million in capital expenditures. SVCW’s spending plan continues to address the Regional Environmental Sewer Conveyance Upgrade (RESCU) program, a long-range capital infrastructure rehabilitation and replacement program to update wastewater conveyance and treatment facilities, initiated in 2008, which will total more than $1 billion over a four-decade period. As of the 2024 Long Range Financial Plan (LRFP) prepared by SVCW, SVCW estimated reserves and proceeds from previously issued bonds and loans have funded $959 million in CIP expenditures toward the program.
•This year SVCW identified $221 million in additional capital projects over the next decade.

The additional projects address treatment infrastructure, nutrient removal in anticipation of growing regulatory requirements, and pipe rehabilitation needs. SVCW projects obtaining long-term, debt service funding through three sources in the next two years including California’s Clean Water State Revolving Fund (“SRF”) Financing Program, the United States Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act (“WIFIA”) funding program, and revenue bonds, where necessary. SVCW’s projected debt service payments for new financing have been accounted for in this sewer rate study.
•Many of the City’s sewer pipelines are 50 to 100 years old, made of vitrified clay, and will need to be replaced in upcoming years. The City has completed a number of pipeline replacements and upgrades in recent years to address critical deficiencies and comply with a consent decree to minimize potential for sanitary sewer overflows. However, there are substantial additional funding needs to address known deficiencies and replace aging infrastructure. Among other capital projects, the City plans to spend $7 million per year on its Annual Sewer System Rehabilitation Program. The program funds will be used to repair, rehabilitate, and replace significant structural deficiencies. The annual rehabilitation project has steadily addressed grade 4 and 5 defects, as well as replaced additional lower laterals. Rate increases in recent years have enabled the City to increase funding for these pipeline replacements. However, additional funding is needed due to the age and condition of the City’s sewer collection system.

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•In general, the sewer enterprise needs small annual rate adjustments to keep revenues in line with utility cost inflation. The updated financial projections assume that City sewer operating costs escalate at an annual rate of approximately 3.6%, and SVCW wastewater treatment costs escalate at an annual rate of 4.0% based on SVCW’s latest projections.

HF&H Consultants developed a 10-year financial planning model to evaluate sewer enterprise revenue requirements and rate increases. The projections incorporate the latest information available and a number of key assumptions detailed below. Sewer service charge revenues are projected based on current year billings and increase due to projected rate adjustments:
oCity operating and maintenance costs are based on the City’s cash flow forecasts through FY 2032-33.
oRate revenues assume account growth based on the City’s 2030 General Plan, with growth in residential accounts assumed at a ratio of 3:1 multi-family dwelling units compared to newly added single-family residential accounts. oSan Carlos’ share of SVCW operating, capital, and future debt service expenses are based on SVCW’s recently updated 2024 Long Range Financial Plan and the City’s cash flow forecasts through FY 2030-31.
oCity sewer collection system improvements are projected at an average of $10.4 million per year. Annual collection system improvements range from $8.3 to $11.8 million prior connection fee revenues which help offset the cost of improvements to be borne by rate payers. The City estimates receiving $13.9 million in connection fee revenues over the next five years. All City capital improvement figures provided accounted for construction cost inflation.
•The projections indicate the need for steady annual 3.0% sewer rate increases to meet near-term and long-term financial needs while maintaining financial health. In future years, the City can update its financial projections and make adjustments as needed.

Draft Recommendation for Overall Sewer Rate Increases
FISCAL YEAR 2024-2025 2025-2026 2026-2027
Annual Rate Increase 3.0% 3.0% 3.0%
SVCW member agencies’ sewer rates are the underlying repayment security for SVCW debt. As such, San Carlos and the other member agencies need to adopt rates that provide adequate repayment security in advance to facilitate SVCW’s ability to issue future debt even if the debt service payments are deferred until future years.

The City currently maintains a healthy level of sewer fund reserves (in line with other agencies in the AA rating category). The City needs to maintain an adequate level of fund reserves in order to provide adequate funding for roughly six months of operations as most service charges are billed on the property tax rolls and are received twice per year, maintain additional fund reserves for emergency capital needs, and provide fund reserves, which are an important factor for bond ratings as SVCW is anticipating additional bond issues.

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The City’s current sewer service charge for a single-family home of $1,401.27 per year (equivalent to $116.77 per month) is greater than the majority of 15 neighboring agencies. The City’s sewer rates are currently a little higher than other SVCW member agencies. This may largely be due to the City’s level of funding for sewer collection system capital improvements. San Carlos is the only SVCW member agency that had to comply with a consent decree and has begun a multi- year program to address critical Grade 5 deficiencies and replace aging and deficient pipelines.

The City has a sewer rate reduction program for low-income single-family residential households that provides a 10% discount to customers that are on PG&E’s CARE Program or meet similar income limitations. Customers who may qualify may contact PG&E to sign up for the CARE Program via email at [email protected], or by phone at (866) 743-2273.

Next Steps
Pursuant to the California Constitution Article XIIID (also known as “Proposition 218”), the City is required to mail notices of proposed sewer rate increases to affected property owners at least 45 days in advance of the date of a public hearing. The notification letter has information on when the public hearing takes place, the reasons for the hearing, and how residents can provide written protests or other input on the proposed sewer service charges.

On June 10, 2024, the City Council will hold a public hearing and subsequently consider adoption of proposed sewer rate increases. At the public hearing, the City Council may receive public comments and written protests submitted by ratepayers/property owners opposing the proposed rate increases. If written protests are submitted by more than 50% of the affected parcels prior to close of the public hearing, the City Council may not increase rates as a matter of law. Only one protest will be counted for each parcel. Otherwise, the City Council may consider adoption of sewer rates that cannot exceed the levels proposed. If adopted, the rate increases will take effect at the beginning of each of the next three fiscal years, starting July 1, 2024.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Adopt a Resolution setting a Public Hearing to be held on June 10, 2024, pursuant to Proposition 218, to consider a three-year increase to wastewater rates and introduction of an Ordinance amending Section 13.08.160 of the Municipal Code – Sewer Service Charges and Fees; or

2. Do not adopt the Resolution; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Steven Machida, Public Works Director

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

1. Resolution

2. Proposed Sewer Rate Increase Ordinance for consideration at the 6.10.24 Public Hearing

3. Notice of Intent to Increase Sewer Rates in the City of San Carlos

4. HF&H Consultants Draft Sewer Rate Study

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RESOLUTION NO. 2024 – ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS SETTING A PUBLIC HEARING ON JUNE 10, 2024, PURSUANT TO PROPOSITION 218,

TO CONSIDER THREE YEARS OF ANNUAL INCREASES IN WASTEWATER RATES AND INTRODUCTION OF AN ORDINANCE AMENDING SECTION 13.08.160 OF THE MUNICIPAL CODE - SEWER SERVICE CHARGES AND FEES.

WHEREAS, the subject of wastewater rates was comprehensively discussed by the City Council at its meeting on April 8, 2024; and
WHEREAS, the issuance of a Notice of Public Hearing for increased rates for wastewater rates is required pursuant to Proposition 218; and
WHEREAS, the proposed new wastewater rates would be a steady annual 3.0% sewer rate increase in Fiscal Year (FY) 2024-25, FY 2025-26 and FY 2026-27, to meet near-term and long-term financial needs while maintaining financial health; and WHEREAS, the City Council plans to hold a public hearing at its June 10, 2024 regular meeting to consider the wastewater rate increases and to consider all comments of all persons interested in or concerned.

NOW, THEREFORE BE IT RESOLVED, that the San Carlos City Council hereby authorizes the City Clerk to issue a Notice of Public Hearing for June 10, 2024 for an increase in wastewater rates pursuant to Proposition 218 and introduction of an Ordinance amending Section

13.08.160 of the Municipal Code – Sewer Service Charges and Fees.

*****

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 8th day of April, 2024, 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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ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN CARLOS AMENDING SECTION 13.08.160 OF THE SAN CARLOS MUNICIPAL CODE – SEWER SERVICE CHARGES AND FEES.

IT IS HEREBY ORDAINED by the City Council of the City of San Carlos as follows:

SECTION 1: Present Section 13.08.160 of the San Carlos Municipal Code entitled “Sewer Service Charges and Fees Established” is deleted.

SECTION 2: New Section 13.08.160, entitled “Sewer Service Charges and Fees Established,” is added to the San Carlos Municipal Code as follows:

Section 13.08.160 Sewer Service Charges and Fees Established The City Council hereby establishes the following schedule of user charges and fees by the classifications set forth. The fees and charges are for the use and maintenance of the sewage facilities and services furnished to and for the user premises.

The City Council finds that the fees and charges herein provide a fair and equitable allocation of the cost to provide sewage facilities and services for the users and are commensurate with the reasonable cost of providing facilities and services. After review and study of the administration, maintenance costs and capital needs of the City Sanitary Sewer facilities, the schedule of users, fees and charges is as follows:

SECTION 3: CEQA. This Ordinance is exempt from additional environmental review pursuant to California Environmental Quality Act (“CEQA”) Guidelines Section 15061(b)(3); Current Rates Effective on or After
Units Sewer Rates 7/1/2024 7/1/2025 7/1/2026Annual Rate Increase 3.0% 3.0% 3.0%Residential Fixed Service ChargesSingle-Family dwelling unit $1,401.27 $1,443.31 $1,486.61 $1,531.21Multi-Family dwelling unit $1,203.44 $1,239.54 $1,276.73 $1,315.03Nonresidential Sewer RatesCommercial High Strength¹ hcf $22.30 $22.97 $23.66 $24.37Commercial Mod Strength² hcf $19.13 $19.70 $20.29 $20.90Commercial Std Strength hcf $14.36 $14.79 $15.23 $15.69Institutional - Hospitals hcf $16.54 $17.04 $17.55 $18.08Institutional - Public/Other hcf $13.90 $14.32 $14.75 $15.19Industrial Flow hcf $11.89 $12.25 $12.62 $13.00Industrial BOD lb $1.48 $1.52 $1.57 $1.62Industrial TSS lb $1.66 $1.71 $1.76 $1.81Minimum annual charge³ parcel/account $1,050.95 $1,082.48 $1,114.95 $1,148.40¹Includes restaurants, bakeries, mortuaries, markets with garbage disposals, and mixed use accounts whose wastewater is comprised of 75% or higher flow from high strength users.²Includes hotels with food service and/or laundry facilities, and mixed use accounts whose wastewater is comprised of greater than 25% but less than 75% of flow from high strength users. ³All Commercial, Institutional, and Industrial accounts are subject to the minimum annual charge per parcel or account.The City shall determine which customers class best reflects the wastewater characteristics of each account.Note: 1 hcf = One hundred cubic feet, or approximately 748 gallons.

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under the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 4: Severability. The City Council hereby declares that it would have passed this Ordinance sentence by sentence, paragraph by paragraph, and section by section, and does hereby declare that any provisions of this Ordinance are severable and if for any reason any sentence, paragraph or section of this Ordinance shall be held invalid, such decision shall not affect the validity of the remaining parts of this Ordinance.

SECTION 5: Publication and Effective Date. This Ordinance shall be published and posted according to law and shall take effect and be in force from and after 30 days after its passage and adoption.
* * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Ordinance was introduced on the 10th day of June, 2024 and passed and adopted as an Ordinance of the City Council of the City of San Carlos at a regular meeting thereof held on the 24th day of June, 2024 by the following vote:
________________________________
CITY CLERK of the City of San Carlos
APPROVED:
____________________________
MAYOR of the City of San Carlos
AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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1 NOTICE OF PUBLIC HEARING FOR INCREASES IN SEWER SERVICE CHARGES Background
The City of San Carlos provides sewer service to over 11,000 residential and commercial sewer connections within the city. The City owns and operates a wastewater collection system consisting of almost 105 miles of sewer pipelines and six sewer pump stations. Wastewater is conveyed from the City to a regional wastewater treatment plant operated by Silicon Valley Clean Water (SVCW). The City’s sewer utility is a self-supporting enterprise, funded predominantly by sewer service charges.

Why are you getting this notice?
This notice is being furnished to you by the City of San Carlos pursuant to the California Constitution Article XIIID (also known as “Proposition 218”). Under terms of Proposition 218, the City is required to notify property owners of proposed changes to property-related fees, such as sewer service charges.

This letter serves as notice that the City will hold a public hearing on June 10, 2024 at 7:00 p.m. to consider increases to its sewer service charges. The proposed rate increases result in 3.0% annual rate increases (effective July 1, 2024, July 1, 2025, and July 1, 2026) for the City’s sewer customers.

Why Are Sewer Rate Increases Needed?
Rate increases are needed to: a) fund the costs of operating and maintaining the City’s sewer collection system and regional wastewater treatment plant; b) fund high‐priority pipeline repairs and replacements in the City’s aging sewer collection system; and c) fund the City’s share of costs for a major rehabilitation and reconstruction of the regional treatment plant and influent force main.

Additional information is available in the staff report provided for the April 8, 2024 City Council meeting, which is posted on the City’s website at https://www.cityofsancarlos.org/city_hall/public_meetings.php Costs to be funded through this rate increase include:
•Rehabilitation of Regional Wastewater Treatment Plant & Conveyance System – SVCW continues to rebuild and rehabilitate the regional wastewater treatment plant and wastewater conveyance system it operates. In the next ten years SVCW estimates spending $438 million toward capital infrastructure. The City of San Carlos is contractually responsible for funding approximately $66 million of these capital costs. SVCW has utilized a combination of low‐rate state and federal loans supplemented by bond financing. San Carlos’ share of debt service for the SVCW improvements is projected to ramp up from the current level of $3.3 million to approximately $6.6 million per year over the next five years. For more information visit SVCW’s web site at www.svcw.org.
•High-Priority Repairs & Replacements to the City’s Sewer Collection System - Many of the City’s sewer pipelines are 50 to 100 years old, constructed of vitrified clay and will need to be replaced in upcoming years. The City plans to fund approximately $7 million per year in sewer pipeline repairs and replacements to address existing system deficiencies, support long-term reliability of service and to reduce spills and damage to property.

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2 •Ongoing Operating Cost Inflation - In addition to other financial needs, annual rate adjustments are needed due to operating cost inflation and the funding needs for meeting increasingly strict regulatory requirements for the City’s sewer collection system and the regional wastewater treatment plant.

Notice of Public Hearing to Increase Sewer Service Charges The City of San Carlos hereby gives public notice of its intent to increase sewer service charges for all users for fiscal years 2024-25 through 2026-27. The City Council plans to consider these rate increases at a Public Hearing on June 10th, 2024 at 7:00 p.m. at San Carlos City Hall, 600 Elm Street, San Carlos, CA 94070.

Proposed Sewer Service Charges
The City is proposing to implement sewer service charges at or below the rates shown on the table on the following page. The proposed sewer rates will become effective on July 1 of each of the next three fiscal years starting July 1, 2024. The proposed rates are designed to fairly and equitably recover the costs of providing service to all customers.

How Can I Have Input on the Proposed Sewer Service Charges? At the Public Hearing on June 10th, 2024 referenced above, the City Council will consider adoption of proposed sewer rate increases and will receive public comments and written protests submitted by ratepayers and property owners opposing the proposed rate increases. If, on or before the close of the public hearing, written protests against the proposed rate update are presented by a majority of parcels that receive sewer services, the City Council will not enact the proposed rate plan. If less than a majority of parcels receiving sewer services submit written protests against the proposed changes, the City Council may consider the proposed rate plan. The City will accept protests from both owners and customers of record, but only one protest per parcel will be counted.

If you wish to file a written protest, please send a letter in a sealed envelope addressed to Sewer Rates, City Clerk, City of San Carlos, 600 Elm Street, San Carlos, CA 94070. Pursuant to California Government Code, written protests must identify the property you own by street address or assessor’s parcel number, and be signed by either the property owner or customer of record. To be counted, the City of San Carlos must receive your letter prior to close of the Public Hearing on the matter.

Please note that there is a 120-day statute of limitations for challenging all sewer rates should the proposed adjustments be adopted.

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3 Questions?
Please contact the City’s Public Works Department at 650-802-4200 if you have any questions about the proposed sewer service charges or would like additional information, or visit the City website at www.cityofsancarlos.org.

Proposed Sewer Rates
Current Proposed Rates Effective on or After
Units Sewer Rates 7/1/2024 7/1/2025 7/1/2026
Annual Rate Increase 3.0% 3.0% 3.0%
Residential Fixed Service Charges
Single-Family dwelling unit $1,401.27 $1,443.31 $1,486.61 $1,531.21 Multi-Family dwelling unit $1,203.44 $1,239.54 $1,276.73 $1,315.03 Nonresidential Sewer Rates
Commercial High Strength¹ hcf $22.30 $22.97 $23.66 $24.37 Commercial Mod Strength² hcf $19.13 $19.70 $20.29 $20.90 Commercial Std Strength hcf $14.36 $14.79 $15.23 $15.69 Institutional - Hospitals hcf $16.54 $17.04 $17.55 $18.08 Institutional - Public/Other hcf $13.90 $14.32 $14.75 $15.19 Industrial Flow hcf $11.89 $12.25 $12.62 $13.00
Industrial BOD lb $1.48 $1.52 $1.57 $1.62
Industrial TSS lb $1.66 $1.71 $1.76 $1.81
Minimum annual charge³ parcel/account $1,050.95 $1,082.48 $1,114.95 $1,148.40 ¹Includes restaurants, bakeries, mortuaries, markets with garbage disposals, and mixed use accounts whose wastewater is comprised of 75% or higher flow from high strength users. ²Includes hotels with food service and/or laundry facilities, and mixed use accounts whose wastewater is comprised of greater than 25% but less than 75% of flow from high strength users. ³All Commercial, Institutional, and Industrial accounts are subject to the minimum annual charge per parcel or account.

The City shall determine which customers class best reflects the wastewater characteristics of each account.

Note: 1 hcf = One hundred cubic feet, or approximately 748 gallons.

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March 27, 2024 - Draft Report

CITY OF SAN CARLOS
FY 2024-25 SEWER RATE STUDY
HF&H Consultants, LLC

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City of San Carlos
600 Elm St
San Carlos, CA 94070
FY 2024-25 Sewer Rate Study
March 27, 2024
HF&H Consultants, LLC
590 Ygnacio Valley Rd, Suite 190
Walnut Creek, CA 94596
© HF&H CONSULTANTS, LLC All rights reserved.

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Managing Tomorrow’s Resources Today
590 Ygnacio Valley Road, Suite 105 Northern California
Walnut Creek, California 94596 www.hfh-consultants.com
Telephone: 925/977-6950
March 27, 2024
Grace Le
City Engineer
City of San Carlos
600 Elm Street, 2nd Floor
San Carlos, CA 94070
Subject: FY 2024-25 Sewer Rate Study – Draft Report
Dear Grace Le:

HF&H Consultants (HF&H) is pleased to submit this draft sewer rate study report of the City of San Carlos’s (City’s) Wastewater Enterprise. This report summarizes our methodology and recommendations for annual rate increases over the five-year planning period, beginning FY 2024-25.

The Wastewater Enterprise’s current financial position and our recommended schedule of rate increases will allow the City to:
•Fund inflationary increases in existing staff and sewer collection system operating and maintenance costs.
•Fund an average of $8.8 million annually in City sewer collection system Operations and Maintenance (O&M) costs.
•Fully-fund the City’s share of Silicon Valley Clean Water’s (SVCW’s) projected operating and capital costs to treat the City’s wastewater, which increases from $7.9 million to $12.4 million over the five-year study period.
•Maintain sufficient reserves to fully fund operating and capital reserve targets while minimizing rate increases to customers.
•Adapt to large, expected increases in SVCW debt service in subsequent years beyond FY 2024-25 without requiring sharp increases in rates beyond the five-year planning period. * * * * *
A copy of the financial model is included in the appendix.

We appreciate this opportunity to continue working for the City.

Sincerely,

HF&H CONSULTANTS, LLC
Rick Simonson
Senior Vice President

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City of San Carlos Sewer Rate Study
Draft Report Table of Contents 1. Executive Summary
HF&H Consultants, LLC Page i March 27, 2024

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY.............................................................................................1

1.1. Findings and Recommendations...............................................................1

2. INTRODUCTION .........................................................................................................4

2.1 Study Purpose...........................................................................................4

2.2. Study Objectives .......................................................................................4

2.3 Report Organization ..................................................................................4

3. BACKGROUND ..........................................................................................................5

3.1. Background ...............................................................................................5

3.2. Ten-Year Financial Plan............................................................................5

3.3 Recent Rate Increases..............................................................................5

3.4. Current Sewer Service Charge Rates .......................................................5

4. REVENUE REQUIREMENT PROJECTIONS.............................................................7

4.1. City O&M Expenses ..................................................................................7

4.1.1. City Overhead Allocations....................................................................................7

4.2. City Capital Expenses ...............................................................................8

4.3. SVCW Expenses.......................................................................................8

4.3.1. SVCW O&M Expenses ........................................................................................9

4.3.2. SVCW Capital Contributions................................................................................9

4.3.3. SVCW Debt Service ..............................................................................................10

4.4. Total Revenue Requirements..................................................................11

4.5. City Reserves ..........................................................................................12

4.5.1. Recommended Minimum Balance .....................................................................12

4.5.2. Recommended Target Balance .........................................................................12

4.6. Revenue Increases .................................................................................12

4.7. Fund Balance ..........................................................................................13

4.7.1. Debt Service Coverage .........................................................................................13

4.7.2. Credit Rating Considerations.................................................................................14

5. RECOMMENDATIONS .............................................................................................15

5.1. Summary of Proposed Rates ..................................................................15

5.2. Neighboring Agency Comparison............................................................15

5.3. Future Considerations .............................................................................16 APPENDIX A. SEWER RATES MODEL

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City of San Carlos Sewer Rate Study
Draft Report Table of Contents 1. Executive Summary
HF&H Consultants, LLC Page ii March 27, 2024

TABLE OF FIGURES
Figure 1-1. Projected Revenue Requirements .............................................................................................1 Figure 1-2. Collection System Capital Expenditures ....................................................................................2 Figure 1-3. Fund Balance Projections ..........................................................................................................3 Figure 1-4. Projected Rates (FY 2024-25 through FY 2028-29).....................................................................3 Figure 3-1. Recent Rates and Rate Increases...............................................................................................5 Figure 3-2. Current Sewer Rates..................................................................................................................6 Figure 4-1. Key Modeling Assumptions .......................................................................................................7 Figure 4-2. City O&M Expense Summary.....................................................................................................7 Figure 4-3. Collection System Capital Expenditures ....................................................................................8 Figure 4-4. SVCW O&M, Capital, and Debt Service Revenue Requirement.................................................9 Figure 4-5. Previous SVCW Aggregate Debt Service by Member Agency..................................................10 Figure 4-6. Updated SVCW Aggregate Debt Service by Member Agency..................................................11 Figure 4-7. Projected Revenue Requirements ...........................................................................................11 Figure 4-8. Annual Revenue Increases.......................................................................................................12 Figure 4-9. Fund Balance Projections ........................................................................................................13 Figure 4-10. City Debt Coverage Ratio Calculations ..................................................................................14 Figure 4-11. Days of Operating Cash on Hand Projection..........................................................................14 Figure 5-1. Projected Rates (FY 2024-25 through FY 2026-27)...................................................................15 Figure 5-2. Comparison of Annual Sewer Charges for Single-Family Customers.......................................16

ACRONYMS
FY Fiscal Year
BOD Biological Oxygen Demand
CIP Capital Improvement Program
HCF Hundred cubic feet of metered water sold; 748 gallons; a cube of water 4.6 feet on edge.

O&M Operations and Maintenance
PAYGo Pay-As-You-Go, in reference to funding capital improvements from cash rather than from borrowed sources of revenue.

RESCU Regional Environmental Sewer Conveyance Upgrade, a long-term capital improvement program of Silicon Valley Clean Water.

SRF State Revolving Fund. A loan secured through the State of California.

SVCW Silicon Valley Clean Water, a Joint Powers Authority that is responsible for regional conveyance and wastewater treatment for the cities of San Carlos, Redwood City, and Belmont, and West Bay Sanitary District.

TSS Total Suspended Solids
WIFIA Water Infrastructure Investment Act. A type of loan secured through the federal government.

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City of San Carlos Sewer Rate Study
Draft Report Table of Contents 1. Executive Summary
HF&H Consultants, LLC Page iii March 27, 2024

ACKNOWLEDGEMENTS
City Council
John Dugan, Mayor
Sara McDowell, Vice Mayor
Ron Collins, Council Member
Adam Rak, Council Member
Pranita Venkatesh, Council Member
City Staff
Grace Le, City Engineer
Steven Machida, Public Works Director
Rebecca Mendenhall, Administrative Services Director
Paul Harris, Financial Services Manager
Nidhi Thanki, Civil Engineering Assistant
HF&H Consultants, LLC
Rick Simonson, Senior Vice President
Gabe Sasser, Project Manager
Daniel Derby, Senior Associate
Alex Santos, Senior Associate

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City of San Carlos Sewer Rate Study
Draft Report 1. Executive Summary
HF&H Consultants, LLC Page 1 March 27, 2024

1. EXECUTIVE SUMMARY

1.1. Findings and Recommendations
In preparing this sewer rate study for the City, the following findings were made.

1.Updated revenue requirements. The City’s Wastewater Enterprise will be required to fund a growing revenue requirement over the five-year planning period. The revenue requirement, net of City interfund transfers and connection fee revenues, will grow from $25.1 million to as high as $31.2 million (in FY 2027-28), during the next five years. Figure 1-1 summarizes the projected annual net revenue requirements during the five-year planning period.

Figure 1-1. Projected Revenue Requirements
Increases in program expenses can be attributed to capital infrastructure investment in the City’s collection system and in the wastewater treatment system overseen by Silicon Valley Clean Water (SVCW). During the five-year period, the City plans to spend $7 million each year on its Annual Sewer System Rehabilitation Program to improve its collection system assets. As a member of SVCW, the City shares long-term debt service obligations to fund the authority’s long-term capital infrastructure replacement program. The City’s share of debt service will grow from $3.3 million to $6.6 million during the planning period. Proceeds from the debt service will continue to fund projects that make up the Regional Environmental Sewer Conveyance Upgrade (RESCU) and other capital improvements, including treatment systems to address nutrient removal regulations.

2.Connection Fee revenues. The City anticipates substantial connection fees over the five-year planning period, spurring an increase in their collection system capital improvement program.

Connection fee revenues reduce the required cash-funding required from rate revenues. As a result, net capital expenditures to be funded through rates will average $7.6 million over the five- year period. Figure 1-2 details the planned sewer collection system projects and connection fee revenue, which serves to offset some of the program’s expenses.

Current Year Projected
Net Expenses FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 1 City O&M Expenses $7,822,100 $7,927,300 $8,749,100 $8,662,700 $9,322,200 $9,519,300 2 City Capital Expenses $9,404,560 $3,875,000 $4,275,000 $11,744,000 $10,140,100 $8,236,100 3 SVCW Expenses $7,956,699 $11,144,578 $9,379,022 $10,661,724 $11,823,441 $12,408,356 4 Net Revenue Requirement $25,183,359 $22,946,878 $22,403,122 $31,068,424 $31,285,741 $30,163,756 5 -8.9% -2.4% 38.7% 0.7% -3.6%

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City of San Carlos Sewer Rate Study
Draft Report 1. Executive Summary
HF&H Consultants, LLC Page 2 March 27, 2024
Figure 1-2. Collection System Capital Expenditures

3. Five-year schedule of rate adjustments. While funding needs are increasing, the Wastewater Enterprise’s reserve fund balance allows the City to implement smaller rate increases over the five-year period. The City can utilize reserves in combination with inflationary-type increases to rates to address growing expenses. Figure 1-3 summarizes the financial health of the Wastewater Enterprise. The solid green line depicts the reserve balance with the recommend rate increases.

The City will not only have sufficient reserves to meet minimal operating cash flow needs (red line), but it will have sufficient reserves to meet its capital funding target needs (blue line), as well.

The City tracks its operating cash flow to maintain a strong credit rating. The threshold of 575 days of operating cash flow is shown as the dashed blue line. Projected rate increases over the next five years are projected to provide sufficient reserves to meet this target. The dotted green line depicts how reserves would diminish without any rate increase over the next ten years.

The rates proposed in Figure 1-4 reflect uniform adjustments for all customers. Annual rate increases of 3% are recommended for FY 2024-25 through FY 2026-27, with projected 4% annual increases in FY 2027-28 and FY 2028-29.

Budgeted Projected
Capital Expenditures FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 1 Annual Sewer System Rehabilitation Program$7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000 2 Annual On-Call Sewer Contracts $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 3 Sewer System CCTV Inspection $400,000 $0 $400,000 $0 $400,000 $0 4 Annual Sewer Lateral Replacement $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 5 Annual Sewer System Root Foaming $175,000 $175,000 $175,000 $175,000 $175,000 $175,000 6 Sewer and Storm Pump Station Assessment $150,000 $0 $0 $0 $0 $0 7 Sewer Model Update $374,560 $0 $0 $0 $0 $0
8 Shoreway Road Sewer Main Relocation Project $605,000 $0 $0 $0 $0 $0 9 Tierra Linda Pump Station Improvements $1,000,000 $0 $0 $0 $0 $0 10 Sewer Collection Projects $0 $0 $4,500,000 $3,500,000 $1,500,000 $0 11 Total Capital Expenses $10,904,560 $8,375,000 $13,275,000 $11,875,000 $10,275,000 $8,375,000 12 (Less) Connection Fee Revenue ($1,500,000) ($4,500,000) ($9,000,000) ($131,000) ($134,900) ($138,900) 13 Net Capital Expenditures $9,404,560 $3,875,000 $4,275,000 $11,744,000 $10,140,100 $8,236,100 14 -58.8% 10.3% 174.7% -13.7% -18.8%
15 5-Year Average Annual Capital Expenditures Net of Connection Fees $7,654,040

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City of San Carlos Sewer Rate Study
Draft Report 1. Executive Summary
HF&H Consultants, LLC Page 3 March 27, 2024
Figure 1-3. Fund Balance Projections
Figure 1-4. Projected Rates (FY 2024-25 through FY 2028-29) Adopted Recommended
Units FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Annual Rate Increase 3.0% 3.0% 3.0% 4.0% 4.0%
Residential Fixed Service Charges
Single-Family dwelling unit $1,401.27 $1,443.31 $1,486.61 $1,531.21 $1,592.46 $1,656.16 Multi-Family dwelling unit $1,203.44 $1,239.54 $1,276.73 $1,315.03 $1,367.63 $1,422.34 Nonresidential Sewer Rates
Commercial High Strength hcf $22.30 $22.97 $23.66 $24.37 $25.34 $26.35 Commercial Mod Strength hcf $19.13 $19.70 $20.29 $20.90 $21.74 $22.61 Commercial Std Strength hcf $14.36 $14.79 $15.23 $15.69 $16.32 $16.97 Institutional - Hospitals hcf $16.54 $17.04 $17.55 $18.08 $18.80 $19.55 Institutional - Public/Other hcf $13.90 $14.32 $14.75 $15.19 $15.80 $16.43 Industrial Flow hcf $11.89 $12.25 $12.62 $13.00 $13.52 $14.06 Industrial BOD lb $1.48 $1.52 $1.57 $1.62 $1.68 $1.75
Industrial TSS lb $1.66 $1.71 $1.76 $1.81 $1.88 $1.96
Minimum annual charge parcel/account $1,050.95 $1,082.48 $1,114.95 $1,148.40 $1,194.34 $1,242.11

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City of San Carlos Sewer Rate Study
Draft Report 2. Introduction
HF&H Consultants, LLC Page 4 March 27, 2024

2. INTRODUCTION

2.1 Study Purpose
The purpose of this study is to update the City’s rates to ensure that they generate sufficient revenue and that the rate structure reflects the City’s current rate-making objectives.

2.2. Study Objectives
The City undertook this rate study to meet the following key objectives.

1.Provide revenue sufficiency and fiscal sustainability – Ensure revenue from future sewer rates cover costs without depleting reserves and maintaining necessary debt service coverage requirements.

Revenue requirement projections are increasing with expanded capital program expenses to upgrade infrastructure. The City must continue to generate revenues to satisfy existing debt service covenants and to uphold its strong credit rating.

2.Maintain adequate reserves and fiscal responsibility – Confirm future sewer rates will continue to generate revenues that will keep the City’s Enterprise reserve balance in line with its target threshold to have sufficient reserves on hand for operational cash flow and capital improvement funding.

Balance rate increases with the use of existing reserves to reduce impacts to ratepayers.

2.3 Report Organization
The report contains five sections:

1.Executive Summary – Summarizes our findings and recommendations.

2.Introduction – Provides purpose and objectives of the study.

3.Background – Provides financial context of the City’s Wastewater Enterprise.

4.Revenue Requirement Projections – Documents the annual revenue requirements and increases in rate revenue for the five-year planning period from FY 2024-25 through FY 2028-29.

5.Recommendations – Summarizes the recommended rates for the five-year planning period, as well as future considerations for the Wastewater Enterprise.

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City of San Carlos Sewer Rate Study
Draft Report 3. Background
HF&H Consultants, LLC Page 5 March 27, 2024

3. BACKGROUND

3.1. Background
The City provides wastewater collection and conveyance services to approximately 11,000 accounts, comprised of residential, commercial, and industrial customers. Wastewater is collected and transported through a system of pipelines and pump stations. The City’s sanitary sewer system includes approximately 104 miles of gravity sewer mains, one mile of pressure mains, and four sewage pump stations. All wastewater is conveyed for treatment to the San Carlos Pump Station, which is owned and operated by SVCW. SVCW is a Joint Powers Authority (JPA) that provides wastewater treatment services to the Cities of Belmont and Redwood City, West Bay Sanitary District, as well as the City. Wastewater from each of these member agencies is treated at the SVCW treatment plant. The City is billed for its proportionate share of treatment costs and this expense is included in the City’s sewer service charges.

3.2. Ten-Year Financial Plan
This report presents a financial plan for the City that incorporates the capital improvements identified through the City’s Sewer Master Plan and via discussions with City staff, as well as the latest available projections provided by SVCW in their 2024 Long Range Financial Plan, provided to the City in January 2024. A spreadsheet model was developed to derive revenue requirements for a ten-year planning period, FY 2024-25 through FY 2033-34. The financial plan comprises:
•Projected City operating and capital expenses to maintain the collection system. •Projected SVCW operating and capital expenses to maintain and upgrade the sewer treatment plant.
•Projected reserve balances and targets.
•Projected revenues from the City’s current and proposed sewer service charges; and, •Projected growth within the City.

The results of the financial plan indicate the annual increases in sewer service charges that are projected to fund the City’s expenses and maintain adequate reserves. Detailed spreadsheets comprising the ten- year financial plan are included in Appendix A. For brevity, only the first five years of the financial plan are presented in the body of this report.

3.3 Recent Rate Increases
The City last conducted a rate study in 2019 to set rates from FY 2019-20 to FY 2022-23. Rates were not increased in FY 2023-24, as shown in Figure 3-1.

Figure 3-1. Recent Rates and Rate Increases
FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
1 Residential Sewer Service Charge $1,283.19 $1,340.93 $1,401.27 $1,401.27 2 Percentage Increase 4.5% 4.5% 4.5% 0.0%
3 Annual Increase ($/Year) $55.26 $57.74 $60.34 $0.00

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City of San Carlos Sewer Rate Study
Draft Report 3. Background
HF&H Consultants, LLC Page 6 March 27, 2024

3.4. Current Sewer Service Charge Rates
The City charges sewer customers annually on the tax rolls, which is a common practice for billing for sewer service. Billing on the tax rolls is less expensive than it would be if the City issued its own bills while allowing the County to easily levy liens for nonpayment. Even though the City bills through the tax rolls, its sewer service charges are not a tax or assessment. Unlike taxes or assessments, which are based on land-related characteristics, such as assessed value or parcel size, the City’s sewer charges are a form of service fee or charge that is proportionate to the cost of providing service.

Residential customers are assessed an annual fixed charge per dwelling unit. Commercial customers pay charges based on their metered water use from the prior calendar year (measured in HCF or hundred cubic feet). Each commercial charge is the product of the customer’s actual flow multiplied by the rate corresponding to the customer’s class. Customer classes reflect difference in wastewater effluent strength characteristics. Higher strength wastewater is more costly to treat, which is reflected in the pricing signal provided by current rates. Commercial customer accounts are subject to a minimum annual charge to allow the City to recoup fixed costs that do not fluctuate based on sewage volume discharged. Customers are charged the greater of the calculated charge based on metered water use or the minimum annual charge.

Industrial customers are billed based on each customer’s annual flow and the strength of the customer’s wastewater based on sampling data.

Rates were most recently adopted by the City Council in 2019, following a comprehensive, multi-year rate study and public implementation process. Following an analysis last year, the City elected not to raise rates. Current rates for FY 2023-24 are as follows:

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Figure 3-2. Current Sewer Rates
Note: minimum annual charge applies to each Nonresidential customer. Charge will be assessed on a per parcel basis when multiple connections on the same parcel provide service to one customer. Charge will be assessed per account when multiple connections on the same parcel provide service to more than one account holder.

Adopted
Units FY 2023-24
Annual Rate Increase
Residential Fixed Service Charges
Single-Family dwelling unit $1,401.27
Multi-Family dwelling unit $1,203.44
Nonresidential Sewer Rates
Commercial High Strength hcf $22.30
Commercial Mod Strength hcf $19.13
Commercial Std Strength hcf $14.36
Institutional - Hospitals hcf $16.54
Institutional - Public/Other hcf $13.90
Industrial Flow hcf $11.89
Industrial BOD lb $1.48
Industrial TSS lb $1.66
Minimum annual charge parcel/account $1,050.95

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4. REVENUE REQUIREMENT PROJECTIONS
A spreadsheet model was developed to derive revenue requirements for a ten-year planning period, FY 2024-25 through FY 2033-34. The revenue requirements represent the costs that must be covered by revenue from rates and other sources. The City’s Operations & Maintenance (O&M) budget for FY 2023- 24 served as the starting point for projecting the City’s expenses and revenues. SVCW provided the projections of all future SVCW expenses, including debt service, used in the model. The escalation factors summarized in Figure 4-1 were incorporated in the model for projecting expenses and revenues. For brevity, only the first five years of modeling assumptions are shown. Refer to Appendix A for the full, ten- year period of assumptions assumed in the financial model.

Figure 4-1. Key Modeling Assumptions
The application of these assumptions to the O&M and capital expenses is described below and summarized in Figure 4-2 through Figure 4-4.

4.1. City O&M Expenses
The City’s net O&M expenses (summarized by category in Figure 4-2) are projected to increase from $7.8 million to $9.5 million over the five-year planning period.

Figure 4-2. City O&M Expense Summary
All expenses shown were budgeted values included within the City’s projections. Capital outlay expenses include the replacement of assets, equipment and vehicles which support the Wastewater Enterprise.

Professional services include expenses for contractual agreements with outside agencies, such as consulting services. Other O&M expenses include professional development, uniforms and safety equipment, utilities, and vehicle usage. The Wastewater Enterprise is allocated its proportionate share of overhead costs to reimburse the City’s General Fund. These expenses will increase from $4.5 million to Assumptions FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Notesa General Inflation 3.00% 3.00% 3.00% 3.00% 3.00% HF&H + City estimateb SVCW O&M Expenses Increase % Budget Budget Budget Budget Budgetc Interest on Earnings 2.00% 2.00% 2.00% 2.00% 2.00% HF&H + City estimated Construction Cost Inflation 0.00% 0.00% 0.00% 0.00% 0.00% Per Citye Single-family Residential customer growth 0.13% 0.13% 0.13% 0.13% 0.13% 2030 General Planf Multi-family Residential customer growth 0.39% 0.39% 0.39% 0.39% 0.39% 2030 General Plang Commercial customer growth 1.13% 1.13% 1.13% 1.13% 1.13% 2030 General Planh Industrial customer growth 1.13% 1.13% 1.13% 1.13% 1.13% 2030 General Plani Sewer right of way 4.00% 4.00% 4.00% 4.00% 4.00% City Budget Current Year Projected
Expenses FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 1 Salaries and Benefits $2,538,900 $2,635,600 $2,704,500 $2,794,500 $2,884,300 $2,975,000 2 Capital Outlay $220,000 $78,400 $523,900 $183,400 $571,000 $489,600 3 Equipment Maintenance $79,700 $82,100 $84,700 $87,300 $90,000 $92,700 4 Office Administrative $66,000 $68,000 $70,100 $72,200 $74,400 $76,600 5 Professional Services $636,300 $655,300 $675,000 $684,200 $704,700 $725,800 6 Other O&M $353,100 $354,800 $356,500 $358,200 $359,900 $361,800 7 City Overhead Allocations $4,577,800 $4,722,400 $5,023,800 $5,183,500 $5,348,300 $5,518,300 8 Non-Operating Revenue ($649,700) ($669,300) ($689,400) ($700,600) ($710,400) ($720,500) 9 Net City O&M Expenses $7,822,100 $7,927,300 $8,749,100 $8,662,700 $9,322,200 $9,519,300 10 1.3% 10.4% -1.0% 7.6% 2.1%

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$5.5 million over the next five years. City Overhead Allocations include payments made for Worker’s Compensation, general liability insurance, and reimbursements to the City’s general fund for services provided to the Wastewater Enterprise.

4.2. Sewer Enterprise Capital Expenditures
The City’s capital expenses are summarized by category in Figure 4-3. Annual budgeted capital expenditures range from $8.3 million (in FY 2024-25) to $13.2 million (in FY 2025-26), during the five-year planning period. The City plans to fund these capital improvements from a combination of connection fee revenue and sewer service charge revenue on a pay-as-you-go (PAYGo) basis without issuing debt, which continues the City’s historical practice. The City anticipates substantial connection fees over the five-year planning period, spurring the increase in their capital improvement program. Connection fee revenues reduce the required cash-funding needed from rate revenues. As a result, net capital expenditures to be funded through rates will average $7.6 million over the five-year period.

The annual Sewer System Rehabilitation Program makes up the bulk of the City’s planned improvements as the City continues to address its Sewer Master Plan, based on a prioritization of risk mitigation. The annual rehabilitation project has steadily addressed grade 4 and 5 defects, as well as replaced additional lower laterals. Beginning FY 2025-26 the City plans to build new capacity-related improvements (see row 10) to address increased levels of development.

Figure 4-3. Collection System Capital Expenditures

4.3. SVCW Expenses
In FY 2023-24, SVCW’s treatment costs are projected to be approximately 32% of the City’s total revenue requirement. Over the next ten years, SVCW’s projected treatment costs may increase to as much as 49% of the City’s total revenue requirement. As shown in Figure 4-4, SVCW’s costs are projected to increase significantly to fund new debt service, beginning in FY 2024-25, and cash payments in-lieu of additional debt issuance. The new bonds and loans, obtained from the State Revolving Fund (SRF) and Water Infrastructure Invest Act (WIFIA), will be issued to fund the SVCW’s long-range plan of capital infrastructure replacements. The City’s cumulative treatment charge is allocated in proportion to its share of flow and wastewater effluent concentrations, compared with the other SVCW member agencies. The City’s treatment charge makes up 13.9% of the total expenses allocated by SVCW to the member agencies.

Budgeted Projected
Capital Expenditures FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 1 Annual Sewer System Rehabilitation Program $7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000 $7,000,000 2 Annual On-Call Sewer Contracts $900,000 $900,000 $900,000 $900,000 $900,000 $900,000 3 Sewer System CCTV Inspection $400,000 $0 $400,000 $0 $400,000 $0 4 Annual Sewer Lateral Replacement $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 5 Annual Sewer System Root Foaming $175,000 $175,000 $175,000 $175,000 $175,000 $175,000 6 Sewer and Storm Pump Station Assessment $150,000 $0 $0 $0 $0 $0 7 Sewer Model Update $374,560 $0 $0 $0 $0 $0
8 Shoreway Road Sewer Main Relocation Project $605,000 $0 $0 $0 $0 $0 9 Tierra Linda Pump Station Improvements $1,000,000 $0 $0 $0 $0 $0 10 Sewer Collection Projects $0 $0 $4,500,000 $3,500,000 $1,500,000 $0 11 Total Capital Expenses $10,904,560 $8,375,000 $13,275,000 $11,875,000 $10,275,000 $8,375,000 12 (Less) Connection Fee Revenue ($1,500,000) ($4,500,000) ($9,000,000) ($131,000) ($134,900) ($138,900) 13 Net Capital Expenditures $9,404,560 $3,875,000 $4,275,000 $11,744,000 $10,140,100 $8,236,100 14 -58.8% 10.3% 174.7% -13.7% -18.8%

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Figure 4-4. SVCW O&M, Capital, and Debt Service Revenue Requirement

4.3.1. SVCW O&M Expenses
O&M expenses include costs for personnel, utilities, administrative, equipment, supplies, chemicals, professional services, and training, net of any miscellaneous revenue received. The operating expenses modeled reflect the City’s budgeted forecasts and SVCW’s FY 2023-24 Operating Budget. Personnel costs account for 62% of SVCW’s FY 2023-24 operating budget. Chemical and utility costs increased the most since the previous budgeted fiscal year, but fortunately comprise only 9% of the overall budget.

Miscellaneous revenue is generated from grease and septic receipts, property leases, and the SVCW’s Self-Generation Incentive Program for battery storage. Per the 2024 Long Range Financial Plan (LRFP), operating expenses are expected to increase by approximately 4% annually over the next ten years.

4.3.2. SVCW Capital Contributions
This category of expenses includes cash-funded capital improvements and contributions to the SVCW Operating Reserve and CIP Reserve. The Operating Reserve must maintain a minimum balance of 10% of the approved Operating Budget, plus $1.0 million. In addition, SVCW has a goal to accrue CIP Reserve funds equal to the annual calculated depreciation of SVCW facilities. If funds held in reserve fall below target levels, SVCW budgets a reserve contribution to return to the target level. As a member agency of SVCW, the City’s combined operating and reserve contributions are projected to be $559,939 for FY 2024- 25 (see row 4 of Figure 4-4).

In 2008, SVCW began a long-range capital infrastructure rehabilitation and replacement program, the RESCU program, totaling more than $1 billion over a four-decade period. As of the 2024 LRFP, SVCW estimated reserves and proceeds from previously issued bonds and loans have funded $959 million in CIP expenditures toward the RESCU program. Over the next ten years, SVCW anticipates spending $438 million in capital expenditures, which includes newly identified projects to address more stringent nutrient removal regulatory requirements. The nutrient removal projects will address the risks of ammonia, nitrates and phosphates found in municipal waste, which cause water pollution and can lead to algae blooms. In the 2024 LRFP, SVCW recommends that additional projects be funded through a combination of cash reserves, member agency contributions in lieu of debt issuance, and the issuance of new debt totaling $221 million. Per the Joint Powers Authority Agreement, San Carlos is allocated 15.14% of the capital expenditures.

Budgeted Projected
SVCW Expenses FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 1 Operating Expenses $4,086,539 $3,942,053 $4,094,152 $4,275,202 $4,498,202 $4,631,151 2 Capital Contributions Expenses
3 Capital Improvements - Cash-funded $79,889 $227,100 $227,100 $227,100 $227,100 $227,100 4 Reserve Contributions $468,664 $559,939 $636,840 $713,790 $790,790 $867,841 5 Lines of credit interest $13,908 $13,908 $13,908 $13,908 $13,908 $13,908 6 Cash-in-lieu of debt $0 $2,062,478 $0 $852,741 $0 $0
7 Debt Service
8 SVCW Bond Payments $2,987,700 $2,989,100 $3,061,160 $3,233,121 $3,251,909 $3,626,824 9 SRF Loans and Reserve Requirements $320,000 $1,350,000 $1,345,862 $1,345,862 $3,041,532 $3,041,532 10 Total SVCW Expenses $7,956,699 $11,144,578 $9,379,022 $10,661,724 $11,823,441 $12,408,356 11 40.1% -15.8% 13.7% 10.9% 4.9%

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In addition to debt issuance and reserve contributions, SVCW has made use of existing lines of credit and will make use of cash contributions in lieu of debt issuance. These contributions are shown in rows 5 and 6 of Figure 4-4. During the next five years, the City Capital Contributions owed to SVCW will vary between $0.8 million and $2.8 million per year.

4.3.3. SVCW Debt Service
At the outset of the RESCU program, SVCW saw the issuance of long-term debt as the most practical funding source. Per the LRFP, SVCW lacked sufficient cash reserves to fund large construction costs under a reduced timeframe. As a result, debt service was issued through a combination of bonds and loans that will extend to 2061. The current debt service per the 2024 LRFP shared among member agencies is $19 million. However, this figure is projected to swell to more than $42 million by FY 2035-36, as shown in Figure 4-5.

Figure 4-5. Previous SVCW Aggregate Debt Service by Member Agency Source: January 2023 SVCW Long Range Financial Plan, units shown in $ Millions.

Figure 4-6 revises the aggregate debt service to include the additional debt service which will fund the newly identified $221 million in capital projects per the 2024 LRFP. For reference, the yellow line follows the total aggregate debt service from the 2023 LRFP and Figure 4-5. The area of the blue bars above the yellow line indicates the additional debt service to fund the additional capital projects. The revised figures show that the aggregate debt service reach an annual ceiling of approximately $48 million by FY 2036-37.

The City’s share of debt service, shown in Figure 4-4, will grow from $3.3 million to $6.6 million during the five-year planning period. Debt service is second only to the City’s share of SVCW operating expenses and will continue to grow and must be accounted for, as evidenced by Figure 4-6.

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Figure 4-6. Updated SVCW Aggregate Debt Service by Member Agency Source: January 2024 SVCW Long Range Financial Plan, units shown in $ Millions.

4.4. Total Revenue Requirements
The foregoing modeling assumptions lead to the projected revenue requirements shown in Figure 4-7.

Figure 4-7. Projected Revenue Requirements
Note: See Figure 4-2 for City O&M Expenses. See Figure 4-3 for Sewer Enterprise Capital Expenditures. See Figure 4-4 for SVCW Expenses Highlights of the City’s projected revenue requirements are as follows:
•The City will fund an average of $8.8 million annually in collection system O&M costs. •The City will fund an average of $7.6 million annually in net capital expenditures for its own collection system.
•The City will fund an average of $11.1 million annually of combined SVCW O&M, capital expenditures, and debt service over the five-year planning period.

Current Year Projected
Net Expenses FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 1 City O&M Expenses $7,822,100 $7,927,300 $8,749,100 $8,662,700 $9,322,200 $9,519,300 2 Sewer Enterprise Capital Expenditures $9,404,560 $3,875,000 $4,275,000 $11,744,000 $10,140,100 $8,236,100 3 SVCW Expenses $7,956,699 $11,144,578 $9,379,022 $10,661,724 $11,823,441 $12,408,356 4 Net Revenue Requirement $25,183,359 $22,946,878 $22,403,122 $31,068,424 $31,285,741 $30,163,756 5 -8.9% -2.4% 38.7% 0.7% -3.6%

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4.5. City Reserves
In addition to covering annual expenses, sewer service charges need to generate revenue to maintain adequate operations and capital reserves. To determine what constitutes adequate reserve amounts, the reserve balance was subdivided into operations and capital reserve components. In this way, it is possible to set recommended target balances for each purpose.

4.5.1. Recommended Minimum Balance
The recommended minimum balance is the balance that is required to meet the City’s operating expenses, including payments made to SVCW, during the year. There is a nine-month lag between sewer service charge payments from the County tax assessor; therefore, the minimum Operations Reserve balance is set equal to six months of O&M expenses to provide adequate cash flow. The City’s annual obligations to SVCW, expressed in Figure 4-4, are also included in the calculation of O&M expenses. If this minimum balance is maintained, the City should be able to fund its monthly operations cash flow over this extended period without borrowing from money intended for capital investment. Maintaining the minimum balance for the Operations Reserve is recommended as the highest priority for the City’s reserve accounts.

This balance is equal to $7.1 million in FY 2024-25.

4.5.2. O&M & Capital Target Balance
The O&M & Capital target balance is the sum of the minimum balance for operations plus an allowance for capital projects. The capital allowance provides multiple benefits: 1) Working capital to maintain sufficient funds in order to pay contractors so that work can proceed without delay; 2) Emergency reserves to help manage risks associated with sudden asset failures caused by emergencies; and 3) Funding for scheduled replacement of the City’s fleet vehicles and operational equipment, and collection system assets. The target balance of $14.8 million in FY 2024-25 meets this objective. This includes the five-year average of cash-funded capital, based on the totals shown in Figure 4-3, row 13. Maintaining this target balance is recommended after meeting the minimum balance.

4.6. Revenue Increases
The City’s net revenue requirement is increasing by as much as 24% over the next five years from the FY 2023-24 value. Current rates cannot support the projected revenue requirements shown in Figure 4-7.

However, it is not necessary to increase rates a cumulative 24% over the next five-year period, as the City has adequate reserves to fully fund its reserve target and contribute supplemental reserves to partially offset the revenue requirement increases (as discussed in Section 4.7 below). Figure 4-8 summarizes the annual increase in the City’s revenue requirement, the proposed rate increases, and resulting impacts to reserves.

Figure 4-8. Annual Revenue Increases
Note: Revenue at current rate assumes growth in accounts.

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4.7. Fund Balance
Figure 4-9 provides context to explain why the City can operate at a shortfall during the five-year period.

In short, the City has been prudent to accumulate sufficient reserves in order to fund the necessary capital improvements over the next five years, without having to increase rates beyond a reasonable inflationary adjustment. The graph shows the projected annual fund balances with the rate revenue increases (solid green line). Although the projections show straight lines between years, the fund balance will be drawn down during each year. In other words, the reserves are actively always drawn from during the year but only periodically added to when payments are received from the County. The reserves are not simply accumulated without being used. The recommended revenue increases will maintain a fund balance above the target during the five-year planning period and allow the City to draw from existing reserves while meeting a growing revenue requirement. This strong financial position provides the City with opportunities to use reserves for future anticipated expenses.

Figure 4-9. Fund Balance Projections

4.7.1. Debt Service Coverage
The City tracks two separate debt coverage ratios to help it maintain its existing debt service covenants.

The City must meet a parity debt coverage ratio minimum of 1.2 and an all-in debt coverage ratio of 1.2.

The parity debt coverage ratio includes all existing SVCW issued bonds, as shown on line 8 of Figure 4-4.

In addition to the SVCW issued bond payments, the all-in debt coverage ratio includes all other SVCW debt service obligations, shown on line 9 of Figure 4-4. Sewer service charges, connection fee revenues, and investment interest are included in the City’s calculation of net revenue to ensure compliance with these coverage ratios. Figure 4-10 demonstrates the City’s debt coverage ratios would meet the minimum requirements during the five-year planning period with the future schedule of rates discussed previously in Section 3.6.

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Figure 4-10. City Debt Coverage Ratio Calculations

4.7.2. Credit Rating Considerations
The City strives to maintain a strong credit rating to remain eligible for optimal financing terms for any future debt service. One metric considered includes the available days of operating cash on hand. Figure 4-11 calculates this metric, assuming the proposed rate increases are implemented. Note, per City practice, only O&M expenses paid to SVCW are included in the total operating expenses portion of the calculation. Debt service and capital contributions are excluded. With recommended rate increases the City will continue to maintain more than 575 days of operating cash on hand. This threshold represents the “AA” credit rating for entities within this sector. For reference, the threshold of 575 days of operating cash on hand is shown as the dashed blue line in Figure 4-9, as well.

Figure 4-11. Days of Operating Cash on Hand Projection Current Year Projected
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 1 Total Revenues w/ Proposed Rate Increases $23,811,478 $27,523,109 $32,784,025 $24,542,849 $25,451,380 $26,445,735 2 (Less) Net Expenses
3 SVCW Operating Expenses ($4,086,539) ($3,942,053) ($4,094,152) ($4,275,202) ($4,498,202) ($4,631,151) 4 SVCW Reserve Contributions $0 $0 $0 $0 $0 $0
5 Non-Operating Expenses ($4,577,800) ($4,722,400) ($5,023,800) ($5,183,500) ($5,348,300) ($5,518,300) 6 Non-Operating Revenue $649,700 $669,300 $689,400 $700,600 $710,400 $720,500 7 City Operating Expenses ($3,894,000) ($3,874,200) ($4,414,700) ($4,179,800) ($4,684,300) ($4,721,500) 8 Subtotal Net Expenses ($11,908,639) ($11,869,353) ($12,843,252) ($12,937,902) ($13,820,402) ($14,150,451) 9 10 Net Revenues $11,902,840 $15,653,756 $19,940,773 $11,604,947 $11,630,977 $12,295,284 11 Parity Debt Service $2,987,700 $2,989,100 $3,061,160 $3,233,121 $3,251,909 $3,626,824 12 Parity Debt Coverage Ratio 3.98 5.24 6.51 3.59 3.58 3.39 13 All-In Debt Service $3,307,699 $4,339,100 $4,407,022 $4,578,983 $6,293,441 $6,668,356 14 All-In Debt Coverage Ratio 3.60 3.61 4.52 2.53 1.85 1.84 Current Year Projected
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 1 FYE Reserve Balance w/ Proposed Rate Increases $39,982,999 $40,059,230 $41,440,132 $34,783,557 $28,814,296 $24,957,376 2 SVCW O&M Expenses $4,086,539 $3,942,053 $4,094,152 $4,275,202 $4,498,202 $4,631,151 3 Net City O&M Expenses $7,822,100 $7,927,300 $8,749,100 $8,662,700 $9,322,200 $9,519,300 4 Total Operating Expenses $11,908,639 $11,869,353 $12,843,252 $12,937,902 $13,820,402 $14,150,451 5 Days of Operating Cash on Hand 1,225 1,232 1,178 981 761 644

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5. RECOMMENDATIONS

5.1. Summary of Proposed Rates
Given the Wastewater Enterprise’s current revenue and available reserves, we recommend inflationary increases for FY 2024-25 through FY 2026-27. Revenue increases for subsequent years have been projected in this financial plan and are based on several assumptions and information that will require review prior to adopting any future rate increases. Figure 5-1 summarizes projected rates to be included in the Proposition 218 notice for FY 2024-25 through FY 2026-27.

Figure 5-1. Projected Rates (FY 2024-25 through FY 2026-27)

5.2. Neighboring Agency Comparison
Based on available sources, Figure 5-2 shows the recent charges for sewer service to single-family customers among various San Mateo and Santa Clara County agencies. Rate structures vary among agencies. For purposes of comparison, flow-based charges assume an annual flow volume of 70 HCF, based on the City’s average metered water consumption for single-family customers in 2023. While the City has the highest rates of all four SVCW member agencies, all other SVCW member agencies also face similar additional costs. It is anticipated that these agencies will be required to increase their rates to continue covering their share of SVCW costs. Even with the projected rate increases, we would not expect the City’s relative position among its neighbors to change significantly.

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Figure 5-2. Comparison of Annual Sewer Charges for Single-Family Customers Note: All rates shown reflect approved FY 2024-25 rates, except for Mountain View, Palo Alto, East Palo Alto Sanitary District, & Daly City.

5.3. Future Considerations
The City did not re-calculate the cost of service as part of this study. The cost-of-service analysis was last performed as part of the 2019 study. Industry practice recommends updating the cost-of-service analysis every five years. We would recommend the City re-visit the cost of service when it reviews rates again.

The City anticipates substantial connection fees over the five-year planning period. These anticipated revenues will support a growing capital improvement program for the City’s collection system. The City should monitor connection fee revenues and adjust capital spending or future rate increases in response to actual connection fee revenues received.

Connection fee revenues factor into the City’s debt coverage calculation, as well. Reduced connection fee revenues would reduce the net revenue used to ensure the City meets its annual debt coverage ratio of

1.20 to maintain current bond covenants. Second, reduced connection fee revenues would reduce the days of operating cash on hand, potentially impacting the City’s credit rating. This revenue is an important consideration in future financial planning.

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CITY COUNCIL

STAFF REPORT
MEETING DATE: April 8, 2024
ITEM TITLE: Consideration of Introducing an Ordinance Amending San Carlos Municipal Code Chapter 2.24 - Commissions to Update the Meeting Frequency for the Economic Development Advisory Commission.

RECOMMENDATION:

Staff recommends approving an ordinance amending San Carlos Municipal Code Chapter 2.24 to state that the Economic Development Advisory Commission (EDAC) shall meet quarterly at a minimum.

FISCAL IMPLICATIONS:

None.

BACKGROUND:

San Carlos Municipal Code Chapter 2.24.080 Meetings - Frequency, states that “Each commission or board shall hold regular meetings, not less than one each month, at the Council chambers of the City Hall of San Carlos or at such other place as may be convenient and necessary. The time and day of such meetings shall be as set from time to time by each commission or board.”
However, Chapter 2.24.260 C.2 states that “EDAC shall establish rules and regulations for its own procedures and shall meet a minimum of four times per year, and whenever else it determines to be necessary.”
Historically, EDAC met at City Hall on a monthly basis. At times, the Commission faced difficulty establishing a quorum at monthly meetings, requiring last minute cancellations on the day of a meeting. When staff approached Commissioners on strategies to ensure more regular attendance at meetings, the Commissioners proposed reducing the number of regularly scheduled meetings.

In 2021, the Commission began meeting five times per year and now effectively meets on the fourth Tuesdays of January, March, May, August, and October.

ANALYSIS:

Since adopting this reduced meeting schedule, staff has found attendance at EDAC meetings to be more stable and has not faced issues establishing a quorum at regularly scheduled meetings.

However, while SCMC Chapter 2.24.260 states that EDAC must only meet a minimum of four times per year, Chapter 2.24.080 states that all commissions must meet no less than once a month, with the exception of the Parks, Recreation and Culture Commission. For this reason, EDAC has continued to send out cancellation notices for the months during which it does not

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meet.

Staff proposes an amendment to the Municipal Code to add EDAC as an exception to the monthly meeting requirement alongside the Parks, Recreation and Culture Commission and aligning Chapter 2.24.260 with Chapter 2.24.080. This amendment will also mean that the City is no longer required to send cancellation notices for the months during which EDAC is not scheduled to meet.

If approved, EDAC’s regular meeting times will be the fourth Tuesdays of January, March, May, August, and October at 4:00 p.m.

ALTERNATIVES:

The alternatives available to the City Council include:

1. Introduce an Ordinance amending San Carlos Municipal Code Chapter 2.24 - Commissions to update the meeting frequency for the Economic Development Advisory Commission; or

2. Do not introduce the proposed Ordinance; or

3. Provide staff with alternative direction.

Respectfully submitted by:

Al Savay, Community Development Director
Approved for submission by:
_______________________
Jeff Maltbie, City Manager
ATTACHMENT(S):

1. Ordinance Amending San Carlos Municipal Code Chapter 2.24

2. EDAC Resolution No. 2024-01

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ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF SAN CARLOS AMENDING SAN CARLOS MUNICIPAL CODE CHAPTER 2.24 – COMMISSIONS, TO UPDATE THE MEETING FREQUENCY FOR THE ECONOMIC DEVELOPMENT ADVISORY COMMISSION.

SECTION 1. Findings. The City Council of the City of San Carlos does hereby find and declares as follows:

WHEREAS, San Carlos Municipal Code Section 2.24 establishes the Commissions and Boards in San Carlos; and
WHEREAS, the City Council desires to provide more opportunities for residents of San Carlos to serve on commissions, committees, and boards and to hear more diverse opinions and input when considering issues that come before the City Council; and WHEREAS, the Economic Development and Advisory Commission has effectively been meeting five times per year for the last three years and the City Council deems this an appropriate time to formally adjust the Commissions meeting frequency to a minimum of four times per year.

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

SECTION 2: The City Council hereby approves the Municipal Code Ordinance amendment attached as Exhibit A.

SECTION 3: CEQA. This Ordinance is exempt from additional environmental review pursuant to California Environmental Quality Act (“CEQA”) Guidelines Section 15061(b)(3); under the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 5: Publication and Effective Date. This Ordinance shall be published and posted according to law and shall take effect and be in force from and after 30 days after its passage and adoption.
* * * *
I, City Clerk Crystal Mui, hereby certify that the foregoing Ordinance was introduced on the 8th day of April, 2024 and passed and adopted as an Ordinance of the City Council of the City of San Carlos at a regular meeting thereof held on the ____ day of ____, 2024 by the following vote:

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________________________________
CITY CLERK of the City of San Carlos
APPROVED:
____________________________
MAYOR of the City of San Carlos
Exhibit A: Amendments to San Carlos Municipal Code Chapter 2.24 AYES, COUNCILMEMBERS:

NOES, COUNCILMEMBERS:

ABSENT, COUNCILMEMBERS:

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EXHIBIT A – AMENDMENT TO SAN CARLOS MUNICIPAL CODE CHAPTER 2.24 –

COMMISSIONS
(New language is shown with bold underline. Removed language is shown in strikethrough)

2.24.080 Meetings—Frequency.

Each commission or board shall hold regular meetings, not less than one each month, at the Council chambers of the City Hall of San Carlos or at such other place as may be convenient and necessary. The time and day of such meetings shall be as set from time to time by each commission or board. Each commission or board shall hold such additional meetings as it deems advisable. If at any time any regular meeting falls on a holiday, such regular meeting shall be held on the next business day. The Parks, Recreation and Culture Commission and the Economic Development Advisory Commission shall be required to meet only quarterly.

2.24.260 Economic Development Advisory Commission.

C. Organization and Terms of Office.

1. At the initial meeting of EDAC, and yearly thereafter, the Commissioners shall elect the Chairperson, Vice Chairperson, a Secretary and other such officers as deemed necessary by the Commissioners. The Chairperson shall preside at all meetings of EDAC.

The Vice Chairperson shall perform the duties of the Chairperson when the Chairperson is absent. In the event of a vacancy in the Chairperson’s position, the Vice Chairperson shall succeed as Chairperson for the balance of the Chairperson’s term and the Commission shall elect a successor to fill the vacancy of the Vice Chairperson.

2. EDAC shall establish rules and regulations for its own procedures and shall meet a minimum of four times per year quarterly at a minimum, and whenever else it determines to be necessary.

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RESOLUTION NO EDAC2024-01

A RESOLUTION OF THE ECONOMIC DEVELOPMENT ADVISORY

COMMISSION OF THE CITY OF SAN CARLOS ADOPTING A RESOLUTION

TO ESTABLISH THE SAN CARLOS ECONOMIC DEVELOPMENT ADVISORY

COMMISSION MEETING SCHEDULE
WHEREAS, Section 2.24.260 of the San Carlos Municipal Code provides that the Economic Development Advisory Commission shall establish rules and regulations for its own procedures and shall meet a minimum of four times per year and whenever else it deems necessary; and
WHEREAS, the Economic Development Advisory Commission desires to formally establish a schedule for its future meetings; and
WHERAS, the Economic Development Advisory Commission has determined that the fourth Tuesday of the following months is a convenient and appropriate time for meetings: January, March, May, August, and October; and NOW, THEREFORE, BE IT RESOLVED that the Economic Development Advisory Commission of the City of San Carlos shall hold its regular meetings on the fourth Tuesday of the following months: January, March, May, August, and October.

Passed and adopted as a Resolution of the Economic Development Advisory Commission of the City of San Carlos, at a regular meeting thereof held on the 26" day of March, 2024 by the following vote:

AYES COMMISSIONERS:

NOES, COMMISSIONERS:

ABSENT, COMMISSIONERS:

Ate mL
CHAIR of the Economic Development Advisory Commission
of the City of San Carlos

ATTEST:

ECONOMIC DEVELOPMENT AND HOUING MANAGER
of the City of San Carlos
Hickey, Krishnan, Kumar, Liu, Sailesh, Molinari
None
Kamm

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San Carlos City CouncilApril 8, 2024

San Carlos City Council
April 8, 2024