Agenda packet, regular meeting — San Mateo City Council, June 20, 2023 (part 1 of 3)

CITY OF SAN MATEO
City Council Regular Meeting
June 20, 2023
7:00 PM
City Hall Council Chamber
Entrance is on O’Farrell Street

COUNCIL MEMBERS
Amourence Lee, Mayor
Lisa Diaz Nash, Deputy Mayor
Rich Hedges
Adam Loraine
Rob Newsom Jr.

AGENDA
THIS MEETING CAN BE ATTENDED IN PERSON OR REMOTE BY JOINING ZOOM – SEE CODES BELOW.

PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND REMOTELY.

SEE END OF AGENDA FOR OPTIONS AND INSTRUCTIONS ON HOW TO PARTICIPATE IN THE MEETING.

To join via Zoom – click here: June 20, 2023
To join via telephone: (408) 638-0968
Webinar ID: 874 2744 4035 Passcode: 152837
The City Council meeting will conclude by 11:00 p.m. unless otherwise extended by council vote.

Any unheard items will automatically move forward to the next regular meeting.

CALL TO ORDER
Pledge of Allegiance
Roll Call

CEREMONIAL

1. 2023 San Mateo – Toyonaka Sister Cities Baseball Team – Recognition

2. Mosquito Control Awareness Week - Proclamation

3. Recognizing City Manager Drew Corbett – Commendatory Resolution

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the Council to be routine and will be enacted by one motion without discussion. If discussion is desired, that item may be removed and considered separately.

4. City Council Meeting Minutes - Approval
Approve the minutes of the special and regular meetings of June 5, 2023.

CEQA: This minutes approval 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).)

5. Records Management Policy – Amendment
Adopt a Resolution to amend the City’s Records Management Policy to generally provide for the automatic deletion of emails after three (3) years with specified exceptions, amongst other changes, with an implementation date of October 1, 2023, and delegate authority to the City Manager to make future minor conforming changes to the policy.
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CEQA: 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).)

6. Senior Transportation "Get Around" Program – Agreement Adopt a Resolution to approve an alternative purchasing procedure for an agreement with Serra Yellow Cab of Daly City Inc. for the Senior Transportation “Get Around” program up to the amount of $150,000 for fiscal year 2023-24, with an option for the City to extend the agreement for fiscal year 2024-25 for up to $150,000 for a potential contract total of $300,000; and authorize the Director of Parks and Recreation to execute the agreement in substantially the form presented.

CEQA: This is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)

7. Parks and Recreation Department – Classification Updates Adopt a Resolution to approve: 1) the elimination of four vacant positions – one Community Services Manager, one Community Services Supervisor and two Lead Teacher positions; and 2) approve the addition of four Recreation Coordinator positions and one new Senior Program Assistant position.

CEQA: This staff restructuring 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).)

8. Parks and Recreation Bulk Printing and Mailing – Agreement Approve a one-year bulk printing and mailing services agreement with Folger Graphics for an amount not to exceed $150,000; authorize the Parks and Recreation Director to exercise up to two 1-year extensions for up to $150,000 each year, for a total not to exceed amount of $450,000 over three years; and authorize the Parks and Recreation Director to execute the agreement in substantially the form presented.

CEQA: This agreement 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).)

9. Fiscal Year 2023-24 General Liability and Property Insurance – Purchase Authorization Authorize a staff committee comprised of the City Manager, the Finance Director, and the City Attorney to select the most cost-effective program to insure the City's general liability and property risks and authorize the City Attorney to execute all required documents to purchase the selected insurance for fiscal year 2023-24.

CEQA: This item is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)

10. Downtown Parking Equipment Network Hosting and Materials – Amendment Approve Amendment No. 2 to the agreement with IPS Group, Inc. for parking equipment network hosting and materials to increase the agreement amount by $275,000 for a revised agreement total of $675,000 and extend the agreement for an additional three-year term ending June 30, 2026; and authorize the Public Works Director to execute the amendment in substantially the form presented.

CEQA: This contract 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).)
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11. Hillsdale Caltrain Commuter Shuttle – Agreement
Approve a two-year agreement with Commute.org (Peninsula Traffic Congestion Relief Alliance) for the Hillsdale Caltrain Commuter Shuttle in the amount of $83,132 and authorize the Public Works Director to execute the agreement in substantially the form presented.

CEQA: Approval of this agreement 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).)

12. Construction Management Services for the Clean Water Program – Amendments Approve amendments to each of the professional services agreements with Tanner Pacific, Inc. and Townsend Management, Inc. to continue providing as-needed construction management services for the Clean Water Program wastewater infrastructure improvement projects; increase the agreement amounts by $2,000,000 each for new total agreement amounts not to exceed $5,000,000 for each firm; and authorize the Public Works Director to execute the amendments in substantially the form presented and to approve future amendments within the revised budget.

CEQA: The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). The PEIR was certified by Council on June 6, 2016. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for implementation of the Clean Water Program. The City prepared Addenda to the Final PEIR that were approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the project evaluated in the PEIR and Addendum.

13. Wastewater Treatment Plant: Grit, Rag, and Scum Hauling and Disposal – Bid Rejection and Contract Change Order
Adopt a Resolution to reject all bids received for the fiscal year 2023-24 Wastewater Treatment Plant grit, rag, and scum hauling and disposal services; approve Contract Change Order No. 1 with Allied Waste of North America, LLC dba Allied Waste Services of Daly City/Republic Services of Daly City for these services to extend the contract term to September 30, 2023 and increase the contract amount by $41,000, for a new total contract amount of $163,760; and authorize the Public Works Director to execute the contract change order in substantially the form presented.

CEQA: This resolution and contract change order is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)

14. Citywide Street Reconstruction Phase 3 Project - Amendment Approve Amendment No. 5 to the agreement with Wilsey Ham for engineering services during construction in an amount not to exceed $45,000 for a new agreement total of $573,874; and authorize the Public Works Director to execute the amendment in substantially the form presented.

CEQA: This project is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)

15. Wastewater Treatment Plant Immediate Action Projects, Package II – Appropriation and Amendment 3 of 536
Adopt a Resolution to appropriate $75,000 from Fund 72 reserves to the Wastewater Treatment Plant Immediate Action Projects, Package II project (IAP-II); approve Amendment No. 10 to the agreement with Stantec Consulting Services, Inc. to provide professional design and engineering services during construction for IAP-II; increase the contract value by $75,000, for a revised total agreement amount not to exceed $1,727,403.46; extend the term through December 31, 2023; and authorize the Public Works Director to execute Amendment No. 10 in substantially the form presented and approve future amendments within the approved amount.

CEQA: The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). Council on June 6, 2016, certified the PEIR. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for the implementation of the Clean Water Program. The City prepared Addenda to the Final PEIR that was approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the Project evaluated in the PEIR and Addendum.

16. Uniform Maintenance Services – Contract Change Order Adopt a Resolution to approve an alternative purchasing procedure and approve Change Order No. 2 to the City’s agreement with Cintas Inc. for the purpose of uniform maintenance services in the amount of $20,000.01, for a new not to exceed total of $120,000.00 for fiscal year 2022-23; and authorize the City Manager to execute Change Order No. 2 in substantially the form presented.

CEQA: This change order 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).)

17. Downtown Business Improvement Area – Annual Report 2022-23 Accept the fiscal year 2022-23 Downtown San Mateo Association Annual Report.

CEQA:This report 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).)

18. Worker Resource Center Operations – Agreement
Approve an agreement with Samaritan House for operations of the Worker Resource Center for the period of from July 1, 2023 through June 30, 2025 in the amount of $195,000 per year and authorize City Manager to execute the agreement in substantially the form presented.

19. Community Development Block Grant Samaritan House – Appropriation Adopt a Resolution to authorize the appropriation of funds in the amount of $56,031.02 from the Community Development Block Grant Fund to the Community Development Block Grant Community Facilities project to complete a contract with Samaritan House for public facilities upgrades.

CEQA: This budget appropriation 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).)

20. On-Call Professional Planning Services - Agreement
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Approve an agreement with Good City Company for on-call professional technical planning services for a period of five years from July 1, 2023 through June 30, 2028 in the amount not to exceed $750,000 and authorize the Community Development Director to execute the agreement in substantially the form presented.

CEQA: 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).)

21. Sewer Service Charges for Fiscal Years 2023-24 to 2027-28 – Ordinance Adoption Adopt 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.” CEQA: 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.

PUBLIC COMMENT
Members of the public wishing to comment on any item not appearing on the agenda may address the City Council at this time. State law prevents Council from taking action on any matter not on the agenda; your comments may be referred to staff for follow up.

Public comment is limited to a total of 15 minutes; however, an opportunity for additional public comment may be provided later in the agenda.

PUBLIC HEARING
City Council action on the following public hearing(s) represents a final decision concluding all administrative proceedings. Judicial review may be had only if a petition is filed with the Court not later than the 90th day following the date the decision is made.

Judicial review of environmental determinations may be subject to a time period for litigation as short as 30 days following the date the decision is made.

22. Fiscal Year 2023-24 Operating and Capital Budgets and Gann Appropriations Limit Adoption and Fiscal Years 2023-28 Capital Improvement Program – Approval
Adopt Resolutions to approve the fiscal year 2023-24 operating and capital budgets, the 2023-24 position budget, the fiscal year 2023-24 Gann appropriations limit, and the fiscal years 2023-28 Capital Improvement Program.

CEQA: This budget adoption 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).)

NEW BUSINESS

23. Racial Equity Art Project Artist and Design Selection – Approval Approve the Civic Arts Committee’s recommended artist Rafael Blanco and his design “Cultural Pattern” for the Racial Equity Art Project and delegate the Civic Arts Committee to work with the artist to revise and approve the final design.

CEQA: This Racial Equity Art Project is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)

24. COVID-19 Small Business Grant – Budget Appropriation and Grant Agreement 5 of 536
Adopt a Resolution to approve a supplemental budget appropriation in the amount of $100,000 for a grant agreement with the County of San Mateo to administer a COVID-19 Small Business Grant Program and authorize the City Manager to execute the grant agreement in substantially the form presented.

CEQA: This City Council action is not a project subject to CEQA, because it is a governmental 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))

25. City Manager – Appointment
Adopt a Resolution to appoint Alex Khojikian as City Manager, establishing his initial compensation, and authorize the Mayor to execute the employment agreement.

CEQA: This activity 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).)

REPORTS AND ANNOUNCEMENTS
City Manager, City Attorney and Council Members report on their various assignments and liaison roles and Council requests for scheduling future items.

ADJOURNMENT
----------------------------------------------------------------------------------------------------------------------------- AGENDAS: Agendas and material are posted on the City’s website on the Friday preceding each Council Meeting and can be viewed on the City's website at www.cityofsanmateo.org . Any supplemental material distributed to the Council after the posting of the agenda will be made part of the official record.

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WATCHING A MEETING ON A COMPUTER: There are three ways to stream. 1) Public Meeting Portal www.cityofsanmateo.org/publicmeetings 2) City YouTube channel and stream it on YouTube: http://youtube.com/CityofSanMateo 3) Watch TV live stream: https://www.cityofsanmateo.org/193/Channel-San-Mateo-Live-Stream

PUBLIC COMMENTS/REQUEST TO SPEAK
Prior to the Meeting
Send comments to: [email protected] until 4 p.m. the day of the meeting.

During the meeting
By Zoom: Click the link at the top of the agenda and you’ll be added to the meeting. All attendees are muted by default. When the item of interest is open for consideration, select the “Raise Your Hand” icon and you will be called on at the appropriate time.

By telephone: Call (408) 638-0968 and enter the conference ID found at the top of the meeting agenda. When the item of interest is open for consideration, select *9 to raise your hand. When called upon, press *6 to unmute, state your name and provide your comments.

In Person: At the meeting complete a “Request to Speak” form, submit a request at the speaker kiosk or scan the QR code.

ACCESSIBILITY: In compliance with the Americans with Disabilities Act, those with disabilities requiring special accommodations to participate in this meeting may contact the City Clerk’s Office at (650) 522-7040 or [email protected] . Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. 6 of 536

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: 4 Section Name: CONSENT CALENDAR Account Number: 10-1111 File ID: 23-7654 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: June 20, 2023
SUBJECT:

City Council Meeting Minutes - Approval
RECOMMENDATION:

Approve the minutes of the special and regular meetings of June 5, 2023.

ENVIRONMENTAL DETERMINATION:

This minutes approval 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 - Minutes 2023-06-05 Special
Att 2 - Minutes 2023-06-05 Regular

STAFF CONTACT
Patrice Olds, City Clerk
[email protected]
(650) 522-7042
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City Council Special Meeting Minutes – 6/5/2023 Page 1

COUNCIL MEMBERS
Amourence Lee, Mayor
Lisa Diaz Nash, Deputy Mayor
Rich Hedges
Adam Loraine
Rob Newsom Jr.

CITY OF SAN MATEO
Special Meeting Minutes
City Council
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
June 5, 2023
City Hall Council Chambers 5:30 PM
Special Meeting
CALL TO ORDER at 5:30 p.m.

Roll Call

Present: Deputy Mayor Diaz Nash, Council Members: Hedges, Loraine, and Newsom

Absent: Mayor Lee – due to family illness

STUDY SESSION

1. Stormwater Funding – Survey Findings
Public Works Director Azalea Mitch provided a presentation and consultants Jerry Bradshaw and Chris Coulter were available to provide additional comments on the Stormwater system overview, funding analysis, and survey results. A dedicated stormwater funding source is needed for Marina Lagoon management, Capital Improvement, operations, and maintenance. Fee proposals range from $8 to $18.87 per property. Council asked questions of staff.

Public Comment – Jerry Brozell suggested ideas for water conservation. Mareva Godfrey supports the $18 fee.

Michael Ragan stated that for at least 42 years the flooding issue has been kicked down the road. Drew inquired about the fee applying to multi-family homes.

Council provided comments and deliberated on the dollar amount. After much discussion and additional questions to the consultants, the consensus of Council was for the $8 fee per property monthly fee.

ADJOURNMENT –The meeting adjourned at 6:48 p.m.

APPROVED BY: SUBMITTED BY:

Lisa Diaz Nash, Deputy Mayor Patrice Olds, City Clerk
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City Council Regular Meeting Minutes – 6/5/2023 Page 1

COUNCIL MEMBERS
Amourence Lee, Mayor
Lisa Diaz Nash, Deputy Mayor
Rich Hedges
Adam Loraine
Rob Newsom Jr.

CITY OF SAN MATEO
Regular Meeting Minutes
City Council Meeting
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
June 5, 2023
City Hall Council Chambers 7:00 PM
Regular Meeting
CALL TO ORDER at 7:00 p.m.

Pledge of Allegiance
Roll Call

Present: Deputy Mayor Diaz Nash, Council Members: Hedges, Loraine and Newsom

Absent: Mayor Lee due to family illness

CEREMONIAL

1. Immigrant Heritage Month – Proclamation - Megan Gosch, County of San Mateo Immigrant Services, received the proclamation.

2. Pride Month – Proclamation - Craig Weisner, County of San Mateo LGBTQ Commission, received the proclamation.

CONSENT CALENDAR
The following items, 3 through 4 and 6 through 26, were considered to be routine by the City Council. Items 5, 27, and 28 were removed to be considered separately. After the titles of the items were read by the Deputy City Clerk, the public was invited to comment and there were no speakers. Motion passed 4-0.

Moved: Hedges, Seconded: Newsom
Ayes: Diaz Nash, Hedges, Loraine, and Newsom
Noes: None

3. City Council Meeting Minutes - Approval
Approve the minutes of the special and regular meetings of May 15, 2023.

4. City Council 2023 Regular Meeting Calendar Update – Adoption Adopt the updated City Council regular meeting schedule to re-establish the regular City Council meeting originally scheduled for October 2, 2023.

6. Summer Camp Bus Transportation – Agreement
Approve an agreement with First Student, Inc. to provide bus transportation services for City of San Mateo summer camps from June 12, 2023 through August 11, 2023 for a contract amount of $118,272; establish a contingency reserve of 10%; and authorize the Director of Parks and Recreation to execute the agreement in substantially the form presented.
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7. Fiscal Year 2023-24 General Obligation Bond – Tax Rate Levy Adopt a Resolution to levy the property tax rate of $0.0057 per $100 of assessed value, equating to $5.70 per $100,000 assessed value), for the voter-approved General Obligation Bond annual debt service payment.

Enactment: Resolution No. 49 (2023)

8. Wastewater Treatment Plant Supply of Sodium Bisulfite – Change Order Approve Contract Change Order No. 1 with Univar Solutions USA, Inc., to increase the supply of sodium bisulfite by 20,000 gallons, for an amount not to exceed $32,340, for a total agreement amount of $355,734; and authorize the Public Works Director to execute the change order in substantially the form presented.

9. Wastewater Treatment Plant Supply of Sodium Hypochlorite – Change Order Approve Contract Change Order No. 1 with Univar USA, Inc., to increase the supply of sodium hypochlorite by 20,000 gallons for an amount not to exceed $32,704, for a total agreement amount of $523,254; and authorize the Public Works Director to execute the change order in substantially the form presented.

10. Wastewater Treatment Plant Supply of Chemicals – Contracts Award chemical supply contracts to: 1) Hasa, Inc. to supply sodium hypochlorite in the amount of $957,027; 2) Univar Solutions USA, Inc. to supply sodium bisulfite in the amount of $404,517; and 3) Kemira Water Solutions, Inc. for the supply of ferric chloride in the amount of $312,212; establish 10% contingency reserves for each contract; and authorize the Public Works Director to execute the contracts in substantially the form presented and issue change orders within the contingency amounts.

11. Wastewater Treatment Plant Supply of Liquid Emulsion Polymer – Contract Adopt a Resolution to approve an alternative purchasing procedure to award a contract to SNF Polydyne for the supply of liquid emulsion polymer in the amount of $405,613; establish a 10% contingency reserve; and authorize the Public Works Director to execute the contract in substantially the form presented and issue change orders within the contingency amount.

Enactment: Resolution No. 50 (2023)

12. Wastewater Treatment Plant Immediate Action Projects, Package III – Amendment Approve Amendment No. 5 to the professional services agreement with HDR Engineering, Inc. to provide engineering services during construction for the Wastewater Treatment Plant Immediate Action Projects Package III Project and increase the budget by $422,000, for a total amount not to exceed $1,521,495; increase the contingency reserve by an amount of $42,000; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue change orders within the contingency amount.

13. Hillsdale Caltrain Station Bicycle Access Gap Closure Project – Amendment Adopt a Resolution to authorize an appropriation in the amount of $93,948 of Measure A funds to the Hillsdale Caltrain Station Bicycle Access Gap Closure project; amend the agreement with Bellecci & Associates, Inc. for the Hillsdale Caltrain Station Bicycle Access Gap Closure project to increase the agreement amount by $93,948 for a new total not to exceed $246,948; increase the contingency amount by $88,255 for new contingency total of $98,255; and authorize the Public Works Director to execute the amendment in substantially the form presented and issue change orders within the contingency amount.

Enactment: Resolution No. 51 (2023)
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14. California Transportation Commission Local Streets and Roads – Project List Fiscal Year 2023-24 Adopt a Resolution to submit a list of projects proposed to be funded with the Road Repair and Rehabilitation Account, Senate Bill 1 funding, to the California Transportation Commission for fiscal year 2023-24.

Enactment: Resolution No. 52 (2023)

15. On-Call Professional Consultant Services – Amendments Approve Amendment No. 2 to extend the term of individual on-call professional consultant services agreements for no additional cost with Wilsey Ham, HDR Engineering, Inc., and Bellecci & Associates until December 31, 2025; and authorize the Public Works Director to execute future no-cost amendments.

16. Citywide Street Reconstruction Phase 4 – Agreement and Budget Transfer Adopt a Resolution to authorize a budget transfer from Citywide Street Reconstruction Package 1 to Citywide Street Reconstruction Package 3 in the amount of $410,000; affirm a requested bid relief from Ghilotti Bros, Inc.; approve an agreement with McGuire and Hester for the Citywide Street Reconstruction Phase 4 Project in the amount of $6,259,358; establish a contingency reserve in the amount of $630,000; and authorize the Public Works Director to execute the agreement in substantially the form presented and issue change orders within the contingency amount.

Enactment: Resolution No. 53 (2023)

17. Citywide Street Rehabilitation Package 5B – Agreement Approve an agreement with MNS Engineers, Inc. for design services in an amount not to exceed $585,000; establish a contingency reserve of $58,000; and authorize the Public Works Director to execute the agreement in substantially the form presented and approve amendments within the contingency amount.

18. Bermuda Drive Bridge Replacement Project Pacific Gas & Electric – Grant of Easement Adopt a Resolution to grant an Easement Deed to Pacific Gas & Electric and authorize the City Manager to execute the Easement Deed.

Enactment: Resolution No. 54 (2023)

19. State of California Department of Transportation Delegated Maintenance Agreement – Amendment 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.

Enactment: Resolution No. 55 (2023)

20. Fleet Maintenance Services – Amendment
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.
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21. Workers' Compensation Program Third Party Administration – Agreement 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.

22. California State Library Parks Pass Grant – Budget Appropriation 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.

Enactment: Resolution No. 56 (2023)

23. California Library Literacy Services – Budget Appropriation 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.

Enactment: Resolution No. 57 (2023)

24. Minimum Wage Enforcement Services – Notice to Extend Agreement 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.

25. San Francisco Peninsula Tourism Marketing District (SFPTMD) Formation – Approval 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.

Enactment: Resolution No. 58 (2023)

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

Enactment: Resolution No. 59 (2023)

END OF CONSENT CALENDAR

REMOVED FROM CONSENT CALENDAR

5. Senior Transportation "Get Around" Program – Agreement Council Member Hedges pulled this item to provide comments on the Get Around Ride program stating disabled under the age of 65 should be included in the program.

Public Comment – Rick Bonilla supports Rich Hedges suggestion. Mike said he supports this item but believes it is underfunded.

Motion to Approve an agreement with Serra Yellow Cab of Daly City Inc. for the Senior Transportation “Get Around” program up to the amount of $150,000 for fiscal year 2023-24, with an option for the City to extend the agreement for fiscal year 2024-2025 for up to $150,000 for a potential contract total of $300,000; and authorize the Director of Parks and Recreation to execute the agreement in substantially the form presented. Motion passed 4-0. 12 of 536
City Council Regular Meeting Minutes – 6/5/2023 Page 5
Moved: Hedges, Seconded: Newsom
Ayes: Diaz Nash, Hedges, Loraine, and Newsom
Noes: None

27. Letter of Apology – Council Approval
Council Member Loraine pulled this item and proposed to continue this item to the next Council meeting to rework the language as upon consideration he felt it may be too punitive.

Public Comment – Tom Lease expressed this letter should be coming from Mayor Lee and not a Council subcommittee. Cliff Robbins stated this letter is factually accurate and is not punitive; it is a long necessary and needed apology and it should be coming from the Mayor. Nicole Fernandez stated the letter is not punitive; and is disappointed for the request to soften the language and she requested the Council act tonight. Seema Patel supports issuing a broader apology noting the actions of all of the Council led to the actions on December 12, 2023. Owen Day remarked that Nash’s and Newsom’s actions were also wrong as well as Lee; apology letter necessary as the community needs to move forward. Dave Cohen, Ethics San Mateo, encouraged action should be taken on Mayor Lee. Michael Weinhauer commented the letter as proposed is not too punitive but rather is not nearly strong enough and should come from Mayor Lee.

Council discussion ensued.

Motion to 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. Motion passed 4-0.

Moved: Newsom, Seconded: Hedges
Ayes: Diaz Nash, Hedges, Loraine, and Newsom
Noes: None

28. 100 N. Humboldt St. Property Owner Appeal – Statement of Decision Council Member Loraine pulled this item to allow more public comment on the issue.

Public Comment –
In person: Seema Patel stated the property owner did not submit any evidence that shifted the unsafe conditions of the property burden to the tenant and maintain the red tag ordinance as it is written. Organized presentation – One San Mateo: Jennifer Martinez, Imelda Navarro, Justin Alley, and Karyl Eldridge are opposed to the decision to grant the landlord the appeal citing this gives landlords more unfair advantage over tenants, especially those who are underserved. Kiana Simmons, Housing Leadership Council, stated the red tag ordinance was followed and should be enforced. Rick Bonilla declared upholding the appeal was the wrong decision - trust the staff; due process was the right to appeal for the landlord and asked Council to reverse the decision. Todd Blair stated this is not a court room and is not the proper venue, stated support for the landlord, and Code Enforcement is being weaponized. Rohin Ghosh, Tenants Together, stated tenant laws are only as good as the enforcement supporting them. Strict stated enforcement is needed, otherwise this invites harassment of tenants by landowners. Claire Mack stated uphold the appeal. Owen Day expressed the City Council should have held the landlord accountable as it was an open and shut case. Trina Pierce stated in her defense she had a lot of evidence and that Code Enforcement cherry picked information. Gina Papan, Attorney for Pierce, declared in the determination of liability; staff failed to consider the overwhelming evidence and opined that the Statement of Decision could show more more specific. Joanne Bennett stated that Pierce is not a slumlord. Noelia Corzo informed she respects Trina’s history in the neighborhood, but nothing explains a hole in the roof for so long and accountability is important. Marvin Hendrix cited there are bad tenants. Andrew Lomano stated to uphold the appeal and move on. Trina Pierce is not a slumlord. 13 of 536
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Remote: Cathy Baird requested to reverse the decision upholding the appeal. Dave Cohen does not support landlords who do not keep up the property. Ted McKinnon, One San Mateo, spoke about the intent of the red tag ordinance. Emily Morris stated that the 100 Humboldt tenants were her neighbors and were kind and she is deeply concerned about what will happen to tenants who complain about poor living conditions. Alexis Lewis stated do not impose this fee on Trina. 1650****663 (caller) commented Code Enforcement should start from scratch and uphold the appeal. Paul Cobanega inquired how do we protect tenants and how can we be better at helping a displaced family; should reverse the decision. Jean Saffo stated everything was fine and then the tenants moved in and tore the house up. Jordan Grimes said to reverse the decision. Rick Sakuda declared let’s just move on.

Council discussion ensued with additional questions of City Attorney Prasanna Rasiah noting the decision was done, and the item before them is to approve the Statement of Decision regarding the action taken at the June 5, 2023 public hearing.

Motion to 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. Motion passed 4-0.

Moved: Hedges, Seconded: Newsom
Ayes: Diaz Nash, Hedges, Loraine, and Newsom
Noes: None
Council recessed from 8:52 p.m. to 8:58 p.m.

PUBLIC COMMENT
Organized Presentation from multiple neighborhoods affected by the December – January flooding requesting the critical need to dredge the lagoon before the next cycle of storms, noting it has been forty years since it was dredged and it should be done every 15 years, and get the funding now: Danielle Cwirko-Godycki, Rich Kranz, Mike Dillon, Mareva Godfrey, Michelle Michelle Cwirko-Godycki, Amy Jusell, Thomas Morgan, Susan Manheimer, and Valerie Oblath.

Anna Kuhre stated that the Heritage Alliance group wants to designate Baywood as an Historical District through the National Registry and most of the residents are not interested in historical designation for Baywood. Richard Delaney is against making an historical district. Jay Kuhre objects to registration of Baywood as a National Historic district. Shawn Fahrenbruch is against historic district designation for Baywood. Dustin Chase expressed the gas leaf blower ban is the right thing to do; use the electric tool instead. Kasey Schuh commented on the two school safety issues saying it is a community safety issue. Andrew Lomano directed attention to the San Mateo flag and pointed out the city seal shows the lagoon water; we need to protect it. Rick Sakuda advised the $8 fee will barely cover annual lagoon maintenance. External and internal funding need to be looked at.

PUBLIC HEARING

29. Sewer Rate Increase for Fiscal Years 2023-24 to 2027-28 – Ordinance Introduction Matt Fabry, Deputy Director of Public Works, provided a presentation on the proposed sewer rate increase noting that this public hearing is Proposition 218 Hearing to determine if a majority protest exists. He outlined the history of sewer rate increases, the schedule and next steps. Council asked questions of staff.

The Deputy Mayor opened the Public Hearing and invited any other protests to be delivered to the City Clerk before this hearing is closed.

Public Comment – Sandra Dillon commented the notice was confusing noting the public does not understand all of this. Danielle Cwirko-Godycki said the pamphlet was very confusing. Susan Manheimer stated this is an equity issue and asked are we being double billed.
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After public comment, the Mayor closed the public hearing and asked the Clerk if a majority protest exists.

The Clerk stated that all of the written protests to the proposed increase in the sewer rates for Fiscal Years 2023- 24 to 2027-28, there were 27,103 notices mailed to Property Owners on the tax roll and a majority would require one more than have that number or 13,552. The number of valid protests received is20. Based on that, it is clear that a majority of owners have not protested the fee increase and the Council is free to take action to increase or otherwise modify the fee.

Motion to 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.” Motion passed 3-1.

Moved: Loraine, Seconded: Newsom
Ayes: Diaz Nash, Loraine, and Newsom
Noes: Hedges

30. Proposed 2023-24 Budget and 2023-28 Capital Improvement Program – Review Rich Lee, Finance Director, provided a presentation on the first of two public hearings on the 2023-24 budget and 2023-28 capital improvement program. Council asked questions of staff. Public Comment – there were no speakers. Mr. Lee explained he reports quarterly to Council regarding the budget to keep them informed and noted the formal adoption of the budget would be at the second Public Hearing at the June 20, 2023 City Council meeting.

OLD BUSINESS

31. 2023-2031 Housing Element Study Session
Zachary Dahl, Community Development Deputy Director, provided a presentation on the background of the Housing Element, HCD Housing Element letter overview, updated sites inventory methodology and capacity, Housing Element Policy updates and the next steps and tentative schedule. Council asked questions of staff.

Public Comment – Owen Day recommended to strive to complete an overly compliant housing element. Adam Klafter stated put Measure Y back on the ballot, put the density where it makes sense, we can achieve a vibrant housing here. Thomas Morgan spoke to base density. Ken Abreu expressed that housing is in crisis, crisis requires strong new bold action. Ted McKinnon commended staff on progress since the last study session and requested staff to please modify the tentative schedule to include Planning Commission involvement. Mitch Speigle suggested analyzing the compounding effect around R4 zoning for increased density. Jordan Grimes is concerned with the pipeline estimates.

Council recessed from 11:37 p.m. to 11:41 p.m.

Council asked additional questions of staff. Council comments and deliberation ensued with comments regarding adding a Planning Commission review to the Housing Element schedule, and concern with no parking within ½ mile of transit. Council was concerned with the timing constraints of adding a Planning Commission to this letter response.

Council by consensus, committed to completing the General Plan update process in 2024, put an updated Measure Y ballot initiative on the November 2024 election, have a backup plan if Measure Y ballot measure does not pass, eliminate the pre-application requirement for housing projects, update the Sites inventory methodology, consider a program for a quasi-public overlay or code amendment in 2025-26, increase the Administrative Approval threshold to 25 units, reduce parking requirements for housing projects to align with the State Density Bonus law, and maintain the current schedule for updating the Housing Element. 15 of 536
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REPORTS AND ANNOUNCEMENTS
City Manager, City Attorney and Council Members reported on their various assignments and liaison roles. Council was in favor of investigating an outside organization to look into future tenant relocation issues and also interested in expanding the Senior Get-Around program.

CLOSED SESSION
Following the opportunity for public comment, there were no speakers, the City Council convened into Closed Session at 12:45 p.m. to consider:

32. Conference with Labor Negotiators (Government Code Section 54957.6) – City Manager Compensation City designated representative: Mayor Amourence Lee
Unrepresented Employee: City Manager
ADJOURNMENT – Following a moment of silence, and prior to convening into Closed Session, the City Council read into the record an adjournment in memory of Library Board Trustee Don Hill and recognized his many contributions to the community, especially his focus on education. The meeting adjourned at 1:03 a.m.

APPROVED BY: SUBMITTED BY:

Lisa Diaz Nash, Deputy Mayor Patrice Olds, City Clerk
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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: 5 Section Name: CONSENT CALENDAR Account Number: 10-1511 File ID: 23-7646 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: City Clerk's Office
MEETING DATE: June 20, 2023
SUBJECT:

Records Management Policy – Amendment
RECOMMENDATION:

Adopt a Resolution to amend the City’s Records Management Policy to generally provide for the automatic deletion of emails after three (3) years with specified exceptions, amongst other changes, with an implementation date of October 1, 2023, and delegate authority to the City Manager to make future minor conforming changes to the policy.

BACKGROUND:

The maintenance of a robust Records Management Policy is essential for the City’s effective management of public records for legal compliance, promotion of transparency, and protection of valuable information. For this reason, on October 19, 2015, with Resolution No. 102 (2015), the City Council approved the City’s Records Management Policy and Records Retention Schedule, which have increased efficiencies in the City’s processes for identifying records that have exceeded their retention lifecycle and for their timely destruction. The City utilized Kaizen InfoSource consultants to design this policy and retention schedule, which has become the cornerstone of the City’s records management process.

While the City’s Records Management Policy continues to provide staff with a framework for records management, the original policy does not currently provide direction for staff on the appropriate maintenance of email communications. In today’s digital world, email communication has become a primary means of correspondence. In the absence of clear policy for email retention, the City faces challenges in organizing, preserving, accessing, and where necessary, destroying these records. A lack of standardization of practices for staff usage of email poses risks related to legal compliance, transparency, accountability, and efficient facilitation of public records requests.

The City Clerk’s Office led an interdepartmental working group to evaluate best practices and guidelines in other municipalities towards the objective of amending the City’s Records Management Policy to include standardization of email retention. The original Records Management Policy delegated authority to the City Manager to approve the destruction of records with the written consent of the City Attorney, and delegated authority to the City Manager to amend the retention schedule. However, the authority to amend the policy remains under the authority of the City Council, and as such, this amendment is being brought to City Council for approval. Revisions to the existing policy are shown in tracked changes format in Attachment 2.

In addition to providing staff with clear direction on the appropriate retention of email communications, this policy update also introduces an automatic three-year rolling deletion of emails received or generated as a default for all users.

Currently, the City is retaining all email that has not been deleted, which has caused inefficiencies in the retrieval of public records, and has posed other technical challenges. To provide staff with time to organize their emails, the target date for implementation of the three-year rolling deletion of emails is October 1, 2023. 17 of 536

CITY OF SAN MATEO
Upon the City Council’s approval of this policy amendment, the City Clerk’s Office, in partnership with the Department of Information Technology, will coordinate staff-wide efforts to train and prepare staff for this change.

BUDGET IMPACT:

There is no budget impacted associated with this administrative action.

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 – Proposed Resolution
Att 2 – Records Management Policy Amendment – Tracked Changes

STAFF CONTACT
Martin McTaggart, Deputy City Clerk
[email protected]
(650) 522-7044
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CITY OF SAN MATEO
RESOLUTION NO. ____ (2023)

RECORDS MANAGEMENT POLICY AMENDMENT
WHEREAS, the City of San Mateo (“City”) is committed to managing its records according to best practices to ensure business, audit, legal, historical and regulatory requirements are met; and WHEREAS, Government Code section 34090 provides a procedure whereby any City record which has served its purpose and is no longer required may be destroyed, at the request of a Department Head and with the consent of the City Attorney; and
WHEREAS, on October 19, 2015, the City Council of the City adopted Resolution No. 102 (2015) which approved a records management policy that was designed to its specific needs; and WHEREAS, the original Records Management Policy did not provide direction on the maintenance of email communications; and
WHEREAS, the continuous storage of emails that are not legally required to be kept causes inefficiencies and delays with the retrieval and delivery of requests for public records; and WHEREAS, an update to the City’s Records Management Policy is reflective of the evolving business needs of the City.

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

1. This policy 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).)

2. The City Council approves this amendment to the Records Management Policy (Exhibit A), hereto attached.

3. The City Council delegates to the City Manager the authority to amend, as necessary, the Records Management Policy to make minor confirming changes. 19 of 536
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EXHIBIT A
S t a f f P o l i c i e s M a n u a l
Title: Records Management Policy
Policy #: 110
Sponsored by: City Clerk’s Office
Approved by: City Council
Date: Issued: 10/19/2015 Amended: / /
Purpose
The purpose of this policy is to define the requirements for managing the records of the City of San Mateo (the “City”) in a cost effective and efficient manner, and in compliance with laws, regulations, and operational requirements.

Policy
It is the policy of the City that:

1. Records created or received in the course or conduct of the City’s business is an asset of the City and is the exclusive property of the City.

A. Records are subject to compliance with this policy, the associated Retention Schedule and City procedures.

B. Employees should have no expectation of privacy for any record or writing created during the performance of City business or while using a system for managing the City’s records and information.

2. Employees are responsible for being responsive to requests for public records in compliance with the California Public Records Act.

3. Each department is responsible for maintaining its records in accordance with this policy.

Records will be created, stored and managed with the appropriate classification that enables their protection as well as necessary access for future use.

4. Records are to be retained in accordance with the City’s approved Retention Schedule.

5. The following need not be kept: notes, drafts, non-City materials, reference materials, and duplicate copies.

6. Records, whether active or inactive, are to be appropriately stored and protected per San Mateo’s Procedures for Managing Records.
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7. Vital Records are to be identified by the City in a manner that establishes the priority of recovery of the records in a timely manner following a disaster.

8. Certain records that are deemed valuable for documenting the City’s history shall be designated as Historical Records and may be preserved beyond the Retention Schedule so as to assure their ongoing availability and access.

9. Digital backups used for disaster recovery purposes are not subject to the requirements of the Retention Schedule because they are duplicate records.

10. Per Council Resolution #102 (2015), the City Manager is vested with the authority to destroy obsolete records subject to City Attorney’s approval. When records complete their retention period, regardless of the format, they shall be deleted, erased, or destroyed in compliance with City procedures.

11. Records maintained in a trusted electronic system are the preferred method of storage for the official record. Such electronic records should be indexed and full-text searchable.

12. Regardless of the format in which a communication is generated or received, including electronic mail (email), postal mail, or any other written format, the record must be retained in accordance with the City’s Records Retention Schedule. Note that correspondence, including emails, must be retained for a minimum of two (2) years under the City’s Records Retention Schedule.

A. The City provides an email system to staff as a means of transitory communication. Email systems should not be used as a permanent repository for public records. Email that needs to be retained for longer than three (3) years should be removed from staff’s email system and saved in a paper or electronic file which it is appropriately labeled and accessible for future public records search.

B. If the Records Retention Schedule does not require the retention of an email after two (2) years, staff may delete the email as soon as it is no longer necessary for the discharge of official duties.

C. Notwithstanding the automatic deletion policy set forth herein, email messages may be saved in excess of three (3) years.

D. Email generated or received through the City’s computer system shall be retained as set forth below:

1. Email messages in a default folder of an employee’s mailbox will be automatically deleted after three (3) years.

2. Email messages that do not otherwise serve a business purpose, such as draft communications, administrative communications, etc, shall be routinely discarded.

3. Each employee holds the same responsibility for their electronic 21 of 536
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communications as they do for any physical document they may obtain in the course of their normal duties and must determine which communications should be retained and which should be discarded. If employees are unable to make a determination, they should seek guidance from supervising staff, who may consult with the City Attorney’s Office as necessary.

E. Email may be saved in any of the following ways:

1. Saved in an accessible format and then transferred to an electronic filing system or other media for accessible long-term storage.

2. Printed in hard copy and filed or stored as appropriate.

F. City employees should seek guidance from their department’s records coordinator to determine the time requirements applicable to email correspondence generated, received and/or maintained.

Scope
This policy shall apply to all city employees, temporary workers and contractors of the City who have access to, or use of, City records. If there is a conflict between the requirements of this policy or the procedures implementing the policy on the one hand, and a department’s policy, on the other hand, the more restrictive shall apply, unless compliance with the more restrictive requirement would conflict with state law.

Definitions (in alphabetical order)

1. Classification: The systematic identification and arrangement of records and information into categories according to logically structured conventions, methods, and procedural rules. Also known as Indexing.

2. Inactive Record: Any record related to closed, completed, or concluded activities.

Inactive records are no longer routinely referenced but must be retained in order to fulfill legal, operational or other retention requirements.

3. Legal Hold: A procedure to cease destruction of certain records or information, even if the Records Retention Schedule mandates destruction, when litigation or government investigation related to those records is pending, imminent, or, in some cases, foreseeable.

4. Office of Record: The group, department, or office in the organization responsible for ownership of specified records for the full duration of the official Records Retention Period.

5. Record: A “record” is a thing which constitutes an objective lasting indication of a writing, event or other information, which is in the custody of a City staff member and is kept either (1) because a law requires it to be kept or (2) because; it is necessary or convenient to the discharge of the staff member’s duties and was made or retained for the purpose of preserving its informational content for future reference. 22 of 536
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A. Active Record: A record needed to perform current operations, subject to frequent use and usually located on site.

B. Historical Record: Records documenting the history and significant milestones of the City as per the Records Retention Schedule.

C. Duplicate Record: Unofficial copies of documents kept only for convenience or reference, working papers, appointment logs, stocks of publications and processed documents, and library or museum material intended solely for reference or exhibition. Also, documents such as rough notes, calculations or drafts assembled or created and used in the preparation or analysis of other documents.

D. Vital Records are those records that are fundamental to the functioning of an organization and necessary to continue operations without delay under abnormal conditions or in the event of a disaster.

6. Retention Period: The length of time a record must be retained to fulfill its administrative, fiscal and/or legal function.

For additional definitions, see “Records Management Glossary”.

Responsibility

1. Office of Record
A. The group, department, or office in the organization responsible for ownership of specified records for the full duration of the Records Retention Period.

B. The Office of Record is responsible for declaring records obsolete in accordance with the Records Retention Schedule.

2. City Manager
A. Work with the City Attorney to approve the destruction of obsolete records that have completed their retention period on the City’s records retention schedule.

B. Designate the Office of Record for various classes of records.

3. City Attorney
A. Determine when a Legal Hold is necessary for records and information relevant to litigation, an investigation, or an audit and inform affected Departments.

B. Work with the City Manager to approve the destruction of obsolete records that have completed their retention period.

C. Work with the City Clerk to update the records retention schedule as needed. 23 of 536

4. City Clerk
A. Is the City’s official Custodian of Records and administers and provides oversight to the City’s records and information management program.

B. Will facilitate, in consultation with the City Attorney, the update of the records retention schedule as needed.

C. Has the authority to decide which records, media and information constitute “Historic Records.”
D. Orchestrate regularly scheduled records clean up days.

5. Department Head
A. May authorize the destruction of duplicate records under his or her control that are no longer required.

B. Designate a records coordinator within the department. In the event that a records coordinator is not named, this responsibility will default to the Department Head.

6. Supervisor or Manager
Is responsible, when an employee, temporary employee or contractor leaves the city, for complying with the requirements of this policy and any supporting procedures for retaining and managing the records of the exiting employee, temporary or contractor.

7. Department Records Coordinator
A. Shall be designated by the Department Head.

B. Maintain records in accordance with this policy.

C. Work with City Clerk to lead department on scheduled records clean up days.

D. Identify records to destroy based on the City’s Records Retention Schedule.

E. Is responsible for implementing the procedures within their department.

F. Serve as a resource to department staff on matters related to records retention.

8. Employee
A. Comply with the California Public Records Act.

B. Follow the City’s Records Retention Schedule.

C. Seek guidance from Department Head to determine the applicability of this policy and electronic records to retain.

D. Routinely review electronic content and delete content for which retention is not required. 24 of 536
Policy History

1. This policy, titled “Records Management Policy” (Policy #110), was originally created in May 2015.

2. The present policy subsumes the Destruction of Duplicate Records Policy (II.H.7) created in 1986 and the Destruction of Obsolete Records Policy (II.H.3) originally issued 10/1/1979 and later revised 6/1989.

References

1. City of San Mateo Records Retention Schedule

2. Records Management Glossary

3. City of San Mateo Procedures for Managing Records
Contact for this Policy
City Clerk
Approval
This policy was issued on October 19, 2015, amended on June 20, 2023, and approved by:

SAN MATEO CITY COUNCIL
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S t a f f P o l i c i e s M a n u a l
Title: Records Management Policy
Policy #: 110
Sponsored by: City Clerk’s Office
Approved by: City Council
Date: Issued: 10/19/2015 Amended: / /
Purpose
The purpose of this policy is to define the requirements for managing the records of the City of San Mateo (the “City”) in a cost effective and efficient manner, and in compliance with laws, regulations, and operational requirements. to establish a cost effective and efficient manner for managing the City’s records.

Policy
It is the policy of the City that:

1. Records created or received in the course or conduct of the City’s business is an asset of the City and is the exclusive property of the City.

A. Records are subject to compliance with this policy, the associated Retention Schedule and City procedures.

B. Employees should have no expectation of privacy for any record or writing created during the performance of City business or while using a system for managing the City’s records and information.

2. Employees are responsible for being responsive to requests for public records in compliance with the California Public Records Act.

3. Each department is responsible for maintaining its records in accordance with this policy.

Records will be created, stored and managed with the appropriate classification that enables their protection as well as necessary access for future use.

4. Records are to be retained in accordance with the City’s approved Retention Schedule.

5. The following need not be kept, e.g.,: notes, drafts, non-City materials, reference materials, and duplicate copies.

6. Records, whether active or inactive, are to be appropriately stored and protected per San Mateo’s Procedures for Managing Records.
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7. Vital Records are to be identified by the City in a manner that establishes the priority of recovery of the records in a timely manner following a disaster.

9. Digital backups used for disaster recovery purposes are not subject to the requirements of the Retention Schedule because they are duplicate documentsrecords.

11. Records maintained in a trusted electronic system are the preferred method of storage for the official record. Such electronic records should be indexed and full-text searchable.

C. Notwithstanding the automatic deletion policy set forth herein, email messages may be saved in excess of three (3) years.

D. Email generated or received through the City’s computer system shall be retained as set forth below:

1. Email messages in a default folder of an employee’s mailbox will be automatically deleted after three (3) years.

2. Email messages that do not otherwise serve a business purpose, such as draft communications, administrative communications, etc, shall be routinely discarded.

3. Each employee holds the same responsibility for their electronic communications as they do for any physical document they may obtain in the course of their normal duties and must determine which 27 of 536
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communications should be retained and which should be discarded. If employees are unable to make a determination, they should seek guidance from supervising staff, who may consult with the City Attorney’s Office as necessary.

E. Email may be saved in any of the following ways:

1. Saved in an accessible format and then transferred to an electronic filing system or other media for accessible long-term storage.

2. Printed in hard copy and filed or stored as appropriate.

A.F. City employees should seek guidance from their department’s records coordinator to determine the time requirements applicable to email correspondence generated, received and/or maintained.

Scope
This policy shall apply to all city employees, temporary workers and contractors of the City who have access to, or use of, City records assets. If there is a conflict between the requirements of this policy or the procedures implementing the policy on the one hand, and the a department’s policy, on the other hand, the more restrictive shall apply, unless compliance with the more restrictive requirement would conflict with state law.

Definitions (in alphabetical order)

2. Inactive Record: Any record related to closed, completed, or concluded activities.

Inactive records are no longer routinely referenced but must be retained in order to fulfill legal, operational or other retention requirements.

4. Office of Record: The group, department, or office in the organization responsible for ownership of specified records for the full duration of the official Records Retention Period.

5. Record: A “record” means any document that reflects activities of the City that are useful for future reference. Any recorded or stored Document that supports or records the business operations, objectives, agreements or activities of the City howeveris a thing which constitutes an objective lasting indication of a writing, event or other information, which is in the custody of a City staff member and is kept either (1) because a law requires it to be kept or (2) because; it is necessary or convenient to the discharge of the staff member’s duties and was made or retained for the purpose of preserving its informational content for future reference. created,
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received, modified, maintained, archived, retrieved or transmitted, regardless of media or format.

A. Active Record: A record needed to perform current operations, subject to frequent use and usually located on site.

B. Historical Record: Records documenting the history and significant milestones of the City as per the Records Retention Schedule.

C. NonDuplicate -Record: Unofficial copies of documents kept only for convenience or reference, working papers, appointment logs, stocks of publications and processed documents, and library or museum material intended solely for reference or exhibition. Also, documents such as rough notes, calculations or drafts assembled or created and used in the preparation or analysis of other documents.

6. Retention Period: The length of time a record must be retained to fulfill its administrative, fiscal and/or legal function.

For additional definitions, see “Records Management Glossary”.

Responsibility

1. Office of Record
A. The group, department, or office in the organization responsible for ownership of specified records for the full duration of the Records Retention Period.

B. The Office of Record is responsible for declaring records obsolete in accordance with the Records Retention Schedule.

2. City Manager
A. Work with the City Attorney to approve the destruction of obsolete records that have completed their retention period on the City’s records retention schedule.

B. Designate the Office of Record for various classes of records.

3. City Attorney
A. Determine when a Legal Hold is necessary for records and information relevant to litigation, an investigation, or an audit and inform affected Departments.

B. Work with the City Manager to approve the destruction of obsolete records that have completed their retention period.

C. Work with the City Clerk to update the records retention schedule as needed. 29 of 536
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4. City Clerk
A. Is the City’s official Custodian of Records and administers and provides oversight to the City’s records and information management program.

B. Will facilitate, in consultation with the City Attorney, the update of the records retention schedule as needed.

C. Has the authority to decide which records, media and information constitute “Historic Records.”
D. Orchestrate biannual regularly scheduled records clean up days.

5. Department Head
A. May authorize the destruction of duplicate records under his or her control that are no longer required.

B. Designate a records coordinator within the department. In the event that a records coordinator is not named, this responsibility will default to the Department Head.

7. Department Records Coordinator
A. Shall be designated by the Department Head.

B. Maintain records in accordance with this policy.

C. Work with City Clerk to lead department on biannual scheduled records clean up days.

D. Identify records to destroy based on the City’s Records Retention Schedule.

E. Is responsible for implementing the procedures within their department.

F. Serve as a resource to department staff on matters related to records retention.

8. Employee
A. Comply with the California Public Records Act.

B. Follow the City’s Records Retention Schedule.

C. Seek guidance from Department Head to determine the applicability of this policy and electronic records to retain.

B.D. Routinely review electronic content and delete content for which retention is not required.
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Policy History

1. This policy, titled “Records Management Policy” (Policy #110), was originally created in May 2015.

References

1. City of San Mateo Records Retention Schedule

2. Records Management Glossary

3. City of San Mateo Procedures for Managing Records
Contact for this Policy
City Clerk
Approval
This policy was issued on October 19, 2015, amended on June 20, 2023, and approved by:

SAN MATEO CITY COUNCIL
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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: 6 Section Name: CONSENT CALENDAR Account Number: 10-1511 File ID: 23-7641 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: June 20, 2023
SUBJECT:

Senior Transportation "Get Around" Program – Agreement
RECOMMENDATION:

Adopt a Resolution to approve an alternative purchasing procedure for an agreement with Serra Yellow Cab of Daly City Inc. for the Senior Transportation “Get Around” program up to the amount of $150,000 for fiscal year 2023-24, with an option for the City to extend the agreement for fiscal year 2024-25 for up to $150,000 for a potential contract total of $300,000; and authorize the Director of Parks and Recreation to execute the agreement in substantially the form presented.

BACKGROUND:

At the regular meeting of the City Council on June 5, 2023, this agreement was brought forward for City Council approval.

Due to an administrative error, the recommendation language did not fully reflect the action being taken, which was to adopt a resolution approving an alternative purchasing procedure to approve this agreement. The full background for the item can be found below.

The Senior Transportation “Get Around” program has been facilitated by the Parks and Recreation Department since January 1, 2018. Currently there are 1,061 San Mateo seniors signed up for the program. From January 1, 2022-December 31, 2022, 4,055 one-way rides were provided. On average the “Get Around” program has between 120-130 active riders a month. The current transportation vendor, Serra Yellow Cab of Daly City Inc., provides on-demand transportation services for qualified City of San Mateo residents aged 60 and over. Each month a rider is eligible for eight one-way trips or four round-trips to destinations within the cities of San Mateo, Burlingame, Foster City, Belmont, Hillsborough, San Carlos and Redwood City. Additional locations outside of the cities listed include the Veterans' Administration Medical Campus in Menlo Park and Palo Alto and Stanford University Medical Centers. All rides must begin or end in the City of San Mateo.

Serra Yellow Cab of Daly City Inc. was selected as the current transportation vendor as they are equipped to service the local senior population. Their fleet consists of over 150 cabs, of which approximately 15% are wheelchair and scooter accessible. They provide overflow transportation services to the SamTrans "Ready Wheels" program, which requires their staff to be trained to handle the needs of passengers with disabilities. All Serra Yellow Cab of Daly City Inc. vehicles are equipped with "Cab Connect" tracking system that can accurately track the start and end of travel locations, distance traveled and the necessary billing information. Serra Yellow Cab of Daly City Inc. is the only cab company that has a permit to operate in San Mateo with the capacity to manage the current scale of the “Get Around” program. Per the City's purchasing ordinance (3.60.050) exceptions (b), it is possible to award an agreement without the required RFP (Request for Proposal) procedure if it is deemed impracticable, unavailing, or impossible to call for bids through a competitive process. Staff has determined that no other transportation companies that are licensed by the City of San Mateo have the necessary fleet size to meet the requirements of this contact. 32 of 536

CITY OF SAN MATEO
BUDGET IMPACT:
$150,000 has been budgeted in the 2024 operating budget, and this agenda report is for contract authority only.

ENVIRONMENTAL DETERMINATION:

This is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Agreement

STAFF CONTACT
Stephanie Douglas, Community Services Manager
[email protected]
(650) 522-7442
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CITY OF SAN MATEO
RESOLUTION NO. (2023)

APPROVING ALTERNATIVE PURCHASING PROCEDURE FOR AN AGREEMENT WITH SERRA YELLOW CAB, INC. FOR “GET AROUND” SENIORS TRANSPORTATION PROGRAM
WHEREAS, the City of San Mateo “Get Around” Program (“Program”) for seniors transportation, has been operated by the Parks and Recreation Department since January 1, 2018; and WHEREAS, in 2022 the Program allowed 1,061 San Mateo seniors to take a total of 4,055 low-cost rides; and
WHEREAS, the competitive process required by the Purchasing policy for Professional Services over $100,000 is impracticable as Serra Yellow Cab, Inc. is the only business that can meet the Program’s needs, with over 150 vehicles in operation; other licensed operators have no more than 10 vehicles in operation; and WHEREAS, Municipal Code Section 3.60.050(b) provides that exceptions to the City Council Award Procedures are possible if the Council makes a finding concurrent with the award that calling for bids for that particular agreement is impracticable, unavailing, or impossible; and WHEREAS, City staff recommends approval of the agreement with Serra Yellow Cab, Inc. for up to $150,000.

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

1. The agreement with Serra Yellow Cab, Inc. is not a project as defined by the California Environmental Quality Act in that it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.

2. Pursuant to Municipal Code Section 3.60.050(b), calling for bids would be impracticable, unavailing, or impossible because Serra Yellow Cab, Inc. is the only City of San Mateo licensed business operator with enough cabs to meet the Program requirements.

3. The Parks and Recreation Director is authorized to execute the agreement in substantially the form submitted.
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AGREEMENT WITH SERRA YELLOW CAB OF DALY CITY INC.

FOR TRANSPORTATION SERVICES
FOR
SENIOR “GET AROUND” PROGRAM
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 SERRA YELLOW CAB OF DALY CITY INC., a CALIFORNIA CORPORATION ("CONTRACTOR"), whose address is 195 87TH STREET, #D, DALY CITY, CA 94015.

RECITALS:

A. CITY desires certain transportation services hereinafter described.

B. CITY desires to engage CONTRACTOR to provide these transportation 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.
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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 1, 2023 and be completed on June 30, 2024. The City may extend the Agreement for one (1) additional year (July 1, 2024-June 30, 2025).

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 in an amount of up to $150,000 for fiscal year 2023-2024, pursuant to rates stated in Exhibit B, attached and incorporated by reference. CITY may extend Agreement for an additional fiscal year (2024-2025) for up to $150,000 for a potential Agreement total of $300,000.

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. 36 of 536
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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.

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. 37 of 536
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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. 38 of 536
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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: Joanne Magrini
City of San Mateo
330 W. 20th Street
San Mateo, CA 94403
To CONTRACTOR: SERRA YELLOW CAB OF DALY CITY INC.

Attn: Talib Salamin
195 87th Street, #D
Daly City, CA 94015
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]
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IN WITNESS WHEREOF, CITY OF SAN MATEO and SERRA YELLOW CAB, INC. have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Joanne Magrini
Director, Parks and Recreation
Date Talib Salamin
Serra Yellow Cab of Daly City Inc.

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.

Date

APPROVED AS TO FORM ADDITIONAL CORPORATE

OFFICER
(if necessary, per the above)
Mazarin Vakharia
Assistant City Attorney
Date Date
Attachments:

Exhibit A: Scope of Services
Exhibit B: Payment Rates
Exhibit C: Insurance Requirements
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EXHIBIT A

SCOPE OF SERVICES
The CITY OF SAN MATEO Senior Transportation “Get Around” Program provides limited on demand transportation services for City of San Mateo residents aged 60+ that have been qualified for the program by City of San Mateo staff.

The CONTRACTOR will be notified of eligible participants on an as needed basis and prior to the rider’s initial call to obtain service from the contractor. The information that will be provided will include the name, San Mateo address, phone number of the patron, and if the patron requires a specific type of assisted transportation.

The CONTRACTOR will use the Cab Connect software system to track all of the rides. The City of San Mateo will provide Senior Transportation “Get Around” program cards to the qualified participants. In the event of a system failure the Contractor will provide a written voucher for all manually entered rides, this will include the start and end points of the trip, the metered amount, and a name and signature of the participant who used the trip. All manually entered rides need to be clearly identified on the monthly invoice.

Riders are eligible to take one-way trips to any destination within the cities of San Mateo, Burlingame, Foster City, Belmont, Hillsborough, San Carlos and Redwood City. All trips will start or end in the City of San Mateo. Riders can also make direct trips to the Veterans Administration Medical Campus - Menlo Park Division (795 Willow Road, 94025) and Veterans Administration Medical Campus -Palo Alto Division (3801 Miranda Avenue, 94304) and Stanford University Medical Center and their medical offices (300 Pasteur Drive, 94305).

The CITY OF SAN MATEO will not pay for any rides that start or end outside of the specified program boundaries.

The CITY OF SAN MATEO will retain the right to adjust the number of rides that program participants may take including adjusting monthly and yearly maximums.

The CONTRACTOR will provide transfer assistance to passengers needing assistance in and out of the vehicle upon request. The transfer assistance will be limited to cab to curb and curb to cab, excludes any stairs, and drivers will not carry any patrons.

The CONTRACTOR will provide wheelchair and scooter enabled vehicles upon request. The contractor will secure the patron’s wheelchair or scooter to the vehicle.

CONTRACTOR will respond to on demand requests within 30 minutes of the call for standard vehicles and up to 45 minutes for wheelchair and scooter-equipped vehicles.

CONTRACTOR will provide background and driving record checks on all employees with direct access to riders.
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CONTRACTOR will not make any extra stops on any ride. Patrons can bring as many passengers as the vehicle is licensed to carry.
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EXHIBIT B

PAYMENT RATES
CONTRACTOR will submit an itemized invoice to the CITY by the 20th of each month to evidence all rides provided.

Invoices should be sent to:

San Mateo Parks and Recreation
Attn: Senior Transportation “Get Around” Program
330 West 20th Avenue
San Mateo, CA 94403
The CITY will send invoiced payment within 30 days of receipt of the invoice.

Payments should be sent to:

Serra Yellow Cab of Daly City Inc.

Attn: Talib Salamin
195 87th Street #D
Daly City, CA 94015
Transportation rates will be charged at the following rates:

Rides that over 5 miles will be charged $25.10 starting fee, plus $3.00 per mile on the 5 plus mile, plus 15% service fee. Any rides that are less than five miles will be charged a five-mile rate of $25.10.

Wheelchair accessible rides will be charged a $40.00 starting fee (flag drop), plus $3.00 dollars a mile, plus 15% service fee. Any wheelchair accessible rides that are less than five miles will be charged a five-mile rate of $40.00. An additional $0.30 click charge will be incurred for trips slowed by excessive traffic or other uncontrollable circumstances. The senior patrons will pay the first $5.00 and the remaining fee will be paid by the City.

The City of San Mateo will not pay for any gratuity or tipping. Any tips will be left to the rider’s discretion.

All fees, taxes and services under this Agreement shall not exceed $150,000 for fiscal year 2023-2024 and if CITY chooses option to extend an additional year, Agreement shall not exceed $150,0000 for fiscal year 2024-2025. Total Agreement shall not exceed $300,000. 43 of 536
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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. 44 of 536
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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. 45 of 536

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: 7 Section Name: CONSENT CALENDAR Account Number: 18-6118 File ID: 23-7539 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: June 20, 2023
SUBJECT:

Parks and Recreation Department – Classification Updates RECOMMENDATION:

Adopt a Resolution to approve: 1) the elimination of four vacant positions – one Community Services Manager, one Community Services Supervisor and two Lead Teacher positions; and 2) approve the addition of four Recreation Coordinator positions and one new Senior Program Assistant position.

BACKGROUND:

Over the past five years, the Recreation Division has been led by one Community Services Manager, two Section Managers, eight Supervisors and only three Coordinators. This has created an inverse pyramid structure with more management staff than front line staff. With recent vacancies, the department has an opportunity to reallocate resources into more front-line positions and reduce management positions.

With this proposed reorganization, the department will eliminate the vacant Community Services Manager position, one vacant Community Services Supervisor position, and two vacant Lead Teacher positions while adding four new Coordinator positions and one Senior Program Assistant position.

With this restructuring, the department will be able to create better workflow, delegation and oversight of work projects and daily tasks. This restructuring will also create a more streamlined succession plan for the long-term outlook and recruitment purposes, as well as allow for better service to the public. This reorganization will not adversely impact any full-time merited staff and will create more merit opportunities for per diems.

As per the update to the City Council on April 17, 2023, the City Manager indicated that a proposed restructuring was underway for the Parks and Recreation Department subject to bargaining unit notification. The bargaining unit representing the impacted classifications has reviewed the proposed changes and has not brought forth any objections or concerns.

Funding for these changes will be budget neutral. Pursuant to the San Mateo Municipal Code Section 2.57.030(d), approval of new classifications and related job specifications, salary schedules, compensation changes, elimination or reinstatement of positions, reallocation of positions, reclassifications, and revisions of job specifications must be approved by City Council.

BUDGET IMPACT:

These reclassifications will not have any budgetary impact, and thus no supplemental budget appropriation is required. 46 of 536

CITY OF SAN MATEO
ENVIRONMENTAL DETERMINATION:

This staff restructuring 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

STAFF CONTACT
Nicholas Tsiorvas, Business Manager
[email protected]
(650) 522-7408
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CITY OF SAN MATEO
RESOLUTION NO. ____ (2023)

RESTRUCTURING THE RECREATION DIVISION OF THE PARKS AND RECREATION DEPARTMENT WHEREAS, staff proposes restructuring the Recreation Division of the Parks and Recreation 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; and WHEREAS, this restructuring will not adversely impact any full-time merited staff and will create more merit opportunities for per diems; and
WHEREAS, pursuant to San Mateo Municipal Code Section 2.57.030(d), approval of new classifications and related job specifications, salary schedules, compensation changes, elimination or reinstatement of positions, reallocation of positions, reclassifications, and revisions of job specifications must be approved by the City Council; and
WHEREAS, the Bargaining Unit representing the impacted classifications has reviewed the proposed changes and has not brought forth any objections or concerns.

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

1. The proposed classification update is exempt from CEQA review because it can be seen with certainty that there is no possibility that this activity may have a significant effect on the environment. (CEQA Guidelines Section 15061(b)(3)).

2. The elimination of the vacant Community Services Manager position is approved.

3. The elimination of the vacant Community Services Supervisor position is approved.

4. The elimination of the two vacant Lead Teacher positions is approved.

5. The addition of four Coordinator positions is approved.

6. The addition of one new Senior Program Assistant Position is approved. 48 of 536

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: 8 Section Name: CONSENT CALENDAR Account Number: 10-6143 File ID: 23-7578 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Parks and Recreation Department
MEETING DATE: June 20, 2023
SUBJECT:

Parks and Recreation Bulk Printing and Mailing – Agreement RECOMMENDATION:

Approve a one-year bulk printing and mailing services agreement with Folger Graphics for an amount not to exceed $150,000; authorize the Parks and Recreation Director to exercise up to two 1-year extensions for up to $150,000 each year, for a total not to exceed amount of $450,000 over three years; and authorize the Parks and Recreation Director to execute the agreement in substantially the form presented.

BACKGROUND:

The Parks and Recreation Department uses mail house services for printing, postage, and distribution of messaging to the public. Messaging can include the quarterly activity guides, notification postcards, project updates, community meeting invitations, surveys, and any other large-scale announcements that surpass in-house staff’s capacity to produce them.

Printed communications are a key method to disseminate messaging to the public and have been identified through prior community surveys as an effective way for residents to receive information from the City.

The Department issued a Request for Proposals for mail house services in May 2023 and received two responses. Casey Printing and Folger Graphics provided complete responses and offered competitive pricing and quick turnaround times.

Folger Graphics has experience as a vendor for the Parks and Recreation Department's activity guide mailer and has produced and mailed other notices as well. Folger Graphics has been selected as the preferred vendor due to their competitive pricing, value and experience. Staff recommends entering into a one-year agreement with Folger Graphics with the option to renew for two additional 1-year extensions in an amount not to exceed $150,000 annually.

BUDGET IMPACT:

Funds have been budgeted in the 2023-24 operating budget, and this agenda report is for contract authority only.

ENVIRONMENTAL DETERMINATION:

This agreement 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 - Agreement
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CITY OF SAN MATEO

STAFF CONTACT
Giovana Orozco, Administrative Technician
[email protected]
(650) 522-7400
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AGREEMENT WITH FOLGER GRAPHICS, INC.

FOR BULK PRINTING AND MAILING SERVICES
FOR

THE CITY OF SAN MATEO PARKS AND RECREATION DEPARTMENT
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 FOLGER GRAPHICS, INC. a California Corporation ("CONTRACTOR"), whose address is 21093 Forbes Ave., Hayward, CA 94545.

RECITALS:

A. CITY desires certain bulk printing and mailing services hereinafter described.

B. CITY desires to engage CONTRACTOR to provide these bulk printing and mailing 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.

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.
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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 term of this Agreement shall be for one (1) year beginning on July 1, 2023 and concluding on June 30, 2024. The Director of Parks and Recreation may authorize up to two (2) one-year extensions by the CITY, for a total maximum term of three (3) years.

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 up to $150,000, pursuant to rates stated in Exhibit B, for services provided during the first year of this Agreement.

Payment for each one-year option to extend will be up to $150,000 per year, for a total not to exceed amount of $450,000 for three years.

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. 52 of 536
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Rev 12/22
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.

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. 53 of 536
Contract for Services Page 4 of 11
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.

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. 54 of 536
Contract for Services Page 5 of 11
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: Joanne Magrini
City of San Mateo
330 W 20th Ave
San Mateo, CA 94403
To CONTRACTOR: Folger Graphics, Inc.

Attn: Kirk Folger
21093 Forbes Avenue
Hayward, CA 94545
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]
55 of 536
Contract for Services Page 6 of 11
Rev 12/22
IN WITNESS WHEREOF, CITY OF SAN MATEO and Folger Graphics, Inc. have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONTRACTOR
Joanne Magrini
Parks and Recreation Director
Date Kirk Folger, Vice President of
Sales
Its Authorized Agent
Folger Graphics, Inc.

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)
Mazarin Vakharia
Assistant City Attorney
Date Tom Jansen, Vice President of
Production
Date
Attachments:

Exhibit A: Scope of Services
Exhibit B: Payment Rates
Exhibit C: Insurance Requirements
56 of 536
Contract for Services Page 7 of 11
Rev 12/22

EXHIBIT A

SCOPE OF SERVICES
Folger Graphics, Inc. will provide as-needed bulk printing and mailing services for multiple City of San Mateo Parks and Recreation Department, for a total contract amount not to exceed $150,000 each year of this Agreement.

Format and quality of mailers will vary and will be billed to respective project accounts. Rates and processing times will be consistent with the quote provided for proposed jobs:

Proposed
Jobs
Summer Aquatics &
Camp Booklet
Quarterly
Activity Guides
Quarterly
Activity Guides
Format 8.25 x 10.75 inches, w/ stapled
binding (saddle stitched)
10-7/8 x 8-3/8 inches, w/ stapled
binding (saddle stitched)
10-7/8 x 8-3/8 inches, w/ stapled
binding (saddle stitched)
Paper Type
65-80# gloss book for the cover
and 65-80# offset
for the text pages
80# gloss book for the cover and
34# 68 Bright
Electrobrite for the
text
80# gloss book for the cover and 34#
68 Bright
Electrobrite for the
text
Paper Stock
All pages are 34# Hi Brite News
68 Recycled Stock Please indicate
your paper stock if it deviates from
printing
specifications above
All pages are 34# Hi Brite News
68 Recycled Stock Please indicate
your paper stock if it deviates from
printing
specifications above
Number of
Pages
40 pages + 4 page cover 56 pages + 2 page cover 48 pages + 2 page cover Print Color 4 - Color
4-color on front and back cover,
black + one PMS
color on inside pages
4-color on front and back cover, black
+ one PMS color on
inside pages
Quantity 13,000 51,000 51,000
Line Screen
Printing
Indicate what line screen
printing you will use
Indicate what line screen printing
you will use
Indicate what line screen printing
you will use
Press Indicate if you will use an
open or closed web press
Indicate if you will use an open or
closed web press
Indicate if you will use an open or
closed web press
Inks Soy or vegetable based inks Soy or vegetable based inks Soy or vegetable based inks Distribution
• Approximately 8,000 copies for
bulk mailing. Approximately
5,000 of these are distributed via
carrier route sorted bulk mail to
all residential "postal customers"
in 94401, 94402, 94403, and
specified carrier routes of 94404.

Additional 3,000 copies are
addressed for bulk delivery based
on customer supplied dB
compatible electronic file.

Approximately 45,000 copies for bulk mailing. Approximately 41,000 of these are distributed via carrier route sorted bulk mail to all residential "postal customers" in 94401, 94402, 94403, and specified carrier routes of 94404. An additional 4,000 copies are addressed for bulk delivery based on customer supplied dB compatible electronic file.
• Customer requires 2 drops for completed product. #1- (approximately 45,000) US Post Office at 1630 So. Delaware in San Mateo, #2 - 57 of 536
Contract for Services Page 8 of 11
Rev 12/22
• Customer requires 2 drops for
completed product. #1-
(approximately 8,000) US Post
Office at 1630 So. Delaware in
San Mateo, #2 - (approximately
5,000) City of San Mateo
Warehouse at 1961 Pacific Blvd,
San Mateo (approximately ½ mile
from post office).
• Customer copies (drop #2) are
string tied in bundles of
50-75 pieces/bundle. Post office
copies (drop #1) must meet Post
Office packaging requirements.
(approximately 6,000) City of San Mateo Warehouse at 1961 Pacific Blvd, San Mateo (approximately ½ mile from post office).
• Customer copies (drop #2) are string tied in bundles of 50-75 pieces/bundle. Post office copies (drop #1) must meet Post Office packaging requirements.

Typesetting
• Brochure is currently designed with Adobe InDesign CC 2020 for Mac, Files available in Adobe PDF. • CTP images are supplied to printer electronically in pdf format via e-mail or FTP. Computer to Plate (CTP) processing is required. Bleed tabs are used on most pages. • Printer must provide "photo adjustment instructions for best reproduction to the designer." • Printer must be able to provide feedback on the reproducibility of the PMS color for best match from the CMYK front/back cover to the spot color on the inside pages.

Hypothetical
Jobs
Mailer A Mailer B Mailer C Mailer D Mailer E
Half-fold brochure

8.5x11, dbl-sided
dbl-sided, 1 pg

8.5x11
Envelope & 4 pgs
of 8.5x11
Postcard 8.5 x

5.5 Postcard
6x9
Light card stock Card stock
Standard paper
(20#) Card stock Card stock
Color, two sided Color, two sided Black, two sided Color, two sided Color,
two
sided
50,000 2,000 10,000 5,000 10,000
Format
Paper
Colors
Quantity
Other
f fold - 11x17 folded to 8.5x11, mai Mailed
Folded, stapled,
sealed,
mailed in
evenlope
Mailed Mailed
58 of 536
Contract for Services Page 9 of 11
Rev 12/22

EXHIBIT B

PAYMENT RATES
Pricing Summer Aquatics & Camp
Booklet
Quarterly Activity Guides
(48 pgs)
Quarterly Activity Guides
(56 pgs)
Set-up
Address check, merge,
purge
Paper As specified As specified As specified
Ink/Colors “ ” “ ” “ ”
Cutting/Purchase of
envelopes N/A
Misc 1: Fold/insert
into envelopes N/A
Misc 2:

Misc 3:

Misc 4: Sort and Tie
Misc 5: Deliver to post
office INCL. INCL. INCL.

Total Price for job $11,985 $18,445 $19,745
Quantity 13,000 51,000 51,000
Price per piece $0.9189 $0.36166 $0.38715
Processing Time (Print
& Mail) 8-10 working days 8-10 working days 8-10 working days Pricing Mailer A Mailer B Mailer C Mailer D Mailer E
100# Floss BK | 63# Floss Cover
$ Incl. | Incl $ Incl $ Incl $ $ Incl
$ | $ $ $ $
$ | $ $ $ $
$ | $ $ $ $
$ | $ $ $ $
$ | $ $ $ $
$ | $ $ $ $
$ | $ $ $ $
$ | $ $ $ $
Set-up Address
check/merge/purge Paper
Ink/colors Cutting, purchase
of envelopes Misc 1:

Fold/insert into envelopes
Misc 2:

Misc 3:

Misc 4: Sort and Tie Misc 5:

Deliver to Post Office
$ | $ $ $ $
Total Price for job $8,445.00 | $9,625.00 $1,075.00 $3,465.00 $1,095.00 $1,990.00 Quantity 50,000 2,000 10,000 5,000 10,000
Price per $ 0.1689 | $ 0.1925 $ 0.5375 $ 0.3465 $ 0.219 $ 0.199 Processing Time 4-5 Days 2-3 Days 8 Days 3-4 Days 4 Days 59 of 536
Contract for Services Page 10 of 11
Rev 12/22

EXHIBIT C

INSURANCE REQUIREMENTS

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

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:

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. 60 of 536
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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.

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.

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: 9 Section Name: CONSENT CALENDAR Account Number: 88-1712 File ID: 23-7545 TO: City Council
FROM: Prasanna W. Rasiah, City Attorney
PREPARED BY: City Attorney's Office
MEETING DATE: June 20, 2023
SUBJECT:

Fiscal Year 2023-24 General Liability and Property Insurance – Purchase Authorization RECOMMENDATION:

Authorize a staff committee comprised of the City Manager, the Finance Director, and the City Attorney to select the most cost-effective program to insure the City's general liability and property risks and authorize the City Attorney to execute all required documents to purchase the selected insurance for fiscal year 2023-24.

BACKGROUND:

For the past three years, Council authorized a staff committee comprised of the City Manager, the Finance Director, and the City Attorney to select the most cost-effective program to insure the City’s general liability and property risk, and authorized the City Attorney to execute all required documents to purchase the selected insurance. The request for Council to authorize a committee in fiscal year 2020-21 was to allow the City to enroll in an organization called Public Risk Innovations, Solutions, and Management (PRISM), a joint powers authority comprised of dozens of government agencies, that provided coverage up to $25 million above a $1 million Self-Insured Retention (SIR).

The City currently faces an extremely challenging insurance market, similar to last year. The fluid circumstances of excess liability and property coverage renewal are currently in review by the staff committee. In May 2023, the City Attorney’s Office received the fiscal year 2023-24 Insurance Budget Estimates and PRISM premium estimates, and then received updated estimates for renewal premiums in June 2023, as follows:

Fiscal Year 2023-24 Insurance Premium Estimates
Coverage
Expiring
Premium
Renewal
Premium
2023 Budget
Low Estimate
2023 Budget
High Estimate
% Change
Low Estimate
% Change
High Estimate
Earthquake
(Library)
$60,638 $73,598 $68,445 $74,964 12.9% 23.6%
Excess Liability $855,763 $1,038,772 $1,064,000 $1,136,000 24.3% 32.7% Property, Boiler &
Machinery,
Environmental &
Cyber
$713,047 $1,024,773 $958,157 $1,034,809 34.4% 45.1%
Crime Insurance $8,873 $9,287 $9,317 $9,760 5.0% 10.0%
Property (Bridges) $117,162 $121,624 $125,949 $135,322 7.5% 15.5% Sexual Abuse &
Molestation
$15,488 TBD $16,262 $17,036 5.0% 10.0%
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CITY OF SAN MATEO
San Mateo-Foster
City Public
Financing
Authority
(Liability)
$19,252 TBD $20,215 $22,140 5.0% 15.0%
Total: $1,790,222 $2,268,055 $2,262,344 $2,430,031 26.4% 35.7% As noted above, the estimated premium for Excess Liability is $1,038,772, which is lower than the budget low estimate of $1,064,000 but still represents a 32.7% increase. Further, the estimated premium for Property, Boiler & Machinery, Environmental & Cyber coverage at $1,024,773 is slightly less than the budget high estimate of $1,034,809 but represents a sizable 45.1% increase. Also, the estimated premium for Property (Bridges) coverage at $121,624 is lower than the budget low estimate of $125,949. While renewal premiums for sexual abuse and molestation (SAM) as well as the San Mateo-Foster City Public Financing Authority (PFA) are yet to be determined, staff expects these to total less than $40,000.

Coverage for the PFA renews in September 2023, and the final renewal quote will be provided to staff in approximately 1-2 months.

The renewal premium estimates currently total $2,268,055, which is below the budget high estimated total of $2,430,031.

Given the significant increases in total premiums year over year, the staff committee is considering whether to explore the feasibility of becoming a self-insured public entity. This will require research and careful review of the City’s options, and a study session would occur before any proposed decision is presented to the Council.

The staff committee is recommending that Council authorize the committee to select the most cost-effective solution continuing into fiscal year 2023-24 as circumstances remain challenging and unusual. The City Attorney would then execute all of the documents necessary to obtain that insurance.

BUDGET IMPACT:

The City paid approximately $1.78 million for general liability and property insurance (including bridges, cyber, and crime) for fiscal year 2022-23. The renewal premium for 2023-24, excluding liability for SAM and the PFA is $2,268,055. The proposed fiscal year 2023-24 budget assumed $2.43 million for insurance premiums, therefore no modifications to appropriations are required.

ENVIRONMENTAL DETERMINATION:

This item is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
None

STAFF CONTACT
Prasanna W. Rasiah, City Attorney
[email protected]
(650) 522-7020
63 of 536

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: 10 Section Name: CONSENT CALENDAR Account Number: 14-4682 File ID: 23-7518 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 20, 2023
SUBJECT:

Downtown Parking Equipment Network Hosting and Materials – Amendment RECOMMENDATION:

Approve Amendment No. 2 to the agreement with IPS Group, Inc. for parking equipment network hosting and materials to increase the agreement amount by $275,000 for a revised agreement total of $675,000 and extend the agreement for an additional three-year term ending June 30, 2026; and authorize the Public Works Director to execute the amendment in substantially the form presented.

BACKGROUND:

The Downtown Parking Technology project resulted in the installation of 119 multi-space pay stations and 386 single-space parking meters for the Downtown paid parking system. IPS Group, Inc. installed the equipment and the City contracts with them for hosting the network gateway and providing materials for maintenance as needed.

In June 2021, Council approved an agreement in the amount of $300,000 with IPS Group, Inc. to provide the monthly network hosting services required by the City’s Downtown parking revenue equipment, as well as for providing proprietary parts and materials on an as-needed basis to maintain the equipment in good working condition. This equipment includes all the parking meters and pay stations for the Downtown parking program. The funding for the initial agreement also included payment of the credit card transaction fees for each user transaction utilizing credit card payment.

In April 2023, City Council approved Amendment No. 1 to the agreement increasing the agreement amount by $100,000 to provide enough funding for additional credit card transaction fees through the original agreement duration. The original agreement expires on June 30, 2023.

Per the fiscal year 2023-24 Comprehensive Fee Schedule, adopted by City Council on May 1, 2023, the credit card provider will charge the credit card transaction fee to users beginning July 1, 2023. This amendment will extend the term of the agreement for another three-year term and add funds to the agreement for network hosting and materials for that timeframe. The total not-to-exceed amount for the additional term of this agreement has taken this reduction in costs into account.

BUDGET IMPACT:

Funding for these services is budgeted in the Downtown Services Operations budget.

ENVIRONMENTAL DETERMINATION:

This contract 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).) 64 of 536

CITY OF SAN MATEO

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Amendment No. 2

STAFF CONTACT
Sue-Ellen Atkinson, Principal Transportation Planner
[email protected]
(650) 522-7288
65 of 536
Contract Amendment Page 1 of 4
Rev 7/21
AMENDMENT NO. 2 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
IPS GROUP INC. FOR

DOWNTOWN SAN MATEO PARKING
WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and IPS GROUP, INC. (“CONTRACTOR”), entered into an Agreement for parking equipment materials and hosting services (“Agreement”) on June 8, 2021; and
WHEREAS, City and CONTRACTOR wish to amend the Agreement effective June 20, 2023 to extend the term and increase the compensation amount by $275,000.

NOW, THEREFORE, the parties agree as follows:

1. Section 4 of the Agreement is amended to read:

The services to be performed under this Agreement shall be completed on June 30, 2026.

2. Section 5 of the Agreement is amended to read:

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 in an amount of $675,000 pursuant to rates stated in Exhibit A, attached and incorporated by reference.

3. Exhibit A – Scope of Services/Payment Rates is amended as attached.

4. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]
66 of 536
Contract Amendment Page 2 of 4
Rev 7/21
IN WITNESS WHEREOF, CITY OF SAN MATEO and IPS GROUP, INC. have executed this Agreement on ___________________ .

CITY OF SAN MATEO CONTRACTOR
Azalea Mitch
Public Works Director
Date Chad Randall
Its Authorized Agent
Chief Operating Officer
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)
Mazarin Vakharia
Assistant City Attorney
Date Brian Webber
Treasurer and General Counsel
Date
67 of 536
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Rev 7/21

SERVICES / PAYMENT RATES
For Equipment and Services as listed below:
• 119 IPS MS1 Multi-Space Pay Stations to replace McKay pay stations and garage pay on foot machine • 80 Pay Stations located On-Street
• 39 Pay Stations located Off-Street (Surface Lots and Garages) • 386 IPS MK5 Single-Space Smarter Meters to replace on-street coin only single-space meters • Multi- and single-space meter spare parts as needed $128,209.92 per year MS1 Multi-Space Pay Station (On-Street) Qty Units Unit Price Cost Per Month
MS1 Pay Station (Purchased) (Pay by Plate, Contactless, BNA) 80 Per Unit PAID PAID
Secure Wireless Gateway/Data Fee and Meter Management
System Software License Fee 80 Per Unit per Month $55.00 $4,400.00 Secure Credit Card Gateway Fee (per transaction) 80 Per Transaction Included Included
MS1 Multi-Space Pay Station (Off-Street) Qty Units Unit Price Cost Per Month
MS1 Pay Station (Purchased) (Pay by Plate, Contactless, BNA) 39 Per Unit PAID PAID
Secure Wireless Gateway/Data Fee and Meter Management
System Software License Fee 39 Per Unit per Month $25.00 $975.00 Secure Credit Card Gateway Fee (per transaction) 39 Per Transaction $0.13* $1,875.90
MK5 Single Space Meter (On-Street) Qty Units Unit Price Cost Per Month
MK5 Single Space Smart Meter 386 Per Unit PAID PAID
Secure Wireless Gateway/Data Fee and Meter Management
System Software License Fee 386 Per Unit per Month $6.25 $2,412.50 Secure Credit Card Gateway Fee (per transaction) 386 Per Transaction $0.13* $1,020.76
*Please note, IPS understands that the City of San Mateo plans to pass the Secure Credit Card Gateway Fee (per transaction) to the end user beginning July 1, 2023. The Secure Credit Card Gateway Fee can be applied to the end user as a convenience fee that the City will recoup as part of the monthly revenue funds from IPS. The Secure Credit Card Gateway Fee must still be applied to each credit card transaction and invoice monthly to the City.
68 of 536
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Rev 7/21
REPLACEMENT PARTS & REPAIR SERVICES:

IPS shall provide warranty and non-warranty repair services based out of our office in San Diego, CA. For repair services not able to be first achieved on-site by the Customer or by phone, these meters will be returned to IPS at 7737 Kenamar Court, San Diego, CA, 92121, for repair or rework, and IPS will endeavor to ship within 3-4 weeks of receipt, depending on the quantities received and work schedules. ALL RETURNS REQUIRE AN “RMA” NUMBER prior to shipment to IPS in order to avoid additional delays. An RMA may be requested by contacting the responsible IPS customer support manager, by contacting the IPS Help desk, phone ((877) 630-6638 or (858) 404-0607) or email ([email protected]). All items returned to IPS must be securely packaged to avoid further damage in shipment and all shipments will be via Ground Freight Service unless expedited service and payment of associated fees are requested. Automated RMA tracking, including work performed to repair meters, can be viewed at any time using IPS meter management system.

MAINTENANCE SERVICE

ON-SITE MAINTENANCE SERVICES
IPS can offer on-site technician services either part-time or on a full-time basis. The costs of the services are outlined below:

Item Units Unit Price
Part-Time IPS Technician Per day $950/technician/day
Full-Time IPS Technician Per month TBQ based on the scope of services. Would be inclusive of technician and IPS vehicle.

SAMPLE SCOPE OF SERVICES:
inventory audit to confirm meter hardware assignments and geolocation.  Cleaning of card readers and keypads
 Inventory audit to confirm meter hardware assignments and geolocation.  Inspection of all meters to determine any need for repairs.  On-site meter training for the client staff
 Shop Organization – help organize the shop inventory of all items and prepare recommended list of spare parts.  Preventative Maintenance – consisting of inspection of the meter interiors, greasing the validator connector/s, lubricating the locks, checking the communications, checking the LCD’s, keypads, expiry indicator and diagnostically checking the RFID reader.

ADDITIONAL SERVICES.

IPS can provide additional services in support of any items listed in these pricing tables and will be quoted separately upon request.
 IPS can provide alternative pricing models to include rentals, lease, revenue share, and other models, and will be quoted separately upon request.
69 of 536

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: 11 Section Name: CONSENT CALENDAR Account Number: 10-4666 File ID: 23-7556 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 20, 2023
SUBJECT:

Hillsdale Caltrain Commuter Shuttle – Agreement
RECOMMENDATION:

Approve a two-year agreement with Commute.org (Peninsula Traffic Congestion Relief Alliance) for the Hillsdale Caltrain Commuter Shuttle in the amount of $83,132 and authorize the Public Works Director to execute the agreement in substantially the form presented.

BACKGROUND:

Historically, the City has partnered with Commute.org, and previously the Peninsula Joint Powers Board, to provide commuter shuttle bus service to major business parks and destinations within San Mateo. The latest agreement for operations was approved by Council on July 18, 2022, for shuttle bus service on two routes (Campus Drive and Norfolk Area) that connect the City's Caltrain stations with the major business parks. The agreement updated the management and operations structure for the shuttle program and updated the mutual funding responsibilities for Commute.org and the City. Due to service disruptions as a result of the COVID-19 pandemic, related local health orders, and the reduced number of commuters utilizing shuttle services, the Norfolk shuttle route was on hold for the last three years. The current agreement with Commute.org for this service ends effective June 30, 2023.

Earlier this year, Commute.org applied for grant funding through the San Mateo County Transportation Authority’s (SMCTA) call for projects for continued operation of the City’s shuttle routes. Due to changes in the grant structure, the shuttle team proposed revising the existing shuttle routes to a new split route (Hillsdale Commuter Caltrain HCC East and West). The new route was designed to focus on the stops with high ridership (primarily the San Mateo Medical Center, Alameda/20th, and office buildings near Concar and Amphlett). The SMCTA approved the grant application for the Hillsdale Commuter Caltrain shuttle route, and this agreement formalizes the terms and conditions for operations.

As in prior years, Commute.org will contribute 75 percent of the total cost and the City will be responsible for the remaining 25 percent of the cost. Given the shuttle route changes, City staff will coordinate with Commute.org to provide community updates ahead of the July 3rd service start. This agreement is for a two-year term, in accordance with the funding agreement between Commute.org and SMCTA.

BUDGET IMPACT:

The total two-year agreement cost for shuttle operations is $332,526. Commute.org’s maximum contribution is 75 percent of the total cost, or $249,394. The City is responsible for the remaining portion of the total cost, equating to approximately 25 percent of the total cost, or $83,132, for the two-year term. There is sufficient funding in the Citywide Parking and Transportation budget for the City’s share of costs.
70 of 536

CITY OF SAN MATEO
ENVIRONMENTAL DETERMINATION:

Approval of this agreement 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 - Agreement

STAFF CONTACT
Sue-Ellen Atkinson, Principal Transportation Planner
[email protected]
(650) 522-7288
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SHUTTLE BUS SERVICE ADMINISTRATION AGREEMENT

HILLSDALE CALTRAIN COMMUTER
This Shuttle Bus Service Administration Agreement ("Agreement") is entered into this ________2023 ("Effective Date"), between the City of San Mateo ("Lead Organization"), and Commute.org formerly Peninsula Traffic Congestion Relief Alliance. For clarity, references to "the Parties" mean the Lead Organization and Commute.org.

RECITALS
A. Lead Organization desires to participate in a shuttle bus service ("Shuttle Service") as part of the Shuttle Bus Program ("Program").

B. The purpose of this Agreement is to set forth the terms and conditions of Lead Organization's proposed participation in the Shuttle Service and in the Program.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing, the Parties agree as follows:

1. Authorization. Subject to the terms and conditions set forth below, Lead Organization hereby is authorized to participate in the Program. The Hillsdale Caltrain Commuter (“Shuttle”) shall operate to and from the Hillsdale Caltrain Station, in San Mateo, California, and employment and residential areas along the route shown on the map attached to this Agreement as Exhibit A, and described in the schedule attached to this Agreement as Exhibit B. The route and frequency of the Shuttle may be reasonably modified by Commute.org from time to time. Lead Organization understands and agrees that more than one participant may be served by the Shuttle.

2. Lead Organization. Lead Organization acknowledges that it has been selected and accepts the position of Lead Organization on behalf of all organizations served by the Shuttle. As Lead Organization, Lead Organization shall provide the projected minimum Twenty-Five Percent (25.0%) financial share, excluding contributions from Commute.org described under Section 5 of the Agreement, Maximum Contribution; Payment.

Lead Organization may seek appropriate contributions from participating organizations for reimbursement of amounts expended by Lead Organization hereunder, it being understood that Lead Organization shall not seek or make a profit from serving as Lead Organization.

Commute.org has no responsibility to collect any such amounts from such other organizations participating in the Program to be serviced by the Shuttle.

3. Shuttle Service Vendor. Shuttle Service is operated by the San Mateo County Transit District's Shuttle Provider (“Vendor”) in full accordance with the terms and conditions of 72 of 536
the contract between SamTrans and the Vendor. Commute.org or its designee will have daily management responsibilities for the Shuttle.

Commute.org shall be responsible for supplying and/or completing any grant-related reporting information. Lead Organization shall assist Commute.org in obtaining appropriate reporting information.

4. Term. The term of this Agreement shall commence on July 1, 2023 and end on June 30, 2025. Any obligations which are incurred under the Agreement which are expressly provided to extend beyond the term of this Agreement, including any contribution obligations incurred by Commute.org pursuant to Section 5, shall remain valid until fulfilled as provided for in this Agreement. This Agreement may be terminated by either party without cause by giving thirty (30) days prior written notice to the other in the manner provided below.

All subsidy funds provided for the Program shall be generated from non-Commute.org revenue streams. At no time shall Commute.org be liable for additional revenue not included as part of the external authorized grant or for expenses disallowed by the granting entities (grantor).

Commute.org budget decisions are subject to the discretion of Commute.org's Executive Director and Commute.org's Board of Directors. This Agreement will terminate without penalty, liability or expense of any kind to Commute.org, if funds are not appropriated for the current fiscal year to fund the Shuttle Services. If funds are appropriated for a portion of the current fiscal year, this Agreement will terminate without penalty, liability or expense of any kind to Commute.org, at the end of the term for which the funds are appropriated. If expected revenues, from pending or future grant applications, which are intended to fulfill any portion of Commute.org contribution under this Agreement, are not approved and/or received by Commute.org, this Agreement will terminate without penalty, liability or expense of any kind to Commute.org, at the end of the term for which the funds are appropriated. Commute.org has no obligation to make appropriations for this Agreement in lieu of appropriations for new or other agreements.

The term of this Agreement may be extended to cover additional funding periods, by mutual written agreement. In the event that the Agreement term is extended, the Parties shall set forth any terms, including Commute.org's maximum contribution that will be applicable during the period of extension.

5. Maximum Contribution; Payment. Commute.org's maximum contribution (which includes contributions from all other funding agencies involved, if any) for Shuttle Service shall not exceed Two Hundred and Forty-Nine Thousand Three Hundred Ninety-Four Dollars ($249,394) or Seventy-Five point (75.0%) of the estimated total costs for the Shuttle Service as determined by Commute.org whichever amount is less.

6. Lead Organization's Payment. Lead Organization shall pay Twenty-Five Percent (25.0%) of the total actual costs of the Shuttle Service described in Section 1 of this Agreement.

Lead Organization's 25.0% share shall equal Eighty-Three Thousand One Hundred Thirty-Two ($83,132), subject to a final adjustment as provided below.

Lead Organization shall pay based on quarterly invoices from Commute.org. Lead Organization shall pay each invoice within thirty (30) days from the date of the invoice. In the 73 of 536
event 25.0% of the actual cost of operating the Shuttle during the term of this Agreement exceeds Lead Organization's total payments, excluding any Administration fee, upon adequate substantiation of such cost overrun, Lead Organization shall pay to Commute.org the difference within thirty (30) days of Commute.org's request for it. All payments required under this Agreement shall be made by check or money order and delivered to the following address:

Commute.org
Attention: Shuttle Department
400 Oyster Point Blvd., Suite 409
South San Francisco, CA 94080
Lead Organization shall be solely responsible for collecting any amounts owed by other organizations participating in the Program to be serviced by the Shuttle, if any.

7. Audit Requirements. For the duration of this Agreement, and for a period of three years thereafter, Lead Organization shall make available, during normal business hours and upon reasonable notice, to Commute.org and/or the grantor supplying funds for this Shuttle Service, or an independent auditor selected by either or both of them, all records relating to Lead Organization's participation in the Program including, but not limited to, all records of receipts and expenditures, promptly upon request. Commute.org and/or grantor shall bear its own costs connected with such audit, including the cost of an independent auditor. Lead Organization shall only be responsible for its own costs for making available all records relating to Lead Organization's participation in the Program in the event such an audit is requested.

8. Reporting Requirements. For the duration of this Agreement, including any extension terms, and for a period of three years thereafter, Lead Organization shall assist Commute.org with any reporting requirements related to the performance of this Agreement.

Commute.org shall bear its own costs connected with such reporting. Lead Organization shall only be responsible for its own costs for making available all records relating to the Lead Organization’s participation in the Program in the event such a report is requested. Records may include, but are not limited to ridership reports, rider surveys, customer compliments/complaints, schedule variants and effective dates.

9. Marketing Program. The Commute.org countywide shuttle marketing program description will be attached and made a part of this agreement as Exhibit C – MARKETING PROGRAM. Any brochures, handbooks, articles, news releases, timetables, web content, or other publications regarding the Shuttle (collectively “Collateral”) if provided by Lead Organization, shall occur at its sole expense with no additional reimbursement from Commute.org. All such Collateral must be approved by Commute.org in advance of publication. All Collateral shall identify the grantors as funding sources in a manner approved by Commute.org, with copies to Commute.org. See Exhibit D – GRANTING ENTITIES. During the term of this Agreement, funding sources may change. Commute.org will notify the Lead Organization of such changes and any additional marketing requirements that may apply as a result. The updates will not require Lead Organization consent. Lead Organization shall comply with update for newly drafted marketing materials.
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10. Passenger Comments. Lead Organization shall refer any passenger comments and/or complaints regarding quality of service or equipment, to Commute.org (650.588.1600) or website (Commute.org), unless otherwise instructed.

11. Indemnification. Lead Organization shall indemnify, keep and save harmless Commute.org, the San Mateo County Transit District, the San Mateo County Transportation Authority (“TA”) and their respective directors, officers, agents and employees (collectively, "Indemnitees") against any and all suits, claims or actions arising out of any injury to persons or property that may occur, or that may be alleged to have occurred, in the course of the operation of the Shuttle caused by an act or omission of Lead Organization or its employees, contractors, subcontractors, representatives or agents. Commute.org will notify Lead Organization promptly of any claim, the Lead Organization will have control of the defense of such claim and related settlement, and at the Lead Organization’s request and Lead Organization’s sole cost and expense, the Indemnitees will cooperate reasonably in the defense by providing information related to the Shuttle that is within their control. Except in the event of sole negligence on the part of Indemnitees, Lead Organization further agrees to defend any and all such actions, suits or claims and pay all charges of attorneys and all other costs and expenses arising therefrom or incurred in connection therewith; and if any judgment be rendered against the Indemnitees in any such action, Lead Organization shall, at its expense, satisfy and discharge the same. This indemnity shall survive the termination of this Agreement and or any extension thereof.

Commute.org shall indemnify, keep and save harmless the Lead Organization and its directors, officers, agents and employees (collectively, "Lead Organization Indemnitees") against any and all suits, claims or actions arising out of any injury to persons or property that may occur, or that may be alleged to have occurred, in the course of the operation of the Shuttle caused by an act or omission of Commute.org or its employees, contractors, subcontractors, representatives or agents. Lead Organization will notify Commute.org promptly of any claim, Commute.org will have control of the defense of such claim and related settlement, and at Commute.org’s request and Commute.org’s sole cost and expense, the Lead Organization Indemnitees will cooperate reasonably in the defense by providing information related to the Shuttle that is within their control.

Except in the event of sole negligence on the part of the Lead Organization Indemnitees, Commute.org further agrees to defend any and all such actions, suits or claims and pay all charges of attorneys and all other costs and expenses arising therefrom or incurred in connection therewith; and if any judgment be rendered against the Lead Organization Indemnitees in any such action, Commute.org shall, at its expense, satisfy and discharge the same. This indemnity shall survive the termination of this Agreement and or any extension thereof.

Lead Organization shall be included as an Indemnitee in the agreement between Commute.org and Vendor. A copy of that indemnity provision is attached as Exhibit E – INDEMNITY INCLUSION.

12. Notices. Any notice, report, request, instruction or other document required by this Agreement will be in writing and delivered in person to a representative of the parties at the address below, or by mailing the same by registered or certified mail, postage prepaid, addressed as follows:

If to Commute.org: Peninsula Traffic Congestion Relief Alliance 75 of 536
400 Oyster Point Blvd, Suite 409
South San Francisco, CA 94080
ATTN: Executive Director
If to Lead Organization: Azalea Mitch
Public Works Director
City of San Mateo
330 W. 20th Ave.

San Mateo, CA 94403
[email protected]
Any notice served personally shall be deemed received upon delivery; any notice mailed via registered or certified mail as provided above shall be deemed received two (2) days after it is postmarked by the U.S. Mail Service. Either party may change its address by sending notice of the change to the other party as provided herein.

13. Liaison. Commute.org and Lead Organization shall each designate one or more persons to act as contact or liaison with the other party with regard to the day to day activities of the Program. Lead Organization's liaison shall be responsible, among other things, for complying with all reporting requirements specified in this Agreement, as well as coordinating the marketing program required by Section 9 above. Each party's liaison is as follows:

Commute.org Liaison: Richard Fontela
Senior Shuttle Programs Coordinator
(650) 588-8170
[email protected]
When the primary Lead Organization’s Liaison is unavailable, a secondary contact shall be:

John Ford
Executive Director
(650) 588-8170
[email protected]
Lead Organization's Liaison:

Sue-Ellen Atkinson
Principal Transportation Planner
(650) 522-7288
[email protected]
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When the primary Lead Organization’s Liaison is unavailable, a secondary contact shall be:

Lead Organization's 2nd Liaison: Nicolette Chan
Assistant Transportation Planner
[email protected]

14. Attorneys' Fees. In the event legal proceedings are instituted by either of the parties to enforce any term of this Agreement or to determine the rights of the parties hereunder, the prevailing party in said proceedings shall recover, in addition to all court costs, reasonable attorneys' fees.

15. Relationship. Pursuant to this Agreement, Commute.org is merely a partial funding agency for transportation provided on behalf of the Lead Organization to their (and other participants, if any) tenants, employees, contractors, or designated agents under the Program.

Nothing herein shall be deemed to create a partnership, joint venture, independent contractor or employment relationship between Commute.org and Lead Organization.

16. Governing Law. This Agreementshall be governed by and construed in accordance with the laws of the State of California as applied to contracts made and performed entirely in California.

17. Successors. These Agreement obligations created under this Agreement shall be binding on, and the rights established herein shall inure to the benefit of, the successors and assigns of the parties hereto.

18. Assignment. Lead Organization may not assign any of its rights nor transfer any of its obligations under this Agreement without the prior written consent of Commute.org.

19. Modification. This Agreement may be modified or amended only by a written document signed by both parties.

20. Dispute Resolution. Commute.org and the Lead Organization agree to attempt in good faith to resolve all disputes informally. If agreed to by both parties, alternate methods of dispute resolution, such as mediation, may be utilized. Unless otherwise directed by Commute.org, the Lead Organization shall continue performance under this Agreement while matters in dispute are being resolved.

21. Interpretation. Section headings are solely for convenience and are not intended to affect the interpretation of the Agreement. The Agreement will be interpreted reasonably, not in favor of or against either party.

22. No Third Party Rights. The parties do not intend this Agreement to create rights in any third parties and nothing in this Agreement should be construed to do so.

23. Commute.org Warranties. Commute.org makes no warranties or representations, either express or implied, beyond such as are explicitly stated in this Agreement. 77 of 536

24. Severability. If any provision of this Agreement or any portion thereof is held to be invalid or unenforceable for any reason, that provision will be reformed and/or construed consistently with applicable law as nearly as possible to reflect the original intentions of this Agreement, and in any event such provision will be severable and will not affect the validity or enforceability of any other provision.

25. Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to its subject matter and supersedes any prior or contemporaneous oral or written understandings of the parties on the same subject. This Agreement may only be amended in a writing signed by both of the parties hereto. The parties intend this Agreement to be an integrated agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first written above with the intent to be legally bound.

COMMUTE. ORG
(PENINSULA TRAFFIC CONGESTION LEAD ORGANIZATION

RELIEF ALLIANCE) (CITY OF SAN MATEO)
By: By:

Name: Name: Azalea Mitch
Title: Title: Public Works Director

APPROVED AS TO FORM
By:

Name: Mazarin Vakharia
Title: Assistant City Attorney

APPROVED AS TO FORM
PTCRA Attorney
*If Lead Organization is a corporation, this Agreement must be executed by any person authorized by the corporation to bind the corporation to a contract of this nature. 78 of 536
Exhibit A
Hillsdale Caltrain Commuter Route Map (West)
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Hillsdale Caltrain Commuter Route Map (East)
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Exhibit B

HILLSDALE COMMUTER CALTRAIN

SHUTTLE SCHEDULE
Effective: 070323
Run Numbers SMC - AM1 SMC - AM3 SMC - AM5 SMC - AM7 SMC - AM9 Train numbers 701 301 107 705 305
Northbound (from SJ) 6:36 7:13 7:52 8:36 9:13
Train numbers 702 106 304 706 110
Southbound (from SF) 6:34 7:19 7:57 8:34 9:19
Shuttle Departs Station 6:42 7:25 8:05 8:45 9:25
256 37th Ave (San Mateo Medical Ctr.) 6:49 7:32 8:12 8:52 9:32 Alameda de las Pulgas & Portola Dr. 6:53 7:36 8:16 8:56 9:36 Alameda de las Pulgas & 20th Ave. 6:55 7:38 8:18 8:58 9:38 Shuttle Arrives Station 7:02 7:45 8:25 9:05 9:45
Train numbers 301 107 705 305 111
Northbound (from SJ) 7:13 7:52 8:36 9:13 9:50
Train numbers 106 304 706 110 112
Southbound (from SF) 7:19 7:57 8:34 9:19 10:19
Run Numbers SMC - AM2 SMC - AM4 SMC - AM6 SMC - AM8
Train numbers 105 703 303 109
Northbound (from SJ) 6:52 7:36 8:13 8:52
Train numbers 302 704 108 306
Southbound (from SF) 6:57 7:34 8:19 8:57
Shuttle Departs Station 7:03 7:46 8:26 9:06
Saratoga Drive & Park Place 7:07 7:50 8:30 9:10
400 Concar Drive 7:10 7:53 8:33 9:13
800/900 Concar Drive 7:11 7:54 8:34 9:14
1700 So. Amphlett Blvd. 7:13 7:56 8:36 9:16
Shuttle Arrives Station 7:21 8:04 8:44 9:24
Train numbers 703 303 109 111
Northbound (from SJ) 7:36 8:13 8:52 9:50
Train numbers 704 108 306 504
Southbound (from SF) 7:34 8:19 8:57 9:44
Hillsdale Commuter (West) - AM Schedule

CALTRAIN ARRIVES HILLSDALE STATION

SHUTTLE DEPARTS HILLSDALE STATION

SHUTTLE ARRIVES AT EMPLOYERS

SHUTTLE ARRIVES HILLSDALE STATION

CALTRAIN DEPARTS HILLSDALE STATION
Hillsdale Commuter (East) - AM Schedule

CALTRAIN ARRIVES HILLSDALE STATION

SHUTTLE DEPARTS HILLSDALE STATION

SHUTTLE ARRIVES AT EMPLOYERS

SHUTTLE ARRIVES HILLSDALE STATION

CALTRAIN DEPARTS HILLSDALE STATION
Commute.org
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Exhibit B

HILLSDALE COMMUTER CALTRAIN

SHUTTLE SCHEDULE
Effective: 070323
Run Numbers SMC - PM1 SMC - PM3 SMC - PM5 SMC - PM7 SMC - PM9 Train numbers 513 307 125 709 311
Northbound (from SJ) 3:25 4:14 4:52 5:36 6:13
Train numbers 122 124 310 710 128
Southbound (from SF) 3:19 4:19 4:57 5:33 6:19
Shuttle Departs Station 3:32 4:24 5:05 5:46 6:27
256 37th Ave (San Mateo Medical Ctr.) 3:39 4:31 5:12 5:53 6:34 Alameda de las Pulgas & Portola Dr. 3:43 4:35 5:16 5:57 6:38 Alameda de las Pulgas & 20th Ave. 3:44 4:36 5:17 5:58 6:39 Shuttle Arrives Station 3:52 4:44 5:25 6:06 6:47
Train numbers 307 125 709 311 129
Northbound (from SJ) 4:14 4:52 5:36 6:13 6:52
Train numbers 308 310 710 128 314
Southbound (from SF) 3:58 4:57 5:33 6:19 6:57
Run Numbers SMC - PM2 SMC - PM4 SMC - PM6 SMC - PM8 SMC - PM10 Train numbers 123 707 309 127 711
Northbound (from SJ) 3:49 4:36 5:13 5:52 6:36
Train numbers 308 708 126 312 712
Southbound (from SF) 3:58 4:33 5:19 5:57 6:33
Shuttle Departs Station 4:03 4:45 5:26 6:07 6:48
Saratoga Drive & Park Place 4:07 4:49 5:30 6:11 6:52
400 Concar Drive 4:11 4:53 5:34 6:15 6:56
800/900 Concar Drive 4:12 4:54 5:35 6:16 6:57
1700 So. Amphlett Blvd. 4:14 4:56 5:37 6:18 6:59
Shuttle Arrives Station 4:22 5:04 5:45 6:26 7:07
Train numbers 707 309 127 711 313
Northbound (from SJ) 4:36 5:13 5:52 6:36 7:13
Train numbers 708 126 312 712 130
Southbound (from SF) 4:33 5:19 5:57 6:33 7:23
Supported with Operating
Grants from:

Hillsdale Commuter (West) - PM Schedule

CALTRAIN ARRIVES HILLSDALE STATION

SHUTTLE DEPARTS HILLSDALE STATION

SHUTTLE ARRIVES AT EMPLOYERS

SHUTTLE ARRIVES HILLSDALE STATION

CALTRAIN DEPARTS HILLSDALE STATION
Hillsdale Commuter (East) - PM Schedule

CALTRAIN ARRIVES HILLSDALE STATION

SHUTTLE DEPARTS HILLSDALE STATION

SHUTTLE ARRIVES AT EMPLOYERS

SHUTTLE ARRIVES HILLSDALE STATION

CALTRAIN DEPARTS HILLSDALE STATION
Commute.org
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EXHIBIT C

MARKETING PROGRAM
(As of July 1, 2023)
Commute.org has developed a countywide shuttle marketing plan that serves as the basis for promoting the shuttle program throughout San Mateo County. Commute.org and its partners use a variety of tools to create and execute focused marketing for the shuttle program.

The Commute.org website serves as a primary source of information about the shuttle program.

Riders, and potential riders, use the site to get information about routes and schedules as well as real-time vehicle location tracking. The mobile version of the Commute.org site is optimized to provide shuttle riders with streamlined access to the information they need during their commute.

Commute.org maintains and publishes route specific GTFS data that is used by transit planning apps including those managed by Google, Apple, 511 and app developers. Passengers can plan trips that include shuttles anywhere Commute.org shuttles operate. Route and schedule information is also available in hard-copy format.

Commute.org works with the cities and property owners where shuttles operate to install and maintain signage indicating where the shuttles stop. New signage is being installed at stop locations throughout San Mateo County.

Commute.org shuttle and employer outreach staff provide presentations about the shuttle program directly to employers and their employees as well as at community events. Rider appreciation events are conducted throughout the year and allow the Commute.org team to thank shuttle riders for their commitment to using shuttles for first/last mile transportation. 83 of 536

EXHIBIT D

GRANTING ENTITIES
(As of July 1, 2022)
Following are all granting entities requiring acknowledgement on all marketing Collateral:

1. Commute.org.

2. San Mateo County Transportation Authority (“SMCTA”)
Citing the funding entities in text or official logo form will be deemed acceptable once prior layout approval has been obtained from Commute.org Liaison.

THE BALANCE OF THE PAGE HAS BEEN INTENTIONALLY LEFT BLANK. 84 of 536

EXHIBIT E

INDEMNITY INCLUSION
THE BALANCE OF THE PAGE HAS BEEN INTENTIONALLY LEFT BLANK. 85 of 536

12. RESPONSIBILITY: INDEMNIFICATION
The CONTRACTOR shall indemnify, keep and save harmless the DISTRICT, Peninsula Traffic Congestion Relief Alliance (PTCRA or Commute.org), the Peninsula Corridor Joint Powers Board, the City and County of San Francisco, the Santa Clara Valley Transportation Authority, TransitAmerica Services, Inc. (TASI) or the successor Operator of Record, the Union Pacific Railroad Company, the Bay Area Air Quality Management District, City/County Association of Governments, the San Mateo County Transportation Authority, entities participating in the DISTRICT's shuttle program ("Lead Organizations"), and their respective directors, officers, agents and employees and participating employers against any and all suits, claims or actions arising out of any of the following:” A. Any injury to persons or property that may occur, or that may be alleged to have occurred, arising from the performance of this Agreement by the CONTRACTOR caused by a negligent act or omission or willful misconduct of the CONTRACTOR or its employees, subcontractors or agents; or
B. Any allegation that materials or services provided by the CONTRACTOR under this Agreement infringe or violate any copyright, trademark, patent, trade secret, or any other intellectual-property or proprietary right of any third party.

C. Any claims that may be asserted under Section 13(c) and 15(n)(I) of the Federal Transit Administration Act of 1964, as amended, or any comparable provisions of federal or state law (or under any regulations promulgated thereunder), as said laws or regulations now exist or hereafter maybe amended.

The CONTRACTOR further agrees to defend any and all such actions, suits or claims and pay all charges of attorneys and all other costs and expenses of defenses as they are incurred. If any judgment is rendered against the DISTRICT or any of the other entities or individuals enumerated above in any such action, the CONTRACTOR shall, at its expense, satisfy and discharge the same. This indemnification shall survive termination or expiration of the Agreement.
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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: 12 Section Name: CONSENT CALENDAR Account Number: 72-4674 File ID: 23-7582 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 20, 2023
SUBJECT: Construction Management Services for the Clean Water Program – Amendments RECOMMENDATION:

Approve amendments to each of the professional services agreements with Tanner Pacific, Inc. and Townsend Management, Inc. to continue providing as-needed construction management services for the Clean Water Program wastewater infrastructure improvement projects; increase the agreement amounts by $2,000,000 each for new total agreement amounts not to exceed $5,000,000 for each firm; and authorize the Public Works Director to execute the amendments in substantially the form presented and to approve future amendments within the revised budget.

BACKGROUND:

The Clean Water Program (CWP) includes improvements to wastewater system capacity, flow management, condition improvements, and inflow and infiltration reduction to comply with regulatory requirements. Construction management services provide as-needed support for the remainder of the Clean Water Program improvement projects, which include various new capacity relief sewers, sewer rehabilitations/repairs, lift station improvements, and improvements to the wastewater treatment plant (WWTP, officially the Water Quality Control Plant) facilities that are not scoped for replacement under the active WWTP Upgrade and Expansion contract. Construction management is a professional service that provides the City with effective management and inspection of the construction contractor’s project schedule, cost, quality, safety, and scope.

On June 21, 2021, City Council approved agreements with Tanner Pacific, Inc. (Tanner Pacific) and Townsend Management, Inc. (Townsend) to provide as-needed construction management services for the various CWP collection system projects with agreements in amounts not-to-exceed $3,000,000 each. On August 15, 2022, City Council approved amendments (Amendments No. 1) to both agreements to expand the scope to include construction management services for WWTP projects, as well as to extend the durational term of the agreements from three to five years. At the time, no additional budget was added into the agreements.

Since execution of the agreements, both Tanner Pacific and Townsend have been successfully providing construction management and inspection services on various CWP projects. Additional construction management and inspection services are required for upcoming sanitary sewer rehabilitation projects, pump station improvements, sewer pipe capacity improvements, and WWTP improvements required to improve safety and reliability of the existing facilities. These projects are anticipated to occur through the end of the five-year terms of the agreements.

The proposed amendments will increase the previously approved $3,000,000 agreement amounts by $2,000,000 to new not-to-exceed totals of $5,000,000 each for the Tanner Pacific and Townsend agreements to cover the additional construction management support needs.

Prior to obtaining construction management and inspection services on any construction contract, staff obtains proposals 87 of 536

CITY OF SAN MATEO
from either of the two firms and negotiates a reasonable fee for the scope and expertise required. This practice will continue with each new project initiating construction.

BUDGET IMPACT:

There are sufficient funds in the various Clean Water Program projects available to fund these amendments.

ENVIRONMENTAL DETERMINATION:

The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). The PEIR was certified by Council on June 6, 2016. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for implementation of the Clean Water Program. The City prepared Addenda to the Final PEIR that were approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the project evaluated in the PEIR and Addendum.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Amendment No. 2 (Tanner Pacific)
Att 2 – Amendment No. 2 (Townsend Management)

STAFF CONTACT
Deryk Daquigan, Engineering Manager
[email protected]
(650) 522-7287
Matt Fabry, Deputy Director
[email protected]
(650) 522-7309
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AMENDMENT NO. 2 TO THE AGREEMENT
BETWEEN THE CITY OF SAN MATEO AND TANNER PACIFIC, INC.

FOR CLEAN WATER PROGRAM COLLECTION SYSTEM CONSTRUCTION

MANAGEMENT SERVICES
WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and Tanner Pacific, Inc. (“Consultant”), entered into an Agreement for Clean Water Program Collection System Construction Management Services (“Agreement”) on July 1, 2021; and
WHEREAS, additional construction management and inspections services are needed for upcoming Clean Water Program Wastewater Treatment Plant and Collection System improvement projects; and
WHEREAS, City and Consultant wish to amend the Agreement effective July 1, 2023 to increase the payment for professional services from $3,000,000 to a not to exceed amount of $5,000,000.

NOW, THEREFORE, the parties agree as follows:

1. The second sentence of Section 8 “Payment” of the Agreement is amended as follows:
“In consideration for full performances of the services and any reimbursable expenses set forth in this Agreement, CITY agrees to pay CONSULTANT a fee based on verified time and materials not to exceed $5,000,000.”

2. The remaining terms of the Agreement remain in full force and effect.

IN WITNESS WHEREOF, CITY OF SAN MATEO and TANNER PACIFIC, INC. have executed this Amendment No. 2 on _____________.

CITY OF SAN MATEO CONSULTANT
TANNER PACIFIC, INC.
____________________________ ___________________________________ Azalea Mitch Date William Tanner Date
Public Works Director President

APPROVED AS TO FORM
___________________________
Linh P. Nguyen Date
Assistant City Attorney
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AMENDMENT NO. 2 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
TOWNSEND MANAGEMENT, INC.

FOR CLEAN WATER PROGRAM COLLECTION SYSTEM

CONSTRUCTION MANAGEMENT SERVICES
WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and Townsend Management, Inc. (“Consultant”), entered into an Agreement for Clean Water Program Collection System Construction Management Services (“Agreement”) on July 9, 2021; and
WHEREAS, additional construction management and inspections services are needed for upcoming Clean Water Program Wastewater Treatment Plant and Collection System improvement projects; and
WHEREAS, City and CONSULTANT wish to amend the Agreement effective July 1, 2023 to increase the payment for professional services from $3,000,000 to a not to exceed amount of $5,000,000.

NOW, THEREFORE, the parties agree as follows:

2. The remaining terms of the Agreement remain in full force and effect.

IN WITNESS WHEREOF, CITY OF SAN MATEO and TOWNSEND
MANAGEMENT, INC. have executed this Amendment No. 2 on _____________.

CITY OF SAN MATEO CONSULTANT
TOWNSEND MANAGEMENT, INC.
____________________________ ___________________________________ Azalea Mitch Date Zamir Zuraek Date
Public Works Director President

APPROVED AS TO FORM
___________________________
Linh P. Nguyen Date
Assistant City Attorney
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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: 13 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 23-7583 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 20, 2023
SUBJECT: Wastewater Treatment Plant: Grit, Rag, and Scum Hauling and Disposal – Bid Rejection and Contract Change Order
RECOMMENDATION:

Adopt a Resolution to reject all bids received for the fiscal year 2023-24 Wastewater Treatment Plant grit, rag, and scum hauling and disposal services; approve Contract Change Order No. 1 with Allied Waste of North America, LLC dba Allied Waste Services of Daly City/Republic Services of Daly City for these services to extend the contract term to September 30, 2023 and increase the contract amount by $41,000, for a new total contract amount of $163,760; and authorize the Public Works Director to execute the contract change order in substantially the form presented.

BACKGROUND:

The Wastewater Treatment Plant (officially the Water Quality Control Plant) requires hauling and disposal of grit, rags, and scum on a weekly basis, which is essential to maintain normal operations. In accordance with Municipal Code section

3.60.030, a competitive public process was used to obtain bids for this service. Specifications and a Notice Inviting Sealed Bids were published in April 2023. Three bids were received and opened on May 11, 2023, with the following results:

Bid Amount Contractor
Per Ton Trip Total
Compactor Management Company LLC $63 $455 $119,350.00
Allied Waste of North America, LLC dba
Allied Waste Services of Daly City/Republic
Services of Daly City
$79 $505 $168,350.00
Advanced Chemical Transport, INC. DBA

ACT ENVIRO
$135 $1,500 $340,500.00
During the bid review process, it was determined that there were discrepancies in the bid book; specifically, with the unit price per ton and round-trip transportation estimates. These discrepancies created inconsistent final bid amounts from each of the bidders. Pursuant to San Mateo Municipal Code section 3.60.040(a)(4), the City Council, at its discretion, may reject all bids received. Therefore, in order to have a more uniform bidding process, it is recommended for City Council to reject all bids received and authorize the Director of Public Works to rebid the grit, rag, and scum hauling and disposal contract.

The current agreement with Allied Waste Services of Daly City/Republic Services of Daly City for these services ends June 30, 2023. The proposed contract change order extends the current agreement an additional three months to September 30, 2023 and increases the amount by $41,000 for a new total agreement amount of $163,760. Change Order No. 1 will cover the cost to provide the removal of an estimated 320 tons of material over the additional three-month extended term during the anticipated rebid process for the new contract. 91 of 536

CITY OF SAN MATEO
Based on the above, staff recommends for City Council to adopt a resolution rejecting all bids thereby allowing staff to rebid these services, and approve Contract Change Order No. 1 with Allied Waste Services of Daly City/Republic Services of Daly City extending the contract for three months and increasing the amount of the contract by $41,000, for a new total amount of $163,760.

BUDGET IMPACT:

Funding for grit, rag, and scum hauling and disposal services is budgeted in the Wastewater Treatment Plant’s operating budget.

ENVIRONMENTAL DETERMINATION:

This resolution and contract change order is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Contract Change Order #1

STAFF CONTACT
Michael Sutter, Wastewater Treatment Plant Operations Superintendent [email protected]
650-522-7376
Robert Learmonth, Wastewater Treatment Plant Manager
[email protected]
650-522-7386
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CITY OF SAN MATEO
RESOLUTION NO. ___ (2023)

REJECTING ALL BIDS FOR THE WASTEWATER TREATMENT PLANT GRIT, RAG, AND SCUM HAULING AND

DISPOSAL SERVICES AND AUTHORIZING STAFF TO RE-BID THE PROJECT WHEREAS, the Wastewater Treatment Plant (officially the Water Quality Control Plant) requires hauling and disposal of grit, rags, and scum on a weekly basis that is essential to maintain normal operations; and WHEREAS, the City advertised the project through the competitive bid process in accordance with Section 3.60.040 of the Municipal Code; and
WHEREAS, the City received and opened three bids on May 11, 2023 and the lowest bidder appeared to be Compactor Management, Inc. with a bid of $119,350.00; and WHEREAS, during the bid review process it was determined that there were discrepancies in the bid book, specifically with the unit price per ton and round-trip transportation estimates, that created inconsistent final bid amounts from each of the bidders; and
WHEREAS, San Mateo Municipal Code Section 3.60.040(a)(4) allows the City Council to, at its discretion, reject all bids received, negotiate a contract for the work or supplies if the project is not within budget, do the work through City employees, or terminate the project or purchase; and WHEREAS, it is in the City’s best interest to re-bid the project to remedy the discrepancies; and WHEREAS, staff recommends the rejection of all bids and the authority to rebid the project.

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

1. This resolution is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)

2. In accordance with San Mateo Municipal Code Section 3.60.040(a)(4), all bids received on May 11, 2023, for the Wastewater Treatment Plant grit, rag, and scum hauling and disposal services are hereby rejected.

3. City staff is authorized to re-bid the project.
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C:\inetpub\wwwroot\multitenant\temp\Att 2 - Contract Change Order No.pdf

CITY OF SAN MATEO

PUBLIC WORKS DEPARTMENT
330 WEST 20TH AVENUE
SAN MATEO, CA 94403
(650) 522-7300 CONTRACT CHANGE ORDER
PROJECT: WWTP Grit, Rag, and Scum, Hauling
TO: Allied Waste of North America, LLC dba Allied Waste Services of Daly City/Republic Services of Daly City
CONTRACT CHANGE ORDER NO. 1 Page 1 of 1
PO/SCON No. 0000178 Date 5.24.2023
Fund 720 - Sewer Fund
Cost Center Waste Water Treatment Plant
Spend Category Other Contractual Service
You are hereby directed to make the herein described changes from the plans and specifications or do the following described work not included in the plans and specifications on your contract.

DESCRIPTION OF WORK
The Wastewater Treatment Plant (officially the Water Quality Control Plant) requires hauling and disposal of grit, rags, and scum on a weekly basis which is essential to maintain normal operations. During the April 2023 bid process it was determined that there were discrepancies in the bid book. Specifically, with the unit price per ton and round-trip transportation estimates. These discrepancies created inconsistent final bid amounts from each of the bidders.

This contract change order will extend the current contract three months into FY24, ending September 30, 2023, in order to re-bid the FY24 grit, rag, and scum hauling and disposal contract. This short-term contract extension will provide the removal of an estimated 320 tons of material over 3 months. The term of the contract extension is 3 months, and the price is to remain firm for the entire 3-month period.

Total cost of change not to exceed: $41,000
We, the undersigned contractor, have given careful consideration to the change proposed and hereby agree, if this proposal is approved, that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefore the prices shown above.

By reason of this proposed change, --- days extension of time will be allowed.

Date Accepted:

Contractor: Republic Services of Daly City____________________________ By: Travis Armstrong____________________________________________ Title: General Manger ________
DISTRIBUTION: Purchasing, City Clerk, Contractor, Construction Manager, Project Analyst, Project File

STATEMENT OF ACCOUNT
Original Contract Price $122,760.00
Previous Change Orders $0.00
Total to date $0.00
This Change Order $41,000.00
Revised Contract Price $163,760.00
Date Approved:

By:

AZALEA MITCH, Director of Public Works
NOTE: This change order is not effective until approved by the Director of Public Works.
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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: 14 Section Name: CONSENT CALENDAR Account Number: 10-4662 File ID: 23-7618 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 20, 2023
SUBJECT:

Citywide Street Reconstruction Phase 3 Project - Amendment RECOMMENDATION:

Approve Amendment No. 5 to the agreement with Wilsey Ham for engineering services during construction in an amount not to exceed $45,000 for a new agreement total of $573,874; and authorize the Public Works Director to execute the amendment in substantially the form presented.

BACKGROUND:

In September 2021, City Council approved an agreement with Wilsey Ham to provide design services for the Citywide Street Reconstruction Phase 3 Project (Project) in the amount of $354,000, with a contingency reserve in the amount of $41,000. Amendments No. 1, 2, and 3 to the agreement were issued for additional design services on the Project utilizing available contingency and consistent with the authority granted by City Council. Amendments No. 1, 2, and 3 utilized $40,874 of the contingency amount with $126 of the contingency remaining. On July 18, 2022, City Council approved Amendment No. 4 in the amount of $134,000 to add engineering services during construction for the Project, for a total agreement amount of $528,874.

Road reconstruction is currently underway and additional, unforeseen areas of base failures (soft soil) were discovered on Guildford Avenue after grinding away the existing road section. Additional base failure repairs are required to strengthen the subgrade prior to reconstructing the roadway. This work is observed in the field by Wilsey Ham’s geotechnical subconsultant, Furgo, in order to determine the extent and depth of the base repairs. The additional in-field inspection work is unforeseen and utilized the entire original budget for this task and additional budget to Wilsey Ham’s engineering services during construction contract is required. Due to the nature of base failure repairs, the full extent of the in-field inspection services is unknown until the base repair work is complete.

Based on the above, staff recommends that a not-to-exceed amount of $45,000 be added to the agreement to cover additional in-field geotechnical inspection services, for a total agreement amount of $573,874. Staff estimates the additional budget will be sufficient to complete the base repairs on Guilford Avenue and other potential unforeseen site conditions that arise through the completion of the Project. Construction is anticipated to be completed in August 2023.

BUDGET IMPACT:

Sufficient funds are available in the Citywide Street Reconstruction Package 1/Phase 3 Project (467771).

ENVIRONMENTAL DETERMINATION:

This project is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA 95 of 536

CITY OF SAN MATEO
Guidelines Section 15301.)

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Amendment No. 5

STAFF CONTACT
Stephanie Piñon, Senior Engineer
[email protected]
650-522-7315
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Contract Amendment Page 1 of 2
Rev 9/17
AMENDMENT NO. 5 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND

WILSEY HAM FOR
PROFESSIONAL DESIGN SERVICES FOR STREET RECONSTRUCTION PHASE 3 (#467771-4600-0006-46250)
($354,000 [Original Amount], $24,980 [Amendment 1],
$9,485 [Amendment 2], $6,409 [Amendment 3], $134,000 [Amendment 4], $45,000 [Amendment 5]) WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and Wilsey Ham, a corporation (“Consultant”), entered into an Agreement for Professional Design Services for Street Reconstruction Phase 3 (“Agreement”) on September 27, 2021; and WHEREAS, City and Consultant wish to amend the Agreement to increase scope and compensation for the services as described and to add Exhibit A-5.

NOW, THEREFORE, the parties agree as follows:

1. Section 1 “Scope of Services” of the Agreement is amended to read:
“The scope of service to be performed by Consultant under this agreement is as described in Exhibits A, A-1, A-2, A-3, A-4 and A-5 to this Agreement, attached and incorporated by reference.”

2. Section 5 “Payment” of the Agreement is amended to read:
“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 Exhibits A, A-1, A-2, A3, A-4 and A-5, CITY agrees to pay CONSULTANT a fee, on a time and expenses reimbursement basis, in an amount not to exceed $573,874, pursuant to rates stated in Exhibits A, A-1, A-2, A-3, A-4, A-5 and B to this Agreement, attached and incorporated by reference.”

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

CITY OF SAN MATEO CONSULTANT
Azalea Mitch
Public Works Director
Brandon Davis
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.

APPROVED AS TO FORM
Linh Nguyen
Assistant City Attorney
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EXHIBIT A-5

SCOPE OF SERVICES

PROJECT DESCRIPTION
CONSULTANT is providing Engineering Services During Construction (ESDC) for the Citywide Street Reconstruction Project, Phase 3 which is part of the City’s Smooth Streets Program (SSP). During construction, differing site conditions were encountered and the City desires to expand the CONSULTANT’s scope of services to include additional field site visits.

SCOPE OF WORK
Task 1 –Construction Services
The following additional work is included in this task:
• Attend one construction meeting with the City and contractor. • Perform proof rolling evaluation of pavement (up to 3 days assumed) • Review and respond to submittals (up to 2 submittals assumed). • Review and respond to Requests for Information (up to 2 RFI’s assumed). • Design minor revisions as necessary to accommodate field conditions. • Perform final walk-through inspection and prepare punch list. Prepare record drawings. • Geotechnical field observation services (up to 5, eight-hour field visits) and preparation of Daily Field Reports.

Deliverables: Responses to RFI’s in PDF format. Sketches and plan revisions, as required by field conditions. Contractor change orders, as necessary. Daily Field Reports provided by Fugro (geotechnical sub-consultant).

Assumptions and Exclusions
The following assumptions and exclusions were used in the preparation of this proposal:

1. All permit costs and agency/utility fees will be paid by others.

2. CONSULTANT will submit earned value analysis (summary of hours and work performed by classification) when submitting monthly invoicing.

3. Any design coordination meetings will be attended virtually (video or phone).

4. Items not included in the scope above are excluded.

SCHEDULE
CONSULTANT will provide the scope of services described above on a mutually agreeable schedule.

BUDGET
CONSULTANT proposes to provide services on a time and materials basis with a not-to-exceed budget of $45,000 in accordance with the 2023 City of San Mateo Fee Schedule, effective through December 31, 2023.
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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: 15 Section Name: CONSENT CALENDAR Account Number: 72-4671 File ID: 23-7640 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 20, 2023
SUBJECT: Wastewater Treatment Plant Immediate Action Projects, Package II – Appropriation and Amendment
RECOMMENDATION:

Adopt a Resolution to appropriate $75,000 from Fund 72 reserves to the Wastewater Treatment Plant Immediate Action Projects, Package II project (IAP-II); approve Amendment No. 10 to the agreement with Stantec Consulting Services, Inc. to provide professional design and engineering services during construction for IAP-II; increase the contract value by $75,000, for a revised total agreement amount not to exceed $1,727,403.46; extend the term through December 31, 2023; and authorize the Public Works Director to execute Amendment No. 10 in substantially the form presented and approve future amendments within the approved amount.

BACKGROUND:

The Clean Water Program (CWP) includes significant infrastructure upgrades at the Wastewater Treatment Plant (WWTP, officially the Water Quality Control Plant). The Immediate Action Projects, Package II (IAP-II) includes scope to improve the aging solids handling systems at the WWTP. In August 2017, the City executed a professional design services agreement in the amount of $876,000 with Stantec Consulting Services, Inc. (Stantec) for IAP-II. Amendment No. 1 was executed in March 2019, adding $517,930 for additional design services and engineering services during construction (ESDC).

Amendment No. 2, executed in May 2021, added $79,800 for additional ESDC due to delays in the construction schedule and extended the agreement through December 31, 2021.

The IAP-II project continues to experience multiple challenges related to installation of a new sludge cake storage hopper and two new sludge cake pumps, leading to additional construction delays resulting in an extended timeframe during which Stantec's ESDC are necessary. Multiple contract amendments have been executed to allow continued support from Stantec. Amendment No. 3, executed in December 2021, extended the term of Stantec’s agreement through March 31, 2022 at no additional cost. Amendment No. 4 further extended the term for an additional month to allow time to bring Amendment No. 5 to City Council, which added $88,673.46 for additional ESDC and extended the term through September 15, 2022. Amendment No. 6 added $30,000 for ESDC and extended the term through December 31, 2022. Amendment No. 7 extended the term through January 2023 at no additional cost and Amendment No. 8 added $60,000 for ESDC and extended the term through April 2023. Amendment 9 extended the term through June 2023 at no additional cost.

Amendment No. 10 provides $75,000 of additional budget for Stantec to provide ESDC for an additional six months through December 31, 2023, which is currently the anticipated timeframe to bring the project to conclusion.

BUDGET IMPACT:

Approval of Amendment No. 10 will increase Stantec’s not-to-exceed agreement amount by $75,000. An appropriation of $75,000 from unassigned fund balance from the Sewer Fund reserves to the IAP-II project (46t009) account is required.

There are sufficient funds available in the Sewer Fund reserves for this appropriation. 100 of 536

CITY OF SAN MATEO
ENVIRONMENTAL DETERMINATION:

The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). Council on June 6, 2016, certified the PEIR. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for the implementation of the Clean Water Program. The City prepared Addenda to the Final PEIR that was approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the Project evaluated in the PEIR and Addendum.

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Resolution
Att 2 – Amendment No. 10

STAFF CONTACT
Matt Fabry, Deputy Public Works Director
[email protected]
(650) 522 7309
Azalea Mitch, Director of Public Works
[email protected]
(650) 522-7303
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CITY OF SAN MATEO
RESOLUTION NO. (2023)
AUTHORIZE AN APPROPRIATION OF $75,000 FROM SEWER FUND RESERVES TO THE

WASTEWATER TREATMENT PLANT IMMEDIATE ACTION PROJECTS, PACKAGE II PROJECT BUDGET WHEREAS, the Clean Water Program (CWP) includes significant infrastructure upgrades at the Wastewater Treatment Plant (WWTP); and
WHEREAS, the Immediate Action Projects, Package II (IAP-II) includes scope to improve the aging solids handling systems at the WWTP; and
WHEREAS, In August 2017, the City executed a professional design services agreement in the with Stantec Consulting Services, Inc. (Stantec) for IAP-II and has since executed amendments to provide engineering services during construction (ESDC); and WHEREAS, the IAP-II project continues to experience multiple challenges related to installation of a new sludge cake storage hopper and two new sludge cake pumps, leading to additional construction delays resulting in an extended timeframe during which Stantec's ESDC are necessary; and
WHEREAS, Amendment No. 10 provides $75,000 of additional budget for Stantec to provide ESDC for an additional six months through December 31, 2023, which is currently the anticipated timeframe to bring the project to conclusion; and
WHEREAS, an appropriation of $75,000 from unassigned fund balance from the Sewer Fund Reserves to the WWTP IAP II project (46t009) account is required; and WHEREAS, there are sufficient funds available in the Sewer Fund Reserves for this appropriation to the WWTP IAP-II project (46t009).

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

1. The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006).

Council on June 6, 2016, certified the PEIR. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for the implementation of the Clean Water Program. The City prepared Addenda to the Final PEIR that was approved on July 16, 102 of 536
2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the Project evaluated in the PEIR and Addendum.

2. An appropriation of $75,000 from Sewer Fund Reserves to the WWTP IAP II (46t009) project account is authorized.
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1 AMENDMENT NO. 10 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
Stantec Consulting Services, Inc. FOR
Immediate Action Projects Package II
($876,000 [Original Amount], $517,930 [Amendment 1], $79,800 [Amendment 2], $0 [Amendment 3], $0 [Amendment 4], $88,673.46 [Amendment 5]), $30,000 [Amendment 6], $0 [Amendment 7], $60,000 [Amendment 8], $0 [Amendment 9], $75,000 [Amendment 10]
WHEREAS, the City of San Mateo (“CITY”), a municipal corporation of the State of California, and Stantec Consulting Services, Inc. (“CONSULTANT”), entered into an Agreement for Professional Consulting Services (“Agreement”) on August 29, 2017 for the WWTP Immediate Action Project Package II (“Project”); and WHEREAS, the Agreement includes CONSULTANT’s design services for a sludge cake hopper and cake pumping system to be located at the CITY’s wastewater treatment plant; and
WHEREAS, challenges related to the design and/or construction have resulted in a non-functional sludge cake hopper and cake pumping system; and WHEREAS, CITY and CONSULTANT are assessing potential solutions to address these challenges; and
WHEREAS, CITY and CONSULTANT agree that CONSULTANT’s services are still required for the Project; and
WHEREAS, the CITY and CONSULTANT desire to further amend the Agreement by extending the term through December 31, 2023 and adding $75,000 in funding for CONSULTANT’s design engineering services during construction required to complete the construction of the Project that are unrelated to any alleged errors or deficiencies on behalf of either party; and
WHEREAS, this Amendment is not an admission of responsibility or any waiver of claims by the CITY or the CONSULTANT, including but not limited to CONSULTANT’s claims for compensation for Task 6 Construction Phase Services related to the sludge cake hopper and cake pumping system, which CITY contends are not reimbursable because the services were required to correct alleged error or deficiencies of CONSULTANT.

NOW, THEREFORE, the parties agree as follows:

1. Section 7, “Term, Progress and Completion,” of the Agreement, first paragraph, is amended to read:
“The services to be performed under this Agreement shall commence and be completed by no later than December 31, 2023.”
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2 2. Section 8, “Payment,” of the Agreement, first paragraph is amended to read:
“Payment shall be made by the 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 performances of the services and any reimbursable expenses set forth in this Agreement, CITY agrees to pay CONSULTANT a fee based on verified time and materials not to exceed $1,727,403.46. Requests for payments shall be itemized and correspond to the various items of work described in the Scope of Project, inclusive of the current Scope of Services as provided therein, and shall be based on the rate and cost schedule previously established.”

3. The remaining terms of the Agreement remain in full force and effect.

CITY OF SAN MATEO CONSULTANT
Stantec Consulting Services, Inc.
______________________________ ___________________________________ Azalea Mitch, Kari D. Shively, PE
Public Works Director Vice President
Date: ____________________ Date: ____________________
Approved as to Form:
_____________________________
Linh P. Nguyen, Assistant City Attorney
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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: 16 Section Name: CONSENT CALENDAR Account Number: 10-2031 File ID: 23-7611 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Finance Department
MEETING DATE: June 20, 2023
SUBJECT:

Uniform Maintenance Services – Contract Change Order
RECOMMENDATION:

Adopt a Resolution to approve an alternative purchasing procedure and approve Change Order No. 2 to the City’s agreement with Cintas Inc. for the purpose of uniform maintenance services in the amount of $20,000.01, for a new not to exceed total of $120,000.00 for fiscal year 2022-23; and authorize the City Manager to execute Change Order No. 2 in substantially the form presented.

BACKGROUND:

The City has a contract with Cintas, Inc. (Cintas) for uniform maintenance services. Originally, the City piggybacked on an existing agreement between Prince William County Public Schools and Cintas Inc. through OMNIA Partners, a cooperative purchasing organization, in February 2021, to provide uniform maintenance services for the Public Works and Parks & Recreation Departments. The City has received uniform maintenance services from Cintas since fiscal year 2011-12. The annual contract amount is up to the City Manager's level of contract authority, which is an amount not to exceed $100,000. Year to date, the City has paid Cintas $98,309.15. Based on service use trends to date, the City requires an additional $20,000.01 in contract authority for the remainder of fiscal year 2022-23. In the past two fiscal years, the City paid Cintas $116,378.40 (fiscal year 2021-22) and $111,908.80 (2020-21).

Pursuant to San Mateo Municipal Code section 3.60.070(h)(3), the City may use any purchasing procedures approved by the City Council if the City Council makes a finding concurrent with the award of the contract that the procedures are in the best interest of the City. Purchasing cooperative organizations such as OMNIA Partners offer competitively priced contracts for goods and services, avoids the administrative burden of completing a request for proposals process, and assures competitive prices are received. Based on the above, staff recommends approval of Change Order No. 2 in the amount of $20,000.01 to the City’s current contract with Cintas for a new not to exceed contract total of $120,000 for fiscal year 2022-23.

BUDGET IMPACT:

The Public Works and Parks & Recreation Departments are expected to be able to absorb the additional cost within their current budget authority. As such, no additional budget appropriations are needed.

ENVIRONMENTAL DETERMINATION:

This change order 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).)
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CITY OF SAN MATEO

NOTICE PROVIDED
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 - Proposed Resolution
Att 2 - Change Order No. 2
Att 3 - Facilities Solutions Agreement

STAFF CONTACT
Rich Lee, Director, Finance
[email protected]
(650) 522-7102
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CITY OF SAN MATEO
RESOLUTION NO. ____ (2023)
RESOLUTION APPROVING AN ALTERNATIVE PURCHASING PROCEDURE APPROVING CHANGE ORDER NO. 2 WITH CINTAS INC. FOR AN AMOUNT OF $20,000.01 FOR A TOTAL NOT TO EXCEED AMOUNT OF $120,000 FOR FISCAL YEAR 2022-23
WHEREAS, the City of San Mateo has an existing contract with Cintas Inc. to provide uniform maintenance services for the Public Works and Parks and Recreation Department; and WHEREAS, the existing agreement was based on a proposal by Cintas Inc. procured by OMNIA Partners; and
WHEREAS, Omnia Partners is a cooperative purchasing organization specializing in public sector procurement; and
WHEREAS, pursuant to San Mateo Municipal Code section 3.60.070(h)(3), the City may use any purchasing procedures approved by the City Council if the City Council makes a finding concurrent with the award of the contract that the procedures are in the best interest of the City; and WHEREAS, purchasing cooperative organizations such as OMNIA Partners offer competitively priced contracts for goods and services, avoids the administrative burden of completing a request for proposal process, and assures competitive prices are received; and
WHEREAS, based on service use trends to date, the City is anticipated to pay Cintas Inc. approximately $120,000, which is $20,000.01 more than the annual contract authority of less than $100,000 for fiscal year 2022-23; and
WHEREAS, the City requests contract authority from City Council in an amount not to exceed $120,000.00 for fiscal year 2022-23.

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

1. This change order is not a project subject to CEQA, because it is a governmental 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. Pursuant to San Mateo Municipal Code Section 3.60.070(h), the approval of Change Order No. 2 is in the best interest of the City because:
a. The City has an existing contract with Cintas Inc.;
b. Cintas has provided uniform maintenance services for the City since fiscal year 2011-12; c. OMNIA Partners procurement services avoids costs normally associated with the administrative burden of completing a request for proposals process; and d. The OMNIA Partners procurement services assures a competitively priced contract for services. 108 of 536

3. Change Order No. 2 in the amount of $20,000.01 for a total not to exceed contract total of $120,000 for fiscal year 2022-23 is approved.
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Contract Amendment Page 1 of 2
Rev 7/21
CHANGE ORDER NO. 2 TO THE AGREEMENT

BETWEEN THE CITY OF SAN MATEO AND
CINTAS INC. FOR

UNIFORM MAINTENANCE SERVICES
($99,999.99 Original Amount / $20,000.01 Change Order No. 2) WHEREAS, the City of San Mateo (“City”), a municipal corporation of the State of California, and Cintas Inc. (“Cintas”), entered into an Agreement for uniform maintenance services (“Agreement”) on February 1, 2021; and
WHEREAS, City and Cintas wish to approve a change order for the Agreement effective June 20, 2023 to increase compensation for the fiscal year ended June 30, 2023 of this Agreement.

NOW, THEREFORE, the parties agree as follows:

1. The total contract amount for the fiscal year ended June 30, 2023 is amended to be an amount not to exceed $120,000.

2. The remaining terms of the Agreement remain in full force and effect. [SIGNATURE PAGE FOLLOWS]
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Contract Amendment Page 2 of 2
Rev 7/21
IN WITNESS WHEREOF, CITY OF SAN MATEO and CINTAS have executed this Change Order No. 2 on ___________________.

CITY OF SAN MATEO CONTRACTOR
Drew Corbett
City Manager
Date Matt Henry
Its Authorized Agent
General Manager
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)
Linh Nguyen
Assistant City Attorney
Date
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Rich Lee
Finance Director
[email protected]
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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: 17 Section Name: CONSENT CALENDAR Account Number: 10-1311 File ID: 23-7595 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: June 20, 2023
SUBJECT:

Downtown Business Improvement Area – Annual Report 2022-23 RECOMMENDATION:

Accept the fiscal year 2022-23 Downtown San Mateo Association Annual Report.

BACKGROUND:

The Downtown Business Improvement Area (DBIA) was formed in 1986 for the purpose of improving Downtown San Mateo and promoting businesses within the area. The Downtown San Mateo Association (DSMA) has served as the DBIA administrator since its formation. Annually, the DSMA provides the City Council with an annual report of activities and expenditures for the previous fiscal year and proposes an assessment schedule for the upcoming fiscal year, as required by the California Streets and Highways Code Section 36533.

On October 17, 2022, City Council approved DSMA's request for an assessment modification to change the basis and method of levy for the DBIA. Prior to this request, the DSMA has not had any revenue adjustments since 2010.

Additionally, the DSMA wanted to change the basis and method of levy to better reflect the current composition of Downtown businesses from retail stores to a mix of office, medical and service users. At the subsequent meeting on November 7, 2022, the City Council held a public hearing on the modification of assessments and approved the new assessments. The updated assessment schedule starts July 1, 2023. Typically, the DSMA brings forward their annual report and request to levy their assessment in June of every year. Since the annual public hearing for the levy is already approved, the DSMA is returning to City Council solely to provide their annual report describing their activities and plans for the next fiscal year.

Since 2018, the DSMA has managed to continue its basic functions without a full-time Executive Director. This has been made possible due to dedicated all-volunteer board members and administrative support from the City Manager’s office.

With the approval of the new DBIA assessment, the DSMA board members quickly worked on hiring a full-time Executive Director. After an exhaustive recruitment process, the new Executive Director will start on July 3, 2023, and will share office space with the Downtown Coordinator in the City-owned office at the Main Street Garage. The City will continue to provide the shared office space for at no cost to DSMA.

One of the first duties of the DSMA Executive Director is to proactively reach out to Downtown businesses, initiate public community events in the Downtown, and promote the Downtown as a go-to destination on the Peninsula. With the role filled and the assessments modified, the DSMA believes the organization is finally able to provide the type of support Downtown businesses deserve, which is an organization that produces high-quality events, implements beautification projects, and actively promotes Downtown businesses. DSMA is excited to work with the City, Chamber, and community to make the Downtown a vibrant place for everyone.
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CITY OF SAN MATEO
In May 2023, the DSMA submitted its annual report, incorporating a summary of fiscal year 2022-23 activities and proposed program and budget for fiscal year 2023-24 included as Attachment 1. The DSMA’s projected revenue for the next year is approximately $375,000 in estimated DBIA assessments. The budgeted expenditures are $375,000.

BUDGET IMPACT:

Acceptance of DSMA's annual report does not have an impact on the General Fund.

ENVIRONMENTAL DETERMINATION:

This report 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 - Fiscal Year 2022-23 Annual Report

STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009
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Downtown San Mateo Association
Fiscal Year 2023 Annual Report
July 1, 2022 - June 30, 2023
Overview
Since 1986, the DSMA has been designated by the City Council to manage the Downtown Business Improvement District. Originally activated to serve a largely retail-oriented district, the DSMA now manages a district with a much broader range of businesses such as tech startups, medical uses, restaurants, salons, gyms, bakeries, and a twelve-screen movie theater.

With the departure of the executive director in 2018, the DSMA has operated through the efforts of an all-volunteer board and limited administrative assistance from City Hall. The DSMA partnership with the City Manager’s office over the past few years have produced a positive, strategic, and proactive relationship with the City of San Mateo.

Due to the COVID-19 pandemic, businesses, employees, and residents have had their lives changed as government agencies mandated restrictions in order to slow the spread of the virus.

Fiscal year 2023 (July 1, 2022- June 30, 2023) was the first year that all government restrictions ended. The low rate of COVID-19 infections, increased number of vaccinated residents, and elimination of government mandates, have created a bit more normalcy as people and businesses return to their pre-COVID routines and operations.

While revenues have not fully returned to pre-pandemic times, the DSMA remain optimistic about the continued economic recovery in the Downtown. As companies return to the office with hybrid work schedules, there is a corresponding increase in customers supporting coffee shops, salons, bakeries, gyms, dry cleaners, and other retailers in the Downtown. Additionally, San Mateo remain a premier destination location for Bay Area foodies as the Downtown bustles with visitors and residents during meal hours.

The City’s support of outdoor dining has helped many businesses remain open through the pandemic. Even though the City’s temporary outdoor dining program has ended, businesses have been able to apply and receive permanent parklets and sidewalk dining permits. As the 118 of 536
summer approaches, DSMA is hopeful for more businesses to apply and receive outdoor dining permits.

While the overall economic conditions in the Downtown remain positive, the post COVID-19 environment still has a lingering effect on the local economy, the downtown, and the country.

The DSMA will continue its efforts to help small businesses thrive, grow, and remain resilient despite economic headwinds such as rising interest rates heading into FY24.

In FY23, the DSMA accomplished the following:
● Successfully worked with the DSMA members and San Mateo City Council to approve a rate modifications to the Downtown Business Improvement Area’s rate structure for long-term sustainability for the district. ● The DSMA began its search for an Executive Director to bring focused leadership and expanded activity for our Downtown constituents.
● Monitored restaurant and business changes in Downtown San Mateo and updated information on the DSMA website, social media, and print ads. ● Promoted local businesses with weekly ads in the local newspaper to encourage public support for our small businesses with take out, curbside pickup, and online shopping experiences.
● Continuously worked with the City Manager’s office to collaborate on DSMA efforts. ● Continued a strong partnership with the Public Works, Downtown Coordinator to identify Downtown issues and coordinate solutions.
● Encouraged the review of the proposed issue of the Downtown public bathroom. ● Held regular monthly board meetings (both live and online), keeping a large number of board members engaged throughout the pandemic.
● Continued a close working relationship with City Council members. ● Produced two monthly e-newsletters (one to BID members and one to the community at large) announcing Downtown news.
● Contracted the Downtown Cleaning Porter, seven days a week, to keep our Downtown clean, sanitary and welcoming for customers and visitors. ● Enforced strict financial restraints on the annual budget to both provide services and retain as much savings as possible.
● Responded to dozens of emails and phone messages from both members of the community and business owners.

During the last year, several new businesses opened in the Downtown, some examples are Kajiken Ramen, Somi Somi, and Indigo Rugs. Additionally, Curry Pizza, Zhangliang Malatang Hot Pot, Paris Baguette and many more will be opening in later 2023. This demonstrates the continued strength of Downtown San Mateo as a location for small business investment. 119 of 536
Finally, the DSMA would like to recognize Downtown businesses for keeping businesses going and providing crucial amenities and services to the Downtown. The DSMA also appreciates the efforts of the City of San Mateo to help keep our Downtown businesses healthy and vibrant with the creation of the Pedestrian Mall between 1st and 3rd Avenues along B Street, permanent outdoor dining permits, construction of the new affordable housing and public garage at KiKu Crossing, and their continued support of the DSMA.

Downtown San Mateo
Thanks to its regionally central location and proximity to CalTrain, Downtown San Mateo is an employment hub and a popular place to meet for both business and leisure purposes.

Commuters and leisure visitors come from San Francisco, Santa Clara County and the East Bay, as well as nearby Peninsula communities. Downtown is known for its vast abundance and variety of restaurants, which comprise more than 20% of district businesses. It is also an important role in the Silicon Valley ecosystem, hosting the offices of start-ups and tech-based companies large and small. The presence of Mills Medical Center means that Downtown also includes many medical professionals and other healthcare uses. While there are traditional retailers in the district, the storefronts on most blocks are dominated by food purveyors, along with services such as salons, fitness studios, and banks. The blocks east of the railroad tracks also have a variety of automotive uses and is experiencing a building boom of mixed residential and professional buildings. The DSMA will look to incorporate the businesses that will tenant the new construction surrounding the Downtown at future board meetings.

While the Downtown hoped for a quicker return to work for daytime employees, the number of visitors and workers remain less than it was before the pandemic. This is due to the shift of employees working in technology, financial, and professional industries to work from home for 2-5 days a week. It is unknown if this is a permanent change in the foot traffic or if the same number of people still come to the Downtown, but on fewer days. However, the evening restaurant businesses are seeing a closer pre-pandemic return to normal in revenues.

Visitors have complimented the DSMA on the high-level of cleanliness in the Downtown area.

Thus, it is important to continue maintaining a clean Downtown to attract visitors and local residents. The DSMA has addressed cleanliness by contracting with Universal Site Services for a porter. Under the current contract, the DSMA contracts a cleaning porter to wipe trash cans and newspaper racks, sweep sidewalks and gutters, and ensure Downtown is clean and attractive throughout the week. DSMA’s cleaning efforts increases the frequency, duration, and enhances the cleaning services provided by the City.
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The DSMA utilizes social media to promote Downtown’s unique offerings and inform both businesses and the public of news that affects them in a very timely fashion. The DSMA’s social media efforts have proven to be an extremely effective way to attract Downtown visitors, particularly appreciated by restaurants in the Downtown. Social media outreach also produces monthly newsletters (one oriented to the public and the other for Downtown businesses) and provides updates on the social media platforms of interesting current affairs.

In November 2022, DSMA accomplished a huge long-term goal to change the existing assessment modification to better serve the current mix of businesses in the Downtown. The change in rates will be effective as of July 1, 2023. The reasons for the assessment change was that the DSMA had not seen an assessment increase in thirteen years. The change in revenues will help the DSMA attract and hire an Executive Director who can increase member outreach, communication, create more public community events, and help market the Downtown as a goto destination on the Peninsula. The DSMA maintains that dedicating the assessment funds for the Downtown is necessary to deliver high-quality customer experience, implement beautification initiatives, promote Downtown businesses, and provide greater equity among the mix of Downtown businesses in the future.

While there is always more that can be done to support and promote Downtown businesses, DSMA is proud of the work the all-volunteer board have done. We wish to continue our work to help Downtown businesses, continue to collaborate with the City to support the Downtown and requests Council’s continue support of the organization.

DSMA FOCUS AREAS
DSMA activities for the past several years have addressed three focus areas:
● Civic Partnership
● Community Engagement
● BID Member Engagement
Civic Partnerships
The DSMA routinely works with city staff from Public Works, Planning, Parks and Recreation, and the City Manager’s office on projects affecting Downtown. Here is a summary from the past year.
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Downtown Beautification and Cleanliness
● Provide daily oversight of private contractor for cleaning porter services. ● Contracts a private contractor to install seasonal banners on light posts. ● Cooperates with Downtown Post Office to ensure landscaping and sidewalks are kept clean.
● Work with City to monitor trash ordinance in the Downtown.

Additional civic partnership activities
● Work closely with the San Mateo Police Department on public safety downtown; the SMPD is an active participant in the monthly DSMA Board of Directors meetings. ● Business outreach for city initiatives for outdoor dining, pedestrian mall, public art and similar.
● Outreach and attendance at neighborhood association meetings.

Community Engagement
Public outreach builds interest among local audiences and invites them to explore Downtown San Mateo for a variety of experiences. As we emerge from the pandemic community engagement events will be reengaged. The DSMA looks forward to partnering with the City, Chamber of Commerce, and other non-profits to promote community special events in the Downtown.

Marketing Efforts
Print Materials
● Created and circulated a listing of businesses and restaurants that are operating during the last year in local newspaper, the San Mateo Daily Journal continuously over the holiday season.
● Continuously updated restaurant and retail store information in successive on our website keep the public updated on store hours and availability.

Social Media
● Enables DSMA to share news about our businesses and extend the marketing reach of individual businesses. Our combined Facebook, Twitter, and Instagram audiences now exceed 13,000 followers.
● Downtown San Mateo Monthly Update email blast reaches about 1,250 community subscribers and business owners.
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● Improved Media Content will include features of local restaurants and businesses, history, testimonials from visitors, business owners, familiar local stakeholders, events, City announcements, and media/news items.
● Coordinated with the City of San Mateo on social media blasts.

Website
• The website provides greater information, search capabilities, and dedicated pages to specific information for the public and Downtown businesses to access. • Created a data-rich, accessible, and easily maintained website that will service as another strong avenue for Downtown San Mateo outreach.
• The DSMA will work with the newly hired Executive Director to market the website and enhance as a tool for the public to explore and become informed about the Downtown.

BID Member Engagement Milestones FY23
While BID membership is automatic based on a district address, awareness and participation is always trying to be improved. The DSMA strives to engage BID members and add value to the varied businesses located Downtown. Examples of engagement by the DSMA include:
● Personal outreach visits by DSMA board members to new Downtown businesses. ● Coordination of regular outdoor cleaning services to promote a Downtown in which people enjoy spending time.
● Regular features of new Downtown businesses via social media. ● Held regular DSMA Board meetings, inviting new and existing businesses to attend, and the City to present topical presentations to the Board. ● Increased consistency of board member attendance and participation.

Additional DSMA Milestones FY23
● Strengthen economic development collaboration with local organizations as well as the City of San Mateo.

DSMA Goals for FY24
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While businesses are returning to normal, the new fiscal year will be filled with some unpredictability due to the challenges of post pandemic changes and the economy fluctuations.

Consequently, DSMA’s role as an advocate, facilitator, and organizer of Downtown businesses will be mission critical in the post COVID economy.

DSMA will continue to help the City provide a high-level of customer service with enhanced cleaning services; attract visitors to shop and eat in Downtown businesses with promotional efforts; and convene Downtown business owners and property owners to support each other through the crises while helping the City understand the needs of the Downtown businesses.

Most of all, DSMA will help Downtown businesses by being a resource to businesses, a partner with the City of San Mateo, and an organization dedicated to keep the Downtown an attractive place for visitors.
● Continue to support marketing, outreach, and public safety information. ● Strengthen economic development collaborations with local organizations. ● Develop a communications plan to further the DSMA brand. ○ Advertise the new DSMA website to further market to and engage the public to visit Downtown businesses.
○ Targeted messaging campaigns throughout the year which will feature various Downtown attributes.
○ Develop Social media advertising.
● Plan to restart the Downtown walk around with City staff and DSMA board members. ● Refresh, print, and distribute the printed Downtown Restaurant Guide. ● Continue print ads in the local paper, the San Mateo Daily Journal. ● Restart hotel magazine ad campaign.
● Create relationships with developers and tech companies coming into the area. ● Serve as co-sponsor and administrative support for the MLK Day event at the CalTrain station.
● Sponsor and promote Downtown events (eg. Music in the Park, September Nights on B Street, College of San Mateo Centennial etc.)
● Regular representation at Council, task force, and Commission meetings. ● Update to council to inform and report on campaigns and progress. ● Expand board membership.
● Improved board member participation.
● Set up Board Committees to facilitate more participation. ● Continue to partner with City staff to continue the support of Downtown. 124 of 536
● Explore the possibility of college interns to help with DSMA operations and events. ● Integrate the newly hired Executive Director into the fabric of Downtown as quickly and smoothly as possible.
● Research the impact of installing a public restroom Downtown closer to the core of the Downtown.

In summary, the DSMA seeks the continued support of the City Council. The DSMA works to attract visitors, promote local businesses, and maintain a clean Downtown.

Budget 2024 (FY24) Overview
The DSMA has worked through this pandemic by serving its constituents. The DSMA has run at deficit spending for a couple years to help our members. The City Council restored member fee to 100% in FY23 to help restore the long-term viability of the DSMA.

The DSMA FY24 Budget has a planned balanced budget. This neutral budget is a reflection of the commitment of the DSMA to provide support and services to the Downtown area while staying within its budgetary parameters. Planned expenses for FY24 are thoughtfully planned to continue services and encourage patrons for the Downtown businesses. The following are a summary of the major budget highlights (detailed the Budget Comparative Overview Appendix):
• Revenue projections are increasing due to the expectation of business returning to a more normal environment in the FY24 and the future impact of the rate modification.

The exact revenue goal is an estimate as it will be based on the businesses mix. • Expenses will increase in the FY24 Budget due primarily to the budgeted expense of a full time Executive Director (ED). The expense highlights are:
o Program Activities
§ Supporting most of the ED payroll
§ Public events
§ Internship program
o Civic Partnership
§ Downtown Cleaning Porter
§ Partial ED salary
o Marketing services
§ Advertising and Promotion
§ Social Media consultant
§ Partial ED salary
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o Administration
o A small contingency fund for unplanned expenses at these uncertain times The DSMA projects a cash balance of $173.0K at the start of FY24 and projects a cash balance of approximately $173.0K at the end of the budgeted FY24. 126 of 536
Appendix: Budget Comparative Overview
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Appendix: DSMA Board of Directors
Robert Anderson – Downtown Resident
Steve Carey – LifeMoves
Lew Cohen, President – B Street Books
Martin Kent – Draper University
Tyson Mao, Wursthall
Colleen Rafferty, Vice President – Christensen & Rafferty Fine Jewelry Steve Sirianni, Secretary – All About Parking
Joe Sully – Downtown Building Owner
Susan Uzunoglu – Susan’s European Beauty Therapy
Janet Wagner – Mills Health Center
Jill Waxman – Prometheus Real Estate Group
Seamus Whitley, Treasurer – Nutanix Frame
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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: 18 Section Name: CONSENT CALENDAR Account Number: 10-3133 File ID: 23-7601 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Community Development Department
MEETING DATE: June 20, 2023
SUBJECT:

Worker Resource Center Operations – Agreement
RECOMMENDATION:

Approve an agreement with Samaritan House for operations of the Worker Resource Center for the period of from July 1, 2023 through June 30, 2025 in the amount of $195,000 per year and authorize City Manager to execute the agreement in substantially the form presented.

BACKGROUND:

In June 2003, the City Council approved an agreement with Samaritan House to undertake the operation of the Worker Resource Center (WRC) located at the parking lot on Fifth Avenue at the railroad tracks. The center was created to alleviate the impact of day workers congregating along the Third and Fourth Avenue corridors in Downtown. These corridors were previously characterized by a variety of roadway violations jeopardizing traffic and pedestrian safety, and also resulted in police service calls related to loitering, urinating in public, disturbances, and trespassing complaints. The main purpose of the WRC is to match job seekers with job providers in a safe location that does not interfere with traffic and pedestrian flows. This working relationship has continued since inception through the existing agreement ending June 30, 2023.

Services Provided Under the Agreement
The Center’s operations include a place for workers and seekers of casual labor to meet every day except for holidays. As workers come to the center, they register with center staff and identify their home address and work skills, such as manual labor, gardening, painting, or carpentry. Residents and businesses seeking casual labor coming to the center are asked what type of skill they are seeking and are matched with workers. Samaritan House also provides or refers other services as needed to the workers (health, dental, nutrition, and clothing) either at the center or other locations.

Center Location
The Worker Resource Center has a lease in place for its new location at 171 N. Amphlett Boulevard, and Samaritan House will continue to operate the center from this space for the foreseeable future.

BUDGET IMPACT:

This is a two-year agreement in the amount of $195,000 per year, which is budgeted in the General Fund. This does not completely cover the costs of the operations for Samaritan House, as they also provide about $70,000 from their own fund raising to ensure the WRC services are provided. About 80% of the program budget is for staffing consisting of three fulltime equivalent employees.

ENVIRONMENTAL DETERMINATION:

This agreement is not a project subject to CEQA, because it is an organizational or administrative activity that will not 129 of 536

CITY OF SAN MATEO
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 - Worker Resource Center Operations Agreement

STAFF CONTACT
Nicky Vu, Housing Specialist
[email protected]
(650) 522-7229
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Page 1 of 6 ends

AGREEMENT TO PROVIDE SERVICES TO OPERATE

THE WORKER RESOURCE CENTER
This agreement (“Agreement”) is made and entered into this ____ ________________ by and between the SAMARITAN HOUSE (“ORGANIZATION”), a nonprofit corporation, and the City of San Mateo (“CITY”), a municipal corporation.

The CITY wishes to provide employment, social, educational and other services promoting public health and safety for workers at the Worker Resource Center.

The ORGANIZATION is willing to and capable of performing such community services.

To achieve common goals in the community, the CITY and the ORGANIZATION agree as follows:

I. CITY AND ORGANIZATION RESPONSIBILITIES:

A. CITY will provide the site for a Workers Resource Center to provide employment, social and educational services and other services promoting public health and safety.

B. CITY has secured a lease for space for the Workers Resource Center located at 171 N. Amphlett Blvd, San Mateo, CA (see Attachment A “Lease”) and agrees to pay for the base rent, common area operating expenses, and utilities. The owner of the property is Sakai Family Partnership (“Lessor”) and has designated SC Properties as its agent and property manager (“Property Manager”).

C. ORGANIZATION shall not violate any provisions of the Lease D. ORGANIZATION will provide and may partner with other social and educational agencies to provide, services, including but not limited to educational services, health, nutrition, medical, basic skills classes.

E. CITY will fund the Workers Resource Center. ORGANIZATION may assist CITY in seeking and securing additional funding for center operations, but ORGANIZATION is under no obligation to do so.

F. ORGANIZATION is responsible for the safety, security and operations of the facility, including the performance of all routine custodial and maintenance duties, maintenance of consumable supplies, and litter control at the facility.

G. ORGANIZATION shall contact Property Manger for repairs that are the responsibility of the Lessor as described in paragraph 7.2 of the Lease.

ORGANIZATION shall copy CITY on any correspondence with Property Manager.
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Page 2 of 6 ends

H. ORGANIZATION shall perform all services under the Agreement in accordance with all applicable Federal, State, County and municipal laws, ordinances, regulations, and funding mandates, including requirements pertaining to confidentiality, civil rights, and quality assurance.

I. ORGANIZATION will timely and accurately complete, sign, and submit all necessary documentation of compliance
J. ORGANIZATION will adhere to the Operational Goals as identified in Attachment B– Operational Goals.

II. AGREEMENT TERM: The services to be performed under this Agreement will commence on July 1, 2023, and will continue until June 30, 2025, unless terminated earlier by either party in accordance with the terms of this Agreement.

III. FUNDING: Funding by CITY to ORGANIZATION shall be on the following terms:

A. Funding for FY2023-24 and FY 2024-25 shall not exceed $195,000 annually as defined in Attachment C-Worker Resource Center Budget. ORGANIZATION shall provide an invoice for each request for payment on a monthly basis based on hours worked and overhead incurred in accordance with the expenses described in the budget in Attachment C. CITY will pay the invoice within 30 days of receipt.

IV. FISCAL RESPONSIBILITIES OF ORGANIZATION: ORGANIZATION shall:

A. Establish and maintain a written system of accounts for budgeted funds that conforms with generally accepted accounting principles. Such system of accounts shall be subject to review, approval and inspection of CITY.

B. Document all costs by maintaining complete and accurate records of all financial transactions, including, but not limited to, contracts, invoices, time cards, cash and charge receipts, vouchers, cancelled checks, bank statements and/or other official documentation evidencing in proper detail the nature and propriety of all charges.

C. If ORGANIZATION has an independent fiscal audit or other annual financial status report compiled, a copy shall be provided to the CITY within 30 days of completion and acceptance by the ORGANIZATION Board of Directors.

D. ORGANIZATION is liable for repayment of disallowed costs. Disallowed costs may be identified through audits, examination of invoices, monitoring or other sources.

ORGANIZATION shall be afforded the opportunity to respond to any adverse findings which may lead to disallowed costs. Disallowed costs are costs not allowed and approved by CITY. Disallowed costs are generally defined as funds expended for purposes which do not directly further the common goals of ORGANIZATION, and CITY, set forth in the second paragraph on page 1 of this Agreement. 132 of 536

Page 3 of 6 ends

V. RECORDS, REPORTS AND AUDITS OF ORGANIZATION:

A. ORGANIZATION shall maintain records, including but not limited to books, financial records, supporting documents, statistical records, personnel, property, performance measures as identified in Attachment D – Performance Measures, and all other pertinent records sufficient to reflect properly (1) all direct and indirect costs of whatever nature claimed to have been incurred and anticipated to be incurred to perform this Agreement, and (2) all other matters covered by this Agreement.

B. Preservation of Records: ORGANIZATION shall preserve and make available its records related to this Agreement for the following periods:

1.Until the expiration of three (3) years from the date of the submission of the annual financial status report;

2.For such longer period, if any, as is required by applicable law; or

3.If this Agreement is completely or partially terminated, the records relating to the work terminated shall be preserved and made available for a period of three (3) years from the date of any resulting final settlement.

VI. TERMINATION:

A. In the event funds are not available from CITY or other third-party entities, CITY may terminate the Agreement upon 90 days written notice and is under no obligation to continue to provide services as identified in Section 1. If the Agreement is terminated in this manner, ORGANIZATION shall be reimbursed for all valid expenditures made up to and including the effective date of the termination.

B. Notwithstanding availability of funding, the CITY or ORGANIZATION may terminate this Agreement with 90 days’ notice if CITY or ORGANIZATION deems it to be in its best interest to discontinue the program. If the Agreement is terminated in this manner, CITY agrees to reimburse ORGANIZATION for all valid expenditures made up to and including the effective date of the termination.

VII. INTEREST OF PUBLIC OFFICIALS: No members, officers, employees or agents of the CITY, shall have any interest, direct or indirect, in this Agreement or a related subcontract.

VIII. INSPECTION OF PROGRAM: It is understood that CITY will periodically review ORGANIZATION's program.

IX. PROGRAM INCOME: ORGANIZATION shall record program income as part of the financial transactions of the program. Any income generated from the program may be used to offset expenses and shall not be considered as funding stipulated in Article 3 in this Agreement.

X. REVERSION OF ASSETS: If the ORGANIZATION is dissolved or ceases to exist, any unexpended program funds in the possession of ORGANIZATION at the time of dissolution 133 of 536

Page 4 of 6 ends

shall be immediately returned to CITY.

XI. ASSIGNABILITY: ORGANIZATION shall not assign this Agreement and shall not transfer any interest in this Agreement without the prior written consent of CITY.

XII. INDEMNIFICATION:

A. Each party shall indemnify and hold harmless the other party and its agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney’s fees, arising out of or resulting from its performance of its obligations set forth in this Agreement, excepting claims, damages, losses and expenses resulting from the sole negligence or willful misconduct of the other party for which that party will be responsible.

B. CITY shall further indemnify ORGANIZATION from such claims, damages, losses and expenses arising out of the use or occupancy of the premises by any guests or invitees, except to the extent that any such claim, damage, loss, or expense is caused by ORGANIZATION’s failure to operate and maintain the premises in a safe condition during the hours of operation of the center.

C. The intent of this section is to provide that if someone is injured on the premises during its hours of operation because of a condition caused by ORGANIZATION, its agents or employees, or a condition that ORGANIZATION or its agents or employees in exercising reasonable efforts could have addressed, the ORGANIZATION shall bear the loss. If someone is injured on the premises at any time because of faulty construction or improper maintenance, then the CITY shall bear the risk of premises liability.

D. For purposes of the Agreement, “claims” means any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort or contract, law or equity or otherwise), charges, assessments, fines, and penalties of any kind (including consultant and expert expenses, court costs, and attorney fees actually incurred).

E. The clauses of this Article 12 shall survive the expiration or earlier termination of this Agreement until all claims against the parties hereto involving any of the indemnified matters are fully, finally, and absolutely barred by the applicable statute of limitations.

XIII. INSURANCE: ORGANIZATION shall provide and maintain:

A. Commercial General Liability Insurance, occurrence form, at least as broad as Insurance Services Office (ISO) form CG 0001, with a limit of not less than $1,000,000 each occurrence and a $3,000,000 umbrella policy. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or be no less than two (2) times the occurrence limit.

B. Automobile Liability Insurance, at least as broad as ISO Form CA 0001, with a limit of not less than $1,000,000 per accident for bodily injury and property damage. Such 134 of 536

Page 5 of 6 ends

insurance shall include coverage for owned, hired, and non-owned automobiles.

C. Workers Compensation in at least the minimum statutory limits, with Employer’s Liability Insurance limits of at least $1,000,000 per accident.

D. General Provisions for all insurance. The general and auto liability insurance policies are to contain, or be endorsed to contain, the following:

1. Include the City of San Mateo, its elected and appointed officials, employees, volunteers and agents as insureds with respect to this Agreement and the performance of services in this Agreement (does not apply to workers compensation or auto insurance). The coverage shall contain no special limitations on the scope of its protection to the above-designated insureds.

2. Be primary with respect to any insurance or self-insurance programs of City, its elected and appointed officials, employees, and agents.

3. A waiver of all rights of subrogation against the City of San Mateo, its elected and appointed officials, employees, volunteers and agents for losses paid under the terms of any policy which arise from the work performed by the CONSULTANT.

This provision also applies to the Workers’ Compensation policy.

4. Be evidenced, prior to commencement of services, by properly executed policy endorsements in addition to a certificate of insurance.

5. No changes in insurance may be made without the written approval of the City Attorney's Office.

XIV. NONDISCRIMINATION:

A. No person shall, on the grounds of race, color, national origin, religious affiliation or non-affiliation, marital status, medical condition, sex, age, disability status, sexual orientation or political affiliation, be excluded from participation in, be denied the benefits, or be subjected to discrimination or harassment under this Agreement.

B. ORGANIZATION shall ensure equal employment opportunity based on objective standards of recruitment, selection, promotion, classification, compensation, performance evaluations, and management relations, for all employees under this Agreement.

ORGANIZATION's personnel policies shall be made available to CITY upon request.

XV. PROJECT REPRESENTATION: The CITY and ORGANIZATION hereby designate the following agents to act as project representatives and receive all notices in the execution of this Agreement.

CITY :

Eloiza Murillo-Garcia
Housing and Neighborhood Services Manager
City of San Mateo
330 West 20th Avenue
San Mateo, CA 94403
ORGANIZATION:

Laura Bent
Chief Executive Director
Samaritan House
4031 Pacific Blvd.

San Mateo, CA 94403
135 of 536

Page 6 of 6 ends

IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have affixed their hands.

SAMARITAN HOUSE
By:

Laura Bent
Date:

CITY OF SAN MATEO
By:

Drew Corbett, City Manager
Date:

APPROVED AS TO FORM:
_________________________
Mazarin Vakaria, Assistant City Attorney
136 of 536

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ATTACHMENT B

WORKER RESOURCE CENTER

OPERATIONAL GOALS
• Center will be open during peak periods of casual labor work solicitation, generally early mornings to mid-day up to seven days a week
• Center operations will be scaleable to needs
• ORGANIZATION will perform intake and assessment of both workers and employers • ORGANIZATION will use an equitable system to enable workers to match with job providers
• ORGANIZATION will integrate other services onsite with a consortium of providers: ESL classes, clothing, nutrition, health screening, etc.
• ORGANIZATION will only provide services and resource referrals to registered WRC workers
• ORGANIZATION will inform potential employers of their obligation to insure workers for on-the-job injuries.
• ORGANIZATION will use volunteers
• CITY and ORGANIZATION will perform outreach and marketing of center to laborers and job providers at least twice a month
• ORGANIZATION will abide by Center rules and regulations • ORGANIZATION will involve workers in developing rules and regulations • ORGANIZATION will involve workers in facility maintenance • ORGANIZATION will prepare Data collection/monthly reports on use of center to measure center effectiveness
• ORGANIZATION will Regularly liaison with CITY
• ORGANIZATION will coordinate with CITY to secure third party funding for programs and activities.
157 of 536

ATTACHMENT C
BUDGET
158 of 536
Samaritan House
PROPOSED Operating Budget ‐ Worker Resource Center
Fiscal Year 2022 (7/1 ‐ 6/30)
8130
Line Item
Worker Resource
Center
Income
Samaritan House General Fund 81,037
Business/Corp Contributions                            ‐ Government 195,000
Other Revenue                            ‐
Total Income                   276,037
In‐Kind Income 36,480
Net Funds Release from Restrictions                            ‐ Total INCOME available for FY22                   312,517 * Total Income Plus In‐Kind Contributions &  Release from Restrictions Expense
Personnel Expense
Salaries & Wages 142,153
Payroll Taxes 11,589
Employee Benefits 30,453
Worker's Compensation 431
Retirement Benefits 3,696
Total Personnel Expense                   188,322
Shared Personnel Expense
Shared Personnel Expenses 20,483
Shared Volunteer Exp ‐ Personnel 9,702
Total Shared Personnel Expense                      30,184 Total Personnel Expense & Shared Personnel Expense                   218,506 Operating Expense
Office Supplies 500
Program Supplies / Meals 33,002
Postage & Mail 200
Printing & Mailing Services 200
Communications/Telephone 9,665
Housekeeping                           300
Mileage Reimbursement 295
Employee Training 800
Equipment Rental 1,596
Insurance Expense 210
Outside Services 3,807
Other Fees & Charges 390
In‐Kind Expenses 36,480
Total Operating Expense                      87,445
Shared Operating Expense
Shared Operating Expense 6,114
Shared Volunteer Expenses 451
Total Shared Operating Expense                        6,565 Total Operating Expense & Shared Operating Expense                      94,010 Total Personnel and Operating Expenses by Function 312,517 Net Income 0
WRC
159 of 536

ATTACHMENT D

WORKER RESOURCE CENTER

MEASURES OF SUCCESS
Reported Quarterly:
• Daily number of workers (clients) utilizing Worker Resource Center (WRC) • Number of unduplicated workers each month
• Number of workers utilizing additional services each month • Daily number of jobs available at the WRC
• Placement ratio of workers to jobs available
• Number of job seekers daily on the streets (data provided by City of San Mateo Police Department)
• Police calls for service in the immediate area surrounding the Worker Resource Center • Workers express satisfaction with WRC measured by monthly survey • Job providers express satisfaction with WRC measured by survey provided to every job provider.
• Description of workers involvement in operations of WRC and community service activities
• Description of types of program/services provided at WRC • Description of outreach efforts to workers and job providers • Efforts to obtain third party funding or volunteer services at the WRC Reported Annually:
• Ensure budget is adhered to
• Local residents/owners, businesses and other stakeholders express satisfaction with impacts of WRC (measured by community survey)
160 of 536

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: 23-3133 File ID: 23-7613 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Community Development Department
MEETING DATE: June 20, 2023
SUBJECT:

Community Development Block Grant Samaritan House – Appropriation RECOMMENDATION:

Adopt a Resolution to authorize the appropriation of funds in the amount of $56,031.02 from the Community Development Block Grant Fund to the Community Development Block Grant Community Facilities project to complete a contract with Samaritan House for public facilities upgrades.

BACKGROUND:

The Community Development Block Grant (CDBG) Program provides flexible funding for community development projects and programs to assist individuals and families from extremely low- to moderate-income households as defined by the Department of Housing and Urban Development (HUD). The City receives an annual entitlement grant based on a national formula and has participated in this program since 1977. City Council adopted the fiscal year 2022-23 CDBG Annual Plan on May 2, 2022.

Since 1974, Samaritan House has been a vital service provider in the community, addressing inequity for the underserved, low-income residents of San Mateo County through increased access to shelter and housing assistance; medical and dental clinics; clothes for children; personalized case management; and much more. The City approved Samaritan House’s request of $100,000 for public facilities upgrades in the 2022-23 CDBG Annual Plan. Identifying funding sources and selection of contractors have delayed construction, which is now expected to take place throughout the 2023-24 program year. To allow completion of the project, the contract will terminate on June 30, 2024.

The City of San Mateo maintains capital improvement project for public facilities improvements which use the CDBG funding, which the Samaritan House contract would draw from. At the beginning of fiscal year 2022-23, there was $43,968.98 of remaining CDBG funds in this project. The adopted 2022-23 budget outlined $100,000 for public facilities improvements in the CDBG program based upon the annual award from HUD. Therefore, $56,013.02 of CDBG funds must be appropriated into the project for the upcoming program year budget, which will increase the balance to $100,000.

BUDGET IMPACT:

The Community Development Block Grant Community Facilities Project (310520) budget currently has a remaining balance of approximately $43,969. Adoption of the resolution will appropriate an additional amount of $56,031 from the CDBG fund balance to this project, which will increase the remaining project budget to $100,000. With the approval of the appropriation, sufficient funding will be available to complete the Samaritan House contract.

The CDBG grant funding operates on a reimbursement basis. All CDBG expenditures are reimbursed by HUD on a quarterly basis, therefore there is no impact to the General Fund. 161 of 536
ENVIRONMENTAL DETERMINATION:

This budget appropriation 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
Nicky Vu
Housing Specialist
[email protected]
(650) 522-722
162 of 536

CITY OF SAN MATEO
RESOLUTION NO. (2023)
APPROPRIATE $56,031 FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND BALANCE TO THE CAPITAL IMPROVEMENT PROJECT 310520 (COMMUNITY DEVELOPMENT BLOCK GRANT

COMMUNITY FACILITIES)
WHEREAS, the City received $770,897 in federal funding from the U.S. Department of Housing and Urban Development for the Community Development Block Grant (CDBG) program for the 2022-2023 annual grant; and
WHEREAS, the City Council adopted the fiscal year 2022-23 CDBG Annual Plan which approved $100,000 for Samaritan House facility upgrades on May 2, 2022; and WHEREAS, the Samaritan House renovation contract would draw from Capital Improvement Project 310520 (Community Development Block Grant Community Facilities), which had a balance of $43,969 of remaining at the beginning of FY 2022-2023; and
WHEREAS, construction for the project has been delayed and is now expected to take place throughout the 2023-2024 program year; and
WHEREAS, a budget appropriation of $56,031 from the CDBG fund to Capital Improvement Project 310520 (Community Development Block Grant Community Facilities) is required to address the deficit; and WHEREAS, Section 5.13(a) of the City Charter requires City Council approval by resolution for supplemental appropriations to the City budget.
that:

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES 1 . This budget appropriation 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 . An appropriation of funds in the amount of $56,031 from the Community Development Block Grant Fund restricted fund balance to the Capital Improvement Project 310520 (Community Development Block Grant Community Facilities) for a total budget of $100,000 is approved. 163 of 536

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: 26-3111 File ID: 23-7647 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Community Development Department
MEETING DATE: June 20, 2023
SUBJECT:

On-Call Professional Planning Services - Agreement
RECOMMENDATION:

Approve an agreement with Good City Company for on-call professional technical planning services for a period of five years from July 1, 2023 through June 30, 2028 in the amount not to exceed $750,000 and authorize the Community Development Director to execute the agreement in substantially the form presented.

BACKGROUND:

The Community Development Department (CDD) frequently utilizes consultants to provide various specialized professional services to support the processing of planning and building applications. Given the volume of planning applications that CDD receives and processes, staff works with consultants on an as-needed basis, based on the complexity and specific needs of an application. To expand the group of consultants available to support the planning application review process, CDD issued a request for qualifications (RFQ) in fall of 2022 to identify firms interested in and qualified to provide various specialized planning support services on an on-call basis.

Good City Company submitted a statement of qualifications that reflected their knowledge, technical expertise and broad experience in various aspects of Planning that the City anticipates in the coming years. The City also has an existing contract with Good City Company for Planning review and technical support services, which expires on June 30, 2023. To continue their technical support on the Housing Element and General Plan Update, and with other planning review services, staff is recommending that the City continue to use Good City Company to support Community Development Department operations. The new agreement would be for a five-year term, ending on June 30, 2028, and have a not-toexceed amount of $750,000.

BUDGET IMPACT:

The services provided by Good City Company would either be pass-through funds relating to private development applications and paid for by the applicant or would be accounted for in the Department budget associated with City initiatives or advanced planning projects.

ENVIRONMENTAL DETERMINATION:

NOTICE PROVIDED
All meeting noticing requirements were met.
164 of 536

CITY OF SAN MATEO

ATTACHMENTS
Att 1 – Agreement with Good City Company

STAFF CONTACT
Manira Sandhir, Planning Manager
[email protected]
650-522-7203
165 of 536
Professional Services Page 1 of 11
Rev 9/22

AGREEMENT WITH GOOD CITY COMPANY

FOR PROFESSIONAL CONSULTANT SERVICES
FOR
On-Call Professional Planning 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 Good City Company (Good City), a California Corporation (“CONSULTANT”), whose address is 1351 Laurel St, San Carlos, CA 94070.

RECITALS:

A. CITY desires certain on-call professional and technical Planning services hereinafter described.

B. CITY desires to engage CONSULTANT to provide these on-call professional and technical Planning services by reason of its qualifications and experience for performing such services and CONSULTANT 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 CONSULTANT under this Agreement is as described in Exhibit A to this Agreement, attached and incorporated by reference.

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

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

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

CONSULTANT 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.
166 of 536
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Rev 9/22
SECTION 3 - DUTIES OF CITY
CITY shall provide pertinent information regarding its requirements for the project.

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

SECTION 4 - TERM
The services to be performed under this Agreement shall commence on July 1, 2023 and be completed on June 30, 2028.

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 CONSULTANT a fee not to exceed $750,000, pursuant to rates stated in Exhibit B to this Agreement, 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 CONSULTANT. CONSULTANT agrees to cease all work under this Agreement upon receipt of said written notice.

Upon termination and upon CITY's payment of the amount required to be paid, documents become the property of CITY, and CONSULTANT shall transfer them to CITY upon request without additional compensation.

SECTION 7 - OWNERSHIP OF DOCUMENTS
All documents prepared by CONSULTANT in the performance of this Agreement, although instruments of professional service, 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 CONSULTANT in connection with the performance of this Agreement are confidential until released by CITY to the public. CONSULTANT shall not make any such documents or information available to any individual or organization not employed by CONSULTANT or CITY without the written consent of CITY before any such release. 167 of 536
Professional Services Page 3 of 11
Rev 9/22
SECTION 9 - INTEREST OF CONSULTANT
CONSULTANT 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.

SECTION 10 - CONSULTANT'S STATUS
It is expressly agreed that in the performance of the professional services required under this Agreement, CONSULTANT 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 CONSULTANT an agent or employee of CITY while providing services under this Agreement.

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

SECTION 12 - INSURANCE
CONSULTANT shall procure and maintain for the duration of the contract and three years thereafter (five years for building or major improvements) the insurance specified in Exhibit C to this Agreement.

SECTION 13 - NON-ASSIGNABILITY
Both parties hereto recognize that this Agreement is for the personal services of CONSULTANT and cannot be transferred, assigned, or subcontracted by CONSULTANT without the prior written consent of CITY.

SECTION 14 - RELIANCE UPON PROFESSIONAL

SKILL OF CONSULTANT
It is mutually understood and agreed by and between the parties hereto that CONSULTANT is skilled in the professional calling necessary to perform the work agreed to be done under this Agreement and that CITY relies upon the skill of CONSULTANT to do and perform the work in the most skillful manner, and CONSULTANT agrees to thus perform the work. The acceptance of CONSULTANT's work by CITY does not operate as a release of CONSULTANT from said obligation. 168 of 536
Professional Services Page 4 of 11
Rev 9/22
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 - SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

SECTION 17 - 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 Agreement 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 18 - NON-DISCRIMINATION
CONSULTANT warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither CONSULTANT 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 19 - 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. 169 of 536
Professional Services Page 5 of 11
Rev 9/22
SECTION 20 - LITIGATION
CONSULTANT shall testify at CITY'S request if litigation is brought against CITY in connection with CONSULTANT's services under this Agreement. Unless the action is brought by CONSULTANT, or is based upon CONSULTANT's wrongdoing, CITY shall compensate CONSULTANT for preparation for testimony, testimony, and travel at CONSULTANT's standard hourly rates at the time of actual testimony.

SECTION 21 - NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows:

To CITY: Manira Sandhir, AICP
City of San Mateo
330 W. 20th Avenue
San Mateo, CA 94403
To CONSULTANT: Good City Company
Attn: Aaron Aknin, Principal
1351 Laurel Street
San Carlos, CA 94070
SECTION 22 - AGREEMENT CONTAINS ALL
UNDERSTANDINGS; AMENDMENT
This document represents the entire and integrated agreement between CITY and CONSULTANT 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 CONSULTANT.

SECTION 23 - AUTHORITY TO ENTER INTO AGREEMENT
CONSULTANT has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.

SECTION 24 - 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.
170 of 536
Professional Services Page 6 of 11
Rev 9/22
[SIGNATURE PAGE FOLLOWS]
171 of 536
Professional Services Page 7 of 11
Rev 9/22
IN WITNESS WHEREOF, CITY OF SAN MATEO and Good City Company have executed this Agreement the day and year first above written.

CITY OF SAN MATEO CONSULTANT
Drew Corbett
City Manager
Date Aaron Aknin
Its Authorized Agent
Principal
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)
Mazarin Vakharia
Assistant City Attorney
Date
Attachments:

Exhibit A: Scope of Services
Exhibit B: Fee Rates
Exhibit C: Insurance Requirements
172 of 536
Professional Services Page 8 of 11
Rev 9/22

EXHIBIT A

SCOPE OF SERVICES
Perform on-call professional technical planning services, including:

1. Specialized Planning Services: Site planning, project management (of long-planning range planning processes and development applications), staff report writing, design review, building permit review, Planning Commission facilitation, and other specialized project assistance.

2. Policy Planning: Assist with creation and facilitation of policy planning initiatives such as General Plans, Specific Plans, Master Plans, Downtown/Transit Corridor Plans, Transportation Demand Management Strategies, and Zoning Codes.

3. Housing Strategy: Assist in developing strategies to produce more housing for all income levels and implement Housing Element programs and policies.

4. Policy Implementation: Implement and track Long-Range Planning documents, such as General Plans, Housing Elements, Downtown Plan, and Specific Plans.

5. Permit Streamlining & Development Review: Review and make recommendations related to optimizing the development and project review processes, that meet the needs of the City and applicant, and follow State legislation and other regulatory agencies.

6. Transportation Demand Management: Implement transportation-related strategy, policy planning, and monitoring services for development projects as part of the entitlement review and condition compliance.

7. California Environmental Quality Act (CEQA): Complete, facilitate, or manage consultants to complete initial reviews, categorical exemptions, negative declarations, and monitor projects consistent with CEQA.

8. Outreach Support: Facilitate community meetings or open houses - whether they relate to a specific development project, policy planning topic, or broader community topics. 173 of 536
Professional Services Page 9 of 11
Rev 9/22

EXHIBIT B

FEE RATES
174 of 536
Professional Services Page 10 of 11
Rev 9/22

EXHIBIT C

INSURANCE REQUIREMENTS

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

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if CONSULTANT 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.

4. Professional Liability (Errors and Omissions): Insurance appropriate to the CONSULTANT’s profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate If the CONSULTANT maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.

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 CONSULTANT; and on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONSULTANT 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 CONSULTANT’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 CONSULTANT’s insurance coverage shall be primary insurance as respects the City, its elected and appointed officials, employees, and agents. Any insurance or self-insurance maintained by the City, its elected and appointed officials, employees, or agents shall be excess of the CONSULTANT’s insurance and shall not contribute with it. 175 of 536
Professional Services Page 11 of 11
Rev 9/22
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.

Waiver of Subrogation
CONSULTANT hereby grants to City a waiver of any right to subrogation which any insurer of said CONSULTANT may acquire against the City by virtue of the payment of any loss under such insurance.

CONSULTANT 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 CONSULTANT 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
CONSULTANT 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 CONSULTANT’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. 176 of 536

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: 72-4674 File ID: 23-7471 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 20, 2023
SUBJECT: Sewer Service Charges for Fiscal Years 2023-24 to 2027-28 – Ordinance Adoption RECOMMENDATION:

Adopt 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:

On June 5, 2023, following a determination that a majority protest does not exist, the City Council introduced the attached proposed ordinance (Attachment 1) to amend San Mateo Municipal Code Section 3.54.030 “Sewer Service Charges” establishing maximum sewer rates effective August 1, 2023 through June 30, 2028.

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, necessary reserves, and future capital expenditures. The proposed rate schedule sets the sewer service charge rates to increase a maximum of 3% each year. 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
All meeting noticing requirements were met.

ATTACHMENTS
Att 1 – Proposed Ordinance

STAFF CONTACT
Deryk Daquigan, Engineering Manager
[email protected]
(650) 522-7287
Matt Fabry, Deputy Director
[email protected]
(650) 522-7309
177 of 536

CITY OF SAN MATEO
Azalea Mitch, Director of Public Works
[email protected]
(650) 522-7303
178 of 536

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, following the public hearing, it was determined that a majority protest did not exist; 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:
179 of 536
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. 180 of 536

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Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 22 Section Name: PUBLIC HEARING Account Number: 10-2021 File ID: 23-7651 TO: City Council
FROM: Drew Corbett, City Manager
PREPARED BY: Finance Department
MEETING DATE: June 20, 2023
SUBJECT:

Fiscal Year 2023-24 Operating and Capital Budgets and Gann Appropriations Limit Adoption and Fiscal Years 2023-28 Capital Improvement Program – Approval
RECOMMENDATION:

Adopt Resolutions to approve the fiscal year 2023-24 operating and capital budgets, the 2023-24 position budget, the fiscal year 2023-24 Gann appropriations limit, and the fiscal years 2023-28 Capital Improvement Program.

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 and held the first public hearing on June 5, 2023. In addition the Measure S Oversight Committee recommended that the City Council approve the Measure S-funded programs and capital improvement projects at its regular meeting on May 18, 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 4. 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.
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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 Educational Revenue Augmentation Fund (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 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. Property tax in-lieu of vehicle license fees has 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.
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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.

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.
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• 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 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 184 of 536

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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 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
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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 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:
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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. 187 of 536

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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
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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
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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 190 of 536

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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 to be $78.4 million.

ENVIRONMENTAL DETERMINATION:

This budget adoption 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: Fiscal Year 2023-24 Operating and Capital budgets Att 2 - Proposed Resolution: Fiscal Years 2023-28 Capital Improvement Program Att 3 - Proposed Resolution: Fiscal Year 2023-24 Gann Appropriations Limit Att 4 - Proposed 2023-24 Budget Book

STAFF CONTACT
Rich Lee, Director, Finance
[email protected]
(650) 522-7102
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RESOLUTION NO. ___(2023)
ADOPTING THE 2023-24 CITY BUDGET
WHEREAS, the City Council held public hearings on the Budget and Capital Improvement Program, as required by the City Charter section 5.02; and
WHEREAS, budget required to operate and support the City departments and to pay the bonded indebtedness of the City, or any portion or district therein, is $239,083,971 for Operating and $78,032,026 for the Capital Improvement Program (CIP) for fiscal year July 1, 2023 to June 30, 2024; and WHEREAS, Municipal Code Section 3.50.060, Fiscal Accountability Provisions, requires that the amount of revenue generated by the one-quarter cent Measure S Transactions and Use Tax and how it was used be included in the annual financial audit; and
WHEREAS, budgeted resources and requirements are sufficient to meet Council’s adopted financial policy that the General Fund reserve will be maintained in an amount equal to at least three months, or 25 percent, of the annual General Fund operating expenditure budget to be used in the event of significant financial emergency.

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

1. In accordance California Environmental Quality Act (CEQA) Guidelines section 15378(b)(4), adoption of the 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.

2. The City Budget, providing for expenditures and appropriations in the sum of $239,083,917 for Operating and $78,032,026 for Capital Improvement Program, for a total of $317,115,943 for the fiscal year July 1, 2023 through June 30, 2024, set forth the accompanying Administrative Report and its attachments, is approved.

3. The Measure S spending plan, which is included as part of the City Budget, $8,999,694 in operating expenditures and transfers out for fiscal year July 1, 2023 to June 30, 2024 that includes:
a. $1,840,189 in salaries and benefits covering 3.0 Full Time Equivalent (FTE) merit Police Officers, 1.35 FTE merit Library Assistant I/II, 1.0 FTE merit Community Services Coordinator,

1.0 FTE merit Police Sergeant, and 0.16 FTE merit Community Services Supervisor; and b. $271,805 in operating expenditures that consist of $75,327 in the Library Department and $196,478 in the Parks and Recreation Department; and
c. $3,850,000 in transfers to CIP that consist of $1,000,000 for Police Department Roof Drainage Improvements, $800,000 for Citywide Street Reconstruction, $400,000 for Stormwater System Management and Improvement Program, $250,000 for the Neighborhood Traffic Improvements project, $900,000 for External Radio Infrastructure, and $500,000 for Synthetic Field Replacement; and
d. $339,032 in transfers to the General Fund that represents year five of ten to repay the advance funding from the General Fund; and
e. $2,691,887 in debt service on street and flood control lease revenue bonds; is approved; and
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4. The FTE positions by department as noted in the table below for fiscal year 2023-24 are hereby approved the pay period that includes July 1, 2023; and

CITY ATTORNEY
City Attorney 1.00
Assistant City Attorney 3.00
Executive Secretary to City Attorney 1.00
Total Merit 5.00
Total Per Diem 0.00
Total FTE 5.00

CITY CLERK
City Clerk 1.00
Assistant to the City Clerk 1.00
Deputy City Clerk 1.00
Management Analyst I/II 1.00
Total Merit 4.00
Total Per Diem 0.23
Total FTE 4.23

CITY COUNCIL
City Council Member 5.00
Total Merit 5.00
Total Per Diem 0.00
Total FTE 5.00

CITY MANAGER
City Manager 1.00
Assistant City Manager 1.00
Communications Manager 1.00
Economic Development Manager 1.00
Executive Secretary to City Manager 1.00
Management Analyst I/II 1.00
Sustainability Analyst 1.00
Total Merit 7.00
Total Per Diem 0.48
Total FTE 7.48
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COMMUNITY DEVELOPMENT
Community Development Director 1.00
Administrative Assistant 4.00
Administrative Technician 2.00
Associate Planner 6.00
Building Inspector I/II 7.00
Building Official 1.00
Business Manager 1.00
Code Enforcement Manager 1.00
Code Enforcement Officer I/II 3.00
Deputy Building Official 1.00
Deputy Community Development Director 1.00
Development Review Technician 6.00
Housing and Neighborhood Services Manager 1.00
Housing Specialist I/II 1.00
Inspection Supervisor 1.00
Managing Arborist 1.00
Office Assistant I/II 2.00
Permit Center Supervisor 1.00
Plan Check Supervisor 1.00
Plan Checker Engineer 5.00
Planning Manager 1.00
Principal Planner 2.00
Senior Business Systems Analyst 1.00
Senior Code Enforcement Officer 1.00
Senior Development Review Technician 1.00
Senior Management Analyst 1.00
Senior Planner 1.00
Total Merit 55.00
Total Per Diem 1.18
Total FTE 56.18

FINANCE
Finance Director 1.00
Accountant I/II 2.00
Accounting Assistant I/II 4.00
Accounting Manager 1.00
Budget Manager 1.00
Deputy Finance Director 1.00
Payroll Supervisor 1.00
Payroll Technician I/II 1.00
Senior Accountant 2.00
Senior Accounting Assistant 2.00
Senior Management Analyst 1.00
Total Merit 17.00
Total Per Diem 0.00
Total FTE 17.00
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HUMAN RESOURCES
Human Resources Director 1.00
Human Resources Technician 4.00
Senior Human Resources Analyst 5.00
Senior Human Resources Analyst Risk Manager 1.00
Total Merit 11.00
Total Per Diem 0.20
Total FTE 11.20

INFORMATION TECHNOLOGY
Information Technology Director 1.00
Consulting and Applications Manager 1.00
Customer Service Manager 1.00
GIS Coordinator 1.00
GIS Technician I/II 1.00
IS Support Technician I/II 2.00
Network Analyst 1.00
Senior IS Support Technician 1.00
Systems Analyst I/II 3.00
Systems and Network Manager 1.00
Web Specialist 1.00
Total Merit 14.00
Total Per Diem 0.48
Total FTE 14.48

LIBRARY
City Librarian 1.00
Administrative Technician 1.00
Community Services Coordinator 0.50
Deputy City Librarian 1.00
Executive Assistant 1.00
Librarian II 9.63
Library Assistant I/II 8.75
Library Technology Specialist 1.00
Literacy Program Coordinator 1.00
Literacy Specialist 0.63
Senior Accounting Assistant 1.00
Senior Library Assistant 3.00
Senior Management Analyst 1.00
Supervising Librarian 3.00
Supervising Library Assistant 1.00
Total Merit 34.51
Total Per Diem 19.81
Total FTE 54.32
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PARKS AND RECREATION
Parks and Recreation Director 1.00
Administrative Assistant 1.00
Administrative Technician 1.00
Business Manager 1.00
Communications and Public Relations Analyst 1.00
Community Services Coordinator 9.00
Community Services Section Manager 2.00
Community Services Supervisor 7.00
Custodian 1.00
Deputy Parks and Recreation Director 1.00
Golf Course Maintenance Supervisor 1.00
Golf Equipment Maintenance Specialist 1.00
Golf Services Manager 1.00
Irrigation Specialist 2.00
Landscape Laborer 3.00
Landscape Maintenance Worker I/II 15.00
Lead Teacher 4.00
Managing Arborist 1.00
Park and Landscape Maintenance Supervisor 1.00
Park and Landscape Manager 1.00
Program Assistant I/II 1.00
Project Manager I/II 1.00
Senior Accounting Assistant 1.00
Senior Park Landscape Maintenance Worker 3.00
Senior Park Ranger 1.00
Senior Program Assistant 3.00
Tree Maintenance Specialist 1.00
Total Merit 65.50
Total Per Diem 49.08
Total FTE 114.58
POLICE
Chief of Police 1.00
Administrative Assistant 2.00
Administrative Technician 1.00
Business Manager 1.00
Community Service Officer I/II 4.00
Communications and Public Relations Analyst 1.00
Crime and Intelligence Analyst 1.00
Dispatch Services Supervisor 2.00
Dispatcher I/II 14.00
Executive Assistant 1.00
Facilities Coordinator 1.00
Management Analyst I/II 1.00
Police Captain 2.00
Police Digital Forensic Specialist 1.00
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Police Evidence Analyst 1.00
Police Lieutenant 6.00
Police Officer 90.00
Police Records Specialist I/II 5.00
Police Records Supervisor 2.00
Police Sergeant 17.00
Police Technical Services Administrator 1.00
Senior Business Systems Analyst 1.00
Senior Community Service Officer 1.00
Senior Police Records Specialist 2.00
Vehicle Abatement Officer 2.00
Total Merit 161.00
Total Per Diem 9.40
Total FTE 170.40

PUBLIC WORKS
Public Works Director 1.00
Administrative Assistant 6.00
Administrative Technician 2.00
Associate Engineer 14.00
Associate Transportation Planner 1.00
Building Maintenance Supervisor 1.00
Business Manager 1.00
Calibration Technician 1.00
Central Services Worker 1.00
Communications and Public Relations Analyst 1.00
Construction Inspector I/II 4.00
Database Specialist 1.00
Deputy Director 2.00
Downtown Coordinator 1.00
Engineering Manager 3.00
Engineering Technician I/II 6.00
Environmental Compliance Inspector 3.00
Environmental Programs Coordinator 1.00
Executive Assistant 1.00
Facilities and Fleet Services Manager 1.00
Facility Maintenance Worker 3.00
Field Maintenance Manager 1.00
Fleet Services Supervisor 1.00
Instrument Control Technician 1.00
Laboratory Analyst I/II 3.00
Laboratory Supervisor 1.00
Laborer 1.00
Maintenance Planner 1.00
Maintenance Worker I/II 24.00
Management Analyst I/II 3.00
Principal Transportation Planner 1.00
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Project Manager I/II 3.00
Public Works Maintenance Leadworker 3.00
Public Works Supervisor 2.00
Pump Station Mechanic I/II 3.00
Pump Station Mechanic III 1.00
Regulatory Compliance Manager 1.00
Senior Engineer 7.00
Senior Facility Maintenance Worker 3.00
Senior I&C Technician 1.00
Senior Management Analyst 1.00
Solid Waste and Recycling Program Coordinator 1.00
Solid Waste Technician 1.00
Traffic and Light Technician 2.00
Traffic Safety Worker 3.00
WWTP Electrical Technician 1.00
WWTP Maintenance Superintendent 1.00
WWTP Manager 1.00
WWTP Mechanic I/II 6.00
WWTP Mechanic III 2.00
WWTP Operations Superintendent 1.00
WWTP Operator In-Training/I/II 10.00
WWTP Operator III 5.00
WWTP Shift Supervisor 2.00
Waste Management Supervisor 1.00
Total Merit 154.00
Total Per Diem 4.69
Total FTE 158.69
Total 2023-24 Position Budget
TOTAL MERIT FTE 533.01
TOTAL PER DIEM 85.55
TOTAL FTEs 618.56

5. The City Manager is authorized and instructed to effectuate the City Budget as approved. 198 of 536

CITY OF SAN MATEO
RESOLUTION NO. _____ (2023)
APPROVING THE 2023-2028 CAPITAL IMPROVEMENT PROGRAM
WHEREAS, the City Council held public hearings on the Budget and Capital Improvement Program (CIP), as required by the City Charter section 5.02 ; and
WHEREAS, the CIP is a five-year plan that identifies all planned capital improvement projects, their estimated cost, and a revenue and/or funding source forecast; and WHEREAS, the 2023-28 Capital Budget presented as part of the proposed budget document that was delivered to Council on June 5, 2023 included details on recommended and funded CIP projects, as well as projects without an identified funding source; and
WHEREAS, the 2023-2028 CIP includes capital projects planned for the five-year period totaling $284,360,476; and
WHEREAS, no changes to the 2023-2028 CIP were proposed by the Council; and WHEREAS, section 5.09 of the City’s Charter requires that the CIP be approved by Council resolution.

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

1. In accordance California Environmental Quality Act (CEQA) Guidelines section 15378(b)(4), adoption of the Capital Improvement Program is exempt from 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.

2. The 2023-2028 Capital Improvement Program for the City of San Mateo, set forth in the accompanying Administrative Report and the proposed business plan document, is approved. 199 of 536

CITY OF SAN MATEO
RESOLUTION NO. ______ (2023)
ESTABLISHING THE CITY’S APPROPRIATIONS LIMIT FOR FISCAL YEAR 2023-24

WHEREAS, under Article XIII B of the California Constitution and Government Code sections 7900 and following, the City is required to establish an annual appropriations limit based on revenues obtained from the proceeds of taxes; and
WHEREAS, the method and basis of calculating these limits was revised by Proposition 111, amending Article XIII B of the State Constitution, and the implementing legislation, to allow election of the basis for population adjustment between the change in population in either the city or the county and an election of inflation factor between the growth of California per capita income or the growth of nonresidential assessed valuation due to new construction in the city; and
WHEREAS, the City of San Mateo population percentage change over the prior year is negative 0.32 percent and the growth in California per capita personal income is 4.44 percent; WHEREAS, utilizing the population growth for the City of San Mateo and the growth in California per capital personal income yield the most favorable appropriations limit; and WHEREAS, the appropriations limit for 2023-24 is $260,445,497 and the estimated budgeted proceeds from taxes are $135,537,117.

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

1. In accordance with Public Resources Code Section 21065, this action is exempt from review under the California Environmental Quality Act because it can be seen with certainty that it will not have a significant impact on the environment.

2. The City Council finds that the adjustment factors shall be based on the City’s population growth and the growth in California per capita income to determine the appropriations limit for the fiscal year 2023-24.

3. The City Council approves the appropriation limit on revenue obtained from the proceeds of taxes for fiscal year 2023-24 to be $260,445,497 using the selected adjustment factors. 200 of 536

CITY OF SAN MATEO
Proposed 2023-24 Budget
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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
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BUDGET MESSAGE 5
Budget
Message
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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. 2 204 of 536

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. 3 205 of 536

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)
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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)
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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
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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 7 209 of 536
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 8 210 of 536
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
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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 10 212 of 536
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.
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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
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CITY OVERVIEW 21
City Overview
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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. 14 216 of 536
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. 15 217 of 536
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
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17 219 of 536
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 CouncilManager form of government. The City shifted from Council members being elected at-large to districts beginning in the November 2022 election, where three of the five districts were open. The remaining two districts will be open for election in November 2024. 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%.
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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
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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
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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.
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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.
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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.
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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
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GFOA Budget Award

25 227 of 536
CSMFO Budget Award
Ca
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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 26 228 of 536
BUDGET OVERVIEW 37
Budget
Overview
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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
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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. 29 231 of 536
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
30 232 of 536
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
31 233 of 536
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. 32 234 of 536
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
33 235 of 536
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
34 236 of 536
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
35 237 of 536
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
36 238 of 536
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.

San Mateo City CouncilJune 20, 2023

San Mateo City Council
June 20, 2023