Agenda packet, regular meeting — San Mateo City Council, June 5, 2023 (part 2 of 3)

236 of 763
A plat showing the above described parcel is attached hereto and made a part hereof as Exhibit “B”.

This legal description was prepared by me or under my direction in conformance with the requirements of the Professional Land Surveyors’ Act.
06/07/2022
David C. Jungmann, PLS 9267 Date

END OF DESCRIPTION

Page 2 of 3 ends

237 of 763
BASIS OF BEARINGS:

IRON PIPE WITH
CAP STAMPED "LS
5929" IN WELL PER
42 MAPS 19-20
THE BEARING OF SOUTH 19°00'00” EAST, BETWEEN TWO FOUND

MONUMENTS ON BERMUDA DRIVE, AS SHOWN ON THAT
CERTAIN MAP ENTITLED "FIESTA GARDENS UNIT NO. 2", FILED FOR RECORD ON MAY 18, 1955 IN BOOK 42 OF MAPS AT PAGES
19-20, RECORDS OF SAN MATEO COUNTY, WAS TAKEN AS THE
BASIS OF BEARINGS FOR THIS SURVEY.
255 SHORELINE DR.,
SUITE 200

SUBJECT
REDWOOD CITY, CA 94065 JOB NO.
(650) 482-6300 BY APPR. DATE
www.bkf.com OF
238 of 763
Utility Distribution Easement (02/2020)
Pacific Gas and Electric Company
EXHIBIT “C”

GRANT OF EASEMENT DISCLOSURE STATEMENT
This Disclosure Statement will assist you in evaluating the request for granting an easement to Pacific Gas and Electric Company (PG&E) to accommodate a utility service extension to PG&E’s applicant. Please read this disclosure carefully before signing the Grant of Easement.
•
•
You are under no obligation or threat of condemnation by PG&E to grant this easement.

The granting of this easement is an accommodation to PG&E’s applicant requesting the extension of PG&E utility facilities to the applicant’s property or project. Because this easement is an accommodation for a service extension to a single customer or group of customers, PG&E is not authorized to purchase any such easement.
• By granting this easement to PG&E, the easement area may be used to serve additional customers in the area and may be used to install additional utility facilities. Installation of any proposed facilities outside of this easement area will require an additional easement. • Removal and/or pruning of trees or other vegetation on your property may be necessary for the installation of PG&E facilities. You have the option of having PG&E’s contractors perform this work on your property, if available, or granting permission to PG&E’s applicant or the applicant’s contractor to perform this work.

Additionally, in order to comply with California fire laws and safety orders, PG&E or its contractors will periodically perform vegetation maintenance activities on your property as provided for in this grant of easement in order to maintain proper clearances from energized electric lines or other facilities. • The description of the easement location where PG&E utility facilities are to be installed across your property must be satisfactory to you.
• The California Public Utilities Commission has authorized PG&E’s applicant to perform the installation of certain utility facilities for utility service. In addition to granting this easement to PG&E, your consent may be requested by the applicant, or applicant’s contractor, to work on your property. Upon completion of the applicant’s installation, the utility facilities will be inspected by PG&E. When the facility installation is determined to be acceptable the facilities will be conveyed to PG&E by its applicant.

By signing the Grant of Easement, you are acknowledging that you have read this disclosure and understand that you are voluntarily granting the easement to PG&E. Please return the signed and notarized Grant of Easement with this Disclosure Statement attached to PG&E. The duplicate copy of the Grant of Easement and this Disclosure Statement is for your records.
239 of 763
Utility Distribution Easement (02/2020)
Attach to LD 2304-04-10051
Area 1, Peninsula Division
Land Service Office: San Jose
Line of Business: Electric Distribution (43)
Business Doc Type: Easement
MTRSQ: (23.04.04.27.32)
FERC License Number(s): N/A
PG&E Drawing Number(s): N/A
PLAT NO.:B-07-17
LD of any affected documents:N/A
LD of any Cross-referenced documents: 2304-04-0690
TYPE OF INTEREST: Electric Underground Easement (4), Communication Easement (6), Utility Easement (86) SBE Parcel Number: N/A
(For Quitclaims, % being quitclaimed): N/A
Order # or PM #: 31526923-0070
JCN: N/A
County: San Mateo
Utility Notice Numbers (if applicable): N/A
851 Approval Application No.

Prepared By: kcv2
N/A Decision N/A
Checked By: dan9
Approved By: N/A
Revised by: N/A
240 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 19 Section Name: CONSENT CALENDAR Account Number: 10-4662 File ID: 23-7516 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 05, 2023
SUBJECT:

State of California Department of Transportation Delegated Maintenance Agreement – Amendment RECOMMENDATION:

Adopt a Resolution approving Amendment No. 4 to the Delegated Maintenance Agreement with the State of California Department of Transportation for maintenance of State Highways in the City of San Mateo to reduce the scope of the City’s maintenance responsibilities within Caltrans’s right-of-way along State Route 92 and authorize the City Manager to execute the amendment in substantially the form presented.

BACKGROUND:

On June 15, 1998, the City entered into a Delegated Maintenance Agreement with the State of California Department of Transportation (Caltrans) whereby the City would provide street sweeping services for certain areas of State Route 82, electrical maintenance services for certain areas of State Route 82 and State Route 92, and maintenance of certain public facilities on the northbound side of State Route 101 at Third Avenue. Since then, three amendments to the Delegated Maintenance Agreement were executed:
• In November 2014, Amendment 1 increased the allowable charges to Caltrans for the maintenance of street sweeping and electrical services.
• In January 2016, Amendment 2 added shared maintenance responsibilities for pedestrian hybrid beacons and/or safety lights located at West 39th Ave and 22nd Avenue on State Route 82/El Camino Real. • In January 2018, Amendment 3 added the following for the City to maintain: (1) slopes, drainage, vegetation, and landscaping within Caltrans’ right-of-way along State Route 92 and (2) certain improvements constructed under the 25th Avenue Grade Separation project.

In August 2018, roadway improvements to reconfigure the State Route 82/State Route 92 Interchange (82/92 Interchange Project) were completed as part of a joint project between the City of San Mateo, San Mateo County Transportation Authority, and Caltrans. The original 82/92 Interchange Project included landscaping work; however, prior to completion, the landscaping portion of the work was postponed due to the drought in California. Since then, the drought restrictions have been lifted.

In December 2020, the City entered into a cooperative agreement with Caltrans for the 82/92 Interchange Landscape Project (Landscape Project) in order to implement landscaping improvements within Caltrans right-of-way. The Landscape Project’s objective is to create an attractive interchange that meets Caltrans requirements and minimizes the resources needed to maintain it. The Landscape Project includes clearing and grubbing, light grading and contouring, ground cover and tree planting, and irrigation improvements. It also includes landscaping along the sound wall in the northeast portion of the cloverleaf that faces the Hayward Park neighborhood. Staff gave Council an informational update on the landscaping design concept options in January 2021. The City is currently under contract with BKF Engineers to design and develop construction documents for the Landscape Project. 241 of 763

CITY OF SAN MATEO
During the design phase for the Landscape Project, staff negotiated with Caltrans staff, who agreed to amend the current Delegated Maintenance Agreement to reflect a reduction of the City’s maintenance responsibilities within Caltrans’s rightof-way along State Route 92. This amendment will return State Route 92 maintenance responsibilities to Caltrans for slopes, drainage, vegetation, and landscaping from San Mateo west city limits near Ralston Polhemus Road overcrossings to San Mateo city limits 2,320 feet west of Foster City Boulevard overcrossing (a length of 5.17 miles). Returning these responsibilities to Caltrans is consistent with current Delegated Maintenance Agreements between Caltrans and nearby agencies. Approval of this amendment will assist moving the Landscape Project forward to obtain a Caltrans encroachment permit to allow for construction to begin.

BUDGET IMPACT:

There is no budget impact associated with this amendment.

ENVIRONMENTAL DETERMINATION:

This action of approving Amendment No. 4 is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 – Amendment No. 4
Att 3 - Original Agreement
Att 4 – Amendment No. 1
Att 5 – Amendment No. 2
Att 6 – Amendment No. 3

STAFF CONTACT
Tina Pham, Senior Engineer
[email protected]
(650) 522-7305
242 of 763

CITY OF SAN MATEO
RESOLUTION NO. ____ (2023)
APPROVING AMENDMENT NO. 4 TO THE AGREEMENT WITH STATE OF CALIFORNIA DEPARTMENT OF

TRANSPORTATION (CALTRANS) FOR MAINTENANCE OF STATE HIGHWAYS WITHIN THE CITY WHEREAS, the City of San Mateo (City) and State of California Department of Transportation (CALTRANS), collectively referred to as PARTIES, entered into Agreement for Maintenance of State Highways in the City of San Mateo (Maintenance Agreement) on June 15, 1998, whereby the City would provide street sweeping services and electrical maintenance services for certain areas of State Route 82/El Camino; and WHEREAS, amendments to the Maintenance Agreement were approved in November 2014 (Amendment 1), January 2016 (Amendment 2), and January 2018 (Amendment 3) that increased scope of work for both the City and Caltrans; and
WHEREAS, PARTIES now seek to amend Maintenance Agreement with Amendment No. 4 to return State Route 92 maintenance responsibility to Caltrans for slopes, drainage, vegetation, and landscaping from San Mateo west city limits near Ralston Polhemus Road Overcrossings to San Mateo city limits 2,320 feet west of Foster City Boulevard Overcrossing.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:

1. Approval of Amendment No. 4 to the Agreement for Maintenance of State Highways is not a project subject to CEQA because it is an organizational or administrative activity that will not result in direct or indirect physical changes to the environment. (CEQA Guidelines Section 15378(b)(5).)

2. The City Council approves Amendment No. 4 to the Agreement for Maintenance of State Highways in the City of San Mateo between the City and the State of California.

3. The City Council authorizes the City Manager to execute the amendment to the Agreement for Maintenance of State Highways in the City of San Mateo between the City and the State of California.
243 of 763
AMENDMENT NO. 4

AGREEMENT FOR MAINTENANCE OF STATE HIGHWAYS

IN THE CITY OF SAN MATEO
This Amendment No. 4 to the Agreement for Maintenance of State Highways in the City of San Mateo is made and entered into by and between the State of California, acting by and through the Department of Transportation, hereinafter referred to as “STATE”, and the City of San Mateo, hereinafter referred to as “CITY”.

WITNESSETH:

A. WHEREAS, an Agreement for Maintenance of State Highways in the City of San Mateo, hereinafter referred to as “AGREEMENT”, as provided for in Section 130 of the Streets and Highways Code, was executed on June 15, 1998; and
B. WHEREAS, the AGREEMENT by its terms provides that it may be modified or amended at any time upon mutual consent of the parties; and
C. WHEREAS, the AGREEMENT was amended by the parties on December 15, 2014 (Amendment 1), January 21, 2016 (Amendment 2), and January 18, 2018 (Amendment 3); and D. WHEREAS, the parties hereto now desire that AGREEMENT be further amended.

NOW, THEREFORE, the parties agree to amend AGREEMENT as follows:

1. Page 1 of 4 of EXHIBIT A is hereby replaced with Page 1A of 4 of Exhibit A4, attached and incorporated in by reference. Exhibit A Section H, is hereby replaced with the amended SECTION H in its entirety.

2. This Amendment No. 4 to AGREEMENT shall supersede all previously approved Amendments.

3. This Amendment No. 4 to AGREEMENT shall become effective upon execution. In all other respects, AGREEMENT shall remain in full force and effect until amended or terminated.

CITY OF SAN MATEO
__________________________________
City Manager

STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION
Anthony Tavares
Director of Transportation
By
_______________________________________
Date
Leah Budu
Deputy District Director, Maintenance
244 of 763

EXHIBIT A
H. DELEGATION OF MAINTENANCE:

The specific maintenance function indicated below (and on “Exhibit A”) is herby delegated to the CITY. This delegation of maintenance function set forth herein does not include areas and functions of which the control and maintenance rest with the local authority under the terms of Freeway Agreements and/or Freeway Maintenance Agreements.

Route
No.

Length
Miles Description of Routing
Program
Delegation
Maximum
Annual
Authorized
Expenditure
82 4.40 El Camino Real from south city limits at 43rd Avenue to north city limits at Peninsula Avenue; a length of 4.40 miles, of which half width from Barriolhet to Peninsula, a length of 0.06 mile, lies within the CITY.
(Footnotes 1, 2, 3, 5)
HM2C
HM2D
HM2E
HM4K
$0.00
$40,000.00
$0.00
$12,000.00
Total
Authorized
Route 82
$52,000.00
92 5.17 J. Arthur Young Freeway from west city limits near Ralston Polhemus Road Overcrossing to city limits 2,320 feet west of Foster City Boulevard Overcrossing, a length of 5.17 miles.

HM4K $4,650.00
Total
Authorized
Route 92
$4,650.00
101 5.13 Bayshore Freeway from city limits 2,175 feet north of Ralston Avenue Overcrossing to north city limits 2,100 feet north of Peninsula Avenue Overcrossing, a length of 5.13 miles.
(Footnote 4)
HM2G $0.00
Total
Authorized
Route 101
$0.00
TOTAL AUTHORIZED AMOUNT $56,650.00
Footnotes:

1. Length of street to be cleaned – 16.9 curb-miles

2. CITY will maintain, at CITY expense, all portions of the Hillsdale Boulevard structure across El Camino Real above the bridge deck (Exhibit B).

3. CITY will maintain median landscaping at CITY expense.

4. CITY will maintain, at CITY expense, the park-and-ride lot located on the northbound side of Route 101 at Third Avenue.

5. CITY will maintain, at CITY expense, portion of El Camino Real related to the 25th Avenue Grade Separation Project as described and highlighted in Exhibit C.

Page 1 ends

245 of 763

AGREEMENT FOR MAINTENANCE OF STATE HIGHWAYS

IN THE CITY OF SAN MATEO
THIS AGREEMENT, made and entered into this 15th day of June 19~, by and between the State of California, acting by and throu-g-Ch-:cthc-e---- Department of Transportation, hereinafter referred to as uSTATE," and the City of San Mateo, hereinafter referred to as "CITY."
WITNESSETH:

A. RECITALS:

The Parties desire to provide for the CITY to perform particular maintenance functions on the State highway(s) within the CITY as provided in Section 130 of the Streets and Highways Code.

B. AGREEMENT:

This Agreement shall supersede any previous AGREEMENT FOR MAINTENANCE OF STATE HIGHWAYS IN THE CITY OF SAN MATEO and/or Amendments thereto with the CITY.

In consideration of the mutual covenants and promises herein contained, it is agreed:

The CITY will perform such maintenance work as is specifically delegated to it, on the State highway routes or portions thereof all as hereinafter described under Section H hereof or as said Section may be subsequently modified with the consent of the parties hereto acting by and through their authorized representative.

C. MAINTENANCE DEFINED:

Maintenance is defined in Section 27 of the Streets and Highways Code as follows:

Section 27. (a)
(b)
(c)
The preservation and keeping of rights of way, and each type of roadway, structure, safety convenience or device, planting, illumination equipment and other facility, in the safe and usable condition to which it has been improved or constructed, but does not include reconstruction, or other improvement.

Operation of special safety conveniences and devices,
and illuminating equipment.

The special or emergency maintenance or repair
necessitated by accidents or by storms or other weather conditions, slides, settlements or other unusual or
unexpected damage to a roadway, structure or facility.

DUPliCATE ORIGINAL
246 of 763
D. DEGREE OF MAINTENANCE:

The degree or extent of maintenance work to be performed and the standards therefor shall be in accordance with the provisions of Section 27 of the Streets and Highways Code, as set forth in the current edition of the State Maintenance manual (a copy of which has been provided to the CITY), or as may be prescribed from time to time by the District Director. "District Director," as used herein, means the District Director of the Department of Transportation assigned to the territory in which the CITY is located, or his authorized representative.

The STATE reserves the option to inspect at random all areas of State Highways maintained by the CITY to assure conformance to maintenance levels. Failure of the CITY to comply with the maintenance levels would be reason to terminate this agreement as specified under Section J "Term of Agreement." However, this random inspection does not preempt the CITY's maintenance responsibilities as specified in this Agreement.

An encroachment permit will be required for third parties when maintenance work is redelegated. Such redelegated work shall be performed at the same levels of service as specified herein and will be subject to the same random inspection as provided for work performed directly by CITY forces.

The level of service of maintenance in each of the programs delegated to the CITY has been considered in setting authorized total and route dollar amounts. The CITY may perform additional work if desired, but the STATE will not reimburse the CITY for any work in excess of authorized dollars. The District Director may authorize adjustments needed because of inflation or changes in program emphasis.

E. lEGAL RELATIONS AND RESPONSIBILITIES:

Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this contract or affect the legal liability of either party to the contract by imposing any standard of care respecting the maintenance of State highways different from the standard of care imposed by law.

It is understood and agreed that neither the STATE nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the CITY under or in connection with any work, authority or jurisdiction delegated to the CITY under this Agreement. It is understood and agreed that pursuant to Government Code Section 895.4 CITY shall defend, indemnify and save harmless the State of California, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the CITY under or in connection with any work, authority or jurisdiction delegated to the CITY under this Agreement.
2 247 of 763
It is understood and agreed that neither the CITY nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the ST-ATE under or in connection with any work, authority or jurisdiction delegated to the STATE under this Agreement. It is understood and agreed that pursuant to Government Code Section 895.4, STATE shall defend, indemnify and save harmless the CITY, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the STATE under or in connection with any work, authority or jurisdiction delegated to the STATE under this Agreement.

F. MAINTENANCE FUNCTIONS:

The CITY shall perform only those maintenance functions delegated, as identified, in Section H "DELEGATION OF MAINTENANCE" of this Agreement.

A brief description of those maintenance functions delegated to the CITY are included in this section. The functions are identified by the Caltrans HM Program Codes.

HM2C SlOPES/DRAINAGEIVEGETATION
This provides for cleaning, maintaining, and repairing structures, fences, and other appurtenances between the roadbed and the outer highway right-of-way boundary line. It also includes weed and brush control by chemical, biological or mechanical methods, trimming and removal of trees and pest control. The following problems are included:

1. Unpaved Shoulder Management

2. Nonlandscaped Weed Control

3. Nonlandscaped Tree/BushlVegetation

4. Fence Repair
The CITY will act as agent for the STATE to notify abutting property owners of deficiencies in the sidewalks and request owners to make the necessary repairs, or, furnish names and addresses of those owners.

HM2D LITTER/DEBRIS
This provides for removal of litter and debris from roadway surfaces and roadsides. The following problems are included:

1. Debris/Carcass Pickup

2. Litter pickup

3. Spills of non-toxic substances

4. Sweeping
Unless CITY itself is negligent, the STATE will, not withstanding the provisions of Section E, defend, indemnify and save harmless the CITY against claims for this function (HM2D Litter/Debris) if work meets the 3 248 of 763
following criteria:

Work will be performed at fourteen (14) day intervals. Call-outs will be responded to within a reasonable time or the STATE's Maintenance Manager will be notified.

HM2E LANDSCAPING
This provides for watering, fertilizing, removal of shrubs, and control of weeds in planted areas. It also includes trimming, removal, and spraying of trees, replacement of plants, shrubs, and trees, and pest control in planted areas. The following problems are included:

1. Weed Control

2. Pruning/Thinning/Removing/Replacing

3. Irrigation
HM2G PUBLIC FACILITIES
This provides for work to provide a clean and attractive appearance for parkand-ride lots. Maintenance of appurtenances such as roadway surfacing, signs, pavement markings, and electrical installations are to be included in this program. The following problems are also included:

1. Maintaining Plants

2. Weed Control

3. Litter Pickup

4. Sweeping

5. Emptying Trash Cans

6. Graffiti

7. Repairing Fences

8. Repairing Bicycle Lockers

9. Irrigation
HM4K ELECTRICAL
This includes maintenance work performed on highway electrical facilities including flashing beacons, traffic signals, traffic-signal systems, safety lighting and sign lighting. It also includes the electrical energy for these items.

Timing sequence of traffic signals shall be determined after consultation with the CITY; however, the decision of the District Director of Transportation shall be final.

COST SHARING OF ELECTRICAL FACILITIES
The STATE will not pay for the maintenance, installation, repair, servicing, nor power for ordinary street lighting; however, lighting at intersections, which qualify as safety lighting under warrants approved/accepted by the STATE, will be paid for when approved and specifically authorized by the District Director. Where such lighting has been specifically authorized, the 4 249 of 763
maintenance and operating costs thereof shall be shared between the STATE and the CITY on a pro rata basis in the same ratio as the number of legs in the intersection under each jurisdiction bears to the total number of legs.

The cost of maintaining traffic signals or other electrically operated traffic control devices now in place or those which may hereafter be installed at the intersection of any STATE highway route and any CITY street/road shall be shared between the STATE and the CITY on a pro rata basis in the same ratio as the number of legs in the intersection under each jurisdiction bears to the total number of legs. The same principle of cost distribution shall apply to freeway interchanges. The participation ratio shall be based on the ratio of the number of legs of the respective agencies to the total number of legs of the intersection.

EMERGENCY OPERATION OF TRAFFIC SIGNALS
Flashing operation shall be considered as the "primary emergency mode of operation at all intersections." Red/Yellow or all red may be used, as determined by STATE.

Every effort shall be made to restore the intersection to normal operation as soon as possible.

G. EXPENDITURE AUTHORIZATION:

The STATE will reimburse the CITY for actual cost of all routine maintenance work performed by CITY as delegated under Section H of this Agreement, but is agreed that during any fiscal year, the maximum expenditure on any route shall not exceed the amount as shown on Section H of this Agreement, unless such expenditure is revised by an amended Agreement or otherwise adjusted or modified as hereinafter provided for.

A new "DELEGATION OF MAINTENANCE" sheet (Section H) will be provided annually by the STATE for the ensuing fiscal year, if necessary, to ensure equitable annual cost.

Additional expenditures or adjustment of expenditures thus authorized shall apply during the fiscal year designated therein and shall not be deemed to permanently modify or change the basic maximum expenditure per route as hereinafter specified. An adjustment of the said maximum expenditure, either increase or decrease, shall not affect other terms of the Agreement. 5 250 of 763
H. DELEGATION OF MAINTENANCE:

The specific maintenance function indicated below (and on "EXHIBIT A") is hereby delegated to the CITY. This delegation of maintenance function set forth herein does not include areas and functions of which the control and maintenance rest with the local authority under the terms of Freeway Agreements and/or Freeway Maintenance Agreements.

Maximum
Annual
Route Length Program Authorized
No. Miles Description of Routing Delegated Expenditure
82 4.40 EI Camino Real from south city limits at 43rd HM2C $ 0.00 Avenue to north city limits at Peninsula Avenue; HM2D 17,750.00 a length of 4.40 miles, of which half width from HM2E 0.00 Barroilhet Avenue to Peninsula Avenue, a length HM4K 6,750.00 of 0.06 mile, lies within the CITY.
(Footnotes 1, 2, 3)
Total Authorized Route 82 $ 24,500.00
92 5.17 J. Arthur Younger Freeway from west city limits HM4K $ 4,650.00 near Ralston Polhemus Road Overcrossing to city
limits 2,320 feet west of Foster City Boulevard
Overcrossing, a length of 5.17 miles.

Total Authorized Route 92 $ 4,650.00
101 5.13 Bayshore Freeway from city limits 2,175 feet HM2G $ 0.00 north of Ralston Avenue Overcrossing to north
city limits 2,100 feet north of Peninsula Avenue
Overcrossing, a length of 5.13 miles.
(Footnote 4)
Total Authorized Route 101 $ 0.00
TOTAL AUTHORIZED AMOUNT $ 29,150.00
Footnotes:

1. 2.

3. 4.

Length of street to be cleaned - 16.9 curb-miles
CITY will maintain, at CITY expense, all portions of the Hillsdale Boulevard structure across EI Camino Real above the bridge deck (See Exhibit B).

CITY will maintain median landscaping at CITY expense.

CITY will maintain, at CITY expense, the park-and-ride lot located on the northbound side of Route 101 at Third Avenue.
6 251 of 763
I. SUBMISSION OF BILLS:

The CITY will submit bills in a consistent periodic sequence (monthly, quarterly, semiannually, or annually). Bills for less than $500 shall not be submitted more than once each quarter. Bills must be submitted promptly following close of corresponding billing period and should be coded according to the Caltrans HM Program Code as outlined in this Agreement. Bills submitted for periods prior to the last fiscal year will be deemed waived and not be honored.

Equipment shall be charged at mutually acceptable rental rates and labor and material at actual cost. The CITY will be allowed to recover overhead and administrative costs only to the extent that such charges include applicable expenses incurred by the CITY in the execution of the work. Said factors and method shall be subject to approval by the STATE.

Maintenance services provided by contract or on a unit-rate basis with overhead costs included shall not have these above-mentioned charges added again. An actual handling charge for processing this type of bill will be allowed the CITY.

Emergency and storm repairs performed by the CITY will be paid for only with prior approval of the STATE's Maintenance Manager of that specific area. In addition, the CITY should immediately notify the STATE's Maintenance Manager for the area of any storm damage or other emergency condition affecting the STATE highway.

The CITY shall maintain, on a generally accepted accounting basis, complete and accurate records that support all billings. These records shall be made available to STATE representatives for review during normal business hours for a period of three (3) years after payment of said billings.

J. TERM OF AGREEMENT:

This Agreement shall become effective July 1. 1998 and shall remain in full force and effect until amended or terminated.

This Agreement may be amended or terminated at any time upon mutual consent of the parties thereto. This Agreement also may be terminated by either party upon thirty (30) days' notice to the other parties.
7 252 of 763
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written.

CITY OF SAN MATEO
Approv!Jd as to form and Procedure:

City AMrney
8 STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

JAMES VAN LOBEN SELS
Director of Transportation
By:
~~~·0tb~g GLENN E. BEHM Date
District Division Chief
Maintenance
253 of 763

EXHIBIT A
Maintenance and Operation of Traffic Signals and Intersection Lighting by CITY for STATE in Accordance with the
Agreement for Maintenance of State Highways in the City of San Mateo AGREEMENT EFFECTIVE JULY 1. 1998
ROUTE POSTMILE INTERSECTION KAlE EQUIPMENT INT OR POLE NO. UNITS % STATE EQUIV UNIT 82 8.60 Forty-Third Avenue 2A 150W HPS 9404, 9406 2.00 66.6667 1.3333 meter Signals-TA State Maintained 50.0000
82 8.95 Thirty-Ninth Avenue 2A 150W HPS 531,689 2.00 66.6667 1.3333 82 9.01 Thirty-Eighth Avenue 2A 250W HPS 530,9387 2.00 66.6667 1.3333 82 9.10 Thirty-Seventh Avenue 2A 400WMV 2572,2573 2.00 50.0000 1.0000 meter Signals-TA State Maintained 50.0000
82 9.16 Thirty-Sixth Avenue 2A 150W HPS 9380 1.00 66.66&7 0.6667 82 9.33 Hillsdale Boulevard 2A 250W HPS 15385D, 15384, 16377B, 4.00 100.0000 4.0000 15386, 16388, 16389, 16390
2A 100W HPS 16361,16362, 16363, 16364 6.00 100.0000 6.0000 2A 250W HPS 16372B, 16386, 16376B 1.00 50.0000 0.5000
meter Signals-TA 50.0000
82 9.56 Thirty-First Avenue 2A 200W HPS 17671 1.00 50.0000 0.5000 2A 250W HPS 2574,2575,2576,2577 4.00 50.0000 20000
82 9.77 Twenty-Eighth Avenue 2A 200W HPS 9363 1.00 666667 0.6667 82 9.85 Twenty-Seventh Avenue 2A 250W HPS 24216, 9385 2.00 50.0000 1.0000 meter Signals-TA State Maintained 50.0000 O.oooq
82 10.02 Twenty-Fifth Avenue 2A 200W HPS 918 1.00 50.0000 0.5000 2A 250W HPS 2580,2581 2.00 50.0000 1.0000
meter Signals-TA State Maintained 50.0000
82 10.06 Twenty-Fourth Avenue 2A 200W HPS 9354 1.00 66.6667 0.6667 82 10.13 Twenty-Third Avenue 2A 200W HPS 9351,9352 2.00 66.6667 1.3333 82 10.19 Twenty-Second Avenue 2A 200W HPS 9347,9348 2.00 66.6667 1.3333 82 10.30 Twenty-First Avenue 2A 150W HPS 9344 1.00 66.6667 0.6667 82 10.37 Twentieth Avenue 2A 150W HPS 12974 1.00 50.0000 0.5000 2A 250W HPS 24218 1.00 50.0000 0.5000
meter Signals-TA State Maintained 50.0000
82 10.72 Seventeenth Avenue 2A 250W HPS 19076, 19077 2.00 50.0000 1.0000 2A 400W HPS 19078 1.00 50.0000 0.5000
meter Signals-TA State Maintained 50.0000
82 10.76 Borel Avenue 2A 200WHPS 19024 1.00 66.6667 0.6667 82 10.82 Sixteenth Avenue 2A 200W HPS 9329, 9330 2.00 66.6667 1.3333 82 10.89 Fifteenth Avenue 2A 200W HPS 9326,9327 2.00 666667 1.3333

Page 1 of 3 ends

254 of 763

EXHIBIT A
Maintenance and Operation of Traffic Signals and Intersection Lighting by CITY for STATE in Accordance with the
Agreement for Maintenance of State Highways in the City of San Mateo 82 10.93 Barneson Avenue 2A 250W HPS 2586 1.00 66.6667 0.6667 meter Signals-TA State Maintained 66.6667
82 10.95 Fourteenth Avenue 2A 250W HPS 23502 1.00 66.6667 0.6667 82 11.01 Thirteenth Avenue/Madison Avenue 2A 250W HPS 23498 1.00 66.6667 0.6667 2A 250W HPS 23501 1.00 66.6667 0.6667
82 11.07 Twelfth Avenue/Hobart Avenue 2A 400W HPS MS4-21, MS4-22 2.00 500000 1.0000 meter Signals-TA State Maintained 50.0000
82 11.13 Eleventh Avenue/Avila Road 2A 250W HPS 23492,23494 2.00 50.0000 1.0000 82 11.19 Tenth Avenue/Seville Way 2A 250W HPS 23490 1.00 500000 0.5000 82 11.28 Hayward Avenue/Aragon Boulevard 2A 250W HPS 9312,9313 2.00 50.0000 1.0000 82 11.36 Ninth Avenue 2A 250W HPS 2589,2590 2.00 66.6667 1.3333 meter Signals-TA State Maintained 50.0000
82 11.51 Mission Drive 2A 250W HPS 15342 1.00 66.6667 0.6667 82 11.59 Fifth Avenue 2A 250W HPS 2591,2594 2.00 50.0000 1.0000 meter Signals-TA State Maintained 50.0000
82 1165 Fourth Avenue 2A 250W HPS 2595,2597 2.00 50.0000 1.0000 meter Signals-TA State Maintained 50.0000
82 11.71 Third Avenue 2A 250WHPS 2598,2601 2.00 50.0000 1.0000 meter Signals-TA State Maintained 50.0000
82 11.74 Arroyo Court 2A 250W HPS 9300 1.00 500000 0.5000 82 11.78 Second Avenue 2A 250W HPS 24219,2603 2.00 66.6667 1.3333 meter Signals-TA State Maintained 66.6667
82 11.84 Crystal Springs Road 2A 250W HPS 2604, MS4-10 2.00 66.6667 1.3333 meter Signals-TA State Maintained 66.6667
82 11.92 Baldwin Avenue/Baywood Avenue 2A 250W HPS 2606, 2607 2.00 50.0000 1.0000 meter Signals-TA State Maintained 500000
82 11.98 Saint Matthews Avenue 2A 400WMV 9292 1.00 66.6667 0.6667 82 12.07 Tilton Avenue/EI Cerrito Avenue 2A 250W HPS 2608,2609 2.00 50.0000 1.0000 meter Signals-TA State Maintained 500000
82 12.20 Monte Diablo Avenue 2A 400W HPS 9285,9286 2.00 666667 1.3333 82 12.32 East Santa Inez Avenue 2A 200W HPS 9251,9280 2.00 66.6667 1.3333 82 12.35 West Santa Inez Avenue 2A 200WHPS 9279 1.00 66.6667 0.6667 82 12.42 West Poplar Avenue 2A 250WHPS 2610,2611 2.00 66.6667 1.3333 meter Signals-TA State Maintained 50.0000
82 12.51 Hilltop Road 2A 200W HPS 9273, 9274 2.00 66.6667 1.3333

Page 2 of 3 ends

255 of 763

EXHIBIT A
Maintenance and Operation of Traffic Signals and Intersection Lighting by CITY for STATE in Accordance with the
Agreement for Maintenance of State Highways in the City of San Mateo 82 12.64 Clark Drive South 2A 200W HPS 9268 1.00 66.6667 0.6667 82 12.72 Clark Drive North 2A 200W HPS 277 1.00 66.6667 0.6667 82 12.80 State Street 2A 250W HPS 279 1.00 66.6667 0.6667 82 12.86 Warren Road 2A 250W HPS 289, 9261 2.00 66.6667 1.3333 82 12.90 Barroilhet Avenue 2A 200W HPS 9258 1.00 66.6667 0.6667 2A 250W HPS 9259 1.00 66.6667 0.6667
82 12.95 Penninsula Avenue-Park Avenue 2A 250W HPS 16657 1.00 50.0000 0.5000 2A 400WMV MS4-0, MS4-1, MS4-2 3.00 50.0000 1.5000
meter Signals-TA State Maintained 50.0000
92 10.43 E/B Route 92 Ramps and Alameda 2A 150W HPS 22059,22060 2.00 50.0000 1.0000 De Las Pulgas 2A 250W HPS 22062 1.00 50.0000 0.5000
92 10.56 Alameda De Las Pulgas Overcrossing 2A 250WHPS 22057, 22058 2.00 50.0000 1.0000 meter Signals-TA State Maintained 50.0000
92 10.70 W/B Route 92 Ramps and Alameda 2A 250W HPS 22054,22055 2.00 50.0000 1.0000 De Las Pulgas 2A 200W HPS 22061 1.00 50.0000 0.5000
92 11.25 W/B On Ramp from Route 82 2A 250W HPS 22056 1.00 100.0000 1.0000

SUMMARY

EQUIPMENT EQUIV UNITS
100W HPS 60000
150W HPS 5.5000
200W HPS 14.1667
250W HPS 34.6667
400W HPS 28333
400WMV 3.1667

Page 3 of 3 ends

256 of 763
W
1-
" N o '" a:
>-
fZ ::;
"
o VJ
U
EL !',.::J/J///O
e IE.
...... '-0 .
...... . ..... . '<.,.

Area maintained by CITY
257 of 763
· ~(A ~e.~~.Je-! ~B r~e~e""~ 1\t~-r.r-e~J)
(A 1>/'te.J..III>Q ''* "'O, 1) II· I • '14 \
\(MENDMENT NUMBER 1

AGREEMENT FOR MAINTENANCE OF STATE HIGHWAYS

IN THE CITY OF SAN MATEO
This Amendment No. I to the Agreement for Maintenance of State Highways in the City of San Mateo is made and entered into by and between the State of California, acting by and through the Depattment of Transportation, hereinafter referred to as "STATE", and the City of San Mateo, hereinafter referred to as "CITY."
WITNESSETH:

NOW, THEREFORE, the parties agree to amend AGREEMENT as follows:

I. The attached EXHIBIT "A", noted as Amendment No. I (3 pages), hereby replaces the existing EXHIBIT A in AGREEMENT in its entirety.

2. Page 6 of AGREEMENT (Section H) is hereby rt:placed wilh the attached Section H.

3. This Amendment No. I to AGREEMENT shall become effective on November I, 2014. In all other respects, AGREEMENT shall remain in full force and effect until amended or terminated.

STATE OF CALIFORNIA DEPARTMENT

OF TRANSPORT A TON

MALCOLM DOUGHERTY
Acting Director of Transportation
·~
By ~ •
~-16-ZIJJ'/ NADER ESI-IGHIP Date
Deputy District Director
Maintenance
258 of 763
'• ":. .

AGREEMENT FOR MAINTENANCE OF STATE HIGHWAYS

IN THE CITY OF SAN MATEO
THIS AGREEMENT, made and entered into this 15th day of June 1 9...2.§.__, by and between the State of California, acting by and throu-g";-h=t:.;:h;_e __ _ Department of Transportation, hereinafter referred to as "STATE," and. the City of San Mateo, ·hereinafter referred to as "CITY."
WITNESSETH:

A. RECITALS:

The Parties desire to provide for the CITY to perform particular maintenance functions on the State highway(s) within the CITY as provided in Section 130 of the Streets and Highways Code.

B. AGREEMENT:

This Agreement shall supersede any previous AGREEMENT FOR MAINTENANCE OF STATE HIGHWAYS IN THE CITY OF SAN MATEO and/or Amendments thereto with the CITY.

In consideration of the mutual covenants and promises herein contained, it is agreed:

The CITY will perform such muintensnce work as is specifically delegated to it, on the State highway routes or portions thereof all as hereinafter described under Section H hereof or as said Section may be subsequently modified with the consent of the parties hereto acting by and through their authorized representative.

C. MAINTENANCE DEFINED:

Maintenance is defined in Section 27 of the Streets and Highways Code as follows:

Section 27. (a)
(c)
! \
The preservation and keeping of rights of way, and each type of roadway, structure, safety convenience or device, planting, illumination equipment and other facility, in the safe and usable condition to which it has been improved or constructed, but does not include reconstruction, or other improvement.

Operation of special safety conveniences and devices,
and illuminating equipment.

The degree or extent of maintenance work to be performed and the standards therefor shalf be in accordance with the provisions of Section 27 of the Streets and Highways Code, as· set forth in the· current edition of the State Maintenance manual (a copy of which has been provided to the CITY), or as may be prescribed from time to time by the District Director. "District Director," as used herein, means the District Director of the Department of Transportation assigned to the territory in which the CITY is located, or his authorized representative.

An encroachment permit will be required for third parties when maintenance work is redelegated. Such redelegated work shalf be performed at the same levels of service as specified herein and will be subject to the same random inspection as provided for work performed directly by CITY forces.

The level of service of maintenance in each of the programs delegated to the CITY has been considered in setting authorized total and route dollar amounts. The CITY may perform additional work if desired,. but the STATE will not reimburse the CITY for any work in excess of authorized dollars. The District Director may authorize adjustments needed because of inflation or changes in program emphasis.

E. LEGAL RELATIONS AND RESPONSIBILITIES:

It is understood and agreed that neither the STATE nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the CITY under or in connectio'n with any work, authority or jurisdiction delegated to the CITY under this Agreement. It is understood and agreed that pursuant to Government Code Section 895.4 CITY shall defend, indemnify and save harmless the State of California, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the CITY under or in connection with any work, authority or jurisdiction delegated to the CITY under this Agreement.
2 260 of 763
It is understood and agreed that. neither the CITY nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the ST-ATE under or in connection with any work, authority or jurisdiction delegated to the STATE under this Agreement. It is understood and agreed that pursuant to Government Code Section 895.4, STATE shall defend, indemnify and save harmless the CITY, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the STATE under or in connection with any work, authority or jurisdiction delegated to the STATE under this Agreement.

F. MAINTENANCE FUNCTIONS:

The CITY shall perform only those maintenance functions delegated, as identified, in Section H "DELEGATION OF MAINTENANCE" of this Agreement.

A brief description of those maintenance functions delegated to the CITY are included in this section. The functions are identified by the Caltrans HM Program Codes.

HM2C SLOPES/DRAINAGE/VEGETATION
This provides for cleaning, maintaining, and repairing structures, fences, and other appurtenances between the roadbed and the outer highway right-of-way boundary line. It also includes weed and brush control by chemical, biological or mechanical methods, trimming and removal of trees and pest control. The following problems are included:

1. Unpaved Shoulder Management

2. Nonlandscaped Weed Control

3. Nonlandscaped Tree/Bush/Vegetation

HM2D LITTER/DEBRIS
This provides for removal of litter and debris from roadway surfaces and roadsides. ,}hti· following problems are included:

1. Debris/Carcass Pickup

2. Litter pickup

3. Spills of non-toxic substances

Work will be performed at fourteen (14) day intervals. Call-outs will be responded to within a reasonable time or the STATE's Maintenance Manager will be notified.

1. Weed Control

2. Pruning/Thinning/Removing/Replacing

1. Maintaining Plants

2. Weed Control

3. Litter Pickup

4. Sweeping

5. Emptying Trash Cans

6. Graffiti

7. Repairing Fences

8. Repairing Bicycle Lockers

Timing sequence of traffic signals shall be determined after consultation with the CITY; h,pwever, the decision of the District Director of Transportation shall be final.

COST SHARING OF ELECTRICAL FACILITIES
The STATE will not pay for the maintenance, installation, repair, servicing, nor power for ordinary street lighting; however, lighting at intersections, which qualify as safety lighting under warrants approved/accepted by the STATE, will be paid for when approved and specifically authorized by the District Director. Where such lighting has been specifically authorized, the 4 262 of 763
maintenance and operating costs thereof shall be shared between the STATE and the CITY on a pro rata basis in the same ratio as the number of legs in the intersection under each jurisdiction bears to the total number of legs.

Every effort shall be made to restore the intersection to normal operation as soon as possible.

G. EXPENDITURE AUTHORIZATION:

A new "DELEGATION OF MAINTENANCE" sheet (Section H) wilf be provided annually by the STATE for the ensuing fiscal year, if necessary, to ensure equitable annual cost.

The expenditure per route for routine maintenance work as referred to above may be increased or decreased, redistributed between routes, or additional expenditures for specific projects may be made, when such adjustment of expenditures for routine maintenance or such specific work is authorized in writing by the District Director or his authorized representative. · Additional eti<penditures or adjustment of expenditures thus authorized shall apply during the fiscal year designated therein and shall not be deemed to permanently modify or change the basic maximum expenditure per route as hereinafter specified. An adjustment of the said maximum expenditure, either increase or decrease, shall not affect other terms of the Agreement. 5 263 of 763
EXHIBIT A AMENDMENI NO. 1
Effective November 1, 2014
H. . DELEGATION OF IVIAINTENANCE:

Route
No.

The specific maintenance function indicated below land on "EXHIBIT A") is hereby delegated to the CITY, This delegation of maintenance function set forth herein · does not include areas and functions of which the comrol and maintenance rest with the local authority under the terms of Freeway Agreements ang/or Freeway MaintemlnCe Agreements.

Length
Miles Description of Routing
Maximum
Annual
Program Authorized
DeiBgated Expenditure ·----·--.. ----------- ---------------------------~----~. 82 4..40 92 5. i 7
'I 01 5.13
r:ootnotes:
1'

2. 3.
4-.

EI Caml:n-o Real from south c1ty limits at 43rd
Avenue to north C'ity limits tit-Peninsufa Avenue;
HM2C $ 0.00
a length of 4.40 n1lles, of which half widtl11"rom
Bwroilhct Avenue to Pe-ninuul~ Avenue, n length
of 0.06 mile, lies within the CITY.

HM20 40,000 .. 00
HM2E 0.00
HIVI4.K 12,000.00
(Footnotes 1, 2, 3)
Total Authorized Route 82 $
J, Arthur Younger F·reeway ·from wesr city !tmits
near Ralston PolheiTJUS Road Overctd::.sing to city
fim1ts 2,320 feGt west ol ~OSter CitY Boulevard
Ovf:rcrossing, t1 lt!rldth of 5.17 tniles,
HM4K
Total Authorized Route 92
8ayshoro f:reewoy from city !irnlts 2,175 feet
nof't'h of Ralston Avenue Overc·ros~in_g to north
city limits -2, lOO feet t1orth of Peninsura Avenue
Overcro.ssing, (l hmgth of 5. '13 miles,
{FocHhote 4)
HM2G
$
Total Authorized Route 101 $
TOTAL AUTHORIZED AMOUNT $
52,000.00
4,650.00
4,6&0.00

0.00 0.00
56,650.00
Le~gth of ztreet to be cleaned- 16,9 ourb-rniles
CITY will m.a-l'nti:lirl; at Ci-TY expense, aH portions or tho Hill.sclale BoulovarcJ strur;ture t:tcros.S El Camino Ileal abovn the b(idge deck fSce E;xhibit BJ, CITY vJtlf mrih)ta!n median land-scapin~l at CITY expense, CITY will maintain, at CITY expense, the pork-anti-ride lot located on the Mrthbountl sldo of Houte 101 ot Third Avenue.
264 of 763
I
I. SUBMISSION OF BILLS:

Equipment shall be charged at mutually acceptable tental rates and labor and material at actual cost. The CITY will be allowed to recover overhead and administrative costs only to the extent that such charges include applicable expenses incurred by the CITY in the execution of the work. Said factors and method shall be subject to approval by the STATE.

J. TERM OF AGREEMENT:

This Agreement shall become effective ,July 1, 1998 and shall remain in full force and effect until amended or terminated. ·
This Agreement may be amended or terminated at any time upon mutual consent of the parties thereto. This Agreement also may be terminated by either party upon thirty (30) days' notice to the other parties.
7 265 of 763
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written.

CITY OF SAN MATEO
Approv<Jd as to form and Procedure:

City Att6rney
8 STATE OF CALIFORNIA

DEPARTMENT OF TRANSPORTATION

JAMES VAN LOBEN SELS
Director of Transportation
By:
~ ~ f1L.__.<¥J¢g
GLENN E. BEHM Date
District Division Chief
Maintenance
266 of 763

ROUTE POST- INTERSECTION
MILE
82 8.60 Forty- Third Avenue
82 8.95 Thirty-Ninth Avenue
82 9.01 Thirty-Eighth Avenue
82 9.10 Thirty-Seventh Avenue
82 9.16 Thirty-Sixth Avenue
82 9.33 Hillsdale Boulevard
82 9.56 Thirty-First Avenue
82 9.77 Twenty-Eighth Avenue
82 9.85 Twenty-Seventh Avenue
82 10.02 Twenty-Fifth Avenue
82 10.06 Twenty-Fourth Avenue
82 10.13 Twenty-Third Avenue
82 10.19 Twenty-Second Avenue
82 10.30 Twenty-First Avenue
82 10.37 Twentieth Avenue
82 10.72 Seventeenth Avenue
82 10.76 Borel Avenue
82 10.82 Sixteenth Avenue
82 10.89 Fifteenth Avenue

Page 1 of 3 ends

EXHIBIT A
Maintenance and Operation of Traffic Signals and Intersection Lighting By CITY for STATE in Accordance with the
Agreement for Maintenance of State Highways in the City of San Mateo AGREEMENT EFFECTIVE JULY 1, 1998-Amended #1 __ 2014
RATE EQUIPMENT INT OR POLE NO. UNITS %STATE
2A 150W HPS 9404,9406 2.00 66.6667%
meter Signals-TA State Maintained 50.0000%
2A 150W HP5 531, 689 2.00 66.6667%
2A 250W HPS 530,9387 2.00 66.6667%
2A 200W HPS 2572,2573 4.00 50.0000%
meter Signals- TA State Maintained 50.0000%
2A 137 LED 9380 4.00 66.6667%
2A 250W HPS 15385D,15384,16377B, 4.00 100%
15386, 16388, 16389,
2A 100W HPS 16390, 16361, 16362, 6.00 100%
2A 250W HPS 16364,163728,16386, 1.00 50.0000%
meter Signals- TA 163768 50.0000%
2A 200W HPS 17671 1.00 50.0000%
2A 250W HPS 2574,2575,2576,2577 4.00 50.0000%
2A 200W HPS 9363 1.00 66.6667%
2A 200W HPS 24216, 9385 4.00 50.0000%
meter Signals-TA State Maintained 50.0000%
2A 200W HPS 918 1.00 50.0000%
2A 250W HPS 2580,2581 2.00 50.0000%
meter Signals- TA State Maintained 50.0000%
2A 200W HPS 9354 1.00 66.6667%
2A 200W HPS 9351,9352 2.00 66.6667%
2A 200W HPS 9347,9348 2.00 66.6667%
2A 150W HPS 9344 1.00 66.6667%
2A 150W HPS 12974 1.00 50.0000%
2A 250W HPS 24218 1.00 50.0000%
meter Signals- TA State Maintained 50.0000%
2A 200W HPS 19076,19077,19078 6.00 50.0000%
meter Signals- TA State Maintained 50.0000%
2A 200W HPS 19024 1.00 66.6667%
2A 200W HPS 9329,9330 2.00 66.6667%
2A 200W HPS 9326,9327 2.00 66.6667%

EQUJV UNIT NOTES

1.3333

2.0000

2.6667

4.000

6.0000

0.5000

2.0000

0.6667

2.0000

0.0000

0.5000

1.0000

0.6667

1.3333

0.6667

0.5000

3.0000

0.6667

1.3333

1.3333
267 of 763
82 10.93
82 10.95
82 11.01
82 11.07
82 11.13
82 11.19
82 11.28
82 11.36
82 11.51
82 11.59
82 11.65
82 11:11
82 11.74
82 11.78
82 11.84
82 11.92
82 11.98
82 12.07
82 12.20
82 12.32

EXHIBIT A
Maintenance and Operation of Traffic Signals and Intersection Lighting By CITY for STATE in Accordance with the
Agreement for Maintenance of State Highways in the City of San Mateo .

Barneson Avenue 2A 250W HPS 2586 3.00 66.6667
meter Signals-TA State Maintained 66.6667
Fourteenth Avenue 2A 250W HPS 23502 1.00 66.6667
Thirteenth Avenue/Madison 2A 250W HPS 23498 1.00 66.6667 Avenue 2A 250W HPS . 23501 1.00 66.6667
Twelfth Avenue/Hobart 2A 400W HPS MS4-21, MS4-22 2.00 50.0000 Avenue meter Signals- TA State Maintained 50.0000
Eleventh Avenue/Avila Road 2A 250W HPS 23492, 23494 2.00 50.0000 Tenth Avenue/Seville Way 2A 250W HPS 23490 2.00 50.0000 Hayward Avenue/Aragon Blvd. 2A 2SOW HPS 9312,9313 2.00 50.0000 Ninth Avenue 2A 250W HPS 2589,2590 2.00 66.6667
meter Signals- TA State Maintained
Mission Drive 2A 2SOW HPS 15342 1.00 66.6667
Fifth Avenue 2A 200W HPS(2) 2591,2594 4.00 50.0000
&137LED (2)
meter Signals- TA State Maintained 50.0000
Fourth Avenue 2A 200W HPS(2) 2595,2597 4.00 50.0000
&137LED (2)
meter Signals- TA State Maintained 50.0000
Third Avenue 2A 200W HPS 2598,2601 4.00 50.0000
meter Signals- TA State Maintained 50.0000
Arroyo Court 2A 250W HPS 9300 1.00 50.0000
Second Avenue 2A 250W HPS 24219, 2603 2.00 66.6667
meter Signals- TA State Maintained 66.6667
Crystal Springs Road 2A 250W HPS 2604, MS4-10 2.00 66.6667 meter Signals- TA State Maintained 66.6667
Baldwin Avenue/Baywood 2A 250W HPS 2606,2607 2.00 50.0000 Avenue meter Signals- TA State Maintained 50.0000
Saint Matthews Avenue 2A 400WMV 9292 1.00 66.6667
Tilton Avenue/EI Cerrito 2A 250W HPS 2608,2609 2.00 50.0000 Avenue meter Signals- TA State Maintained 50.0000
Monte Diablo Avenue 2A 400W HPS 9285,9286 2.00. 66.6667 East Santa Inez Avenue 2A I 200W HPS 9251,9280 2.00 66.6667 --- 2 2.0000 •

0.6667

1.0000

1.3333

0.6667

2.0000

2.0000
.

2.0000

0.5000

1.3333

1.0000

0.6667

1.0000

1.3333 i

1.3333 I
268 of 763
82 12.35 West Santa Inez Avenue
82 12.42 West Poplar Avenue
82 12.51 Hilltop Road
82 12.64 Clark Drive South
82 12.72 Clark Drive North
82 12.80 State Street ·
82 12.86 Warren Road
82 1 12.90 Barroilhet Avenue
82 1 12.95 Peninsula Avenue- Park
Avenue
92 1 1o.43 E/B Route 92 Ramps and
Alameda De Las Pulgas
92 10.56 Alameda De Las Pulgas
Overcrossing
92 10.70 W/B Route 92 Ramps and
Alameda De Las Pulgas
92 11.25 W /B On Ramp from Route 82

EXHIBIT A
Maintenance and Operation of Traffic Signals and Intersection Lighting By CITY for STATE in Accordance with the
Agreement for Maintenance of State Highways in the City of San Mateo 2A 200WHPS 9279 1.00 66.6667
2A 250W HPS 2610,2611 2.00 66.6667
meter Signals- TA State Maintained 50.0000
2A 200W HPS 9273,9274 2.00 66.6667
2A 200W HPS 9268 1.00 66.6667
2A 200W HPS 277 1.00 66.6667
2A 250W HPS 279 1.00 66.6667
2A 250W HPS 289,9261 2.00 66.6667
2A 200W HPS 9258 1.00 66.6667
2A 250W HPS 9259 1.00 _:_ 66.6667
2A 250W HPS 16657 1.00 50.0000
2A 400WMV MS4·0, MS4·1, MS4-2 3.00 50.0000
meter Signals -TA State Maintained 50.0000
2A 150W HPS 22059,22060 2.00 50.0000
2A 250W HPS 22062 1.00 50.0000
State Maintained
2A 250W HPS 22057, 22058 2.00 50.0000
meter Signals -TA State Maintained 50.0000
2A 250W HPS 22054,22055 2.00 50.0000
2A 200W HPS 22061 1.00 50.0000
State Maintained
2A 200W HPS 22065 3.00 100.000
State Maintained
3 0.6667

1.3333
I

1.3333 I

0.6667

0.6667 I

1.3333 I

0.6667

0.5000

1.5000

1.0000 All SR92 are State

0.5000 Maintained, except
for 1 double arm pole

1.0000 in middle of island
which is connected to

1.00000 City of San Mateo

0.5000 circuit.

3.0000
269 of 763
..
w .
~
;!i
f- "' "' U1
0 a.
i/) I ! j'i I . I ' / .......... : .: ............... .i,i /""'' ........... ri ........... ''"'11 ~-~::: :-:-.::.:}: ~:.:::.:::'::::::\\ Jj...... .. .... ;. I . .. .. . " I-lo.u
f- N
0 " "' 0:
- l1:
z ::;:
" on 0
u
r- - 1-
u
a: .,. fU1
Ci
l-'-
-=
-
-<?'
\:·~··············•········::··:··:In:~:·• ~

EL CAMINO
'/ . J .. .. . "- . . " .... . . 'I'I . i!
!1 ::1/[Ti:{:_~ 1\ : ·-:> :.JI/':~f
~~~ ~=~ R TE. C2
.,. 1. ........... . /····· , .. , .... . ,!'::::::::::::::: ::::: ': \ --,cr=::::::===::;\1i~)t~~······ . '..... :\
''
,..--.....__
/ '.

I \ ------------' l
1 Area maintained by CITY ::-:-:-::--:-:-:-:;
Ill
!:::

OJ
:t:
>< w
270 of 763
271 of 763
272 of 763
273 of 763
274 of 763
275 of 763
276 of 763
277 of 763
278 of 763
279 of 763
280 of 763
281 of 763
282 of 763
283 of 763
284 of 763
285 of 763

ORIGINAL
AMENDMENT NUMBER 3

AGREEMENT FOR MAINTENANCE OF STATE HIGHWAYS

IN THE CITY OF SAN MATEO
This Amendment No. 3 to the Agreement for Maintenance of State Highways in the City of San Mateo is made and entered into by and between the State of California, acting by and through the Department of Transportation, hereinafter referred to as "STATE", and the City of San Mateo, hereinafter referred to as "CITY".

WITNESS ETH:

WHEREAS, an Agreement for Maintenance of State Highways in the City of San Mateo, hereinafter referred to as "AGREEMENT", as provided for in Section 130 of the Streets and Highways Code, was executed on June 15, 1998, and
WHEREAS, the AGREEMENT by its terms provides that it may be modified or amended at any time upon mutual consent of the parties, and
WHEREAS, the AGREEMENT was amended by the parties on December 15, 2014, with an effective date of November 1, 2014 (Amendment 1 ), and
WHEREAS, the AGREEMENT was further amended by the parties on January 21, 2016 (Amendment 2), and
WHEREAS, the parties hereto now desire to that AGREEMENT be further amended.

NOW, THEREFORE, the parties agree to amend AGREEMENT as follows:

1. The attached EXHIBIT A hereby replaces the existing EXHIBIT A as modified by Amendment 2 in its entirety.

2. The attached EXHIBIT C is hereby incorporated into AGREEMENT;

3. Page 6 of AGREEMENT (Section H) is hereby replaced with the SECTION H ih its entirety.

4. This Amendment No. 3 to AGREEMENT shall supersede all previously approved Amendments.

5. This Amendment No. 3 to AGREEMENT shall become effective on July 17, 2017. In all other respects, AGREEMENT shall remain in full force and effect until amended or terminate

STATE OF CALIFORNIA DEPARTMENT OF

TRANSPORTATION

MALCOLM DOUGHERTY
Director of Transportation
eputy District Director, Maintenance
286 of 763
•: ....

AGREEMENT FOR MAINTENANCE OF STATE HIGHWAYS

IN THE CITY OF SAN MATEO
THIS AGREEMENT, made and entered into this~ day of june 1

19...2.!L._, by ahd between the State of California, acting by and. through the )· Department of Tran.sportatio.n, hereinafter referred to as "STATE/ and the CitY of San Mateo, ·hereina.fter referred to as ''CITY."
WITNl:SSETH:

A. RECITALS:

The Parties desire to provide for t~e CITY ~o perform particular maintenance functions oh .the State hlghway(s) within the CITY as provided in Section 1 $0 of the Strel:lt.s and Highways Code,
B. AGREEMENT,:

This Agreement shan supersede any previous AGREEMENT FOR MAINTENANCE OF STATE.HIGHWAYS IN THE PITY bf SAN MArEo and/or Amendments thereto with the CITY. ·
In consideration of the mutuaJ covenants and promises herein contained, it is agreed: ·
The CITY will perform such maintenance work eis ls i,peclfically delegated to it, on the State highway routes or portions thereof all as hereinafter described under Section H hereof or as said Sectlon may be subsequently modifiep with th.e conseht of the parties hereto acting by and through their authorized repre::;entative.

C. MAINTENANCE DEFINED:

Maintenance Is defined in Section 27 of the Streets and Highways Code as follows: ·
Section 27. (a)
. ,•, (.., ,,·,
.. (bl
(c)
The preservation and keeping of rights of way, and each type of roadway, structure, safety convenience or device, planting, illumination equipment and other facility, In the safe and usable condition to which It has been improved or constructedr but does notlnolude reconstruction, or
other Improvement .

Operation of special safety'convenlences and devices,.
and illumlnating e.qulpment.

The spl!Joial or emergency maintenance or repair
necessitated b'y accidents or by $forms or other weather conditions, slides, settlements or other unusual or
unexpected damage to a roadway, structure or facility.
287 of 763
t'
D. DEGREE OF MAINTENANCE:

The degree or extent of maintenance work to be performed and the standards therefor shall be in accordanqe With the provisions of Section 27 of the Streets and Highways Code, as· set forth in the· current edition of the S.tate Maintenance manual (a copy of which has been provided to the CITY), or as may be prescribed from time to time by the District Director. "District Director/ as used hE:1rein, means the District Director of the Department of Transportation assigned to th.e territory in Which the CITY ls located, or his authorized representativEl.

T11e· ST A TE reserves the option to lnspect at random all areas of State Highways maint$lhed by the CITY to assµre 9onformance to maintenance levels. Failure of the CITY to comply with. the mt'lin.tenan.oe 1.evels would be reason to termlnatE:l this agreement as specified under S~ction J "Term of Agreement/' However, this random inspection does not preempt the CITY's maintenance responsibilities as specified ih this Agreement.

An encroachment pertrlit will be required for thfrd parties when maintenance work is reclelegated. Such redelegated work shall be performed at the same levels of serviot;l as spEJcified h~rein arid will !:>e subject to th.e same r~ndom Inspection as provided for work perfonned directly by CITY forces.

The level pf service ()f maintenance In each of th.e programs delegated to the CITY has been co,:isic(ere·d in. setting .authorized total and route .dollar amounts. The CITY 111ay perform l'l#ditl<>nal Work if desired, but·the STATE Will riotre1rriburse the CITYfor arty work in 6XC6$S of authorized dollars. The District Direi;;tor may authorize adjustments needed because of inflation or changes fn. program ernphasis. · ·
E. LEGAL RELATIONS AND RESPONSIBILITIES:

Nothing in th.e provisions of this Agreement is intended to create duties or obligations tq or rights In third parties riot parties to this contract or affect the legal liability of either partY to the cbhtr'act by imposing. any standard of care respecting the maintenance of State highways different from the standard Of care impo'sed by law.

It is understood and agreed that neither the STATE nor any officer or employee thereof is responsibl~ for any damage or liability occurring by reason of anything done or omitted to be done by the CITY under or in cohnectio'n with any work, authority or jurisdiction delegated to the CITY under this Agreement. It Is understood and agreed that pursuant to Government Code Section 895.4 CITY shall defend, indemnify and save . harmless the State of California, all officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by the CITY under or in connection with any work, authority or jurisdiction delegated to the CITY under this Agreement.

2. 288 of 763
It is understood and agreed that.neither thl';l CITY nor any officer or employee thereof is responsible for any damage or liability oqourring b'y reason of anything d<.m~ or omitted to .be done by the ST-ATE under or i.h connection with any work, a1,1thority or jurisdictioh delegated to the STATE under this Agreement. It is understood and agreed that pursuant to Govemm.ent Code Section 895.4, STATE $hall defend,Jnclemnify and savi9 harmless the CITY, all officers and employees from all clEJims, suits ora.ctions of every name, .kind and description brought for or on account of injuries to or cleat!') of any person or .damage to property resulting from ariything do.ne cir omitted to be done by the STATE uhoer or in connect,lon with any work, authority or · Jurisdiction delegat~d to the STATE under this Agreement. · F. MAINTENANCE FUNCTIONS:

The CITY shall perform only those mi:!lnt.enance functions, delegated, as identified, ln Section H uDELEGATION OF MAINTENANCE" of this Agreement. · · · · · ,
· A brief description of thos.e m.aintenance functions :delegated to the CITY are· irwfu.ded in thfs ~action. The functions are identified by the Caltrans HM Program Codes.

HM2C SLOPES/DRAll'JAGENEGETATION
This provides for cleaning; maintaining, aqd repairing $tructures1 .fences, and 0th.er appt.irtE;Jtiance.s beJWeeo the roadbed and the ollter highway . . . right-c;>f-way bound?trY fine •. Jt i3lso includes we.ad and brush contr.oJ by chemical, biological or mechanical methpds, trimming and removal of trees and pest control. The following problems are included:

1. Unp~ved $houlder Management

2. Nonlandscaped Weed Control

3. Nonlandscaped Tree/Bush/Vegetation

4. Fence Repair
The OITY lf{ill act as agent for the $TATE to notify abutting property owners of deficiencies In the sidewal.ks 1=1h.d request owners to r'nake the neqessary repairs, or, furnish names and adqresses of those owners.· HM2D LITTER/DEBRIS
this provides for rl:lrnoval of litter ai"1d debris from roadway surfaces and roadsides. Th(} following problems. are included: .. .
1 . Debris/Carcass Pickup

2. U.tter pickup

3. Spills of non-toxic substances

4. Sweeping ·
Unless CITY itself is negligent, the STATE will, not withstanding the provisions of Section E, defend, indemnify and save harmless the CITY against claims for this function (HM2D Utter/Debris) if work meets the 3 289 of 763
·-
following crheria:

Work will be performed at fourteen (14) day Intervals. Call-outs will be responded to within a reasonable time or the STATE's Maintenance Manager will be notified.

HM2E LANDSCAPING
1his provides for watering, fertilizi~g, removal of shrubs, and control of weeds in plcJnted art:tas. It also inch.id~s trimming, removal, and spraying of trees, replacement of plal)ts, shrubs, an.cl tr.ees, and pest control ih planted areas. The following problems are incli.1ded: · .
1, Weer) Control

2. Prqr'ilng/Thinning/Removing/Replaclng 3. Irrigation · ·· · HM2G PUBLIC FACILITIES
This provid~s for work to provide a clean anc/ a~tractive appearance for park., and-ride lots. Mc!intenance Qf appurtenahces such E!r$ roadway surfa~ing, signs, pavement mar~ir,gs, and el.ectrical installations are ta be included in this program. The. folfowing problems are also included:

1. Maint,iining Piants

2. Weeq Control

3. Litter f'ickup

4. Sweeping

5. Emptying Trash Cans

6. Graffiti

7. Repairing Fences . ,

8. Repairing Bicycle Lockers
e.. lrri~atiori
HM4K ELECTRICAL
This includes maintenance work performed on highway electrical facilities. irtcludtng flashing beacons, traffic signals, traffic~signal systems, safety lighting and sign lighting. It also includes the electdcal energy for these . items. ' Timing seq~ence of traffic signals shall be determined after consultation with the CITY; h.owever, the decision of the District Director of Transportation shall be final. ·· ·

COST SHARING OF ELECTRICAL FACILITIES
The STATE will not pay for the maintenance, installation, repair, servicing, nor power for ordinary ~meet lighting; however, lighting at intersections, which qualify as safety lighting under warrants approved/accepted by thEJ ST ATE, will be paid for when approved and specifically authorized by the District Director. Where such lighting hE!s been specifically authorized, the 4 290 of 763
maintenance and operating costs thereof shall be shared between the STA TE and the CITY on a pro rata basis in the same ratio as the numqer of legs in · the intersection iJrider each jurlsdict!on bears to the total number of legs.

The cost of maintaining traffic signals or other electrically operated traffic contrdl d.evices nolJY in place or those Which may hereafter be instalied at the intersection of aiiy STA TE highway roLJte and any CITY street/road shall be shared between the STATE and tf)e CITY_ on a pro rnta basis in the same ratio as the number of legs in the intersection \Jhder each Jurisdiction bears to the total number of l~gs. The same principle of oost distribution shall apply to freeway interqhanges. The participation ratio shall lJe based on the ratio of the number. ~f legs of the respective agencies tQ the total number of leigs of the intersection.

EMERGENCY OPERATION OF TRAFFIC s·1GNALS
Fla~hlng operation sh~II be copsidered J1s the ,;primary emergency mode of operation at air intersections." Red/Yellow or all red may be used, as determined by STA TE, .

Every effort shall be made to restore the in(ersection to normal operation as· soon Ets po~sib!e,
G. EXPENDITURE AUTHORIZATION:

The STATE wHI reimburse the CITY for actual cost of aU routine maintenance work performed by CITY ~s d¢(egated under Sectiori H of this Agreement, but .is agreed that during any fi$cii!I year, the maximum experiditure on any route l:lha!l not .exceed the amount as slibW.n on Section H of .this Agrel;iment, unless 5,Uch expenditure is revised by an amende.d Agreement or otherwise adjusted or modified as heri:1inafter provided for.

A heW "DELEGATION OF MAINT~NANCE;' sheet .(Section H) will be provided annually PY the STATE for the ensuing fiscal yeer, If necessary, to ensur~ equitable c!nnLJa! cost; . .

The expenditure per route for rdµtine n:,aintenance work as referred to above .may be increased or decreased, redistributed between routes, or .additional expenditures for specific projects may be made, When $Uch adjustment of expenditures for routine maintenance or such specific Work is authorized in writing by the District Pirector or his authorized representative.

Ad.clitiona! Ei,Xpenditur~s or adjustment of expenditures thus authorized shall apply during the fiscal year designated therein and shall not be deemf;!c:I to permanently modify or change the basic maximum expenditure per route as hereinafter specified. An adjustment of the said maxiinum expenditure, either increase or decrease, shall not affect other terms of the Agreement. 5 291 of 763
H. DELEGATION OF MAINTENANCE:

See Exhibit A: Delegation of Maintenance
6 Amendment No. 3
Effective: 7-~ 17-,3.0(7·
292 of 763
I. SUBMISSION OF BILLS:

The CITY will submit bills in a consistent periodic sequence (rnonthly, qvarterly, semiannually, or annually). Bills for less than $500 shall not be submitted more tha~ once each quarter •. Bius h}ust be submitte-d promptly following close of corresponding billing period and should be coded according to the Caltrans HM Program Code as outlined fn this Agreement. Bills submitted tor periods prior to the fa~t fiscal year win be deemed waived and not l;Je hqnored. · · Equiprnei:lt shall be charged at mutually acceptabietental rat1;1s and labor and mater\ai at actual ¢Cist. The CITY wlU be allowed to recover overhf!ad and adrnini$trative costs only to the extent tha~ such charges include aµ,plicaple · ¢'Xpi,mses incurred by the CITY in the execution of the work. Sald factors and method shall be subject to approval by the STATE, ·
Maintenance services provided by \:Ontract or on~ l!nit,r'ai:e basi$ with·oVerhead costs included shall not hay~ these above-mentioned charges added again. An . actual handling char,ge for processing this type of bill.will be c.illowed the CITY, Emergency and storm repair~ performed by the CITY will pe paid for only with prior a'pproval of the STATE's Maint13nance Manager of i:hat sp$cjfic area'. In addition, the CITY should ifr)madiafoly !i<>tify the STATE's Maintenanq¢ Manager for the area of any storm damage or other emerg$1ioY condition affecting the ST ATE highway.

The ClTY shall maintain; on a generally accepted accounting basis, comple'te and accurate records that support all billings, These records shali be made available to St A 1:E representatives for r(:lvjevv c!uring normal business hours for a period of three (3) year.s after payment ofsaid blUings.

J. TERM OF AGREEMENT:

This Agreement shall become effective July 1, 1998 and shall remain in full force and effect until amended orterrnini)ted. · ·
This Agreement may be am~nded or terminated at any time upon mutual consent of the parties the.reto. This Agr\:lement also may be terminated by either party upon thirty' (30) days' notice to the other parties. ·
7 293 of 763
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. ·

CITY OF SAN MATEO
ApprovC1d as to forrn and Procedure:
·1~r.6 ~~ .. City AMrney
8 STATE OF CALIFORNIA.

DEPARTMENT OF TRANSPORTATION

JAMES VAN LOBEN SELS
Direct.or of Transportation
By:
~ ~ GJt,y-b/,z~j
GLENN E. BEHM Date
District Division Chief
Maintenance
294 of 763
Amendment No. 3
Effective: 7~17--~017

EXHIBIT A
H. DELEGATION OF MAINTENANCE:

The specific maintenance function indicated below {and on "EXHIBIT A") is hereby delegated to the CITY. This delegation of maintenance function set forth herein does not include areas and functions of which the control and maintenance rest with the local authority under the terms of Freeway Agreements and/or Freeway Maintenance Agreements.

Maximum
Annual
Route Length Program Authorized
No. Miles Description of Routing Delegation Expenditure 82 4.40 El Camino Real from south city limits at 43rd Avenue to north city limits HM2C $0.00 92 5.17
101 5.13
at Peninsula Avenue; a length of 4.40 miles, of which half width from HM2D 40,000.00 Barriolhet to Peninsula, a length of 0.06 mile, lies within the CITY. HM2E 0.00 (Footnotes 1, 2, 3, 5)
J. Arthur Younger Freeway from west city limits near Ralston Polhemus Road Overcrossing to city limits 2,320 feet west of Foster City Boulevard Overcrossing, a length o_f 5.17 miles.

Bayshore Freeway from city limits 2,175 feet north of Ralston Avenue Overcrossing to north city limits 2,100 feet north of Peninsula Avenue Overcrossing, a length of 5.13 miles.
(Footnote 4)
HM4K 12,000.00
Total $52,000.00
Authorized
Route 82
HM2C
HM2E
HM4K
$0.00

0.00 4,650.00
Total $4,650.00
Authorized
Route 92
HM2G $0.00
'"'~µµµ•-•--•"-~µM',,-m-,-
Total $0.00
Authorized
· Route 101
TOTAL AUTHORIZED AMOUNT $56,650.00
Footnotes:

1. Length of street to be cleaned - 16.9 curb-miles

2. CITY will maintain, at CITY expense, all portions of the Hillsdale Boulevard structure across El Camino Real above the bridge deck (Exhibit B).

3. CITY will maintain median landscaping at CITY expense.

4. CITY will maintain, at CITY expense, the park-and-ride lot located on the northbound side of Route 101 at Third Avenue.

5. CITY will maintain, at CITY expense, portions of El Camino Real related to the 25th Avenue Grade Separation Project as described and highlighted in Exhibit C.

Page 1 of 4 ends

295 of 763
EXHIBIT A: Delegation of Maintenance
Maintenance and Operation ofTraffic Signals and Intersection Lighting

ROUTE POST-MILE INTERSECTION
82 8.6 Forty- Third Avenue
82 8.95 Thirty-Ninth Avenue
82 9.01 Thirty-Eighth Avenue
82 9.1 Thirty-Seventh Avenue
82 9.16 Thirty-Sixth Avenue
82 9.33 Hillsdale Boulevard
82 9.56 Thirty-First Avenue
82 9.77 Twenty-Eighth Avenue
82 9.85 Twenty-Seventh Avenue
82 10.02 Twenty-Fifth Avenue
82 10.06 Twenty-Fourth Avenue
82 10.13 Twenty-Third Avenue
82 10.19 Twenty-Second Avenue
82 10.3 Twenty-First Avenue
82 10.37 Twentieth Avenue
82 10.72 Seventeenth Avenue
Agreement for Maintenance of State Highways
in the City of San Mateo
RATE
2A
meter
2A
2A
2A
meter
2A
2A
2A
2A
meter
2A
2A
meter
2A
meter
2A
meter
2A
2A
meter
2A
2A
2A
2A
2A
2A
meter
2A
meter

EQUIPMENT INT OR POLE NO UNITS
150W HPS 9404,9406 2.00
Signals-TA State Maintained
150W HPS 531,689 2.00
& PHBs
250W HP5 530, 9387 2.00
200WHPS 2572, 2573 4.00
Signals-TA State Maintained
137 LED 9380 4.00
250W HPS 15385D, 15384, 16377B, 4.00
15386, 16388,16389,
100W HPS 16390, 16361, 16362, 6.00
250W HPS 16364, 163728, 16386, 1.00
Signals -TA 16376B
200W HPS 17671 1.00
250W HPS 2574,2575,2576,2577 4.00
Signals-TA State Maintained
200W HPS 9363 1.00
Signals-TA State Maintained
200W HPS 24216,9385 4.00
Signals-TA State Maintained
200W HPS 918 1.00
250W HP.$ 2580, 2581 2.00
Signals -TA State Maintained
200WHPS 9354 1.00
200WHPS 9351,9352 2.00
200WHPS 9347,9348 2.00
& PHBs
150WHPS 9344 1.00
150WHPS 12974 1.00
250W HPS 24218 1.00
Signals -TA State Maintained
200W HPS 19076, 19077, 19078 6.00
Signals-TA State Maintained

Page 2 of 4 ends

% STATE EQUIV UNITS NOTES

66.67% 1.3333

50.00%

66.67% 1.3333

50.00% 2.0000

50.00%

66.67% 2.6667
100.00% 4.0000
100.00% 6.0000

50.00% 0.5000

50.00%

50.00% 0.5000

50.00% 2.0000

50.00%

66.67% 0.6667

50.00%

50.00% 2.0000

50.00% 0.0000

50.00% 0.5000

50.00% 1.0000

50.00%

66.67% 0.6667

66.67%. 1.3333

66.67% 1.3333

66.67% 0.6667

50.00% 0.5000

50.00%

50.00% 3.0000

50.00%
Amendment No. 3
Effective 7 •# / '7 2017
296 of 763
EXHIBIT A: Delegation of Maintenance
Maintenance and Operation of Traffic Signals and Intersection Lighting

ROUTE POST-MILE INTERSECTION
82 10.76 Borel Avenue
82 10.82 Sixteenth Avenue
82 10.89 Fifteenth Avenue
82 10.93 Barneson Avenue
82 10.95 Fourteenth Avenue
82 11.01 Thirteenth Avenue/Madison
Avenue
82 11.07 Twelfth Avenue/Hobart
Avenue
82 11.13 Eleventh Avenue/Avila Road
82 11.19 Tenth Avenue/Seville Way
82 11.28 Hayward Avenue/Aragon Blvd.
82 11.36 Ninth Avenue
82 11.51 Mission Drive
82 11.59 Fifth Avenue
82 11.65 Fourth Avenue
82 11.71 Third Avenue
82 11.74 Arroyo Court
82 11.78 Second Avenue
82 11.84 Crystal Springs Road
82 11.92 Baldwin Avenue/Baywood
Avenue
Agreement for Maintenance of State Highways
in the City of San Mateo
RATE
2A
2A
2A
2A
meter
2A
2A
2A
2A
meter
2A
2A
2A
I
2A
meter
2A
2A
meter
2A
meter
2A
meter
2A
2A
meter
2A
meter
2A
meter

EQUIPMENT INT OR POLE NO UNITS
200WHPS 19024 1.00
200W HPS 9329,9330 2.00
200W HPS 9326, 9327 2.00
250W HPS. 2586 3.00
Signals-TA State Maintained
250W HPS 23502 1.00
250W HPS · 23498 1.00
250W HPS 23501 1.00
400W HPS MS4-21, MS4-22 2.00
Signals-TA State Maintained
250W HPS 23492,23494 2.00
2SOWHPS 23490 2.00
250W HPS 9312, 9313 2.00
250W HPS 2589,2590 - 2.00
Signals-TA State Maintained
250W HPS 15342 1.00
200W HPS(2) 2591, 2594 4.00
&137LED (2)
· Signals-TA State Maintained
200W HPS(2) 2595, 2597 4.00
&137LED (2)
Signals-TA State Maintained
200W HPS 2598,2601 4.00
Signals-TA State Maintained
250W HPS 9300 1.00
250W HPS 24219,2603 2.00
Signals-TA State Maintained
250W HPS 2604, MS4-10 2.00
Signals-TA State Maintained
250W HPS 2606,2607 2.00
Signals-TA State Maintained

Page 3 of 4 ends

% STATE EQUIV UNITS NOTES

66.67% 0.6667

66.67% 1.3333

66.67% 2.0000

66.67%

66.67% 0.6667

50.00% 1.0000

50.00%

50.00% 1.0000
·so.00% 1.0000

50.00% 1.0000

66.67% 1.3333
· 66.67% 0.6667

50.00% 2.0000

50.00%

50.00% 2.0000

50.00%

50.00% 2.0000

50.00%

50.00% 0.5000

66.67% 1.3333

66.67%

66.67% 1.3333

66.67%

50.00% 1.0000

50.00%
Effective
Amendment No. 3
'7·-11 . 2017
297 of 763
EXHIBIT A: Delegation of Maintenance
Maintenance and Operation of Traffic Signals and Intersection Lighting

ROUTE POST-MILE INTERSECTION
82 11.98 Saint Matthews Avenue
82 12.07 Tilton Avenue/El Cerrito
Avenue
82 12.2 Monte Oiablo Avenue
82 12.32 East Santa Inez Avenue
82 12.35 West Santa Inez Avenue
82 12.42 West Poplar Avenue
82 12.51 Hilltop Road
82 12;64 Clark Drive South
82 12.72 Clark Drive North
82 12.8 State Street
82 12.86 Warren Road
82 12.9 Barrollhet Avenue
82 12.95 Peninsula Avenue - Park
Avenue
92 10.43 E/B Route 92 Ramps and
Alameda De Las Pulgas
92 10.56 Alameda De Las Pulgas
Overcrossing
92 10.7 W/B Route 92 Ramps and
Alameda De Las Pulgas
92 11.25 W/B On Ramp from Route 82
92 11.53 W/B Route 92 Ramps at
Co near Drive to S. Delaware
Agreement for Maintenance of State Highways
in the City of San Mateo
RATE
2A
2A
meter
2A
2A
2A
2A
meter
2A
2A
2A
2A
2A
2A
2A
2A
2A
meter
2A
2A
2A
meter
2A
2A
2A
2A
meter

EQUIPMENT INT OR POLE NO UNITS
400WMV 9292 1.00
250W HPS 2608, 2609 2.00
Signals-TA State Maintained
400W HPS 9285,9286 2.00
200W HPS 9251, 9280 2.00
200WHPS 9279 1.00
250W HPS 2610, 2611 2.00
Signals-TA State Maintained
200W HPS 9273,9274 2.00
200W HPS 9268 1.00
200W HPS 277 1.00
250W HPS 279 1.00
250W HPS 289,9261 2.00
200W HPS 9258 1.00
250W HPS 9259 1.00
250W HPS 16657 1.00
400WMV MS4-0, MS4-1, MS4-2 3.00
Signals -TA State Maintained
ISOW HPS 22059,22060 2.00
250W HPS 22062 1.00
State Maintained
250W HPS 22057, 22058 2.00
Signals -TA State Maintained
250W HPS 22054,22055 2.00
200W HPS 22061 1.00
State Maintained
200W HPS 22065 3.00
State Maintained
200W HPS 11391, 11431, 11451 3
Signals-TA State Maintained

Page 4 of 4 ends

% STATE EQUIV UNITS NOTES

66.67% 0.6667

50.00% 1.0000

50.00%

66.67% 1.3333

66.67% 0.6667

66.67% 1.3333

50.00%

66.67% 1.3333

66.67% 0.6667

66.67% 1.3333

66.67% 0.6667

50.00% 0.5000

50.00% 1.5000

50.00% 0.0000

50.00% 1.0000

50.00% 0.5000

50.00% 1.0000

50.00% 0.0000

50.00% 1.0000

50.00% 0.5000
100.00% 3.0000

25.00% 0.7500

25.00%
Effective
Amendment No. 3
7-/7 2017
298 of 763
~
:, "' 0 [Q
a:

El CA MIN 0
..

Area maintained. by CITY l:·:·>:·:·:·>i:J
I
I
I
!
!
i
I
I~ !..
--·--------"----'-....------~--------..... ----'--........ -~---' 299 of 763
July 26, 2017
Amendment No. 3
Effective: 7'-(7 -:J..017 Exhibit C - Sheet 1 of 3
Subject: Caltrain 251h Avenue Grade Separation project, 0417-NMC-JPB (04-SM-82-9.35/10.07).

Maintenance Responsibility of Improvements Within and Adjacent to State Right of Way.

To whom it may concern:

The City of San Mateo (CITY) hereby accepts maintenance responsibility of the improvements constructed under the 251h Avenue Grade Separation project (0417-NMC-JPB). The CITY accepts maintenance responsibility, including removal of debris and graffiti, for sidewalks, crosswall<s, and median islands for areas within and adjacent to the Improvements within State right of way. See attached exhibit highlighting the areas identified in this maintenance narrative. ~t1l'\<~
Brad Underwood
Director of Public Works
City of San Mateo
Acknowledged by:

Deputy District Director
ainlenance
Department of Transponation
_ _J_~-"+J ) ............ , 1_
Date
~µ11
Da.e
300 of 763
,-..
0 N
"'
C
,
,
i2 ~ 13 ::,
0 0 0
(.)
' :

SrDEWALK, CROSSWALK und MEDIAN:

Maintenance ResponstbUity for
improvements within State right of way
l ........... J
i .......... _j.J.: .
'
'·.' •.HI
J.
t- ;/
"ECR" 101+34["]] "ECR" '·101 +84
... REMOVE ... EXIST STRIPI_NG .... ,tEN_D ..... REMOVE EXIST, _STRIPING ..

REMOVE TYPE lll(L) ARROW
"ECR" 102+24

END BAY TAPER
I 11
i l1 i; II
u I:!I' iJ ... "ECR" 1 02 +99]!}/) i !
L END REMOVE EXIST STRIPING --1__ ____ END DET 29

CONFORM TO EXIST
· ·····"ECR" 1 03+ 12·

END REMOVE EXIST STRIPING
END DET 29

CONFORM TO EXIST
104+00
---+--------+----
Exhibit C - Sheet 2 of 3
u
r,, ) i
"28TH" 200+ 12.00
"ECR" 104+35.50
~\<( I 105+00
- ~s;:,Ntr-- - --t-- - ---- -t--
l -· ---r,-ez Tf" I ~E _.? .. ETAIL A .. ..
cl ' . ~ a ... _____ _; __ , ___ _
/
lgg .. . . ..,j ............ . st
+
<.O
0 u
en
"ECR" 100+89
()
EL CAMINO REAL 11' L
_ J _) _ _J EL CAMINO REAL
\
\
)-~
//
,
i
J
!
............ ~---·"'"" .~-·""
I
BEG REMOVE EXIST STRIPl~IG
BEG DET 29

CONFORM TO EXIST
...
,,I_ ···----····· "ECR" -·1 00+98 .......... BEG REMOVE EXIST BEG DET 29 ...... CONFORM TO EXIST
"ECR" 101+48
BEG BAY TAPER 11'
11·
"ECR" 102+38

END BAY TAPER
"ECR" 102+38
BEG DET 38
!f
CURVE NO. DESCRIPTION STATION TANGENT V mph
\
BC
Pl
EC
12"

REMOVE EXIST
MEDIA~! NOSE
"
i SAWCUT
4" AC OVER
15" CLASS 2 AB
1 06+42.88 2024575.65 6039161.50
2024346.26 6039338.93 0'.38'12'' 9000.00' 3'41 '28"
112+22.68 20241.28.76 6039530._75

WARNING
"ECR" 104+64.46

20.48' RT
BC

MEDIAN NOSE DETAIL
SCALE: 1 "=5' -0"
579.81 290.00'

DESIGNED
C. O'GARA
DRAWN
1---+----+--t--+---t--------------t--+---+--+--+--1---------------l C. O'GARA t--1---t---t--+-+---------------1--+---+-+----'1----1---------------1 M.ECSH1PPEN t--J---J--t--t--+--------------1---+----+-+--1'---I--------------J IN CHARGE L. RIMBACH 0 120916 ISSUED FOR BID
REV DATE BY SUB APP OESCRIPT!ON REV DATE BY SUB APP DESCRIPTION DATE
12092016
30 11·
11' ' () l .~. ... \.. . ............. --.................. -,../r -... ,., ................... _,J;:. ____ ....... ··---~~I~" '\ .

BRICK PAVING,

SEE CITY STANDARD
A1-8
_LOG
'<:··-·--··t···········
~=i ······--··
Ci / / , ' i !
i {> / ;

5.33' 6.0'

PEDESTRIAN
REFUGE
4"' AC
0 C, ~~~-~~RRINGBO~~ PAVERS,
~\. ~ SEE DETAIL ffi_ () !ry' ~
()
''
/ ! i
I I _l f i
PAVING
4" CLASS 2 AB
15"
2 AB

SECTION
SCALE: NTS
··~·

GRAPHIC SCALE
DEPUlY OlRECTOR CAOO FILE NAME
S. CHAO PENINSULA CORRIDOR JOINT POWERS BOARD t1ac235
100 Pringle Avenue
Suite 400
Walnut Creek, CA 94596
925-97 4-2500

PROJECT MANAGEMENT
R. BOLON SAN MATEO 25TH AVENUE

GRADE SEPARATION
SCALE
H 1"=20'

CONTRACT NO

CAOD DATE
04202017

STRUCTURES MILEPOST
C. CHEN 17-J-C-048 19.0-20.3
1250 San Carias Avenue
San Carlos, CA 94070 TRACK/CML
S. CHAO
EL CAMINO REAL AND 28TH AVENUE

LAYOUT AND STRIPING OWG NO REV PAGE NO
C235
301 of 763
" 0
N
ai
C
" ,
I :,
~ 0
0 u (.}
SIDEWALK, CROSSWALK and MEDIAN:

Maintenance Responsibility for
improvements within State right of way
(1QQ) 112+00 . ---···--1--... _ -~-.... -.

EXISTING MEDIAN
"ECR" 112+63.56
... 23.62' RT

BEG REMOVE EXIST
....... _BEG A1 -8 CURB
CURB ......

G8-22(CA)
--· ---- +--:-- - 114+00
- --""I=- -
"ECR" 113+59
BEG DET 38
'tl
!:
\\
:\ ll
'i\
l: " " p ...... ·-· ........................ -- ECR 114+27 .05 ... ·cm::--' ............................ -.................. - ..... - .... , .. - ...... - ...... -, ................................ --,~'t: 6.00' RT

REMOVE EXIST
END A1 -8 CURB
END DET 25A

MATCH EXIST
11'
EL CAMINO REAL , S41'24'41.01"E, 477.31' 115+00 11 - -t-- "ECR" - __ .... _ .. ··r- __ .._ ......... :... -----·=1---····=· "ECR" 114+34
END DET38

MATCH EXIST
11'
11'
10'
11'
·-, ....... _ ......... _ ... , --BEG DET 25A
........ _MATCH EXIST 4" AC OVER 11'
112+68.56' ..
( 23.62' RT
--~-g
15" CLASS 2 AB

DESIGNED
C. O'GARA
DRAWN
1--1----1---1---11---+------------+---1----+--+-+--l--------------1 C. O'GARA CHECKED 1--+----+---+--,1---+-------------+----1-----1--+--+----<------------1---1 M. SHIPPEN ---t----+--+---11---1--------------1--+----i--l---t--+--------------l IN CHARGE 0 120916 ISSUED FOR BID

REV DATE BY SUS APP DESCRIPTION REV DATE BY SUB I APP DESCRIPTION L. RIMBACH
DATE
12092016
11'
100 Pringle Avenue
Suite 400
Walnut Creek, CA 94596
925-97 4-2500
1250 San Carlos Avenue San Carlos, CA 94070

DEPUTY DIRECTOR
S. CHAO
()

PROJECT MANAGEMEW
C. CHEN
TRACK/CIV1L
S. CHAO
Exhibit C - Sheet 3 of 3
\ EL CAMINO REAL
1-
20· 0 20'

1...----

GRAPHIC SCALE

CAOO FILE NAME
PENINSULA CORRIDOR JOINT POWERS BOARD tfaC236
SAN MATEO 25TH AVENUE

GRADE SEPARATION
SCALE
1"=20'

CONTRACT NO
40'
'

GADD DATE
04202017

MILEPOST
17-J-C-048 19.0-20.3
EL CAMINO REAL AND 31 ST AVENUE

LAYOUT AND STRIPING DWG NO
C236 REV PAGE NO
302 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 20 Section Name: CONSENT CALENDAR Account Number: 82-4683 File ID: 23-7525 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 05, 2023
SUBJECT:

Fleet Maintenance Services – Amendment
RECOMMENDATION:

Approve Amendment No. 5 to extend the agreement with First Vehicles Services, Inc. for year four (4) of five (5) optional one-year extensions for fleet maintenance services in the amount of $898,343 for a new agreement total of $6,963,517.81; include $200,000 for additional compensation for services that exceed the base level established in the agreement; establish a contingency reserve in the amount of $100,000; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue change orders within the contingency amount.

BACKGROUND:

The Facilities and Fleet Services Division of Public Works contracts with First Vehicle Services (FVS) to perform fleet maintenance and repairs for the City of San Mateo’s fleet. In November 2017, a three-year agreement was awarded to FVS for fleet maintenance services in a total amount not to exceed $2,176,537.74, with five (5) optional one-year extensions, and a contingency reserve was established in the amount of $100,000 per year. The base level services provided under the agreement include preventive maintenance and any repairs that cost less than $500 per repair. The City provides FVS additional compensation for the cost of repairs greater than $500, repairs of vehicles beyond optimal life span, and repairs on damaged vehicles.

In June 2018, Change Order No. 1 was issued to increase the original contingency in the amount of $150,000 for a new contingency amount of $250,000. In May 2019, Amendment No. 1 was issued to increase the annual base level services to include a CPI increase of 3% and increased the additional compensation for services that exceed the base level to $200,000 per year for a new three-year agreement total of $2,699,838.58.

In June 2020, Amendment No. 2 was issued to increase the annual base level services cost to include a CPI increase of 2.9% and extend the agreement for year one (1) of five (5) one-year extensions through June 30, 2021 for a new agreement total of $3,699,545.42. In April 2021, Amendment No. 3 was issued to increase the annual base level services cost to include a CPI increase of 1.6% and extend the agreement for year two (2) of five (5) one-year extensions through June 30, 2022 for a new agreement total of $4,712,047.56.

In April 2022, Change Order No. 2 was issued to add the annual contingency in the amount of $100,000 for non-contract fleet expenses for a new agreement total of $4,812.047.56. In June 2022, Amendment No. 4 was issued to increase the annual base level services cost to include a CPI increase of 5% and extend the agreement for year (3) of five (5) one-year extensions through June 30, 2023 for a new agreement total of $5,865,174.81.

Agreement expenditures from inception of the contract in November 2017 to date total $4,715,295.85 for base level services and $965,969.95 for services exceeding base level for a total spent of $5,681,265.80. 303 of 763

CITY OF SAN MATEO
Amendment No. 5 will:
• Increase the annual, base level services cost to $898,343 for fiscal year 2023-24 to include a CPI increase of 5.3% as described in the agreement;
• Provide $200,000.00 for additional compensation for services that exceed the base level services established in the agreement; and
• Establish a contingency reserve in the amount of $100,000.

Based on the above, staff recommends for City Council to extend the agreement for year four (4) of five (5) optional oneyear extensions through June 30, 2024 in the amount of $898,343 for base level services, and $200,000 for additional compensation for services that exceed the base level for a new agreement total of $6,963,517.81, and establish a contingency reserve in the amount of $100,000.

BUDGET IMPACT:

Funding is provided through budget transfers from each department having vehicles and/or equipment. Costs for fleet maintenance have been budgeted within each department’s annual operating budget. No supplemental budget appropriation is necessary.

ENVIRONMENTAL DETERMINATION:

This Amendment is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Amendment No. 5

STAFF CONTACT
Marie Silva, Facilities and Fleet Services Manager
[email protected]
6505227328
Azalea Mitch, Director of Public Works
[email protected]
(650) 522-7303
304 of 763
Contract Amendment Page 1 of 2
Rev 9/17
AMENDMENT NO. 5 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
FIRST VEHICLE SERVICES, INC. FOR

FLEET MAINTENANCE SERVICES
WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and First Vehicle Services Inc. (“Contractor”), entered into an Agreement for Fleet Maintenance Services (“Agreement”) on November 8, 2017; and
WHEREAS, City and Contractor wish to amend the Agreement effective July 1, 2023 to extend the term of this Agreement, and
WHEREAS, City and Contractor wish to amend the Agreement to clarify the term and update the rates and fees.;
NOW, THEREFORE, the parties agree as follows:

1. Section 4 – Term of the Agreement is amended to read:
“The amended term of the agreement from October 1, 2017 through June 30, 2023 is being extended for one year as the fourth of the five one-year options to extend the Agreement.

Services to be performed under this Agreement extension shall commence on July 1, 2023 and conclude on June 30, 2024, with one, one-year option remaining”

3. Section 5 – Payment is amended as follows:

The bBase fee is amended from $853,127.25 to $898,343.00 for the term of this one-year extension from July 1, 2023 through June 30, 2024.

4. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]
305 of 763
Contract Amendment Page 2 of 2
Rev 9/17
IN WITNESS WHEREOF, CITY OF SAN MATEO and FIRST VEHICLE SERVICES, INC. have executed this Agreement Amendment No. 5 on ________________.

CITY OF SAN MATEO CONTRACTOR
Azalea Mitch
Public Works Director
W.C. Pihl
Senior Vice President
If a Corporation, can be either 1) President or 2)
Vice President plus an additional corporate
officer (i.e., Secretary, Treasurer) who shall sign
below.

ADDITIONAL CORPORATE OFFICER
(if necessary per the above)
Name___________________________________
Title____________________________________
306 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 21 Section Name: CONSENT CALENDAR Account Number: 87-2314 File ID: 23-7558 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Human Resources Department
MEETING DATE: June 05, 2023
SUBJECT:

Workers' Compensation Program Third Party Administration – Agreement RECOMMENDATION:

Award an agreement to LWP Claims Solutions, Inc. for third party administration of the City's self-insured workers' compensation program for a three-year term in the amount of $740,907 with an option to extend it for additional two years in the amount of $530,194 (for a total amount of $1,271,101), and authorize the Human Resources Director to execute the agreement in substantially the form presented.

BACKGROUND:

The City has been self-insured for workers' compensation since 1975. LWP Claims Solutions, Inc. (LWP) has been the City's third-party administrator (TPA) since July 1, 2018. Through our broker, ABD Insurance and Financial Services (dba Newfront), we issued a Request for Proposals in February 2023. We received responses from two TPAs and one managed care provider. Staff reviewed the proposals and chose to interview both TPAs, TriStar, and LWP. Following the interviews, staff eliminated TriStar from consideration. Further, staff did not conduct reference checks for LWP Claims Solutions since the City has a longstanding relationship with this TPA, and they have proven to be a very reliable partner. LWP is best qualified to meet the City's needs in administration of the workers' compensation program. LWP has been in business for thirty-three years and has extensive experience with self-insured municipalities. They believe that that excellence in clinical management is the best way to shorten disability duration and speed both return to work and claims closures.

They focus on customer service and responsiveness, recognizing the value in getting medical treatment authorized quickly and keeping close contact with injured employees and City staff.

The proposed staffing model includes a dedicated Senior Claims Examiner that would only work on City of San Mateo claims. It has been proven that this dedicated focus results in more efficient claims handling and responsiveness, increased employee satisfaction with service, and lower litigation rates and related costs.

We do not recommend unbundling the managed care services from the agreement with the third-party administrator at this time. The City will continue utilizing the services of managed care provider, Genex, on as needed basis, along with other managed care vendors who partner with LWP.

LWP has done an outstanding job for the City in the last five-year period administering our workers’ compensation program. They were successful in reducing the number of open workers’ compensation cases while continuing to provide a high level of customer service to City employees. In addition, LWP is able to provide the same level of service for the duration of the new agreement at a lower price.
307 of 763

CITY OF SAN MATEO
BUDGET IMPACT:

The annual administrative cost for the first three years of the agreement will be $230,000, $236,900, and $244,007, respectively. There is an additional $10,000 annual administration fee, which includes various services, such as bank charges, storage fees, on-line 5020 reporting, loss reports, on-line system access, trust accounting, preparation and filing of 1099's, preparation of SIP reports, FROI/SROI reporting, medicare reporting, and ebill. Years four and five, if the City opts in, would be $251,327 and $258,867. Sufficient funds are available in the workers’ compensation budget.

ENVIRONMENTAL DETERMINATION:

This project is exempt from CEQA requirements in that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment per Guidelines Section 15061(b)(3).

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Professional Services Agreement

STAFF CONTACT
Yuliya Shukhat, Senior Risk Management Analyst
[email protected]
(650) 522-7263
308 of 763
Contract for Services Page 1 of 17
Rev 12/22

AGREEMENT WITH LWP CLAIMS SOLUTIONS
FOR WORKERS’ COMPENSATION THIRD PARTY ADMINISTRATION SERVICES This Agreement, made and entered into this day of____________________, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California ("CITY"), and LWP CLAIMS SOLUTIONS (LWP), a Corporation ("CONTRACTOR"), whose address is 35 Miller Avenue, #214, Mill Valley, CA 94941.

RECITALS:

A. CITY desires certain workers’ compensation third party administration services hereinafter described.

B. CITY desires to engage CONTRACTOR to provide these workers’ compensation third party administration services by reason of its qualifications and experience for performing such services and CONTRACTOR has offered to provide the required services on the terms and in the manner set forth herein.

NOW, THEREFORE, IT IS AGREED as follows:

SECTION 1 - SCOPE OF SERVICES
.

The scope of services to be performed by CONTRACTOR under this Agreement is as described in Exhibit A to this Agreement, which is attached and incorporated by reference.

SECTION 2 - DUTIES OF CONTRACTOR
CONTRACTOR shall be responsible for the professional quality, technical accuracy and coordination of all work furnished by CONTRACTOR under this Agreement. CONTRACTOR shall, without additional compensation, correct or revise any errors or deficiencies in its work.

CONTRACTOR represents that it is qualified to furnish the services described under this Agreement.

CONTRACTOR shall be responsible for employing or engaging all persons necessary to perform the services of CONTRACTOR.

CONTRACTOR agrees to comply with the City’s minimum wage ordinance as codified in Municipal Code Chapter 5.92, which differs from the state minimum wage and includes a Consumer Price Index escalator.
309 of 763
Contract for Services Page 2 of 17
Rev 12/22
SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.

CITY shall examine documents submitted by CONTRACTOR and shall render decisions pertaining thereto promptly, to avoid unreasonable delay in the progress of CONTRACTOR'S work.

SECTION 4 - TERM
The services to be performed under this Agreement shall commence on July 01, 2023 and be completed on June 30, 2026, with an option to extend for an additional two-year term at the City’s election.

SECTION 5 - PAYMENT
Payment shall be made by CITY only for services rendered and upon submission of a payment request upon completion and CITY approval of the work performed. In consideration for the full performance of the services set forth in Exhibit A, CITY agrees to pay CONTRACTOR a fee pursuant to rates stated in Exhibit B, attached and incorporated by reference.

SECTION 6 - TERMINATION
Without limitation to such rights or remedies as CITY shall otherwise have by law, CITY shall have the right to terminate this Agreement or suspend work on the Project for any reason, upon ten (10) days' written notice to CONTRACTOR. CONTRACTOR agrees to cease all work under this Agreement upon receipt of said written notice.

SECTION 7 - OWNERSHIP OF DOCUMENTS
All documents prepared by CONTRACTOR in the performance of this Agreement are and shall be the property of CITY, whether the project for which they are made is executed or not.

SECTION 8 - CONFIDENTIALITY
All reports and documents prepared by CONTRACTOR in connection with the performance of this Agreement are confidential until released by CITY to the public. CONTRACTOR shall not make any such documents or information available to any individual or organization not employed by CONTRACTOR or CITY without the written consent of CITY before any such release.

SECTION 9 - INTEREST OF CONTRACTOR
CONTRACTOR covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services under this Agreement.
310 of 763
Contract for Services Page 3 of 17
Rev 12/22
SECTION 10 - CONTRACTOR'S STATUS
It is expressly agreed that in the performance of the services required under this Agreement, CONTRACTOR shall at all times be considered an independent contractor as defined in Labor Code Section 3353, under control of the CITY as to the result of the work but not the means by which the result is accomplished. Nothing herein shall be construed to make CONTRACTOR an agent or employee of CITY while providing services under this Agreement.

SECTION 11 - INDEMNITY
CONTRACTOR agrees to hold harmless and indemnify CITY, its elected and appointed officials, employees, and agents from and against any and all claims, loss, liability, damage, and expense arising out of CONTRACTOR’s performance of this Agreement, except for those claims arising out of CITY’s sole negligence or willful misconduct. CONTRACTOR agrees to defend City, its elected and appointed officials, employees, and agents against any such claims. The CONTRACTOR’S duty to indemnify shall survive expiration or early termination of this Agreement.

SECTION 12 - INSURANCE
Contractor shall procure and maintain for the duration of the contract the insurance specified in Exhibit C to this Agreement
SECTION 13 - NONASSIGNABILITY
Both parties hereto recognize that this Agreement is for the personal services of CONTRACTOR and cannot be transferred, assigned, or subcontracted by CONTRACTOR without the prior written consent of CITY.

SECTION 14 - RELIANCE UPON SKILL OF CONTRACTOR
It is mutually understood and agreed by and between the parties hereto that CONTRACTOR is skilled in the performance of the work agreed to be done under this Agreement and that CITY relies upon the skill of CONTRACTOR to do and perform the work in the most skillful manner, and CONTRACTOR agrees to thus perform the work. The acceptance of CONTRACTOR's work by CITY does not operate as a release of CONTRACTOR from said obligation. 311 of 763
Contract for Services Page 4 of 17
Rev 12/22
SECTION 15 - WAIVERS
The waiver by either party of any breach or violation of any term, covenant, or condition of this Agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. The subsequent acceptance by either party of any fee or other money which may become due hereunder shall not be deemed to be a waiver of any preceding breach or violation by the other party of any term, covenant, or condition of this Agreement or of any applicable law or ordinance.

SECTION 16 - COSTS AND ATTORNEY FEES
Attorney fees in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of this Agreement. The above $5000 limit is the total of attorney fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this provision that neither party shall have to pay the other more than $5000 for attorney fees arising out of an action, or actions to enforce the provisions of this Agreement.

SECTION 17 - NON-DISCRIMINATION
CONTRACTOR warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONTRACTOR nor any of its subcontractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act.

SECTION 18 - MEDIATION
Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the State Mediation and Conciliation Service, or other agreed-upon service. The mediator shall be selected by a blind draw.

The cost of mediation shall be borne equally by the parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties. 312 of 763
Contract for Services Page 5 of 17
Rev 12/22
SECTION 19 - LITIGATION
CONTRACTOR shall testify at CITY's request if litigation is brought against CITY in connection with CONTRACTOR's services under this Agreement. Unless the action is brought by CONTRACTOR, or is based upon CONTRACTOR's wrongdoing, CITY shall compensate CONTRACTOR for preparation for testimony, testimony, and travel at CONTRACTOR's standard hourly rates at the time of actual testimony.

SECTION 20 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:

To CITY: City of San Mateo
Human Resources Department
Attn: Yuliya Shukhat, Sr. Risk
Management Analyst
330 W. 20th Avenue
San Mateo, CA 94403
To CONTRACTOR: LWP Claims Solutions, Inc.

Attn: Judy Adlam
35 Miller Ave., #214
Mill Valley, CA 94941
SECTION 21 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONTRACTOR and supersedes all prior negotiations, representations, and agreements, either written or oral.

This document may be amended only by written instrument, signed by both CITY and CONTRACTOR.

SECTION 22 - GOVERNING LAW AND VENUE
This Agreement shall be governed by the laws of the State of California and, in the event of litigation, venue will be in the County of San Mateo.
[SIGNATURE PAGE FOLLOWS]
313 of 763
Contract for Services Page 6 of 17
Rev 12/22
IN WITNESS WHEREOF, CITY OF SAN MATEO and LWP Claims Solutions have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Teresa Abrahamsohn
Human Resources Director
Date Judy Adlam
Its Authorized Agent
President & CEO
If a Corporation, can be either 1)
President or 2) Vice President plus
an additional corporate officer
(i.e., Secretary, Treasurer) who
shall sign below.

Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
(if necessary per the above)
Bahareh Abdollahi
Assistant City Attorney
Date SheriLynn Erickson
Treasurer
Date
Attachments:

Exhibit A: Scope of Services
Exhibit B: Payment Rates
Exhibit C: Insurance Requirements
314 of 763
Contract for Services Page 7 of 17
Rev 12/22

EXHIBIT A

SCOPE OF SERVICES
TPA must perform all services required to supervise and administer a self-insured WC program for the City of San Mateo, and to act as the City’s representative in matters relating to the City’s obligations under the WC laws of the state of California.
• Investigate, adjust, and settle claims.
• Determine eligibility and process both medical and indemnity benefits in a timely manner. • Issue timely payment of benefits and notices to employees. • Provide a toll-free telephone number for the City of San Mateo and claimants. • Process all claims, including but not limited to investigation, reserving and payment, filing reports, negotiating, and settling claims for amounts pre-approved by the City of San Mateo. • Manage claims according to the City’s handling guidelines. The life of an indemnity claim to be represented by the graph below.
• Set up claims and begin the three-point contact process immediately upon receipt of ANY notice of a claim. Examiners are required to make three-point contact on all Indemnity claims within 24 hours of receipt, with the first contact always being the employer. If voice-to-voice contact is not achieved, the Examiner will continue efforts to reach the parties until accomplished.

Indemnity Claim Timeline

CLAIM REPORTED
TO LWP

SUPERVISOR

REVIEWS AND

ASSIGNS CLAIM
3 POINT CONTACT
MADE

INITIAL RESERVES
SET

PLAN OF ACTION

CREATED

SUPERVISOR
REVIEW

FIRST CASE

RESOLUTION
DIARY

PLAN OF ACTION

REVIEWED

SUPERVISOR
REVIEW

SUPERVISOR
REVIEW
Day 1 Day 1 24 hours Day 5 Day 14 Day 28 Day 30 Every 45 Days Day 90 Every 90 Days 315 of 763
Contract for Services Page 8 of 17
Rev 12/22
Once the three-point contact in completed the claim begins a cycle of processing that is continually focused towards closure.
• Supervisors will assign the claim and provide initial direction to the Examiner. • Supervisors will review the reserves at their 28-day review, and then subsequently at each touch point and on each oversight diary.
• Supervisors maintain oversight diaries no longer than 90 days apart, and more frequently for files with significant issues.
• Supervisors approve all reserve changes that meet the client thresholds as well as reviewing the reserves in preparation for each client claim review.
• The Examiner will enter regular plan of action updates. • For each claim issue, the Examiner will enter a status update as well as a Plan for the Steps necessary to resolve that issue.
• The Examiner and the supervisor will maintain claims using a diary system. Each time a diary is worked another will be set.
• Responded to questions or inquiries by the City of San Mateo or claimants within one business day.

Contact with City of San Mateo, claimant, and medical provider within 24 hours of receipt of a claim for all claims:
• Three-point contact will be made on all indemnity and medical only claims. All contacts are made within 24 hours of receipt, with the first contact always being the Employer. • In cases where the employee is losing time from work, the Employer, Injured Worker and Treating Physician will be contacted no less frequently than every two weeks, although more frequent contact is very common.

Catastrophic Claims:

When LWP receives notice of a catastrophic claim, response includes:

Claim
Reported
Assigned
to adjuster
3 point
contact
completed
Medical and disabilty
managment / Reserves
set or reviewed
Plan of action is
created or updated
Supervisor reviews the
file
Ongoing contact with
employer, employee
and doctor
Interal audit
continually reviews
files for compliance
316 of 763
Contract for Services Page 9 of 17
Rev 12/22
Notification:

The following steps are taken:
• Immediately, but no later than one hour after receiving notice of a serious injury (whether by phone, fax, email, etc.), the Claims Examiner must alert the local Claims Manager and their direct supervisor.

If they are unavailable detailed voice messages are to be left both on the office line and cell phone lines.
• The Claims Manager (or the designed manager in the local Claims Manager’s absence) will then immediately notify the client and Claims VP via phone or email that a serious claim has occurred.

Notification should include the name of employer, employee, and a brief description of accident and injury. In this initial communication, advise that a more detailed, factual summary will follow within 24 hours.

Contacts:
• The Examiner will make personal contact with the family members as soon as appropriate. Contacts are made face-to-face whenever possible.

Compensability and Subrogation:
• All evidence is immediately preserved, and that causation and compensability are quickly evaluated so that there are no delays in treatment.

Communications with client:
• Within 24 hours of notice of loss, LWP will prepare a detailed summary of the factual and medical information obtained to date.
• Within 24 hours LWP will confirm that the Excess Carrier has been placed on notice of loss if the nature of injury or anticipated reserve levels warrants notification. • Within five days of notice of loss, LWP will work with the client to establish appropriate case reserves. • Schedule call with client for regular updates as to status Case Management and Medical Support:
• For Catastrophic cases, Genex will provide services, including coordination of medical services, family communications and development of a Life Care Plan.
• The nurse will act as a liaison between the injured employee’s family, the employer, and the claims team.

Catastrophic event:

In the event of catastrophe that causes three or more injuries, additional steps will include:
• Claims already created as a result of the event are assigned a catastrophic number and are linked for reporting purposes.
• Direct contact with the client will be made to discuss the situation and scope of the event. • In case the number of claims require the support of additional Examiners, a team will be assembled to provide additional support to the primary Examiner.
• Establish reporting timelines with client to evaluate cessation of catastrophic team and reassignment of cases to primary Examiner.
317 of 763
Contract for Services Page 10 of 17
Rev 12/22
First Aid Claims:
• First aid claims are to be flagged with notice to the City of San Mateo and shall be identified as first aid on all loss run reports. Bill payments for first aid claims shall be determined by the City of San Mateo.
• Identify First Aid claims on loss reports, in the claims system and on any special reports created. • Make payments on those claims, as appropriate.

Investigation:
• Initial investigation will be completed within 14 days from the day of receipt of the claim and if needed, further investigation will be completed within 30 days or as soon as all the facts of the case can be reasonably gathered.
• In cases where the City has agreed that a delay is appropriate, LWP will discuss the expected discovery process and will meet the 30 day expectation unless there is agreement that further discovery may alter the ultimate decision.

Plan of action:
• Initial plan of action must be clearly documented in the claim file within 14 days from receipt of the claim and updated every 30-60 days.
• An initial plan of action is established within 14 days of claim set up. • Maintain case resolution diaries at intervals not to exceed 45 days for indemnity claims, and 90 days for future medical claims.
• Any changes made to the plan of action create an automated progress note on the notepad and are available for review by the City either in reports or through online access.

Reserves:
• Adjusters must document the basis for each reserve calculation. • Initial reserves are established within 5 days of claim set up. • Reserves are reviewed at every diary, no less frequently than every 45 days. Any time an inaccuracy is detected, a reserve worksheet is completed. The worksheet is reviewed by everyone involved in the approval process and is maintained as a permanent part of the electronic claim file. Each worksheet contains a detailed breakdown of estimated costs as well as an explanation for the rationale for the recommended reserves.
• Reserve increases of $5,000 or more on any one claim must be communicated to and discussed with the City of San Mateo.

Adjuster’s notes:
• Notes should include but are not limited to comments regarding exposure, disposition plan for claim closure, financial transactions, supervisor’s notes, and any other relevant claim information. • Examiners are required to fully document all actions and strategies. • Every phone call must be documented.
• Plan of action is documented in customized plan of action format. 318 of 763
Contract for Services Page 11 of 17
Rev 12/22
• Examiner documents their review of all issues at each Case Resolution diary, utilizing categorized plan of action notepad template.
• Written status reports will be provided to the City of San Mateo in cases where the incurred value of the claim increases by $10,000 or more, and/or any time upon the request of the City of San Mateo. • A comprehensive status report will be provided to the City of San Mateo at the time any claim exceeds a total incurred value of $50,000.

Compensability of claims:
• Prior to issuing a denial of compensability of any claim, the adjuster must discuss the case with the City of San Mateo for mutual agreement on the denial.
• TPA must keep the City of San Mateo informed and involved in all accepted cases prior to sending acceptance letters to employees.

Correspondence/Communication:
• All correspondence is emailed to the City immediately upon receipt. • Examiner must notify the City of San Mateo within three (3) days, when any previously closed claim is reopened and provide the rationale for reopening.
• Examiner must notify the City of San Mateo when return to work letters are being sent to the claimant, anytime there are changes to the claimant’s work restrictions and at the time of any permanent work restrictions.
• Transitional/modified duty must be documented in the claim file and should include the medical diagnosis, work restrictions and estimated duration of disability. • Documented follow-up to the treating physician(s) is required no later than every thirty (30) days prior to MMI status. Ongoing disability will be documented though ongoing medical reports. • Examiner will notify the City of San Mateo of any legal or administrative actions that affect their claims including: appeals, pre-notification of depositions, pretrial or workers’ compensation board hearing.

Access to the claims and claims data:
• Provide City of San Mateo access 24 hours a day, seven days a week to electronically view the progression of any of their claims and related claim data. The City of San Mateo or its designated representative must be authorized to visit the TPA’s processing or storage premises and have access to all data, including but not limited to paper documents, electronic documents and any other type that elates to payments or non-payments made by the TPA and charged to the City of San Mateo.

Include in your response any costs associated with this access or any fees charged related to storage, copying or transferring any data to the City of San Mateo.

Approval for all outside case management services:
• The City of San Mateo will have final approval for all outside case management services utilized, including but not limited to defense attorneys, nurse case managers, vocational experts and investigative firms.

Pursuit of third-party action subrogation claim:
• The City of San Mateo must pre-approve the pursuit of any third-party action subrogation claim. 319 of 763
Contract for Services Page 12 of 17
Rev 12/22
Request for surveillance:
• Request for surveillance must be discussed with and approved by the City of San Mateo.

Settlement authorization:
• On all settlements, including 0% PD with future medical, a settlement authorization request must first be submitted to the City of San Mateo for their approval.

Workers’ compensation hearings:
• LWP team members make appearances at the WCAB on occasion. Examiners will attend trials along with defense counsel when their presence is likely to affect the outcome. Any appearance made by an LWP staff member is included in LWP’s administrative fee. Any pre-approved appearances made by defense attorneys are charged to the claim as allocated loss expense.

Excess carrier notification:
• Examiner will notify the excess carrier of potential claims as provided by the carrier’s service agreement terms.

Recoveries:
• Monitor and collect all recoveries due the City of San Mateo.

Medical provider bills:
• Review medical provider bills for appropriateness of fees charged utilizing the California Official Medical Fee Schedule.

Claim records and claim files:
• All claim records and claim files shall be the property of the City of San Mateo. TPA shall be responsible for providing claim data to the City of San Mateo upon request for data from the TPA’s administrative data system at the administrator’s expense.

Printed workers’ compensation forms:
• Provide all printed workers’ compensation forms which the City of San Mateo may require, i.e.

Employers First Report of Injury, medical authorization form, benefit letters, delay/denial letters, etc.

Workers’ compensation claims trust checking account:
• The City of San Mateo maintains a workers’ compensation claims trust checking account. The TPA shall be responsible for payments of benefits from this account.

Litigation management:
• The City of San Mateo reserves the right to select counsel. 320 of 763
Contract for Services Page 13 of 17
Rev 12/22
Defense counsel referrals:
• Defense counsel referrals need prior approval by the City of San Mateo. • Within three (3) business days of referral of the case to defense counsel, direct a letter to the attorney outlining the case status and what is needed from a defense standpoint within a specific time frame.

Procedures to audit the effectiveness of legal counsel on the outcome of claims:
• Conduct these reviews semi-annually (every other claim review) and modify the schedule to meet the City’s needs.

Nurse case management:
• Pre-authorization by the City of San Mateo is required on all nurse case management assignments. • Nurse case manager’s action plans and notes will be documented in the claim file, and as appropriate NCM’s will participate in claim reviews or when consultation with the NCM is requested by the City of San Mateo.
321 of 763
Contract for Services Page 14 of 17
Rev 12/22

EXHIBIT B

PAYMENT RATES
City of San Mateo LWP Claims Administration: Life of the Contract Claims Administration and Managed Care.
*Utilizing LWP’s Managed Care Bundled Services
Flat Fee. Dedicated staffing model. Billed monthly at 1/12th of annual fee.

Annual Claims Fee Dedicated Adjuster
Year 1 $230,000
Year 2 $236,900
Year 3 $244,007
Optional Year 4 $251,327
Optional Year 5
Services Included in Claims Administration Fee:

Claims Administration
Claim Review Meetings
Swat Team Claim Intake
Designated Account Manager
Litigation Management
Reporting to Excess Reinsurer
Additional Services:

Annual Administration Fee
Bank Charges (one Account)
Storage Fees
On-Line 5020 Reporting
Loss Reports
On-Line System Access
Trust Accounting
Preparation and filing of 1099's
Preparation of SIP reports
FROI/SROI Reporting
Medicare Reporting
Ebill
$258,867
$10,000
Included
Included
Included
Included
Included
Included
Included
Included
Included
Included
Included

Additional Feeds if Required for Unbundled Services $5,000 per feed 322 of 763
Contract for Services Page 15 of 17
Rev 12/22
Pricing guarantee for 18 months. Price subject to increase thereafter with advance notice.

Bill Review Standard fee schedule reduction:
$9.00 per bill plus PPO reduction
Inpatient/outpatient hospital or
surgery center: $500 per bill plus
PPO reduction
PPO reduction: 24%/Anthem 27%
Bills not subject to fee schedule:
24% of reduction
TCM
FCM
$102 per hour
$108 per hour + incidentals
Utilization Review Nurse Review: $120 flat fee
Clinical Nurse Review: $180 per
hour
Physician Review: $235 plus nurse
charge
Pharmacy Review: $385 plus
nurse charge (Genex)
Medical Provider Network
Access (LWP Network)
PPO fee for savings below fee
schedule: 24%
Specialized Network Access
( LWP Network)
Durable Medical Goods: $5.00 per
bill
Expedited Diagnostic Testing:
$5.00 per bill
Physical Therapy Network: $5.00
per bill
Pharmacy Benefit Network: $5.00
per bill (Optum)
Other Services Field Investigation: $88.00 per hour
SIU Related Work: $98.00 per hour
Indexing: $21.00 per claim
Subrogation: 15% of gross
recovery
Lien Resolution: 15% of reduction
323 of 763
Contract for Services Page 16 of 17
Rev 12/22

EXHIBIT C

INSURANCE REQUIREMENTS

MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $2,000,000 per occurrence. 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.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

If the contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the contractor.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its elected and appointed officials, employees, and agents are to be covered as insureds on the auto policy for liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10, 11 85 or both CG 20 10 and CG 20 37 forms if later revisions used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary insurance as respects the City, its elected and appointed officials, employees, and agents. Any insurance or selfinsurance maintained by the City, its elected and appointed officials, employees, or agents shall be excess of the Contractor’s insurance and shall not contribute with it.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the City. 324 of 763
Contract for Services Page 17 of 17
Rev 12/22
Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

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.

Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language 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 Contractor’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. 325 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 22 Section Name: CONSENT CALENDAR Account Number: 10-6611-01 File ID: 23-7568 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Library Department
MEETING DATE: June 05, 2023
SUBJECT:

California State Library Parks Pass Grant – Budget Appropriation RECOMMENDATION:

Adopt a Resolution to approve a supplemental budget appropriation in the amount of $44,634 for a grant awarded by the California State Library to the San Mateo Public Library to support the State Parks Are For Everyone! program.

BACKGROUND:

The California State Library Parks Pass program is a partnership between California State Parks and the California State Library. The Parks Pass program was launched in 2022 with the intent to make it easier for all Californians to visit State Parks and enjoy the benefits of outdoor exploration. Parks passes can be checked out with a valid library card and offer free access to over 200 parks, lakes, beaches and monuments in the California State Parks system. In December 2022, the California State Library opened a grant opportunity specifically targeting efforts with grant opportunities up to $75,000.

The San Mateo Public Library's grant application resulted in an award of $44,634, which will be used to provide circulating outdoor gear, storywalks in parks, or programming inspired by or focused on State Parks and run through February 2024.

BUDGET IMPACT:

Once appropriated, the grant funds will augment the Library’s General Fund expense accounts for Circulation and Technical Services.

ENVIRONMENTAL DETERMINATION:

This activity is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution

STAFF CONTACT
Marcia Mendonca, Senior Management Analyst
[email protected]
6505227805
James Moore, City Librarian
326 of 763

CITY OF SAN MATEO
[email protected]
(650) 522-7802
327 of 763

CITY OF SAN MATEO
RESOLUTION NO. ___ (2023)
AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION OF $44,634 IN GRANT FUNDS FROM THE CALIFORNIA STATE LIBRARY (FISCAL YEAR 2023-24 BUDGET)
WHEREAS, in December 2022, the State Library opened a grant opportunity specifically targeting easier access to State Parks efforts with grant opportunities up to $75,000; and WHEREAS, the San Mateo Public Library's grant application resulted in an award of $44,634, which will be used to provide circulating outdoor gear and programming inspired by or focused on State Parks and run through February 2024; and
WHEREAS, a supplemental budget appropriation in the amount $44,634 of the grant award to the 2023- 2024 Fiscal Year budget is required to finance these efforts; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY FINDS that:

1. This City Council action is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

2. A supplemental budget appropriation to the 2023-2024 Fiscal Year Budget is authorized as follows:
a. $44,634 to augment the Library department General Fund expense accounts for Circulation and Technical Services.
328 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 23 Section Name: CONSENT CALENDAR Account Number: 10-6621-07 File ID: 23-7572 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Library Department
MEETING DATE: June 05, 2023
SUBJECT:

California Library Literacy Services – Budget Appropriation RECOMMENDATION:

Adopt a Resolution to approve a supplemental budget appropriation in the amount of $55,092 for a grant awarded by the California State Library to the San Mateo Public Library to support the Project Read Literacy Program.

BACKGROUND:

In August 2022, the California State Legislature approved $2.5 million annually for California Library Literacy Services to improve existing family literacy activities, programming, and services. The San Mateo Public Library has received a grant of $55,283 from the approved funding for fiscal year 2022-23 to strengthen literacy services for low-literate adults and their families.

BUDGET IMPACT:

Once appropriated, the donated funds will augment the Library's General Fund expense accounts for Children's and Literacy Services.

ENVIRONMENTAL DETERMINATION:

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution

STAFF CONTACT
Marcia Mendonca, Senior Management Analyst
[email protected]
6505227805
James Moore, City Librarian
[email protected]
(650) 522-7802
329 of 763

CITY OF SAN MATEO
RESOLUTION NO. ___ (2023)
AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION OF $55,092 IN GRANT FUNDS FROM THE CALIFORNIA STATE LIBRARY (FISCAL YEAR 2022-23 BUDGET)
WHEREAS, in August 2022, the California State Legislature approved $2.5 million annually for California Library Literacy Services to improve existing family literacy activities, programming and services; and WHEREAS, the San Mateo Public Library has received a grant of $55,092 from the approved funding for 2022-2023 Fiscal Year to strengthen literacy services for low-literate adults and their families; and WHEREAS, a supplemental budget appropriation in the amount $55,092 of the grant award to the 2022- 2023 Fiscal Year budget is required to finance these efforts; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY FINDS that:

2. A supplemental budget appropriation to the 2022-2023 Fiscal Year Budget is authorized as follows:
a. $55,092 to augment the Library department General Fund expense accounts for Children’s and Literacy Services.
330 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 24 Section Name: CONSENT CALENDAR Account Number: 10-1311- File ID: 23-7569 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: June 20, 2023
SUBJECT:

Minimum Wage Enforcement Services – Notice to Extend Agreement RECOMMENDATION:

Approve a notice to extend the agreement with City of San Jose's Office of Equality Assurance for minimum wage ordinance enforcement services in the amount of $30,000 and authorize the City Manager to execute the notice in substantially the form presented.

BACKGROUND:

In August 2016, the City Council adopted an ordinance to increase its local minimum wage based on the regional Consumer Price Index (CPI). In the fall of 2022, City Council amended the minimum wage ordinance to cap the CPI increases to 3.5% per year, include a catch-up provision, and round the wage to the nearest nickel. As of January 1, 2023, the minimum wage for all employees who perform at least two hours of work per week in San Mateo is $16.75 per hour.

To administer the program, the City contracts with the City of San Jose’s Office of Equality Assurance (OEA) for all enforcement efforts on behalf of the City. Much of their work includes answering questions regarding the ordinance, conducting complaint intake, investigating employers, calculating back wages owed, calculating the new minimum wage, and preparing and sending written notices to violators.

From 2017 to 2020, the City’s contract with OEA was a pay-per-service fee with a cap of $30,000 per year, meaning the City was charged based on the hours spent on enforcement each year. However, in 2020, OEA changed their fees from pay-per-service to a flat fee of $15,000 per year, which covers all costs for enforcement.

The City’s current agreement with San Jose is set to end June 30, 2023, but the City has the option to extend the term to June 30, 2025. On February 6, 2023, staff brought forward a draft agreement to extend the term to June 30, 2025, which was approved by the City Council. However, since then, the City of San Jose has elected to use a different document to serve the same purpose. This report includes the new document, which is the Notice of Option to Extend agreement (Attachment 1) for City Council approval to continue City of San Jose’s enforcement services. Although the Notice of Option to Extend amount threshold is within the City Manager’s approval authority, City Council approval is required because this is an interagency agreement.

BUDGET IMPACT:

The cost to enforce the local minimum wage ordinance is $15,000 per year for a total of $30,000 over the two-year period covered by the agreement. This cost is included in the City Manager’s annual budget allocation.

ENVIRONMENTAL DETERMINATION:

This notice option to extend the agreement is not a project subject to CEQA, because it is a government fiscal activity 331 of 763

CITY OF SAN MATEO
which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Notice of Option to Extend Agreement

STAFF CONTACT
Denise Garcia, Management Analyst II
[email protected]
(650) 522-7277
332 of 763

NOTICE OF EXERCISE OF OPTION TO EXTEND AGREEMENT
AGREEMENT TITLE: | AGREEMENT BETWEEN CITY OF SAN MATEO AND THE DATE: CITY OF SAN JOSE FOR MINIMUM WAGE ENFORCEMENT

SERVICES
City of San Mateo
CONTRACTOR 330 W. 20th Avenue

Name and Address: San Mateo, CA 94403
DATE OF OPTION: June 30, 2023
(Date the notice is sent must be consistent with the time for exercise set forth in Agreement)

Pursuant to Section:

Term of Agreement/Option to Extend: The Agreement referenced above; the City of San Mateo (“City”) hereby exercises its option to extend the term under the following

provisions:

[OPTIONNO. | 1o0f1 |

NEW OPTION TERM
Begin Date: July 1,2023
End Date: June 30,2025

| MAXIMUM COMPENSATION for New Option Term: | $30,000
Compensation: San Jose will continue to submit annual invoices to City of San Mateo for Services performed in the following years. City will provide San Jose with the address and person to whom San Jose must submit its invoices. City will pay San Jose at the rates specified in the original agreement 4.1 and 4.2 of this section. Option and any future escalations begin each July 1 upon mutual written

agreement by the Parties.

CITY OF SAN MATEO CITY OF SAN JOSE
a municipal corporation a municipal corporation
By By L4 Name: Drew Corbett Name: Christopher Hickey
Title: City Manager Title: Division Manager — Office of Equality Assurance Form/File No.: T-44812/2003166 City Attorney Approval Date: March 2023 City of San Mateo — Notice of Exercise Option Giles#66027 1 333 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 25 Section Name: CONSENT CALENDAR Account Number: 10-1311 File ID: 23-7557 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: June 05, 2023
SUBJECT:

San Francisco Peninsula Tourism Marketing District (SFPTMD) Formation – Approval RECOMMENDATION:

Adopt a Resolution granting consent to the City of Burlingame to form the San Francisco Peninsula Tourism Marketing District (SFPTMD) and include the City of San Mateo within the boundaries of the district.

BACKGROUND:

In 2001, the San Mateo County Tourism Business Improvement District (SMCTBID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 in the City of Burlingame. The same year, San Mateo City Council adopted Resolution 5 (2001) granting consent allowing the SMCTBID to include the City of San Mateo in the SMCTBID boundary.

The City of Burlingame is the lead jurisdiction for the SMCTBID. As the lead City, Burlingame collects annual assessments on behalf of the SMCTBID and facilitates the legal formation of the District under State law.

The San Mateo County/Silicon Valley Convention and Visitors Bureau dba “The San Francisco Peninsula” (SFP) manages the daily activities of the SMCTBID. SFP seeks to modernize SMCTBID by forming a new District called “San Francisco Peninsula Tourism Marketing District” (SFPTMD), pursuant to the Property and Business Improvement District Law of 1994.

SFP and lodging business owners decided to pursue formation of the SFPTMD in order to create a revenue source devoted to marketing the San Francisco Peninsula area as a tourism, convention, and event destination. The proposed SFPTMD benefit district shares the same boundary as the existing SMCTBID. The boundary of the SMCTBID includes the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated areas of San Mateo County.

If established, the SFPTMD would generate approximately $10,895,479 on an annual basis dedicated to help fund marketing and sales promotion for travel and tourism specific to the San Francisco Peninsula area. Currently, the SFP raises approximately $2.9 million in assessment revenues annually.

TOURISM MARKETING DISTRICTS
Tourism Marketing Districts (TMDs) utilize the efficiencies of private sector operation in the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism.

Lodging business owners within the TMD fund the TMD, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TMD.

The following are a list of benefits of a TMD:
• Assessments cannot be diverted to other government programs; • Promotions are customized to fit the needs of each destination; 334 of 763

CITY OF SAN MATEO
• Districts allow for a wide range of services such as destination marketing, tourism promotion, and sales lead generation;
• Districts are designed, created and governed by those who will pay the assessment; • Districts provide a stable funding source for tourism promotion.

MANAGEMENT DISTRICT PLAN ASSESSMENT RATE
The Management District Plan (Attachment 2) includes the proposed boundary of the SFPTMD, a service plan and budget, and a proposed means of governance. The proposed SFPTMD will include all lodging businesses located within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County.

The proposed annual assessment rate is one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD’s boundaries. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews’ performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The proposed SFPTMD will have a five (5) year life, beginning October 1, 2023, or as soon as possible thereafter, and ending five (5) years from its start date. The assessment will be implemented beginning October 1, 2023, or as soon as possible thereafter. Once per year beginning on the anniversary of SFPTMD formation there is a thirty (30) day period in which business owners paying fifty percent (50%) or more of the assessment may protest and begin proceedings to terminate the SFPTMD.

As the lead jurisdiction for the SFPTMD, the City of Burlingame is responsible for collecting the assessments on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SFPTMD. The City of Burlingame will take all reasonable efforts to collect the assessments from each lodging business. The City of Burlingame will be paid a fee equal to one percent (1%) of the amount of assessment collected or a flat fee of $60,000, whichever is greater each year, to cover its costs of collection and administration.

The SFP has already notified lodging businesses in San Mateo of their intent form the SFPTMD. Six of the nine lodging businesses in San Mateo wrote petitions in support of the new assessment, benefit district name, and their continued participation. On May 15, 2023, the City of Burlingame approved a Resolution of Intent to form the SFPTMD. The City of Burlingame is requesting participating cities to adopt the resolution granting consent to include in the SFPTMD by June 30, 2023. The City of Burlingame is scheduled to hold the final public hearing on July 5, 2023. Staff recommends adopting the resolution granting consent to the City of Burlingame to include the City of San Mateo in the SFPTMD. (Attachment 1) BUDGET IMPACT:

There is no budget impact associated with this approval. There may be an increase in tax collections, because the SFPTMD programs are intended to increase room night sales for assessed lodging businesses within the SFPTMD. The City of Burlingame is responsible for the collection of the assessments.

ENVIRONMENTAL DETERMINATION:

This resolution is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).) 335 of 763

CITY OF SAN MATEO

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 - SFPTMD Management District Plan

STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009
336 of 763
1 CITY OF SAN MATEO
RESOLUTION NO. ____ (2023)

GRANT CONSENT TO THE CITY OF BURLINGAME TO FORM

THE SAN FRANCISCO PENINSULA TOURISM MARKETING DISTRICT (SFPTMD)

IN THE CITY OF SAN MATEO
WHEREAS, in 2001, the San Mateo County Tourism Business Improvement District (SMCTBID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (89 Law) by City of Burlingame Ordinance No. 1648; and
WHEREAS, in 2001, the City of San Mateo granted consent to the City Burlingame to be included within the boundaries of the SMCTBID by San Mateo City Council Resolution No. 5 (2001); and WHEREAS, the City of Burlingame, San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Francisco Peninsula (SFP), and San Mateo County lodging businesses seek to modernize the SMCTBID by forming a new District, the San Francisco Peninsula Tourism Marketing District (SFPTMD), pursuant to the Property and Business Improvement District Law of 1994; and WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City of Burlingame to establish business improvement districts for the purposes of driving increased business sales directly to payors; and
WHEREAS, a portion of the territory proposed to be included in the SFPTMD lies within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Melo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco and the unincorporated area of San Mateo County (the City and County) as shown on the map attached hereto as Exhibit A; and WHEREAS, all current and future lodging businesses within the boundaries of the proposed SFPTMD will benefit directly from improvement activities like marketing and promotional activities which will increase demand for room night sales, meetings, and conventions locally; and WHEREAS, the City Council of the City of Burlingame has requested consent to form the SFPTMD in the City of San Mateo with adoption of Burlingame City Council Resolution No. 049-2023, dated May 15, 2023.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA HEREBY RESOLVES THAT:

1. The above recitals are true and correct.

2. The City of Burlingame is hereby granted consent to include the City of San Mateo in the SFPTMD, for the formation of the SFPTMD and future renewals.

3. The Clerk of the City of San Mateo is hereby directed to transmit a certified copy of this Resolution to the Clerk of the City of Burlingame.

4. This Resolution is effective upon its adoption.
337 of 763
2 Exhibit A

BOUNDARY MAP
338 of 763

SAN FRANCISCO PENINSULA TOURISM

MARKETING DISTRICT

MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. January 23, 2023 2023-2028
339 of 763
Table of Contents
I. OVERVIEW.............................................................................................................................................. 3 II. BACKGROUND ....................................................................................................................................... 5 III. BOUNDARY............................................................................................................................................. 6 IV. ASSESSMENT BUDGET AND SERVICES ............................................................................................ 7 A. ANNUAL SERVICE PLAN...................................................................................................................................7 B. ANNUAL BUDGET ............................................................................................................................................9 C. CALIFORNIA CONSTITUTIONAL COMPLIANCE..................................................................................................9 D. ASSESSMENT ..................................................................................................................................................11 E. PENALTIES AND INTEREST.............................................................................................................................12 F. TIME AND MANNER FOR COLLECTING ASSESSMENTS ....................................................................................13 V. GOVERNANCE ..................................................................................................................................... 14 A. OWNERS’ ASSOCIATION .................................................................................................................................14 B. BROWN ACT AND CALIFORNIA PUBLIC RECORDS ACT COMPLIANCE .............................................................14 C. ANNUAL REPORT...........................................................................................................................................14 APPENDIX 1 – LAW........................................................................................................................................ 15 APPENDIX 2 – ASSESSED BUSINESSES ..................................................................................................... 26 APPENDIX 3 – BENEFITS BY BUSINESS CATEGORY............................................................................. 31 APPENDIX 4 – SMG CONSULTING ANALYSIS.......................................................................................... 33 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com
340 of 763
SFPTMD Management District Plan 3
January 23, 2023
I. OVERVIEW
Developed by the San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Francisco Peninsula (SFP) and San Mateo County lodging businesses, the San Francisco Peninsula Tourism Marketing District (SFPTMD) is an assessment district proposed to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. In 2001, the San Mateo County Tourism Business Improvement District (SMCTBID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (89 Law). This effort seeks to modernize the SMCTBID by disestablishing the 89 Law District and forming a new District, the SFPTMD, pursuant to the Property and Business Improvement District Law of 1994 (94 Law).

Location: The SFPTMD includes all lodging businesses, existing and in the future, located within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County, as shown on the map in Section III.

Services: The SFPTMD is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales, meetings, and conventions. Sales and marketing programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales, meetings, and conventions.

Budget: The total SFPTMD annual assessment budget for the initial year of its five (5) year operation is anticipated to be approximately $10,895,479. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

Cost: The annual assessment rate is one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD’s boundaries. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews’ performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

Collection: The City of Burlingame shall be responsible for collecting the assessments on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SFPTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business. 341 of 763
SFPTMD Management District Plan 4
January 23, 2023
Duration: The SFPTMD will have a five (5) year life, beginning October 1, 2023, or as soon as possible thereafter, and ending five (5) years from its start date. After five (5) years, the SFPTMD may be renewed pursuant to the 94 Law if business owners support continuing the SFPTMD programs. Once per year, beginning on the anniversary of SFPTMD formation, there is a thirty (30) day period in which owners paying fifty percent (50%) or more of the assessment may protest and initiate a hearing on SFPTMD termination.

Management: The San Mateo County/Silicon Valley Convention and Visitors Bureau dba The San Francisco Peninsula (SFP) shall serve as the SFPTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the Burlingame City Council.

The SFP shall create a SFPTMD Committee tasked with determining how SFPTMD funds are spent, within the designated programs in this Plan, subject to final approval by the SFP Board. The SFPTMD Committee shall include lodging business owners or representatives paying the SFPTMD assessment.
342 of 763
SFPTMD Management District Plan 5
January 23, 2023
II. BACKGROUND
TMDs are an evolution of the traditional Business Improvement District. The first TMD was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TMD laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an existing business improvement district law to form a TMD. And, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TMDs without a state law.

California’s TMDs collectively
raise over $300 million annually
for local destination
marketing. With competitors
raising their budgets, and
increasing rivalry for visitor
dollars, it is important that San
Francisco Peninsula tourism
businesses invest in stable,
commerce-specific marketing
programs.

TMDs utilize the efficiencies
of private sector operation in
the market-based promotion of
tourism districts. TMDs allow tourism business owners to organize their efforts to increase commerce. Tourism business owners within the TMD pay an assessment and those funds are used to provide services that increase commerce.

In California, most TMDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.

There are many benefits to TMDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion. 343 of 763
SFPTMD Management District Plan 6
January 23, 2023
III. BOUNDARY
The SFPTMD includes all lodging businesses, existing and in the future, located within the boundaries of the cities of Belmont, Brisbane, Burlingame, East Palo Alto, Foster City, Half Moon Bay, Menlo Park, Millbrae, Pacifica, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and the unincorporated area of San Mateo County, illustrated by the map below. “Lodging business” means: any hotel, motel, inn, bed and breakfast, or other similar structure or portion thereof that is rented for dwelling, lodging, or sleeping purposes on a transient basis. Tourist home or house, studio hotel, bachelor hotel, lodginghouse, roominghouse, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, are not included in the definition of “lodging business.”
The boundary is shown on the map below. A list of lodging businesses proposed to be assessed in the SFPTMD can be found in Appendix 2.
344 of 763
SFPTMD Management District Plan 7
January 23, 2023
IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City of conferring the benefits or granting the privileges. The privileges and services provided with the SFPTMD funds are sales and marketing programs available only to assessed businesses.

A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by the SFP. The table below illustrates the initial annual assessment budget allocations. These activities and allocations will also apply in subsequent years. The total initial assessment budget is $10,895,479.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. However, the City and the SFP board shall have the authority to adjust budget allocations between the categories by no more than twenty (20%) of the total budget per year.

A description of the proposed improvements and activities for the initial year of operation is below.

The same activities are proposed for subsequent years. In the event of a legal challenge against the SFPTMD, any and all assessment funds may be used for the costs of defending the SFPTMD. In the first year of operation, the costs of creating the SFPTMD may be repaid by deducting repayment funds proportionally from budget categories.

Each budget category includes all costs related to providing that service. For example, the sales and marketing budget includes the cost of staff time dedicated to overseeing and implementing the sales and marketing program. Staff time dedicated purely to administrative tasks is allocated to the administrative portion of the budget. The costs of an individual staff member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by the SFP Board on an as- needed basis.

Sales, Marketing, &
Advocacy,
$9,805,931 , 90%
Administration &
Operations,
$871,638 , 8%
Contingency/Reserve,
$108,955 , 1%
City Collection Fee,
$108,955 , 1%
Initial Annual Assessment Budget:
$10,895,479
345 of 763
SFPTMD Management District Plan 8
January 23, 2023
Sales, Marketing, & Advocacy
A sales and marketing program will promote assessed businesses as tourist, meeting, and event destinations. The sales and marketing program will have a central theme of promoting San Francisco Peninsula as a desirable place for overnight visits. The program will have the goal of increasing overnight visitation and room night sales at assessed businesses, and may include the following activities:
• Funds to support group business to offset costs within the destination, thereby generating room nights for assessed businesses;
• Payment of bid fees, incentives or other costs associated with bringing large scale events to the destination that generate room nights for assessed businesses; • Funds to support events and/or local partnerships that increase the public notoriety of the destination as a tourist, meetings, or event destination – thereby increasing consumer demand for assessed businesses;
• Support of public relation strategies that increase the profile of the destination as a tourist, meetings, or event destination – thereby increasing consumer demand for assessed businesses; • Strategic partnerships, sponsorships, or other alliances that reinforce the destination within the travel marketplace and position the San Francisco Peninsula as a destination of choice for meetings, events, and leisure travel to assessed businesses; • Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation and room sales to assessed businesses; • Print ads in magazines and newspapers, television ads, and radio ads targeted at potential visitors to drive overnight visitation and room sales to assessed businesses; • Attendance of trade shows to promote assessed businesses; • Familiarization tours of the destination and assessed businesses; • Preparation and production of collateral promotional materials such as brochures, flyers and maps featuring assessed businesses;
• Attendance of professional industry conferences and affiliation events to promote assessed businesses;
• Lead generation activities designed to attract tourists and group events to assessed businesses; • Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;
• Education of hospitality staff on service and safety (related to alcohol and food) designed to create a visitor experience that will bring repeat visits to assessed businesses; • Education of lodging business management and the Owners’ Association on advocacy and marketing strategies best suited to meet assessed businesses’ needs; and • Other activities that increase the profile and notoriety of The San Francisco Peninsula as an overnight travel destination and promote greater room night sales for assessed businesses.

Administration & Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, legal, and accounting fees.

Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program, administration or renewal costs at the discretion of the SFP Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve 346 of 763
SFPTMD Management District Plan 9
January 23, 2023
fund shall be set by the SFP Board. Contingency/reserve funds may be spent on SFPTMD programs or administrative and renewal costs in such proportions as determined by the SFP Board. The reserve fund may be used for the costs of renewing the SFPTMD.

City Collection Fee
As lead agency, the City of Burlingame shall retain a fee equal to one percent (1%) of the amount of assessment collected or a flat fee of $60,000, whichever is greater each year, to cover their costs of collection and administration.

B. Annual Budget
The total five (5) year improvement and service plan budget is projected at approximately $10,895,479 annually, or $64,132,237 through 2028. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do.

The following chart has been prepared based on a five-year projection developed by SMG Consulting.

The full report can be found in Appendix 4.

Fiscal
Year
Sales,
Marketing,
& Advocacy
Administration
& Operations
Contingency
/ Reserve
City Collection
Fee Total
2023-24 $9,805,931 $871,638 $108,955 $108,955 $10,895,479 2024-25 $10,612,716 $943,353 $117,919 $117,919 $11,791,907 2025-26 $11,437,986 $1,016,710 $127,089 $127,089 $12,708,873 2026-27 $12,422,508 $1,104,223 $138,028 $138,028 $13,802,787 2027-28 $13,439,872 $1,194,655 $149,332 $149,332 $14,933,191 Total $57,719,013 $5,130,579 $641,322 $641,322 $64,132,237 C. California Constitutional Compliance
The SFPTMD assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the SFPTMD assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the SFPTMD, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the 1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
347 of 763
SFPTMD Management District Plan 10
January 23, 2023
privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific businesses within the SFPTMD. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the SFPTMD, and are narrowly tailored. SFPTMD funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non-assessed lodging businesses in SFPTMD programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the SFP Corporation to enter into private contracts with non-assessed lodging businesses for the provision of services to those businesses.

The assessment imposed by this SFPTMD is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed lodging businesses will be provided only to lodging businesses paying the district assessment, with marketing and sales programs promoting lodging businesses paying the SFPTMD assessment. The marketing and sales programs will be designed to increase room night sales at each assessed lodging businesses. Because they are necessary to provide the marketing and sales programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.

Although the SFPTMD, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a non-payor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.”4 The legislature has recognized that marketing and promotions services like those to be provided by the SFPTMD are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
SFPTMD services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the SFP, and reports submitted on an annual basis to the City. Only assessed 2 Cal. Const. art XIII C § 1(e)(1)
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
348 of 763
SFPTMD Management District Plan 11
January 23, 2023
lodging businesses will be featured in marketing materials, receive sales leads generated from SFPTMD-funded activities, be featured in advertising campaigns, and benefit from other SFPTMDfunded services. Non-assessed lodging businesses will not receive these, nor any other, SFPTMDfunded services and benefits.

The SFPTMD-funded programs are all targeted directly at and feature only assessed businesses. It is, however, possible that there will be a spill-over benefit to non-assessed businesses. If non-assessed lodging businesses receive incremental room nights, that portion of the promotion or program generating those room nights shall be paid with non-SFPTMD funds. SFPTMD funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.

D. Assessment
The annual assessment rate is one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and

0.75% for all other lodging businesses within the SFPTMD’s boundaries. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews’ performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The services provided in the SFPTMD are all targeted to benefit payors, however, not all programs benefit payors equally. The determination of the assessment rates of one- and one-half percent (1.5%) of gross short-term sleeping room rental revenue for lodging businesses with 5,000 square feet or more of dedicated meeting space, and 0.75% for all other lodging businesses within the SFPTMD’s boundaries, was calculated based on benefit received by payors. SMG Consulting was engaged to conduct a Hotel Revenue Proportionality Estimate analysis to quantify the estimated benefit the lodging business types will receive from SFPTMD services. By analyzing the projected number of rooms sold and the total amount of revenue estimated to be generated from sales and marketing programs, SMG Consulting found that properties with 5,000 square feet or more of dedicated meeting space will receive approximately double the amount of benefit to all other lodging businesses. The SFPTMD Sales, Marketing, and Advocacy program included in the budget has services that are intended to drive convention and meetings to the SFPTMD. Since lodging businesses with 5,000 square feet or more of dedicated meeting space are uniquely suited to accommodate large conventions and will benefit from overnight stays as a result of SFPTMD services intended to bring such business activity to the SFPTMD, they are assessed at a higher rate than other lodging businesses in the SFPTMD.

The term “dedicated meeting space” as used herein means: a permanent room or space whose primary use is dedicated for group and social meetings, meals, and/or functions. The space has been designed for and is marketed and sold as group or event function space.

The term “gross sleeping room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a lodging business valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross sleeping room rental revenue shall not include any federal, state, or local taxes collected, including but not 349 of 763
SFPTMD Management District Plan 12
January 23, 2023
limited to transient occupancy taxes. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days; stays provided to airline cockpit and/or cabin crews pursuant to an agreement between a hotel and an airline, which is in furtherance of or to facilitate such crews’ performance of their jobs for the airline, including layovers between flights; employees of the state or federal government if room charges are paid directly by their employing agency and copies of official travel orders are submitted as applicable; and any properly credentialed officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the SFPTMD assessment is identified separately it shall be disclosed as the “SFPTMD Assessment.” As an alternative, the disclosure may include the amount of the SFPTMD assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.

Bonds shall not be issued.

E. Penalties and Interest
The SFPTMD shall reimburse the City of Burlingame for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent SFPTMD assessment are sought to be recovered in the same collection action by the City, the SFPTMD shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:

1. Original Delinquency: Any lodging business that fails to remit any assessment imposed within the time required shall pay a penalty of five percent (5%) of the amount of the assessment in addition to the amount of the assessment.

2. Continued Delinquency: Any lodging business that fails to remit any delinquent remittance on or before a period of fifteen (15) days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of five percent (5%) of the amount of the assessment in addition to the amount of the assessment and the five percent (5%) penalty first imposed. An additional penalty of five percent (5%) shall be paid for each fifteen (15) days thereafter which the remittance is delinquent.

3. Fraud: If the City determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated in subsections (1) and (2) of this section.

4. Interest: In addition to the penalties imposed, any lodging business that fails to remit any assessment imposed shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
350 of 763
SFPTMD Management District Plan 13
January 23, 2023
F. Time and Manner for Collecting Assessments
The SFPTMD assessment will be implemented beginning October 1, 2023, or as soon as possible thereafter, and ending five (5) years from its start date. The City of Burlingame shall be responsible for collecting the assessment on a monthly basis, (including any delinquencies, penalties and interest) from each lodging business located in the boundaries of the SFPTMD. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.
351 of 763
SFPTMD Management District Plan 14
January 23, 2023
V. GOVERNANCE
A. Owners’ Association
The Burlingame City Council, through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SFPTMD as defined in Streets and Highways Code §36612. The San Francisco Peninsula (SFP) will serve as the SFPTMD’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with the Management District Plan, and must provide annual reports to Burlingame City Council.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the SFP board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action.

C. Annual Report
The SFP shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
352 of 763
SFPTMD Management District Plan 15
January 23, 2023
APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2022 SUPPLEMENT *** (ALL 2021 LEGISLATION)

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts.
(b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.

Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those special benefits. The 353 of 763
SFPTMD Management District Plan 16
January 23, 2023
mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.

Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions. 36608. “City”
354 of 763
SFPTMD Management District Plan 17
January 23, 2023
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district. 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
355 of 763
SFPTMD Management District Plan 18
January 23, 2023
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
“Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in 356 of 763
SFPTMD Management District Plan 19
January 23, 2023
determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied.
(b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part.
(d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision. (f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against his or her property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. 357 of 763
SFPTMD Management District Plan 20
January 23, 2023
(i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof.
(2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a property-based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel. (l) In a property-based district, the total amount of all special benefits to be conferred upon the properties located within the property-based district.
(m) In a property-based district, the total amount of general benefits, if any. (n) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (o) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council.
(c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the 358 of 763
SFPTMD Management District Plan 21
January 23, 2023
revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627.
36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district.
(2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone.
36628.5. Assessments on businesses or property owners
359 of 763
SFPTMD Management District Plan 22
January 23, 2023
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any property-based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625.

An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention 360 of 763
SFPTMD Management District Plan 23
January 23, 2023
(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications.

If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. 361 of 763
SFPTMD Management District Plan 24
January 23, 2023
(3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses.
(c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the 362 of 763
SFPTMD Management District Plan 25
January 23, 2023
owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
363 of 763
SFPTMD Management District Plan 26
January 23, 2023
APPENDIX 2 – ASSESSED BUSINESSES

HOTEL NAME SITE ADDRESS CITY ST ZIP

AC HOTEL SAN FRANCISCO
AIRPORT/OYSTER POINT WATERFRONT 1333 Veterans Blvd
So. San
Francisco CA 94080
AIRPORT INN 751 Airport Blvd
So. San
Francisco CA 94080
ALL SEASONS LODGE 800 El Camino Real
So. San
Francisco CA 94080
ALOFT SAN FRANCISCO AIRPORT 401 E. Millbrae Ave Millbrae CA 94030 AMERICANA INN MOTEL 760 El Camino Real
So. San
Francisco CA 94080
AMERICAS BEST VALUE INN - PACIFICA 2160 Francisco Blvd Pacifica CA 94044 ANCHOR INN PACIFICA 500 San Pedro Ave Pacifica CA 94044

ARISTOCRAT HOTEL, BW SIGNATURE
COLLECTION 1410 Cabrillo Hwy S Half Moon Bay CA 94019
ATHERTON INN 1201 W Selby Lane Redwood City CA 94061
ATHERTON PARK INN & SUITES 2834 El Camino Real Redwood City CA 94061 BAY LANDING HOTEL 1550 Bayshore Hwy Burlingame CA 94010 BAYHILL INN 950 El Camino Real San Bruno CA 94066
BEACH HOUSE HOTEL 4100 Cabrillo Hwy N Half Moon Bay CA 94019 BELMONT PALMS 700 El Camino Real Belmont CA 94002
BEST WESTERN COYOTE POINT 480 N Bayshore Blvd San Mateo CA 94401 BEST WESTERN INN 316 El Camino Real Redwood City CA 94062

BEST WESTERN PLUS EXECUTIVE
SUITES 25 5th Ave Redwood City CA 94063

BEST WESTERN PLUS GROSVENOR
HOTEL 380 S Airport Blvd
So. San
Francisco CA 94080
BUDGET INN 2526 El Camino Real Redwood City CA 94061
CANYON RANCH WELLNESS RETREAT 16350 Skyline Blvd Woodside CA 94062 CAPRI MOTEL 2380 El Camino Real Redwood City CA 94063
THE CATRINA HOTEL 2110 S El Camino Real San Mateo CA 94403 COMFORT INN & SUITES - SAN BRUNO 611 San Bruno Ave E San Bruno CA 94066 COMFORT INN & SUITES SFO NORTH 121 E. Grand Ave
So. San
Francisco CA 94080
COSTANOA LODGE+CAMP+RESORT 2001 Rossi Rd Pescadero CA 94060 COUNTRY INN & SUITES BY RADISSON 251 El Camino Real San Carlos CA 94070 COURTYARD REDWOOD CITY 600 Bair Island Rd Redwood City CA 94063 COURTYARD SAN FRANCISCO AIRPORT 1050 Bayhill Dr San Bruno CA 94066 COURTYARD SAN MATEO FOSTER CITY 550 Shell Blvd Foster City CA 94404

CROWNE PLAZA FOSTER CITY-SAN
MATEO 1221 Chess Dr Foster City CA 94404
CROWNE PLAZA S.F. AIRPORT 1177 Airport Blvd Burlingame CA 94010 CYPRESS INN ON MIRAMAR BEACH 407 Mirada Rd Half Moon Bay CA 94019 DAYS INN - REDWOOD CITY 2650 El Camino Real Redwood City CA 94061 DAYS INN S.F. AIRPORT-OYSTER POINT -
SSF 1113 Airport Blvd
So. San
Francisco CA 94080
DELUXE INN - REDWOOD CITY 1402 Stafford St Redwood City CA 94062 364 of 763
SFPTMD Management District Plan 27
January 23, 2023
DELUXE INN - SSF 920 El Camino Real
So. San
Francisco CA 94080
DOUBLETREE BY HILTON S.F. AIRPORT 835 Airport Blvd Burlingame CA 94010 DOUBLETREE BY HILTON S.F. AIRPORT
NORTH
5000 Sierra Point
Parkway Brisbane CA 94005

DOUBLETREE BY HILTON SF / SOUTH
AIRPORT BLVD 275 S Airport Blvd
So. San
Francisco CA 94080
THE DYLAN HOTEL AT SFO 110 S El Camino Real Millbrae CA 94030 EMBASSY SUITES S.F. AIRPORT SOUTH
SAN FRANCISCO 250 Gateway Blvd
So. San
Francisco CA 94080
EMBASSY SUITES S.F. AIRPORT -
WATERFRONT 150 Anza Blvd Burlingame CA 94010
EXTENDED STAY AMERICA - BELMONT 120 Sem Lane Belmont CA 94002

EXTENDED STAY AMERICA - SAN
CARLOS 3 Circle Star Way San Carlos CA 94070

EXTENDED STAY AMERICA - SAN
MATEO 1830 Gateway Dr San Mateo CA 94404

FAIRFIELD INN & SUITES SAN
FRANCISCO PACIFICA 500 Old County Rd Pacifica CA 94044

FAIRFIELD INN & SUITES SAN
FRANCISCO SAN CARLOS 555 Skyway Rd San Carlos CA 94070

FAIRFIELD INN & SUITES SFO OYSTER
POINT AREA 127 W. Harris Avenue
So. San
Francisco CA 94080

FOUR POINTS BY SHERATON HOTEL &
SUITES 264 S Airport Blvd
So. San
Francisco CA 94080
FOUR SEASONS HOTEL SILICON VALLEY 2050 University Ave East Palo Alto CA 94303 GARDEN MOTEL 1690 Broadway Redwood City CA 94063
GATEWAY INN & SUITES 516 El Camino Real San Bruno CA 94066 GOOD LIVING INN 1562 El Camino Real San Carlos CA 94070 GOOD NITE INN 485 Veterans Blvd Redwood City CA 94063
GRAND BAY SAN FRANCISCO 223 Twin Dolphin Dr Redwood City CA 94065 GRAND HYATT AT SFO 55 S. McDonnell Road San Francisco CA 94128 HALF MOON BAY INN 401 Main St Half Moon Bay CA 94019
HALF MOON BAY LODGE 2400 Cabrillo Hwy S Half Moon Bay CA 94019

HAMPTON INN & SUITES SFO SOUTH -
BURLINGAME 1755 Bayshore Hwy Burlingame CA 94010
HAMPTON INN & SUITES - SAN MATEO 2940 S. Norfolk St. San Mateo CA 94403 HAMPTON INN SFO NORTH - SSF 300 Gateway Blvd
So. San
Francisco CA 94080
HARBOR VIEW INN 51 Ave Alhambra El Granada CA 94018
HILTON GARDEN INN SAN MATEO 2000 Bridgepoint Circle San Mateo CA 94404

HILTON GARDEN INN SFO -
BURLINGAME 765 Airport Blvd Burlingame CA 94010

HILTON GARDEN INN - SFO NORTH -
SSF 670 Gateway Blvd
So. San
Francisco CA 94080
HILTON S.F. AIRPORT BAYFRONT 600 Airport Blvd Burlingame CA 94010

HOLIDAY INN & SUITES SAN MATEO-SF
SFO 330 N Bayshore Blvd San Mateo CA 94401

HOLIDAY INN EXPRESS & SUITES
BELMONT 1650 El Camino Real Belmont CA 94002

HOLIDAY INN EXPRESS REDWOOD CITY
CENTRAL 1836 El Camino Real Redwood City CA 94063

HOLIDAY INN EXPRESS SFO NORTH -
SSF 373 S Airport Blvd
So. San
Francisco CA 94080
365 of 763
SFPTMD Management District Plan 28
January 23, 2023

HOLIDAY INN EXPRESS SFO SOUTH -
BURLINGAME 1250 Bayshore Hwy Burlingame CA 94010
HOME2 SUITES BY HILTON SFO NORTH 550 Gateway Blvd
So. San
Francisco CA 94080

HOMEWOOD SUITES BY HILTON
BELMONT 1201 Shoreway Road Belmont CA 94002

HOMEWOOD SUITES BY HILTON SFO
AIRPORT NORTH 2000 Shoreline Court Brisbane CA 94005
HOTEL 1550 1550 El Camino Real San Bruno CA 94066
HOTEL ALUXOR 500 El Camino Real San Bruno CA 94066
HOTEL AURA SFO 190 El Camino Real San Bruno CA 94066
HOTEL BELMONT 560 El Camino Real Belmont CA 94002
HOTEL FOCUS SFO 111 Mitchell Ave
So. San
Francisco CA 94080
HOTEL NOVA SFO BY FAIRBRIDGE 410 S Airport Blvd
So. San
Francisco CA 94080
HOTEL V 222 S Airport Blvd
So. San
Francisco CA 94080

HYATT HOUSE BELMONT/REDWOOD
SHORES 400 Concourse Dr Belmont CA 94002
HYATT PLACE SAN CARLOS 26 El Camino Real San Carlos CA 94070

HYATT REGENCY SAN FRANCISCO
AIRPORT 1333 Bayshore Hwy Burlingame CA 94010
INN @ BAYSHORE 140 N Bayshore Blvd San Mateo CA 94401
INN AT MAVERICKS 346 Princeton Ave El Granada CA 94018

INN AT ROCKAWAY
200 Rockaway Beach
Ave Pacifica CA 94044
INN BY THE SFO 701 Airport Blvd
So. San
Francisco CA 94080
LA QUINTA INN & SUITES S.F. AIRPORT
WEST 1390 El Camino Real Millbrae CA 94030
LA QUINTA INN S.F. AIRPORT NORTH 20 Airport Blvd
So. San
Francisco CA 94080
LARKSPUR LANDING HOTEL SSF 690 Gateway Blvd
So. San
Francisco CA 94080
LIA HOTEL 950 El Camino Real San Carlos CA 94070

LIGHTHOUSE HOTEL
105 Rockaway Beach
Ave Pacifica CA 94044

MARRIOTT FAIRFIELD INN & SUITES
SFO 250 El Camino Real Millbrae CA 94030
MILL ROSE INN 615 Mill St Half Moon Bay CA 94019
MILLWOOD INN & SUITES 1375 El Camino Real Millbrae CA 94030 THE MIRAMAR INN & SUITES 3020 Cabrillo Hwy N Half Moon Bay CA 94019 MOTEL 6 - BELMONT 1101 Shoreway Rd Belmont CA 94002
NANTUCKET WHALE INN 779 Main St Half Moon Bay CA 94019
NICHE HOTEL 868 Main St Redwood City CA 94063
OCEAN VIEW INN 8425 Cabrillo Hwy Montara CA 94037
THE OCEANFRONT HOTEL 211 Mirada Rd Half Moon Bay CA 94019 OCEANO HOTEL & SPA 280 Capistrano Rd Half Moon Bay CA 94019 PACIFICA BEACH HOTEL 525 Crespi Dr Pacifica CA 94044
PARK POINTE HOTEL 245 S. Airport Blvd
So. San
Francisco CA 94080
PESCADERO CREEK INN 393 Stage Rd Pescadero CA 94060
366 of 763
SFPTMD Management District Plan 29
January 23, 2023
QUALITY INN HALF MOON BAY 2930 Cabrillo Hwy N Half Moon Bay CA 94019 RAMADA LIMITED SUITES 721 Airport Blvd
So. San
Francisco CA 94080
REDWOOD CREEK INN 1090 El Camino Real Redwood City CA 94063 REDWOOD MOTOR COURT 3706 Rolison Rd Redwood City CA 94063 REGENCY INN SFO 411 San Bruno Ave E San Bruno CA 94066

RESIDENCE INN SAN FRANCISCO
AIRPORT/MILLBRAE 161 N. Rollins Road Millbrae CA 94030

RESIDENCE INN REDWOOD CITY SAN
CARLOS 800 E. San Carlos Ave San Carlos CA 94070

RESIDENCE INN SAN FRANCISCO
AIRPORT/SAN MATEO 2000 Winward Way San Mateo CA 94404

THE RITZ-CARLTON, HALF MOON BAY
One Miramontes Point
Rd Half Moon Bay CA 94019
RITZ INN 151 El Camino Real San Bruno CA 94066
ROYAL INN 120 Hickey Blvd
So. San
Francisco CA 94080
SAN BENITO HOUSE 356 Main St Half Moon Bay CA 94019
SAN CARLOS INN 1140 Morse Blvd San Carlos CA 94070

SAN FRANCISCO AIRPORT MARRIOTT
WATERFRONT 1800 Old Bayshore Hwy Burlingame CA 94010
SAN MATEO MARRIOTT 1770 So. Amphlett Blvd San Mateo CA 94402

SEA BREEZE MOTEL
100 Rockaway Beach
Ave Pacifica CA 94044
SEAL COVE INN 221 Cypress Ave Moss Beach CA 94038
SEQUOIA INN 526 El Camino Real Redwood City CA 94063
SFO AIRPORT HOTEL, EL RANCHO INN 1100 El Camino Real Millbrae CA 94030 SILICON VALLEY INN 630 El Camino Real Belmont CA 94002
SONESTA ES SUITES SFO SAN BRUNO 1350 Huntington San Bruno CA 94066

SONESTA ES SUITES SFO OYSTER POINT
WATERFRONT 1350 Veterans Blvd
So. San
Francisco CA 94080

SONESTA SELECT SFO OYSTER POINT
WATERFRONT 1300 Veterans Blvd
So. San
Francisco CA 94080

SPRINGHILL SUITES BELMONT
REDWOOD SHORES 1401 Shoreway Rd Belmont CA 94002
SUPER 8 S.F. AIRPORT - SAN BRUNO 421 El Camino Real San Bruno CA 94066

TOWNEPLACE SUITES SAN MATEO
FOSTER CITY 1299 Chess Drive Foster City CA 94404
TRAVELERS INN 100 Hickey Blvd
So. San
Francisco CA 94080
TRAVELODGE SFO NORTH 326 S Airport Blvd
So. San
Francisco CA 94080
VAGABOND INN EXECUTIVE S.F.

AIRPORT BAYFRONT 1640 Old Bayshore Hwy Burlingame CA 94010

VILLA MONTES HOTEL, ASCEND HOTEL
COLLECTION 620 El Camino Real San Bruno CA 94066
THE WESTIN S.F. AIRPORT 1 Old Bayshore Hwy Millbrae CA 94030 ZABALLA HOUSE BED & BREAKFAST 324 Main St Half Moon Bay CA 94019 Hotel Nia
200 Independence
Drive Menlo Park CA 94025
Park James 1400 El Camino Real Menlo Park CA 94025
Rosewood Sand Hill 2825 Sand Hill Road Menlo Park CA 94025 367 of 763
SFPTMD Management District Plan 30
January 23, 2023
Stanford Park Hotel 100 El Camino Real Menlo Park CA 94025 Residence Inn
555 Glenwood
Avenue Menlo Park CA 94025
Best Western Plus Riviera 15 El Camino Real Menlo Park CA 94025 Hotel Lucent 727 El Camino Real Menlo Park CA 94025
Menlo Park Inn 1315 El Camino Real Menlo Park CA 94025
Red Cottage Inn 1704 El Camino Real Menlo Park CA 94025 368 of 763
SFPTMD Management District Plan 31
January 23, 2023
APPENDIX 3 – BENEFITS BY BUSINESS CATEGORY
Program Service
Tier 1
(1.5%)
Tier 2
(0.75%)
General Listing on www.thesanfranciscopeninsula.com with link to hotel booking page X X General Inclusion in Sales, Marketing and Promotional Opportunities X X
General Inclusion in SFP's Consumer Brochures
X X
General Access to SFP's research reports and insights
X X
General Represented by SFP at industry conferences and events X X
General
Access to California Hotel Lodging Association's industry advocacy efforts and training materials
X X
Consumer Opportunity to participate in Consumer Marketing Campaigns X X
Consumer Public Relations participation opportunities
X X
Consumer Familiarization Tour (Press and Influencer) Opportunities X X
Consumer Inclusion Opportunity in Social Media Efforts
X X
Consumer Inclusion Opportunity in Destination Video and Photo Shoots X X
Consumer New project and special event opportunities
X X
Travel Trade Trade Show Opportunities
X X
Travel Trade Sales Mission Opportunities
X X
Travel Trade Lead Opportunities
X X
Travel Trade Familiarization Tour Leads (Press and Travel Trade) Opportunities X X
Meetings Lead Distribution
X
Meetings Site Inspections
X
Meetings Convention Services Support
X
Meetings Opportunity to participate in Sales Missions
X
Meetings Opportunity to participate in Client Events
X
Meetings Industry tradeshow participation
X
Meetings Participation in local industry chapter meetings and events X
Meetings Familiarization Tours
X
Meetings Marketing Campaigns
X
Meetings Inclusion in Meetings Market Brochures
X
Meetings Opportunity for Sponsorship of Group Events
X
Meetings
Custom Event Landing Page for Groups: Things To Do Nearby With Your Selected Venue (Itinerary)
X
369 of 763
SFPTMD Management District Plan 32
January 23, 2023
Meetings Distribution of hot rates and dates to planners X
Meetings Co-op advertising opportunities in key meeting publications X
Meetings Social media mentions/posts promoting groups space X
Meetings Inclusion on Meeting Planner section of website X
Meetings Opportunity to be highlighted in meeting planner newsletter X
Meetings Access to SF Travel group leads via our alliance with SFT X
370 of 763
SFPTMD Management District Plan 33
January 23, 2023
APPENDIX 4 – SMG CONSULTING ANALYSIS

371 of 763
SFPTMD Management District Plan 34
January 23, 2023
SF Peninsula
Tourism Business Improvement District Pro Forma Review
372 of 763
SFPTMD Management District Plan 35
January 23, 2023
Overview
In 2001, the Organization established a Tourism Business Improvement District (TBID) under the Parking and Business Improvement Area Law of 1989 (’89 Law) and now wishes to convert to a Tourism Marketing District (TMD) under the Property and Business Improvement District Law of 1994 (’94 Law).

The organization is moving forward with a Tourism Business Improvement District (TBID) transition that will increase its funding above $6 million annually to be available for tourism promotion efforts. The TBID contribution is a significant budget increase for the organization. In developing the proposal for the TBID renewal and the subsequent approval of the lodging industry, the organization staff has prepared a TMD Benefits Proforma to estimate the potential return on investment from the new TBID funds.

This staff assessment includes the proposed allocation and use of new funds for different tourism promotion efforts (sales, advertising, public relations, social media, etc.) and the projected return on investment for those funds.

Proforma Review
The TMD Benefits Proforma review includes a review of the staff proforma to check the assumptions and estimates and make suggestions and recommendations.

Scope of Work
The following is a review of the proforma developed for the TBID renewal. The analysis was done using the information supplied by The San Francisco Peninsula CVB. Project elements include the following:

I. DEVELOP SMITH TRAVEL RESEARCH TRENDLINE AND ANNUAL GROWTH RATE FOR LODGING REVENUE.

DEVELOP MULTI-YEAR FORECAST.

Ø DETERMINE THE PROJECTABLE RATE OF GROWTH.
•REVIEW STAFF DRAFT PROFORMA, INCLUDING ASSUMPTIONS AND FINAL ESTIMATES.

I. COMPARE PROFORMA ESTIMATES WITH TRENDLINE AND ASSESS WITH POTENTIALLY DIFFERENT SCENARIOS (HIGH, MEDIUM, AND LOW ESTIMATES).

Limiting Conditions
The following analysis and estimates are based on the best information and time available. The results and opinions provided are a guide for consideration, and we do not claim as to the accuracy of the final results.
373 of 763
SFPTMD Management District Plan 36
January 23, 2023
Model Development
We developed an SF Peninsula Tourism Economic Model to develop lodging revenue and room night projections with the addition of new properties and the potential of Menlo Park Inclusion.

The model was developed utilizing the past ten years of monthly lodging data from Smith Travel Research. The model measures a variety of economic activities, including the following:

II. LODGING REVENUE PROJECTIONS THROUGH 2027
III. ROOM NIGHT PROJECTION THROUGH 2027
IV. TBID REVENUE WITHOUT MENLO PARK
V. TBID REVENUE WITH MENLO PARK
VI. TBIB REVENUE WITH NEW PROPERTIES
VII. TBID REVENUE WITHOUT NEW PROPERTIES.

The SF Peninsula Tourism Economic Model can be adjusted to test or consider different scenarios.

Model Methodology
The future growth of ADR and room nights is using a Bayesian Structural Times Series (BSTS) model, a technique for fitting historical data and forecasting future trends (Scott and Varian, Predicting the Present with Bayesian Structural Time Series 2013). BSTS was chosen for its ability to forecast future trends, including seasonal variation, using robust time series data. In this case, data is available in monthly intervals from July 2012. This model was fit by specifying a semi-local linear trend. Confidence intervals bound a mean forecast to quantify the degree of uncertainty in the future (Scott, Fitting Bayesian structural time series with the bsts R package 2017).

Rather than having the pandemic disruption influence the forecasts, only data from July 2012 through December 2019 was taken as input. Revenue is simply forecast as the product of ADR and room nights.

Given the fact that the STR reports track all cities in San Mateo County, the revenue forecast is reduced in proportion to the number of room nights in the TMD (15,699/17,190) or 91.3 percent.

TMD fee revenue is also forecast in proportion to available rooms, with 42 percent A-level property rooms paying 1.5 percent of gross room revenue. The balance is paid by B-level property rooms at 0.75 percent.

Construction of three new B-level properties is underway and will bring 451 rooms online. These rooms are assumed to be available from January 2023. There are 533 A-level property rooms and 338 B-level property rooms in Menlo Park. Potential gross room and TMD fee revenue is forecast on the basis of room count proportionality.

Model Assumptions
The model forecasts mean values of ADR and room nights along with 2.5 percent confidence intervals. This report is based on mean values. By constructing the model in this manner, we are 374 of 763
SFPTMD Management District Plan 37
January 23, 2023
assuming that the conditions supporting ADR and room night growth prior to the pandemic will continue from 2023 forward.

Sources of variation include the impact of macroeconomic conditions, actual timing of new construction (planned and unplanned), promotions and policies such as airline crew waivers.

Model Limitations
The baseline SF Peninsula Tourism Economic Model provides a static look based on a given set of assumptions. Forecasts of future events are inherently uncertain as the recent pandemic reminded us. As noted above, the model can be adjusted to estimate specific scenarios in detail in which case the relative differences generally provide the most value.

Findings
Table 1 below summarizes Room Nights, Revenue, and Average Daily Rate (ADR) projections.

Table 1: Room Night, Revenue, and Average Daily Rate Projections 2021-2027 A. THE MODEL INCLUDES GROWTH RATE PROJECTIONS FOR EACH OF THOSE CATEGORIES. NOTE THE SIGNIFICANT REVENUE GROWTH PROJECTION IN 2022 AND 2023, AFTER WHICH THE GROWTH SLOWS DOWN INTO A MORE CONSISTENT PATTERN AFTER 2023. (SEE TABLE 1 ABOVE) B. THE TMD BENEFITS PROFORMA DEVELOPED BY STAFF HAS LODGING RATES BETWEEN $200 AND $293,

WHICH IS WITHIN ESTIMATES OR THE PROJECTED AVERAGE DAILY RATE OF THE SF PENINSULA TOURISM ECONOMIC MODEL. (SEE TABLE 2)
A. REGARDING TBID REVENUE PROJECTION, THE TMD BENEFITS PROFORMA ANTICIPATES TBID REVENUE OF APPROXIMATELY $6M. BASED ON THE SF PENINSULA TOURISM ECONOMIC MODEL'S ASSUMPTIONS, TBID COLLECTIONS COULD BE HIGHER STARTING IN 2022 (APPROXIMATELY $8M). (SEE TABLE 2)
B. THE MODEL CONSIDERS THE NEW CONSTRUCTION OF HOTELS (451 UNITS) WHICH INCREASES THE POTENTIAL TBID REVENUE GENERATION BY APPROXIMATELY $207,000. (SEE TABLE 2) C. ADDITIONALLY, THE MODEL CONSIDERS THE POTENTIAL ADDITION OF MENLO PARK HOTELS BEING A PART OF THE TBID. THE ADDITION OF MENLO PARK HOTELS WOULD INCREASE TBID CONTRIBUTIONS BY APPROXIMATELY $638,000 STARTING IN 2023. (SEE TABLE 2) 2021 2022 2023 2024 2025 2026 2027
Room nights 3,201,672 3,273,894 3,356,784 3,470,192 3,592,148 3,720,575 3,824,263 RN annual growth 2.3% 2.5% 3.4% 3.5% 3.6% 2.8%
Revenue (thousands) $430,563 $784,357 $1,053,955 $1,140,669 $1,229,371 $1,335,188 $1,444,536 Rev annual growth 82.2% 34.4% 8.2% 7.8% 8.6% 8.2%
ADR $134 $240 $314 $329 $342 $359 $378
ADR annual growth 78.2% 31.1% 4.7% 4.1% 4.9% 5.3%
375 of 763
SFPTMD Management District Plan 38
January 23, 2023
Table 2: TMD Room Revenue and Fee Projections
Inventory Notes:

Changes in Hotel Inventory
318 rooms lost to Project Home Key (housing the un-housed) during 2020/2021 Possibly December 15, 2022 or early 2023
Red Roof Inn, Burlingame
213 Rooms
Possibly in 2023
El Rancho Inn, Millbrae
219 Rooms
2023 (Buyer is getting financing together, no set month for demolishing.) Holiday Inn Express, Burlingame
148 Rooms
Possibly 2023 (Entitlements approved Sept 2022. No word when developer will start work.) Comfort Inn & Suites, South San Francisco
166 Rooms
2021 2022 2023 2024 2025 2026 2027
A rooms 6607 Base Year
Total available 15699 TBID Projection
B rooms 9092
A Revenue $101,204,557 $330,100,605 $405,089,050 $438,417,832 $472,510,240 $513,181,465 $555,203,395

1.50% $2,718,068 $4,951,509 $6,076,336 $6,576,267 $7,087,654 $7,697,722 $8,328,141 B Revenue $249,358,533 $454,256,803 $557,449,620 $603,313,899 $650,229,026 $706,197,349 $764,032,666

0.75%
Total TBID/TMD $4,588,257 $8,358,435 $10,257,208 $11,101,122 $11,964,371 $12,994,202 $14,058,366 New Construction
New rooms 2023 (B) 451 Total w/new hotels $10,464,596 $11,325,573 $12,206,276 $13,256,929 $14,342,629 % increase in B 5.0%
Menlo Park
New rooms 2023 (A) 533
% increase in A 8.1%
New rooms 2023 (B) 338
% increase in B 3.5%
Total w/Menlo $10,895,479 $11,791,907 $12,708,873 $13,802,787 $14,933,191 376 of 763
SFPTMD Management District Plan 39
January 23, 2023
Appendix
377 of 763
SFPTMD Management District Plan 40
January 23, 2023
Appendix 1: San Mateo County Room Revenue
Source: STR Reports and Consulting Team.
$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Annual San Mateo County Room Revenue
Historic STR Report Values through October 2022 and Forecast to 2027
378 of 763
SFPTMD Management District Plan 41
January 23, 2023
Appendix 2: San Mateo County ADR
Source: STR Reports and Consulting Team.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
Jul-12
Apr-13
Jan-14
Oct-14
Jul-15
Apr-16
Jan-17
Oct-17
Jul-18
Apr-19
Jan-20
Oct-20
Jul-21
Apr-22
Jan-23
Oct-23
Jul-24
Apr-25
Jan-26
Oct-26
Jul-27
Apr-28
Jan-29
Oct-29
Jul-30
Apr-31
Jan-32
Oct-32
Jul-33
Apr-34
Monthly San Mateo County ADR Forecast to 2034
Historical 97.5% quantile Forecast mean 2.5% quantile
379 of 763
SFPTMD Management District Plan 42
January 23, 2023
Appendix 3: San Mateo County Room Nights
Source: STR Reports and Consulting Team.
0 200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jul-12
Apr-13
Jan-14
Oct-14
Jul-15
Apr-16
Jan-17
Oct-17
Jul-18
Apr-19
Jan-20
Oct-20
Jul-21
Apr-22
Jan-23
Oct-23
Jul-24
Apr-25
Jan-26
Oct-26
Jul-27
Apr-28
Jan-29
Oct-29
Jul-30
Apr-31
Jan-32
Oct-32
Jul-33
Apr-34
Monthly San Mateo County Room Night Forecast to 2034
Historical 97.5% quantile Forecast mean 2.5% quantile
380 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 26 Section Name: CONSENT CALENDAR Account Number: 10-2311 File ID: 23-7600 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Human Resources Department
MEETING DATE: June 05, 2023
SUBJECT:

Interim City Manager – Appointment
RECOMMENDATION:

Adopt a Resolution to approve the appointment of Christina Horrisberger as the Interim City Manager.

BACKGROUND:

City Manager Drew Corbett is retiring effective July 1, 2023, and his last official day of employment is scheduled for June 30, 2023. Following an extensive recruitment process, the City Council is in the process of selecting the next City Manager.

As the new City Manager is not expected to be appointed prior to Drew Corbett’s retirement, an Interim City Manager will need to be appointed by the City Council. At its May 22nd closed session meeting regarding the recruitment of the new City Manager, the City Council directed Drew Corbett to bring forward a recommended appointment of a current department head to serve in the role of Interim City Manager. Drew Corbett recommends the City Council appoint Community Development Director Christina Horrisberger as Interim City Manager from July 1, 2023, until a new City Manager is appointed. Ms. Horrisberger meets the minimum qualifications for the position of City Manager.

Pursuant to the City Manager, City Attorney, Department Head, and Deputy Director Compensation Plan, temporary assignments to a higher classification are paid at the rate of the higher classification. This sets the monthly salary for the Interim City Manager at $23,655.31 consistent with the City Manager salary approved by council on March 7, 2022.

BUDGET IMPACT:

The associated salary and benefits for the interim assignment can be absorbed within the City's operating budget, and no supplemental budget appropriation is required.

ENVIRONMENTAL DETERMINATION:

This action is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution
381 of 763

CITY OF SAN MATEO

STAFF CONTACT
Teresa Abrahamsohn, Director of Human Resources
[email protected]
650.522.7276
382 of 763

CITY OF SAN MATEO
RESOLUTION NO. ____ (2023)

APPOINTMENT OF CHRISTINA HORRISBERGER AS INTERIM CITY MANAGER WHEREAS, City Manager Drew Corbett is retiring and his last official day of employment is scheduled for June 30, 2023; and
WHEREAS, the City Council desires to appoint Community Development Director Christina Horrisberger as Interim City Manager from July 1, 2023 until a new City Manager is appointed, and the monthly compensation for Interim City Manager is $23,655.31.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:

1. This action is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).

2. The City Council appoints Christina Horrisberger as Interim City Manager from July 1, 2023 until a new City Manager is appointed.

3. The City Council establishes the monthly salary for the Interim City Manager at $23,655.31. 383 of 763

THE FOLLOWING PUBLIC

COMMENTS WERE SUBMITTED

FOLLOWING THE PUBLICATION

OF THE AGENDA PACKET
384 of 763
From: Daniel Gilbrech
To: Clerk
Cc: Daniel Gilbrech
Subject: June 5th Consent Calendar Items #26 & #27
Date: Sunday, June 4, 2023 10:16:23 PM
To All Concerned;
#26: Why wasn't Ms. Kathy Kleinbaum considered to fill in as interim City Manager?
Doesn't she have better qualifications to fill this position? Also, if you choose Ms. Christina Horrisberge, her first month's salary should deduct $13,000 to pay back our City for her previous decision on 100 Humboldt Appeal.
#27: Will this letter "as written" expose our City to more potential litigation and Liability in the manner it is written?
Doesn't it expose our sitting Mayor for the acts of all of our Council? Also, Shouldn't all of the Council sign the letter since they are all responsible for the debacle that transpired?
What does our City Attorney recommend?
Also, Shouldn't all of the Council sign the letter since they are all responsible for what debacle and for what transpired?
Sincerely,
Daniel C Gilbrech
San Mateo Resident
385 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 27 Section Name: CONSENT CALENDAR Account Number: 10-1311 File ID: 23-7577 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: June 05, 2023
SUBJECT:

Letter of Apology – Council Approval
RECOMMENDATION:

Review and approve a letter of apology to four members of the community for impacts related to the selection of the Mayor and the appointment of the fifth Councilmember in December 2022.

BACKGROUND:

At the May 1, 2023 regular Council meeting, there was an agenda item to discuss the results of the District Attorney's investigation into alleged Brown Act violations and vote trading related to the appointment of the fifth Councilmember. As a result of this discussion, a majority of Council agreed to write a letter of apology to four individuals impacted by these allegations (Cliff Robbins, Joe Goethals, Nicole Fernandez, and David Burruto). Council appointed Deputy Mayor Nash and Councilmember Loraine as the sub-committee to draft the letter, which is included as Attachment 1.

BUDGET IMPACT:

There is no budget impact related to this action.

ENVIRONMENTAL DETERMINATION:

This letter is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Draft Letter

STAFF CONTACT
Drew Corbett, City Manager
[email protected]
(650) 522-7002
386 of 763

The San Mateo City Council apologizes to Mr. Cliff Robbins, Mr. Joe Goethals, Ms. Nicole Fernandez and Mr. David Burruto. In the opinion of this Council, these individuals were subjected to unnecessary reputational harm and distress because of improper actions taken by then-Councilmember Amourence Lee at the December 12, 2023 City Council meeting.

During the December 12th meeting to appoint the fifth Councilmember, Councilmember Lee said multiple people approached her with offers insinuating she could become mayor in return for supporting Mr. Robbins’ candidacy.

Councilmember Lee claimed that these offers represented a potential Brown Act violation and possible vote trading, but she would not reveal who approached her.

If Councilmember Lee had concerns, she should have first fully disclosed the communications and the identities of the involved parties to the San Mateo City Attorney, who could have advised her (and, potentially, the Council) on appropriate action to take. She did not do this. Instead, at the December 12th Council meeting, Councilmember Lee publicly made an unsubstantiated allegation that the process had been tainted, and asked Council to remove Mr.

Robbins from consideration as a candidate.

Councilmember Lee’s refusal to fully disclose the communications behind her claims prompted the City Attorney to refer the matter to the San Mateo County District Attorney’s office. The office investigated whether certain state laws regarding the Brown Act and vote trading may have been violated. During this investigation, Councilmember Lee named Mr. Goethals, Ms. Fernandez and Mr. Burruto as the individuals who approached her with alleged vote trading offers. The District Attorney’s office found “no basis to conclude there was any violation of the Brown Act nor evidence of an illegal attempt to corrupt the voting process.” It is the opinion of this Council that this public assertion of unsubstantiated claims brought unwarranted harm to the reputations of members of our community. This is anathema to the good governance that this Council seeks to implement. Mr. Goethals is a former mayor of San Mateo. Ms. Fernandez and Mr. Burruto are former Chairs of the San Mateo County Democratic Party. Mr. Robbins is a former Parks and Recreation Commissioner and Vice Chair of the San Mateo County Democratic Party. He currently is Chair of the Sustainability and Infrastructure Commission and Chair of the General Plan Subcommittee.

This Council strongly believes that individuals must have the right to freely address their elected officials and advocate for their beliefs and positions. In our view, this incident, and others like it, could have a chilling effect on this fundamental tenet of democracy. Accordingly, the Council has committed to strengthen its Code of Conduct, and the Code of Conduct of its Boards and Commissions, to increase clarity, accountability, and consequences for potential future deviations.

The San Mateo City Council therefore offers a sincere apology to Mr. Robbins, Mr. Goethals, Ms. Fernandez and Mr.

Burruto for the personal and reputational harm done to them by this series of events. We look forward to learning from this and moving forward together, to benefit our community and City.

The above statement was approved on June 5, 2023 by a vote of x to y

CITY OF SAN MATEO

CITY COUNCIL

330 W. 20th Avenue
San Mateo, CA 94403-1338
www.cityofsanmateo.org
(650) 522-7040
387 of 763
From: Patrice Olds
To: Martin McTaggart
Subject: FW: Letter of Apology: Item #27
Date: Monday, June 5, 2023 1:46:28 PM
Patrice M. Olds, MMC
City Clerk
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403-1388
[email protected]
www.cityofsanmateo.org
(650) 522-7042
From: Lisa Taner
Sent: Monday, June 5, 2023 1:39 PM
To: City Council (San Mateo) <[email protected]> Subject: Letter of Apology: Item #27
All,
I wanted to thank the Council majority for acknowledging just how much damage has been done due to Councilmember Lee's antics since last December, and for moving forward to try to start the healing process.

I want to thank Lisa Diaz-Nash and Adam Loraine for writing the apology letter that Mayor Lee should have written herself. While I fervently disagree that this should be coming from the Council, residents can expect nothing from Lee, so you all are left to pick up the pieces for her. This is, sadly, the most we can expect.

I know everyone wants to move forward to accomplish business - but there really can't be further healing until Lee's term is over. She just refuses to adjust the jib on her boat and would rather run aground than 'mea culpa.' Her continued failures to come forward and accept responsibility for her actions (without playing victim or asking for apologies to be made to her) have created the current reality.

For the time being, the rest of you have a large and heavy load to haul. Keep at it. Looking forward to seeing your load lighten come January.

Sincerely,
Lisa Taner
388 of 763
From: Patrice Olds
To: Martin McTaggart
Subject: FW: Letter of Apology
Date: Monday, June 5, 2023 11:15:22 AM
Patrice M. Olds, MMC
City Clerk
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403-1388
[email protected]
www.cityofsanmateo.org
(650) 522-7042
From: William Cendak
Sent: Sunday, June 4, 2023 7:16 PM
To: City Council (San Mateo) <[email protected]> Cc:

Subject: Letter of Apology
Dear Council Members.

After we cut through the "cow pies" we are left with a Mayor who is a complete and utter liar.

The sad part is you all are accepting this fact, shame on her, but also shame on you! I think you all need to be recalled and we elect people who are honest, have a sense of responsibility to the citizens of San Mateo and are not influenced by people from outside our city.

Guess what, Scott Wiener and the majority of the state represenitives don't live in San Mateo and don't really care how they disrupt our city with their "social engineering" agenda. Buy a clue!
If there are any more secret meetings of the council and outside influencers, we will need to recall you
immediately, one and all!
Sincerely,
William J. Cendak
A citizen of San Mateo and a voter
389 of 763
From:

To: City Council (San Mateo); Clerk
Subject: Item #27 on June 5, 2023 Council Meeting
Date: Sunday, June 4, 2023 9:32:54 PM
This item should be removed from the Consent Calendar since the indications are that the entire City Council is unlikely to vote in favor.

A Council letter of apology does not go far enough, since the perpetrator of the falsehoods and all the problems is the one who should be issuing the apology. Amourence Lee appears incapable of seeing the error of her ways.
390 of 763
From:

To: Clerk
Cc:

Subject: June 5th Consent Calendar Items #26 & #27
Date: Sunday, June 4, 2023 10:16:23 PM
To All Concerned;
#26: Why wasn't Ms. Kathy Kleinbaum considered to fill in as interim City Manager?
Doesn't she have better qualifications to fill this position? Also, if you choose Ms. Christina Horrisberge, her first month's salary should deduct $13,000 to pay back our City for her previous decision on 100 Humboldt Appeal.
#27: Will this letter "as written" expose our City to more potential litigation and Liability in the manner it is written?
Doesn't it expose our sitting Mayor for the acts of all of our Council? Also, Shouldn't all of the Council sign the letter since they are all responsible for the debacle that transpired?
What does our City Attorney recommend?
Also, Shouldn't all of the Council sign the letter since they are all responsible for what debacle and for what transpired?
Sincerely,
Daniel C Gilbrech
San Mateo Resident
391 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 28 Section Name: CONSENT CALENDAR Account Number: 10-1511 File ID: 23-7567 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: June 05, 2023
SUBJECT:
100 N. Humboldt St. Property Owner Appeal – Statement of Decision RECOMMENDATION:

Adopt a Statement of Decision granting the property owner’s appeal related to permanent relocation benefits to a tenant household who resided at 100 N. Humboldt Street.

BACKGROUND:

On May 15, 2023, the City Council conducted a hearing on the property owner’s appeal from a notice compelling the property owner of 100 N. Humboldt Street to reimburse the City for permanent relocation benefits distributed to a tenant household due to unlawful substandard living conditions. The notice was issued pursuant to San Mateo Municipal Code Chapter 7.50 (Property Owner Obligations with Respect to Tenants Displaced from Unsafe or Substandard Units). The City Council granted the appeal and directed staff to prepare a written Statement of Decision for its adoption on the consent calendar at the June 5, 2023 City Council regular meeting. The written statement explaining the legal and factual basis for the Council's decision is included with this report as Attachment 1.

BUDGET IMPACT:

The money used to provide relocation benefits by the City was from the Emergency Relocation Assistance Fund that was established to advance tenant assistance in urgent situations. Because the appeal was granted, the funds provided by the City, approximately $13,000, will not be recouped.

ENVIRONMENTAL DETERMINATION:

This item is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Statement of Decision Granting the Appeal

STAFF CONTACT
Prasanna W. Rasiah, City Attorney
[email protected]
(650) 522-7022
392 of 763
1 Statement of Decision by the San Mateo City Council in the matter of the Property Owner Appeal of the Notice to Pay Relocation Benefits
(100 North Humboldt Street)
Section 1. Introduction
San Mateo Municipal Code (SMMC) Section 7.50.030(a) requires property owners to pay for the relocation of their tenants when the tenants are displaced by City code enforcement activities in response to substandard housing conditions. SMMC Section 7.50.030(b) specifies instances where tenants are not considered displaced due to code enforcement activities, such as when the noncomplying condition(s) was created by the tenant household or the tenant’s guests and not created by the property owner, the tenant household unreasonably prevented the property owner from undertaking maintenance or repairs that would have prevented or rectified the noncomplying condition, or the conditions are solely from damage from an earthquake, fire, flood, natural disaster, civil disturbance or accident outside the control of the property owner and was not caused by acts or negligence of the property owner or due to pre-existing conditions or violations.

SMMC Section 7.50.100 provides that property owners may contest a decision regarding relocation payments by appealing to the City Council.

In this case, on January 10, 2023, City Code Enforcement staff received a complaint of non-functional heaters, roof leaks, collapsed portions of ceiling in the kitchen and hallway, rats entering the home through holes in the roof and ceiling, and a lack of hot water reaching the kitchen sink and a bathroom shower at 100 North Humboldt Street (the Property). On January 13, 2023, Code Enforcement staff inspected the Property and observed numerous substandard conditions. On January 26, 2023, staff subsequently issued a notice detailing eight (8) immediate life and safety conditions and 14 additional violations as a basis for requiring Trina Pierce (Property Owner) to correct the substandard conditions by February 27, 2023, requiring the Property to be vacated by January 30, 2023, and to pay the displaced tenants relocation benefits in the amount of $13,849 (“Notice”). The Property Owner and her attorney immediately contacted the City, at which point the City suspended the Notice pending further internal review and investigation.

On January 30, 2023, City staff including Code Enforcement and Building staff, reinspected the Property.

City Building staff determined the Property was uninhabitable and subsequently red-tagged the residence. On January 31, 2023, the City received documentation from Property Owner’s attorney contesting the Notice and asserting the substandard conditions were generally created by the tenants, the Property Owner did not have notice of any of the substandard conditions, and the tenants’ complaints were motivated by a pending eviction.

After a review of the most recent inspection, and documentation received from the Property Owner, the City amended its Notice detailing 10 immediate life safety conditions and 15 additional violations as a basis for requiring the Property Owner to correct the substandard conditions by February 27, 2023, requiring the Property to be immediately vacated, and to pay the tenants relocation benefits in the amount of $12,736. Due to the red-tag and need to immediately vacate the residence, the City advanced relocation benefits to the tenant household as authorized by SMMC Section 7.50.070. The Property Owner appealed the Amended Notice, and after conducting a hearing on the matter, the City Council granted the appeal and directed staff to return to the Council with a Statement of Decision for formal adoption.

SMMC Section 7.50.100(c)(1) requires, in relevant part, that “the City Council shall issue a written decision to uphold or cancel all or part of the decision, order, or determination regarding relocation benefits… and shall state the reasons for that decision,” and that “[t]he decision of the City Council shall include findings regarding the evidence in the record and submitted at the hearing, as well as the existence of any proper grounds for the order to pay relocation benefits or the notice of penalty or fine.” This statement of decision is 393 of 763
2 issued pursuant to these requirements.

Section 2. Applicable Law
SMMC Section 7.50.030 provides, in relevant part, as follows:
a) A tenant household shall be eligible for relocation payments from a property owner under this chapter if the tenant household is displaced from its dwelling or room due to the City's code enforcement activities. For purposes of this chapter, a tenant household shall be deemed to be displaced from its dwelling or room due to code enforcement activities in either of the following circumstances:

1. The tenant household vacates its dwelling or room (whether or not the property owner requires vacation) after (a) the City or a court has issued a notice to vacate, notice to abate lifethreatening condition, or declaration of substandard condition covering that dwelling or room, and (b) the abatement period has expired without correction of the noncomplying condition (if a time period to abate the noncomplying condition is specified in such notice or declaration and the City or court does not order earlier vacation).
…
b) Notwithstanding subsection (a) above, pursuant to subsection (b), a tenant household shall not be deemed displaced due to code enforcement activities in any of the following cases:
…

2. The property owner demonstrates to the satisfaction of the Director that the noncomplying condition was created by the tenant household or the tenant household's guests or invitees, and was not created by the property owner or the property owner's agent, or that the condition giving rise to the code enforcement activities existed at the time that the tenant household occupied the dwelling or room and that the tenant household occupied the dwelling or room for the purpose of receiving relocation benefits;

3. The property owner demonstrates to the satisfaction of the Director that the tenant household unreasonably prevented the property owner or the property owner's agent from undertaking maintenance or repairs that would have prevented or rectified the noncomplying condition; or …

7. The tenant household is required to vacate the dwelling or room due solely to damage resulting from an earthquake, fire, flood, natural disaster, civil disturbance, or accident outside the control of the property owner, if (a) the vacation is required within six months of such event, and (b) the property owner demonstrates to the satisfaction of the Director that such damage was not caused by the acts or the negligence of the property owner or by a preexisting condition in the building in violation of applicable building, housing, fire, or other health and safety codes.

SMMC Section 7.50.070 provides, in relevant part, as follows:
(a) The City, in its sole discretion and subject to funding availability, may make any of the payments required of a property owner under this chapter, including advancing eligible tenant household(s) reimbursable "moving expenses" and "temporary housing accommodations costs" as each of these terms are defined below in section 7.50.090(b). Such payments shall continue to be an obligation of the property owner and shall be reimbursed by the property owner to the City. The City may consider making such payments in its own discretion or if a tenant household makes a written request to the Department following a property owner's failure to pay the required payments within the period mandated under section 7.50.060, but in no event later than sixty (60) days following the tenant 394 of 763
3 household's vacation of the dwelling or room. Prior to any City payment to a tenant household, the Director shall make a determination regarding the eligibility of the tenant household for relocation payments. The Department will make reasonable efforts to contact a representative of the property owner prior to making the determination or authorizing the City's payment. However, failure to give prior notice to the property owner shall not relieve the property owner of any obligations under this chapter.
…
SMMC Section 7.50.020 provides as follows:
“Permanent displacement” means the vacating of a dwelling or room by a tenant household due to code enforcement activities when that dwelling or room (or an equivalent dwelling or room in the building or complex), in the judgment of the Enforcement Officer, cannot foreseeably be brought into code compliance or will not otherwise be available for re-occupancy by the tenant household within ninety (90) days from the date of vacating; or when the tenant household and the property owner have agreed that the displacement shall be permanent.
"Temporary displacement" means the vacating of a dwelling or room by a tenant household due to code enforcement activities when that dwelling or room (or an equivalent dwelling or room in the same building or complex) will foreseeably be brought into code compliance and be available for re-occupancy by the tenant household within ninety (90) days from the date of vacating; or when the tenant household and property owner have otherwise agreed that the displacement shall be considered temporary. "Tenant household" means one or more individuals who rent or lease a dwelling or room as their primary residence and who share living expenses.

Section 3. Evidence Presented
At the hearing on this matter, City staff presented documentary evidence and testimony to establish the following:
a) The Property is a three-bedroom single family home with 10 occupants listed on the lease agreement, not including an unknown number of children (collectively “Tenants” or “Tenant Household”).
b) On January 10, 2023, Code Enforcement staff received a complaint of substandard conditions existing at the Property consisting of non-functional heaters, roof leaks for over one year and tarp being used instead of repairs, collapsed portions of ceiling in the kitchen and hallway, rats entering the home through holes in the roof and ceiling, and a lack of hot water reaching the kitchen sink and a bathroom shower despite the Property Owner replacing the water heater. c) On January 13, 2023, Code Enforcement staff inspected the Property and observed the following immediate life safety conditions:

1. Visible mold in both the walls and ceilings located in the bathroom and in two bedrooms.

2. Lack of hot water reaching the minimum temperature of 110 degrees.

3. Lack of required heat in the dwelling.

4. Multiple electrical hazards throughout the house.
395 of 763
4 5. Multiple ceiling and roof holes causing water leaks and damage throughout the dwelling.

6. Lack of required smoke detectors in the entire dwelling.

7. Rodents/pests in the dwelling.

8. Termite damage.

On January 26, 2023, Code Enforcement subsequently issued a Warning Letter to Abate a Public Nuisance and Declaration of Substandard Dwelling Condition and Notice to Vacate (“Notice”) to the Property Owner detailing the observed substandard conditions requiring compliance by February 27, 2023, ordering vacation of the residence by January 30, 2023, and ordering the Property Owner to pay the tenants permanent relocation benefits in the amount of $13,849 because the Property could not foreseeably be brought into code compliance within 90 days from the date of the Notice due to the extensive violations.
d) After discussions with the Property Owner and her attorney, Code Enforcement staff suspended the Notice pending further review and investigation.
e) On January 30, 2023, Code Enforcement and Building staff re-inspected the Property and observed the following immediate life safety conditions:

1. Visible mold in both the walls and ceilings located in the bathroom and in two bedrooms.

2. Lack of hot water reaching the minimum temperature of 110 degrees.

3. Lack of required heat in the dwelling.

4. Multiple electrical hazards throughout the house.

5. Multiple ceiling and roof holes causing water leaks and damage throughout the dwelling.

6. Lack of required smoke detectors in the entire dwelling.

7. Rodents/pests in the dwelling.

8. Termite damage.

9. Inadequate light and ventilation.

10. Possible gas leaking from kitchen appliance.

Due to these conditions, Building staff determined the Property was uninhabitable and subsequently issued a red-tag prohibiting any entry and occupation of the Property. f) On January 31, 2023, Code Enforcement staff received a letter and corresponding documentation from the Property Owner’s attorney alleging the substandard conditions were generally created by the tenants, the Property Owner did not have notice of any of the substandard conditions, and the tenants’ complaints were motivated by a pending eviction. g) On February 1, 2023, the City issued an Amended Notice detailing the observed immediate life safety conditions observed during the reinspection on January 31, 2023, and requiring the Property Owner to correct all substandard conditions by February 27, 2023, requiring the Property to be immediately vacated, and to pay the tenants permanent relocation benefits in the amount of 396 of 763
5 $12,736.
h) On February 3, 2023, the City advanced permanent relocation benefits to the tenant household due to their need to immediately vacate the Property in the following amounts:

1. The HUD rate for a three-bedroom unit for three months ($3,912 x 3) = $11,736.

2. An immediate vacation allowance of $1,000.

3. The total sum of the permanent relocation costs in the amount of $12,736. i) On February 9, 2023, the Property Owner appealed the Amended Notice. This same day, a permit for a new roof was issued.
j) From February 13 through February 24, 2023, the City engaged in discussions with the Property Owner in an attempt to resolve the matter.
k) The City has granted multiple extensions, but the Property remains non-compliant due to various substandard conditions.
l) The replaced water heater, which was initially installed without a permit, has received a permit. m) On April 17, 2023, the City issued a Final Notice to Abate a Public Nuisance again requiring submission of a mold report from a certified Environmental Hygienist, to cease all unpermitted construction (including demolition), and to schedule an inspection with Code Enforcement. n) On April 21, 2023, the City received a mold report, dated March 8, 2023, from the Property Owner confirming the presence of mold and mold abatement recommendations. o) On May 5, 2023, the City reinspected the Property and found ongoing unpermitted work occurring. p) On May 9, 2023, the City issued a Stop Work Notice due to the unpermitted work. q) For purposes of the Appeal Hearing, the City pursued reimbursement for permanent relocation benefits advanced to the Tenants related to the following uninhabitable conditions:

1. Visible mold on walls and ceilings of the bathroom and two bedrooms.

2. Lack of hot water reaching 110 degrees.

3. Lack of required hearing in the dwelling.

4. Multiple ceiling and roof holes causing water leaks and damage throughout the dwelling.

5. Rodents/pests in dwelling.

Section 4. Defenses Asserted
At the hearing on this matter, the Property Owner argued that she was not required to pay the Tenants any permanent relocation costs on the following grounds:
a) The Property was in good condition when the Tenants moved in and the Property Owner responded appropriately to needed repairs.
b) The Tenants were responsible for damage to the Property. 397 of 763
6 c) The Property Owner was not made aware of the uninhabitable conditions described in the Notice. d) The Tenants actively concealed the uninhabitable conditions described in the Notice from the Property Owner.
e) The Property Owner appropriately addressed the roof leaks and was in the process of having the roof repaired.
f) The Tenants were motivated by a pending eviction, and their complaints and submitted evidence was not credible due to this fact.
g) The City should have considered the pending eviction when reviewing the weight of the evidence. h) The City should have been more communicative with the Property Owner when it issued the Notice and Amended Notice.

Section 5. Findings of Fact
Based upon the evidence presented at the hearing on this matter, the City Council makes the following findings of fact:
a) The Property is a three-bedroom single family home with ten adult occupants, and an unknown number of children.
b) On October 26, 2022, the Property Owner received a quote for a new roof and was in the planning stages of repairing the roof. The Property Owner’s temporary patches to the dwelling and use of a tarp to cover the roof were adequate mitigation measures to address a leaking roof and collapsed portions of ceiling pending scheduling of a permanent repair. c) On November 17, 2022, the Property Owner served a 60-day notice to vacate to the Tenants. d) On January 10, 2023, Code Enforcement staff received a complaint of substandard conditions existing at the Property consisting of non-functional heaters, roof leaks for over one year and tarp being used instead of repairs, collapsed portions of ceiling in the kitchen and hallway, rats entering the home through holes in the roof and ceiling, and a lack of hot water reaching the kitchen sink and a bathroom shower despite the Property Owner replacing the water heater. e) On January 13, 2023, Code Enforcement staff inspected the Property and observed the following immediate life safety conditions:

1. Visible mold in both the walls and ceilings located in the bathroom and in two bedrooms.

2. Lack of hot water reaching the minimum temperature of 110 degrees.

3. Lack of required heat in the dwelling.

4. Multiple electrical hazards throughout the house.

5. Multiple ceiling and roof holes causing water leaks and damage throughout the dwelling.

6. Lack of required smoke detectors in the entire dwelling.

7. Rodents/pests in the dwelling.

8. Termite damage.
398 of 763
7 On January 26, 2023, Code Enforcement subsequently issued a Warning Letter to Abate a Public Nuisance and Declaration of Substandard Dwelling Condition and Notice to Vacate to the Property (“Notice”) Owner detailing the observed substandard conditions requiring compliance by February 27, 2023, ordering vacation of the residence by January 30, 2023, and ordering the Property Owner to pay the tenants permanent relocation benefits in the amount of $13,849 because the Property could not foreseeably be brought into code compliance within 90 days from the date of the Notice due to the extensive violations.
f) From January 13 through January 26, 2023, Code Enforcement staff did not contact the Property Owner.
g) From January 26 through January 31, 2023, Code Enforcement staff discussed the Notice with the Property Owner and Property Owner’s attorney.
h) On January 30, 2023, Code Enforcement and Building staff re-inspected the Property and observed the following immediate life safety conditions:

1. Visible mold in both the walls and ceilings located in the bathroom and in two bedrooms.

2. Lack of hot water reaching the minimum temperature of 110 degrees.

3. Lack of required heat in the dwelling.

4. Multiple electrical hazards throughout the house.

5. Multiple ceiling and roof holes causing water leaks and damage throughout the dwelling.

6. Lack of required smoke detectors in the entire dwelling.

7. Rodents/pests in the dwelling.

8. Termite damage.

9. Inadequate light and ventilation.

10. Possible gas leaking from kitchen appliance.

Due to these conditions, Building staff determined the Property was uninhabitable and subsequently issued a red-tag prohibiting any entry and occupation of the Property. i) On January 31, 2023, Code Enforcement staff received a letter and corresponding documentation from the Property Owner’s attorney alleging the substandard conditions were generally created by the tenants, the Property Owner did not have notice of any of the substandard conditions, and the tenants’ complaints were motivated by a pending eviction. j) On February 1, 2023, the City issued an Amended Notice detailing the observed immediate life safety conditions observed during the reinspection on January 31, 2023, and requiring the Property Owner to correct all substandard conditions by February 27, 2023, requiring the Property to be immediately vacated, and to pay the tenants permanent relocation benefits in the amount of $12,736.
k) On February 3, 2023, the City advanced permanent relocation benefits to the tenant household due to their need to immediately vacate the Property in the following amounts:
399 of 763
8 1. The HUD rate for a three-bedroom unit for three months ($3,912 x 3) = $11,736.

2. An immediate vacation allowance of $1,000.

3. The total sum of the permanent relocation costs in the amount of $12,736. l) On February 9, 2023, the Property Owner appealed the Amended Notice. m) For purposes of the Appeal Hearing, the City pursued reimbursement for permanent relocation benefits advanced to the Tenants related to the following uninhabitable conditions:

1. Visible mold on walls and ceilings of the bathroom and two bedrooms.

2. Lack of hot water reaching 110 degrees.

3. Lack of required hearing in the dwelling.

4. Multiple ceiling and roof holes causing water leaks and damage throughout the dwelling.

5. Rodents/pests in dwelling.
n) The City should have been communicative with the Property Owner between January 13 through January 26, 2023 when initially determining whether the Tenants were eligible for relocation benefits.

Section 6. Conclusion
Based upon the findings above, the City Council, by a 3-1 vote, grants the appeal of the Property Owner and finds the Property Owner is not required to reimburse the City for permanent relocation benefits advanced to the Tenants in the amount of $12,736.

Section 7.

The parties to this proceeding are informed that the time within which judicial review of this decision may be sought is governed by Section 1094.6 of the California Code of Civil Procedure.

Amourence Lee, Mayor Date
400 of 763

THE FOLLOWING PUBLIC

COMMENTS WERE SUBMITTED

FOLLOWING THE PUBLICATION

OF THE AGENDA PACKET
401 of 763
From: Patrice Olds
To: Martin McTaggart
Subject: FW: Support Red-tag ordinance of 2019
Date: Monday, June 5, 2023 11:25:32 AM
Patrice M. Olds, MMC
City Clerk
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403-1388
[email protected]
www.cityofsanmateo.org
(650) 522-7042
From: Denise Black
Sent: Monday, June 5, 2023 11:20 AM
To: City Council (San Mateo) <[email protected]> Subject: Support Red-tag ordinance of 2019
Please reverse yourselves and deny the landlord appeal in the case of the Latino family as described in Rudy Espinoza Murray’s column in The Daily Journal, June 5, 2023. The landlord permitted, nay assured, unsafe and unsanitary conditions by not providing basic human right necessities like hit water and heat. The landlord should be cited and arrested and be made to return the tenant’s rent since 2018, when Google Maps images prove owner gross negligence. More proof followed.

Denise Black
--
402 of 763
From:

To: City Council (San Mateo)
Cc: Clerk
Subject: Item # 28 tonight"s regular council meeting
Date: Monday, June 5, 2023 8:22:52 AM
Dear All,
After looking at the facts of this case at 100 North Humboldt st. I feel the Council wrongly decided to not assess the relocation costs onto the Landlord based on the simple facts that the bulk of the serious defects at the property were beyond the control of the tenants. Please uphold the letter and spirit of our Red Tag ordinance and reconsider this decision.

Thanks all
Mike Caggiano
Resident of the North Central area of San Mateo
403 of 763
From: Peninsula People Power
To: Clerk
Cc: City Council (San Mateo)
Subject: 100 N Humboldt St. Statement of Appeal
Date: Monday, June 5, 2023 3:59:35 PM
Dear City Council,
We recently learned about a troubling situation in San Mateo where a Latino family of 10 (not including the children) was living in unsafe conditions. The family contacted the City after a portion of the ceiling collapsed. City officials inspected the property and discovered 22 code violations – 10 of which were life-safety violations – including no heat, no hot water, a compromised roof and significant mold.

The city quickly acted in accordance with their red-tag ordinance passed in 2019, issuing a notice to vacate and providing the tenants with relocation assistance. The city then sent the property owner a bill for reimbursement of the displacement benefits provided to the tenants.

The property owner appealed the bill, alleging that the code violations were caused by the tenants. The property owner provided no evidence that the tenants caused the lack of heat and hot water, roof damage or environmental mold. On the other hand, the tenants asserted that the property was rented without heat and provided communications demonstrating they had raised concerns about the 37 year old roof as early as 2020. Google Street View images from 2018 clearly show damage to the exterior of the roof. The property owner obtained an estimate to replace the roof in October 2022 but never proceeded with the work. The owner replaced the water heater in May 2022, but the work was completed without a permit and the tenants said it did not work reliably. City inspectors found the air and water temperature were both about 60℉.

As you know, Council voted to grant the property owner’s appeal by a vote of 3-1. Deputy Mayor Nash was not convinced the life-safety violations were caused by the owner.

Councilmember Hedges said that the owner placing tarps on the roof was sufficient mitigation, and that it was probably hard to find a roofer to complete the repairs. Councilmember Newsom said “without a doubt" there was negligence with regards to the roof that warranted red-tagging the property and relocating the tenants, but voted to grant the appeal anyway.

We strongly disagree with the City Council’s decision and believe it sets a dangerous precedent. We worry that the most vulnerable residents living in uninhabitable conditions will hesitate to raise concerns to their landlords or the city, for fear of displacement without assistance.

We urge the Council to reconsider their decision, and act to protect the 46% of San Mateo residents that are renters from irresponsible and negligent landlords. The red-tag ordinance is a critical safety net for renters trapped in unsafe conditions and it must not be weakened.

Respectfully,
Peninsula People Power
REACH Coalition of San Mateo County
404 of 763
California Democratic Renters Council
405 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 29 Section Name: PUBLIC HEARING Account Number: 72-4674 File ID: 23-7465 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 05, 2023
SUBJECT: Sewer Rate Increase for Fiscal Years 2023-24 to 2027-28 – Ordinance Introduction RECOMMENDATION:

Conduct a public hearing, and if there is a determination that a majority protest does not exist, introduce an ordinance to establish maximum sewer rates effective August 1, 2023 through June 30, 2028 pursuant to San Mateo Municipal Code Section 3.54.030 “Sewer Service Charges.”
BACKGROUND:

Council establishes rates sufficient to pay for sewer collection and treatment operating expenses, debt service, and capital improvement needs. On March 5, 2018, Council adopted a multi-year sewer rate increase and rate restructure for fiscal years 2018-19 through 2022-23, which included moving from charging solely based on volumetric usage to a hybrid volumetric/fixed-fee structure to help stabilize revenue. The multi-year rate increase and fee restructuring allowed the City to finance the Clean Water Program (CWP), a $1B capital intensive 10-year effort that began in 2015 to comply with a Regional Water Quality Control Board Cease and Desist Order and National Pollutant Discharge Elimination System permit requirements.

The CWP consists of a series of projects that upgrade and replace aging infrastructure, increase system capacity to prevent sanitary sewer overflows, and are designed to meet current and future regulatory requirements for wastewater treatment. The sewer rates have funded operating costs and the CWP through cash, bonds, and loans. Low-interest federal Water Infrastructure Finance and Innovation Act (WIFIA) and State Revolving Fund loans were obtained, saving rate payers millions of dollars and reducing the need for higher future rate increases.

During an April 2022 study session, Council supported a multi-year sewer rate schedule consisting of inflationary-level increases to ensure sufficient ongoing revenue to fund operating and maintenance costs and capital improvement projects. Following the study session, staff worked with the City’s sewer rate consultant, Bartle Wells, to determine recommended sewer rates for meeting the City’s ongoing needs. At an April 3, 2023 study session, Council provided feedback on a proposed five-year inflationary sewer rate structure, up to a maximum 3% increase each year for fiscal years 2023-24 through 2027-28. Council also provided feedback on a draft Proposition 218 Notice of proposed sewer rate increases.

Proposition 218 Compliance
Increases to the City’s sewer service charges must comply with Article XIIID of the California Constitution (Proposition 218).

Proposition 218 imposes various requirements regarding the procedures the City must follow to increase its sewer service fees as well as substantive limitations on the sewer service charges. Proposition 218 requires the City to mail a written notice of any proposed sewer rate increases to affected property owners at least 45 days prior to a scheduled public hearing, during which time property owners may submit written protests opposing proposed rate increases. 406 of 763

CITY OF SAN MATEO
The Proposition 218 Notice (Attachment 2) was mailed to 27,103 property owners on April 13, 2023, allowing for a 53-day protest period. The notification informed property owners of the hearing date on which the proposed maximum rate increases would be considered by the Council. The notice also instructed property owners on how, when, and where to submit protests.

As described in the notice, a valid protest must be presented in writing and received prior to the end of the public hearing and include the required information. At the end of the public hearing, the City Clerk will tally and report the qualifying written protests. The Council will then determine whether the written protests opposing the proposed rate increases exceeds the fifty (50) percent threshold required to constitute a majority protest.

If there is not a majority protest on the proposed rate increases, Council may proceed to introduce the proposed ordinance (Attachment 1) to amend sewer rates. A second reading and adoption of the ordinance would then occur on June 20, 2023 to establish the new sewer service rates for fiscal years 2023-24 to 2027-28. The rates adopted by Council may not exceed the maximum rates shown in Attachment 1. The proposed rate adjustment for fiscal years 2023-24 will become effective August 1, 2023. Rate adjustments for fiscal years 2024-25 to 2027-28 would be effective July 1st of each fiscal year.

BUDGET IMPACT:

The proposed rate increases for the fiscal years 2023-24 to 2027-28 are calculated based on the projected revenue requirements to provide sewer service and cover the City’s costs, including debt service, required reserves, and future capital expenditures. The actual revenue to be generated will not be known until the rate is set and complete water data is available and analyzed.

ENVIRONMENTAL DETERMINATION:

In accordance with CEQA Guidelines Section 15378(b)(4), the adoption of this ordinance is not a project subject to CEQA, because the sewer service charge is a funding mechanism for the City Sewer operations and capital projects.

NOTICE PROVIDED
Notice of the proposed maximum increase in the sewer rates and the June 5, 2023 public hearing was mailed to all property owners on April 13, 2023. This meets the 45-day notification requirement. Pursuant to Government Code Section 6062a, notice of this public hearing was published twice in a newspaper, on May 24, 2023, and May 31, 2023, respectively.

ATTACHMENTS
Att 1 – Proposed Ordinance
Att 2 – Proposition 218 Notice of Proposed Sewer Rate Increase Att 3 – Public Comment

STAFF CONTACT
Deryk Daquigan, Engineering Manager
[email protected]
(650) 522-7287
Matt Fabry, Deputy Director
[email protected]
650 522 7309
Azalea Mitch, Director of Public Works
[email protected]
(650) 522-7303
407 of 763

CITY OF SAN MATEO

DRAFT ORDINANCE
ESTABLISHING SEWER SERVICE CHARGES FOR FISCAL YEARS 2023-2024 THROUGH 2027-2028 WHEREAS, the procedures set forth in California Constitution Article XIII D, Section 6 for propertyrelated fees, enacted by Proposition 218, apply to sewer service charge increases; and WHEREAS, a sewer service charge is a property-related fee for each parcel’s attributable use of the sanitary sewer collection and treatment systems in the City (“Sewer Service Charge”); and WHEREAS, the City is following the procedures set forth in Article XIII D, Section 6 for the proposed Sewer Service Charge increase; and
WHEREAS, notice of the proposed Sewer Service Charge increase was mailed to ratepayers and property owners on April 13, 2023, 53 days prior to the scheduled public hearing on the proposed increase; and WHEREAS, on June 5, 2023, a public hearing was held at 7:00 p.m. in the San Mateo City Hall Council Chambers, located at 330 West 20th Avenue, San Mateo regarding the proposed Sewer Service Charge increase, at which all protests against the rate increase and other comments were considered; and WHEREAS, San Mateo Municipal Code section 3.54.030 provides that the City Council shall establish the Sewer Service Charge by ordinance.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF SAN MATEO ORDAINS AS FOLLOWS:

Section 1. In accordance with California Constitution Article XIII D, Section 6, the City Council finds that:
(a) The revenues derived from the Sewer Service Charge do not exceed the funds required to provide sewer service because the rate increase is needed to fund ongoing sewer system operation and maintenance and meet capital expenditures.
(b) The revenues derived from the Sewer Service Charge will not be used for any purpose other than the provision of sewer service.
(c) The Sewer Service Charge will not exceed the cost of sewer service attributable to each parcel. (d) The Sewer Service Charge is only charged for sewer service that is actually used by or currently available to the parcel in question.
(e) The Sewer Service Charge pays for the provision of sewer service and not for general governmental services.

Section 2. Pursuant to San Mateo Municipal Code section 3.54.030, the maximum sewer service charge for Fiscal Years 2023-2024 through 2027-2028 is established as follows:
408 of 763
Effective Date
Current
Rate
Aug 1
2023
July 1
2024
July 1
2025
July 1
2026
July 1
2027
Residential
Fixed Monthly Charge (Charge per dwelling unit)
$60.14 $61.94 $63.80 $65.71 $67.68 $69.71
Sewer Usage Charge (Rate per hundred cubic feet ($/CCF) of annualized average monthly winter water use) Class A Residential $11.80 $12.15 $12.51 $12.89 $13.28 $13.68 Commercial
Sewer Usage Charge (Rate per hundred cubic feet ($/CCF) of annualized average monthly winter water use) Class B Standard Strength $23.60 $24.31 $25.04 $25.79 $26.56 $27.36 Class C Moderate Strength $31.00 $31.93 $32.89 $33.88 $34.90 $35.95 Class D High Strength $42.04 $43.30 $44.60 $45.94 $47.32 $48.74 Class E A limited number of accounts are billed on a case-by-case basis based on sewer rates in effect.

Minimum Monthly Charge (Commercial bills are subject to the minimum monthly charge) $60.14 $61.94 $63.80 $65.71 $67.68 $69.71
Section 3. Pursuant to San Mateo County requirements, the City Council authorizes collection of the Sewer Service Charge, which shall be billed on the real property tax rolls for Fiscal Year 2023-2024 through 2027-2028, with the actual total to be updated for the County rolls when the calculation process is completed each year.

Section 4. Environmental Determination. In accordance with California Environmental Quality Act (CEQA) Guidelines, section 15378(b)(4), introduction and adoption of this Ordinance is not a project subject to CEQA because the Sewer Service Charge is a funding mechanism for the City sewer operations and capital projects which does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.

Section 5. Severability. In the event any section, clause or provision of this ordinance shall be determined invalid or unconstitutional, such section, clause or provision shall be deemed severable and all other sections or portions hereof shall remain in full force and effect.

Section 6. Publication. This Ordinance shall be published in summary in a newspaper of general circulation, posted in the City Clerk's Office, and posted on the City's website, all in accord with Section 2.15 of the City Charter.

Section 7. Legislative History and Effective Date. This ordinance was introduced on Clerk to complete., and adopted on Clerk to complete., and shall be effective 30 days after its adoption. 409 of 763
Comments and Written Protests
Any affected property owner may submit a
written protest to the proposed increase to
the sewer rates; provided, however, only
one protest will be counted per parcel. Each
protest must (1) be in writing; (2) state that
the identified property owner opposes the
proposed increases to the sewer rates; (3)
identify the parcel for which the protest is
made (by assessor’s parcel number or street
address); and (4) include the signature of the
property owner. Protests submitted by e-mail,
facsimile, or other electronic means will not be
counted. Written protests may be submitted by
mail to the City Clerk at 330 W. 20th Avenue,
San Mateo, CA 94403 or at the public hearing,
so long as the protests are received before
the public hearing ends. Please identify on
the envelope for any written protest, whether
mailed or submitted in person to the City Clerk,
that the enclosed written protest is for the Public
Hearing on the Proposed Sewer Rate Increase.

Notice of Public Hearing
on Proposed Sewer Rate
Increases
This notice is being sent to inform you that the
City of San Mateo is proposing to increase
sewer rates over the next five years in order
to a) continue constructing a new wastewater
treatment plant to replace the City’s aging
treatment facility, b) fund legally-required
improvements to the City’s sewer collection
system to address regulatory requirements and
minimize potential for sanitary sewer overflows,
c) fund ongoing rehabilitation of aging sewer
pipelines, and d) keep rates aligned with the
cost of providing sewer service for fiscal year
(FY) 2023-24 to FY 2027-28. The rates reflect
maximum annual rates over the five-year
period.

During the public hearing, the City Council
will hear all public testimony and consider
all written protests. At the conclusion of the
public hearing, the City Council will decide
whether to adopt the proposed sewer rates.

Oral comments at the public hearing will not
qualify as formal protests unless accompanied
by a written protest, but the City welcomes
your input. If, at the end of the public hearing,
written protests against the proposed increases
to the sewer rates are not presented by a
majority of affected property owners of the
identified parcels, the City Council will be
authorized to adopt the rates.

In compliance with Article XIIID of the California
State Constitution and the Proposition 218
Omnibus Implementation Act, the City is
notifying all affected property owners of a
Public Hearing to accept public comment
& testimony on the proposed sewer rate
increases:

Date: June 5, 2023 at 7:00 p.m.

San Mateo City Hall,
Council Chambers
330 W. 20th Avenue
San Mateo, CA 94403
Need More Information? Please visit our
website, CleanWaterProgramSanMateo.org.

For questions, call (650) 727-6870 or email info@
CleanWaterProgramSanMateo.org.
410 of 763
The City’s current sewer rates for a typical residential customer are in the middle range compared to other
regional agencies in San Mateo County. The rates for fiscal years 2023-24 through 2027-28 reflect the maximum annual rate increase proposed under this Proposition 218 notice.

The City will review the rates each year and determine the actual annual increase up to these maximums.

Why the Rate Increases Are Needed Methodology Used to Calculate the Proposed Rates Specifically, the proposed rate increases will enable the City to generate the funding needed to:
• Continue construction and long-term financing of the City’s aging wastewater treatment plant
The proposed sewer rates are based on a cost-of-service analysis that includes a) financial projections to identify future wastewater system funding needs, and b) apportionment
of costs and development of rates for each customer class based on factors including the volume and strength of
wastewaterdischarge.

The City’s existing wastewater treatment plant includes several facilities which have reached the end of useful life.

The treatment plant is being rebuilt to ensure the City can continue to provide high-quality service and meet new
regulatoryrequirements to protect San Francisco Bay.

Approved sewer rates for 2023-24 would be effective August 1 and effective July 1 for each subsequent fiscal year under the proposed rate structure. Please note sewer charges for most customers are billed annually on the property tax bill.

The proposed rates are designed to recover the costs of providing sewer service to each parcel.

Proposed Sewer Rates • Construct critical improvements to the City’s sewer collection system to meet regulatory requirements, prevent sanitary sewer overflows, and replace aging pipelines
The City needs to address increased regulatory
The following table shows current and proposed sewer Sample Bill Calculations rates. Residential rates include two components:

Sample Residential Monthly Sewer Charge
Effective August 1, 2023
1) A Fixed Monthly Charge per residential dwelling unit that is billed independent of usage, and 2) Sewer Usage Charges billed based on metered water usage. Commercial and nonresidential customers will continue to be billed Sewer Usage Charges based on customer class and metered usage,
subject to a minimum charge. Residential and commercial Sewer Usage Charges are based on metered water usage
from the preceding November through March time period
(when there is minimal outdoor irrigation) and levied per hundred cubic feet (CCF). One CCF equals approximately
748 gallons.
requirements and issues associated with sanitary sewer
overflow prevention, including construction of relief sewer lines and facilities necessary to prevent overflows during heavy rains, as well as increased cleaning, inspection, and rehabilitation of the existing collection system.

The following shows how the sewer service charge would be calculated for a typical Class A residential dwelling unit with 5 CCF average monthly winter water use:

Nov
5 Dec
6 Jan
4 Feb
4 Mar
6 Average

5.0 • Keep rates aligned with the cost of providing service Pay for the increases in annual operating and maintenance expenses required to meet the City’s regulatory permit
requirements, fund increasing annual debt service
requirements, and keep revenues aligned with the costs of providing wastewater service.

Water Use (CCF)
Bill Calculation
Fixed
Monthly
Charge
Sewer Usage Charge Total Monthly Charge
$61.94 $12.15 x 5.0 units = $60.75 $61.94 + $60.75 = $122.69 Proposed Sewer Rates Effective Date Sample Commercial Monthly Sewer Charge Current Rate Aug 1 2023 July 1 2024
$63.80
July 1 2025 July 1 2026 July 1 2027 Effective August 1, 2023 Residential
Fixed Monthly Charge (Charge per dwelling unit)
The following shows how the sewer service charge would be calculated for a Class B – Standard Strength commercial customer with 10 CCF average monthly winter water use: $60.14 $61.94 $65.71 $67.68 $13.28
$69.71
$13.68
Sewer Usage Charge (Rate per hundred cubic feet ($/CCF) of annualized average monthly winter water use) Nov 12 Dec
9 Jan
10 Feb
11 Mar
8 Average
Class A Residential $11.80 $12.15 $12.51 $12.89 Water Use (CCF) 10.0 Bill Calculation
Commercial
Sewer Usage Charge (Rate per hundred cubic feet ($/CCF) of annualized average monthly winter water use) Sewer Usage Charge
$24.31 x 10.0 units = $243.10
Total Monthly Charge
$243.10
Class B Standard Strength
Class C Moderate Strength
Class D High Strength
Class E
$23.60
$31.00
$42.04
$24.31
$31.93
$43.30
$25.04
$32.89
$44.60
$25.79
$33.88
$45.94
$26.56
$34.90
$47.32
$27.36
$35.95
$48.74
A limited number of accounts are billed on a case-by-case basis based on sewer rates in effect. Need Your Water Usage Information? California Water Company customers may view their consumption history online at https://www.

CalWater.com/. Customers of other water providers should refer to their water bills to determine consumption or contact the provider directly.

Minimum Monthly Charge (Commercial bills are subject to the minimum monthly charge) $60.14 $61.94 $63.80 $65.71 $67.68 $69.71
411 of 763
412 of 763
413 of 763
414 of 763
415 of 763
From: Azalea Mitch
To:

Subject:

Date:

Matt Fabry; Alonso Barahona
FW: Notice of Public Hearing on Proposed Sewer Rate Increases Thursday, April 20, 2023 1:29:39 PM
Attachments: image001.png
FYI
From:

Sent: Thursday, April 20, 2023 6:47 AM
To: Drew Corbett <[email protected]>; Amourence Lee <[email protected]>; Rob Newsom <[email protected]>; Lisa Diaz Nash <[email protected]>; Adam Loraine <[email protected]>; Richard Hedges <[email protected]>; Azalea Mitch <[email protected]>; Rich Lee <[email protected]>; Noel Nish <[email protected]>
Cc: David Canepa <[email protected]>; [email protected] Subject: Notice of Public Hearing on Proposed Sewer Rate Increases Dear City Manager, City Council, and Public Works,
I received a notice from the City of San Mateo on "Public Hearing for Proposed Sewer Rate Increases".

In 2020, we public had a HUGE increase in our property tax bill. (I am forwarding my correspondence with you in 2020 re: this huge property tax increaseI noticed on my tax bill at that time which prompted me to contact the County Assessor's office as to why this was so.)
In my Citizens Academy course, I learned that we were constructing a new sewer plant at a cost of $1 BILLION dollars.

Now, just 3 years later, the City is asking for sewer rate increases.

How is this justified when we were taxed just 3 years ago.

Your brochure states that the proposed rate increases will generate funding needed to: continue construction and long term financing of the waste water treatment plant.

What happened to the money from the increase in our property tax bill? Is this project OVERBUDGET?
Please provide an accurate accounting to the public and NOT JUST paragraphs of your justification for asking us for more money. If you are spending our hard earned money indiscriminately, PLEASE TURN OFF THE FAUCET. We, the public, are not an ATM machine for the City's expenses!
I would like to know where the money went.
416 of 763
I am opposed to this increase until your finance director sends me and everyone else an accounting of expenses for our sewer waste water treatment facility.

Doris Nishimoto, D.D.S.
----- Forwarded Message -----
From: Alonso Barahona <[email protected]>
To: Brad Underwood <[email protected]>;
Drew Corbett <[email protected]>
Cc: Abby Veeser <[email protected]>
Sent: Thursday, April 23, 2020 at 09:36:51 AM PDT
Subject: RE: I found error in City of San Mateo Sewer Service Charge Good morning Ms. Nishimoto,
Thank you for your inquiry regarding your sewer charge for FY 2019/20. I will be evaluating your request and respond to you shortly with more information.

All the best,
Alonso Barahona
Alonso Barahona
Management Analyst II | Public Works
330 W. 20th Ave., San Mateo, CA 94403
O: 650-522-7334 | [email protected]
M-TH: 7:30 a.m. – 5:30 p.m., F: 7:30 a.m. – 4:30 p.m. (off every other Friday) In compliance with the San Mateo County Health Officer’s order to Shelter-in-Place through April 7th, the City of San Mateo will only be providing essential services including public safety, wastewater treatment, and critical infrastructure maintenance. We have closed City facilities to the public including libraries, community centers, and City Hall. Staff in non-essential functions will be working remotely to the extent possible, so please expect some delay in responses. Questions about the coronavirus or the County Officer’s Health Order should be directed to the County’s 2-1-1 Call Center. For questions about City Services, please call the City’s main line at (650) 522-7000 or visit www.cityofsanmateo.org.

From: Brad Underwood <[email protected]>
Sent: Thursday, April 23, 2020 8:09 AM
417 of 763
To: Doris Nishimoto ; Drew Corbett <[email protected]> Cc: Alonso Barahona <[email protected]>; Abby Veeser <[email protected]> Subject: RE: I found error in City of San Mateo Sewer Service Charge Ms. Nishimoto,
Thank you for your inquiry. I am copying Alonso so that he can look into the issue that you present. He will be getting back to you with a response or he may have additional questions or need additional information. Either way he will be in contact with you.

Brad Underwood
From: Doris Nishimoto
Sent: Wednesday, April 22, 2020 3:00 PM
To: Brad Underwood <[email protected]>; Drew Corbett <[email protected]> Cc: Noel Nish
Subject: I found error in City of San Mateo Sewer Service Charge Hi Brad,
Since we are sheltering in place, I have been going through my paperwork. I have 2 documents from City of San Mateo
for the calculation of the Sewer Service Charge Fiscal year 2018-2019.

Although I had spoken to someone a year ago in the County Assessor's office, they did not know how the calculation was done. Upon revisiting this paperwork, I see that the number of units/parcel is wrong. They are more units than currently built.

I called City of SM Public Works dept this morning, and your receptionist told me to try calling NBS Sewer billing co @
1-800-676-7516 because they do the billing.

I called NBS, but Lorraine, who took the call says the burden of proof is on me as they get information from: 1. Alonzo 650-522-7334 (sometimes they get information from him) or 2. Assessor's office records. (most of time they get information here) 418 of 763
Doris Nishimoto, D.D.S.
419 of 763
420 of 763
421 of 763

THE FOLLOWING PUBLIC

COMMENTS WERE SUBMITTED

FOLLOWING THE PUBLICATION

OF THE AGENDA PACKET
422 of 763
June 4, 2023
To: San Mateo City Clerk
330 W. 20th Avenue
San Mateo, CA 94403
Andrew Lomano

RE: I strongly oppose the proposed increase to the Sewer Rates I am asking the City Council to Vote NO, because we the tax payers cannot afford this proposal as it stands. More thought and common sense needs to be looked into this matter.

The notice sent to me was unclear as to how much the increase actually would be, (a underhanded way to convince us that this was a good project to approve!!!) The prposed rate would actually double our current sewer rate to $3,590 a year from the $1,827 that we pay now.

I am struggling to get by due to the nonstop obsession of the City and CA pushing more development and creating a hostile business environment altogether, something it is exasperating to fight. We need common sense approaches in our public sector that the private sector has to live within. The current administration policies and anti business environment in CA has cost us dearly with increases in gas, food, garbage rates, water rates and PG&E (rate hikes seem to always be approved) and all continuing to increase without thought to those paying the bills/taxes.

On reading the restrictions on how we can actually protest this sewer rate it looks like our City Council members do not want any input from the people who live under their tyranny.

They are elected by the citizens of San Mateo and we have a right to be heard and freely comment on what the City Council proposes…as far as I understand, that is still a right our Constitution gives to “we the people.”
Please vote No on the proposed sewer rate increase.

Sincerely,
Andrew Lomano
423 of 763
From: Annette Bianco
To: Clerk
Subject: comments on 6/5/23 council meeting agenda item 29.

Date: Monday, June 5, 2023 2:29:07 PM
Agenda item 29 Sewer Rate Increases Comment
I am representing several senior citizens who have asked me for help as well as my husband and I and several of my neighbors.

WE oppose the proposed increase to the sewer rates

1. The proposed rates would DOUBLE our current sewer rate from per year.

2. We are on a fixed income. This would cripple many citizens who are already being hit with higher water bills, garbage rates, gas at the pump, PG&E rates and cost of food increases. We thought you are trying to mitigate the homeless problem, not add to it by pushing senior citizens out of their homes because they can no longer afford to live in them!

3. The notice that was sent out was too confusing. Many people didn’t understand how to calculate the increase or proper submission of protest or if this rate would be monthly on water bill or added to property tax bills.

We are asking the City Council vote NO, and send out to the citizens, a more clear and concise notice so that everyone would understand how they would be impacted.

We are asking the City Council to vote NO because we the taxpayers cannot sustain the need for expansion of the wastewater treatment plant because of high density developments. WHY DON’T THE DEVELOPMENTS THAT GENERATE A LOT OF MONEY FUNDING THE CORRESPONDING NEED FOR EXPANSION OF THE INFRASTRUCTURE? Thank you,
Annette and Steve Bianco and other concerned San Mateo residents 424 of 763

CITY OF SAN MATEO

CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 30 Section Name: PUBLIC HEARING Account Number: 10-2031 File ID: 23-7548 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Finance Department
MEETING DATE: June 05, 2023
SUBJECT:

Proposed 2023-24 Budget and 2023-28 Capital Improvement Program – Review RECOMMENDATION:

Review the proposed 2023-24 budget and the 2023-28 capital improvement program and conduct a public hearing prior to the scheduled adoption at the June 20, 2023 City Council meeting.

BACKGROUND:

Prior to Council’s adoption of the 2023-24 budget on June 20, 2023, it holds two public hearings to receive public comment on the proposed budget and capital improvement program (CIP). Council was presented with a preview of the General Fund proposed 2023-24 budget on April 17, 2023. Overall, the proposed Citywide budget for 2023-24 is $317.5 million.

This includes an operating budget of $239.1 million and a capital budget of $78.4 million. A summary of budget highlights is included in the City Manager’s Letter of Budget Transmittal in the Proposed 2023-24 Budget Book, included as Attachment 1. This agenda report primarily focuses on the General Fund, as it accounts for major tax revenues and funds the City's core services. Additional narratives are provided for the Construction Services Fund, as it is a perennial major fund of the City’s operations, and the Sewer Fund, which is the City’s sole enterprise fund and the second largest fund of the City. Fund summaries for all other operating funds are provided in the Proposed 2023-24 Budget Book. Narratives will be provided to discuss service-level enhancements as reflected in the 2023-24 position budget, but the focus of fiscal year (FY) 2023-24 is on the capital improvement program (CIP), as FY 2023-24 is year two of the two-year business plan. As such, the Proposed 2023-24 Budget Book includes summaries for the 2023-28 CIP as well as charters for funded projects and priority unfunded projects. This agenda report provides a high-level summary. The Proposed 2023-24 Budget Book also includes operating budget schedules to provide greater detail.

GENERAL FUND
The General Fund, which is the City's primary operating fund, projects total revenues of $159.1 million and total expenditures of $171.7 million and includes transfers out and all General Fund sub-funds – Measure S, Downtown Services, Recreation Services, and Golf. Budget assumptions for major General Fund tax revenues are discussed in greater detail below.

GENERAL FUND REVENUES

PROPERTY TAX
The proposed 2022-23 budget anticipates $78.0 million in property tax revenues, which is 45% of General Fund total revenues, and as such, is the General Fund’s chief revenue source. The primary components of property tax revenues include secured current year ($49.2 million), Excess ERAF ($8.2 million), and property tax in lieu of VLF ($10.8 million).

These primary property tax components grow annually based on the change in assessed value, which as of May 2023, is projected to be 4.65%, which includes the change in the California Consumer Price Index (CCPI) or 2%, whichever is less, pursuant to the State constitution. The remainder of the growth in assessed value is attributable to properties that have 425 of 763

CITY OF SAN MATEO
been sold and the applicable assessed value reset to market value, as well as new development that has been added to the City’s property tax roll. The proposed 2023-24 budget anticipates that property tax will be $2.2 million less than the adopted 2022-23 budget. The primary culprit in the year-over-year reduction is property tax in-lieu of vehicle license fees (VLF).

As a part of the 2004 budget agreement, the State of California agreed to swap the loss of vehicle license fees (otherwise known as VLF) with property tax. These property taxes have two funding sources: 1) property taxes from non-basic aid school districts, and 2) ERAF that would otherwise go to non-basic aid school districts. Due to the preponderance of basic aid school districts in the county (17 of 23), there are not enough non-basic aid school districts to backfill the VLF owed to the cities and the County. As such, the County of San Mateo has experienced property tax in lieu of VLF shortfalls over the past couple of years, which is an issue that is unique to San Mateo County. The procedure to address the VLF shortfall has been for the County to file a claim with the State at the end of the fiscal year of the VLF shortfall, which is taken into consideration by the State for the subsequent year’s budget. The county-wide VLF shortfall from fiscal year (FY) 2021-22 of $33 million is not included in the State’s proposed FY 2023-24 budget, despite advocacy efforts from San Mateo County and the local cities. The City’s share of the FY 2022-23 county-wide shortfall is $1.9 million. In addition, the proposed 2023- 24 budget assumes a county-wide VLF shortfall of $78.5 million, of which the City’s share would be $4.6 million. Absent the 2021-22 VLF shortfall and the projected 2023-24 VLF shortfall, property tax revenues would be $84.0 million.

SALES TAX
The proposed 2023-24 budget assumes Local 1% sales tax revenues (Bradley Burns) of $23.9 million and local 1/4% sales tax revenues (Measure S) of $7.3 million, which reflects modest growth of the City’s sales tax base after recovering back to the pre-pandemic baseline within a two-year period in FY 2021-22. Despite the relatively rapid recovery, the ongoing shift of consumer habits of purchasing taxable goods online rather than physical stores is expected to continue to keep sales tax growth at a modest pace, as the Bradley Burns is allocated based on point of sale.

By contrast, Measure S, which is a 1/4% transactions and use tax, otherwise known as a district tax, is allocated based on destination. While the Bradley Burns and district tax are based on different tax laws, the disparity between the amount of revenue generated between the two sales tax revenues relative to their rate illustrates the impact of the gradual changes in consumer behavior. If the Bradley Burns tax were modified to be in alignment with modern technology and current consumer habits by being destination based, Bradley Burns sales tax revenues would be closer to $28.7 million rather than $23.5 million, a $5.2 million difference.

REAL PROPERTY TRANSFER TAX
The federal government’s efforts to mitigate high inflation by increasing the federal funds rate increases the cost to borrow money. These actions at the federal level have a stifling effect on the real estate market, which in turn has caused the City’s real property transfer tax (RPTT) to precipitously drop. The adopted 2022-23 budget assumed RPTT revenues of $11.1 million based on an analysis of RPTT trends over the current and previous economic cycles. As a result of the escalation of the federal funds rate, RPTT revenue for 2022-23 are projected to end the year at $6.3 million. Over the next couple of years, the Federal Open Market Committee anticipates that the federal funds rate will begin to taper off. As such, the proposed 2023-24 budget and the General Fund Long-Term Financial Plan assume an average of $8.0 million throughout the 10-year period. The Letter of Transmittal in the Proposed 2023-24 Budget Book discusses the current trend in greater detail.

TRANSIENT OCCUPANCY TAX
Local tourism and transient occupancy taxes (TOT) revenues have recovered faster than expected, but TOT remains the only tax revenue that has not yet recovered back to pre-pandemic levels. The proposed 2023-24 budget assumes that TOT revenues will reach $6.0 million. San Mateo’s TOT base is largely from business travel, which is anticipated to recover back to the pre-pandemic baseline by FY 2025-26 as reflected in the General Fund Long-Term Financial Plan based on analysis from Tourism Economics and Visit California.
426 of 763

CITY OF SAN MATEO

GENERAL FUND EXPENDITURES
The proposed 2023-24 budget projects $171.7 million in General Fund total expenditures, which primarily consists of $86.7 million in employee compensation, which includes salaries, wages, healthcare, and pension costs. Employee compensation represents over half of total General Fund expenditures and reflects the City’s ongoing commitment to provide competitive employee compensation and the proportional demand on General Fund resources. FY 2023-24 is year two of the two-year business plan, so the focus of the budget is on the CIP. Modest service level enhancements added $1.4 million in additional cost to the operating budget to address key operational areas, including planning, building, traffic, engineering, and wastewater, as detailed below:

Community Development Department
• 1.0 full-time equivalent (FTE) Principal Planner - $213,000; Allocated 25% to Advance Planning Fund and 75% Construction Services Fund
o This position is needed to ensure the timely handling of the increased number of planning applications in accordance with State law, ensure the City achieves and remains in compliance with the high volume of new State land use laws, which expedite processing times and require policy and code changes, assist with and lead Housing Element and General Plan implementation tasks, including the comprehensive Zoning Code update, and assist the Planning Manager with streamlining permit processing and supporting staff with handing current planning tasks.
• 1.0 FTE Deputy Building Official - $197,000; Allocated 10% to General Fund and 90% to Construction Services Fund o This position is needed to assist the Building Official with process improvements and help support staff on technical matters and complex customer service issues related to the approximately 4,000 permits processed each year, and which is increasing in volume and turnaround times commensurately with planning applications. The Building Division comprises approximately half of the Department’s staff and has not had a proportional amount of management support. Adding back this previously funded position into the organizational structure would provide the support needed to channel some of CDD’s resources toward staff mentorship and operational improvements to improve customer service and shorten permit processing and response times.
• 1.0 FTE Development Review Technician - $120,000; Allocated 100% to Construction Services Fund o This position is needed to field the high volume of building and planning inquiries we experience daily and process the intake of building and planning permits submitted, which continue to increase. Development Review Technicians are difficult to attract and retain, as compensation in nearby cities is competitive, while work volumes often appear to be lower. Further, firms that offer professional services often do not have staff available to fill this role, making it difficult to obtain help when there are unexpected vacancies in our DRT pool. Adding this position would provide for a more balanced workload when fully staffed, allowing us to focus on process improvements, and help to ensure customer levels can be maintained when we experience staffing shortages, which is not unusual for this position.

Public Works Department
• 1.0 FTE Traffic and Lighting Technician - $138,000; Allocated 100% to General Fund o The City has 90 traffic signals and 6,700 streetlights that are currently maintained by one Traffic and Lighting Technician and one Traffic Safety Worker. For traffic infrastructure of this size, the Federal Highway Administration (FHWA) recommends a staff of three Traffic and Lighting Technicians and two Traffic Safety Workers. While still short of the FHWA recommendations, an additional Traffic and Lighting Technician would help address the maintenance requirements to ensure the safe operation of the traffic infrastructure.
• 1.0 FTE Associate Engineer - $168,000; Allocated 65% to General Fund and 35% to Construction Services Fund o The Traffic Engineering group within Public Works is responsible for improving the operation of the City’s traffic infrastructure through the optimization of traffic signal timing for congestion relief; addressing safety concerns through the development of speed studies and the implementation of traffic calming projects; review of collision data for the development of traffic safety improvements; development of capital improvement projects such as the 101/Peninsula Interchange, Speed Limit Zone Reductions, High Voltage, and 19th Ave. / Fashion Island Traffic Improvements; and review of traffic impact analyses for new 427 of 763

CITY OF SAN MATEO
development. In addition, the group is responsible for leading studies, such as the Local Roadway Safety Plan, Traffic Signal Master Plan, and the Circulation Element of the General Plan. The group consists of one Senior Engineer, two Associate Engineers, an Engineering Technician and is resource limited, unable to address resident requests and the implementation of critical safety projects in a timely and efficient manner. Additional resources are needed to implement critical traffic calming and safety projects. • 1.0 FTE Pump Station Mechanic - $134,000; Allocated 70% to Sewer Fund and 30% to General Fund o The City has a total of 27 sewer and 10 storm pump stations that are currently operated and maintained by three Pump Station Mechanics and a Laborer. Ensuring that these critical facilities are properly maintained and operated requires additional staff, particularly during wet weather events. Many facilities do not have backup power and require the use of portable generators, which are rotated between stations to maintain the sewer system from backing up and creating sanitary sewer overflows. The storm pump stations require constant clearing of trash to avoid malfunction and flooding. With an additional staff, preventive maintenance measures can be more effectively implemented and response times during emergencies greatly improved.
• 1.0 FTE Wastewater Treatment Plant (WWTP) Operator I/II - $139,000; Allocated 100% to Sewer Fund o With the expansion of the WWTP, a staff derivation study was conducted to determine the adequate number of staff needed to operate the facility. An additional operator is needed to ensure that the facility is well monitored and operated to meet regulatory requirements.

Parks & Recreation Department
The Recreation Division is reorganizing based on current programming needs. With recent vacancies, the department has an opportunity to reallocate resources into more front-line support positions and reduce overhead management positions.

With this proposed reorganization, the department will eliminate vacancies in the following areas: the community services manager, two supervisor positions, and two lead teacher positions.

In addition, a section manager position in the Police Activity League (PAL) will be downgraded to a supervisor role. This change is due to elimination of funding from PAL for the additional cost of the section manager.

Those vacancies will allow the addition of four new coordinator positions and one new senior program assistant position and the reclassification of a program assistant position to a senior program assistant position. This structure will allow the department to create better workflow, delegation and oversight of work projects and daily tasks, along with creating a more streamlined succession plan for long-term outlook and recruitment. This will allow for better service to the public and for streamlining of business operations. Funding for these changes will be close to budget neutral. These changes are subject to bargaining unit approval, which will be in process shortly.

NON-PERSONNEL OPERATING BUDGET ADDITIONS
The proposed 2023-24 budget includes $1.5 million in additions to the operating budget; $1.0 million of which is attributable to the General Fund. New additions of $50,000 or more to the operating budget are noted below by department:

Police Department
• Security improvements to property and evidence room - $60,000 o Funding is intended to address security and organizational concerns identified through a recent audit of the Police Department property and evidence room. The purpose is to enhance the digital locker system, upgrade storage systems for firearms and currency, as well as replace out of date non-ergonomic stations and evidence processing tables. Funds will also be designated for implementation of a more uniform storage system for existing evidence, reducing the chance of lost or damaged items stored for an extended period.
• Additional cost for digital evidence software - $93,000 o With the ever-evolving world of technology, upgrades to forensic tools and equipment are necessary. This funding will be used to enhance the San Mateo Digital Forensic Extraction Team’s ability to perform fullfile system and physical extractions from computers and cellular phones with the Cellebrite Premium 428 of 763

CITY OF SAN MATEO
Service. This new software will assist in accessing highly protected areas such as the iOS Keychain or the Secure Folder. Accessing third party application data, stored passwords and tokens, chat conversations, location data, email attachments, system logs, as well as deleted content, will increase the unit’s chances of finding the incriminating evidence.
• Police Department staffing study - $100,000 (one-time) o The study is expected to result in the creation of a report outlining current capabilities and future needs of the Police Department based on growth and development within the City. The report will include the current status of the agency and actionable steps to improve, remodel, build or increase facilities, personnel, and infrastructure.

Public Works Department
• Additional street sweeper to address downtime associated with ongoing vehicle problems and reliability - $410,000 (one-time)
• Additional Marina Lagoon maintenance expenses for algae harvesting and other contract adjustments - $528,500 • Maintenance improvements for storm water pump stations, including pump replacements, instrumentation, monitoring and control modifications, diagnostics, and other general needs - $80,000 • Increase in software costs associated with Maintenance Connection and Supervisory Control and Data Acquisition (SCADA)/Wonderware - $50,000
• Anticipated increases to cleaning/sweeping services for the Downtown Kiku garage; current contract budgeted at $500k/yr - $81,000

PENSION CONTRIBUTIONS
A key component of the cost of employee compensation is the unfunded accrued liability (UAL) with the California Public Employees’ Retirement System (CalPERS). The UAL is the amortized cost of CalPERS’ investment gains/losses as well as changes in actuarial assumptions; in other words - a loan from CalPERS to the City paid back at 7.0% interest over 30 years for investment gains/losses on or before June 30, 2019 and 20 years for investment gains/losses after June 30, 2019. For FY 2023-24, the total UAL is $17.6 million; the General Fund’s share of which is $13.5 million. As reflected in the General Fund Long-Term Financial Plan, the General Fund’s share of the UAL will precipitously increase to $18.7 million in 2024-25 and as high as $24.6 million in 2030-31 as a result of CalPERS’ negative 7.5% investment return for the fiscal year ended June 30, 2022. Over the course of the 20-year amortization period, CalPERS’ investment loss from June 30, 2022 will require the City to pay $177 million more in pension contributions. The escalating cost of pension contributions continues to reduce the City’s capacity to address competing demands with its limited resources, including service level enhancements and unfunded infrastructure needs.

Transfers Out | Investment in Infrastructure and Capital Improvements The General Fund supports other needs by transferring resources out to other funds. For fiscal year 2023-24, total transfers out are projected to be $14.2 million:
• $7.25 million to support the City’s capital improvement plan (CIP), which is $3.0 million more than the General Fund has historically contributed to the CIP, which is indicative of the City Council’s commitment to continue investing in the City’s infrastructure and capital improvements. • $3.85 million of Measure S funds to support the CIP;
• $2.69 million from Measure S to transfer out for debt service related to flood control and street rehabilitation; and • $0.41 million to address building maintenance needs
General Fund Long-Term Plan
Over the next 10 years, the General Fund is projected to draw down Rainy Day Reserves to as low as $15 million in 2030-31 and recover to $25.7 million by 2032-33. Key revenue and expenditure assumptions are noted below:

GENERAL FUND REVENUES:
• The State of California will continue to honor the escalating VLF shortfall claims. As the number of non-basic aid 429 of 763

CITY OF SAN MATEO
school districts continues to diminish, the VLF shortfall will continue to grow. If every school district reaches basic aid status in 10 years, the county-wide VLF shortfall could reach upwards of $370 million by 2032-33, of which the City’s share would be over $20 million. At present, the State of California’s 2023-24 May 2023 Revised Budget does not include appropriations to address San Mateo County’s $33 million VLF shortfall. If the State no longer honors the annual VLF shortfall claim or does not make a legislative amendment to address this issue, the City’s revenue loss is projected to be over $100 million through 2032-33. • Inflation and the Federal Fund Rate will reach 3.0% by 2025-26. These metrics have a direct nexus to the interest rates available for purchasing homes, and by extension, the City’s real property transfer tax. • The majority of the City’s TOT base is from business travel, which is expected to return to the 2018-19 baseline by 2025-26 based on projections from Tourism Economics and Visit California. • If the projections for General Fund revenues and expenditures come to fruition, the General Fund would realize a net loss of $12.6 million for 2023-24. As shown in the General Fund Long-Term Plan, based on revenue and expenditure assumptions, the City’s Rainy Day Reserve is projected to reach a low of $16.0 million in 2031 before recovering to the target reserve policy goal of $30.0 million by 2033. • Policy H1.2 of the City’s Housing Element calls for the City to resume contributing 20% of the property tax that the City receives as a taxing entity from the former Redevelopment Agency (RDA), also known as ”boomerang funds” to the housing set aside in fiscal year 2023-24, which the City can use for affordable housing developments. The City suspended its practice due to the immediate and severe financial impact of COVID-19 in 2020. For 2023-24, this would result in $1.0 million shifting from the Rainy Day Reserve to the housing set aside.

GENERAL FUND EXPENDITURES
• Employee cost of living adjustments (COLA) will keep pace with long-term inflation at 2%. • Pension contributions will increase sharply starting in 2024-25 due to CalPERS’ investment losses from 2021-22.

Over the 20-year amortization period starting in 2024-25, the City will pay $177 million more in pension contributions. The General Fund Long-Term Plan assumes that CalPERS will meet its target rate of return (discount rate) for the remainder of the 10-year forecast.

NET REDUCTIONS
Net Reductions reflect potential favorable deviations from revenue or expenditure assumptions. For example, the City’s long-term assumption for the increase in AV for property tax is 4%. In any given year, if the AV is greater than the longterm assumption, the City would recognize additional revenue. Conversely, the City’s vacancy assumption for non-safety positions is 2%. If the actual vacancy rate is greater in a fiscal year, then the expenditures would be less than projected.

The General Fund Long-Term Plan assumes net reductions of $3.1 million to $3.7 million each year.

The chart below illustrates the budget to actual deviations that have come to fruition over the past five fiscal years:
430 of 763

CITY OF SAN MATEO
431 of 763

CITY OF SAN MATEO
Capital Improvement Plan for 2023-28
The total capital improvement plan (CIP) for 2023-28 is projected to be $284.4 million. The chart below illustrates the project type by fiscal year. Sanitary Sewer projects represent the majority of the 2028-28 CIP, with $123.0 million of projects planned for the five-year period, largely for completion of the Clean Water Program.

The funding sources for the 2023-28 CIP are shown in the chart below. With the Clean Water Program constituting a large majority of the CIP, the Sewer Fund represents a large portion of the CIP funding. $-
$10
$20
$30
$40
$50
$60
$70
$80
Sum of 2023-24 Sum of 2024-25 Sum of 2025-26 Sum of 2026-27 Sum of 2027-28 Utility Underground
Traffic
Streets
Street Lights
Stormwater
Sanitary Sewer
Parks
Miscellaneous
Buildings
Bridges
Bikeway/Pedestrian
Millions
432 of 763

CITY OF SAN MATEO
Transportation Improvement Fee and The General Plan
The City’s Municipal Code Chapter 27.13 established a transportation improvement fee (TIF) for new development to help fund transportation improvements necessary to maintain intersection improvements that will accommodate future growth. The TIF currently funds transportation improvement projects that are necessary to maintain consistency with the General Plan Policy (C2.1), which requires that intersections not exceed a vehicle-specific level of service or a certain amount of delay. Policy C2.1 is changing with the forthcoming General Plan Update. As such, the list of projects that are required to accommodate future growth will change in order to be consistent with the new General Plan policy. Once the General Plan is adopted, staff will develop a new list of traffic improvements that aligns with the updated General Plan policy, and then update the TIF. Future transportation improvement projects will be programmed into the capital improvement plan once this effort is completed.

The narratives below list each project type, the total CIP cost over the five-year period, and major projects within each project type for the 2023-28 CIP. The proposed 2023-24 budget book includes more detailed information on the 2023-28 CIP, including a charter for new funded projects as well as priority unfunded projects.

Bikeway/Pedestrian - $13.8 million

1. 101/92 Multi-model (Fashion Island Boulevard) Class IV Bike Lane - $5.8 million

2. Bike San Mateo Program - $2.1 million

3. Delaware Safe Routes to School Corridor - $1.7 million $-
$10
$20
$30
$40
$50
$60
$70
$80
Sum of 2023-24 Sum of 2024-25 Sum of 2025-26 Sum of 2026-27 Sum of 2027-28 Tree Replacement Fee
Traffic Impact Fee
Taxes, Fees & Charges
South Bayfront Levee
Sewer
RMRA
Private Contributions
Parks and Recreation Tax and Fees
Parking In-Lieu
Other Agencies
Miscellaneous
Measure W
Measure S
Measure A
Grants
General Fund
Gas Tax
Millions
433 of 763

CITY OF SAN MATEO
Bridges - $13.0 million

1. Bermuda Drive Bridge Replacement - $11.0 million

2. Citywide Bridge Maintenance - $3.3 million

3. Rail Corridor Grade Separation – ($1.3) million
Buildings - $32.3 million

1. New Central Park Parking Garage - $18.0 million (would require the City to issue debt)

2. Parking Facility Structural Repairs - $7.2 million

3. Corp Yard Miscellaneous Improvements - $2.0 million
Miscellaneous - $4.7 million

1. Art in Public Places - $1.0 million

2. External Radio Infrastructure - $0.9 million

3. Police Radios – Hand Held and Mobile - $0.7 million
Parks - $33.3 million

1. Central Park - $10.0 million

2. Citywide Park Play Area Upgrade - $9.0 million

3. King Pool Assessment and Improvements - $6.1 million Sanitary Sewer - $123.0 million

1. Clean Water Program Annual Citywide Sewer Rehabilitation - $27.6 million

2. Wastewater Treatment Plant and Flow Management Upgrade and Expansion - $26.6 million

3. Sanitary Sewer Pump Station Upgrades - $16.0 million Stormwater - $6.4 million

1. Small Trash Capture Devices - $3.8 million

2. Columbia Drive and Crystal Springs Road Storm Drain Channel - $1.4 million

3. City-wide Soil Stabilization Program - $0.8 million
Street Lights - $5.0 million

1. High Voltage Street Light Conversion - $5.0 million
Streets - $41.0 million

1. Citywide Street Rehabilitation Program - $33.2 million

2. Citywide Street Reconstruction - $7.1 million

3. Citywide Sign Inventory and Replacement - $0.5 million Traffic - $7.3 million

1. Grammercy Drive Retaining Wall - $2.4 million

2. Norfolk Street and Fashion Island Boulevard Intersection Reconstruction - $1.4 million

3. Neighborhood Traffic Management – $1.0 million
Utility Underground - $2.7 million

1. 25th Avenue Undergrounding – Phase II - $2.7 million

CONSTRUCTION SERVICES FUND
The Construction Services Fund accounts for the revenues and expenditures of the building permit activities. Total 2023-24 revenues are projected to be $8.8 million, total expenditures are projected to be $12.5 million, and transfers out are projected to be $5.5 million. If the proposed budget estimates come to fruition, the Construction Services Fund will result in a planned draw on fund balance of $9.2 million, bringing the fund balance closer to the reserve policy of 12 months of 434 of 763

CITY OF SAN MATEO
operating expenditures.

SEWER FUND
The proposed 2023-24 budget projects $86.5 million in revenues, principally comprised of sewer service fees of $80.6 million. The projected revenues reflect the anticipated annual rate increases of 3% for fiscal years 2023-24 through 2027- 28 as proposed in a separate agenda item to support the capital improvements and maintain ongoing services. Total expenses are projected to be $230.1 million, comprised of $28.5 million in operating expenses, $173.6 million in CIP, and $28.1 million in debt service. CIP expenses will largely be funded by the low-interest loans from the state and federal government and primarily reflects the commitment to complete the Clean Water Program, a comprehensive plan to update the wastewater collection system and wastewater treatment plant (WWTP).

GANN LIMIT
In addition to the adoption of the 2023-24 budget and capital improvement program, there will be one other action requested of Council as part of the overall budget adoption process on June 20th. This action is to establish the City’s appropriations limit for 2023-24. The appropriations limit, which was originally established in 1979 by Proposition 4, places a maximum limit of the appropriation of tax proceeds that can be made by the State, school districts, and local governments in California. California Government Code requires that the City annually adopt an appropriations limit for the upcoming fiscal year. The appropriations limit for the City of San Mateo for 2023-24 is $260,445,497, while the proceeds of taxes subject to the appropriations limit is $135,537,117. Therefore, the City is well below its appropriations limit for fiscal year 2023-24.

BUDGET IMPACT:

The overall proposed 2023-24 budget is $317.5 million, comprised of $239.1 million for the operating budget and $78.4 million for the CIP. The General Fund is projected to account for $159.1 million in revenues and $171.7 million in expenditures, reflecting an anticipated draw on the Rainy Day Reserve due to front-loading support for the CIP and the impact of the VLF shortfall. The Construction Services Fund is expected to have $8.8 million in revenues and $12.5 million in expenditures for a planned draw on reserves of $3.7 million. The Sewer Fund is expected to account for $86.5 million in revenues and $230.1 million in expenses, largely comprised of CIP for the Clean Water Program that is primarily funded by low-interest loans from the state and federal government.

The 2023-28 CIP is projected to be $284.4 million. Each fiscal year, the City Council only appropriates funds for Year One of the five-year CIP. The 2023-24 CIP is projected toBudg be $78.4 million.

ENVIRONMENTAL DETERMINATION:

This proposed 2023-24 budget is not a project subject to CEQA, because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4).)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed 2023-24 Budget Book

STAFF CONTACT
Rich Lee, Director, Finance
[email protected]
(650) 522-7102
435 of 763

CITY OF SAN MATEO
Proposed 2023-24 Budget
436 of 763
Table of Contents

BUDGET MESSAGE
Letter of Transmittal

CITY OVERVIEW
City Council Vision
City Council Strategic Direction
City Council Priorities
Organizational Vision
City Profile
City Organizational Chart
Basis of Budgeting
Budget Preparation Timeline
Budget Preparation Process
GFOA Financial Reporting Award
GFOA Budget Award
CSMFO Budget Award

BUDGET OVERVIEW
City Sources of Funding
Citywide Operating Budget
Schedule of Interfund Transfers
Capital Improvement Projects Budget
Full Time Equivalent (FTE) Personnel
All Funds Budget Summary
Pension Long-Term Forecast
General Fund

DEPARTMENTS
City Attorney
City Clerk
City Council
City Manager’s Office
Community Development
Finance
Human Resources
Information Technology
Library
Parks and Recreation
Police
Public Works
Non-Departmental

FUND INFORMATION
Special Revenue
Debt Service
Capital Projects
Enterprise
Internal Services

CAPITAL IMPROVEMENT PROGRAM
Summary
Funded Projects
Project Charters - Funded
Project Charters - Priority Unfunded
Projects by Funding Source
Unfunded Projects

APPENDIX
Financial Policies
Gann Appropriations Limit
Glossary
Budget Changes
93 109
113
115
117
127
133
137
229
250
278
279
285
286
288
2 14
15 16
17 18
20 21
22 23
24 25
26 28
30 33
35 36
37 39
41 54
55 58
59 62
66 69
72 75
78 82
86 91
437 of 763
BUDGET MESSAGE 5
Budget
Message
1 438 of 763
Transmittal of Proposed Budget
City Manager's Letter of Transmittal
Honorable Mayor Lee and Members of the City Council:

The City’s long-term fiscal condition is healthy due to prudent fiscal discipline that the City Council exercised beginning in the wake of the Great Recession to accumulate resources in preparation for the next economic fluctuation. The landscape of the City’s post-COVID economic recovery reflects a diametrically opposed impact of inflation on major tax revenues.

While inflation largely spurred the relatively rapid recovery of sales tax revenues back to the pre-pandemic baseline within two years, it is also, by extension, unfavorably impacting real property transfer tax (RPTT) revenues due to the high cost to borrow money.

In contrast to the rapid recovery of sales tax revenues, transient occupancy tax revenues (TOT) have yet to recover back to the pre-pandemic baseline. However, the recovery trend is better than previously projected. TOT revenues are projected to end fiscal year 2022-23 at $5.0 million, which is 71% of the pre-pandemic baseline, and largely reflect the recovery trends of business travel, which is the primary base for the City’s TOT revenues.

While sales tax, RPTT, and TOT are susceptible to economic ebb and flow, the challenges with the property tax in-lieu of vehicle license fees (VLF) are due to a structural flaw that began with the swap of property tax with a reduction in vehicle license fees from 20 years ago as a part of the 2004 budget deal with the State of California. Due to the limited number of non-basic aid school districts in San Mateo County, a VLF shortfall has occurred each year since 2020-21 through present.

The VLF shortfall issue will be discussed in greater detail later in this letter of transmittal.

The City has prepared a two-year business plan since 1986, in which the focus of year one of the business plan is on the operating budget, and the focus of year two of the business plan is on the Capital Improvement Program (CIP). Due to the fiscal uncertainty of the pandemic, the City shifted to a one-year budget beginning in fiscal year 2020-21 and returned to the two-year business plan in fiscal year 2022-23. Fiscal year 2023-24 represents year two of the business plan, as such, the focus is on the CIP.
2023-24 Budget and Long-Term Financial Plan Overview
The proposed 2023-24 budget projects General Fund total revenues of $159.1 million and total expenditures of $171.7 million. Of note, the projection for total revenues reflects the State of California’s 2023-24 budget not including appropriations to address the 2021-22 county-wide VLF shortfall of $33 million. In addition, the proposed budget includes substantial support for the CIP to address the City’s infrastructure needs.

The City’s General Fund is in a strong fiscal position with an estimated $111.9 million in reserves at the end of FY 2022-23, which includes $71.5 million in Rainy Day Reserves, which is above and beyond the 25% operating reserve of $37.3 million.

In contrast to the City’s limited fiscal position during the Great Recession, City Council’s prudent fiscal discipline during the period of recovery and growth post-Great Recession positioned the General Fund to be able to draw on the Rainy Day Reserves during economic fluctuations. The Rainy Day Reserves are expected to decline from a projected high of $71.5 million in 2023 to a low of $21.0 million in 2031 and build to the policy goal of $30.0 million in 2033.

Of note, there are two major assumptions in the General Fund Long-Term Financial Plan: 1) that the State of California will honor future VLF shortfall claims; and 2) that the California Public Employees’ Retirement System’s (CalPERS) investment earnings will meet its discount rate. If CalPERS’ investment earnings unfavorably deviate from the discount rate, amortized investment losses will further diminish the City’s long-term fiscal position. 2 439 of 763

CATEGORY
2023-24

PROPOSED
BUDGET
Citywide Operations
General Fund $ 157.5
Special Revenue / Debt Service Funds 25.0
Enterprise Fund 56.5
Total $ 239.1
Capital Improvement Program $ 78.0
Total $ 317.1
In millions. Operating costs include debt service payments.

Transmittal of Proposed Budget
The total City operating budget for 2023-24 is $239.1 million and is up 10.2% increase over the adopted 2022-23 budget.

The cost escalation is primarily due to capitalized interest from the 2021 Notes, which were issued as a part of the Plan of Finance for the Clean Water Program in a prior fiscal year. Absent the capitalized interest, the operating budget increased by 3.9% due to the cost of employee compensation, reflecting negotiated compensation increases and escalation in the cost of healthcare and pension contributions. Employee compensation (Salaries and Wages, Benefits, and 86.7% of the operating contribution to San Mateo Consolidated Fire Department) represents over 60% of the total operating budget, which reflects the cost to provide core services to the San Mateo community.

The CIP for 2023-24 totals $78.0 million, which is $10.1 million more than the adopted 2022-23 CIP, and $16.0 million less than the 2023-24 CIP estimate from the adopted 2022-23 CIP. The change in CIP for 2023-24 between the prior 5-year CIP and the proposed 2023-24 CIP was primarily in the Sanitary Sewer project type, which shifted some planned project costs to 2025-26. Nearly half of the proposed 2023-24 CIP budget is for Sewer Fund capital improvements, and the majority of which are for the Clean Water Program annual citywide sanitary sewer rehabilitation ($11.7 million) and Wastewater Treatment Plant (WWTP) Flow Management Upgrade and Expansion ($11.2 million) project. 2023-24 Proposed Budget
With the above recovery trends and challenges in context, I am pleased to present the 2023-24 budget. Overall, the proposed citywide budget, including both operating and capital, is $317.1 million.

The City’s proposed budget for 2023-24 continues to provide for core services, Measure S initiatives, and Council priorities, while also making a substantial investment in our capital and infrastructure needs. The following table summarizes the proposed spending plans for operating and capital expenditures for 2023-24. 3 440 of 763

DEPARTMENT ACTION DESCRIPTION

ADDITIONAL

GENERAL FUND
AMOUNT

ADDITIONAL

OTHER FUND
AMOUNT
TOTAL

ADDITIONAL
AMOUNT
Community Development Add Principal Planner $ - $ 213 $ 213 Community Development Add Deputy Building Official 20 177 197 Community Development Reallocate Senior Code Enforcement Officer 3 9 12 Community Development Add Development Review Technician - 120 120 Public Works Reallocate Administrative Tecnician - 36 36 Public Works Add Traffic and Lighting Technician 138 - 139 Public Works Add Associate Engineer 109 59 168
Public Works Add Pump Station Mechanic II 40 94 134
Public Works Add WWTP Operator I/II - 139 139
Finance Reallocate Senior Accounting Assistant 9 - 9
Finance Reallocate Senior Accounting Assistant 9 - 9
Finance Reallocate Budget Manager 22 - 22
Total Total $ 350 $ 847 $ 1,197
Transmittal of Proposed Budget
General Fund and Budget Development Priorities
As noted earlier, General Fund operating expenditures for 2023-24 are projected to be $157.5 million. With 2023-24 as year two of the business plan, the proposed budget includes $1.4 million in additions to the operating budget that address high priority operational areas, which are summarized below:

Table 1: Position Budget Changes (in thousands)
4 441 of 763
Transmittal of Proposed Budget

DEPARTMENT ACTION DESCRIPTION

ADDITIONAL

GENERAL FUND
AMOUNT

ADDITIONAL

OTHER FUND
AMOUNT
TOTAL

ADDITIONAL
AMOUNT
Police New Funding for security improvements to
property and evidence room $ 60 $ - $ 60
Police Additional
Budget Cellebrite Premium Digital evidence 93 - 93
Police New Staffing Study 100 - 100
Police Additional
Budget
Parking enforcement contractual cost
increase 43 - 43
City Manager Add Per diem communications technician 40 - 40 City Manager Additional
Budget
Increase contribution to Chamber of
Commerce 15 - 15
Public Works New Additional street sweeper - 410 410
Public Works Additional
Budget
Marina lagoon maintenance contract
adjustments 529 - 529
Public Works Additional
Budget
Storm water pump station maintenance
improvements 80 - 80
Public Works New WWTP Maintenance per diem - 43 43
Public Works Additional
Budget
Increase in software costs for SCADA/
Wonderware - 50 50
Public Works Additional
Budget
Transfer CNG cleaning skid maintenance
from Facilities to WWTP plus cost
escalation plus media replacement cost
- 78 78
Public Works Reduction
Transfer CNG cleaning skid maintenance
from Facilities to WWTP; reduction of
expired CNG warranty; align with actual
funding needs
- (160) (160)
Public Works Additional
Budget
Cleaning/sweeping services for
Downtown Kiku parking garage 81 - 81
Total Total $ 1,041 $ 421 $ 1,463
In thousands.

Table 2: Operating Budget Changes (in thousands)
5 442 of 763
Transmittal of Proposed Budget
Challenges
The primary fiscal challenges that the City is facing are the impact of inflation on RPTT, the county-wide VLF shortfall and the State’s intransigence to honor its commitment to pay the VLF that is owed to the county and the cities within San Mateo County, and escalating pension contributions due to CalPERS’ investment losses from 2021-22. Each challenge is discussed in greater detail below.

Real Property Transfer Tax
While inflation has had a favorable impact on sales tax revenues, it has, by extension, conversely dampened real property transfer tax revenues. As shown in Charts 1 and 2, the Federal Reserve’s efforts to slow the economy down by raising the federal funds rate has increased interest rates, which makes it more expensive to borrow money as reflected in the average mortgage interest rate.

Chart 1: Federal Funds Rate since 1954
Chart 2: Average mortgage interest rate since 1971
6 443 of 763
As shown in Charts 3 and 4, the increased cost to borrow money has dramatically slowed the real estate market down, and by extension, has reduced the City’s projected real property transfer tax revenues.

Transmittal of Proposed Budget
Chart 3: Local Real Estate Metrics - Single Family Homes from 2016 - 2023 7 444 of 763
Transmittal of Proposed Budget
The reduction in the number of properties sold and the median sales price as well as the increase in the average days on market have dampened the City’s real property transfer tax revenues in comparison to prior trends:

While the Federal Open Market Committee anticipates that the federal funds rate will gradually decline over the next couple of years, the impact of higher interest rates is the primary impetus for resetting the long-term assumption for RPTT to $8 million per fiscal year in the General Fund Long-Term Financial Plan.

Property Tax In-Lieu of Vehicle License Fees
In 2004, as a part of the budget deal with the State of California, the vehicle license fee rate was reduced from 2.0% to

0.65%. To offset the onerous financial impact to local governments, the State backfilled the reduction of vehicle license fees with property tax, known as property tax in-lieu of vehicle license fees (VLF). The primary caveat being that the funding source for the VLF is property tax and Educational Revenue Augmentation Fund (ERAF) from non-basic aid school districts, which are school districts that are not able to meet their State-determined minimum funding level (as defined by Proposition 98) through property taxes. The property tax and ERAF from non-basic aid school districts that is used to fund the VLF owed to cities and counties is then backfilled by the State General Fund.

In San Mateo County, 17 of the 23 school districts have basic aid status. As such, the limited number of non-basic aid school districts to backfill the property tax in-lieu of VLF that is owed to the county and local cities has resulted in a shortfall.

To date, San Mateo County is the only county in the State of California that has had VLF shortfalls. At present, the only recourse to be made whole for the VLF shortfall is to file a claim with the State for it to consider as a part of its budget deliberations in the subsequent fiscal year. In fiscal year (FY) 2020-21, the county-wide VLF shortfall was $96 million, and the City’s share of the VLF shortfall was $5.7 million. The State’s 2022-23 adopted budget included appropriations to make San Mateo County whole for the 2020-21 VLF shortfall. However, the State’s proposed 2023-24 budget that was published in January 2023 did not include any budget appropriations for the FY 2021-22 VLF shortfall of $33 million. Despite the collective efforts from San Mateo County and every local city within San Mateo County to contact state representatives to Chart 4: Five-Year Historical Real Property Transfer Tax by Quarter 8 445 of 763
Transmittal of Proposed Budget
address the 2021-22 VLF shortfall, the appropriation was not included in the State's May 2023 revise budget. Over the next 7-10 years, it is expected that the remaining non-basic aid school districts will gradually shift to basic aid status, and as such, the VLF shortfall will grow exponentially, from the shortfall of $70 million for FY 2022-23 to over $370 million by 2032-33, of which the City’s share would be approximately $20 million. The General Fund Long-Term Plan assumes that the State will honor San Mateo County’s VLF shortfall claim each year.

Pension
In July 2021, CalPERS reported a preliminary return on investment (ROI ) of 21.3% for fiscal year 2020-21. At first blush, higher interest returns may have seemed favorable, but interest is a measure of risk, and the deviation from the discount rate meant that CalPERS’ investment portfolio was taking on too much risk. As such, the Funding Risk Mitigation Policy (RMP) was triggered, which reduced the discount rate from 7.0% to 6.8%. The investment gain – the difference between the 7.0% discount rate and the 21.3% ROI, will be amortized over 20 years, with a ramp up over the first five years (1/5th or 20% of the annual amortization amount recognized each year), beginning in the actuarial valuations with a measurement date of June 30, 2021, which applies to the pension contribution rates for 2023-24. The reduction of the discount rate will be amortized over 20 years with no ramping, as ramping for changes in actuarial assumptions was eliminated beginning in measurement periods of June 30, 2019.

Due to the high degree of market volatility, in the fiscal year ended June 30, 2022, CalPERS reported an investment return of negative 7.5%. Of note, the investment loss that will be amortized over a 20 year period beginning in FY 2024-25 is the difference between negative 7.5% and the discount rate of 6.8%. Once the five-year ramping has been completed, the increase in pension contributions as a result of the loss will be an additional $10 million per year. Over the 20-year amortization period, the City will pay $177 million in additional pension contributions as a result of CalPERS’ investment loss from FY 2021-22.

Chart 5: CalPERS ROI and discount rate 1992 - 2022
9 446 of 763
Transmittal of Proposed Budget
Every deviation between the ROI and the discount rate (gain or loss) results in an amortization base being generated, which is essentially a mortgage or loan that is paid off over time. Gains or losses incurred before June 30, 2019 have an amortization period of 30 years, while subsequent gains or losses are amortized over 20 years; a policy change to reduce the cost of interest expense. In addition to the payment on the UAL, the City’s pension contribution also includes the normal cost, which is the cost for the current year of service. Assuming that CalPERS will be able to achieve its long-term ROI of

6.8%, as shown in the table below, it takes nearly all of the City’s sales tax revenues, which is second to only property tax as the General Fund’s top tax revenue source, to cover the escalating cost of pension contributions for the General Fund.

FISCAL YEAR

GENERAL FUND

PENSION NORMAL
COST

GENERAL FUND

PENSION UAL

GENERAL FUND

PENSION TOTAL

PROJECTED LOCAL
1% SALES TAX

REVENUE

PENSION AS A

PERCENTAGE

OF SALES TAX
2023-24 $ 5.4 $ 13.5 $ 18.9 $ 23.9 79%
2024-25 5.6 18.7 24.3 24.8 98%
2025-26 5.6 19.3 24.9 25.7 97%
2026-27 5.5 20.5 26.0 26.6 98%
2027-28 5.5 21.5 27.0 27.4 99%
2028-29 5.4 23.5 28.9 28.2 102%
2029-30 5.4 24.0 29.4 29.1 101%
2030-31 5.4 24.6 30.0 29.9 100%
2031-32 5.4 23.9 29.3 30.8 95%
2032-33 5.5 23.7 29.2 31.8 92%
In millions.

Opportunities
Capital and Infrastructure Investments
As a result of the City Council’s fiscal discipline and prudence during the period of economic recovery and growth after the Great Recession, the City is positioned to continue investing in capital and infrastructure during this period of economic volatility. We continue to move closer to completion of the $1 billion Clean Water Program and leveraged low interest loans with the Environmental Protection Agency (EPA) through the Water Infrastructure Finance and Innovation Act (WIFIA) and the State of California’s State Revolving Fund (SRF) to save rate payers over $170 million compared to issuing debt through the municipal bond market. Tremendous progress is being made now that will upgrade and expand the wastewater treatment plant to provide high-quality services to our community for decades to come.

Other major initiatives that are underway include accelerated street repair and reconstruction, and the flood control infrastructure in North Shoreview. In February 2020, the City, through the San Mateo – Foster City Public Financing Authority, issued $42.3 million in lease revenue bonds to finance these improvements. For streets, approximately 6.0 miles of failed streets remain from the original 22 miles that were identified in 2013, which was identified as the Smooth Streets Program. Funding from the bonds will be utilized to accelerate street improvement projects, and we are on target to complete the Smooth Streets Program and eliminate the remaining 6.0 miles of failed streets by 2026. Funding from the bonds will also be utilized to finance flood control improvements, which will take the North Shoreview neighborhood off the FEMA flood map and save residents from the cost of flood insurance.

The 2023 – 2028 Capital Improvement Program (CIP) includes $13.8 million in Bikeway/Pedestrian capital improvements, which include $5.8 million for the 101/92 Multi-Modal Fashion Island Class IV Bike Lane project. The 2023 – 2028 CIP has nearly 4X the amount of funds included for Bikeway/Pedestrian CIP projects than the 2021 – 2025 CIP, reflecting the City’s investment in the projects identified in the Bicycle Master Plan 2020.

Table 3: 10-Year Pension Contributions & Local 1% Sales Tax Projection 10 447 of 763
Transmittal of Proposed Budget
Carrying on the Clean Water Program, Smooth Streets Program, flood control improvements, and bicycle/pedestrian initiatives like the above are a testament to the investment and commitment we make to our community, even as we face economic uncertainty and volatility. The work continues, and I am confident that the investments we are making now will position our community for long-term success.

Affordable Housing
In partnership with MidPen Housing, the City is on target to deliver Kiku Crossing, a 100% affordable 7-story apartment building that will provide 225 homes for low- income residents as well as a new 5-story parking garage with 688 spaces, which includes 524 publicly-accessible spaces. The garage is expected to open later this summer and the affordable housing community will start welcoming new residents in the spring of 2024. The City is contributing land under a long-term ground lease as well as $12.5 million towards construction, while other funding for the $170 million development comes from a $5.2 million loan from the County of San Mateo, a $3.8 million loan from the Housing Endowment and Regional Trust (HEART) of San Mateo County, loans from the California Housing Finance Agency, financing from Bank of America, federal tax credits, and tax- exempt bonds.

Another example of partnering with public and private entities to bring affordable housing developments to fruition is Bespoke, which is proposed 5-7 story mixed-use development that would add 60 units of affordable housing, 156,000 square feet of retail and office space and 128 underground parking spaces. The site includes the City’s parking lot on 4th Avenue and the former Talbot’s Toy Store.

The Kiku Crossing and Bespoke developments are examples of partnerships with public and private entities that the City will continue to pursue in the future to address the community priority of affordable housing.

Measure S
Measure S, the 0.25% transactions and use tax extension, maintains funding for its core priorities, which include safety, public services, and infrastructure improvements. The proposed 2023-24 budget appropriates $3.85 million in Measure S funds for CIP projects, including $1.0 million for improvements to the Police Department roof, $0.9 million for external radio infrastructure, $0.8 million for citywide street reconstruction, $0.5 million for synthetic field replacement, $0.4 million for the stormwater system management and improvement program, and $0.25 million for replacement of the Bermuda Drive Bridge. While Measure S revenues experienced some retraction result of COVID-19, they were not impacted to the same degree as sales tax revenues due to differences in tax law. The local 1% sales tax is assessed, collected, allocated, and remitted pursuant to the Bradley Burns Uniform Sales and Use Tax Law, while the Measure S ¼ cent transactions and use tax is under the State of California’s District Tax Law. Revenues will continue to be monitored carefully, and recommendations on funding adjustments will be presented to the Measure S Oversight Committee as appropriate.

Investment in Core Services
The City continues to invest in core services, including public safety, library, and parks and recreation. This is consistent with the City’s focused efforts to maintain services levels during COVID-19 to provide service to the San Mateo community when it needed them the most.

The proposed 2023-24 budget includes increases in certain services, largely in high-priority/high-visibility issues, such as planning and engineering, to provide enhanced service levels while maintaining fiscal discipline.

The Housing Element, which is currently being modified in response to comments from the California Department of Housing and Community Development (HCD), provides for the City to resume contributing 20% of the City’s share of residual property tax from the former redevelopment agency (RDA), also known as boomerang funds, toward the housing set aside, which can be used as a funding source for affordable housing projects. In conjunction with the City’s Linkage Fee Fund and future partnerships with public and private entities, the City is positioned to continue pursuing affordable housing developments in the future.
11 448 of 763
Transmittal of Proposed Budget
Concluding Remarks
I remain optimistic about the City’s ability to continue investing in its capital and infrastructure improvements amid the uncertain and volatile economic headwinds. The City’s present fiscal position reflects the discipline and prudence of the City Council in the period of economic recovery and growth that followed the Great Recession. The General Fund LongTerm Financial Plan illustrates the long-term strength of the City’s fiscal position, which anticipates drawing on the Rainy Day Reserve from $71.5 million in 2023 to $12.6 million in 2031 to maintain core services and invest in capital and infrastructure improvements. Absent the Rainy Day Reserves, the proposed 2023-24 budget and the General Fund Long-Term Financial Plan would have needed to evaluate service level reductions.

The development and delivery of the recommended budget to the City Council is the culmination of months of work from staff throughout the organization, and it is a true team effort. First and foremost, I would like to thank the City Council for articulating a vision and setting priorities that helped us develop the budget. I would also like to thank the executive team, along with their respective staff members, for their efforts in supporting the budget development process. And finally, I’d like to thank the members of the Finance Department, led by Finance Director Rich Lee, who drove the process to develop the budget and prepare this document.

Respectfully submitted,
Drew Corbett, City Manager
12 449 of 763
CITY OVERVIEW 21
City Overview
13 450 of 763
City Council Vision
San Mateo
• Is a pre-eminent City between San Francisco and San Jose. • Has strong, attractive commercial areas and viable, wholesome neighborhoods. • Has a solid, healthy economic and financial base that cultivates innovation and technology. • Includes its diverse population in all facets of community life and is a nurturing place for youth. • Is safe and has well maintained infrastructure.
• Is the cultural center of the County.
• Is increasingly sustainable and a leader in reducing carbon emissions.

To achieve this vision, the San Mateo City Government will:
• Facilitate the effective functioning and development of the community and its citizens. • Ensure all elements of the community are well represented in the government process. • Serve as both a facilitator and a provider in seeing that community needs and desires are addressed through the most appropriate, effective delivery system whether it is public, non-public, or public/private partnership. • Serve as a consensus builder in the community and articulate collective direction. • Maintain a responsive, capable staff dedicated to serving the community in a non-bureaucratic manner and provide high value for the expenditure of public funds.
• Look to the long-term future of the community and seek constant improvement, including increasing sustainability and reducing the community's carbon footprint.
• Be a full partner in the sharing of common services and regional affairs that affect the City. 14 451 of 763
City Council Strategic Direction
The strategic directions express key targets that must be accomplished to achieve its vision. These strategic directions are:

Safe, Clean, and Attractive Neighborhoods
• Ensure higher levels of public safety, especially in neighborhoods under the most stress. • Enhance the quality of residential neighborhoods by encouraging improved appearance and more community involvement.

Successful Businesses and a Solid Tax Base
• Increase the economic vitality of the City with strengthened ties between business and the general community.

A Community Where Residents Can Flourish and Youth are Nurtured • Continue to encourage involvement of youth in our community by improving programs for children, pre-teens, and teens.
• Continue to support efforts to improve access to and affordability of early childhood care and education.

Orderly Planning, Development, and Functioning of the Community • Support future growth and redevelopment in Downtown, other commercial areas, and along the transportation corridor to ensure a well-planned environment and promote a high quality of life. • Continue efforts to increase entry-level housing, strive for a balance between jobs and housing, and provide incentives for City employees to live in San Mateo.
• Continue to invest in the long-term infrastructure needs of the City and create an identity for San Mateo that generates civic pride and responsibility.

An Open, Participative, and Effective City Government
• Continue to provide cost-effective and quality services that are accessible to all segments of the San Mateo community.
• Maintain City finances where expenses do not exceed ongoing revenues. • Expand community outreach and participation opportunities for all who live and/or work in San Mateo. • Continue to cooperate with regional partners, schools, and other agencies to improve infrastructure and services, strengthen partnerships, avoid duplication, and decrease costs. • Develop and maintain an organization that values employee participation and a sense of ownership. 15 452 of 763
City Council Priorities
Items to be Completed within the Fiscal Year:
• Design and implement capital improvements for
permanent street closure
• Create a racial equity community art project
• Analyze density minimums for mixed-use projects and
update the Density Bonus and Community Benefits
policies
• Initiate a Community Budget Process for anticipated
revenue from Measure CC
• Remove North Shoreview from FEMA Flood
Assessment
• Study campaign finance reform policies, including
voluntary expenditure limit, disclosure requirement for independent expenditures, and improving access for
voter education initiatives
• Explore increasing representation of youth and
seniors on City Boards and Commissions
• Establish policies to decarbonize existing buildings
and infrastructure and eliminate methane gas use by
2030
• Integrate master plans to increase efficiency and
community impact
Items to be Completed within 2 to 5 Years:
• Implement the Climate Action Plan and work to reduce
greenhouse gas emissions
• Consider the adoption of wage theft protections
• Explore the establishment of Property-Based
Improvement Districts
• Explore the implementation of a Customer Response
Management or 311 system
• Adopt a Retail Cannabis Ordinance
• Review and update the City Charter related to
district elections, mayoral rotation, and filling Council vacancies
• Enhance city-wide disaster response and emergency
preparedness
• Update the General Plan
• Implement Housing Element Policies
• Address structural issues at the Marina Library
• Reconstruct all failed streets in San Mateo by 2026
• Replace all remaining high voltage circuits to improve safety and reliability of the street light system
• Fund and deliver the Clean Water Program
Items to be Completed in 5 or More Years:
• Implement Library Space Master Plan
• Implement the Central Park Master Plan
• Expedite efforts to improve the stormwater collection, drainage, and storage system, including dredging the
Marina lagoon
• Meet the 100% trash reduction mandate
• Implement a Green Fleet by 2030
• Expedite efforts to produce potable water from the
Clean Water Program
• Minimize impacts to residents from train horn noise at City at-grade crossings
• Plan for the downtown grade separations and longterm train corridor improvements • Improve traffic flow on 19th Ave and Fashion Island
Boulevard from Grant to Mariners Island Boulevard
• Complete all High and Medium-High priority projects
in the 2020 Bicycle Master Plan and the Pedestrian
Master Plan
16 453 of 763
17 454 of 763
City Profile
Location
The City of San Mateo is located in San Mateo County, on the Peninsula in the San Francisco Bay Area. It is bordered by Burlingame to the north, Foster City to the east, Belmont to the south, and Hillsborough to the west. The City is conveniently situated 19 miles south of San Francisco and 30 miles north of San Jose. It covers an area of 15.4 square miles, including 3.87 square miles of tidelands from the San Francisco Bay to the east and a range of coastal mountains to the west.

The City
The City was incorporated in 1894 and was originally
chartered in 1922. The current charter was adopted in 1971 and revised in 2002. San Mateo has a Council-Manager
form of government. The five Council members serve
at-large for four-year terms. The Council selects a Mayor from among its members each December for a one-year
term. The Mayor and City Council serve as the legislative and policy making body of the City. The City Manager,
appointed by the Council, serves as chief executive officer and is responsible for the day-to-day administration of City affairs. The City Council also appoints a City Attorney.

There are twelve Advisory Boards and Commissions.

Services
The City provides a full range of municipal services.

These include police, planning, building, sewer, street maintenance, and general administrative services. Fire
service is provided by the San Mateo Consolidated Fire
Department. Water is provided to the residents of the
City of San Mateo by California Water Services, a private company. The City operates and maintains facilities for wastewater treatment. In addition, the City offers thirty-five parks, six recreation centers, three libraries, and an 18-hole golf course. The San Mateo Performing Arts Center hosts productions by numerous local, regional, and international artistic enterprises, including the Peninsula Ballet Theatre, the Peninsula Civic Light Opera, and the Peninsula
Symphony. San Mateo has abundant shopping areas,
including two major regional shopping centers, Hillsdale Shopping Mall, and Bridgepointe.

Population and Demographic
Characteristic
Based on the California Department of Finance, the City’s population as of 2022 was just under 104,000, which
represents about 13.94% of the countywide population.

Also based on the most recent U.S. Census data, per capita personal income for San Mateo residents was $76,157,
which is slightly above the amount for San Mateo County as a whole ($61,545) and well above the value for the State of California ($36,955). According to the the Employment Development Department, the City's unemployment rate is

1.5%, which is slightly below the County's unemployment rate at 1.7%.
18 455 of 763
City Profile
Local Economy
San Mateo is centrally located in the San Francisco Bay Area and has direct access to interstate highways, rail lines, a trans-bay bridge, public transit routes, and the San Francisco International Airport. San Mateo serves
as a center of commercial and residential activity. The Transit Center is a multi-modal transportation hub allowing people to board Caltrain to destinations as far north as San Francisco and as far south as Gilroy.

The community is comprised of residences of all types
and at a range of costs, major retail and commercial
establishments, a downtown transit center, a community
college, and two major medical centers. It is also the
home of the San Mateo County Events Center. The robust
economy has renewed interest in the downtown area,
which continues to attract quality small- to medium-sized businesses. The main City Library, completed in 2006,
is the cultural center of the City and benefits many local and regional patrons. The Police Station, completed in
2009, serves as the headquarters to protect and serve the residents in the City.

City Statistical Data
Miscellaneous statistical data for the City of San Mateo is as follows:

Date of Incorporation
1894
Form of Government
Council-Manager
Area in Square Miles

15.4 Capital Assets
6 Community Centers
3 Libraries
35 Parks
1 Golf Course
1 Police Station
6 Fire Stations
204 miles of streets / 7,500 street lights 260 miles of sanitary sewers
148 miles of storm drains
Median Age of Residents

37.8 Public School Enrollment
20,012
Top Employers
County of San Mateo Medical Center
Sony Interactive Entertainment
San Mateo Union High School District
San Mateo-Foster City Unified School District
San Mateo Community College District
Franklin Templeton Investor
19 456 of 763
City Organizational Chart

COMMUNITY

DEVELOPMENT
PUBLIC

WORKS POLICE PARKS &

RECREATION LIBRARY INFORMATION

TECHNOLOGY FINANCE HUMAN

RESOURCES

OPERATING DEPARTMENTS

CITY MANAGER CITY CLERK

CITY ATTORNEY

CITY COUNCIL

COMMUNITY OF SAN MATEO

BOARDS & COMMISSIONS
Civic Arts Committee
Community Relations Commission
Investment Advisory Committee
Library Board
Measure S Oversight Committee
Mosquito and Vector Control District
Parks & Recreation Commission
Personnel Board
Planning Commission
Senior Citizens Commission
Sustainability and Infrastructure Commission
Youth Advisory Council
Mayor
Deputy Mayor
Council Member
Council Member
Council Member
City Manager
City Attorney
City Council
Amourence Lee
Lisa Diaz Nash
Adam Loraine
Rob Newsom Jr.

Rich Hedges
Drew Corbett
Prasanna Rasiah
Assistant City Manager
City Clerk
City Librarian
Community Development Director
Finance Director
Human Resources Director
Information Technology Director
Parks and Recreation Director
Police Chief
Public Works Director
Department Heads
Kathy Kleinbaum
Patrice Olds
James Moore
Christina Horrisberger
Rich Lee
Teresa Abrahamsohn
Pete Owen
Joanne Magrini
Ed Barberini
Azalea Mitch
20 457 of 763
Basis of Budgeting
Fund Accounting Budget System
The City of San Mateo’s budget is organized on the
basis of the fund accounting system, in which each fund is considered a separate budgeting entity. Government
resources are allocated to and expenses accounted for
in individual funds based upon the purposes for which
they are to be spent and the means by which spending
activities are controlled. All operating funds’ budgets lapse at the end of the adoption cycle. The capital projects fund appropriations are valid for the life of the projects. The City also maintains an encumbrance accounting system as one
technique of accomplishing budgetary control. Encumbered amounts in the operating budget lapse one year after
the end of the fiscal year. There is no formal provision in departmental budgets for depreciation and compensated
absences (i.e. accrued vacation and sick leave time), but they are budgeted as internal services fund charges. The following fund types are used by the City:

Governmental Fund Types
All governmental fund budgets are accounted for using
a current financial resources measurement focus and a
modified accrual basis.

General Fund
This fund accounts for all financial resources not required to be accounted for in other funds, and is the general
operating fund of the City. The General Fund has four subfunds: the Measure S Tracking sub-fund, the Downtown Services sub-fund, the Recreation Services sub-fund, and the Golf sub-fund.

Special Revenue Funds
These funds account for the City’s revenues from sources which, by law or administrative action, are designated to finance particular functions or activities other than capital projects or expendable trusts.

Debt Service Funds
These funds account for the accumulation of financial
resources for and the payment of principal, interest, and related costs on general long-term debt.

Capital Programs Funds
These funds account for financial resources to be used
for the acquisition or construction of major capital facilities (other than those financed by Proprietary Fund Types).

Proprietary Fund Types
All proprietary fund budgets are accounted for on a flow of economic resources measurement focus and a full accrual basis.

Enterprise Funds
This fund accounts for operations of the City that are
financed and operated in a manner similar to private
business enterprises.

Internal Service Funds
These funds account for the financing of services provided by one department to other departments on a costreimbursement basis.

Budgetary Controls
Effective July 1, 1986, the City implemented a two-year budget cycle. The two-year budget process requires that each department submit two one-year expenditure plans
and revenue estimates to the City Council for approval.

Only the first of the two years’ budget will be adopted. In each alternate year, City staff makes recommendations to the City Council for amending the second-year plan. In any budget cycle, to remain adaptable to changing economic
and/or operational conditions, the City may choose to
develop one-year instead of two-year budget plans.

The Department Heads are responsible for containing
expenditures within their budgeted appropriations as
approved by the City Council. Subsequent to the adoption of the budget, all additional changes to the budget require City Council approval.

Activities of the General Fund, Special Revenue Funds,
Debt Service Funds, Proprietary, and Capital Funds are
included in the annual budget. The level of budgetary
control is the department within each fund.
21 458 of 763
Budget Preparation Timeline
July Through September
• Departments report out on performance and workload
indicators from the previous fiscal year.
• Encumbrances and capital project carryovers are
incorporated into department budgets and long-term
financial plans of each applicable fund.
• Preliminary financial results from the previous fiscal year are reported to Council.
• Initial scoping meetings are held between Department
Heads and the City Manager to discuss any significant
changes to the departmental operating or capital
budget that will be proposed for the upcoming cycle.

October Through December
• Schedule for the development of the following
fiscal year’s budget is established and distributed to
departments.
• Final financial results from the previous fiscal year, in the form of the Comprehensive Annual Financial
Report, are presented to Council.
• Development of internal service charges and cost
allocations begins.
• Budget direction and guidance are provided to
departments.

Like any large, complex organization, the process to develop and produce the budget is continuous throughout the fiscal year, which runs from July 1 to June 30. The major activities and milestones are as follows:

January Through March
• City Council holds its annual goal setting session to identify budget priorities.
• Annual mid-year financial report is delivered to
Council.
• Departmental operating and/or capital budget
requests are received and evaluated by Finance and
the City Manager’s Office.
• Revenue projections for major General Fund tax
revenues are finalized.

April Through June
• City Council approves Master Fee Schedule during a
public hearing.
• Long-term financial plans for applicable funds are
finalized.
• Study session is held with Council to introduce
major components of the budget and receive final
feedback and guidance prior to the delivery of the
recommended budget.
• City Council holds two public hearings on the
recommended budget.
• Final budget adopted by the City Council.
22 459 of 763
Budget Preparation Process
2023-24 Budget Development Process
The City is on a two-year budget cycle, and it alternates its budget preparation focus between the operating budget and the capital budget. For the 2022-23 budget year, the focus was on the operating budget. The primary focus was establishing a baseline budget. The final service level set for 2022-23 was maintained for the 2023-24 budget. As such, updates to the 2023-24 operating budget primarily focused on adjusting salary and benefits amounts to accommodate changes in costs, as well as updating General Fund revenues to reflect revised projections.

The development of the 2023-24 budget began in the second half of calendar year 2022, as the Capital Improvement Program (CIP) Committee convened to scope out the plan for collection, evaluating, and funding the projects included in the 5-year CIP. This committee consists of the City Manager, Assistant City Manager, Finance Director, Public Works Director, and Parks and Recreation Director. The collection phase of the process consisted of evaluating the status of the currently budgeted projects in the 5-year CIP, inventorying all existing unfunded projects, and identifying any new capital requests. Once that was completed, the departments, primarily Public Works and Parks and Recreation, updated cost estimates for all existing projects, funded and unfunded, and established initial estimated for new capital projects. The CIP Committee then developed an initial list of priority projects for funding, which predominantly consisted of existing projects that had been previously slated for funding. In parallel, staff from Finance, Public Works, and Parks and Recreation updated revenue estimated from the various project funding sources to determine the overall capacity to fund priority projects. The CIP Committee utilized this information to then make final funding decisions on projects for the 2023-28 5-year CIP. This process concluded in mid-March, and once the final determinations were made on funded and unfunded projects, staff began the process of updating project charters and project financials for inclusion into the budget document.

In mid-April, staff presented City Council with a preview of the recommended budget which primarily focused on General Fund revenues, the long-term financial plan, and pension related costs. Staff incorporated Council feedback and finalized numbers for the 2023-24 budget, which included five- and ten-year financial plans for each of the applicable funds.

Attention then turned towards the design and creation of the budget document. The proposed 2023-24 budget document was delivered at the first City Council meeting in June and public hearings were held with the final budget adopted before June 30.
23 460 of 763
GFOA Financial Reporting Award
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of San Mateo
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
24 461 of 763
GFOA Budget Award

25 462 of 763
CSMFO Budget Award
Ca
lifo
rn
i
a S
o
c
i
e
t
y of
M
un
i
c
ip
a
l Fin
a
n
c
e Offi
c
e
rs
Certificate of Award
Operating Budget Excellence Award
Fiscal Year 2020-2021
Presented to the
City of San Mateo
For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting January 31, 2021
Marcus Pimentel Michael Manno, ChairCSMFO President Recognition CommitteeDedicated Excellence in Municipal Financial Reporting 26 463 of 763
BUDGET OVERVIEW 37
Budget
Overview
27 464 of 763
Citywide Sources of Funding
CATEGORY 2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Property Tax $ 74,796,573 $ 82,305,678 $ 80,071,293
Sales Tax 33,408,980 32,841,385 35,208,160
Property Transfer Tax 14,344,715 11,100,000 8,000,000
Transient Occupancy Tax 4,327,497 3,771,250 7,000,000
Business License Tax 6,911,680 6,179,303 6,302,889
Franchises 3,117,140 3,156,064 3,193,385
Building and Other Permits 6,525,364 12,234,000 7,234,000 Capital Contribution 21,390,541 5,324,047 5,415,527
Charges for Services 81,254,796 90,266,377 91,033,097
Department In Lieu Payments 6,161,791 6,352,203 6,488,762 Fines, Forfeitures, and Penalties 2,201,171 1,881,000 1,881,000 Impact Fees 687,799 2,800,000 2,705,482
Intergovernmental 23,286,199 13,899,593 17,387,951
Investment Income (7,036,405) 4,699,000 5,057,000
Special Assessments 4,554,025 5,557,214 13,746,296
Other 9,317,792 7,067,190 5,154,978
Total Citywide Sources of Funding $ 285,249,658 $ 289,434,304 $ 295,879,820 *Fees and Charges include charges for services; fines, forfeitures, and penalties; franchises; impact fees; special assessments. **Tax Revenues include property tax, sales tax, property transfer tax, transient occupancy tax, business license tax. 2% 2%
2%
38%
2% 6%
46%
2%

CITYWIDE SOURCES OF FUNDING
2023‐24 ($295.9 MILLION)
Building and Other Permits
Capital Contribution
Department In Lieu Payments
Fees and Charges
Intergovernmental
Investment Income
Tax Revenues
Other
28 465 of 763
Citywide Sources of Funding
FUND 2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
General Funds
General $ 141,688,458 $ 140,903,673 $ 140,389,551
Measure S Tracking 6,965,952 7,160,000 7,314,000
Downtown Services 3,874,266 2,357,567 2,362,966
Recreation Services 3,119,699 3,571,224 3,571,224
Golf 3,551,302 3,240,250 3,240,250
General Funds Total $ 159,199,677 $ 157,232,714 $ 156,877,991 Special Revenue Funds
Police Grants and Safety $ 416,511 $ 731,620 $ 569,539
Solid Waste 3,620,850 3,427,160 3,432,160
HOME 86,796 15,000 15,000
Community Development Block Grant 1,774,130 740,000 704,000 Advance Planning 906,210 2,075,603 1,842,000
Construction Services 7,741,384 8,799,100 8,820,100
Gas Tax 2,167,996 3,016,154 3,030,448
City Housing 149,789 84,000 34,000
Low and Moderate Income Housing Asset 192,987 278,000 287,000 Parks and Recreation Revenue (192,336) 2,423,054 10,967,136 Traffic Impact Fee 4,387 2,532,000 2,537,482
Commercial Linkage Fee 7,476 5,109,000 125,000
Road Maintenance and Rehabilitation Account 2,021,962 2,363,876 2,631,190 Permanent Local Housing Allocation 174,977 1,031,409 500,000 Landfill 517,574 654,000 655,000
Special Revenue Funds Total $ 19,590,695 $ 33,279,976 $ 36,150,055 Debt Service Funds
Street and Flood Control Projects Bond $ (7,927) $ - $ - General Obligation Bonds 2,320,194 2,138,250 2,148,050
2% Hotel Tax 650,369 538,750 1,000,000
Debt Service Funds Total $ 2,962,636 $ 2,677,000 $ 3,148,050 Capital Improvement Projects Funds
Capital Improvement Project $ 12,618,460 $ 10,251,914 $ 12,764,825 Capital Improvement Projects Funds Total $ 12,618,460 $ 10,251,914 $ 12,764,825 Enterprise Funds
Sewer $ 91,701,421 $ 85,460,700 $ 86,246,900
Enterprise Funds Total $ 91,701,421 $ 85,460,700 $ 86,246,900 Internal Service Funds*
Vehicle and Equipment Replacement $ 1,301,156 $ 1,997,522 $ 2,190,909 Fleet and Building Maintenance 5,406,903 5,522,149 5,852,465 Benefits 39,439,371 42,478,685 44,802,199
Dental 801,735 762,000 785,000
Workers’ Compensation 4,071,096 3,891,000 4,110,000
Comprehensive Liability 1,629,156 2,265,000 2,825,000
Internal Service Funds Total $ 52,649,418 $ 56,916,356 $ 60,565,573 Total Citywide Sources of Funding $ 285,249,658 $ 289,434,304 $ 295,879,820 * For Internal Service Funds, only investment income is included in the Total Citywide Sources of Funding. 29 466 of 763
City Operating Budget
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
City Attorney $ 1,375,236 $ 1,720,755 $ 1,503,578
City Clerk 896,187 1,073,678 862,087
City Council 304,992 410,513 356,898
City Manager 2,302,795 2,961,554 2,729,951
Community Development 20,516,951 15,794,640 15,450,294
Finance 3,936,796 4,304,505 4,179,696
Human Resources 2,104,301 2,340,102 2,284,816
Information Technology 4,020,396 4,755,428 4,814,162
Library 7,645,000 8,659,504 8,925,860
Parks and Recreation 18,591,082 21,329,979 21,666,729
Police 51,843,793 56,719,287 58,845,018
Public Works 34,798,605 42,964,767 44,686,932
San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs 31,312,121 32,845,860 34,279,728 Non-Departmental 27,511,484 23,843,873 38,498,169
Total City Operating Budget $ 207,159,739 $ 219,724,445 $ 239,083,917 Department totals shown in millions.
* Citywide Administration includes these departments: City Attorney, City Clerk, City Council, City Manager, Finance, Human Resources, and IT.

Totals do not include internal services.

DEPARTMENT
$38.5
$34.3
$44.7
$58.8
$21.7
$8.9
$15.5
$16.7
0% 5% 10% 15% 20% 25% 30%

CITYWIDE OPERATIONS BY DEPARTMENT
2023-24 ($239.1 MILLION)
Citywide Administration*
Community Development
Library
Parks and Recreation
Police
Public Works
San Mateo Consolidated Fire Department
Contribution and Fire Legacy Costs
Non-Departmental
30 467 of 763
City Operating Budget
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Salaries and Wages $ 60,243,840 $ 69,726,927 $ 73,130,145 Benefits 34,763,480 42,397,485 43,898,352
Operating 80,840,297 74,754,173 87,775,691
San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs 31,312,121 32,845,860 34,279,728 Total City Operating Budget $ 207,159,739 $ 219,724,445 $ 239,083,917

CATEGORY
Totals do not include internal services.
31%
18%
37%
14%

CITYWIDE OPERATIONS BY CATEGORY
2023-24 ($239.1 MILLION)
Salaries and Wages
Benefits
Operating
San Mateo Consolidated Fire
Department Contribution and Fire
Legacy Costs
31 468 of 763
City Operating Budget
FUND 2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
General Funds
General $ 121,118,852 $ 132,853,256 $ 137,871,879
Measure S Tracking 1,712,265 2,038,666 2,118,775
Downtown Services 3,895,739 4,852,348 4,645,244
Recreation Services 7,727,741 9,407,271 9,546,193
Golf 3,039,195 3,292,921 3,332,729
General Funds Total $ 137,493,791 $ 152,444,462 $ 157,514,820 Special Revenue Funds
Police Grants and Safety $ 426,520 $ 1,076,456 $ 863,856 Solid Waste 1,890,702 2,719,926 3,272,189
HOME 655,434 10,000 10,000
Community Development Block Grant 763,795 502,076 252,899 Advance Planning 1,514,332 1,904,075 1,422,665
Construction Services 9,932,380 11,797,587 12,459,069
City Housing 48,476 228,500 198,500
Low and Moderate Income Housing Asset 2,934,340 148,793 146,399 Parks and Recreation Revenue 16,866 16,390 16,882
Commercial Linkage Fee 4,005,141 4,936 5,084
Permanent Local Housing Allocation 198,376 500,000 500,000 Landfill 72,943 97,358 96,586
Special Revenue Funds Total $ 22,459,303 $ 19,006,097 $ 19,244,129 Debt Service Funds
Street and Flood Control Projects Bond $ 2,663,280 $ 2,692,749 $ 2,691,764 General Obligation Bonds 2,079,265 2,098,428 2,107,913
2% Hotel Tax 595,887 860,667 976,889
Debt Service Funds Total $ 5,338,432 $ 5,651,844 $ 5,776,566 Enterprise Funds
Sewer $ 41,868,213 $ 42,622,042 $ 56,548,402
Enterprise Funds Total $ 41,868,213 $ 42,622,042 $ 56,548,402 Total City Operating Budget $ 207,159,739 $ 219,724,445 $ 239,083,917 Internal Service Funds*
Vehicle and Equipment Replacement $ 1,766,844 $ 9,544,779 $ 8,890,507 Fleet and Building Maintenance 5,072,540 5,903,135 5,925,519 Benefits 39,821,861 42,233,889 44,256,881
Dental 514,465 770,000 808,000
Workers’ Compensation (1,242,449) 4,273,937 4,324,619
Comprehensive Liability 3,735,078 2,789,361 3,460,905
Internal Service Funds Total $ 49,668,340 $ 65,515,102 $ 67,666,430 * Informational figures only. Not included in totals since they are already included in departmental budgets. 32 469 of 763
Schedule of Interfund Transfers
FUND
In Out
General Fund
From Measure S Tracking Fund 339,032 $ - $
From Construction Services Fund 5,499,933 -
From Gas Tax Fund 1,747,500 -
To Downtown Services Fund - 2,282,278
To Recreation Services Fund - 5,974,969
To Golf Fund 92,479 -
To Capital Improvement Program Fund - 12,250,000
To Vehicle and Equipment Replacement Fund - 410,000
Total $ 21,009,726 7,586,465 $
Measure S Tracking Fund
To General Fund $ 339,032 - $
To Street and Flood Control Projects Bond Fund - 2,691,887 To Capital Improvement Projects Fund - 3,850,000
Total $ 6,880,919 - $
Downtown Services Fund
From General Fund 2,282,278 $ - $
Total $ - 2,282,278 $
Recreation Services Fund
From General Fund 5,974,969 $ - $
Total $ - 5,974,969 $
Golf Fund
From General Fund $ - 92,479 $
Total $ - 92,479 $
Solid Waste Fund
To Capital Improvement Projects Fund - $ 750,000 $
Total $ 750,000 - $
Community Development Block Grant Fund
To Capital Improvement Projects Fund - $ 610,000 $
Total $ 610,000 - $
Construction Services Fund
To General Fund $ 5,499,933 - $
To Capital Improvement Projects Fund - 26,000
Total $ 5,525,933 - $
Gas Tax Fund
To General Fund $ - $ 1,747,500
To Capital Improvement Projects Fund - 520,000
Total $ - $ 2,267,500
2023-24 PROPOSED BUDGET
Transfer
33 470 of 763
Schedule of Interfund Transfers
FUND
In Out
2023-24 PROPOSED BUDGET
Transfer
Parks and Recreation Revenue Fund
To Capital Improvement Projects Fund - $ 3,050,000 $
Total $ 3,050,000 - $
Traffic Impact Fee Fund
To Capital Improvement Projects Fund - $ 49,860 $
Total $ 49,860 - $
Road Maintenance and Rehabilitation Account Fund
To Capital Improvement Projects Fund - $ 2,000,000 $
Total $ 2,000,000 - $
Street and Flood Control Projects Bond Fund
From Measure S Tracking Fund 2,691,887 $ - $
Total $ - 2,691,887 $
Sewer Fund
To Capital Improvement Projects Fund - $ 41,360,000 $
Total $ 41,360,000 - $
Vehicle and Equipment Replacement Fund
From General Fund $ - 410,000 $
To Capital Improvement Projects Fund - 400,000
Total $ 400,000 410,000 $
Capital Improvement Projects Fund
From General Fund 12,250,000 $ - $
From Measure S Tracking Fund 3,850,000 -
From Solid Waste Fund 750,000 -
From Community Development Block Grant Fund 610,000 -
From Construction Services Fund 26,000 -
From Gas Tax Fund - 520,000
From Parks and Recreation Revenue Fund 3,050,000 -
From Traffic Impact Fee Fund 49,860 -
From Road Maintenance and Rehabilitation Account Fund 2,000,000 - From Sewer Fund 41,360,000 -
From Vehicle and Equipment Replacement Fund 400,000 -
Total $ - 64,865,860 $
Total City Transfers $ 83,903,938 $ 83,903,938
34 471 of 763
Capital Improvement Projects (CIP) Budget

CIP BUDGET
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Total City Transfers $ 83,903,938 78,470,916 $
Less Capital Improvement Projects Transfers 58,299,000 64,865,860 Total Operating Transfers $ 20,171,916 $ 19,038,078
Total Capital Improvement Projects Transfers $ 58,299,000 $ 64,865,860 Add Capital Improvement Projects Revenue & Fund Balance 9,629,973 13,166,166 Total Capital Improvement Projects Budget $ 67,928,973 $ 78,032,026 13%
5%
53%
17%
12%
General Fund
Measure S
Sewer Fund (Clean Water Program)
Taxes, Fees, and Charges
Other Sources
35 472 of 763
Full Time Equivalent (FTE) Personnel

DEPARTMENT
2022-23

ADJUSTED
BUDGET
All Funds All Funds
City Attorney 5.00 5.00
City Clerk 4.23 4.23
City Council 5.00 5.00
City Manager 7.48 7.00
Community Development 53.18 56.18
Finance 17.00 17.00
Human Resources 11.20 11.20
Information Technology 14.48 14.48
Library 54.32 54.32
Parks and Recreation 114.22 114.58
Police 170.40 170.40
Public Works 158.69 154.21
Total City 610.24 618.56
2023-24

PROPOSED
BUDGET
36 473 of 763
All Funds Budget Summary

BEGINNING FUND INTERFUND

BALANCE TRANSFERS IN
General Funds
General 1 $ 97,011,607 $ 140,389,551 $ 7,586,465
Measure S Tracking 8,256,610 7,314,000 -
Downtown Services - 2,362,966 2,282,278
Recreation Services - 3,571,224 5,974,969
Golf - 3,240,250 92,479
General Funds Total $ 105,268,217 $ 156,877,991 $ 15,936,191 Special Revenue Funds
Police Grants $ 294,332 $ 569,539 $ -
Solid Waste 10,939,854 3,432,160 -
HOME 433,603 15,000 -
Community Development Block Grant 208,798 704,000 -
Advance Planning 4,458,990 1,842,000 -
Construction Services 35,319,560 8,820,100 -
Gas Tax (564,570) 3,030,448 -
City Housing 939,075 34,000 -
Low and Moderate Income Housing Asset 4,542,207 287,000 - Parks and Recreation Revenue (2,153,972) 10,967,136 -
Traffic Impact Fee (1,707,205) 2,537,482 -
Commercial Linkage Fee 3,263,582 125,000 -
Road Maintenance and Rehabilitation Account 479,657 2,631,190 - Permanent Local Housing Allocation (23,399) 500,000 -
Landfill Fund 3,920,851 655,000 -
Special Revenue Funds Total $ 60,351,363 $ 36,150,055 $ - Debt Service Funds
Street and Flood Control Projects Bond $ 4,843 $ - $ 2,691,887 General Obligation Bonds 5,970,137 2,148,050 -
2% Hotel Tax 13,862 1,000,000 -
Debt Service Funds Total $ 5,988,842 $ 3,148,050 $ 2,691,887 Capital Improvement Projects Funds
Capital Improvement Projects $ 8,138,564 $ 12,764,825 $ - Capital Improvement Projects Funds Total $ 8,138,564 $ 12,764,825 $ - Enterprise Fund
Sewer $ 203,163,361 $ 86,246,900 $ -
Enterprise Fund Total $ 203,163,361 $ 86,246,900 $ -
Internal Service Funds 2
Vehicle and Equipment Replacement $ 17,709,340 $ 2,190,909 $ 410,000 Fleet and Building Maintenance 740,891 5,852,465 -
Benefits (125,442) 44,623,177 -
Dental 1,041,144 785,000 -
Workers' Compensation 4,912,444 4,110,000 -
Comprehensive Liability 866,357 2,825,000 -
Internal Service Funds Total $ 25,144,734 $ 60,386,551 $ 410,000 Total City $ 382,910,347 $ 295,879,820 $ 19,038,078
Note: Governmental Funds are presented using a modified accrual basis and Proprietary Funds are presented using a full accrual basis 1 Vacancy savings shown in the General Fund Long-Term Financial Plan are incorporated in the amounts under the Operating column. 2 For Internal Service Funds, only transfers and investment income are included in totals.

PROPOSED 2023-24 REVENUES
37 474 of 763
All Funds Budget Summary

INTERFUND ENDING FUND
TRANSFERS OUT Operating Transfer to CIP BALANCE
$ 137,871,879 8,759,726 $ 12,250,000 $ 86,106,018 $
2,118,775 3,030,919 3,850,000 6,570,916
4,645,244 - - -
9,546,193 - - -
3,332,729 - - -
$ 11,790,645 $ 157,514,820 $ 16,100,000 $ 92,676,934
$ - $ 863,856 $ - $ 15
3,272,189 - 750,000 10,349,825
10,000 - 438,603 -
252,899 - 610,000 49,899
1,422,665 - 4,878,325 -
5,499,933 12,459,069 26,000 26,154,658
1,747,500 520,000 - 198,378
198,500 - 774,575 -
146,399 - 4,682,808 -
16,882 - 3,050,000 5,746,282
- - 49,860 780,417
5,084 - 3,383,498 -
- - 2,000,000 1,110,847
500,000 - - (23,399)
96,586 - 4,479,265 -
$ 7,247,433 $ 19,244,129 $ 7,005,860 $ 63,003,996
$ - $ 2,691,764 $ - $ 4,966
2,107,913 - 6,010,274 -
976,889 - 36,973 -
$ - $ 5,776,566 $ - $ 6,052,213
$ - $ - $ 13,166,166 $ 7,737,223
$ - $ - $ 13,166,166 $ 7,737,223
$ - $ 56,548,402 $ 41,360,000 $ 191,501,859
$ - $ 56,548,402 $ 41,360,000 $ 191,501,859
$ - $ 8,890,507 $ 400,000 $ 11,019,742
5,925,519 - 667,837 -
44,256,881 - 240,854 -
808,000 - 1,018,144 -
4,324,619 - 4,697,825 -
-3,460,905 230,452 -
$ - $ 67,666,430 $ 400,000 $ 17,874,855
$ 19,038,078 $ 239,083,917 $ 78,032,026 $ 360,972,224

EXPENDITURES
38 475 of 763
Pension Long-Term Forecast
2021-22 2022-23 2023-24 2024-25 2025-26

ACTUALS ESTIMATE ESTIMATE ESTIMATE ESTIMATE
Pension Contribution 1
Miscellaneous $ 9,793,882 $ 10,674,214 $ 10,718,343 $ 11,521,576 $ 11,199,117 Safety 14,207,333 15,287,627 16,216,253 17,262,816 18,096,556 Total Pension Contribution 24,001,215 $ 25,961,841 $ 26,934,596 $ 28,784,392 $ 29,295,673 $ Actuarial Unfunded Liabilities
Miscellaneous $ 94,650,000 $ 93,490,000 $ 92,300,000 $ 90,190,000 $ 88,330,000 Safety 192,090,000 191,580,000 190,230,000 187,530,000 183,700,000 Total Unfunded Liabilities 286,740,000 $ 285,070,000 $ 282,530,000 $ 277,720,000 $ 272,030,000 $ Funded Percentage
Miscellaneous 71% 72% 73% 74% 76%
Safety 60% 61% 62% 63% 64%
Total Funded Percentage 63% 64% 65% 67% 68%
General Fund Pension Contribution as % of General
Fund Expenditures
Miscellaneous 4% 4% 4% 4% 4%
Safety 10% 10% 10% 11% 11%
Safety - Additional Discretionary Payment 0% 0% 0% 0% 0% Total General Fund Pension Contribution 15% 15% 14% 15% 15% Pension Contribution as % of General Fund
Expenditures
Miscellaneous 7% 7% 7% 7% 7%
Safety 10% 11% 10% 11% 11%
Safety - Additional Discretionary Payment 0% 0% 0% 0% 0% Total Pension Contribution 18% 18% 17% 18% 18%
Total Pension Contribution as % of Covered Payroll 3
Miscellaneous 27% 25% 24% 25% 24%
Safety 82% 84% 84% 88% 90%
Safety - Additional Discretionary Payment 0% 0% 0% 0% 0% Total Pension Contribution 44% 43% 42% 43% 43%
1 This is the City's cost after accounting for employees' cost-sharing. 2 General Fund Expenditures only. Transfers out is not included 3 Percentage increases for Safety plan are primarily due to the City's fire operations transferred to a new JPA agency in January 2019, resulting in less covered payrol but with the unfunded liabilities remaining as the City's responsibility 39 476 of 763
Pension Long-Term Forecast
2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33

ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE $ 11,834,116 $ 12,320,259 $ 13,403,301 $ 13,685,410 $ 13,969,121 $ 13,696,614 $ 13,781,645 18,909,766 19,611,492 21,032,223 21,489,767 21,948,635 21,560,911 21,631,148 $ 30,743,883 $ 31,931,752 $ 34,435,525 $ 35,175,177 $ 35,917,756 $ 35,257,525 $ 35,412,794 $ 85,690,000 $ 82,400,000 $ 77,780,000 $ 72,630,000 $ 66,910,000 $ 61,170,000 $ 55,170,000 178,680,000 172,550,000 164,450,000 155,360,000 145,200,000 134,870,000 123,940,000 $ 264,370,000 $ 254,950,000 $ 242,230,000 $ 227,990,000 $ 212,110,000 $ 196,040,000 $ 179,110,000 77% 78% 80% 82% 84% 85% 87%
66% 67% 69% 71% 74% 76% 78%
69% 71% 73% 75% 77% 79% 81%
4% 4% 4% 4% 4% 4% 4%
11% 11% 12% 12% 12% 11% 11%
0% 0% 0% 0% 0% 0% 0%
15% 15% 16% 16% 16% 15% 15%
7% 7% 7% 7% 7% 7% 7%
11% 11% 12% 12% 11% 11% 11%
0% 0% 0% 0% 0% 0% 0%
18% 18% 19% 19% 19% 18% 18%
24% 25% 27% 27% 27% 26% 25%
92% 94% 99% 99% 99% 95% 94%
0% 0% 0% 0% 0% 0% 0%
45% 45% 48% 48% 48% 46% 46%
40 477 of 763
BUDGET OVERVIEW 49
General Fund
41 478 of 763
General Fund Summary

GENERAL FUND
2023-24

PROPOSED
BUDGET
Resources
Property Tax $ 78,022,243
Sales Tax - Local 1% 23,902,400
Sales Tax - 1/4% Measure S 7,314,000
Property Transfer Tax 8,000,000
Transient Occupancy Tax 6,000,000
Business License Tax 6,302,889
Franchises 3,193,385
Golf Fees 3,174,250
Recreation Service Charges 3,567,724
Permits, Fees, and Fines 4,632,500
Intergovernmental 2,806,774
Interest and Miscellaneous 3,473,063
Transfers In - In Lieu Charges 4,688,762
Transfers In - Rent from Sewer Fund 1,800,000
Transfers In - Construction Services 499,933
Transfers In - Gas Tax 1,747,500
Current Resources $ 159,125,424
Use Unassigned Fund Balance $ 12,591,283
Total Resources $ 171,716,707
Expenditures by Department
City Attorney $ 1,212,087
City Clerk 862,087
City Council 356,898
City Manager 2,617,253
Community Development 1,946,275
Finance 4,176,442
Human Resources 2,284,816
Information Technology 4,695,904
Library 8,925,860
Parks and Recreation 21,666,729
Police 57,981,162
Public Works 12,159,747
Non-Departmental 4,349,833
Transfers Out 14,201,887
San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs 34,279,728 Total Expenditures $ 171,716,707
Resources Over / (Under) Expenditures $ -
42 479 of 763
General Fund Summary
Department totals shown in millions.
*Citywide Administration includes these departments: City Attorney, City Clerk, City Council, City Manager, Finance, Human Resources, and Information Technology.

City Administration
$16.2 Community
Development
$1.9
Library
$8.9
Parks and
Recreation
$21.7
Police
$58.0
Public Works
$12.2
Non-Departmental
$4.3
Transfers Out
$14.2
San Mateo
Consolidated Fire
Department
Contribution and Fire
Legacy Costs
$34.3

GENERAL FUND OPERATIONS BY DEPARTMENT
2023‐24 ($171.7 MILLION)
43 480 of 763
General Fund Long-Term Financial Plan
10-YEAR FORECAST 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
Beginning Fund Balance 91,958,255 $ 111,452,010 $ 111,946,448 $ 99,355,165 $ 91,891,080 $ Current Resources
Property Tax 72,348,403 $ 80,114,046 $ 78,022,243 $ 80,105,672 $ 85,428,032 $ Sales Tax - Local 1% 22,157,057 23,482,300 23,902,400 24,765,000 25,700,100 Sales Tax - 1/4% Measure S 6,965,952 7,179,000 7,314,000 7,576,000 8,153,000 Property Transfer Tax 14,344,715 6,300,000 8,000,000 8,000,000 8,000,000 Transient Occupancy Tax 3,901,992 5,000,000 6,000,000 7,000,000 8,000,000 Business License Tax 6,686,853 6,179,303 6,302,889 6,428,947 6,557,526 Franchises 3,117,140 3,156,064 3,193,385 3,257,253 3,322,398 Golf Fees 3,465,658 3,174,250 3,174,250 3,237,735 3,302,490 Recreation Service Charges 2,916,078 3,567,724 3,567,724 3,639,078 3,711,860 Permits, Fees, and Fines 5,723,723 4,632,500 4,632,500 4,725,150 4,819,653 Intergovernmental 12,233,722 2,717,958 2,806,774 2,862,910 2,920,168 Interest and Miscellaneous (823,409) 3,473,063 3,406,284 3,542,525 3,613,375 Transfers In - In Lieu Charges 4,361,791 4,552,203 4,688,762 4,782,537 4,878,188 Transfers In - Rent from Sewer Fund 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 Transfers In - Construction Services 471,235 485,372 499,933 514,931 530,379 Transfers In - Gas Tax 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 Transfers In from Downtown Parking Fund 2,363,915 - - - - Current Resources $ 163,782,327 $ 157,494,504 $ 159,125,424 $ 163,985,238 $ 172,484,669 Use of Unassigned Fund Balance $ - $ 12,591,283 - $ $ - $ - Total Current Resources $ 163,782,327 $ 157,494,504 $ 171,716,707 $ 163,985,238 $ 172,484,669 Current Requirements
Salaries and Wages $ 47,083,339 $ 49,679,751 $ 52,948,610 $ 53,915,964 $ 54,902,666 Benefits 18,957,281 19,510,283 22,342,975 23,236,694 24,166,162 Pension Unfunded Liability 10,208,568 11,697,337 11,440,980 12,861,637 13,126,864 Operating 29,938,031 28,601,621 36,502,527 37,232,577 37,977,229 Transfers Out 6,794,781 14,665,515 14,201,887 10,210,000 10,710,000 31,306,571 32,845,559 34,279,728 35,423,968 36,537,138
Net Reductions - - - (1,431,518) (1,460,148)
Total Current Requirements $ 144,288,572 $ 157,000,066 $ 171,716,707 $ 171,449,323 $ 175,959,912 Resources Over / (Under) Requirements 19,493,754 $ $ 494,438 $ - $ (7,464,085) $ (3,475,243) Total Reserves / Fund Balance $ 111,452,010 $ 111,946,448 $ 99,355,165 $ 91,891,080 $ 88,415,837 25% Operating Reserve $ 34,373,448 $ 35,583,638 $ 39,378,705 $ 40,667,710 $ 41,677,515 Housing Reserve $ 4,827,120 $ 4,827,120 $ 5,870,583 $ 6,955,784 $ 8,084,393 Commitments $ 10,000,000 $ 2,750,000 $ - $ - $ -
Remaining Fund Balance $ 62,251,443 $ 68,785,691 $ 54,105,878 $ 44,267,586 $ 38,653,929 San Mateo Consolidated Fire Department
Contribution and Fire Legacy Costs
44 481 of 763
General Fund Long-Term Financial Plan
2026-27

FORECAST
2027-28

FORECAST
2028-29

FORECAST
2029-30

FORECAST
2030-31

FORECAST
2031-32

FORECAST
2032-33

FORECAST
$ 88,415,837 $ 87,403,840 $ 86,908,368 $ 84,456,376 $ 83,171,216 $ 83,153,340 $ 87,843,180 $ 88,589,822 $ 91,872,840 $ 95,281,725 $ 98,821,295 $ 102,496,548 $ 108,426,736 $ 114,672,315 26,588,400 27,430,100 28,226,900 29,073,707 29,945,918 30,844,296 31,769,625 8,433,000 8,708,000 8,969,240 9,238,317 9,515,467 9,800,931 10,094,959 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 8,160,000 8,323,200 8,489,664 8,659,457 8,832,646 9,009,299 9,189,485 6,688,676 6,822,450 6,958,899 7,098,077 7,240,038 7,384,839 7,532,536 3,388,846 3,456,623 3,525,755 3,596,270 3,668,196 3,741,559 3,816,391 3,368,539 3,435,910 3,504,628 3,574,721 3,646,215 3,719,140 3,793,523 3,786,097 3,861,819 3,939,056 4,017,837 4,098,193 4,180,157 4,263,760 4,916,046 5,014,367 5,114,654 5,216,947 5,321,286 5,427,712 5,536,266 2,978,571 3,038,143 3,098,906 3,160,884 3,224,102 3,288,584 3,354,355 3,685,643 3,759,355 3,834,543 3,911,233 3,989,458 4,069,247 4,150,632 4,975,752 5,075,267 5,176,772 5,280,308 5,385,914 5,493,632 5,603,505 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 546,290 562,679 579,559 596,946 614,855 633,300 652,299 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 1,747,500 - - - - - - -
$ 177,653,183 $ 182,908,253 $ 188,247,802 $ 193,793,499 $ 199,526,336 $ 207,566,933 $ 215,977,151 $ - $ - $ - $ - $ - $ - $ -
$ 177,653,183 $ 182,908,253 $ 188,247,802 $ 193,793,499 $ 199,526,336 $ 207,566,933 $ 215,977,151 $ 55,909,102 $ 57,027,284 $ 58,074,380 $ 59,142,418 $ 60,231,816 $ 61,343,003 $ 62,476,413 25,132,809 26,138,121 27,183,646 28,270,992 29,401,831 30,577,905 31,801,021 13,980,111 14,663,018 16,096,964 16,470,720 16,822,309 16,316,946 16,206,851 38,736,773 39,511,509 40,301,739 41,107,774 41,929,929 42,768,528 43,623,898 8,710,000 8,710,000 10,210,000 10,210,000 10,210,000 10,210,000 10,210,000 37,685,736 38,872,931 40,382,586 41,457,267 42,560,448 43,305,076 44,237,846 (1,489,351) (1,519,138) (1,549,521) (1,580,511) (1,612,121) (1,644,364) (1,677,251) $ 178,665,180 $ 183,403,725 $ 190,699,794 $ 195,078,659 $ 199,544,212 $ 202,877,093 $ 206,878,778 $ (1,011,997) $ (495,472) $ (2,451,992) $ (1,285,160) $ (17,876) $ 4,689,840 $ 9,098,373 $ 87,403,840 $ 86,908,368 $ 84,456,376 $ 83,171,216 $ 83,153,340 $ 87,843,180 $ 96,941,552 $ 42,861,133 $ 44,053,216 $ 45,509,829 $ 46,612,293 $ 47,736,583 $ 48,577,864 $ 49,586,507 $ 9,258,146 $ 10,478,850 $ 11,748,382 $ 13,068,695 $ 14,441,821 $ 15,869,871 $ 17,355,044 $ - $ - $ - $ - $ - $ - $ -
$ 35,284,561 $ 32,376,303 $ 27,198,166 $ 23,490,228 $ 20,974,936 $ 23,395,444 $ 30,000,000 45 482 of 763
Revenue and Expenditure Assumptions
Revenues and expenditures in the fiscal year 2023-24
budget and corresponding long-term financial plan are
based on assumptions about the factors impacting each
major revenue and expenditure category. For revenues,
assumptions are largely based on economic or other
conditions outside the City’s control. Assumptions for
expenditures differ, however, in that in many cases, the assumptions are predominantly under the City’s control.

A detailed discussion of the projection methodologies
and major assumptions made for the fiscal year 2023-24
budget and corresponding long-term financial plan are
discussed in detail below.

General Fund Revenues
Revenue Estimation Methodology
All revenue assumptions and projections are reviewed and revised each fiscal year. Key elements that have an impact on major revenue sources are identified and analyzed to ensure that the projection methodology is as reliable as possible over the long term. Historical data trends indicate that significant swings in major revenues can occur due to economic cycles. Projecting revenues based on the
high point of the economic cycle overstates the City’s
financial position and could result in spending patterns that cannot be sustained. Conversely, projecting revenues from the lowest point of the economic cycle understates the long-term financial position of the City and can cause unnecessary service reductions.

Property Taxes
Property Tax is the largest source of General Fund revenue, comprising approximately 50% of the General Fund total
revenues. The 2023-24 property tax revenue is projected to be $78.0 million, a decrease of $2.0 million compared to the FY 2022-23 year-end estimate, as the latter includes funds from the State of California for the City’s share of the property tax in-lieu of vehicle license fees (VLF) shortfall from fiscal year 2020-21 of $5.7 million. During the budget review in April 2023, the preliminary projection of 2023-24 property tax revenue included $1.9 million of VLF shortfall from fiscal year 2021-22, assuming the State of California will backfill the funding. However, due to the State budget deficit, staff has amended the assumption to exclude the $1.9 million as the State of California may not amend its 2023-24 budget to appropriate funds for the 2021-22 VLF shortfall.

Secured property taxes, which constitute over 60% of total property tax revenues, are assumed to increase 54.65%
in 2023-24. The increase reflects the change in assessed value (AV) based on the County Assessor’s Office estimated property tax roll. The property tax base in San Mateo has been very stable. The average annual growth in AV over
the past 10 years has been 7.4%. In the long-term plan, a more conservative growth estimate of 4% is utilized for the ten-year forecast. This assumption factors in historic growth rates and the current economic environment.

The City’s property tax revenue includes several main
categories:
• Secured Property Tax is the tax on real property and
the structures on that real property.
• AB 26 Redevelopment Residual Revenues represent
the City’s designated share of tax increment from
the former redevelopment project areas that are in
excess of the Successor Agency’s required obligated
payments. These revenues are primarily from the
secured tax base in the former redevelopment project
areas.
• AB 1290 Redevelopment Pass-through funds
represent the City of San Mateo’s General Fund share
of the AB 1290 pass-through payments made to taxing
entities based on the tax increment funds used by
Successor Agency to pay remaining debt obligations.

Similar to the AB 26 funds, these revenues are
primarily from the secured tax base in the former
redevelopment project areas.
• Educational Revenue Augmentation Fund (ERAF) is
a mechanism used by the State to shift funding from
local property tax dollars to public schools. When local property tax dollars shifted into ERAF exceed what is
necessary to fund the schools, those excess funds are
returned to the local taxing entities via Excess ERAF
revenue. San Mateo is one of the five counties in the
State where Excess ERAF is generated.
• Property Tax in Lieu of VLF represents the swap of
vehicle license fees (VLF) for property tax as part of a state-local budget agreement in 2004. The agreement
permanently reduced the VLF tax rate from 2% to

0.65%, and the revenue loss was replaced with a like
amount from property tax. After the fiscal year 2004-
05 base year, property tax in lieu of VLF increases
annually in proportion to the growth in assessed
valuation. Property tax in lieu of VLF has two funding
sources: property taxes from non-basic aid school
districts, and ERAF that would otherwise go to nonbasic aid school districts. • Unsecured Property Tax represents the tax on
appurtenances such as furniture, machinery, and
equipment.
• Supplemental Property Tax is the result of reassessing the value of real property when there is a change of
ownership or new construction is completed after the
official lien date.
46 483 of 763
Revenue and Expenditure Assumptions
• Unitary Property Tax is assessed on property owned
by utilities, such as power lines, cable, etc.
• Homeowners’ Property Tax Relief revenues are
reimbursements from the State for revenues lost due
to the homeowners’ property tax exemption on the
first $7,000 of assessed value of their principal place of residence.

After several years of fluctuating AB 26 redevelopment
residual revenues due to the wind down of the former
Redevelopment Agency, this revenue source is expected
to stabilize and provide a significant supplement to the City’s existing tax base going forward. The baseline
revenue amount is projected to be $5.3 million in 2023- 24 and grow at the same rate annually as the secured
tax projection. Per Council direction, 20% of this residual revenue should be reserved annually in a housing set-aside in the General Fund. The City suspended this practice due to the immediate and severe financial impact of COVID-19 in 2020. As of 2022-23, the General Fund housing setaside reserve has amounted to $4.8 million. Policy H1.2 of the City’s Housing Element calls for the City to resume contributing 20% of the AB26 redevelopment residual
revenue to the housing set-aside, which the City can use for affordable housing developments. In the 2023-24
budget, this results in $1.0 million shifting from the Rainy Day Reserves to the housing set aside.

AB 1290 redevelopment pass-through funds are expected
to remain constant since the portion of the tax increment that is collected by the Successor Agency to pay continuing obligations has stabilized. Revenues are projected to be approximately $1.4 million annually over the next 10 years.

The Successor Agency to the Redevelopment Agency
of the City of San Mateo is responsible for payment of
the remaining recognized obligations, which include tax allocation refunding bonds (TAB). The last debt service payment for the Series 2015A TAB will occur in fiscal year 2032-33, which is the trigger event for the dissolution of the former Redevelopment Agency of the City of San
Mateo. Beginning in fiscal year 2033-34, rather than
receive AB 26 and AB 1290 property tax revenues, the
taxing entities, which includes the City, will receive the full property tax increment, as all of the recognized obligations will be satisfied. As such, the City will need to address this change in advance to determine if it wants to continue
contributing to the housing set-aside, as the AB 26 property tax revenue source will no longer exist beginning in fiscal year 2033-34.

Excess ERAF Funds continue to be a steady, yet somewhat uncertain, revenue source for the General Fund. The longterm plan anticipates the continued receipt of Excess ERAF revenues annually. Excess ERAF is projected to be $8.2
million in 2023-24. There have been legislative efforts to increase the Local Control Funding Formula (LCFF),which would ultimately increase funding for public school districts and decrease the amount of Excess ERAF that is available.

Conversely, these efforts to increase the LCFF would
likely shift more school districts into non-basic aid status and somewhat address the VLF shortfall issue, but it is difficult to quantify the impact until impartial analysis has been completed by the Legislative Analyst’s Office (LAO).

The latest effort, AB 938 would increase the base level of funding for LCFF by 50% by 2030-31. Staff will continue to monitor this legislative effort and modify the General Fund Long-Term Financial Plan if it is approved by the state legislature and signed into law.

Similar to excess ERAF, the property tax in lieu of VLF revenue grows steadily over the years but continues to
face challenges due to VLF shortfall. As more and more
school districts shift to basic-aid status, the county-wide VLF shortfall increases. Currently, the only way to backfill the VLF shortfall is for the County of San Mateo, on behalf of itself and all the municipalities within the county, to file a claim with the State of California in August each year to backfill the previous fiscal year’s VLF shortfall, which the State will consider the request as a part of its new fiscal year budget. For the long-term plan, the VLF revenue
was projected based on the assumption that the State of California will continue to honor the escalating VLF shortfall claims. As the number of non-basic aid school districts continues to reduce, it is anticipated the VLF shortfall will continue to grow. If every school district reaches basic aid status in 10 years, the county-wide VLF shortfall could reach upwards of $370 million by 2032-33, of which the City’s share would be over $20 million.

Other property tax components, including unsecured,
supplemental secured, and unitary property tax revenues, as well as Homeowners’ Property Tax Relief revenues, are expected to remain flat due to the nature of the revenue source.

Sales Tax
Sales tax revenue is currently the second largest single revenue source of the General Fund and one of the most
volatile. The City’s sales tax revenue was stable during the recovery from the Great Recession. The COVID-19
pandemic caused an immediate and negative impact
on sales tax. The City experienced significant sales tax revenue loss during fiscal years 2019-20 and 2020-21.

As vaccines rolled out and restrictions eased, sales tax 47 484 of 763
Revenue and Expenditure Assumptions
Transient Occupancy Tax
Transient Occupancy Tax (TOT) is dependent on both the
occupancy levels and room rates of the City’s hotel stock.

TOT revenue is very sensitive to broader economic trends.

In good economic times, both occupancy rates and room
rates increase, but during recessionary periods, both go down, which can result in a significant reduction in TOT revenue. In the City of San Mateo, the existing hotel stock primarily serves business travelers flying into and out of the San Francisco International Airport.

TOT revenues are the only tax revenue that has not
recovered from the COVID-19 pandemic. Compared to the
2018-19 baseline of $7.0 million, the 2023-24 General Fund TOT is projected to be $6.0 million. However, based on
the latest industrial forecast, business travel is projected to return to the pre-pandemic levels by 2025-26, which is reflected in the long-term financial plan.

Business License Tax
The City of San Mateo Municipal Code requires all persons or businesses doing business in the City of San Mateo to pay an annual business tax, which is also referred to as a business license. The payment of this tax is required prior to the commencement of business in San Mateo.

Depending on the type of business, the business license tax is either a flat fee or is based on gross receipts.

Business license tax revenues have seen steady growth
over the past decade. This revenue resource is projected to be $6.3 million, then grow at a modest 2% annually in the long-term financial plan.

Franchise Fees
The City receives franchise payments from companies
providing garbage, electricity, gas, and cable television services. Modest growth is expected from this revenue
source, 2% annually in the forecast. This revenue source will continue to be carefully monitored, with future growth projections adjusted accordingly. Overall, franchise fee revenues are projected to be just under $3.2 million in 2023-24.

Golf Fees
Golf fee revenues primarily come from rounds of golf
played, but other sources include driving range revenue and merchandise sales. During late summer of 2020,
before COVID vaccines were rolled out and people were
seeking safe, social activities they could pursue, golf saw record-high rounds played and increases in revenues. Golf fee revenues increased from pre-COVID levels (just above $2 million) to $3 million and $3.5 million, respectively, for fiscal years 2020-21 and 2021-22. The budget projection is set at $3.2 million for both 2022-23 and 2023-24, with a moderate 2% annual growth in the long-term financial plan. has experienced a quicker-than-expected rebound. As of
2022-23, sales tax revenue has recovered to pre-pandemic levels. Consumer behavior change has limited the growth of the revenue.

It is also worthwhile to note that the City’s share of the local 1% sales tax from internet sales is allocated through the County pool based on the City’s proportionate share of locally-generated sales tax. There have been several legislative efforts to allocate sales tax based on point of delivery, but the political will has not yet come to fruition to address this issue. Over the last two years, sales tax from the County pool has increased due to a combination of the new taxes from the full implementation of AB147 (Wayfair) and surges in online spending tied to the pandemic.

The 2023-24 budget assumes Local 1% sales tax revenues
(Bradley Burns) of $23.9 million and local 1/4% sales tax revenues (Measure S) of $7.3 million. Slow and steady
growth is anticipated for sales tax throughout the long-term financial plan.

Property Transfer Tax
The City collects a real property transfer tax (RPTT)
upon the sale or transfer of any property within the City boundaries. As a charter city, San Mateo voters approved a

0.5% real property transfer tax (RPTT) rate. Furthermore, in the November 2022 election, San Mateo voters approved
Measure CC that increased the RPTT rate to 1.5% for
properties sold or transferred with a value of $10 million or more.

This revenue source is extremely volatile, since it is driven by both property values and transaction volume, which
can vary significantly, even during periods of relatively stable economic growth. During the Great Recession,
RPTT dropped 70% from $10 million to $3 million over a
two-year period and took six years to climb back up to the $10-million-dollar level. In 2018-19, RPTT reached a recordhigh $14.0 million, only one year later it dropped nearly 30% to $9 million in 2019-20 due to COVID pandemic. RPTT
rebounded quickly and reached $14.3 million in 2021-22, one year later it dropped again due to the rise of mortgage interest rates which negatively impact the real property sales value and transaction volume. RPTT is anticipated to be $6.3 million at the close of fiscal year 2022-23. These examples showcased how volatile this revenue source can be.

Rather than try to determine the year-over-year trend, the General Fund Long-Term Plan uses an average of $8.0
million, including fiscal year 2023-24. Finance staff will continue to monitor market trends at the local and national level and adjust assumptions accordingly.
48 485 of 763
Revenue and Expenditure Assumptions
This revenue source will continue to be carefully monitored, with future growth projections adjusted accordingly.

Recreation Service Charges
Recreation service charges include the revenue collected from the various recreation programs that are run by the Parks and Recreation Department, including camps, youth and adult programs, picnic and recreation center rentals, and lagoon use fees. Revenue growth in this area over
the past several years is a function of the popularity of recreation programming. This revenue resource dropped
to $1 million in 2020-21 due to COVID-19 pandemic but has gradually recovered as in-person programs return. It is anticipated that the revenues will be $3.6 million for both 2022-23 and 2023-24, with a 2% annual increase for the
remainder of the ten-year long-term forecast.

Permits, Fees, and Fines
The City receives permit, fee, and fine revenues from a number of sources across departments, including parking and traffic-related citations (Police) and encroachment permits (Public Works). In 2021-22, the Downtown Parking Fund was merged into the General Fund. Parking revenues are reported under this revenue category in the General Fund. In total, the permit, fee, and fine revenues are
projected to be $4.6 million for 2023-24 then grow by 2% annually in the long-term plan.

Intergovernmental
Intergovernmental revenues are predominantly grants
or reimbursements from other governmental agencies,
including other cities, the county, the state, and the federal government. Because this revenue category consists
predominantly of grants and reimbursements, many of
which are one-time funds, revenues can fluctuate annually.

The City has an agreement with the San Mateo
Consolidated Fire Department (SMC Fire) to provide Human Resources and Finance services. The amount for 2023-
24 is $ 912,202, which is reflected in the assumptions for the City’s intergovernmental revenues. In addition, based on known grants and reimbursements, total revenues are
projected to be $2.7 million in 2022-23 and $2.8 million in 2023-24, and then grow modestly throughout the
remainder of the forecast.

Interest and Miscellaneous
This revenue category includes interest earnings on the City’s investment portfolio and other smaller revenues
not attached to other categories. The 2021-22 actuals
reflected the accounting adjustment for an unrealized
loss in the City’s investment portfolio. The adjustment is required by the governmental accounting standards, but it creates large variations from year to year in the amount of interest income reported. The budget for interest income assumes no change in the market value of the City’s
portfolio as this measure is difficult to anticipate and does not adequately reflect the City’s true return on investments.

Projections going forward for investment earnings are
based on a 2% yield on investment. Only modest increases in interest income are anticipated in the ten-year forecast.

In total, this category of revenues is expected to generate approximately $3.5 million in 2023-24.

In-Lieu Charges
In-lieu charges are funds transferred into the General
Fund from other funds to cover the cost of City-wide
administration. These costs include covering a portion of expenditures related to the operation of the City Manager’s Office, City Attorney’s Office, City Clerk, Finance, Human Resources, and Information Technology. It also covers costs such as the other funds’ share of general liability expenses.

A total of approximately $4.7 million is projected in 2023-

24. In-lieu charges are set to grow at a rate of 2% annually in the ten-year forecast. In accordance with best practices, the City’s cost allocation study was updated in 2020-21, and it is expected that the study will be maintained and updated on a regular basis to ensure alignment with the cost of providing administrative services throughout the City.

Transfers In – Gas Tax
The Gas Tax Fund is set to transfer $1.7 million annually to the General Fund in the long-term forecast to cover a portion of street maintenance costs within the Public Works Department. This transfer has been set at a flat amount annually, which means over time it will provide less and less funding in terms of real dollars. While the $1.7 million has been increased in 2018-19 from the historical transfer of $1.5 million, the cost of street maintenance along with the revenues from Gas Tax funding will be monitored closely, and future transfers will be adjusted accordingly.

General Fund Expenditures
Expenditure Estimation Methodology
Similar to the revenue assumptions, expenditure
assumptions and projections are reviewed and revised
each fiscal year. Unlike revenues, especially tax revenues, General Fund expenditures are largely under the control of the City. Because of that, assumptions for expenditure growth are generally able to be aligned with revenue
growth where possible. In cases where an expenditure
category is not under control of the City, as is the case for CalPERS pension expenses, the projected increases are
treated as nondiscretionary and take precedence in terms 49 486 of 763
Revenue and Expenditure Assumptions
of the allocation of resources, limiting the City’s flexibility to prioritize where funds are expended. Assumptions for each of the General Fund’s expenditure categories are discussed in detail below.

Personnel Costs
Personnel costs represent over 50% of total General
Fund expenditures, and total $86.7 million for fiscal year 2023-24. To best reflect the personnel costs, the ten-year forecast splits costs into three categories: salaries, benefits, and payment on the unfunded pension liability. This allows assumptions for cost increases in the three categories to move independently from one another. Assumptions for the major categories of personnel expenditures are discussed in the detail below.

Increases for salaries and salary-related costs, such
as overtime, are initially based on existing contractual agreements or assumptions about the outcome of ongoing
and future negotiations. Beyond those contractual
assumptions, salary increases were set in the ten-year
forecast based on projected modest salary increases, 2% annually, throughout the forecast. It is important to note that these are only projections of possible salary increases and do not reflect the actual salary adjustments that will be made in the future. There are several factors that have to be considered related to salary increases in the future, including the City’s economic condition, the amount of
unassigned fund balance in the General Fund, labor
negotiations, and our ability to compete in the market for employees.

As previously discussed, the cost of CalPERS pension
contributions is not something the City has control over the way it does over many other expenditures. As a result, the ten-year forecast contains projected increases in the City’s contribution rates that were developed based on CalPERS actuarial valuation and projection. These contribution rates, which have been adjusted to consider the employees’
share of the City’s contribution rates, factor in assumptions related to turnover of City employees and the fact that new employees will come in under lower pension formulas.

The rates also factor in the most up-to-date information available about the economic and actuarial changes
CalPERS has recently implemented, as well as updated
investment return results. A couple of the significant factors include:

As reported in the mid-year budget update and the
preliminary budget review, the City’s pension contribution will increase significantly starting fiscal year 2024-25 due to the CalPERS investment loss of negative 7.5% in fiscal year 2021-22. Such investment loss will cost the City $177 million in additional pension costs over the 20-year amortization period starting in fiscal year 2024-25, and by fiscal year 2028-29, an additional $10 million per year, which has been included into the General Fund Long-Term Plan.

The table below illustrates the City’s pension cost in the General Fund, which is projected to increase from $22.7 million in 2023-24 to $29.9 million in 2032-33, and the percentage of total operations year-over-year that is
dedicated to pension benefits. Please note that the table and the ten-year forecast do not incorporate the impact of investment returns for fiscal year 2022-23. CalPERS
investment returns as of mid-May 2023 was 5.1%. As the
discount rate, or expected rate of return, is 6.8%, any returns that fall short of this target will create another layer of unfunded pension liability. The General Fund LongTerm Plan assumes that CalPERS will meet its target rate of return (discount rate) for the remainder of the ten-year forecast.

FISCAL YEAR

GENERAL FUND

NORMAL COSTS
(in millions)

GENERAL FUND

PAYMENT ON THE

UNFUNDED LIABILITY
(in millions)

GENERAL FUND
TOTAL
(in millions)

PERCENTAGE

OF TOTAL GENERAL

FUND OPERATING
EXPENDITURES*
2023-24 $ 5.6 $ 17.1 $ 22.7 14%
2024-25 5.5 18.7 24.2 15%
2025-26 5.6 19.3 24.9 15%
2026-27 5.6 20.5 26.1 15%
2027-28 5.6 21.5 27.1 15%
2028-29 5.7 23.5 29.2 16%
2029-30 5.8 24.0 29.8 16%
2030-31 5.9 24.6 30.4 16%
2031-32 6.0 23.9 29.9 15%
2032-33 6.1 23.8 29.9 15%
*Total opearting expenditures exclude transfers out.
50 487 of 763
Revenue and Expenditure Assumptions
Payment on the unfunded pension liability includes the
payment for fire employees that have transferred to SMC Fire, as those costs correspond to the years of service that the fire employees had worked for the City and remain the City’s responsibility even after transfer of operations. In the ten-year financial plan, fire’s portion of the unfunded pension liability is included as part of fire legacy costs.

More detail on this is discussed below in the subsection for San Mateo Consolidated Fire Department Contribution and Fire Legacy Costs.

Overall, the pension cost in the General Fund, including fire’s portion, makes up over 65% of the total cost of
employee fringe benefits. Other major costs in this category include medical, dental, and vision premiums paid by
the City; Medicare and Social Security taxes; workers’
compensation; and deferred compensation. Medical
insurance, which is the second-largest cost in this category, is set in the forecast to increase at 6.5% in 2023-24 and then remain flat at 6% for the duration of the long-term plan. These assumptions are based on historical trends and assumptions used by the consulting actuary in the valuation of the City’s retiree medical plan. For other benefit costs that move with salary increases, such as Medicare and
Social Security taxes, those are set to increase at the same rate as salaries in the ten-year financial plan.

Non-Personnel Costs
The remaining 50% of the General Fund’s expenditures
consist of non-personnel costs. For the ten-year forecast, non-personnel expenditures were broken down into
distinct categories: operating, transfers out, and San Mateo Consolidated Fire Department contribution and fire legacy costs. A brief description of the types of expenditures in each category is provided below.

Operating
Operating expenditures, which total $36.5 million in
fiscal year 2023-24, include spending on a wide variety of expenditure categories related to operations of the
City. Some of the major expenditure categories include
professional and contract services, utilities costs, and capital outlay.

Professional and contract services in this category total $11.0 million in 2023-24 and it covers a wide variety of service areas, such as engineering services, legal services, the annual financial audit, consultants for special studies, animal control, and the maintenance of street and park
trees. Because expenditures in this category are largely within the City’s control, the long-term forecast reflects an annual increase of 2%.

Utilities costs, which total $3.5 million in 2023-24, include gas, electricity, water, and telecommunications costs
required for city operations. Of the total, 54% goes toward gas and electricity, 31% goes toward water, and the
remaining 15% is for telecommunications. For the tenyear forecast, the annual inflationary increase is set at 2%.

These increases consider expected growth in costs, which are largely beyond the City’s control, although increased conservation efforts can help control expenditure growth in this area.

And finally, the capital outlay expenditures consist of the “rental rate” the departments are charged to cover the cost of funding replacement from the Vehicle and Equipment
Replacement Fund. Funds are collected for replacement
while the vehicle/equipment is still in use so that adequate funds are available at the time when replacement is
necessary. The budget for this expenditure category is $1.6 million in 2023-24. Additional details about the Vehicle and Equipment Replacement Fund and its long-term financial
plan can be found in the Fund Information section of this budget document.

Transfers Out
This category of funding includes the transfers the General Fund makes to various funds to fund ongoing and one-time needs. The most significant 2023-24 transfers include onetime transfer of $5 million from General Fund to the Capital Improvement Fund for critical capital needs, including the high voltage streetlight conversion and storm drainage
improvement projects, and ongoing transfers including
$2.25 million transfer to the Capital Improvement Project Fund ($2 million for street rehabilitation and $250,000 for sidewalk repair projects), $2.7 million for debt service, and $410,000 for building component replacement to the
Vehicle and Equipment Replacement Fund. The ongoing
transfers are programed in the long-term forecast.

Beginning in 2021-22 through 2023-24, as part of the
fiscal sustainability plan, and in recognition of the General Fund not charging the full administrative burden to the Construction Services Fund since the Great Recession, a total of $10 million over the three-year period to the Capital Improvement Project Fund will supplant the General Fund transfer to support priority general capital projects.

San Mateo Consolidated Fire Department
Contribution and Fire Legacy Costs
On January 13, 2019, the City’s fire operations were
transferred to the San Mateo Consolidated Fire Department (SMC Fire), a Joint Powers Authority (JPA), for fire, rescue, and emergency services between the cities of Belmont,
Foster City, and San Mateo. Pursuant to the JPA, SMC Fire 51 488 of 763
Revenue and Expenditure
Assumptions
costs are split 20% Belmont, 20% Foster City, and 60%
San Mateo. The City’s share of SMC Fire costs is projected to be $27.5 million for 2023-24. Additionally, there are legacy costs that remain with the City, which are costs that were incurred during the time that the fire employees had worked for the City. These legacy costs include the unfunded pension liability, workers’ compensation liability, and retiree health benefit liability. Factoring in the legacy costs that remain with the City, the total cost to the City’s General Fund for fire service for 2023-24 is $34.3 million.

The long-term forecast presents the City’s contribution to SMC Fire and its fire legacy costs in a separate line to provide greater transparency and better projection of costs.

The legacy costs are based on the consulting actuary’s
projections. The City’s 60% contributions were based on the SMC Fire budget and five-year forecast. Beyond that, a 3% annual growth has been projected.

Net Reduction / Use of Unassigned Fund Balance
The net reduction amount represents the expenditure
reductions and/or revenues exceeding expectations that
are required to maintain both the 25% operating reserve and the current housing reserve level throughout the
long- term financial plan. This includes drawing down the unassigned fund balance over the course of the forecast.

If the projections for General Fund revenues and
expenditures come to fruition, the General Fund would
realize a net loss of $12.6 million for 2023-24. As shown in the General Fund Long-Term Plan, based on revenue and
expenditure assumptions, the City’s Rainy Day Reserves
are projected to reach a low of $21.0 million in 2030-31 and reach the reserve policy goal of $30.0 million by the end of the ten-year forecast.

A more comprehensive discussion of the implications
of this long-term spending plan as it relates to the fund balance in the General Fund is included in “Section 1 – Budget Message.”
Long-Term Financial Forecast
The long-term financial forecast includes all known
and assumed resource demands. This provides a
comprehensive view of the demand for the City’s resources and allows Council to prioritize how those resources should be allocated. The long-term forecast allows the City to foresee structural imbalance, and plan to position itself towards long-term financial sustainability.
52 489 of 763
DEPARTMENTS 65
Departments
53 490 of 763
City Attorney
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 1,099,222 $ 1,284,566 $ 1,371,191 $ 1,355,382 Operating 3,042,169 3,068,217 3,137,372 3,607,405
Capital Outlay 1,676 1,424 1,450 1,590
Total Expenditures $ 4,143,067 $ 4,354,207 $ 4,510,013 $ 4,964,377 Funding Sources
General Fund $ 1,278,451 $ 1,106,198 $ 1,407,118 $ 1,212,087 Special Revenue Fund 174,695 185,434 218,361 193,156
Enterprise Fund 25,938 83,603 95,276 98,335
Internal Service Fund 2,663,982 2,978,971 2,789,258 3,460,799 Total Funding Sources $ 4,143,067 $ 4,354,207 $ 4,510,013 $ 4,964,377

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
City Attorney 1.00 1.00
Assistant City Attorney 3.00 3.00
Executive Secretary to City Attorney 1.00 1.00
Total Merit 5.00 5.00
Total Per Diem - -
Total Positions 5.00 5.00
54 491 of 763
City Clerk
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 699,987 $ 725,885 $ 782,283 $ 809,241
Operating 216,596 160,106 280,432 42,223
Capital Outlay 3,562 10,195 10,963 10,623
Total Expenditures $ 920,145 $ 896,187 $ 1,073,678 $ 862,087 Funding Sources
General Fund $ 920,145 $ 896,187 $ 1,073,678 $ 862,087
Total Funding Sources $ 920,145 $ 896,187 $ 1,073,678 $ 862,087

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
City Clerk 1.00 1.00
Assistant to the City Clerk 1.00 1.00
Deputy City Clerk 1.00 1.00
Management Analyst I/II 1.00 1.00
Total Merit 4.00 4.00
Total Per Diem 0.23 0.23
Total Positions 4.23 4.23
55 492 of 763
City Clerk

METRICS
Public Transparency and Compliance
We provide public access to legislative decision-making and government records.

Number of Public Records Act (PRA) requests received
Percent of PRA responses responded to within prescribed timelines Percent of Fair Political Practices Commission (FPPC) compliances documents filed on time Percent of minutes completed and published on next regular meeting agenda Legislative Process
We ensure that the City’s legislative decisions are smoothly and timely completed.

Number of contracts processed annually
Number of agendas developed for public meetings
Records Management
We are committed to protecting the City’s official public records.

Number of official records added to City’s electronic document management system.

Informational Metrics
Number of Statement of Economic Interest Forms filed
56 493 of 763
City Clerk
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Workload 1,695 1,500 1,600 1,600
Performance 86% 95% 95% 98%
Performance 96% 98% 98% 99%
Performance 95% 95% 96% 97%
Workload 136 140 140 145
Workload 47 50 50 50
Workload 319 500 500 500
Workload 192 192 160 160
57 494 of 763
City Council
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 117,398 $ 137,278 $ 119,731 $ 89,018
Operating 134,673 146,779 268,442 254,430
Capital Outlay 24,994 20,936 22,340 13,450
Total Expenditures $ 277,065 $ 304,992 $ 410,513 $ 356,898 Funding Sources
General Fund $ 277,065 $ 304,992 $ 410,513 $ 356,898
Total Funding Sources $ 277,065 $ 304,992 $ 410,513 $ 356,898

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
City Council Member 5.00 5.00
Total Merit 5.00 5.00
Total Per Diem - -
Total Positions 5.00 5.00
58 495 of 763
City Manager's Office
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 1,644,905 $ 1,751,078 $ 1,808,711 $ 1,890,215 Operating 1,104,378 547,958 1,148,858 835,511
Capital Outlay 4,625 3,760 3,985 4,225
Total Expenditures $ 2,753,909 $ 2,302,795 $ 2,961,554 $ 2,729,951 Funding Sources
General Fund $ 2,673,295 $ 2,203,059 $ 2,844,535 $ 2,617,253 Special Revenue Funds 80,614 99,737 117,019 112,698
Total Funding Sources $ 2,753,909 $ 2,302,795 $ 2,961,554 $ 2,729,951

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
City Manager 1.00 1.00
Assistant City Manager 1.00 1.00
Communications Manager 1.00 1.00
Economic Development Manager 1.00 1.00
Executive Secretary to City Manager 1.00 1.00
Management Analyst I/II 1.00 1.00
Sustainability Analyst 1.00 1.00
Total Merit 7.00 7.00
Total Per Diem - 0.48
Total Positions 7.00 7.48
59 496 of 763
City Manager's Office

METRICS
Economic Development
Business assistance provided
Communications
Number of citywide eNewsletter subscribers
Volunteer Engagement
Number of volunteers and volunteer hours
60 497 of 763
City Manager's Office
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Workload N/A 100 150 150
Performance 9,955 10,000 11,000 12,000
2,701 vols 1,718 vols 3,500 vols 3,500 vols
33,445 hrs 42,534 hrs 75,000 hrs 75,000 hrs
Workload
61 498 of 763
Community Development
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 7,141,426 $ 8,172,076 $ 9,849,799 $ 10,243,857 Operating 3,206,205 12,219,034 5,876,505 5,138,381
Capital Outlay 102,564 64,141 68,336 68,056
Total Expenditures $ 10,450,195 $ 20,455,251 $ 15,794,640 $ 15,450,294 Expenditures by Cost Center
Advance Planning $ 939,440 $ 1,514,332 $ 1,904,075 $ 1,422,665 Current Planning 1,880,366 3,014,611 3,955,592 3,857,770 Permit Center 4,562,402 5,531,408 6,356,198 6,835,803
Code Enforcement 1,088,954 936,876 1,121,879 1,136,151
Housing 1,663,933 9,307,172 2,206,411 1,942,843
Program Support 315,100 150,852 250,485 255,063
Total Expenditures $ 10,450,195 $ 20,455,251 $ 15,794,640 $ 15,450,294 Funding Sources
General Fund $ 1,876,042 $ 1,679,751 $ 2,008,992 $ 1,946,275 Special Revenue Funds 8,574,153 18,837,199 13,785,648 13,504,019 Total Funding Sources $ 10,450,195 $ 20,516,951 $ 15,794,640 $ 15,450,294 62 499 of 763
Community Development

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Community Development Director 1.00 1.00
Administrative Assistant 4.00 4.00
Administrative Technician 2.00 2.00
Associate Planner 6.00 6.00
Building Inspector I/II 7.00 7.00
Building Official 1.00 1.00
Business Manager 1.00 1.00
Code Enforcement Manager 1.00 1.00
Code Enforcement Officer I/II 4.00 3.00
Deputy Building Official - 1.00
Deputy Community Development Director 1.00 1.00
Development Review Technician 5.00 6.00
Housing and Neighborhood Services Manager 1.00 1.00
Housing Specialist I/II 1.00 1.00
Inspection Supervisor 1.00 1.00
Managing Arborist 1.00 1.00
Office Assistant I/II 2.00 2.00
Permit Center Supervisor 1.00 1.00
Plan Check Supervisor 1.00 1.00
Plan Checker Engineer 5.00 5.00
Planning Manager 1.00 1.00
Principal Planner 1.00 2.00
Senior Business Systems Analyst 1.00 1.00
Senior Code Enforcement Officer - 1.00
Senior Development Review Technician 1.00 1.00
Senior Management Analyst 1.00 1.00
Senior Planner 1.00 1.00
Total Merit 52.00 55.00
Total Per Diem 1.18 1.18
Total Positions 53.18 56.18
63 500 of 763
Community Development

METRICS
CDD Administration
Number of staff vacancies within the year
Number of vacancies filled within the year
Building
Number of planning applications for review
Percent of planning application reviews completed within 10 business days Number of residential permits issued that required more than 3 plan checks before approval Number of full review issued residential permits
Number of permit applications received online
Number of special and emergency event responses assisting SMCFD and SMPD Number of responses that were out of regular business hours Number of permits issued - Commercial
Number of permits issued - Residential
Number of permits issued - ADU and JADU (Accessory Dwelling Unit / Junior Accessory Dwelling Unit) Number of Residential VOTC (virtual over the counter) online submittal applications Code Enforcement
Number of complaints received
Percent of new cases investigated/opened
Percent of new cases closed: cases that were opened and closed within reporting quarter Number of all active cases: including cases from previous reporting quarters Percent of existing cases closed
Percent of cases forwarded to the City Attorney’s Office Number of unpermitted construction cases opened
Number of ADU’s receiving 5-year delay of enforcement
Percent of Substandard Housing Condition complaints received - Tenant relocation required Percent of Substandard Housing Condition complaints received - Repeat violator/violations Percent of Substandard Housing Condition complaints received - Pest/rodent infestation - More than 4 units (multifamily) Percent of Substandard Housing Condition complaints received - Pest/rodent infestation - Less than 4 units Percent of Substandard Housing Condition complaints investigated within 48 business hours Housing
Number of housing units repaired/improved through minor home repair, accessibility modifications, and Rebuilding Together grants Percent of time sellers of First Time Buyer and Below Market Rate units offer letters within time described in loan documents Planning
Number of Planning Application submittals
Percent of planning applications that required more than 3 resubmittals before a completeness determination Percent of Planning Application incomplete letters processed within the statutory 30-calendar day turn-around time from the date of submittal Number of Building Application plan check reviews
Percent of Building Application plan check reviews processed within 20 business days after assignment to planner Number of formal neighborhood and outreach meetings held Percent of time Planning Commission Study Sessions are conducted for 100% of Pre-Applications within 120 days from the date of submittal Percent of Zoning Administrator Level Planning Application Decision Letters processed within 20 days 64 501 of 763
Community Development
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Workload New New 9 5
Workload New New 11 9
Workload New New 162 170
Performance New New 90% 90%
Workload New New 90 75
Workload New New 500 525
Workload New New New 4,500
Workload New New 30 30
Workload New New 10 10
Workload New New 220 250
Workload New New 3,600 3,800
Workload New New 90 115
Workload New New 350 325
Workload New New 100 100
Workload New New 40% 40%
Performance New New 30% 30%
Workload New New 200 200
Performance New New 30% 25%
Workload New New 5% 5%
Workload New New 5 5
Workload New New 0 0
Workload New New 1% 1%
Workload New New 0% 0%
Workload New New 1% 1%
Workload New New 1% 1%
Performance New New 100% 80%
Performance 25 33 18 20
Performance 100% 100% 100% 100%
Workload New New 100 80
Performance New New 25% 20%
Performance New New 100% 100%
Workload New New 1,200 1,000
Performance Modified Modified 80% 80%
Workload Modified Modified N/A 8
Performance Modified Modified 100% 100%
Performance Modified Modified 90% 100%
65 502 of 763
Finance
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 2,846,078 $ 2,657,587 $ 3,074,170 $ 3,190,934 Operating 801,176 1,203,260 1,151,895 911,947
Capital Outlay 84,608 75,950 78,440 76,815
Total Expenditures $ 3,731,863 $ 3,936,796 $ 4,304,505 $ 4,179,696 Funding Sources
General Fund $ 3,573,766 $ 3,904,495 $ 4,301,346 $ 4,176,442 Enterprise Fund 158,097 32,302 3,159 3,254
Total Funding Sources $ 3,731,863 $ 3,936,796 $ 4,304,505 $ 4,179,696

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Finance Director 1.00 1.00
Accountant I/II 2.00 2.00
Accounting Assistant I/II 6.00 4.00
Accounting Manager 1.00 1.00
Budget Analyst 1.00 -
Budget Manager - 1.00
Deputy Finance Director 1.00 1.00
Payroll Supervisor 1.00 1.00
Payroll Technician I/II 1.00 1.00
Senior Accountant 2.00 2.00
Senior Accounting Assistant - 2.00
Senior Management Analyst 1.00 1.00
Total Merit 17.00 17.00
Total Per Diem - -
Total Positions 17.00 17.00
66 503 of 763
Finance

METRICS
The City's annual financial statements receive an unmodified opinion from the external auditors The City's Annual Comprehensive Finance Report receives the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting
The City's Annual Comprehensive Finance Report is approved by Council by December 31st Number of business license renewals processed
Number of new business licenses issued
Number of employee paychecks issued
Percent of paychecks issued with no customer-facing errors Number of invoices received
Percent of vendor payments made with no errors
Percent of months City's investment portfolio complies with investment policy Average duration of City's investment portfolio
Percent of months yield on the City's investment portfolio meets benchmark performance targets Percent variance between final estimated revenues and actual revenues for major General Fund taxes Percent of purchase orders processed within 1 business day Number of change orders processed in Purchasing
Number of new credit cards issued
Percent variance between budget and actual General Fund expenditures 67 504 of 763
Finance
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Performance Yes Yes Yes Yes
Performance Yes TBA Yes Yes
Performance Yes Yes Yes Yes
Workload 6,100 6,100 6,100 6,100
Workload 1,200 1,200 1,300 1,300
Workload 22,000 20,000 20,000 20,000
Performance 100% 100% 100% >99%
Workload 19,190 14,000 14,000 14,000
Performance 99% 99% 99% >99%
Performance 100% 100% 100% 100%
Other 600 days 730 days 600 days 600 days
Performance 100% 100% 100% 100%
Performance 4% 4% 4% 4%
Performance 98% 98% 98% 98%
Workload 195 200 175 175
Workload 40 20 20 20
Performance 5% 5% 5% 5%
68 505 of 763
Human Resources
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 2,121,126 $ 2,214,211 $ 2,171,952 $ 2,152,715 Operating 4,229,207 (1,600,905) 4,098,029 3,981,001
Capital Outlay 19,090 29,061 16,714 17,274
Total Expenditures $ 6,369,423 $ 642,368 $ 6,286,695 $ 6,150,990 Funding Sources
General Fund $ 2,106,383 $ 2,104,301 $ 2,340,102 $ 2,284,816 Internal Service Fund 4,263,040 (1,461,933) 3,946,593 3,866,174 Total Funding Sources $ 6,369,423 $ 642,368 $ 6,286,695 $ 6,150,990

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Human Resources Director 1.00 1.00
Human Resources Technician 4.00 4.00
Senior Human Resources Analyst 5.00 5.00
Senior Human Resources Analyst Risk Manager 1.00 1.00
Total Merit 11.00 11.00
Total Per Diem 0.20 0.20
Total Positions 11.20 11.20
69 506 of 763
Human Resources

METRICS
Recruitment, Selection, and Classification
Number of recruitments conducted
Length of time from signed Recruitment Plan to Eligibility List Percent of hiring departments rating recruitment as good or better Annual employee turnover rate
Number of classification reviews and job spec updates
Employee and Labor Relations
Percent of employee performance evaluations completed on time Percent of departing merit employees who have an exit interview Percent of disciplinary actions determined within 60 days from completion of investigation Percent of grievances and disciplinary actions resolved within the agency Number of labor contracts negotiated
Number of employees trained on Employee & Labor Relations Employee Services/Benefits
Number of employees attending benefits seminars (EAP, deferred comp, CalPERS) Percent of employees voluntarily participating in a deferred compensation plan Number of benefits orientations conducted
Number of benefits orientations conducted during NHO
Number of leave requests processed
Number of Wellness Program events per year
Employee Services/Employee Development and Workforce Planning Attendance at training courses
Percent of training participants who were satisfied with the course taken Number of employees participating in the Citywide Talent Exchange Number of employees in Lead Worker, Supervisor, & Leadership Academies Number of employees utlizing professional leadership coaching Workers’ Compensation and Safety
Number of claims opened during the fiscal year
Cost of incurred claims
Percent of new hires receiving IIPP training
Support to SMC Fire
Number of recruitments conducted
Percent of disciplinary actions determined within 60 days from completion of investigation Number of workers' compensation indemnity claims opened in the fiscal year 70 507 of 763
Human Resources
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Workload 50 64 40 40
Performance 8 weeks 7.0 weeks <10 weeks <10 Weeks
Performance 99.0% 99.7% 90.0% 90.0%
Performance 11.0% 13.4% <15% <15%
Workload 25 42 25 25
Performance 82% 93% 80% 80%
Workload 75% 88% 80% 80%
Performance 49% 100% 90% 90%
Performance 88% 94% 90% 90%
Workload 4555
Workload 91 94 40 40
Performance 160 78 115 115
Performance 76% 80% 80% 80%
Workload 0 N/A N/A N/A
Workload N/A 1 3 3
Workload 209 269 60 60
Workload 2333
Workload 966 1,255 450 450
Performance 90% 90% 90% 90%
Performance 1633
Workload 8 21 24 24
Performance 15 18 12 12
Workload 44 46 <70 <70
Performance $3.6M $3.6M <$3.5M <$3.6M
Performance 100% 98% 100% 100%
Workload 4 11 5 5
Performance 90% 100% 90% 90%
Performance / Workload 25 31 <25 <25
71 508 of 763
Information Technology
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 2,599,870 $ 2,699,132 $ 2,892,638 $ 2,900,571 Operating 947,199 990,042 1,532,875 1,582,508
Capital Outlay 55,959 230,648 441,467 4,141,585
Total Expenditures $ 3,603,028 $ 3,919,823 $ 4,866,980 $ 8,624,664 Funding Sources
General Fund $ 3,591,644 $ 3,902,045 $ 4,639,251 $ 4,695,904 Internal Service Fund 11,384 17,778 227,729 3,928,760
Total Funding Sources $ 3,603,028 $ 3,919,823 $ 4,866,980 $ 8,624,664

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Information Technology Director 1.00 1.00
Consulting and Applications Manager 1.00 1.00
Customer Service Manager 1.00 1.00
GIS Coordinator 1.00 1.00
GIS Technician I/II 1.00 1.00
IS Support Technician I/II 2.00 2.00
Network Analyst 1.00 1.00
Senior IS Support Technician 1.00 1.00
Systems Analyst I/II 3.00 3.00
Systems And Network Manager 1.00 1.00
Web Specialist 1.00 1.00
Total Merit 14.00 14.00
Total Per Diem 0.48 0.48
Total Positions 14.48 14.48
72 509 of 763
Information Technology

METRICS
Percent of uptime for databases and applications during business hours Percent of Help Desk calls completed within 48 hours or less Number of Help Desk calls annually
Percent of GIS requests completed within agreed upon time and scope Number of GIS requests annually
Percent of web support requests completed within agreed upon time and scope Number of web support requests annually
Composite Score, technology infrastructure reliability
Annual Customer Satisfaction Survey rating
73 510 of 763
Information Technology
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Performance 100% 100% 98% 98%
Performance 97% 96% 90% 90%
Workload 3,156 3,535 3,500 3,500
Performance 87% 96% 90% 90%
Workload 66 89 75 75
Performance 84% 86% 90% 90%
Workload 51 24 35 35
Performance 100% 100% 100% 100%
Performance 100% 100% 95% 90%
74 511 of 763
Library
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 4,596,627 $ 5,121,669 $ 5,904,064 $ 6,162,475 Operating 2,246,992 2,332,877 2,542,208 2,553,516
Capital Outlay 220,161 190,454 213,232 209,869
Total Expenditures $ 7,063,780 $ 7,645,000 $ 8,659,504 $ 8,925,860 Funding Sources
General Fund $ 7,063,780 $ 7,645,000 $ 8,659,504 $ 8,925,860 Total Funding Sources $ 7,063,780 $ 7,645,000 $ 8,659,504 $ 8,925,860

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
City Librarian 1.00 1.00
Administrative Technician 1.00 1.00
Community Services Coordinator 0.50 0.50
Deputy City Librarian 1.00 1.00
Executive Assistant 1.00 1.00
Librarian I/II 9.63 9.63
Library Assistant I/II 8.75 8.75
Library Technology Specialist 1.00 1.00
Literacy Program Coordinator 1.00 1.00
Literacy Specialist 0.63 0.63
Senior Accounting Assistant 1.00 1.00
Senior Library Assistant 3.00 3.00
Senior Management Analyst 1.00 1.00
Supervising Librarian 3.00 3.00
Supervising Library Assistant 1.00 1.00
Total Merit 34.51 34.51
Total Per Diem 19.81 19.81
Total Positions 54.32 54.32
75 512 of 763
Library

METRICS
Number of non-digital library materials in circulation
Number of digital library materials in circulation
Percent of self-checkout transactions
Number of library patrons receiving technology assistance/instruction Number of participants in library's reading programs
Percent of respondents to Customer Satisfaction Survey who rate library service as excellent or good Number of annual visits by library patrons
Number of patrons served through outreach
76 513 of 763
Library
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Workload 285,117 282,010 300,000 400,000
Workload 1,130,057 1,856,238 1,900,000 1,900,000
Performance 30% 86% 85% 86%
Workload 889 1 8,808 8,500 8,500
Workload 3,662 2 2,690 5,000 5,000
Performance N/A 96% 90% 90%
Workload 25,168 3 255,644 350,000 350,000
Workload 13,918 4 6,280 6,000 6,000

2. Reading program participation was impacted greatly by COVID-19 mandatory closures, social distancing and limitations to sanitization products needed for book and material distributions.

3. Library visits decreased during 2020-21 due to COVID-19 pandamic.

4. Includes virtual outreach.

1. These performance metrics was significantly impacted by COVID-19 mandatory public building closures, social distancing, and changes in patron behavior related to precautionary measures in the use of public spaces.
77 514 of 763
Parks and Recreation
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 10,090,826 $ 10,670,442 $ 12,242,393 $ 12,555,710 Operating 6,391,972 7,688,649 8,843,487 8,848,668
Capital Outlay 291,101 231,992 244,099 262,351
Debt Service 261 - - -
Total Expenditures $ 16,774,159 $ 18,591,082 $ 21,329,979 $ 21,666,729 Expenditures by Cost Center
Arborist $ 1,127,739 $ 1,295,911 $ 1,306,127 $ 1,312,555 Parks Planning 384,765 472,994 579,372 532,715
Parks & Landscapes 5,746,836 6,177,736 6,619,454 6,795,204 Landscape Resources Visitor Managemen 392,277 405,277 402,806 412,785 Community Services 6,689,467 7,872,645 9,795,524 9,946,590 Golf 2,433,075 2,366,520 2,626,696 2,666,879
Total Expenditures $ 16,774,159 $ 18,591,082 $ 21,329,979 $ 21,666,729 Funding Sources
General Fund $ 16,736,733 $ 18,591,082 $ 21,329,979 $ 21,666,729 Special Revenue Funds 37,427 - - -
Total Funding Sources $ 16,774,159 $ 18,591,082 $ 21,329,979 $ 21,666,729 78 515 of 763
Parks and Recreation

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Parks and Recreation Director 1.00 1.00
Administrative Assistant 1.00 1.00
Administrative Technician 1.00 1.00
Business Manager 1.00 1.00
Communications and Public Relations Analyst 1.00 1.00
Community Services Coordinator 5.00 9.00
Community Services Manager 1.00 -
Community Services Section Manager 3.00 2.00
Community Services Supervisor 8.00 7.00
Custodian 1.00 1.00
Deputy Parks and Recreation Director 1.00 1.00
Executive Assistant - -
Golf Course Maintenance Supervisor 1.00 1.00
Golf Equipment Maintenance Specialist 1.00 1.00
Golf Services Manager 1.00 1.00
Irrigation Specialist 2.00 2.00
Landscape Laborer 3.00 3.00
Landscape Maintenance Worker I/II 15.00 15.00
Lead Teacher 4.00 2.50
Managing Arborist 1.00 1.00
Park and Landscape Maintenance Supervisor 1.00 1.00
Park and Landscape Manager 1.00 1.00
Program Assistant I/II 1.00 1.00
Project Manager I/II 1.00 1.00
Senior Accounting Assistant 1.00 1.00
Senior Park Landscape Maintenance Worker 3.00 3.00
Senior Park Ranger 1.00 1.00
Senior Program Assistant 3.00 4.00
Tree Maintenance Specialist 1.00 1.00
Total Merit 65.00 65.50
Total Per Diem 49.22 49.08
Total Positions 114.22 114.58
79 516 of 763
Parks and Recreation

METRICS
Landscape Resources - Parks
We provide environmental stewardship of the City’s park land, civic facilities, medians, islands, and right-of ways.

Number of acres of developed park land, civic facilities, medians, and islands maintained ¹ Cost per acre to maintain developed park land, civic facilities, medians, and islands Percent of maintenance standards met at park land, civic facilities, medians, and islands Percent of park visitors who agree that the park and park landscaping was well maintained Percent of park visitors who reported feeling a high level of safety in our parks Number of acres of developed community parks and neighborhood parks with sports fields Water usage per acre at developed community parks and neighborhood parks ² Percent of maximum labor captured in Cartegraph
Landscape Resources - Trees
We provide environmental stewardship to the City’s street and park trees.

Number of street and park trees maintained
Number of street and park trees pruned annually
Percent of street and park trees pruned annually
Number of new trees planted
Percent of street and park trees removed that are replaced by newly planted trees Number of tree service requests
Percent of tree service requests responded to within 10 working days Golf
We efficiently operate an 18-hole golf course.

Number of golf rounds played annually
Percent of golf tee times utilized
Percent of golf course operating expenses covered by revenues We provide a community resource.

Number of golf course tournaments and clubhouse events facilitated annually Recreation
We provide opportunities for Active and Healthy Lifestyles, Creative Outlets, Creating Community, Youth Development, and Lifelong Learning.

Number of program registrants
Number of special events attendees
We balance providing affordable recreation and access for all with appropriate cost recovery through user fees.

Percent of programs covering costs within the cost recovery target range³ Number of unduplicated youth that received fee assistance to attend Recreation programs We encourage the involvement of youth and create a safe environment for them in our community.

Number of Recreation program registrants who are youth
Percent of Recreation program registrants who are youth Number of youth registrants made water safe through City swim lessons We offer our facilities as a community resource.

Number of public rentals occurring at recreation centers We have happy, satisfied customers.

Percent of course registration occurring online
Percent of Recreation program customers satisfied with overall experience * Results significantly impacted due to the COVID-19 pandemic. ¹ Target does yet include acreage for medians and islands. Staff is working to convert current information on miles to a relevant acreage number. ² Water usage is only tracked in those neighborhood parks with significant sports turf on a calendar year. ³ Cost recovery target range will be part of a study session with City Council to provide direction (Study Session Planned for 2022/23 Q4). 80 517 of 763
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Workload 289.7 289.7 289.7 289.7
Performance $19,975 $25,000 $26,000 $27,000
Performance 87% 85% 85% 85%
Performance 93% 95% 95% 95%
Performance 95% 97% 95% 95%
Workload 112.9 112.9 112.9 112.9
Performance 521 438 484 484
Performance 73% 75% 70% 70%
Workload 23,600 23,600 23,600 23,600
Performance 2,400 2,400 2,400 2,400
Performance 10% 10% 10% 10%
Workload 130 130 130 150
Performance 100% 100% 110% 110%
Workload 300 300 300 300
Performance 90% 90% 95% 95%
Workload 80,051 78,000 78,000 80,000
Performance 91% 75% 78% 77%
Performance 137% 110% 105% 100%
Workload 195 200 250 275
Workload 6,000 20,000 20,000 24,000
Workload 1,000* 16,000 25,000 26,000
Performance 45% 45% 35% 45%
Other 650 995 600 650
Performance 3,000* 15,000 14,000 16,000
Performance 63% 63% 65% 65%
Performance 200* 2,155 950 1,000
Workload -* 200 400 500
Performance 90% 75% 90% 92%
Performance 90% 90% 90% 90%
81 518 of 763
Police
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 43,172,446 $ 44,379,519 $ 47,609,040 $ 49,437,894 Operating 6,555,714 6,924,649 8,446,713 8,762,359
Capital Outlay 491,274 539,625 663,534 644,765
Total Expenditures $ 50,219,434 $ 51,843,793 $ 56,719,287 $ 58,845,018 Expenditures by Cost Center
Dispatch/Communications, Records & Technology Admin $ 4,232,071 $ 4,391,398 $ 7,092,522 $ 7,333,656 Crime Reduction Unit 1,900,485 2,158,215 3,562,610 3,478,057 Criminal Investigations 4,779,653 4,787,527 4,785,565 5,032,727 Downtown Security 647,938 438,331 981,092 758,774
Facilities and Overhead 1,418,783 1,477,724 906,877 909,003 Field Operations Admin Unit 1,379,316 1,422,374 1,936,198 2,039,799 Parking Enforcement 1,458,037 1,313,644 1,622,621 1,683,059 Patrol Unit 23,321,267 24,112,600 22,610,456 25,003,245 Support Services Admin 6,961,937 7,714,529 7,676,319 7,492,331 Traffic Unit 2,347,445 2,275,498 3,395,651 2,887,584
Youth Services 1,365,335 1,082,903 1,416,659 1,509,881
Police Activities League 407,168 669,050 732,717 716,902 Total Expenditures $ 50,219,434 $ 51,843,793 $ 56,719,287 $ 58,845,018 Funding Sources
General Fund $ 47,759,522 $ 51,417,273 $ 55,642,831 $ 57,981,162 Special Revenue Funds 2,459,912 426,520 1,076,456 863,856 Total Funding Sources $ 50,219,434 $ 51,843,793 $ 56,719,287 $ 58,845,018 82 519 of 763
Police

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Chief of Police 1.00 1.00
Administrative Assistant 2.00 2.00
Administrative Technician 1.00 1.00
Business Manager 1.00 1.00
Community Service Officer I/II 4.00 4.00
Communications & Public Relations Analyst 1.00 1.00
Crime and Intelligence Analyst 1.00 1.00
Dispatch Services Supervisor 2.00 2.00
Dispatcher I/II 14.00 14.00
Executive Assistant 1.00 1.00
Facilities Coordinator 1.00 1.00
Management Analyst I/II 1.00 1.00
Police Captain 2.00 2.00
Police Digital Forensic Specialist 1.00 1.00
Police Evidence Analyst 1.00 1.00
Police Lieutenant 6.00 6.00
Police Officer 90.00 90.00
Police Records Specialist I/II 5.00 5.00
Police Records Supervisor 2.00 2.00
Police Sergeant 17.00 17.00
Police Technical Services Administrator 1.00 1.00
Senior Business Systems Analyst 1.00 1.00
Senior Community Service Officer 1.00 1.00
Senior Police Records Specialist 2.00 2.00
Vehicle Abatement Officer 2.00 2.00
Total Merit 161.00 161.00
Total Per Diem 9.40 9.40
Total Positions 170.40 170.40
83 520 of 763
Police

METRICS
Field Operating Services
We take a collaborative approach to address critical factors that contribute to safe streets, and strive to increase safety through implementation of comprehensive Traffic Action Plans conducted in targeted areas based on violations, complaints, and collision data; and seek to mitigate the impact of traffic and parking violations on Number of pedestrian or bicycle collisions with motor vehicles Number of drunk driving arrests
Number of Traffic Action Plans
Number of Abandoned Vehicle Complaints
Percent of reported abandoned vehicle complaints resolved w/in 5 calendar days Number of parking citations issued
We conduct outreach and intervention to assist those experiencing homelessness, mental health crises, or in need of other social services.

Number of homeless outreach/crisis intervention referrals to services Our staff is devoted to protecting with honor and serving with pride by providing ethical and compassionate service to our public.

Percentage of those receiving services who indicate police service received was good or excellent Investigations Services
We work to maintain a safe, secure City through smart policing tactics and data driven strategic policing through prevention, intervention, and enforcement.

Number of reported incidents of violent crime (murder, rape, robbery, aggravated assault) Number of reported incidents of property crime (burglary, motor vehicle theft, auto burglary, larceny, arson) Number of officer-initiated incidents
Number of SMPD calls for service
We offer youth services aimed at providing intervention and diverting juveniles from the Criminal Justice System.

Number of juveniles diverted from the court system to the Youth Services Division Number of youth participating in Police Activities League prevention/intervention programs Support Services
We strive to quickly respond to all emergencies.

Average response time from dispatch of a Priority 1 call to arrival of responding officer Average answering time from moment call enters system to time it takes to answer Number of Priority 1 calls
Percentage of Priority 1 calls dispatched within 90 seconds of receipt We seek to enhance community awareness by increasing our following on social media and through our Neighborhood Watch 2.0 efforts which further elevate participation and encourage new users to subscribe.

Number of subscribers to the Police Department's Community Alert System and social media 84 521 of 763
Police
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Workload 53 47 60 N/A
Workload 176 150 190 N/A
Workload 48 48 48 N/A
Workload 4,264 2,824 4,300 N/A
Performance 93% 91% 90% 95%
Workload 36,409 37,276 55,000 N/A
Workload 96 103 110 N/A
Performance 97% 95%
new feedback
platform
implemented this
year
95%
Workload 647 723 840 N/A
Workload 2,257 2,147 2,400 N/A
Workload 23,381 25,139 27,000 N/A
Workload 58,250 60,183 65,000 N/A
Workload 7 14 30 20
Workload 1,210 2,174 2,500 3,000
Performance 5 min; 32 sec 5 min; 38 sec 5 min; 30 sec <7 minutes Performance 99% answered
w/in 15 seconds

98.7% answered
w/in 15 seconds

98.5% answered
w/in 15 seconds
95% answered
w/in 15 seconds
Workload 999 1,384 1,400 N/A
Performance 96% 96% 97% 90%
Other 147,876 158,259 166,000 172,000
85 522 of 763
Public Works
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Personnel $ 18,279,455 $ 19,345,219 $ 23,407,557 $ 25,448,003 Operating 18,229,764 19,741,847 24,688,131 24,149,817
Capital Outlay 611,126 486,855 772,215 1,014,631
Debt Service - 297,224 - -
Total Expenditures $ 37,120,345 $ 39,871,145 $ 48,867,902 $ 50,612,451 Expenditures by Cost Center
Facilities $ 2,704,060 $ 3,021,841 $ 3,365,434 $ 3,400,182 Fleet 1,834,942 2,050,699 2,537,701 2,525,337
Private Development 1,048,588 1,173,741 1,246,123 1,554,789 Public Works Administrative Services 386,275 384,353 610,160 556,987 Sewer 9,344,193 9,358,110 10,885,683 11,037,188
Solid Waste Management 1,013,616 1,098,312 1,882,268 1,846,158 Storm and Flood Control 890,435 1,174,767 1,290,961 1,829,777 Streets 2,585,988 3,064,006 4,222,196 4,847,155
Transportation 4,772,145 4,887,353 6,069,942 6,117,013
Wastewater Treatment Plant 12,540,102 13,657,963 16,757,435 16,897,867 Total Expenditures $ 37,120,345 $ 39,871,145 $ 48,867,902 $ 50,612,451 Funding Sources
General Fund $ 6,621,946 $ 8,937,413 $ 11,444,764 $ 12,159,747 Special Revenue Funds 3,928,240 2,697,112 3,573,752 4,333,590 Debt Service Fund 61,877 72,943 97,358 96,586
Enterprise Fund 21,969,281 23,091,137 27,848,893 28,097,009 Internal Service Fund 4,539,001 5,072,540 5,903,135 5,925,519 Total Funding Sources $ 37,120,345 $ 39,871,145 $ 48,867,902 $ 50,612,451 86 523 of 763
Public Works

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Public Works Director 1.00 1.00
Administrative Assistant 7.00 6.00
Administrative Technician 1.00 2.00
Associate Engineer 13.00 14.00
Associate Transportation Planner 1.00 1.00
Building Maintenance Supervisor 1.00 1.00
Business Manager 1.00 1.00
Calibration Technician 1.00 1.00
Central Services Worker 1.00 1.00
Communications and Public Relations Analyst 1.00 1.00
Construction Inspector I/II 4.00 4.00
Database Specialist 1.00 1.00
Deputy Director 2.00 2.00
Downtown Coordinator 1.00 1.00
Engineering Manager 3.00 3.00
Engineering Technician I/II 6.00 6.00
Environmental Compliance Inspector 3.00 3.00
Environmental Programs Coordinator 1.00 1.00
Executive Assistant 1.00 1.00
Facilities and Fleet Services Manager 1.00 1.00
Facility Maintenance Worker 3.00 3.00
Field Maintenance Manager 1.00 1.00
Fleet Services Supervisor 1.00 1.00
Instrument Control Technician 1.00 1.00
Laboratory Analyst I/II 3.00 3.00
Laboratory Supervisor 1.00 1.00
Laborer 1.00 1.00
Maintenance Planner 1.00 1.00
Maintenance Worker I/II 24.00 24.00
Management Analyst I/II 3.00 3.00
Principal Transportation Planner 1.00 1.00
Project Manager I/II 3.00 3.00
Public Works Maintenance Leadworker 3.00 3.00
Public Works Supervisor 2.00 2.00
Pump Station Mechanic I/II 2.00 3.00
Pump Station Mechanic III 1.00 1.00
Regulatory Compliance Manager 1.00 1.00
Senior Engineer 7.00 7.00
87 524 of 763
Public Works

FULL TIME EQUIVALENT (FTE) PERSONNEL
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Senior Facility Maintenance Worker 3.00 3.00
Senior I&C Technician 1.00 1.00
Senior Management Analyst 1.00 1.00
Solid Waste and Recycling Program Coordinator 1.00 1.00 Solid Waste Technician 1.00 1.00
Traffic and Light Technician 1.00 2.00
Traffic Safety Worker 3.00 3.00
WWTP Electrical Technician 1.00 1.00
WWTP Maintenance Superintendent 1.00 1.00
WWTP Manager 1.00 1.00
WWTP Mechanic I/II 6.00 6.00
WWTP Mechanic III 2.00 2.00
WWTP Operations Superintendent 1.00 1.00
WWTP Operator In-Training/I/II 9.00 10.00
WWTP Operator III 5.00 5.00
WWTP Shift Supervisor 2.00 2.00
Waste Management Supervisor 1.00 1.00
Total Merit 150.00 154.00
Total Per Diem 4.21 4.69
Total Positions 154.21 158.69
88 525 of 763
Public Works

METRICS
Clean Water Program
Feet of sewer pipe rehabilitated annually
Number of Private Sewer Lateral Program applicants completing sewer lateral replacement Engineering Services - Capital Improvement Program
Citywide Pavement Condition Index (PCI)
Number of miles in the San Mateo street inventory
Number of street miles in street inventory with PCI 30 or less Number of street miles in street inventory with PCI 25 or less Engineering Services - Transportation and Private Development Number of planning applications received
Number of planning applications reviewed within 20 days Percent of planning applications reviewed within 20 days Number of building permits received
Number of building permits reviewed within 20 days
Percent of building permits reviewed within 20 days
Percent of customer satisfaction score of 3 or higher at PW Counter (Scale: 1 - 5, 1 = Not Satisfied 5 = Extremely Satisfied) Facilities
Percent of graffiti removed from City facilities or Right of Way within 48 hours of reporting Percent of non-emergency rolling fleet that are sustainable Field Maintenance
Number of miles of sewer main cleaned
Percent of sewer pump stations inspected with quarterly preventative maintenance performed Number of sidewalk tripping hazards reported
Number of sidewalk tripping hazards addressed within 7 days (patch or barricade) Percent of traffic signals inspected with semi-annual preventive maintenance performed Percent of streetlights inspected with semi-annual preventative maintenance performed Number of Sanitary Sewer Overflows
Regulatory Compliance
Percent of regulatory requirements monitored and completed on schedule Percent trash reduction in storm water
Number of illegal dumping incidents reported
Wastewater Treatment Plant
Number of days per year the Wastewater Treatment Plant was in full compliance with water, air, and hazardous materials regulations
Millions of gallons of wastewater treated at the City's wastewater treatment plant Cost of treatment at the City's wastewater treatment plant per millions of gallons 89 526 of 763
Public Works
TYPE 2020-21

RESULTS
2021-22

RESULTS
2022-23

ESTIMATE
2023-24
TARGET
Workoad 8,262 9,400 7,000 7,000
Performance 243 172 175 175
Performance 71 72 72 75
Workload 200 200 200 200
Performance 12.2 14.3 11.8 <5
Performance 9.0 12.6 8.7 <5
Workload 110 141 120 110
Performance 88 57 90 77
Performance 80% 43% 90% 70%
Workload 820 1,192 950 1,200
Performance 738 928 850 765
Performance 90% 78% 90% 85%
Performance 90% 85% 90% 90%
Performance 88% 91% 98% 98%
Performance 36% 37% 38% 45%
Workload 247 290 240 250
Performance 100% 74% 100% 100%
Workload 95 145 95 85
Performance 85 144 85 80
Performance 100% 106% 100% 100%
Performance 100% 43% 100% 100%
Workload <10 <10 <10 <10
Performance 100% 100% 100% 100%
Performance 90% 83% 100% 90%
Workload 660 576 650 650
Performance 99% 99% 100% 100%
Workload 3,702 3,834 3,702 4,000
Workload $4,032 $3,382 $3,500 $3,500
90 527 of 763
Non-Departmental
FINANCIALS 2020-21

ACTUALS
2021-22

ACTUALS
2022-23

ADJUSTED
BUDGET
2023-24

PROPOSED
BUDGET
Expenditures by Category
Operating $ 71,148,856 $ 74,334,264 $ 79,264,802 $ 83,449,568 Capital Outlay 7,331,474 8,557,315 9,544,779 8,890,507
Debt Service 17,665,485 18,289,040 20,756,267 34,851,761 Total Expenditures $ 96,145,815 $ 101,180,619 $ 109,565,848 $ 127,191,836 Funding Sources
General Fund $ 32,238,109 $ 34,801,995 $ 36,341,849 $ 38,629,561 Special Revenue Funds - 22,007 21,326 21,966
Debt Service Funds 24,197,570 23,999,603 20,326,558 34,126,370 Internal Service Funds 39,710,135 42,357,013 52,876,115 54,413,939 Total Funding Sources $ 96,145,815 $ 101,180,619 $ 109,565,848 $ 127,191,836 Overview
In addition to expenditures that are directly related to departmental operations, there are also significant expenditures that are not directly attributable to the departments. The largest of the non-departmental expenditures is related to our internal services mechanism. To reflect the full cost of operations in departmental budgets, the cost of benefits (medical, dental, pension, etc.) and vehicle/equipment replacement is included in those budgets. To administer these programs in an efficient manner, the actual funds from each department are collected into a series of internal service funds, which consolidate the monies to pay for the benefits and vehicle/equipment replacements. Internal service fund expenses are not included in the total operating budget, as they are already incorporated into each department’s operations.

The second largest non-departmental expenditure reflects the City’s contribution to San Mateo Consolidated Fire Department (SMC Fire), a joint powers authority (JPA) between the City of Belmont, City of Foster City, and City of San Mateo, for fire services. Operations in SMC Fire commenced in January 2019, and in accordance with the JPA, its costs are allocated 20% each to Foster City and Belmont, and 60% to San Mateo. For 2023-24, the City’s contribution amounts to $27.5 million.

The non-departmental budget for 2023-24 also includes $6.8 million in net legacy costs for pension liability, workers’ compensation, and retiree medical related to retirees and former employees from the City’s fire operations that have transferred to SMC Fire. Combined with the contribution to SMC Fire, the City’s cost for fire services totals $34.3 million for 2023-24.

Another large non-departmental expenditure is the payment of debt service. This includes payment for the library general obligation bonds, golf bonds, sewer bonds, lease revenue bonds related to the funding of the police administration building, and lease revenue bonds for street and flood control improvements.

Finally, the General Fund contribution to the Comprehensive Liability Fund is included as part of non-departmental expenditures. The amount for 2023-24 is $2.5 million.
91 528 of 763
FUND INFORMATION 127
Fund
Information
92 529 of 763
130 CITY OF SAN MATEO PROPOSED 2023-24 BUDGET
Special Revenue
93 530 of 763
Police Grants and Safety
POLICE GRANTS AND SAFETY 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 256 $ 246 $ 294 $ -
Revenues
Interest Earnings $ 4 $ 5 $ 6 $ 7
Asset Seizure 21 8 - -
State Grants 391 803 564 513
Total Revenues $ 417 $ 816 $ 570 $ 519
Expenditures
Personnel $ 315 $ 695 $ 570 $ 477
Operating 22 72 294 8
Capital Outlay 90 - - -
Total Expenditures $ 427 $ 767 $ 864 $ 485
Ending Fund Balance $ 246 $ 294 $ - $ 34
Values are shown in thousands.

The purpose of the Police Grants and Safety Fund is to receive and track all Police Department grant revenue, asset forfeiture revenue, and corresponding expenditures in accordance with prescribed regulations. Revenues for this fund are comprised of state and federal asset forfeiture funds, and grants from mainly sources such as the Citizens' Option for Public Safety Program's Supplemental Law Enforcement Services Funds (COPS/SLESF); the State Office of Traffic Safety (OTS) Grant; and the State Department of Justice Tobacco Grant Program.

State and federal asset forfeiture funds are assets that have been confiscated by the state or federal government, which are typically the proceeds or instruments of crime. Receiving and tracking asset forfeiture funds in the Police Grants and Safety Fund began in 2018-19. Prior to 2018-19, asset forfeiture funds were deposited into the Capital Improvement Projects Fund. Moving these funds into the Police Grants and Safety Fund allows for greater visibility to available resources and more efficient reporting on how these funds are being utilized.

The COPS/SLESF grant was established in 1996. Compliant cities are allocated a proportionate share of COPS funds by the State for the exclusive purpose of funding supplemental front line law enforcement services. Under the standard grant program allocation, the City of San Mateo is eligible to receive a minimum grant amount of $100,000 each year, with additional proportionate shares based on population estimates determined by the California Department of Finance. Funds for this program cannot supplant existing funding and are to be used for personnel and/or equipment.

In the 2023-24 budget, proceeds from this grant will cover the cost of two partial traffic officer positions. While the COPS program is intended to be ongoing and permanent, there is no guarantee that continued funding will be available. However, the forecast assumes this fund will remain operating as usual.

Recognizing the need to improve overall traffic and transportation safety, Congress passed the National Highway Safety Act, which provides for federal traffic safety funds to states. The California Office of Traffic Safety (OTS) was created to administer the funds and provide grants to both the San Mateo Police Department and regionally to San Mateo County for the purpose of reducing traffic deaths, injuries, and economic losses.

Each year, eligible agencies compete for available funds by submitting proposals to address traffic safety problems. OTS does not have sufficient funds for all submissions, and reviews proposals against several criteria, including the potential traffic safety impact, collision statistics, seriousness of identified problems, and performance on previous grants. San Mateo has been a recipient of this grant annually since 1996. In the 2023-24 budget, proceeds from this grant will provide additional resources to combat impaired driving; enforce traffic laws; and conduct sobriety/driver license checkpoints, DUI saturation patrols, and targeted pedestrian/bicycle safety enforcement operations to help achieve the overarching goal of reducing injury traffic collisions.

The 2023-24 budget also reflects expenditures planned as a result of a grant awarded from the California Department of Justice for the Proposition 56 Tobacco Grant Program. This grant funds a Police Officer position dedicated to reducing and preventing the use of tobacco products among youth, teens, and the community at large through education, outreach, and enforcement activities. The total grant award is $710,114 and will be expended over the course of three years.

The two-year financial plan being presented represents the best estimate of grant revenues and the spending plan as of the update of the budget.

Each aspect will be monitored and adjustments may be made as necessary to keep the fund's balance positive. 94 531 of 763
Solid Waste
SOLID WASTE 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 7,832 $ 9,557 $ 10,761 $ 10,171 $ 9,955 $ 9,703 $ 9,392 Revenues
Interest Earnings $ 15 $ 155 $ 160 $ 160 $ 160 $ 160 $ 160 Service Charges 2,991 3,084 2,610 2,632 2,654 2,676 2,699 Other Revenues 662 852 662 662 662 662 662
Total Revenues $ 3,668 $ 4,090 $ 3,432 $ 3,454 $ 3,476 $ 3,498 $ 3,521 Expenditures
Personnel $ 1,313 $ 1,477 $ 2,057 $ 2,098 $ 2,140 $ 2,204 $ 2,270 Operating 535 641 784 800 816 832 849
Capital Outlay 42 18 432 22 22 23 23
Total Expenditures $ 1,890 $ 2,136 $ 3,272 $ 2,919 $ 2,978 $ 3,059 $ 3,142 Transfer Out $ 54 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750
Ending Fund Balance $ 9,557 $ 10,761 $ 10,171 $ 9,955 $ 9,703 $ 9,392 $ 9,021 Values are shown in thousands.

The Solid Waste Fund accounts for garbage collection surcharge revenues, which are restricted by City ordinance to be used for street cleaning and waste management. The street cleaning aspect of this fund consists of keeping 204 curb miles of streets swept, as well as cleaning and maintaining City-owned parking lots. The waste management aspect of this fund involves the coordination and oversight of a range of programs and activities that provide the community with solid waste and recycling services.

Included in the service charges is $750,000 per year that the fund receives through the garbage collection provider for capital improvements related to the trash load reduction requirements of the Municipal Regional Plan issued by the Regional Quality Control Board. The five-year plan shows the transfer out of these funds to the Capital Improvement Projects Fund for trash capture device projects to meet the trash reduction requirements.

Fund balance has accumulated in this fund as expenditures have been lower than expected over the past several years.

Going forward, services for street cleaning and waste management will continue to be evaluated to ensure that the level of support being provided is sufficient. Service charges will continue to be evaluated and adjusted as necessary to ensure alignment with expected expenditures and appropriate reserve levels. 95 532 of 763
HOME
HOME 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 942 $ 373 $ 434 $ 439
Revenues
Loan Payments $ 87 $ 61 $ 15 $ 15
Total Revenues $ 87 $ 61 $ 15 $ 15
Expenditures
Operating $ 5 $ - $ 10 $ 10
Loan Forgiveness 650 - - -
Total Expenditures $ 655 $ - $ 10 $ 10
Ending Fund Balance $ 373 $ 434 $ 439 $ 444
Values are shown in thousands.

The HOME Investment Partnership (HOME) Program is a federal grant used to assist rental and homeownership housing opportunities for households up to 60-80% of the median income. The City received an annual HOME grant from 1994 to 2016. The fund now includes program income from loan repayments from loans funded with HOME monies in the past.

The program income from prior HOME loans will continue to be collected, and potential projects will be identified as the fund balance reaches an appropriate level. Resources accumulated fund HOME-eligible uses, such as new construction of housing, acquisition and rehabilitation of existing buildings, and down payment assistance. $650,000 has been committed to finance the construction of a new affordable housing project in Downtown San Mateo. 96 533 of 763
Community Development Block Grant
CDBG FUND 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 375 $ 357 $ 209 $ 50
Revenues
Intergovernmental Contributions $ 1,743 $ 369 $ 696 $ 696 Loan Payments 31 5 8 8
Total Revenues $ 1,774 $ 374 $ 704 $ 704
Expenditures
Personnel $ 26 $ 48 $ 24 $ 24
Operating 738 457 229 224
Total Expenditures $ 764 $ 505 $ 253 $ 248
Transfer Out $ 1,028 $ 17 $ 610 $ 410
Ending Fund Balance $ 357 $ 209 $ 50 $ 96
Values are shown in thousands.

The Community Development Block Grant (CDBG) Program is a federal grant from the Department of Housing and Urban Development (HUD) that provides flexible funding for community development projects and programs to assist lower income neighborhoods and households up to 80% of the median income. San Mateo has participated in this program since 1977. The fund consists of draws against the grant letter of credit, as well as program income from loan repayments from loans funded with CDBG in the past. The letter of credit consists of prior year unexpended funds in addition to the annual grant. These funds are held by HUD and drawn down on a reimbursement basis to the City.

In FY 2020-21 City received $1,260,683 additional funds to specifically address COVID related impacts to community.

Expenditures of these funds started in 2020 and continued to be drawn from 2021 to 2023 for emergency rental assistance and small business assistance to child care providers.

For the next two years, CDBG funds will be used for Community Funding grants to local social service agencies who serve lower income residents, facility repairs for local service agencies, minor home repairs to lower income homeowners, pedestrian and bike improvements in North Shoreview and North Central neighborhoods, and program administration. 97 534 of 763
Advance Planning
ADVANCE PLANNING 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 5,213 $ 4,605 $ 4,459 $ 4,878 $ 5,270 $ 5,634 $ 5,968 Revenues
Interest Earnings $ (132) $ 89 $ 92 $ 92 $ 92 $ 92 $ 92 General Plan Maintenance Fee 1,039 1,590 1,700 1,700 1,700 1,700 1,700 State Grants - - 50 50 50 50 50
Total Revenues $ 906 $ 1,679 $ 1,842 $ 1,842 $ 1,842 $ 1,842 $ 1,842 Expenditures
Personnel $ 601 $ 568 $ 597 $ 609 $ 621 $ 633 $ 646
Operating 913 1,141 825 841 857 874 891
Total Expenditures $ 1,514 $ 1,709 $ 1,423 $ 1,450 $ 1,478 $ 1,507 $ 1,537 Transfer Out $ - $ 116 $ - $ - $ - $ - $ -
Ending Fund Balance $ 4,605 $ 4,459 $ 4,878 $ 5,270 $ 5,634 $ 5,968 $ 6,274 Values are shown in thousands.

The Advance Planning Fund accounts for the General Plan maintenance fee collected through building permits and expenditures for activities related to preparing long-term plans and policy documents for the physical and economic development of the City, including the General Plan update. These plans and policies are used for the evaluation of development projects and determining priorities for public improvements.

Prior to 2021-2022, the Community Development Department increased the General Plan maintenance fee to account for the costs associated with several long-range planning efforts the City needs to complete. Although revenue was down in 2021-2022, the maintenance fee is expected to bring in additional revenue in future years given the volume and size of the projects in the development pipeline.

It is anticipated that operating expenditures will be lower in 2023-24 largely due to the bulk of the General Pan Update being completed in prior fiscal years. In future budget years, Advance Planning staff will be monitoring passage and implementation of new State legislation, the next iteration of the Sustainable Communities Strategy (Plan Bay Area) by the Association of Bay Area Governments and Metropolitan Transportation Commission, completing near-term Zoning Code Amendments, preparing and adopting the General Plan Update, creating objective design standards for residential development, and implementing general planning, zoning, and policy recommendations as directed by the City Council. In future cycles, the implementation of the General Plan Update and revision of the City’s various specific plans and zoning code will be funded by the Advance Planning Fund.
98 535 of 763
Construction Services
The Construction Services Fund accounts for building permit revenues and expenditures for activities related to the review of private development projects to achieve high quality and long-term economic growth in the City. Building Division staff members also ensure that new construction meets established standards for health and safety, accessibility, energy efficiency, and provide public education to enhance the safety of existing buildings and better awareness of building codes.

Over the last several years, fund balance has grown significantly. Revenue in this fund is for services to be provided over time, and therefore, the significant fund balance will be needed over time to provide services for existing projects in process. While revenues in the five-year plan are expected to remain stable in the near term, service demand is expected to remain high to fully process existing projects. This is reflected in the ending fund balance being drawn upon over the course of the five-year plan.

Beginning in 2019-20, lease payments through a transfer out have been made to the General Fund for space occupied by construction services staff in City Hall. Additionally, a number of funding commitments are made to transfer out to the Capital Improvement Projects Fund to support the digital storage of property records and electronic review of plans submittals, the traffic model update, and facilities improvements.

Beginning in 2021-22 through 2023-24, as part of the fiscal sustainability plan, and in recognition of the General Fund not charging the full administrative burden to the Construction Services Fund since the Great Recession, a total of $10 million over the three year period to the Capital Improvement Projects Fund will supplant the General Fund transfer to support priority general capital projects, such as the high voltage streetlight conversion.

CONSTRUCTION SERVICES 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 41,364 $ 36,314 $ 35,320 $ 26,155 $ 21,973 $ 17,999 $ 14,110 Revenues
Interest Earnings $ (1,059) $ 458 $ 479 $ 479 $ 479 $ 479 $ 479 Plan Check Fees 4,282 6,134 3,156 3,199 3,243 3,288 3,334 Permit Fees 4,196 5,493 4,660 4,753 4,848 4,945 5,044
Other Fees 323 496 525 536 546 557 568
Total Revenues $ 7,741 $ 12,580 $ 8,820 $ 8,967 $ 9,117 $ 9,269 $ 9,425 Expenditures
Personnel $ 7,141 $ 6,795 $ 9,371 $ 9,374 $ 9,377 $ 9,380 $ 9,383 Operating 2,753 2,215 3,049 3,096 3,144 3,194 3,245
Capital Outlay 38 39 39 39 39 39 39
Total Expenditures $ 9,932 $ 9,049 $ 12,459 $ 12,509 $ 12,560 $ 12,613 $ 12,667 Transfer Out $ 2,859 $ 4,525 $ 5,526 $ 640 $ 530 $ 546 $ 563 Ending Fund Balance $ 36,314 $ 35,320 $ 26,155 $ 21,973 $ 17,999 $ 14,110 $ 10,305 Values are shown in thousands.
99 536 of 763
The Gas Tax Fund accounts for gasoline tax revenues that are utilized for street-related operating and capital costs. The fund makes an annual transfer to the General Fund to partially offset eligible operating costs related to the City's streets and roads maintenance programs. Additionally, it makes annual contributions to the Capital Improvement Projects Fund to fund various capital improvement projects.

Fuel consumption was sharply down during the height of the COVID-19 pandemic but has largely recovered to the prepandemic rate of consumption. Fuel prices increased steeply due to inflation but the price of fuel no longer has a direct effect on local streets and roads revenues because gas tax rates are per gallon, regardless of price. Scheduled gax tax rate increases help keeping the revenue growth at a modest pace. Based on the State Department of Finance (DOF) estimates, staff anticipates the City's gas tax revenues will reach $2.7 million in 2022-23, and further increase to $3 million for 2023-24. The five-year plan maintains the annual transfer to the General Fund, and makes contributions to the Capital Improvement Projects Fund to fund street reconstruction and rehabilitation projects. As more information becomes available on the impacts to gasoline tax revenues, this plan will be updated accordingly.

GAS TAX 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 679 $ 1,081 $ (565) $ 198 $ 11 $ 6 $ 73 Revenues
Interest Earnings $ (18) $ 12 $ 12 $ 12 $ 12 $ 12 $ 12
State Gas Tax 1,465 1,810 1,971 2,010 2,050 2,091 2,132 Gas Tax In Lieu of
Prop 42 721 908 1,048 1,069 1,090 1,112 1,134
Total Revenues $ 2,168 $ 2,730 $ 3,030 $ 3,091 $ 3,152 $ 3,215 $ 3,278 Transfer Out $ 1,766 $ 4,376 $ 2,268 $ 3,278 $ 3,158 $ 3,148 $ 3,148 Ending Fund Balance $ 1,081 $ (565) $ 198 $ 11 $ 6 $ 73 $ 204 Values are shown in thousands.

Gas Tax
100
537 of 763
CITY HOUSING 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 956 $ 1,058 $ 939 $ 775
Revenues
Interest Earnings $ - $ 18 $ 18 $ 18
Miscellaneous 150 - 16 16
Total Revenues $ 150 $ 18 $ 34 $ 34
Expenditures
Contribution to Other Agencies $ 47 $ 47 $ 47 $ 47
Contribution to First Time Home Buyers - 90 150 150
Operating 1 - 2 2
Total Expenditures $ 48 $ 137 $ 199 $ 199
Ending Fund Balance $ 1,058 $ 939 $ 775 $ 610
Values are shown in thousands.

The City Housing Fund captures a variety of housing-related revenues, including loan repayments from the defunct federal Rental Rehabilitation Program, a pro rata share of the original homebuyer loans at the Meadow Court housing complex, fees collected for housing loan subordination requests, and the fractional Below Market Rate (BMR) program in lieu fees.

This fund can be used to assist housing-related projects when the fund balance is sufficient and appropriate projects are identified. For the next two years, funds are set aside to assist first-time homebuyers on purchasing housing units that the City has acquired in order to retain their below market rate status. Additionally, funds will be used to pay for financial assistance to Samaritan House for Safe Harbor, the county-wide homeless shelter located in South San Francisco, and the City membership fee for The Housing Endowment and Regional Trust of San Mateo County (HEART), the countywide housing trust fund. These expenditures cannot be covered by other housing funds since they are not located in the city limits of San Mateo.

City Housing
101
538 of 763
LOW AND MODERATE INCOME HOUSING ASSET 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 7,072 $ 4,331 $ 4,542 $ 4,683
Revenues
Interest Earnings $ 28 $ 64 $ 73 $ 73
Loan Payments 165 244 214 220
Total Revenues $ 193 $ 308 $ 287 $ 293
Expenditures
Personnel $ 45 $ 45 $ 48 $ 48
Operating 40 51 99 99
Loan Forgiveness 2,850 - - -
Total Expenditures $ 2,934 $ 96 $ 146 $ 147
Ending Fund Balance $ 4,331 $ 4,542 $ 4,683 $ 4,829
Vales are shown in thousands.

The Low and Moderate Income Housing Asset Fund consists of loan payments, lease payments, sale of property, and any other revenue generated from loans or assets held by the City as Housing Successor to the former Redevelopment Agency.

State law regulates the use of these funds to support housing projects that assist households whose income ranges up to 80% of median income.

The fund also consists of administrative costs to monitor existing housing projects, manage the existing loan portfolio, and plan for new projects. $2.85 million was committed in a prior fiscal year to finance the construction of a new affordable housing project in Downtown San Mateo.

Low and Moderate Income Housing Asset
102
539 of 763

PARKS AND RECREATION

REVENUE
2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 12,560 $ 12,126 $ (2,154) $ 5,746 $ 15,063 $ 8,336 $ 6,245 Revenues
Interest Earnings $ (329) $ 182 $ 187 $ 187 $ 187 $ 187 $ 187 Parks and Recreation Tax and Fees 137 143 10,780 19,672 1,229 1,740 1,000 Total Revenues $ (192) $ 325 $ 10,967 $ 19,859 $ 1,416 $ 1,927 $ 1,187 Expenditures
Operating $ 17 $ 16 $ 17 $ 17 $ 18 $ 18 $ 18
Total Expenditures $ 17 $ 16 $ 17 $ 18 $ 18 $ 18 $ 19
Transfer Out $ 225 $ 14,589 $ 3,050 $ 10,525 $ 8,125 $ 4,000 $ 2,000 Ending Fund Balance $ 12,126 $ (2,154) $ 5,746 $ 15,063 $ 8,336 $ 6,245 $ 5,413 Values are shown in thousands.

The Parks and Recreation Revenue Fund accounts for parks and recreation tax, park impact fees, and park in-lieu fees. Revenue projections are based on residential building projects, and are thus dependent on development activity.

Accumulated resources in this fund are utilized to fund parks and recreation related projects through a transfer to the Capital Improvement Projects Fund.

Major transfers planned for 2023-24 include improvements related to King and Joinville pool assessments and improvements, as well as the Central Park Master Plan and sports field conversion to turf. Transfers planned beyond 2023- 24 include improvement to citywide play area upgrade, the Central Park Master Plan, sports field conversion to turf, and continued assessments and improvements to the King Pool.

Parks and Recreation Revenue
103
540 of 763
TRAFFIC IMPACT FEE 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 843 $ 257 $ (1,707) $ 780 $ 3,387 $ 5,825 $ 5,541 Revenues
Interest Earnings $ (21) $ - $ 32 $ 36 $ 36 $ 36 $ 36
Traffic Impact Fees 25 2,917 2,505 2,821 3,252 530 500
Total Revenues $ 4 $ 2,917 $ 2,537 $ 2,857 $ 3,288 $ 566 $ 536 Transfer Out $ 590 $ 4,882 $ 50 $ 250 $ 850 $ 850 $ 850 Ending Fund Balance $ 257 $ (1,707) $ 780 $ 3,387 $ 5,825 $ 5,541 $ 5,227 Values shown in thousands.

The Traffic Impact Fee Fund accounts for revenues that are collected to fund various capital projects to mitigate the traffic related cumulative impacts of new development. Revenues from this fund were used to partially pay for traffic calming projects, construction costs of new traffic signals, and to fund infrustructure projects such as the 25th Ave. Grade Separation Project, which was completed in 2021, and the Railroad Avenue Wall Enhancement project. These expenditures left the fund with a negative balance. The General Fund and/or the Capital Improvement Projects Fund temporarily loaned funds to the Traffic Impact Fee Fund to cover the City's contributions for these capital improvement projects. In the five-year Capital Improvement Plan, transfers are being made to fund bicycle projects, the Citywide Traffic Calming project, and the Traffic Impact Fee update.

Traffic Impact Fee
104
541 of 763
The Commercial Linkage Fee is an assessment on new commercial developments to address the impacts of new job creation on housing availability and affordability for workers. Developers pay a fee based on square footage of new commercial space depending on type of use: office, retail, or hotel. The funds are to be used for housing programs to assist workers who make up to 120% of the area median income. Examples of housing programs can include acquisition, rehabilitation, or new construction of housing.

The fund balance is being accumulated over the period of this forecast. Potential projects will be identified as the fund balance reaches an appropriate level. Accumulated resources will be utilized to fund projects through a transfer to the Capital Improvement Projects Fund, and this plan will be updated accordingly as more information is available. $4 million was committed from the fund to finance the construction of a new affordable housing project in Downtown San Mateo and the fund drawdown occured in 2021-22.

Commercial Linkage Fee
COMMERCIAL LINKAGE FEE 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 7,157 $ 3,160 $ 3,264 $ 3,383
Revenues
Interest Earnings $ (126) $ 109 $ 125 $ 125
Commercial Linkage Fee 133 - - -
Total Revenues $ 7 $ 109 $ 125 $ 125
Expenditures
Operating $ 5 $ 5 $ 5 $ 5
Loan Forgiveness 4,000 - - -
Total Expenditures $ 4,005 $ 5 $ 5 $ 5
Ending Fund Balance $ 3,160 $ 3,264 $ 3,383 $ 3,503
Values are shown in thousands.
105
542 of 763

ROAD MAINTENANCE AND

REHABILITATION ACCOUNT
2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 2,037 $ 2,166 $ 480 $ 1,111 $ 1,320 $ 1,411 $ 1,584 Revenues
Road Maintenance and
Rehabilitation $ 2,090 $ 2,294 $ 2,614 $ 2,693 $ 2,773 $ 2,857 $ 2,942 Interest Earnings (68) 15 17 17 17 17 17
Total Revenues $ 2,022 $ 2,309 $ 2,631 $ 2,710 $ 2,790 $ 2,874 $ 2,959 Transfer Out $ 1,892 $ 3,995 $ 2,000 $ 2,500 $ 2,700 $ 2,700 $ 2,700 Ending Fund Balance $ 2,166 $ 480 $ 1,111 $ 1,320 $ 1,411 $ 1,584 $ 1,844 Values are shown in thousands.

The Road Maintenance and Rehabilitation Account (RMRA) Fund was created in 2020-21. It accounts for transportation taxes established by the Road Repair and Accountability Act of 2017 (SB 1). Prior to 2020-21, RMRA revenues were deposited in the Gas Tax Fund, and then subsequently transferred to the Capital Improvement Projects Fund to fund eligible projects. Moving this revenue source into its own special revenue fund creates greater visibility to available resources for projects and will allow for more efficient reporting on how these funds are being utilized.

Based on the State Department of Finance (DOF) estimates, staff anticipates that the RMRA revenues will be approximately $2.9 million for FY 2022-23 and $2.6 million for FY 2023-24. Accumulated resources from the RMRA revenues will be utilized to fund street reconstruction and rehabilitation projects through a transfer to the Capital Improvement Projects (CIP) Fund. In the five-year plan, the annual transfers to CIP are over $2 million each year.

Road Maintenance and Rehabilitation Account
106
543 of 763
PERMANENT LOCAL HOUSING ALLOCATION 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ - $ (23) $ (23) $ (23)
Revenues
Interest Earnings $ (2) $ - $ - $ -
State Grants 177 368 500 500
Total Revenues $ 175 $ 368 $ 500 $ 500
Expenditures
Operating $ 198 $ 368 $ 500 $ 500
Total Expenditures $ 198 $ 368 $ 500 $ 500
Ending Fund Balance $ (23) $ (23) $ (23) $ (23)
Values are shown in thousands.

The Permanent Local Housing Allocation (PLHA), which began in Fall 2020, is a State Grant that will continue on an annual basis based on actual State receipts of document recording fees. These funds are flexible as long as they are used for housing-related projects and programs that assist in addressing the unmet housing needs of San Mateo.

The fund supports two programs to support housing affordability in the City. The first is an operations subsidy for client services at the affordable housing development Montara and a rapid rehousing program with case management, which will use the remainder of the annual grant.

Permanent Local Housing Allocation
107
544 of 763
The Landfill Fund was initially set up as a debt service fund to account for debt service payments for the landfill revenue bonds. Since the landfill bonds have been paid off, starting in fiscal year 2022-23, the Landfill Fund was reclassified to a special revenue fund. Surcharge revenues collected will be reviewed and adjusted in future years to reflect the reduction of the debt service obligation.

The Landfill Fund will continue to maintain a fund balance that is sufficient to meet the City's landfill closure and postclosure obligations.

Landfill
LANDFILL 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 2,923 $ 3,368 $ 3,921 $ 4,479
Revenues
Interest Earnings $ (82) $ 50 $ 55 $ 55
Garbage Collection Surcharge 600 600 600 600
Total Revenues $ 518 $ 650 $ 655 $ 655
Expenditures
Personnel $ 26 $ 27 $ 27 $ 27
Operating 46 70 70 70
Total Expenditures $ 73 $ 97 $ 97 $ 97
Ending Fund Balance $ 3,368 $ 3,921 $ 4,479 $ 5,037
Values are shown in thousands.
108
545 of 763
148 CITY OF SAN MATEO PROPOSED 2023-24 BUDGET
Debt Service
109
546 of 763
The City has two debt service funds: the Street and Flood Control Projects Bond Fund and the General Obligation Bonds Fund.

The Street and Flood Control Projects Bond Fund is a new fund that accounts for debt service payments on lease revenue bonds issued in 2019-20 to finance the construction and acquisition of public improvements of the City, including street and flood control improvements. As these improvements are part of the Measure S initiatives, revenues from Measure S are transferred into this fund to administer the debt services. Additionally, a benefit assessment district was created in the North Shoreview neighborhood as it relates to the flood control improvements. Assessment levies are expected to be collected beginning 2023-24, and will pay approximately 6.9% of annual debt service beginning 2024-25. The remaining debt service is funded by the Measure S.

Street & Flood Control Projects Bond
STREET & FLOOD CONTROL PROJECTS BOND 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 12 $ 5 $ 5 $ 5
Revenues
Interest Earnings $ (8) $ - $ - $ -
Total Revenues $ (8) $ - $ - $ -
Expenditures
Operating $ 29 $ 61 $ 63 $ 64
Debt Service 2,634 2,632 2,629 2,629
Total Expenditures $ 2,663 $ 2,693 $ 2,692 $ 2,694
Transfer In $ 2,664 $ 2,693 $ 2,692 $ 2,694
Ending Fund Balance $ 5 $ 5 $ 5 $ 5
Values are shown in thousands.
110
547 of 763
The General Obligation Bonds Fund accounts for voter-approved property tax revenues and debt service payments on the City's general obligation bonds that were utilized to finance the construction, acquisition, and improvement of a new main library and the improvement of the City's branch libraries.

Other debt of the City is housed directly in the applicable operating and capital funds, with payments for debt service listed as a line item in the financial plans.

The City is bound by a provision in state law limiting the indebtedness for California cities to 15% of the assessed value of all real and personal property of the city. Based on the projected 2023-24 assessed value of $36.2 billion, San Mateo's legal debt limit for 2023-24 is $5.4 billion. For 2023-24, the City will be at only 0.3% of its legal debt limit. This statutory limitations applies only to bonded indebtedness of the City payable from proceeds of taxes levied on a property. For San Mateo, this includes only the general obligation bonds.

General Obligation Bonds
GENERAL OBLIGATION BONDS 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
Beginning Fund Balance $ 5,688 $ 5,929 $ 5,970 $ 6,011
Revenues
Interest Earnings $ (128) $ 97 $ 99 $ 99
Property Taxes 2,448 2,041 2,049 2,131
Total Revenues $ 2,320 $ 2,138 $ 2,148 $ 2,230
Expenditures
Operating $ 33 $ 57 $ 59 $ 59
Debt Service 2,046 2,041 2,049 2,062
Total Expenditures $ 2,079 $ 2,098 $ 2,108 $ 2,121
Ending Fund Balance $ 5,929 $ 5,970 $ 6,011 $ 6,121
Values are shown in thousands.
111
548 of 763
2% Hotel Tax
2% HOTEL TAX 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ (572) $ (1,364) $ 14 $ 37 $ 201 $ 508 $ 817 Revenues
Transient Occupancy Tax $ 650 $ 833 $ 1,000 $ 1,167 $ 1,333 $ 1,360 $ 1,387 Total Revenues $ 650 $ 833 $ 1,000 $ 1,167 $ 1,333 $ 1,360 $ 1,387 Expenditures
Operating $ 128 $ 136 $ 139 $ 142 $ 145 $ 147 $ 150
Debt Service 467 720 838 861 882 903 927
Total Expenditures $ 596 $ 856 $ 977 $ 1,003 $ 1,027 $ 1,050 $ 1,077 Transfer In $ - $ 1,450 $ - $ - $ - $ - $ -
Transfer Out $ 1,234 $ 49 $ - $ - $ - $ - $ -
Ending Fund Balance $ (1,364) $ 14 $ 37 $ 201 $ 508 $ 817 $ 1,127 Values are shown in thousands.

The 2% Hotel Tax Fund accounts for the Measure C voter-approved 2% hotel tax revenue, the related transfers to the Capital Improvement Program Fund, and the debt service on the variable rate bonds that were utilized to partially fund the police administration facility.

Due to COVID, hotel taxes decreased significantly. $4 million was transfered out to support the construction work related to the new Fire Station 25 and to the Borel Park development. As a result, the fund balance went negative at the close of 2021-22. Through FY 2022-23 mid-year budget review, the Council approved making a one-time General Fund transfer to bring the fund back to positve. As shown on the five-year plan, staff anticipates hotel taxes will continue to recover, and the 2% Hotel Tax Fund will accumulate suffcient funds to pay for debt service and related expenses. 112
549 of 763
156 CITY OF SAN MATEO PROPOSED 2023-24 BUDGET
Capital Project
113
550 of 763

CAPITAL

IMPROVEMENT

PROJECTS
2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 63,800 $ 55,482 $ 10,059 $ 9,658 $ 4,030 $ 4,151 $ 5,644 Revenues
Taxes, Fees, and Charges $ 8,830 $ 37,208 $ 13,612 $ 21,087 $ 18,959 $ 14,419 $ 12,517 Transfers from Sewer
Fund 185,905 305,765 41,360 31,190 7,790 25,635 17,010
Other Sources 14,724 131,936 22,259 15,140 6,342 7,889 21,900 Total Revenues $ 209,459 $ 474,909 $ 77,231 $ 67,416 $ 33,091 $ 47,943 $ 51,427 Expenditures
Capital Outlay $ 218,396 $ 520,332 $ 78,032 $ 73,444 $ 33,370 $ 46,850 $ 50,665 Total Expenditures $ 218,396 $ 520,332 $ 78,032 $ 73,444 $ 33,370 $ 46,850 $ 50,665 Other Sources $ 619 $ - $ 400 $ 400 $ 400 $ 400 $ 400
Ending Fund Balance $ 55,482 $ 10,059 $ 9,658 $ 4,030 $ 4,151 $ 5,644 $ 6,806 Values are shown in thousands.

The Capital Improvement Projects Fund is where the majority of the City's capital-related financials reside. Revenues for this fund include transfers in from other funds, including the General, Gas Tax, Sewer, Parks and Recreation Revenue, Road Maintenance and Rehabilitation, and Traffic Impact Fee Funds, as well as from other tax and fee revenues. Projects in the Capital Improvement Project Fund are outlined in the CIP section of this budget document, and detailed information about revenues and expenditures related to projects can be found in that section.

Capital Improvement Projects
114
551 of 763
160 CITY OF SAN MATEO PROPOSED 2023-24 BUDGET
Enterprise
115
552 of 763
Sewer
SEWER (CASH BASIS) 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 157,611 $ 354,734 $ 185,647 $ 41,995 $ 144,630 $ 188,336 $ 191,991 Revenues
Interest Earnings $ 2,500 $ 984 $ 1,012 $ 1,000 $ 1,000 $ 1,000 $ 1,000 Operating Revenues 71,663 78,229 80,569 82,828 85,260 87,765 90,344 Bond/Loan Proceeds and
Capital Contributions 322,797 7,349 4,878 108,302 25,933 1,060 1,060 Total Revenues $ 396,961 $ 86,563 $ 86,459 $ 192,130 $ 112,193 $ 89,826 $ 92,404 Expenses
Operating and Maintenance $ 24,409 $ 25,843 $ 28,492 $ 29,827 $ 31,228 $ 32,700 $ 34,245 Capital Projects 153,896 200,000 173,562 31,190 7,790 25,635 17,010 Debt Service 21,533 28,013 28,056 28,478 29,469 27,835 27,835 Total Expenses $ 199,838 $ 253,855 $ 230,111 $ 89,495 $ 68,488 $ 86,170 $ 79,090 Transfer Out $ - $ 1,794 $ - $ - $ - $ - $ -
Ending Fund Balance $ 354,734 $ 185,647 $ 41,995 $ 144,630 $ 188,336 $ 191,991 $ 205,305 Values are shown in thousands.

The Sewer Fund consists of the sewer collection systems, the Wastewater Treatment Plant (WWTP), and disposal facilities serving the residents and businesses of San Mateo, Foster City, and portions of the neighboring communities of Hillsborough, Belmont, the Crystal Springs County Sanitation District, and certain unincorporated areas of the County. The sewer enterprise system currently serves approximately 30,000 customer accounts in the City and approximately 11,000 customer accounts in Foster City and the subregional customer communities utilizing the WWTP.

The fund's financial plan consists of two elements: (1) the 2023-24 proposed operating budget and forecast of future operational needs, and (2) estimated cash inflows and outflows for sewer capital improvement projects (CIP) during the forecast period. The capital expenses identified in this financial plan, as well as the corresponding bond/loan proceeds, are predominantly related to the execution of the Clean Water Program, which is discussed in detail in the Capital Improvement Program section of this document.

In 2018, the City Council adopted a five-year sewer rate structure for fiscal years 2018-19 through 2022-23 designed to provide sufficient revenues to fund ongoing operations and capital projections. The 50/50 volumetric/fixed fee structure was implemented. The new rate structure introduced a fixed monthly fee to better stabilized revenue and help address revenue reductions due to increased water conservation. A recent Sewer Rate Study found that the past rate increases have put the City's sewer fund in a good financial position. Additionally, the City has been successful in getting a large amount of the Clean Water Program financed with low interest rate loans. As a result, only inflationary level rate increases will be required for future years.

The financial plan will be continually monitored and this plan will be updated accordingly. 116
553 of 763
164 CITY OF SAN MATEO PROPOSED 2023-24 BUDGET
Internal Services
117
554 of 763
Vehicle and Equipment Replacement

VEHICLE AND EQUIPMENT

REPLACEMENT
2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 20,041 $ 19,156 $ 17,709 $ 11,020 $ 11,473 $ 12,086 $ 12,805 Revenues
Interest Earnings $ (379) $ 236 $ 354 $ 220 $ 229 $ 242 $ 256 Rental Charges - Vehicles 653 719 788 812 812 812 812
Rental Charges - Computers 173 214 225 232 232 232 232
Rental Charges - Radios 14 43 43 44 44 44 44
Rental Charges - Major Equipment 729 719 715 736 736 736 736 Rental Charges - Furniture 69 67 67 69 69 69 69
Other Revenues 43 - - - - - -
Total Revenues $ 1,301 $ 1,998 $ 2,191 $ 2,112 $ 2,121 $ 2,134 $ 2,148 Expenses
Vehicle Replacement $ 563 $ 2,564 $ 3,052 $ 900 $ 563 $ 1,272 $ 143 Computer Replacement 163 280 770 255 87 227 909
Radio Replacement - - 274 399 - - -
Major Equipment Replacement 285 - 4,724 407 1,248 299 1,925 Furniture Replacement 34 40 71 106 20 27 34
Other Capital Outlay & Depreciation 722 (1,044) - - - - - Total Expenses $ 1,767 $ 1,840 $ 8,891 $ 2,068 $ 1,918 $ 1,825 $ 3,011 Transfer In $ 410 $ 704 $ 410 $ 410 $ 410 $ 410 $ 410
Transfer Out $ 829 $ 2,309 $ 400 $ - $ - $ - $ -
Ending Fund Balance $ 19,156 $ 17,709 $ 11,020 $ 11,473 $ 12,086 $ 12,805 $ 12,352 Reserve for Major Building
Component Replacements $ 2,050 $ 2,460 $ 2,870 $ 3,280 $ 3,690 $ 4,100 $ 4,510 Remaining Fund Balance $ 17,106 $ 15,249 $ 8,150 $ 8,193 $ 8,396 $ 8,705 $ 7,842 Values are shown in thousands.
118
555 of 763
Vehicle and Equipment Replacement
The Vehicle and Equipment Replacement Fund accounts for charges to user departments to fund the replacement of vehicles and equipment. This includes vehicles, computers, radios, furniture, and other major equipment. Funds for future replacement are collected while vehicles and equipment are in service so that when it is time for replacement, adequate funds are available. Accumulated fund balance in this fund is estimated to be over $15 million at the end of fiscal year 2021-

22. Unlike the Fleet and Building Maintenance Fund, which is entirely an operating fund and doesn't require a significant fund balance, the Vehicle and Equipment Replacement Fund should have a significant fund balance by nature. As noted, funds are collected for future replacement while vehicles and equipment are in use so that those funds are available when the replacement is needed. Because of that, funds will accumulate over time for that replacement.

This fund collects annually from the operating departments, so it is also important that the amount of available fund balance considers this. To that end, a long-term spending plan is an important tool for managing this type of fund. Understanding spending needs over the short- and long-term and factoring in fund balance allows the City to set a collection amount that ensures funding is available when vehicles and equipment need to be replaced, but does not maintain such a large fund balance that creates an unnecessary burden on the other funds, particularly the General Fund. This five-year plan captures the long-term spending plans for each of the replacement categories, and sets future collections to ensure funding for replacements is available and fund balance is set at an appropriate level.

In 2020-21, $2,000,000 was committed as a transfer out to the Capital Projects Fund to fund the replacement of the City's enterprise resource planning (ERP) software. Additional appropriation of $872,422 was approved for this project in 2021-22, making a total of $2,872,422.

The five-year plan further captures a portion of the fund balance that is reserved for major building component replacements. Since 2017-18, the General Fund transfers $410,000 each year to this reserve and in 2022-23, the Sewer Fund will contribute $294,000. As the reserve balance reaches an appropriate level and major building replacement projects are identified, the accumulated funds will be utilized to fund the projects through a transfer to the Capital Projects Fund, and this plan will be updated accordingly.
119
556 of 763
Fleet and Building Maintenance

FLEET AND BUILDING

MAINTENANCE
2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 421 $ 755 $ 741 $ 668 $ 633 $ 639 $ 667 Revenues
Charges to Dept. - Building $ 3,462 $ 3,566 $ 3,566 $ 3,744 $ 3,932 $ 4,049 $ 4,171 Charges to Dept. - Fleet 1,929 2,035 2,279 2,393 2,513 2,588 2,666 Other Revenues 16 8 8 8 8 8 8
Total Revenues $ 5,407 $ 5,609 $ 5,852 $ 6,145 $ 6,452 $ 6,645 $ 6,844 Expenses
Personnel $ 1,687 $ 1,584 $ 2,043 $ 2,105 $ 2,168 $ 2,211 $ 2,255 Operating 3,353 4,006 3,849 4,041 4,243 4,370 4,501
Capital Outlay 32 33 33 34 35 35 36
Total Expenses $ 5,073 $ 5,623 $ 5,926 $ 6,180 $ 6,446 $ 6,617 $ 6,793 Ending Fund Balance $ 755 $ 741 $ 668 $ 633 $ 639 $ 667 $ 718 Values are shown in thousands.

The Fleet and Building Maintenance Fund accounts for charges to user departments and the expenses related to the maintenance of City vehicles and buildings. This fund is primarily operational in nature, with vehicle and equipment replacement expenses being housed in a separate internal service fund. As such, charges to user departments, over time, should be set fairly close to expected expenses, as there is not a need to keep a significant amount of fund balance in this fund. With expenses outpacing revenues in the past few years, collections were set to increase significantly (starting from 2020-21) to ensure the fund remains healthy and with an appropriate level of reserves. 120
557 of 763
Benefits
BENEFITS 2021-22

ACTUALS
2022-23

ESTIMATED
2023-24

PROPOSED
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 116 $ (266) $ (125) $ 241 $ 523 $ 799 $ 1,068 Revenues
Internal Service Charge -
Pension $ 24,024 $ 26,196 $ 27,416 $ 29,307 $ 29,847 $ 31,327 $ 32,541 Internal Service Charge -
Social Security/Medicare 3,242 3,212 3,723 3,797 3,873 3,950 4,029 Internal Service Charge -
Healthcare 8,510 8,461 9,397 9,942 10,562 11,221 11,855 Internal Service Charge -
Severance Trust 1,214 1,224 1,273 1,298 1,324 1,350 1,377 Internal Service Charge -
Other 2,449 2,652 2,815 2,909 2,971 3,034 3,098
Total Revenues $ 39,439 $ 41,746 $ 44,623 $ 47,253 $ 48,577 $ 50,882 $ 52,900 Expenses
Pension $ 24,067 $ 26,200 $ 27,416 $ 29,307 $ 29,847 $ 31,327 $ 32,541 Social Security/Medicare 3,242 3,212 3,723 3,797 3,873 3,950 4,029 Healthcare 8,914 8,527 9,214 9,838 10,457 11,116 11,751 Severance Trust 1,227 1,100 1,144 1,167 1,190 1,214 1,238 Other 2,371 2,567 2,761 2,863 2,934 3,006 3,079
Total Expenses $ 39,822 $ 41,605 $ 44,257 $ 46,971 $ 48,301 $ 50,613 $ 52,638 Ending Fund Balance $ (266) $ (125) $ 241 $ 523 $ 799 $ 1,068 $ 1,330 Values are shown in thousands.
121
558 of 763
Benefits
The Benefits Fund accounts for the collection of funds from operating departments to cover the cost of employee benefits.

The expenses covered by this fund include pension, social security/medicare, retiree healthcare, the City's payment for medical premiums for active employees, funding for the severance trust (to pay for the cashout of unused vacation to employees who retire or otherwise leave the City), as well as a few other benefit costs, such as life insurance and long-term disability insurance. In some cases, the cost of providing these benefits is known and collections can be set accordingly.

For example, the normal cost of pensions is set as a percentage of pay, so collections can be set based on that percentage of pay. In other cases, such as for the funding of the severance trust, the cost is an estimate based on historical actuals, but will fluctuate annually based on different factors. Thus, to accommodate the fluctuation of expenses like those related to the severance trust, the fund should maintain some level of fund balance. To that end, collections for the various components of this fund have been set to collect costs to fund the programs adequately while maintaining a level of fund balance that allows for the year-over-year fluctuations without requiring a transfer from the General Fund.

The largest expense category in this fund is related to pension expenses. As discussed in detail in the Budget Overview section of the budget document, pension expenses are expected to increase significantly over the next five to seven years due to CalPERS' investment losses from FY 2021-22. These increases will continue to put pressure on the operating funds, as a larger and larger percentage of the budget will be required to cover pension cost increases.

After the transfer of the City's fire operations to SMC Fire in 2018-19, with the exception of the Bureau of Fire Protection and Life Safety (Bureau), what remains as the City's responsibility is the former fire department employees' unfunded pension liability and retiree health benefits, as those costs are attributable to years of service to the City. These legacy costs are transferred from the General Fund and administered through this fund. Bureau activities are designed to be full cost recovery, so with the transition to SMC Fire, legacy pension costs for former Bureau personnel are the responsibility of SMC Fire.

Fund balance temporarily went negative primarily due to actual expenses for health insurance and retiree medical exceeded the budget. Staff has adjusted the collection rates for the out years in the the five-year plan. The long-term forecast has the fund building back up its fund balance gradually. Actual expenses will be analyzed over time and annual collections will be adjusted accordingly.
122
559 of 763
Dental
DENTAL 2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 791 $ 1,078 $ 1,041 $ 1,018 $ 980 $ 925 $ 852 Revenues
Internal Service Charges $ 802 $ 733 $ 785 $ 809 $ 833 $ 858 $ 884 Total Revenues $ 802 $ 733 $ 785 $ 809 $ 833 $ 858 $ 884 Expenses
Insurance Premiums $ 514 $ 770 $ 808 $ 847 $ 888 $ 931 $ 976 Total Expenses $ 514 $ 770 $ 808 $ 847 $ 888 $ 931 $ 976 Ending Fund Balance $ 1,078 $ 1,041 $ 1,018 $ 980 $ 925 $ 852 $ 760 Values are shown in thousands.

The Dental Self-Insurance Fund accounts for the City's self-insurance activities related to the dental plan the City provides its employees. Collections for this fund are made by charging departments a flat amount for each employee. Expenses in this fund consist almost entirely of the premiums the City pays on behalf of its employees for dental coverage. As actual expenses are analyzed over time, annual collections amounts will be adjusted accordingly. 123
560 of 763
Workers' Compensation Insurance

WORKERS'

COMPENSATION

INSURANCE
2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ (183) $ 5,130 $ 4,912 $ 4,698 $ 4,814 $ 5,010 $ 5,287 Revenues
Interest Earnings $ (430) $ 268 $ 306 $ 306 $ 306 $ 306 $ 306 Internal Service Charges 4,501 4,070 3,804 3,918 4,036 4,157 4,282 Total Revenues $ 4,071 $ 4,338 $ 4,110 $ 4,224 $ 4,342 $ 4,463 $ 4,588 Expenses
Personnel $ 409 $ 379 $ 397 $ 407 $ 415 $ 423 $ 431
Operating 862 852 972 1,001 1,031 1,062 1,094
Claims 1,225 1,500 2,500 2,500 2,500 2,500 2,500
Acturial Adjustment (3,739) 324 455 200 200 200 200
Total Expenses $ (1,242) $ 3,055 $ 4,325 $ 4,108 $ 4,146 $ 4,185 $ 4,226 Transfer Out $ - $ 1,500 $ - $ - $ - $ - $ -
Ending Fund Balance $ 5,130 $ 4,912 $ 4,698 $ 4,814 $ 5,010 $ 5,287 $ 5,650 Values are shown in thousands.

The Workers' Compensation Insurance Fund accounts for all workers' compensation self-insurance activities. This includes the cost of claims, insurance, legal and other professional services, and program administration. The total cost of claims constitutes the largest expense in this fund. Workers' compensation expenses can fluctuate significantly year-over-year based on the total cost of claims, which includes any adjustments to the total liability of the fund due to actuariallydetermined changes in experience. Over the past 10 years, total expenses (excluding actuarial accounting adjustment) have been as high as $4.3 million and as low as $1.6 million.

Funding for the Workers' Compensation Insurance Fund comes from collections from all of the operations across all funds that include personnel. Departments are charged a percentage of pay for each employee, and the amount of the charge depends on the type of employee. Positions that historically have higher workers' compensation experience, such as police employees, are charged a higher rate than positions with historically lower experience. Collections from departments are set in an effort to ensure adequate funding for this program, including having funds set aside in reserve to cover years where claims expenses were unusually high.

In 2019-20, the fund received a $3.5 million transfer from the General Fund to prevent the fund from going further to a negative balance. However, based on the latest actuarial study, the City's workers' compensation liabilities for 2021-22 were adjusted down by $2 million. As such, the fund will only need to keep $2 million from the General Fund transfer. The excess $1.5 million will be transferred out to the Comprehensive Liability Fund.

With the transfer of the City's fire operations to San Mateo Consolidated Fire Department (SMC Fire), with the exception of former Fire personnel that served in the Bureau of Fire Protection and Life Safety (Bureau), as it is a cost recovery program, claims that were incurred while the fire employees were City employees will remain in this fund and as the City's responsiblility. While SMC Fire has paid the City for the present value of former Bureau legacy workers' compensation, which reflects open claims and claims that have been closed since SMC Fire commencement of operations, as updated actuarial studies are performed in subsequent fiscal years, the City will prepare an annual analysis to 1) compare actuarial assumptions to the current actuarial study, including the discount rate or cost of healthcare, 2) evaluate new claims if the City is assigned proportional responsiblity. The City will then compare the amount of legacy costs paid by SMC Fire (from its Bureau) to the City with the update workers' compensation liability and resume collecting additional costs as appropriate. 124
561 of 763
Comprehensive Liability

COMPREHENSIVE

LIABILITY
2021-22

ACTUALS
2022-23

ESTIMATED

ACTUALS
2023-24

PROPOSED
BUDGET
2024-25

FORECAST
2025-26

FORECAST
2026-27

FORECAST
2027-28

FORECAST
Beginning Fund Balance $ 589 $ (1,517) $ 867 $ 231 $ (363) $ (899) $ (1,354) Revenues
Interfund Charges $ 1,610 $ 2,237 $ 2,793 $ 3,473 $ 4,322 $ 5,384 $ 6,710 Investment/Interest
Earnings (14) 28 32 32 32 32 32
Miscellaneous Revenues 33 - - - - - -
Total Revenues $ 1,629 $ 2,265 $ 2,825 $ 3,505 $ 4,354 $ 5,416 $ 6,742 Expenses
Personnel $ 135 $ 147 $ 142 $ 145 $ 148 $ 151 $ 154
Insurance Premiums 1,400 1,784 2,430 3,038 3,798 4,748 5,935 Claims 907 150 250 258 266 274 282
Attorney's Fees 312 612 430 443 456 470 484
Other Costs 981 188 209 215 222 228 235
Total Expenses $ 3,735 $ 2,881 $ 3,461 $ 4,099 $ 4,889 $ 5,871 $ 7,090 Transfer In $ - $ 3,000 $ - $ - $ - $ - $ -
Ending Fund Balance $ (1,517) $ 867 $ 231 $ (363) $ (899) $ (1,354) $ (1,702) Values are shown in thousands.

The Comprehensive Liability Insurance Fund accounts for the City's general liability program. Expenses in this fund primarily consist of insurance premiums, the cost of claims, legal and other professional services, and program administration.

The 2023-24 budget totals $3.5 million primarily due to insurance premium increases. The City's general liability insurance premium went from $0.6 million in 2017-18 to the projected $2.4 million in 2023-24, a 400% increase over six years, averaging 25% increase each year. If this trend continues, the insurance premium will reach $5.9 million by 2027-28, pushing the total program expenditures to $7 million annually. Even though staff has incorporated a 25% annual increase to interfund charges (cost recovery revenues), more is needed to cover the costs. As shown in the five-year forecast, the fund is projected to have negative fund balance starting 2024-25, which will grow negative $1.7 million by 2027-28.

The California public entity insurance marketplace has been changing dramatically in recent years, and public agencies throughout the state are seeing a significant increase in plaintiff demands and high dollar liability claims. Areas of concern include wildfires, dangerous conditions, road design, intersections, sidewalks, and public safety services. As a result, insurance premiums are anticipated to increase considerably. However, if the cost increase continues in the current rate, the program will no longer be financially sustainable. The City Attorney will discuss the issue with the City Council. 125
562 of 763
FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM 177
Five-Year Capital
Improvement Program
126
563 of 763
Summary
As part of the Capital Improvement Program (CIP) budget process, departments develop project requests that capture the five-year capital project needs. Total project costs are developed, and funding sources are identified where possible. For capital projects that have been completed, operating costs are included in the respective operating budgets. New and ongoing capital projects are prioritized and recommended for funding based on a review and analysis by a committee made up of the City Manager, Assistant City Manager, Public Works Director, Parks and Recreation Director, and Finance Director.

Sections 65400, 65401, and 65403 of the California Planning and Land Use Government Code require the City’s governing body, planning, or public works commission to review public works projects proposed for the fiscal year to determine conformity with the adopted General Plan. The City Council reviews the Capital Improvement Program Budget at their meetings in June each year, with the option to hold study sessions if needed. During these meetings, the Council reviews the City’s five-year CIP recommendations, which are listed in the schedules that follow this narrative, to determine if the proposed capital projects are in conformance with the goals, policies, and actions contained within the General Plan.

The five-year CIP totals $284.4 million, with $78.4 million for 2023-24. Immediately following this narrative is a list of all the capital projects funded in the 2023-28 CIP (“Funded Projects”). In addition, the table below summarizes the five-year CIP by physical type of the capital projects.

CAPITAL PROJECTS
2023-24

PROPOSED
BUDGET
2024-25
PLAN
2025-26
PLAN
2026-27
PLAN
2027-28
PLAN

FIVE-YEAR
TOTAL
Bikeway/Pedestrian $ 3,089,353 $ 2,460,000 $ 2,064,950 $ 5,190,000 $ 1,000,000 $ 13,804,303 Bridges (15,140) 10,580,000 2,220,000 100,000 100,000 12,984,860 Buildings 6,109,000 2,540,000 1,335,000 2,135,000 20,135,000 32,254,000 Miscellaneous 3,403,971 1,063,500 265,000 - - 4,732,471 Parks 4,835,000 12,590,000 9,420,000 4,215,000 2,215,000 33,275,000 Sanitary Sewer and
Wastewater Management
(Clean Water Program)
41,360,000 31,190,000 7,790,000 25,635,000 17,010,000 122,985,000 Storm Drains 3,150,000 1,350,000 1,300,000 1,300,000 1,300,000 8,400,000 Street Lights 4,973,885 - - - - 4,973,885
Streets 7,475,210 8,100,000 8,250,000 8,250,000 8,880,000 40,955,210 Traffic 1,400,747 3,970,000 1,125,000 425,000 425,000 7,345,747 Other City Projects 2,650,000 - - - - 2,650,000
Total 5-year CIP $ 78,432,026 $ 73,843,500 $ 33,769,950 $ 47,250,000 $ 51,065,000 $ 284,360,476 Of the total $284.4 million, $123.0 million (43% of the total five-year CIP) is for Clean Water Program capital projects, all of which are funded by sewer service charges, bond and loan proceeds, and capital payments from the sewer system’s subregional customers and the City of Foster City. More details of this significant infrastructure investment are provided in the following section. Street rehabilitation and reconstruction projects total $41.0 million (14% of the total five-year CIP), while parks-related projects amount to $33.3 million (12% of the total).

San Mateo City CouncilJune 5, 2023

San Mateo City Council
June 5, 2023